An analyst has gathered the following information about Highly Smart REIT:

Estimated NOI next year $80,000

Share price $35.00

Total debt & liabilities $580,000

Cash & cash equivalent $70,000

Rent receivable $20,000

Net income $35,000

Depreciation $6,000

Profits on sale of Property $5,000

Recurring capital expenditures $9,000

Other information

Share outstanding 10,000

Earnings per share $4.00

Properties are currently selling at a cap rate of 10%

Average industry P/FFO multiple 7x

Average industry P/AFFO multiple 11x

(a) Based on the given information, estimate the value of the retail REIT using:

(i) NAVPS (Net Asset Value Per Share) using direct capitalization method

(ii) P/FFO (Price to Funds From Operations)

(iii) P/AFFO (Price to Adjusted Funds From Operations)

(b) Evaluate whether Highly Smart REIT is overvalued or undervalued.