N3

You are preparing an A-REIT valuation report for one diversified A-REIT, WSU Property Trust. The company has 550 million shares on-issue, with the company's shares are trading at $3.60 per share. The company distributes 90% of its income to unit-holders in 2018.

2018 profit and loss statement

Net income- $152.0 mill

total expenses- $38.0 mill

undistributed income b/f- $0.5 mill

2018 balance sheet

cash- $6.5 mill

property- $1,1080 mill

total liabilities- $183 mill

5 year distribution per unit forecast ( cents per share0

year 2018 2019 2020 2021 2022 2023

DPU 18.7 21.0 21.8 23.7 25.4 26.9

Using the information given, calculate the yield- based Valuation