Deriving Capitalization Rates and Other Valuation Metrics from the

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Deriving Capitalization
Rates and Other
Valuation Metrics from
the REIT Market                                                                                    AbSTRAcT
                                                                                               Appraising real estate
by Gary S. DeWeese, MAI                                                                        relies on the availability
                                                                                               of market transactions
                                                                                               to derive valuation

                                                                                               metrics. Since late
                                                                                               2008 there has been a
          istorically, appraisers have relied on the sales of comparable properties            dearth of sales activity.
to derive an overall capitalization rate (Ro ), and other valuation metrics, to value          However, the publicly
commercial real estate. The basic formula Ro = Io /Vo enables appraisers to derive             traded REIT market
a capitalization rate if both the net operating income (Io ) and the cash equivalent           represents current
value or price (Vo ) of the comparable property are known. However, commercial                 transactions between
real estate transaction volume is down as much as 90% from the peak in the second              buyers and sellers of
quarter of 2007, and transactions have become virtually nonexistent since the fourth           real estate. The public
quarter of 2008. The transaction decline is illustrated in Figure 1.                           market represents a
     The decline in transaction volume is due to the lack of credit and the pro-               source of data from
longed economic slump. As a consequence, appraisers cannot find transactions                   which valuation metrics
in the private market from which to derive capitalization rates. On the other                  can be measured. This
hand, real estate is trading hands daily in the form of publicly traded REIT                   article explores a model
stocks. Capitalization rates and other valuation metrics can be extracted from                 for deriving the implied
stock prices and used by appraisers as surrogates to value private real estate                 capitalization rate and
when private market transactions do not exist.                                                 other valuation metrics
     Traditionally, there have been a number of alternative techniques to derive               from the public markets.
a capitalization rate other than from market transactions. These techniques                    These metrics may be
include the following:                                                                         useful in appraising
                                                                                               private real estate when
 •	Band	of	investment	techniques,	where	the	capitalization	rate	is	based	on	a	
                                                                                               private transactions do
   weighting of the financial or physical components of the property
                                                                                               not exist.
 •	The	underwriter’s	method,	where	Ro = debt coverage ratio (DCR) × loan-to-
   value ratio (M) × mortgage capitalization rate or constant (Rm)
 •	Derivation	from	a	yield	rate	(Yo ) using the formula Ro = Yo – ∆a, where ∆a is
   the relative change in value and income
 •	Surveys

Deriving Capitalization Rates and Other Valuation Metrics from the REIT Market   The Appraisal Journal, Fall 2009
      Yet, each of these techniques also is handicapped         in the form of private transactions, or on “Wall Street,”
by the lack of current market activity from which to            in the form of REIT stocks. Nevertheless, there are dif-
derive the elements of the formula. For example, the            ferences between purchasing real estate in the private
band of investment model using financial components,            market and in the public market. These differences
which has recently gained favor among appraisers                relate primarily to the relative liquidity of each market,
looking for alternative ways to derive a capitalization         the relative size of the investor pool for each invest-
rate, relies on knowing the equity capitalization rate          ment, the way investors may finance their investments,
(Re ). However, the equity capitalization rate is best          and the volatility of prices in each market.
determined from actual market transactions and is                     Individual REIT investors seldom are competitors
a function of the future growth rate of the cash flow           for the purchase of most commercial real estate, and
after debt service. The underwriter’s method relies             thus their investment criteria might not directly trans-
on lender loan requirements, which can vary signifi-            late into private market valuation metrics. However, in-
cantly from property to property and investor to inves-         stitutional investors do have the ability to purchase com-
tor and, essentially, backs into the capitalization rate.       mercial real estate in either a public or private format.
The yield rate formula is applicable if the yield rate          Their investment requirements for purchasing property
(Yo ) and ∆ are known, but both of these formula inputs         in the private market should more or less mirror their
should be derived from market transactions. Finally,            requirements for investing in the public market. In addi-
surveys rely on market transactions as well. In other           tion, because real estate operating fundamentals (rents,
words, the alternative techniques for determining a             occupancy, and expenses) affect the private and public
capitalization rate depend to one extent or another on          market similarly, the private and public pricing of real
inputs from market transactions, of which there are             estate tends to move, although not perfectly, in the same
few or none currently in the private market.                    direction over time. Informed REIT investors know the
                                                                capitalization rate or price per unit (or square foot) at
A New Model to Derive the Capitaliza-                           which they would be buying the assets of the REIT at
tion Rate from the Public Market                                a given stock price because they can alternatively buy
The public market for commercial real estate, specifi-          similar assets in the private market.
cally in the form of shares of real estate investment
trusts (REITs), effectively represents the primary, if not      Overall Value of REIT-Owned Real Estate
only, market in which real estate now actively trades           The value of real estate can be viewed as the sum of
on a day-to-day basis. In theory, investors should be           the value of the financial (debt and equity) compo-
indifferent as to buying real estate on “Main Street,”          nents, as represented by the formula

