Real Estate Feasibility Quiz 3 Ch 21 Set 1

Front 1

large sums of real estate equity and mortgage funds

Back 1

real estate investment trust

Front 2

a real estate company or trust that has elected to qualify under certain tax provisions to become a pass through entity that distributes to its shareholders substantially all of its earnings in addition to any capital gains generated from the sale or disposistion of its properties

Back 2

REIT

Front 3

A reit that owns a controlling interest in a limited partnership that owns the real estate, as opposed to a traditional strutucture in which the REIT directl owns the real estate

Back 3

umbrella partnership REIT

Front 4

What are the three principal types of publicly traded real estate trusts?

Back 4

equity trusts, mortgage trusts, and hybrid trusts

Front 5

The National Association of Real Estate Investment Trusts divides equity Reits into what types of property?

Back 5

Industrial/office, retail, residential, diversified (reits that own a variety of property types), lodging/resorts, health care, self storage, specialty

Front 6

The equity oriented real estate investment trust has provided investors with opportunities to

Back 6

1, to invest funds in a diversified porfolio under professional managment and 2, to own equity shares that trade on organized exchanges, thus providing more liquidity

Front 7

There is no requirement that REITS be

Back 7

publicly traded

Front 8

The national association of real estate investment trusts classifies three typical types of private REITS's--

Back 8

1, reits targeted to institutional investors that take large financial positions 2, reits syndicated to investors as part of a package offered by a financial consultant 3, incubator reits that are funded by venture capitalists with the expectation that the reit will develop a sufficient track record to launch a public offering in the future.

Front 9

used by analysts and investors as a measure of the cash flow available to the REIT for distributions (dividends) to share holders.

Back 9

FFO (funds from operations)

Front 10

what are the two methods of growing the portfolio through acquisitions.

Back 10

purchashing properties with cash as positive spreads, utilizing the arbitrage between cost of capital and the yield of the property 2, swapping shares in the REIT or operating partnership units for interests in properties, taking advantage of the tax and form benefits.

Front 11

the net market value of all a company's assets, including but not limited to its properties after subtracting all its liabilities and obligations

Back 11

net asset value

Front 12

What are ways REITS expand and grow?

Back 12

growing income from existing properties, growing income through acquisistions, gorwing income through development, growing income through provisions of services and financial engineering

Front 13

treats recurring expenses as expenses rather than capital items, providing a more conservative estimate of the potential stream of income available for dividend purposes

Back 13

cas available for distribution (CAD)