QUESTION 14 Investors like REITs for the current income they produce. Knowledgable real estate investors know that leasing commissions and capital expenditures take a big bite out of cash flows. What is the measure of cash flow for a REIT that is net of capital expenditures? Fund from Operations Adjusted Funds from Operations Net Operating Income Cash Flow after Debt Service QUESTION 15 By law, REITs are required to distribute 90% of their pretax income to shareholders. REITs are not taxable but shareholders are. If a REIT pays out a dividend of $1,000 and the shareholder has a tax rate of 40%, how much of the dividend payment is paid in taxes? 400 600 1000 950