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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.”
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