Explain about the capital structure of your chosen REIT in 2021.

Assignment 2: REITs’ Annual Reports & Capital Structure
Unit: 201012 International Property Finance (Quarter 4/2021)
Due date: 26 November 2021 [11:59 PM]
Weights: 50%
Overview of assignment The purpose of this assignment is to evaluate students’ understanding of real estate investment trusts’ (REITs’) financial information and REITs’ capital structure.
Structure of your assignment [2 marks] Section 1: Student’s details including first name, family name, Student ID, and Program/Major. Section 2: Analyses and discussions Section 3: References (provide at least five references and follow the APA style for referencing) https://library.westernsydney.edu.au/main/sites/default/files/pdf/cite_APA.pdf
Length of the assignment: The average length of this assignment is approximately 1,500 words. Assignments should be no shorter than 1,300 words and no longer than 1,700 words (including references and excluding this assignment’s questions).
Font of your text: Calibri
Size of your text: 11
Space between lines of text or paragraphs: 1.5
Alignment: Justify (distribute your text evenly between the margins)
Late submission penalty: Note that late submissions will be penalised in accordance with the School’s policy at the rate of 10% of awardable marks per day or part of day late.
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Assignment 2: REITs’ Annual Reports & Capital Structure
Details of the Assignment Choose an Australian REITs (A-REITs). A list of A-REITs can be found here: https://www2.asx.com.au/markets/trade-our-cash-market/asx-investment-productsdirectory/areits
Download the latest Annual Report and financial information of your chosen A-REIT from DatAnalysis Premium [incl. Annual Reports Online]. This database is available at the WSU Library AZ Resource List: D
PART A [3 marks] Provide a brief about this REIT’s type of business and its corporate details.
PART B [15 marks] Compare the following key financial performance indicators of your chosen A-REIT with those of another A-REIT which has engaged in similar business activities (e.g. same property sector) in 2021. [Hint: Definitions of below indicators are provided in EXHIBIT 21–3 (Chapter 21) of Brueggeman and Fisher (2019) textbook].
• Earnings per share (EPS) • Income from operations plus depreciation and amortization (NOI per share) • Funds from operations (FFO) per share • Market price per share of common stock • Dividend per share • Shareholder recovery of capital (ROC per share) • Earnings yield • FFO yield • Dividend yield • Net tangible assets (NTA) per share
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PART C 15 marks Explain about the capital structure of your chosen REIT (i.e. mix of debt and equity) in 2021. [2 marks]
(2) Calculate the Weighted Average Costs of Capital (WACC) for your chosen REIT in 2021. [8 marks]
(3) Illustrate and explain the trend of gearing ratio (debt to total assets) of the chosen REIT from 2015 to 2021. Has the gearing ratio increased or decreased? What are the consequences of rises or decreases in gearing ratio for a REIT? [5 marks]
Part D [7 marks]
(1) Does this REIT issue green bonds to finance its property investments and development? [4 marks]

If yes, how much capital has been raised by issuing the green bonds over the past ten years?
If no, what are the REIT’s environmental actions?
(2) Does your chosen REIT develop properties? [3 marks]
If yes, how does this Trust finance its development projects (debt, equity, and hybrid capital)? Provide an example of its recent property development financing.
If no, please answer the following question: Why do some firms prefer to buy properties for their operations rather than renting the property?
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