Figure 1 Commercial Real Estate Transaction Volume, 2007–2009


Volume ($B)





                       07Q1      07Q2   07Q3    07Q4         08Q1        08Q2        08Q3         08Q4         09Q1       09Q2
Transactions > $5M
Source: Real Capital Analytics

358 The Appraisal Journal, Fall 2009                   Deriving Capitalization Rates and Other Valuation Metrics from the REIT Market
                          Vo = Vm + Ve ,                                 Methodology
                                                                         There is no better way to estimate a capitalization rate
where Vm represents the outstanding debt and other
                                                                         than by the current actions of buyers and sellers. The
liabilities of the REIT, and Ve represents the stock
                                                                         same information can be used to estimate the implied
market equity capitalization (current stock price mul-
                                                                         price per unit (or square foot) or the implied rent
tiplied by shares outstanding). Thus, Vm + Ve combine
                                                                         multiplier that an investor is paying at any given stock
to form the overall market value of all the real estate
                                                                         price. The following case study example demonstrates
owned by the REIT.
                                                                         the steps in this technique.
     The inputs for the model can be derived from
the quarterly (10Q) and annual (10K) SEC filings                         Step 1: Estimate Net Operating Income
and the investor supplemental information, all of                        Investors in private and public real estate are usu-
which are available at REITs’ Web sites under tabs                       ally forward looking when making private or public
usually labeled “Investor” or “Investor Relations.”                      market investments. Therefore, the first step is to
The information is available in PDF format, thus                         forecast the annualized net operating income (Io ) to
enabling the reader to use the “Search” function to                      be received by the REIT over the next four quarters.
find data points among the sometimes hundreds of                         Table 1 shows the steps in calculating the annualized
pages of information.                                                    net operating income.
     The net operating income (Io ) received by the                           The model requires a number of adjustments
REIT can be measured from the income statement                           be made to revenue and expenses in order to derive
reported in the filings. Dividing the annualized net                     net operating income. For example, Line 3 in Table 1
operating income (Io) by the sum of (1) the equity                       is necessary to the calculation because REITs, like
market capitalization (Ve ) and (2) the liabilities of the               other corporations, report income on a straight-line
REIT (Vm ) equals the implied capitalization rate at                     basis in accordance with generally accepted account-
which the investor is effectively buying the underly-                    ing principles (GAAP). Therefore, leases extending
ing real estate assets owned by the REIT.                                beyond one year must report the average rent over
                              Annualized net operating                   the lease period, thereby necessitating an upward or
                                   income (Io )                          downward adjustment to the current reported rev-
 capitalization       =                                                  enue depending on the income pattern of the leases.
   rate (Ro )             capitalization +          Liabilities          This adjustment is also reported by the company,
                               (Ve )                   (Vm )             usually in the investor supplemental information.
                                                                         In the present example, no adjustment is necessary
    How can appraisers use data from public mar-                         because the subject REIT is a multifamily company
ket transactions to value real estate in the private                     with all leases less than one year.
market? Approximately 95% of REITs purchase only                              Other adjustments may also be necessary in
one specific property type. Among those, most tilt the                   order to recognize the impact of certain Financial
portfolio to one or a few specific geographic markets,                   Accounting Standard Board (FASB) regulations, such
sometimes deriving as much as 80% of their net                           as those relating to the fair value method of accounting
operating income from one state. Other REITs may                         for leases. Again, these adjustments can be found in
not have such a high geographic concentration, but                       the company’s publicly filed documents. Line 5 in
their portfolios still tend to be focused regionally.                    Table 1 is necessary because the goal in the model
These geographic concentrations are disclosed by the                     is to measure continuing income and not one-time
REITs. Thus, if an appraiser is appraising a property                    income, such as lease termination fees. Line 8 is
that is comparable in type, physical characteristics,                    necessary because some companies will include real
and geographic location to that owned by a REIT,                         estate–related property management expense as part
then the capitalization rate implied by that REIT’s                      of general and administrative corporate expense.
stock market price should provide the appraiser with                     The appraiser would need to compare the reported
a current view of the capitalization rate at which buy-                  property management expense to the amount based
ers and sellers are willing to conduct transactions,                     on a property management fee rate in the market
albeit in a publicly traded format.                                      and possibly add additional expense in Line 8. It
                                                                         also should be noted that leasing commissions,

