Textbook p222, 3rd paragraph talks about UPREIT. Need some explanation here. I googled it around but still cannot understand the rationale. Textbook p228, in the middle of the page, under “Timberland”, last sentence - “The lack of quarterly appraisals of many properties in this timberland index makes the annual return series more reflective of changes in the market than the quarterly series”. I don’t get it. No quarterly appraisal but more reflective?? Textbook p235, in the middle of the page, there is a list of income and expense items. Can anyone give me an example of “capital items” under the expense list? Textbook p243, last sentence in the last paragraph, can someone elaborate it a bit? My interpretation is REIT price should have liquidity premium, which means REIT price should be lower than the aggregate of the private real estate values. In the long term if the returns between the two are similar, I do not see how the private real estate holder gives up the liquidity premium… Textbook p267, last sentence in the 2nd paragraph, what does it mean “when tranches are narrow”? Textbook p270, last sentence in the last paragraph above the Mezzanine loans section - out of nowhere pops up this term - CMBX tranches. What is it? Appreciate any help!!!
For timberland, the annual returns would be more smoothed out than the quarterly returns because, theoretically, more reporting properties would have marked-to-market during the last four periods. Plus, there is a one-period lag in the NCREIF timberland index so quarterly returns are always a full period behind. The annual numbers would at least have 3 of the past 4 actual periods. Disclaimer – I have not read the texts yet but I do work in Real Assets and specifically timberland.