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1) Many of the REITs going public in the late 1960s and early 1970s were commercial bank sponsored mortgage REITs engaged in the business of lending on construction and development of commercial real estate. Most of these C&D REITs failed because of

a) The Tax Reform Act of 1986

b) The severe and sudden inflation caused by OPEC embargo and the subsequent recession lasting most of the decade of the 1970s.

c) The bursting of the Japanese bubble and the consequent Lost Decade

d) The effects of the Basel Accords

2) AFFO (CAD/FAD) is intended to most approximate cash flow. The widest difference between FFO and AFFO will most likely occur for equity REITs that own and operate

a) Timberland

b) Office buildings

c) Self-storage facilities

d) Net leased properties

3) Green Street Advisors stresses the importance of qualitative elements in their discussion of REIT valuation. Which of the following is identified by Green Street as a positive qualitative consideration in evaluating an equity REIT?

a) The company is fully integrated and capable of adding value if all other conditions are suitable.

b) The company is in a property sector that offers lucrative opportunities.

c) Management owns a significant percentage of shares of the company, thus aligning its interest with shareholders.

d) All of the above.

4) In the history of US REITs, Taubman Centers (NYSE:TCO) has a special place as

a) The first UPREIT IPO

b) The first REIT to achieve $1 Billion market capitalization

c) The target of the first successful REIT hostile takeover

The first REIT formed after the enabling legislation of 1960

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