RELPS

(22.) Yield differentials can also be extracted from RELP data, but REITs and RELPs are substantially different.

Market data for the minority level of value are obtained primarily from two sources: (1) publicly registered real estate limited partnership (RELP) units traded in the secondary market, and (2) REIT shares traded on exchanges.

One issue that frequently arises with market observations--and with restricted stocks and RELP trading in particular--is whether the observations need to be contemporaneous with the date of value.

(18.) Net asset value is germane for privately held partnership interest valuation, and should be germane for RELP interest pricing, since both types of entities have a limited life (see Partnership Profiles Rate of Return Study), and eventual access to their pro rata share of NAV would logically be considered by purchasers of interests.

Merely applying discounts to NAV based on publicly traded RELPs would not measure the dynamics of these and other specific company factors on value that would be considered by a potential investor.

Real estate limited partnerships (RELP) trade in the secondary market at discounted prices compared to their NAVs.

Although these average discounts might appear appropriate, the individual discount for each RELP can vary widely.