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7. You are a manager of a diversified real estate portfolio that is has been expected to continue and outperform the market and deliver an
7. You are a manager of a diversified real estate portfolio that is has been expected to continue and outperform the market and deliver an exceptional NOI growth of 5%, on average, into the foreseeable future even when the market NOI growth is only expected to average 2.5%. The current market value of your portfolio based on the expectations described above is $1.3B. You have just received the most recent data from your accounting/finance department and it shows that during the last year your portfolio delivered the highest NOI on record 3.5% higher than the NOI reported the previous year. What will be the market value of your real estate portfolio when you release these results to the market tomorrow morning? c. a. Higher than 1.3B - since you are reporting record NOI results. b. Higher than 1.3B - since you are reporting Nol growth that is faster than the market average. Lower than 1.3B - since you are reporting Nol growth that is lower than the market expectations. d. Lower than 1.3B - since 3.5% NOI growth is not much above the rate of inflation. e. 1.3B - the reporting of the recent NOI should not affect the value of the portfolio since it is still the exact same portfolio
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