Agenda
   •  Overview
   •  Business & Economic Analysis
   •  Financial Analysis
   •  Valuation Analysis
   •  Recommendations
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                                              REIT Overview
   •   Real Estate Investment Trust (REIT) is a collection of real 
       estate assets 
   •   REITs can focus on various industries, such as: healthcare, 
       industrial, office, hotel, mall, residential, etc.
   •   They can also own a diverse portfolio of assets; most REITs 
       primarily focus on one type of property 
   •   The largest public REIT is Simon Property Group(SPG), 
       based out of Indianapolis 
       • Market cap of $56.3b - 56% larger than the next biggest REIT: Public 
         Storage (PSA) 
       • SPG focuses on shopping malls and is the largest shopping mall 
         operator in America. 
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                           REIT Overview:
                             Size of Sector
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  Business & Economic 
  Analysis
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                                                                   Life Cycles
    The 4 stages of the real estate cycle: 
    1) Recovery Phase:
    •   interest rates lowered as a result of recession; vacancy in existing properties 
        begins to decline compared to the recession time peak
    2) Expansion: 
    •   economy is recovering, vacancy on existing properties continues to declines, new 
        construction projects begin
    3) Hyper supply: 
    •   economy is strong, new projects continue to come online, vacancy remains 
        strong, but goes down as a result of increasing supply
    4) Recession: 
    •   economy declines, projects from expansion phase continue to come online, 
        vacancy is at peak level
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