Deriving Capitalization Rates and Other Valuation Metrics from the REIT Market            The Appraisal Journal, Fall 2009
Table 1        ABC Multi-Family Realty Trust
 Line                                                                                                                                        Quarter ($M)
   1        Rental revenue from continuing operations                                                                                            $85.0
   2        Plus: Property-related ancillary income                                                                                                  3.3
   3        Plus/Minus: Straight-lining of rent                                                                                                      0.0
   4        Plus/Minus: Adjustment per FASB regulations                                                                                              0.0
   5        Minus: Lease termination fees received                                                                                                  (0.0)
   6        Subtotal: Effective gross income                                                                                                     $88.3
   7        Minus: Operating expenses, incl. property management and maintenance                                                                  (25.6)
   8        Minus: Portion of general and administrative expense attributable to property management                                               (0.0)
   9        Subtotal: Net operating income (Io)                                                                                                  $62.7
 10         Plus: Company's share of Io from unconsolidated entities                                                                                 0.0
 11         Minus: Estimated Io in the quarter (Q) from acquisitions                                                                               (0.0)
 12         Plus: Quarterly Io from acquisitions                                                                                                     0.0
 13         Minus: Estimated Io in Q from dispositions                                                                                             (0.0)
 14         Minus: Actual Io from prestabilized development and renovated units placed in service
            during the Q
  15        Plus: Quarterly Io from prestabilized development and renovated units                                                                      0.6
  16        Subtotal: Io at the beginning of the next Q                                                                                              $63.0
  17        Times (1 + Io cumulative growth forecast over next 4 quarters of –2.25%)                                                                  61.6
  18        Times 4 equals Io annualized (forecast next 4 quarters (N4Q)) before recurring capital
            expenditures (capex)                                                                                                                     246.3
  19        Minus: Forecast of recurring capex per year                                                                                              (24.8)
  20        Total Io annualized (forecast N4Q) after recurring capex                                                                                $221.5
Note: Numbers are rounded to one decimal point for ease of illustration, therefore annualized numbers may not equal quarterly numbers times four.

which are not usually payable by a multifamily REIT                                or calculated based on the reported capitalization
but are payable by REITs owning other kinds of                                     rate and value at which the company purchased or
properties, are not treated as an operating expense.                               developed real estate, must first be subtracted. The
Leasing commissions, like tenant improvements, are                                 subtracted amount is then offset by an addition of twice
capitalized and then amortized (written down) over                                 the amount subtracted based on the assumption that,
their useful life.                                                                 on average, these multiple sources of net income came
     An input for net operating income from unconsoli-                             on line halfway through the quarter. If the net income
dated entities (Line 10 in Table 1) must be considered                             from these sources is reported to have been received
if the company receives income, from entities such as                              near the beginning of the quarter, the adjustment can
joint ventures or partnerships, that is not consolidated                           be less and vice versa if it was received near the end
on the company’s income statement. If this is the case,                            of the quarter. Note that Line 13 is usually $0 because
the company will report such income. Note that if                                  assets sold during the quarter are reported as discon-
the income is included in Line 10, then care must be                               tinued operations and are not part of revenue received
exercised to not include the value of this asset later,                            from continuing operations.
which would be double counting. (Alternatively, the                                     Finally, Lines 17–20 in Table 1 adjust quarterly
value of the asset may be included in Line 30, shown                               net operating income for future growth or decline,
later in Table 3, in lieu of counting its associated net                           annualize the number, and then deduct recurring
income in Line 10.)                                                                capital expenditures so that the implied capitaliza-
     The adjustments to net operating income in Lines                              tion rate can be measured both before and after such
11–12 and Lines 14–15 are required because a com-                                  capital expenditures.
pany’s quarterly income statement includes income
and expenses from acquisitions, new developments,                                  Step 2: Calculate Total Liabilities
and rehabilitation projects placed in service sometime                             The second step is to calculate total liabilities, which
during the quarter, but which must be accounted for                                is illustrated in Table 2. Note that Line 25 in Table 2
on a full quarterly basis going forward. Therefore, the                            is necessary if a company reports unconsolidated net
amount received during the quarter, which is either                                operating income in Step 1, because the company’s
reported by the company as a lump sum amount                                       share of the associated unconsolidated debt, if any,

