代写FINC6024 – S1 2025 INDIVIDUAL ASSIGNMENT 1代做Java程序

FINC6024 – S1 2025 INDIVIDUAL ASSIGNMENT 1

Due: Sunday, 30 March 11:59pm

This individual assignment is worth 10 Marks and has four questions, all equally weighted marks:

1.  Executive Summary of the Case 1 Resolution (max 200 words) [2.5 Marks]

Provide an executive summary of your team's case resolution. Your executive summary should focus on the macro-level reasoning and recommendations. It may help you to imagine that this ES will be the first thing (on your resolution) read by the CEO.

2.  Pro forma statement of cash flows [2.5 Marks]

You have been asked to develop a pro forma statement of cash flow for West Office Plaza. The information given to you is listed below.

Property Information:

WEST OFFICE PLAZA

Rentable Area	320,000 sq. feet
Age	10 Years
# Stories	20
# Tenants	50

Financial Information

Base Rent Avg.	$18 per sq. ft
Other Income/ Parking/Storage	$1.60 per sq. ft
Expenses Recoverable from Tenants	$2.40 per sq. ft
Current Vacancy	8%

Expenses

Mgmt./ Admin/ Security/ Ownership	$745,000
Property Taxes	$680,000
Insurance	$450,000
General Operations/ Leasing Expense/ Marketing	$692,000
Utilities	$1,241,000
Janitorial/ Cleaning	$499,000
Business Taxes	$125,000

Other:

Recurring CAPEX/ Improvement Allowance

$837,000

a.      Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.

b.    If you plan to begin work on future proformas for West Office Plaza, list at least five major factors that you would consider.

3.  Property metrics [2.5 Marks]

You are an employee of University Consultants, Ltd., and have been given the following assignment. You are to present an investment analysis of a new small residential income-producing property for sale to a potential investor. The asking price for the property is $1,250,000; rents are estimated at $200,000 during the first year and are expected to grow at 3.5 percent per year thereafter. Vacancies and collection losses are expected to be 10 percent of rents. Operating expenses will be 35 percent of effective gross income. A fully amortizing 70 percent loan can be obtained at 11 percent interest for 30 years (payments are made bi-monthly). The property is expected to appreciate in value at 3 percent per year as is expected to be owned for five years then sold.

a. What is the investor’s expected before-tax internal rate of return on equity invested (BTIRR)?

b. What is the first-year debt coverage ratio?

c. What is the terminal capitalization rate?

d. What is the NPV using a 13.5 percent discount rate? What does this mean?

e. What is the profitability index using a 13.5 percent discount rate? What does this mean?

4.  REITS [2.5 Marks]

Atlantis REIT expects an income of $9.67 per share. This includes a deduction of $2.72 per share for depreciation. Atlantis did not have any gains from the sale of real estate. Its properties are mainly apartments, and you believe that apartments are currently selling on average at about an 8% cap rate. Atlantis has 1 million shares outstanding and its balance sheet shows liabilities of $50.87 million.  Comparable REITs have FFO multiples of about 6. Atlantis is expected to pay a dividend during the next fiscal year of $7.05 per share and to increase those dividends at about 2 percent per year in the future. Investors in REITs like Atlantis usually expect a return of about 12 percent.

a. What is the FFO and value per share based on an FFO multiple?

b. What value per share is indicated using a dividend discount model?

c. What is the value per share implied by the net asset value of the properties?