Investors like REITs for the current income that they produce. Knowledgable real estate investors know that leasing commissions and capital expenditures take a big bite out of cash flows. Adjusted Funds from Operations is the measure of cash flow for a REIT that is net of capital expenditures. Green Street Advisors reports that for an industrial REIT, Cap Ex averages 15% of Net Operating Income. Assume a portfolio of industrial properties has an NOI of $100M. What would be a fair estimate of the AFFO in $M? 95 100 85 O 15