Reproducing my #10 from that thread, just posted there.
Forbes also mistakes a drop in the value of a real estate asset with actual losses. As long as the cash flow remains the same, and he doesn’t sell anything, it doesn’t matter what the value of a building is. He can still depreciate its remaining basis, and deduct interest payments, same as before.
/bingo
Effective ROE or yield remains the same. Y’know, until someone decides that it’s just not fair because social justice.