Darwin Gray
March 1, 2026
Real Estate Investment Strategies
Homework 1 – REIS Spring 2026
1. Big Dawg REIT, a national office REIT, reported GAAP net income of $88,706,000 in 2023. It
also reported the following items:
Real estate depreciation $123.546,000
Gains on Sales of $4,250,000
Tenant Improvements of $3,100,100
Leasing Commissions of $6,300,000
Shares Outstanding of 12,500,000
OP units Outstanding of 3,000,000
Based on the above, show your calculations for the below:
a). What was the REIT'S FFO for 2023? $208,002,000
Net Income + Real Estate Depreciation - Gains on Sales
$88,706,000 + $123,546,000 - $4,250,000 = $208,002,000
b) What was the REIT’s FFO per share in 2023? $13.42
Total Shares: 12,500,000 (Shares) + 3,000,000 (OP Units) = 15,500,000 Total Shares
$208,002,,500,000 = $13.42
c) Given that the REIT reported a net straight-line rent adjustment loss of $4,619,000 and capital
expenditures of $17,500,000, what was the REIT'S AFFO in 2023? $185,720,900
FFO - CapEx - TI - LC + Straight-Line Rent Loss
$208,002,000 - $17,500,000 - $3,100,100 - $6,300,000 + $4,619,000 = $185,720,900
d) Given the above in c, what was the REIT’s AFFO per share in 2023? $11.98
$185,720,,500,000 = $11.98
c) Given that the REIT paid out $143,826,000 in common stock dividends in 2021, what was its
dividend/FFO ratio in that year? (1 point) = 69.15
$143,826,000 (Dividends) / $208,002,000 (FFO) = 69.15
d). After all distributions, what percentage of the REIT'S AFFO was left over (for what the industry
calls "plowing back into the business)? (1 point) F. 22.56%
Retained AFFO: $185,720,900 (AFFO) - $143,826,000 (Dividends) = $41,894,900
$41,894,900 / $185,720,900 = 22.56%
March 1, 2026
Real Estate Investment Strategies
Homework 1 – REIS Spring 2026
1. Big Dawg REIT, a national office REIT, reported GAAP net income of $88,706,000 in 2023. It
also reported the following items:
Real estate depreciation $123.546,000
Gains on Sales of $4,250,000
Tenant Improvements of $3,100,100
Leasing Commissions of $6,300,000
Shares Outstanding of 12,500,000
OP units Outstanding of 3,000,000
Based on the above, show your calculations for the below:
a). What was the REIT'S FFO for 2023? $208,002,000
Net Income + Real Estate Depreciation - Gains on Sales
$88,706,000 + $123,546,000 - $4,250,000 = $208,002,000
b) What was the REIT’s FFO per share in 2023? $13.42
Total Shares: 12,500,000 (Shares) + 3,000,000 (OP Units) = 15,500,000 Total Shares
$208,002,,500,000 = $13.42
c) Given that the REIT reported a net straight-line rent adjustment loss of $4,619,000 and capital
expenditures of $17,500,000, what was the REIT'S AFFO in 2023? $185,720,900
FFO - CapEx - TI - LC + Straight-Line Rent Loss
$208,002,000 - $17,500,000 - $3,100,100 - $6,300,000 + $4,619,000 = $185,720,900
d) Given the above in c, what was the REIT’s AFFO per share in 2023? $11.98
$185,720,,500,000 = $11.98
c) Given that the REIT paid out $143,826,000 in common stock dividends in 2021, what was its
dividend/FFO ratio in that year? (1 point) = 69.15
$143,826,000 (Dividends) / $208,002,000 (FFO) = 69.15
d). After all distributions, what percentage of the REIT'S AFFO was left over (for what the industry
calls "plowing back into the business)? (1 point) F. 22.56%
Retained AFFO: $185,720,900 (AFFO) - $143,826,000 (Dividends) = $41,894,900
$41,894,900 / $185,720,900 = 22.56%
