NAVPS

CFA Level II Alternative Investments
#1

Does it account for the 1. Value of property not currently generating revenue 2. Added value of the management of REIT

#2

  1. Yes.

  2. Probably not.

It accounts for stuff on the balance sheet. Management skill doesn’t appear on a balance sheet.

#3

Ok thanks

#4

My pleasure.

#5

I was not convised with the answer.

According to Curriculum Volume 5 Page 100. I can undestand that

Answer Question:

  1. Calculate property price based on expected future NOI based on the last year NOI (if I expect there is some asset not rented out those asset will not generate NOI there for will not be part of the NAVPS)

  2. Prepaid/other asset which will increase NAVPS.Curriculum saying this items is not including intangeble asset.