REA Portfolio Management & Asset Strategy 2

Question 1

Which asset management strategy involves acquiring underperforming properties, improving them, and selling at a higher valuation?

Accepted Answer

Value-add strategy

Answer

Core-plus strategy

Answer

Opportunistic strategy

Answer

Core strategy

Question 2

What is the purpose of a 'hold-sell analysis' in real estate portfolio management?

Accepted Answer

Comparing the NPV of holding a property against the net proceeds from selling it

Answer

Determining the maximum allowable loan balance at a given cap rate

Answer

Forecasting demand for new development based on absorption data

Answer

Benchmarking a property's NOI against comparable assets in the market

Question 3

An asset manager implements a 'lease-up' strategy on a recently acquired office building. What is the primary goal?

Accepted Answer

Filling vacant space with creditworthy tenants to stabilize income and increase value

Answer

Refinancing existing debt to lower the interest rate and improve cash flow

Answer

Converting the building to a higher and better use such as residential

Answer

Selling non-core floors of the building as condominiums

Question 4

What does 'net asset value' (NAV) represent in a non-traded real estate investment trust (REIT)?

Accepted Answer

The estimated per-share value based on the appraised value of the underlying real estate

Answer

The total revenue generated by the REIT over the prior fiscal year

Answer

The market capitalization calculated from publicly traded share prices

Answer

The REIT's total assets minus total liabilities as reported on the balance sheet

Question 5

In real estate portfolio construction, what does a 'strategic asset allocation' determine?

Accepted Answer

Target weightings to property types and geographies based on long-term return and risk objectives

Answer

The specific properties to acquire and dispose of in the current quarter

Answer

The optimal loan-to-value ratio for each asset in the portfolio

Answer

The timing of capital calls to limited partners in a closed-end fund

Question 6

What is a 'preferred return' in a real estate limited partnership structure?

Accepted Answer

A minimum return threshold that LPs receive before the GP earns carried interest

Answer

The cap rate applied to the property to determine acquisition price

Answer

The interest rate charged on any capital contributions made after initial closing

Answer

A guaranteed dividend paid to limited partners regardless of property performance