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

  1. Yes.

  2. Probably not.

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

Ok thanks

My pleasure.

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.