360 The Appraisal Journal, Fall 2009                                    Deriving Capitalization Rates and Other Valuation Metrics from the REIT Market
must be included in total liabilities. If net operating                  inherent in this asset may be worth more or less
income from joint ventures is consolidated, i.e., in-                    than the actual cash invested to date. Line 30 for
cluded in the income statement, then any share of                        equity investments is necessary if a company does
the REIT’s third-party debt will be consolidated in                      not include the revenue (or the expenses) from con-
the reported balance sheet liabilities.                                  solidated entities in the revenue from continuing
                                                                         operations (Line 1) but reports this elsewhere in
Step 3: Calculate Assets Other Than Operating                            the income statement, which is the case with this
Real Estate                                                              case study example.
Step 3 in the methodology recognizes that REITs                               The value of land held for future development
are more than just a collection of income-producing                      (Line 32) is based on the amount reported by the
real estate assets. When an investor purchases the                       company. However, this amount may not represent
stock, there are other assets—for example, cash                          fair market value. The amount may be based on
and construction-in-progress (CIP)—that are be-                          cost and may not be adjusted downward for value
ing acquired along with the operating real estate.                       impairment having been caused by a declining
In order to measure the implied valuation metrics                        market. On the other hand, it should be noted that
for the operating real estate, these other assets                        public companies are required to write down land
need to be summed and then deducted (see Step 5)                         values when known; in fact, they are motivated to
to calculate the value of the operating real estate.                     do so regularly to minimize the negative impact of
Table 3 shows the calculation of assets other than                       large lump sums on reported GAAP earnings. In
operating real estate.                                                   stable markets, overvaluations of individual land
     The value of CIP, which is not currently gen-                       investments might be offset by undervaluations of
erating revenue and therefore not included in                            other investments, thus resulting in a minimum
revenue from continuing operations (Line 1), is                          net effect on the value of this asset.
listed on Line 28 in Table 3. The value reported                              Table 3 also includes an entry for real estate
by the company may be adjusted upward with a                             held for sale (Line 34). This entry is necessary because
premium (10% is typically used by investors)—or                          the reported revenue is from continuing operations
possibly discounted—to recognize that the value                          and it does not include income from assets that the

Table 2      Calculation of Total Liabilities
 Line                                                                                                             Quarter ($M)
 21       Mortgage notes payable                                                                                     ($151.5)
 22       Unsecured senior notes                                                                                    (1,529.6)
 23       Lines of credit                                                                                              (245.0)
 24       Accounts payable and accrued expenses                                                                          (91.0)
 25       Pro rata share of unconsolidated joint venture debt                                                              0.0
 26       Total liabilities                                                                                       ($2,017.1)

Table 3      Calculation of Total Assets Other than Operating Real Estate
 Line                                                                                                             Quarter ($M)
 27       Cash                                                                                                         $7.7
 28       Construction-in-progress (CIP) @ 110% of cost                                                               322.3
 29       Advance deposits                                                                                               0.0
 30       Equity investments in unconsolidated and consolidated entities (joint ventures,                              62.5
          partnerships, etc.)
 31       Deferred financing costs                                                                                       0.0
 32       Land held for future development                                                                             122.6
 33       Mortgages and loans receivable                                                                                 0.0
 34       Real estate held for sale (in future)                                                                         31.9
 35       Other assets                                                                                                  76.5
 36       Value off balance sheet asset (third-party asset mgt. net income, merchant building income)                    0.0
 37       Total assets other than operating real estate                                                               $623.5

