NO.PZ2023041004000052
问题如下:
Annear comments, “Some valuation approaches require a measure of current economic income. I believe it is better to use adjusted funds from operations for this than the more widely used funds from operations measure because it takes into account maintenance and leasing expenses needed to maintain the income stream and is less subject to error or variation in estimation.”
Is Annear most likely correct in his reasons for preferring adjusted funds from operations as a measure of economic income?
选项:
A.Yes.
B.No, because he is incorrect about treatment of capital expenditures.
C.No, because he is incorrect about the potential for variation and error in estimation.
解释:
C is correct. Annear is incorrect in his assessment of the potential for variation or error in estimation. Adjusted funds from operations (AFFO) is a refinement of funds from operations (FFO), which takes into consideration the leasing and maintenance-type capital expenditures necessary to maintain the economic income of a property. It is, however, subject to more variation and error in estimation than FFO. The precise annual provision required to maintain and lease space in a property is difficult to predict and the actual expense in any single year may be more or less because of the timing of capital expenditures and the uneven expiration schedules of leases.C选项不太好理解,可以直白解释一下吗。