Property Trusts Finance and Amp Taxation
Major Assignment v1
1. Understand & evaluate REIT performance
2. Understand and calculate net asset value (NAV)
3. Understand the principles of portfolio theory in property investment
4. Understand the concepts of alternative finance structures
5. Understand the principles of risk assessment and volatility in listed property
Assessment: Weighting 30%
Due Date: Due week 12 at 4pm Wednesday 5th December. Hand in as per guidelines for the
Faculty of Society and Design. You must include a copy of a signed assignment coversheet
even if submitting electronically. Only assignments submitted via SafeAssign on iLearn will
be marked. Please email me an Excel spreadsheet of the calculations you used in your
Format: This assessment incorporates a report either as an individual or as a group of
2. Compile a written report with a clearly defined introduction and conclusion. The body
of the assignment must use sub-headings to address specific issues.
Word Range: 2000 – 3000 words for individuals
3000 – 4000 words for groups of 2
Property Trusts Finance and Amp Taxation Task: Submit a written report. Investigate and compile a report analyzing two ASX listed
A-REIT funds. You will need to access information about the funds from various sources
which may include:
a. The fund website
b. Analysts reports from brokers or banks
c. Annual reports and financial information of the fund
d. Product Disclosure Statements (PDS)
e. ASX announcements for the fund
f. Reports from research houses
1. Choose two REIT’s to Investigate and compile a report analyzing the trusts against the
A-REIT ASX 200 (or 300) index. The components of this index can be found at the
following website: http://www.investing.com/indices/s-p-asx200-a-reit-components
2. Your chosen REIT’s may be either closely related competitors or in different property
sectors. ONLY ONE ASSIGNMENT MAY USE ANY ONE PAIRING OF REITS. First in best
dressed and I will update the REIT’s chosen on iLearn. Graph the share/unit price of
your chosen funds against the A-REIT ASX200 index and the ASX 200 index in Excel for
a period of 5 financial years through to June 30th , 2020. I will provide a data file with
the daily share price movements of the A-REITS that are permitted to be chosen for
the assignment as well as the A-REIT 200 index.
3. Review the assets within the portfolio of your chosen A-REIT’s and comment on in
a. Trust structure and composition
b. Characteristic and type of real estate assets held
c. Geographic distribution
d. Number of assets held and value of fund
4. Determine the financial performance of your chosen REIT’s:
a. Net tangible assets over the analysis period
b. Discount/premium to NTA/ per unit over analysis period
5. Calculate the Holding Period Return (HPR) of an investor investing $100,000 over a 1,
3, and 5 yr time frames (to 30th June 2020) including share/unit price and distributions.
This is from the perspective of a unit holder.
6. Give a market commentary on the key economic indicators that will influence the
commercial property market in Australia over the next few years as well as the
specific property types of your chosen REIT’s. (I.e Commercial, Retail or Industrial)
7. Analyze and comment on the financial performance of your chosen REIT’s over the
last 3 years.
a. Annual profit
b. Return on equity
c. Average gearing level
d. Market capitalization
f. Interest cover
g. Any other measure you believe to be important
8. Comment on the forward outlook for the REIT sector and whether your chosen REIT’s
and/or the Listed Property Market (A-REIT) index present a good opportunity to buy.
(Comment on value)
9. Give an assessment and comparison of your two chosen REIT’s and which (if any)
would make a better investment.
10. Outline any key risks you see to investing in your chosen REIT’s and investing in the
AREIT’s as an asset class.
Late submissions – the following adjustments will be made to the maximum marks
Up to 1 day late = minus 10% (maximum 90%)
Up to 2 days late = minus 20% (maximum 80%)
Up to 3 days late = minus 30% (maximum 70%)
Up to 4 -5 days late = minus 50% (maximum 50%)
After 5 days then no marks will be awarded
Marks & Assessment Criteria
Outstanding or exemplary performance in the following areas:
interpretative ability; intellectual initiative in response to
questions; mastery of the skills required by the subject, general
levels of knowledge and analytic ability or clear thinking.
Usually awarded to students whose performance goes well
beyond the minimum requirements set for tasks required in
assessment, and who perform well in most of the above areas.
Usually awarded to students whose performance is considered to
go beyond the minimum requirements for work set for
assessment. Assessable work is typically characterized by a strong
performance in some of the capacities listed above.
Pass 50-64 Usually awarded to students whose performance meets the
requirements set for work provided for assessment.
Usually awarded to students whose performance is not considered
to meet the minimum requirements set for particular tasks. The
fail grade may be a result of insufficient preparation, of inattention
to assignment guidelines or lack of academic ability. A frequent
cause of failure is lack of attention to subject or assignment guidelines.
Property Trusts Finance and Amp Taxation