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. National Property Trust Panel A. Operating Statement Summary Net revenue $ 112,000,000 Less: Operating expenses 44,800,000 Depreciation and amortization 34,000,000 General and administrative expenses 7,200,000 Management expense 4,200,000 Income from operations 21,800,000 Less: Interest expense* 6,400,000 Net income (loss) $ 15,400,000 *At 8% interest only. Panel B. Balance Sheet Summary Assets Cash $ 52,700,000 Rents receivable 3,700,000 Properties @ cost 820,000,000 Less: Accumulated depreciation 462,000,000 Properties—net 358,000,000 Total net assets $ 414,400,000 Liabilities Short term $ 110,400,000 Mortgage debt* 80,000,000 Total 190,400,000 Shareholder equity† 224,000,000 Total liabilities and equity $ 414,400,000 *At 8% interest only. †10,000,000 shares outstanding. 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. EPS = NOI = FFO = ROC = Cash Retention per Share = Net Assets per Share = Equity or Book Value per Share = ROA = ROE =
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. National Property Trust Panel A. Operating Statement Summary Net revenue $ 112,000,000 Less: Operating expenses 44,800,000 Depreciation and amortization 34,000,000 General and administrative expenses 7,200,000 Management expense 4,200,000 Income from operations 21,800,000 Less: Interest expense* 6,400,000 Net income (loss) $ 15,400,000 *At 8% interest only. Panel B. Balance Sheet Summary Assets Cash $ 52,700,000 Rents receivable 3,700,000 Properties @ cost 820,000,000 Less: Accumulated depreciation 462,000,000 Properties—net 358,000,000 Total net assets $ 414,400,000 Liabilities Short term $ 110,400,000 Mortgage debt* 80,000,000 Total 190,400,000 Shareholder equity† 224,000,000 Total liabilities and equity $ 414,400,000 *At 8% interest only. †10,000,000 shares outstanding. 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. EPS = NOI = FFO = ROC = Cash Retention per Share = Net Assets per Share = Equity or Book Value per Share = ROA = ROE =
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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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.
| National Property Trust | |
| Panel A. Operating Statement Summary | |
| Net revenue | $ 112,000,000 |
|---|---|
| Less: | |
| Operating expenses | 44,800,000 |
| 34,000,000 | |
| General and administrative expenses | 7,200,000 |
| Management expense | 4,200,000 |
| Income from operations | 21,800,000 |
| Less: | |
| Interest expense* | 6,400,000 |
| Net income (loss) | $ 15,400,000 |
*At 8% interest only.
| Panel B. |
|
| Assets | |
| Cash | $ 52,700,000 |
|---|---|
| Rents receivable | 3,700,000 |
| Properties @ cost | 820,000,000 |
| Less: Accumulated depreciation | 462,000,000 |
| Properties—net | 358,000,000 |
| Total net assets | $ 414,400,000 |
| Liabilities | |
| Short term | $ 110,400,000 |
| Mortgage debt* | 80,000,000 |
| Total | 190,400,000 |
| Shareholder equity† | 224,000,000 |
| Total liabilities and equity | $ 414,400,000 |
*At 8% interest only.
†10,000,000 shares outstanding.
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.
EPS =
NOI =
FFO =
ROC =
Cash Retention per Share =
Net Assets per Share =
Equity or Book Value per Share =
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