Deriving Capitalization Rates and Other Valuation Metrics from the REIT Market            The Appraisal Journal, Fall 2009
company is in the process of selling, but from which           Step 5: Calculate Implied Value of Operating
net operating income will continue to be received              Real Estate
until the assets are sold. In other words, the assets held     Step 5 measures the implied value of the income-
for future sales are part of what an investor purchases,       producing real estate owned by the REIT. The sum
and from which the investor will benefit when the as-          of the equity market capitalization (Line 44, Table 4)
sets are eventually sold. Therefore, the value of these        plus total liabilities (Line 26, Table 2) minus assets
assets must be accounted for in the model.                     other than income-producing real estate (Line 37,
     Likewise, the value listed on Line 36 is an as-           Table 3) represents the total implied market value
set that investors are purchasing even though it is            of the income-producing real estate in the model
not reported in the balance sheet. The value of such           (Table 5). Nonconvertible stock and bonds are added
items as third-party asset management services or              in this part of the model (Line 47) because they are
merchant building services provided by the company             effectively long-term liabilities even though they are
create value that must be estimated based on a market          not classified as such in the liabilities section of the
multiple for such business services. Typically, these          company’s income statement.
business services generate irregular and, in some
cases, finite streams of gross and net income that are         Step 6: Deriving the Implied Capitalization Rate
also separately reported. The appropriate multiples            Results from the foregoing analysis can be used to
to estimate the value of these off-balance-sheet assets        measure the capitalization rate. Since the stock price
should be derived from the market, and typically will          is the primary variable in the model, the appraiser can
fall in a range of 1–2 times the gross income or 4–5           determine the implied capitalization rate at a given
times net income. In the case of most REITs, this value        stock price by dividing the annualized forecast of net
is usually not very significant.                               operating income (Line 18 or Line 20, Table 1) by the
                                                               implied market value of the operating real estate (Line
Step 4: Calculate Equity Market Capitalization                 49, Table 5), which produces implied capitalization
The next step in the model is to calculate the equity          rates of 8.1% before recurring capital expenditures
market capitalization (Ve ). In this calculation, the          and 7.3% after recurring capital expenditures.
stock closing price is the primary model variable
(Line 38, Table 4). Meaningful parts of the com-               Other Valuation Metrics
pany’s overall equity capitalization include com-              Other valuation metrics can be measured using
mon stock equivalents, such as convertible stock/              the same model. For example, dividing the implied
bonds and in-the-money stock options; these values             market value of the operating real estate (Line 49)
are accounted for in Lines 40–42.                              by the number of units (or square footage) of the

Table 4    Calculation of Equity Market Capitalization
 Line                                                                                                               Quarter (M)
 38       Stock closing price per share                                                                                $27.98
 39       Common shares, basic (end of Q)                                                                               51.15
 40       Plus: Operating partnership or company units (minority interests)                                              0.78
 41       Plus: Convertible stock, bonds, notes, units                                                                   0.00
 42       Plus: Common shares equivalents (e.g., dilutive effect of stock awards)                                        0.65
 43       Total shares (end of Q, fully diluted)                                                                        52.58
 44       Equity market capitalization (Ve) (stock price × total shares), rounded                                    $1,471.2

Table 5    Calculation of Implied Value of Operating Real Estate
 Line                                                                                                             Quarter ($M)
 45       Equity market capitalization @ stock price                                                                $1,471.2
 46       Plus: Total liabilities                                                                                    2,017.1
 47       Plus: Nonconvertible preferred stock                                                                          175.0
 48       Minus: Total assets other than owned operating real estate                                                  (623.5)
 49       Implied market value of operating real estate                                                             $3039.8

362 The Appraisal Journal, Fall 2009                  Deriving Capitalization Rates and Other Valuation Metrics from the REIT Market
Table 6      Implied Valuation Metrics, Rounded
 Line                                                                                                             Quarter ($M)
 50       Implied capitalization rate (Ro) before recurring capex                                                       8.1%
 51       Implied capitalization rate (Ro) after recurring capex                                                        7.3%
 52       Implied value/unit                                                                                       $159,500
 53       Implied effective gross income multiplier                                                                       8.6

