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
		15

What are the Adjusted Funds from Operations per Share?

		5.00
		2.8
		5.50
		14

Assume that REITs are trading at an AFFO multiple of 15. What is the REIT's expected share price?

		105.6
		46.5
		42.0
		105.0

What is the maximum taxable income that the REIT can retain?

		5.0
		5.3
		5.7
		10.0