Clarissa W. Lappo - Page 17

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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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