the first two pictures are the data. I need the two answers that I got...

90.2K

Verified Solution

Question

Accounting

the first two pictures are the data. I need the two answers that I got wrong in part a, and the two answers I got wrong in part b. thank you image
image
image
image
Return 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 $100,000,000 National Property Trust Panel A. Operating Statement Summary Net revenue Less Operating expenses Depreciation and amortization General and administrative expenses Management expense Income from operations Less: Interest expense (at 8% interest only! 40,000,000 22,000,000 6,000,000 3,000,000 29,000,000 6,400,000 $22,600,000 points Panel B. Balance Sheet Summary Assets Cash Rents receivable Properties o cost Less: Accumulated depreciation Properties - net Total net assets Liabilities Short term Mortgage debt (at 8% interest only) Total Shareholder equity (10,000,000 shares outstanding) Total liabilities and equity $51,500,000 2,500,000 700,000,000 450,000,000 250,000,000 $304,000,000 $12.000.000 80,000,000 92,000,000 212,000,000 $304,000,000 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. Borts EPS 226 5.10 NOI FFO 446 Dividend per share (90% x EPS) ROC 203 2.31 0.11 0 Cash Retention per share Net assets per share Equity or Book Value per share 30.40 2120 16.8 21 ROA % % ROE 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. (1) What price does this suggest for National shares based on dividend yield? $ 215 @ (2) What price does this suggest for National shares based on FFO? $ 53.52 (3) What dividend would National have to pay to be in line with comparable REITS? $26.82 0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students