Question
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 companys shares
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 companys 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started