Case Study: Real Estate Investment Trust (REIT) You have been presented with the following set of financial statements for the Lynn Associates Trust (LAT), a REIT that is about to make an initial stock offering to the public. This REIT specializes in the acquisition and management of regional shopping centers. Your firm, Blue Street Advisors (BSA), is an investment management company that is considering the purchase of LAT shares. You have been asked to prepare a financial analysis of the REIT. Operating Statement Summary Net Revenue Less: S 50,000,000 20,000,000 11,000,000 3,000,000 1,500,000 35,500,000 14,500,000 Operating expenses Depreciation and amortization General and administrative expenses Management expense Total Expenses Income from operations Less: Interest Expense Net Income (loss) 3,200,000 s11,300,000 Balance Sheet Summary Assets Cash $ 25,750,000 1,250,000 350,000,000 225,000,000 125, 000,000 $152,000,000 Rents receivable Properties @ cost Less: Accumulated depreciation Properties - net Total net assets Liabilities $ 6,000,000 40,000,000 46,000,000 $106.000.000 S152,000,000 Short term Mortgage debt Total Shareholder equity Total liabilities and equity Analysis: 1. Develop a set of financial ratios that will provide Blue Street Advisors (BSA) with useful information in the evaluation and comparison of Lynn Associates Trust (LAT) with other REITS. 2. Should BSA purchase LAT shares? Case Study: Real Estate Investment Trust (REIT) You have been presented with the following set of financial statements for the Lynn Associates Trust (LAT), a REIT that is about to make an initial stock offering to the public. This REIT specializes in the acquisition and management of regional shopping centers. Your firm, Blue Street Advisors (BSA), is an investment management company that is considering the purchase of LAT shares. You have been asked to prepare a financial analysis of the REIT. Operating Statement Summary Net Revenue Less: S 50,000,000 20,000,000 11,000,000 3,000,000 1,500,000 35,500,000 14,500,000 Operating expenses Depreciation and amortization General and administrative expenses Management expense Total Expenses Income from operations Less: Interest Expense Net Income (loss) 3,200,000 s11,300,000 Balance Sheet Summary Assets Cash $ 25,750,000 1,250,000 350,000,000 225,000,000 125, 000,000 $152,000,000 Rents receivable Properties @ cost Less: Accumulated depreciation Properties - net Total net assets Liabilities $ 6,000,000 40,000,000 46,000,000 $106.000.000 S152,000,000 Short term Mortgage debt Total Shareholder equity Total liabilities and equity Analysis: 1. Develop a set of financial ratios that will provide Blue Street Advisors (BSA) with useful information in the evaluation and comparison of Lynn Associates Trust (LAT) with other REITS. 2. Should BSA purchase LAT shares