improvements (in this case 19,053 wholly owned                                Fourth, the assets of the REIT may not mirror
units) produces the implied value of the income-                         the subject property. The implied capitalization rates
producing real estate on a per unit basis (Line 52, Table                (Lines 50 and 51) represent the weighted average
6). Dividing the implied market value of the operating                   rates for all the assets owned by the REIT and are not
real estate (Line 49) by the effective gross income                      property specific. The appraiser’s subject property
(Line 6), annualized and adjusted, if necessary, for                     may not represent the typical property owned by the
growth or decline (per company’s reported guidance                       REIT; therefore, the implied capitalization rate would
or analyst estimate; 0% in this example) for the next                    not be applicable to the subject property. There will
four quarters, produces the implied effective gross                      never be perfect similarity, so care must be exercised
income multiplier (Line 53, Table 6).                                    to choose a REIT with as many similar property
                                                                         characteristics to the subject property as possible. In
Limitations of the New Model                                             addition, the appraiser should conduct this analysis
There are some limitations to using public stock                         on as many comparable REITs as possible in order to
market prices to estimate valuation metrics in valuing                   derive meaningful valuation metrics. These statements
private real estate.                                                     are true whether private or public market transactions
     The first limitation is that the model reflects the                 are used to derive a capitalization rate.
state of the balance sheet as of the last reported date,                      The two major characteristics that must be similar
which can be as much as 90 days ago. While balance                       are the geographic tilt and the physical quality of the
sheet assets and liabilities may not change very much                    REIT’s portfolio relative to the private market property
from quarter to quarter, the analysis performed is                       being valued. The geographic tilt of a REIT’s portfolio
based on the historical balance sheet, which is re-                      can be examined each quarter when the REIT reports
ported only once per quarter.                                            the current geographic breakdown of its assets, usually
     Second, public stock market pricing of invest-                      as percentage of total company-wide net operating
ments tends to reflect investors’ future expectations                    income by location, as well as by reviewing the list of
sooner than is the case in the private market, often                     specific assets reported by location. The physical qual-
resulting in public market pricing leading private                       ity of a REIT’s portfolio can be compared to a subject
market pricing by a number of months. This issue is                      property by examining a number of factors typically
somewhat mitigated by using an annualized forecast                       reported by a REIT, such as average rent per unit or
of net operating income.                                                 per square foot by geographic market. In addition, the
     Third, REIT investments are more liquid and                         appraiser may have direct knowledge of the physical
REIT prices are more volatile than private real estate                   characteristics of the assets owned by a REIT and
investments and pricing. Liquidity differences are                       compare them to the subject property.
not possible to neutralize. These issues are related in                       Additional research needs to be conducted in
that private market pricing volatility is masked by the                  order to establish the extent to which valuation met-
relative illiquidity of such investments. In addition,                   rics, such as capitalization rates extracted from REIT
liquidity and volatility may offset one another to some                  financial statements, are meaningful in the analysis
extent. Public investors may be willing to accept more                   of private commercial real estate. Such research
volatility in exchange for more liquidity, whereas pri-                  would focus on back-testing data to determine the
vate investors may be willing to accept less liquidity in                historical correlation between capitalization rates in
exchange for less volatility. Volatility differences could               the private market and capitalization rates extracted
be mitigated by the analyst using the average stock                      from the public market. Such an analysis is beyond
price over a period of time in Line 38 rather than the                   the scope of this article.
stock price at a given point of time.

Deriving Capitalization Rates and Other Valuation Metrics from the REIT Market            The Appraisal Journal, Fall 2009
Conclusion                                                    Gary S. DeWeese, MAI, CRE, is the founder of Real
Whether decreased volume of private market real             Estate Strategic Solutions, LLC, a real estate consult-
estate transactions is systemic or merely a pro-              ing firm. DeWeese is the former assistant treasurer-
longed cyclical event, appraisers should consider               real estate and director of real estate investments
alternative sources of market information to derive                for the University of California system’s pension
capitalization rates, and other valuation metrics, for             and endowment funds, where he was the senior
use in the income capitalization or sales comparison            management executive responsible for both public
approaches. Evidence of current market activity, as           and private real estate investments and head of the
demonstrated daily in the public markets, can rep-          corporate real estate group. He has an MBA from the
resent an alternative source of market information             University of California, Berkeley where he has also
for appraisers who are engaged in a wide variety of          guest lectured. He is a member and instructor of the
valuation assignments, including for such purposes               Appraisal Institute, and a member of the Counsel-
as updating asset values, tax appeals, acquisitions,           ors of Real Estate and Lambda Alpha International.
dispositions, and refinancing.                                  DeWeese has previously authored manuscripts for
                                                              the Appraisal Institute and the Urban Land Institute.

   Web Connections
   Internet resources suggested by the Lum Library

   Capital Markets Update—Urban Land Institute (commercial real estate cap rate data)
   Colliers International (cap rates and other data available in Colliers U.S. Real Estate Review)
   Financial Accounting Standards Board
   Generally Accepted Accounting Principles—Federal Accounting Standards Advisory Board
   Integra Realty Resources Viewpoint (free download)|010&~=
   National Association of Real Estate Investment Trusts

364 The Appraisal Journal, Fall 2009              Deriving Capitalization Rates and Other Valuation Metrics from the REIT Market