module 11 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
MODULE 11 PowerPoint Presentation
Download Presentation
MODULE 11

Loading in 2 Seconds...

play fullscreen
1 / 12

MODULE 11 - PowerPoint PPT Presentation


  • 138 Views
  • Uploaded on

MODULE 11. Sole Ownership. Private Partnership. Public Partnership. C-Corp. S-Corp. REIT. Comparative Analysis of Real Estate Ownership. Attribute Personal liability Tax Treatments Double Pass-through Liquidity Access to Equity Minimum Investment

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'MODULE 11' - cecil


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
comparative analysis of real estate ownership

Sole

Ownership

Private

Partnership

Public

Partnership

C-Corp

S-Corp

REIT

Comparative Analysis of Real Estate Ownership

Attribute

Personal liability

Tax Treatments

Double

Pass-through

Liquidity

Access to Equity

Minimum Investment

Required

Scale of Acquisition

Gov’t Restrictions on

Financial Decision

Participation in

Management

fundamentals of analysis for reit s
Fundamentals of Analysis for REIT’s

Origins & Basics

  • What Are REIT’s
  • FFO And Profitability
  • How Do REIT’s Grow
ffo industry standard for measurement
FFO Industry Standard For Measurement
  • Income & FFO Calculation

Revenue

Operating Expenses

G & A

$100

$35

$5

NOI

Depreciation

Interest

$60

$20

$20

Net Income

$20

FFO Calculation

Net Income

plus Depreciation

$20

$20

FFO

$40

fad impact i
FAD Impact - I

REIT A

REIT B

FFO

Shares Outstanding

FFO / Share

FFO Multiple

Price / Share

FFO

CAPEXP

FAD

FAD / Share

FAD Multiple

(@ $20/share)

$40

$20

$2.00

10x

$20

$40

$10

$30

$1.50

13.3x

$40

$20

$2.00

10x

$20

$40

$5

$35

$1.75

11.4x

fao impact ii
FAO Impact - II

REIT C

REIT D

Revenue

OE

G & A

NOI

Depreciation

Interest

Net Income

$100

$35

$5

$60

$15

$20

$25

$100

$40

$5

$55

$15

$20

$20

FFO Computation

Net Income

Plus R.E. Depreciation

FFO

Shares Outstanding

FFO / Share

FFO Multiple

Price / Share

$25

$15

$40

20

$2.00

10x

$20

$20

$15

$35

20

$1.75

10x

$17.50

fad effect ii
FAD Effect - II

REIT C

REIT D

$20

$40

$5

$35

$1.75

$11.4x

$17.50

$35

0

$35

$1.75

10.0x

Price Per Share

FFO

CAP EXP

FAD

FAD / Share

FAD Multiple

fad impact iii
FAD Impact - III

($ Millions)

REIT E

Net Income

Plus Depreciation

FFO

less CAP EXP

less Straight line Rent

FAD

$20

$20

$40

$5

$10

$25

conflicts of interests in the structuring of reits
Conflicts Of Interests In The Structuring Of REITs
  • Successful REIT’s:

Aligned Interests, Better Management, & More Liquidity

  • Corporate Goverance & Conflict Of Interest
  • Sources of Conflict of Interest
matrix classification of potential conflicts of interest
Matrix Classification Of Potential Conflicts Of Interest

Offering

Formation

Investment

Management

Property

Management

Conflict

Item

Transaction

Activity

Allegience X

Sponsor Control X X X

Outside Pacting X

Over - Composition X X

Resource Allocation X X

Competition Affiliates X X

Tie - In Business X X

Captivity X

Self - Dealing X X X

Tax Timing X X

Expense Reference X X X

Malignancy X X

slide12
Tax Driven Motives And UPREIT Structure
  • Transaction Bias And Recognition Of

Built - In Gain

  • Reluctance To Pay Down Debt
  • The Advisor - Affiliate Structure

And A Multitude Of Caveats For Investors