Learning Module 4 Real Estate and Infrastructure

Which two broad property sectors together represent the real estate market as defined in this chapter?

Which characteristic most clearly distinguishes real estate investments from publicly traded equity investments?

Which statement about sources of return for commercial real estate is most accurate according to the chapter?

Which investment vehicle is specifically designed to avoid double corporate taxation by distributing the majority of taxable rental income to investors?

Which of the following best describes a core real estate strategy as discussed in the chapter?

A fund that aims to repurpose existing property, lease vacant space, and make modest capital improvements would most likely be categorized as:

Which of the following is a primary disadvantage of direct real estate investing, as noted in the chapter?

A REIT typically reports traditional GAAP earnings but also reports 'funds from operations' (FFO). Why is FFO often used for REIT valuation?

Which of the following best characterizes a mortgage loan's Loan-to-Value (LTV) covenant in a syndicated commercial mortgage context?

If a property portfolio valued at GBP100 million is financed with GBP75 million in mortgages, what is the aggregate LTV?

Which exit strategy typically offers the fastest execution and the confidentiality benefits described in the chapter?

Which real estate investment strategy would typically have the highest expected return and highest risk?

A REIT that invests primarily in mortgages and mortgage-backed securities would be classified as which type?

Which real estate investment vehicle typically offers the greatest liquidity and transparency for a public investor?

Which statement best explains why private real estate return indexes may understate volatility and correlations with public assets?

Which infrastructure cash-flow type is a contractual payment for making a facility available, independent of usage levels?

Which infrastructure investment stage is likely to have the longest period of negative cash flow during build and construction?

A build-operate-transfer (BOT) model typically involves which sequence of phases?

Which investor type is noted in the chapter as typically making the largest allocations to infrastructure (around 5%–6%)?

Which of the following infrastructure asset types is most likely to be exposed to demand risk (e.g., usage and traffic variability)?

Which infrastructure stage typically offers the lowest expected return and lowest expected risk?

An infrastructure fund targets net-of-fees equity returns of 14% or more and invests primarily in greenfield projects without demand guarantees. Which risk profile does this match?

Which of the following is NOT listed in the chapter as a typical contractual payment type for infrastructure cash flows?

Which investor casts are most likely to invest directly in greenfield infrastructure projects, according to the chapter?

When might a private equity investor consider a recapitalization as part of exit strategy?

Which of these real estate strategies generally has the most bond-like return characteristics?

Which factor is most likely to reduce measured volatility in private real estate return series relative to public REIT returns?

Which method is commonly used by public investors who want exposure to commercial real estate income without buying property directly?

A real estate fund that limits monthly redemptions and sets NAV-based monthly prices is most likely which type of fund described in the chapter?

Which of the following best captures the reason to diversify across vintage years for private real estate and private equity funds?

Which of the following is a typical advantage of a trade sale exit over an IPO for a private equity owner of a company?

Which of these is NOT a reason the chapter gives for private infrastructure allocations by governments via PPPs?

Which of the following best describes brownfield infrastructure investments?

Which of the following is a typical risk unique to timberland and farmland investments compared to general commercial real estate?

During a market downturn, which correlation behavior between listed REITs and public market benchmarks does the chapter warn about?

Which of the following best explains why infrastructure may be a good match for pension fund liabilities, according to the chapter?

Which of the following is an example of a social infrastructure asset?

An investor seeking mostly current yield and contracted cash flows in a stable OECD country should prefer which infrastructure risk profile?

Which type of investor is most often part of a direct infrastructure investment consortium to share concentration and operational risks?

Which of the following best describes 'take-or-pay' contracts in infrastructure projects?

Which infrastructure asset category is most likely to be impacted by environmental regulation and renewable energy policy shifts?

Which financing approach is most common for greenfield infrastructure development under public-private partnership arrangements?

Which of the following best explains why infrastructure debt tends to have lower default rates and higher recoveries than comparable fixed-income instruments?

Which of the following is a common reason institutional investors prefer indirect listed infrastructure securities over direct infrastructure investments?

An investor examining potential inflation protection from real assets should expect which of the following from infrastructure and real estate, based on the chapter?

Which of the following statements about the correlation of private real estate with public markets is supported by the chapter?

Which real estate strategy is most likely to be financed with higher amounts of debt (higher leverage) to amplify returns?

Which of these is a common drawback of listed REITs compared to private core real estate funds, based on the chapter?

Which of the following is NOT an advantage of direct real estate ownership listed in the chapter?

Which factor should an investor prioritize when selecting between greenfield and brownfield infrastructure investments, according to the chapter?