Report: Property Fund and A-REIT Valuation Report

Overview

The aim of this assessment is to implement the principles of property investment strategy in setting
up a property fund, as well as to prepare a property analyst’s professional research report on the
valuation of an A-REIT.

Details

This assignment consists of two major parts. Section A requires you to prepare a strategic report for
consideration by your property investment executive team. Section B requires you to prepare a
property analyst’s A-REIT research report.

Section A

You are part of a specialist property funds management team managing the property portfolio of
major institutional investors.

Due to the current macroeconomic context of inflationary environment and a mounting prospect of
weak investment returns in the traditional property sectors, these institutional investors are seeking
to redefine their property portfolios using assets with higher investment potential.

You have been asked to prepare a proposal for the establishment of a new $500 million unlisted
property fund with an alternative property sector investment mandate for consideration by these
institutional investors.

Note: You are not allowed to choose self-storage and nursing homes as these sectors have been
covered in the sample reports.

Details and justification are needed for all aspects of this investment proposal, including:

 Fund overview: property sector, fund structure, fund strategy, fees, minimum capital
investment etc.

 Investment objective of fund

 Performance and demand drivers of property sector

 Risk factors of property sector

 Property portfolio diversification strategy

 Example of property assets in portfolio

 Post-pandemic investment outlook/potential based on the fund’s property sector

Sufficient information should be provided to enable an informed decision concerning the viability of t
his property fund proposal.

Length: 10 pages max.

Section B

Select an A-REIT from the list below and prepare a property analyst’s professional research report by
including the following components.

1) Background information of the company, including but not limited to

- Overview of the company.

- Details and current value of the property portfolio.

- Diversification of the property portfolio.

- Risk management strategies used by the company

2) Valuation of the company by using yield-based, NTA-
based & Dividend Discount Model valuation methods.

3) Investment recommendations based on valuation and future outlook of the company.

Report should include any key assumptions with an explanation as to why you used these. Reports
need to be presented as a professional standard property analyst’s report for the valuation of an A-
REIT.

Length: 10 pages max.