Finance Financial Performance Measures and Value Creation

Question: Discuss about theFinance: Financial Performance Measures and Value Creation. Answer: Introduction: Evaluation of Green REIT Activities of Green REIT There are various Green REITs across the world. However, in this assignment the Green REIT Plc of Ireland has been selected for analyzing its activities, financing model, government rules and regulations and effect of environmental and social criteria on the firm. The Green REIT Plc is an Irish real estate investment trust that is enlisted on both the Irish and London Stock Exchange. Green REIT Plc is an organization that finances or owns income-producing real estate. This system of investment has been structured rightly after the system of mutual funds. As per the similar strategy of the mutual funds, the REITs give its investors various kinds of regular income streams, long-term capital appreciation and diversification[1]. The particular organization generally pays out all of its income that is taxable as dividends to the shareholders of the firm. In turn of this, the shareholders compensate the income taxes on these dividends. The Green REIT Plc allow every investor to invest in t he portfolios of the large scale properties in a similar way in which they invest in the other sectors by purchasing the stocks. In the similar manner, the shareholders get benefited in case of investing in Green REIT Plc by purchasing shares in various different companies. Thus, the Green REIT Plcs shareholders generally receive the share of the produced income by the investment in the real estate without buying or financing property in real[2]. Financing Model The financing model of the Green REIT Plc is of unique nature. It can be said that the financing model of the investment in the Green REIT Plc are similar to the investment strategy in the mutual fund. It has been found that the Green REIT plc is operated on the main stock exchanges. Most importantly, REITs are of two kinds Mortgage REITs and Equity REITs. The equity REITs help in generating returns by the process of collecting the rent by selling the properties which they purchase with the aim of long-run investment. In addition to this, investment in the mortgage securities and mortgages that are related to the commercial and residential properties are termed as mortgage REITs. Government Programs and Regulations Used to Complement its Financial Performance Green REIT plcs operations are composed of both domestic and international laws and governmental regulations that are related to land use, property, safety and health requirements, zoning, development and environmental compliance[3]. Metrics Used to Measure Environmental and Social Impact of Green REIT Plc The laws and regulations of the Green REIT plc regarding environmental and social impact are amended over time. The liabilities might result into significant removal, investigation or remediation costs despite of whether the firm Green REIT Plc caused the contamination or other hazards of environment. The environmental regulations and laws of the company Green REIT Plc. limit the development of and also impose liability for the interruption of the habitats or wetlands of the endangered or threatened species. The particular company has various impacts on the environment and social. It can be measured through survey, the benefit that is received by the public and the maintenance of the health of the public. In addition to this the viewpoint of the society also helps to measure the environmental and social impact of Green REIT Plc. Expected Impact of the Environmental and Social Criteria on Financial Performance For Green REIT plc, leasing properties those containing storage tanks for storage of toxic or hazardous substances to tenants those are associated with commercial and manufacturing activities will increase the risk of liabilities as per environmental laws and regulations[4]. However, if the firm Green REIT Plc is exposed to environmental liabilities then the environmental laws and regulations might have a negative impact on the financial performance of the firm along with business prospects. Information on Actual Financial Performance of the REIT Nowadays, the Green REIT plc is associated with most of the aspects that are related with the economy. These include hotels, hospitals, infrastructure, industrial amenities, apartments, offices, shopping malls, student housing, storage centers, nursing homes and timberlands. Thus, the actual financial performance of the Green REIT plc is continuously growing with the development and popularity of the REIT investment among the investors. References 'Green REIT PLC' (Green REIT PLC, 2016) https://www.greenreitplc.com/ accessed 23 June 2016 'IRIS Metrics | IRIS' (Iris.thegiin.org, 2016) https://iris.thegiin.org/metrics accessed 23 June 2016 Venanzi D,Financial Performance Measures And Value Creation(Springer 2012) 'What Is A REIT? | NAREIT' (REIT.com, 2016) https://www.reit.com/investing/reit-basics/what-reit accessed 23 June 2016