\begin{tabular}{lr} National Property Trust & \\ Panel A. Operating Statement Summary & \\ Net revenue & 118,000,000 \\ Less: & 47,200,000 \\ Operating expenses & 40,000,000 \\ Depreciation and amortization & 7,800,000 \\ General and administrative expenses & 4,800,000 \\ \hline Management expense & 18,200,000 \\ Income from operations & 6,400,000 \\ Less: & $11,800,000 \\ \hline Interest expense* & \\ Net income (loss) & \end{tabular} *At 8% interest only. \begin{tabular}{|rr} \hline Panel B. Balance Sheet Summary & \\ \multicolumn{1}{c}{ Assets } & \\ Cash & 53,300,000 \\ Rents receivable & 4,300,000 \\ Properties @ cost & 880,000,000 \\ Less: Accumulated depreciation & 468,000,000 \\ Properties-net & 412,000,000 \\ \hline Total net assets Liabilities & $469,600,000 \\ \hline & $159,600,000 \\ Short term & 80,000,000 \\ \hline Mortgage debt* & 239,600,000 \\ Total & 230,000,000 \\ Shareholder equityt & $469,600,000 \\ \hline \end{tabular} "At 8% interest only. 10,000,000 shares outstanding. Required: a. Develop a set of financial ratios that will provide Blue Street Advisors with useful information in the evaluation and comparison of National Property Trust with other REITs. b. Your research also indicates that the shares of comparable REITs specializing in warehouse acquisitions in the same regions are selling at dividend yields in the range of 8 percent. Price multiples for these REITs are about 12 current FFO. What price range does this suggest for National shares? c. What is the NAV for National Property Trust assuming that a blended capitalization rate of 10 percent would be applicable for the properties owned by Blue Street Advisors? \begin{tabular}{|c|c|c|c|} \hline & $ & 1.18 & \\ \hline & $ & 17.44 & \\ \hline FFO & $ & 10.36 & \\ \hline ROC & $ & (1.18) & \\ \hline Cash Retention per Share & $ & 10.36 & \\ \hline Net Assets per Share & $ & 93.92 & \\ \hline Equity or Book Value per Share & $ & 46.00 & \\ \hline ROA & $ & 2.51 & % \\ \hline ROE & $ & 5.13 & % \\ \hline \end{tabular} Complete this question by entering your answers in the tabs below. What is the NAV for National Property Trust assuming that a blended capitalization rate of 10 percent would be applicable for the properties owned by Blue Street Advisors? (Round your answer to 2 decimal places.) Your research also indicates that the shares of comparable REITs specializing in warehouse acquisitions in the same regions are selling at dividend yields in the range of 8 percent. Price multiples for these REITs are about 12 current FFO. What price range does this suggest for National shares? (Round your intermediate calculations and final answers to 2 decimal places.) \begin{tabular}{lr} National Property Trust & \\ Panel A. Operating Statement Summary & \\ Net revenue & 118,000,000 \\ Less: & 47,200,000 \\ Operating expenses & 40,000,000 \\ Depreciation and amortization & 7,800,000 \\ General and administrative expenses & 4,800,000 \\ \hline Management expense & 18,200,000 \\ Income from operations & 6,400,000 \\ Less: & $11,800,000 \\ \hline Interest expense* & \\ Net income (loss) & \end{tabular} *At 8% interest only. \begin{tabular}{|rr} \hline Panel B. Balance Sheet Summary & \\ \multicolumn{1}{c}{ Assets } & \\ Cash & 53,300,000 \\ Rents receivable & 4,300,000 \\ Properties @ cost & 880,000,000 \\ Less: Accumulated depreciation & 468,000,000 \\ Properties-net & 412,000,000 \\ \hline Total net assets Liabilities & $469,600,000 \\ \hline & $159,600,000 \\ Short term & 80,000,000 \\ \hline Mortgage debt* & 239,600,000 \\ Total & 230,000,000 \\ Shareholder equityt & $469,600,000 \\ \hline \end{tabular} "At 8% interest only. 10,000,000 shares outstanding. Required: a. Develop a set of financial ratios that will provide Blue Street Advisors with useful information in the evaluation and comparison of National Property Trust with other REITs. b. Your research also indicates that the shares of comparable REITs specializing in warehouse acquisitions in the same regions are selling at dividend yields in the range of 8 percent. Price multiples for these REITs are about 12 current FFO. What price range does this suggest for National shares? c. What is the NAV for National Property Trust assuming that a blended capitalization rate of 10 percent would be applicable for the properties owned by Blue Street Advisors? \begin{tabular}{|c|c|c|c|} \hline & $ & 1.18 & \\ \hline & $ & 17.44 & \\ \hline FFO & $ & 10.36 & \\ \hline ROC & $ & (1.18) & \\ \hline Cash Retention per Share & $ & 10.36 & \\ \hline Net Assets per Share & $ & 93.92 & \\ \hline Equity or Book Value per Share & $ & 46.00 & \\ \hline ROA & $ & 2.51 & % \\ \hline ROE & $ & 5.13 & % \\ \hline \end{tabular} Complete this question by entering your answers in the tabs below. What is the NAV for National Property Trust assuming that a blended capitalization rate of 10 percent would be applicable for the properties owned by Blue Street Advisors? (Round your answer to 2 decimal places.) Your research also indicates that the shares of comparable REITs specializing in warehouse acquisitions in the same regions are selling at dividend yields in the range of 8 percent. Price multiples for these REITs are about 12 current FFO. What price range does this suggest for National shares? (Round your intermediate calculations and final answers to 2 decimal places.)
