demand depend on:employment growth;space per employee

gross lease(CF=rent-exp);net lease(expense reimbursement,CF=rent)

percentage lease:fixed %

To judge property risk, use discount risk

Gross lease

net lease,V0=rent1/ARY

1

2

Add land at the end

Take the average of multiple times and multiply by the area

All are revalued regularly. quarterly data;value-weighted

Assumptions remain unchanged if there are no transactions, re-evaluate if there are transactions

base on own funds

base on all-cash, no debt

&direct investment:great liq;lower invest requirement;limited lia;access to superior quality and range of properties;diversification

&REOC:Taxation; earnings predictability; high income payout ratio Missing: operating flexibility

taxation;control;costs;structural conflicts and related costs;realative moderate income growth potential;

retail&industrial(retail sales growth);hotel&office(job creation);mult-family(job creation,population growth);storage&health care(population growth)

A:real-estate=real estate NOI1/cap rate, A/R, cash

FF0=accounting net earnings depr and amort-gain/ loss from sales of porperty and debt reatructuring

AFFO=FF0-non cash rent-maintenance type capital expenditures and leasing cost

Cap rate cannot be used when calculating discount. It is the discount rate of the house invested by REIT. Use re

DCF is not available; risk is not measurable; unpredictable exit; high cash burn rate

DCF can; risk can be measured; predictable exit

management fee; transaction fee intermediary related costs; carried interest (for GP); hurdle rate; ratchet equity incentive; fund size; vintage; term of fund

key man clause; disclosure and confidentiality; clawback provision; distribution waterfull: deal by deal (by project) total return watergull Note: deal by deal clawback provision=total return; tag-alone; co-investment

single round of financing

two-stage

Divide future investment amount by share

q:prob of failure in a year, ,r

demand: human, fuel and animal feed

GDP growth and industrial production

Influencing factors: quality, weather, technology, politics (dramatic risk factor), business cycle

Supply substitution of crude oil, demand, cost-effectivity, high storage cost and transportation cost

heating oil,gas oil,jet oil,propone,gasline,bunker fuel

S&B DCF

>0,contango

Producer is afraid of falling prices short; consumer is afraid of rising prices long

convenience yield income brought during the holding period

Use costs and benefits to determine premiums and discounts

Proceeds from rollover, extended position

<0,contango