1. Which one of these is a requirement for a US REIT to maintain its tax-exempt status?

(1) The company must have 100 or more shareholders.

(2) The companys shares are traded on a major exchange.

(3) The company must distribute, as dividends, at least 90%, but not more than 100%, of the companys FFO to shareholders.

(4) The companys annual report must calculate the reconciliation of FFO in accordance with the NAREIT definition of FFO.

2. Many of the REITs going public in the late 1960s and early 1970s were commercial bank sponsored mortgage REITs engaged in the business of lending on construction and development of commercial real estate. Most of these C&D REITs failed because of?

(1) The Tax Reform Act of 1986

(2) The severe and sudden inflation caused by OPEC embargo and the subsequent recession lasting most of the decade of the 1970s.

(3) The bursting of the Japanese bubble and the consequent Lost Decade

(4) The effects of the Basel Accords

3.

AFFO (CAD/FAD/MFFO or whatever) is intended to most approximate cash flow. Therefore, differences between FFO and AFFO will most likely to be the greatest in equity REITs that own and operate

(1) Timberland

(2) Office buildings

(3) Self-storage facilities

(4) Net leased properties