Let's value a REIT using Net Asset Value another way. (All values are in Millions) Assume a REIT has debt of 1,000M, there are 100M shares outstanding, both the stock price and NAV/share equal $5, and a fair cap rat for the portfolio is 10.0%, what is the implied NOI? $100M $105.5M $101 M $150M

Let's value a REIT using Net Asset Value another way. (All values are in Millions) Assume a REIT has debt of 1,000M, there are 100M shares outstanding, both the stock price and NAV/share equal $5, and a fair cap rat for the portfolio is 10.0%, what is the implied NOI? $100M $105.5M $101 M $150M

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Let's value a REIT using Net Asset Value another way. (All values are in Millions) Assume a REIT has debt of
1,000M, there are 100M shares outstanding, both the stock price and NAV/share equal $5, and a fair cap rate
for the portfolio is 10.0%, what is the implied NOI?
$100M
$105.5M
$101 M
$150M

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