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Real Estate Finance and Investments Chapter 22 Real Estate Investment Performance and Portfolio Considerations [4.27.20] Questions with answers. $11.99   Add to cart
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Real Estate Finance and Investments Chapter 22 Real Estate Investment Performance and Portfolio Considerations [4.27.20] Questions with answers.
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  • CIMP - Certificate in Investment Performance Measurement
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  • CIMP - Certificate In Investment Performance Measurement

Real Estate Finance and Investments Chapter 22 Real Estate Investment Performance and Portfolio Considerations [4.27.20] Questions with answers.

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  • September 23, 2024
  • 22
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • real estate finance and investments chapter 22 rea

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  • CIMP - Certificate in Investment Performance Measurement
  • CIMP - Certificate in Investment Performance Measurement

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Real Estate Finance and Investments
Chapter 22 Real Estate Investment
Performance and Portfolio
Considerations [4.27.20] Questions with
answers.
Introduction ANS -*Real Estate Finance and Investments*...



*Chapter 22: Real Estate Investment Performance and Portfolio Considerations [4/27/20]*



*_____* (Introduction)



Thus far, our discussion of risk and required rates of return has stressed a methodology or an approach
that should be used when evaluating a specific project or mortgage financing alternative. In this chapter,
we provide some insight into the measurement of return and risk for various real estate investment
vehicles and investment portfolios.



We will apply concepts and methodologies based on financial theory and demonstrate possible
applications to real estate investments... Also, many portfolio managers are interested in knowing how
well investment portfolios perform when real estate investments are combined with other securities.



The Nature of Real Estate Investment Data ANS -*Real Estate Finance and Investments*...



*Chapter 22: Real Estate Investment Performance and Portfolio Considerations [4/27/20]*...



*_____* (The Nature of Real Estate Investment Data)



When measuring the investment performance of something as broadly defined as real estate, one must
keep many things in mind...

,Because of these limitations, current attempts to measure real estate investment performance are
based on limited data that are made available from a few select sources. The available data may not be
representative of (1) the many types of properties, (2) the many geographic areas in which commercial
real estate is located, or (3) the frequency of transactions indicative of real estate investment activity in
the economy as a whole.



Sources of Data Used for Real Estate Performance Measurement ANS -*Real Estate Finance and
Investments*...



*Chapter 22: Real Estate Investment Performance and Portfolio Considerations [4/27/20]*...



*_____* (Sources of Data Used for Real Estate Performance Measurement)



In this section, we provide information on two sources of real estate data that are used to a limited
extent when measuring real estate investment performance. We also consider investment returns from
data that are available on common stocks, corporate bonds, and government securities. Exhibit 22-1
summarizes the data available for these investments. We rely on two sources for real estate returns in
this chapter. The first is security prices as represented by real estate investment trust (REIT) shares. The
second data source is based on estimates of value of individual properties owned by pension plan
sponsors. Note that the primary differences in these data is that one source is based on real estate-
backed securities and the other is based on estimates of individual properties.



NAREIT ANS -*Real Estate Finance and Investments*...



*Chapter 22: Real Estate Investment Performance and Portfolio Considerations [4/27/20]*...



*Sources of Data Used for Real Estate Performance Measurement*...



*REIT Data: Security Prices*



One of the two sources of data used to produce investment returns on real estate in this chapter is
based on REITs. The National Association of Real Estate Investment Trusts REIT Share Price Index (_____)
is a monthly index based on ending market prices for shares owned by REIT investors...

, The data used in this chapter are based on only those REITs that own real estate, or equity REITs.



Hybrid and Mortgage REITs ANS -*Real Estate Finance and Investments*...



*Chapter 22: Real Estate Investment Performance and Portfolio Considerations [4/27/20]*...



*Sources of Data Used for Real Estate Performance Measurement*...



*_____* (Hybrid and Mortgage REITs)



A mortgage REIT investment return series and a hybrid REIT return series are also shown in Exhibit 22-
1... Hybrid REITs operate by buying real estate and by acquiring mortgages on both commercial and
residential real estate.



NCREIF ANS -*Real Estate Finance and Investments*...



*Chapter 22: Real Estate Investment Performance and Portfolio Considerations [4/27/20]*...



*Sources of Data Used for Real Estate Performance Measurement*...



*_____ Property Index: Property Values*



The _____ Property Index measures the historic performance of income-producing properties either (1)
acquired by open-end or commingled investment funds that sell investment units owned by qualified
pension and profit-sharing trusts, or (2) acquired by investment advisors and managed on separate
account bases. The data incorporated in the _____ Index are based on the performance of properties
managed by members of the National Council of Real Estate Investment Fiduciaries (_____). Quarterly
rates of return are calculated for all properties included in the index and are based on two distinct
components of return: (1) net operating income less capital expenditures and (2) the quarterly change in
property market value (appreciation or depreciation). The _____ Index contains data on five major
property categories: apartment complexes, office buildings, industrial (warehouses,
office/showrooms/research and development facilities), retail properties (including regional,
community, and neighborhood shopping centers as well as freestanding store buildings), and hotels... To

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