This article reviews the application of present value techniques by several real estate companies to satisfy the requirements of SEC Accounting Series Release No. 190 and suggests that in the particular circumstances of this industry, the results may be more valid than in the usual industrial situation. Real estate companies tend to bemoan the conventional financial accounting requirement for depreciation of properties. Certain sayings, such as real estate tends to appreciate, not depreciate and a well-maintained property never depreciates, are taken as axiomatic in the industry. The conventional requirement that a provision for depreciation of properties be made in financial statements is a key point of contention. Properties are shown at constantly declining historical cost net book values in the balance sheet, when they are often worth considerably more than cost. Reported income is understated because of the same requirement. These two impacts combine to mislead investors in the opinion of the managements, and tend to cause share prices to be unduly depressed.