Comparing Public and Private Real Estate Investments
The price per share of Nagano based on FFO is _closest_ to:
Right!
Start by finding the FFO.
$$\displaystyle \mbox{FFO = AFFO + CAPEX + NCR}$$
$$\displaystyle 235{,}670+38{,}904+23{,}768=298{,}342$$
Then calculate the number of shares.
$$\displaystyle \mbox{Shares} = \frac{\mbox{AFFO}}{\mbox{AFFO} / \mbox{Share}}=\frac{235{,}670}{125.6}=1{,}876.354$$
Next, figure out the FFO per share.
$$\displaystyle \frac{\mbox{FFO}}{\mbox{Share}}=\frac{298{,}342}{1{,}876.354}=159.001$$
You can then find the price per share by utilizing the P/FFO multiple.
$$\displaystyle \frac{P}{\mbox{Share}}=\frac{\mbox{FFO}}{\mbox{Share}}\times \frac{P}{\mbox{FFO}}$$
$$\displaystyle \frac{P}{\mbox{Share}}=159.001\times 12.3=1{,}955.712$$
Incorrect.
This is actually the price per share based on the AFFO, not the FFO.
Incorrect.
This answer likely results from adding depreciation to AFFO when finding FFO, prior to calculating the price per share based on FFO.
JPY 1,955.71.
JPY 1,959.36.
JPY 2,226.57.
