NAVPS

[jonta999]

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

 

[S2000magician]

1. Yes.
2. Probably not.
It accounts for stuff on the balance sheet. Management skill doesn’t appear on a balance sheet.

 

[jonta999]

Ok thanks

 

[S2000magician]

My pleasure.

 

[Gergely]

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.