Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Hui Lin, CFA is an investment manager looking to diversify his portfolio by adding equity real estate investments. Lin and his investment analyst, Maria Nowak, are discussing whether they should invest in publicly traded real estate investment trusts (REITs) or public real estate operating companies (REOCs). Nowak expresses a strong preference for investing in public REITs in taxable accounts.Lin schedules a meeting to discuss this matter, and for the meeting, Lin asks Nowak to gather data on three specific REITs and come prepared to explain her preference for public REITs over public REOCs. At the meeting, Lin asks Nowak:“Why do you prefer to invest in public REITs over public REOCs for taxable accounts?” Nowak provides Lin with an explanation for her preference of public REITs and provides Lin with data on the three REITs shown in Exhibits 1 and 2.The meeting concludes with Lin directing Nowak to identify the key investment characteristics along with the principal risks of each REIT and to investigate the valuation of the three REITs. Specifically, Lin asks Nowak to value each REIT using four different methodologies:Method 1Net asset valueMethod 2Discounted cash flow valuation using a two-step dividend modelMethod 3Relative valuation using property subsector average P/FFO multipleMethod 4Relative valuation using property subsector average P/AFFO multiple
| Exhibit l.Select RE IT Financial Information |
| RE IT A | RE IT B | RE ITC |
| Health |
| Property subsector | Office | Storage | Care |
| Estimated 12 months cash net operating income | $350，000 | $267，000 | $425，000 |
| (NO I) |
| Funds from operations(FFO) | $316，965 | $290，612 | $368，007 |
| Cash and equivalents | $308，700 | $230，850 | $341，000 |
| Accounts receivable | $205，800 | $282，150 | $279，000 |
| Debt and other liabilities | $2，014，000 | $2，013，500 | $2，010，000 |
| Non-cash rents | $25，991 | $24，702 | $29，808 |
| Rec un ng maintenance-type capital expenditures | $63，769 | $60，852 | $80，961 |
| Shares outstanding | 56，100 | 67，900 | 72，300 |

| Exhibit 2.RE IT Dividend Forecasts and Average Price Multiples |
| RE IT A | RE IT B | RE ITC |
| Expected annual dividend next year | $3.80 | $2.25 | $4.00 |
| Dividend growth rate in years 2 and 3 | 4.0% | 5.0% | 4.5% |
| Dividend growth rate(after year 3 into perpetuity) | 3.5% | 4.5% | 4.0% |
| Assumed cap rate | 7.0% | 6.25% | 6.5% |
| Property subsector average P/FFO multiple | 14.4x | 13.5x | 15.1x |
| Property subsector average P/AFFO multiple | 18.3x | 17.1x | 18.9x |


 
Nowak’s most likely response to Lin’s question is that the type of real estate security she prefers:
Option A:offers a high degree of operating flexibility.
Option B:provides dividend income that is exempt from double taxation.
Option C:has below-average correlations with overall stock market returns.

Answer: B