How can the GGM be expressed in terms of the firm's Net Asset Value (NAV)?
The GGM can be expressed in terms of NAV using the formula: E = (1 p)AFFO1 / (r g) or E = (1 p)yENAV0 / (r gE pyE), where AFFO1 is the Adjusted Funds From Operations in the next period, yE is the underlying equity yield, NAV0 is the Net Asset Value at the beginning of the period, r is the discount rate, gE is the underlying property equity growth, and p is the plowback ratio.