Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock
You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street Advisors, is an investment management company that is considering the purchase of National Property Trust shares. You have been asked to prepare a financial analysis of the REIT. Required: a. Develop a set of financial ratios that will provide Blue Street Advisors with useful information in the evaluation and comparison of National Property Trust with other REITs. b. Your research also indicates that the shares of comparable REITs specializing in warehouse acquisitions in the same regions are selling at dividend yields in the range of 8 percent. Price multiples for these REITs are about 12 current FFO. What price range does this suggest for National shares? c. What is the NAV for National Property Trust assuming that a blended capitalization rate of 10 percent would be applicable for the properties owned by Blue Street Advisors? Develop a set of financial ratios that will provide Blue Street Advisors comparison of National Property Trust with other REITs. Note: Round your intermediate calculations and final answers to 2 dec minus sign. ROA and ROE should be entered as percentages. Your research also indicates that the shares of comparable RE are selling at dividend yields in the range of 8 percent. Price range does this suggest for National shares? Note: Round your intermediate calculations and final answers What is the NAV for National Property Trust assumin the properties owned by Blue Street Advisors? Note: Round your answer to 2 decimal places
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