- 17 - however, an insufficient basis for us to make an informed judgment as to the partnership’s comparability to these 14 RELPs or as to the reliability of the methods used to determine NAVs and market prices for these 14 RELPs.14 In addition, petitioner concedes that the trading volume of RELPs, which do not trade on organized stock exchanges, is very low. Consequently, Mr. Oliver’s reliance on the published RELP market prices seems questionable. ii. Respondent’s Expert Dr. Shapiro compared Green Street-reported market prices and NAVs to conclude that for the relevant period, his 52 guideline REITs traded at a 4.8-percent median price-to-NAV premium. To be conservative and to account for the difference that the partnership, unlike REITs, is not obligated to pay large and regular distributions to its interest holders, Dr. Shapiro looked below the median, to the 15th percentile, and began with an .8- percent discount as of March 25, 1996, and a 1.48-percent premium as of June 25, 1996. 13(...continued) Partnership Profiles study. 14 In his expert report, Mr. Oliver states that the NAVs of the 167 RELPs covered by the Partnership Profiles “represent either estimates by general partners, appraised values determined by independent appraisers retained on behalf of the partnerships, or some combination of the two.”Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011