Gettry Marcus’ Business Valuation Partner, Russell T. Glazer, Discusses the Best Proxy for Valuing Real Estate Holding Companies

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On January 27, 2015, Russell T. Glazer, Partner of Gettry Marcus’ Business Valuation & Litigation Services Group, was recently published in Valuation Strategies for the article entitled ‘What is the Best Proxy for Valuing Real Estate Holding Companies?’

According to Glazer, those valuing real estate holding companies should take into account all relevant factors. In the scenario of valuing a privately owned real estate holding company, the analysis should begin by taking into account the net asset value, or NAV, of the entity when using the market approach.

“Of course, this does not mean that an income approach should not be performed as well,” he explains. According to Glazer, an income approach is also an important step when evaluating a real estate holding company. Analyzing the company using both approaches is the best way to conduct a thorough analysis. The different value indications are then integrated into a single value conclusion.

Some of the sources of information used to estimate the value of a real estate company may include real estate investment trusts (REITs), closed-end real estate funds (CEFs), and real estate limited partnerships (RELPs). Glazer emphasizes, however that when applying either the income approach or the market approach, it is important to use data that is most relevant or comparable to the real estate holding company in question.

One of the last steps of the valuation process is to consider the applicability of one or more valuation discounts or premiums. These, too, must be based on relevant empirical data and applied after careful consideration of all the facts.

About Gettry Marcus:

Gettry Marcus CPA, P.C. is a Top 200 firm nationally with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include Real Estate and Health Care. We have one of the premier and most credentialed Business Valuation and Litigation Groups in the New York Area.

Our experience in diverse industries and a highly talented and experienced professional staff gives us the ability to share valuable insights into our clients’ businesses, to better understand their goals and problems and to help them attain the vision they have for their company.

Gettry Marcus is "Always Looking Deeper" to build value for our clients.

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Fayellen Dietchweiler
Gettry Marcus CPA, P.C.
+1 516-364-3390 Ext: 225
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