Real Estate Finance & Investments 15th Edition by William Brueggeman, Jeffrey Fisher

تمرين 3

A commercial real estate investment fund must report its quarterly investment performance to investors. A summary of its (1) beginning and end-of-quarter assets and equity, and (2) cash inflows and outflows during the quarter are as follows:

Assume any interest on short-term investments is offset by interest paid on short-term debt.
a. What would be the beginning equity value
b. What would be the MVEE
c. Assuming that all cash flows from operations, equity contributions, acquisitions, and distributions occurred at the end of the quarter, what would be the quarterly return (IRR)
d. Assuming that all cash distributions to investors occurred equally in 30-day intervals during the quarter. What would be an approximation to the IRR using the Modified Dietz approach
e. Assuming the same cash flows in (d) what would the return be before fees
f. Assuming this same cash flows in (d) what would be return at the "property level"
g. How would (f) change if the value of properties was $400 million at the end of the quarter