Given the distribution inputs you defined, calculate the value of your REIT per share and explain your approach. Then, using the REITs value as an entry point for potential investors, answer the following questions: -

A .What is the probability that investors will earn a rate of return that is at least as high as their required rate of return?

B. What is the probability that investors will earn a rate of return of at least 8% per year?

C. What is the probability that investors will recognize an investment loss greater than 2% per year?

Outputs: NOI $ 7,117,048,000 Current "Debt free"$ 189,947,564,000 K Current private mark $ 181,233,388,000 K Current private mark $ 257.31 "Debt free" value @ $ 169,683,746,778 K Value per share @ Re $ 228.54 Terminal CAP 5.00% Year 0 1 2 3 3 NOI $7,294,974,200 $ 7,477,348,555 $ 7,664,282,269 $ Interest $ (198,268,000) $ (198,268,000) $ (198,268,000) $ Investment/Dispositic $(80,977,943,817) CF $(80,977,943,817) $7,096,706,200 $ 7,279,080,555 $ 7,466,014,269 $ IRR 22.29% 4 5 7,855,889,326 $8,052, (198,268,000) $ (198,2 $ 163,93 7,657,621,326 $ 171,78 Inputs: Current share price $ 114.97 Revenue $ 16,689,976,000 K Expenses $ 9,685,424,000 K Depreciation $ 74,871,000 K Interest $ 37,625,000 K Current Market CAP 4.25% Req. unlevered return 7.00% Req. levered return 9.00% NOI growth rate 2.50% Risk premium 4.00% Total debt $ 8,714,176,000 K Shares outstanding 704,339,774 K Projected 10-year tre: 3.75% Quality adjustment -0.25% Value of other assets $ 7,573,209,000 K Borrowing cost 2.28% Outputs: NOI $ 7,117,048,000 Current "Debt free"$ 189,947,564,000 K Current private mark $ 181,233,388,000 K Current private mark $ 257.31 "Debt free" value @ $ 169,683,746,778 K Value per share @ Re $ 228.54 Terminal CAP 5.00% Year 0 1 2 3 3 NOI $7,294,974,200 $ 7,477,348,555 $ 7,664,282,269 $ Interest $ (198,268,000) $ (198,268,000) $ (198,268,000) $ Investment/Dispositic $(80,977,943,817) CF $(80,977,943,817) $7,096,706,200 $ 7,279,080,555 $ 7,466,014,269 $ IRR 22.29% 4 5 7,855,889,326 $8,052, (198,268,000) $ (198,2 $ 163,93 7,657,621,326 $ 171,78 Inputs: Current share price $ 114.97 Revenue $ 16,689,976,000 K Expenses $ 9,685,424,000 K Depreciation $ 74,871,000 K Interest $ 37,625,000 K Current Market CAP 4.25% Req. unlevered return 7.00% Req. levered return 9.00% NOI growth rate 2.50% Risk premium 4.00% Total debt $ 8,714,176,000 K Shares outstanding 704,339,774 K Projected 10-year tre: 3.75% Quality adjustment -0.25% Value of other assets $ 7,573,209,000 K Borrowing cost 2.28%