QUESTION 16 This questions is about how to value a REIT using a Price to Funds From Operations multiple. Assume the following: In 2020 a REIT expects FFO of $4BN. It has 354M shares outstanding. The historical P/FFO multiple is 14.5x. The stock's current share price is $123.08. What is the upside potential for this stock based on its projected FFO and a P/FFO multiple of 14.5x? 50.2% 33.12% 25.1% 30.0% QUESTION 17 ABC Realty Trust has an annual NOI of $100M. Net debt equals $700M. The company has 90M shares outstanding. If the stock trades at $3.37/share, and the stock price is equal to the value of NAV/share, what is the implied cap rate? 8.0% 8.07% 8.5% 10.0%