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A To Part B Publicly traded REITs have long been considered safe investments because they have steady revenue generation streams — property rents for equity REITs or debt service payments for mortgage REITs. However, many REITs were forced to cut or suspend their dividend payments in 2020 during the COVID crisis. Using the information from question 1 above, assume that Aztec REIT completely suspended its dividend. In other words, it expects to pay $0 per share next fiscal year. The next two years it expects to partially reinstate its dividend to $3.50 per share. Then in year 4, it expects to fully reinstate its dividend to $8.75 per share and to increase those dividends at about 3.1 percent per year in the future. Assume investors in REITs like Aztec still require a return of 7.8 percent. A) (Show All Your Works For Your Calculations)) What value per share is indicated using a dividend discount model? B (Using Your Own Words To Answer This Question And Do Not Copy Online Information For Your Answer): During times of crisis, what is the most appropriate way to value REITs: FFO multiples, dividend discount models, or net asset value estimations? Discuss the strengths and limitations of each approach and justify your selection?

 
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