Real Estate Proforma Excel Model Template
This is a Real Estate Proforma Template in Excel for you to use and analyse for your own needs.
The first thing you have to do when it comes to a real estate investment decision is to build a real estate pro forma, which really just means a cash flow projection. The following components are generally found in all real estate proformas.
Potential Gross Income (PGI)
This item found in the top line makes up the cash that could potentially be generated if the property was 100% leased. To forecast potential gross income is a function of both contractual lease terms, market rents included. Firstly, for each contractual lease in place on the rent roll, the cash flow is calculated for each year within the holding period.This considers the lease terms that are specific to each tenant.
Secondly, if in the holding period there is any period of time which is not covered by a contractual lease, the market rent is forecasted with the aim of determining cash flow that could potentially be generated considering the then prevailing market conditions.To project possible rental income will often involve taking into account renewal assumptions after the lease has expired. This includes forecasting tenant improvements, reimbursements, abatement, market leasing conditions, etc.
It is not realistic to make the assumption that a property will be fully leased forever, the vacancy allowance line item found on a real estate proforma is intended to account for expected vacancy. You can calculate vacancy in a number of different ways.
You'll usually find other income items after vacancy allowance on the real estate proforma. These generally aren't a part of contractual leases, but they'll still provide additional revenue for the property.
Effective Gross Income (EGI)
You get effective rental income as a result when you take away the vacancy allowance from potential rental income, and then add other income items.
These will include things like property management fees, insurance, taxes, and utilities.
Net Operating Income (NOI)
To get the net operating income, you subtract all operating expenses from the EGI for a property. This is probably the most commonly used indicator of cash flow when it comes to commercial real estate. It's worth noting that NOI ignores expenditures that are irregular like tenant improvement allowances, leasing commissions, and certain capital improvement expenditures.
These are expense items with regards to the property that don't occur regularly or that are specific to the investor. For example, leasing commissions, debt service, tenant improvement allowances, or reserves for replacement.
Before Tax Cash Flow (BTCF)
This allows a clear picture of the free cash flow that is available before taxes to the owners of a property.
Reversion Cash Flows
This is a value that is estimated in various ways with the aim of arriving at a net sales proceeds figure.
This Best Practice includes
1 Excel template
Property Metrics offers you this Best Practice for free!
download for free
Add to bookmarks
4.6 / 5 (13 votes)
- Rate this Downloadable Tool
Write a review
- marmah hadi(last updated: 03/12/2019 06:37)
- Anuj Datta(last updated: 11/11/2019 16:56)
- Adam Crockett(last updated: 04/11/2019 20:04)
- Jeff Brand(last updated: 28/10/2019 18:41)
- Michael McGovern(last updated: 04/10/2019 11:59)
- kdt156(last updated: 26/08/2019 17:33)
- Protasius Ayung(last updated: 29/07/2019 06:16)
- Bahram Fozouni(last updated: 07/07/2019 11:27)
- Benjamin F. Reid, III(last updated: 26/06/2019 21:33)
- Chris Gee(last updated: 03/06/2019 16:41)
- Mariusz Surowiec MARCOM Systemy(last updated: 10/05/2019 07:27)
- William Böll(last updated: 07/05/2019 11:45)
- Akintade Oluwarotimi 518(last updated: 03/04/2019 11:03)
People using this Best Practice also downloaded
Commercial Real Estate Excel Model TemplateA complete & thorough Commercial Real Estate Model for you to adapt and use for your own usage.investmentscash flowirrleveragereal estate574add_shopping_cart$49.00by Big4WallStreet
Real Estate Multi Family Development Excel ModelReal Estate Financial Model to evaluate a development project, with Equity Waterfall and Advanced Scenarios Modelingirrreal estatenoiexcelreal estate finance452add_shopping_cart$30.00by Jair Almeida
Multi-family Real Estate Excel Model (Simple & Effective)Simple & Effective Multi-Family Real Estate Model to carry out a quick analysisfinancial analysispro formaexcel modelcommercial real estatereal estate model873add_shopping_cart$15.00by Josse Carballo
10-Year Joint Venture Excel Real Estate Model with Refi LogicA detailed real estate model designed to be used to estimate future cash flows to the sponsor and investor(s).irrreturn on investmentroipro formaexcel327add_shopping_cart$70.00by Jason Varner
Founder Salary CalculatorThis Founder Salary Calculator in Excel will help you work out how much you should pay yourself as the company Founder.entrepreneurshipcalculatorexcelsalaryfounder424add_shopping_cartfreeby Christoph Janz
Used Car Dealership - 5 Year Pro-Forma Excel Financial ModelA bottom up financial model to forecast the revenue, expenses, and cash flows of a used car dealership startup business.cogsp&lcash flowfinancial modelpro forma1,127add_shopping_cart$45.00by Jason Varner
2017 Round 2, Section 1: Collect the CashExcel training/competition model from the 2017 Financial Modeling World Championshipsmodelcash flowcashexcelcompetiton65add_shopping_cartfreeby ModelOff
10 Years Financial Forecast and Valuation Excel ModelThree statement financial model to forecast the Company's P&L account, BS, Cash Flow and Company's Valuationincome statementvaluationcash flowfinancial modelbalance sheet662add_shopping_cart$40.00by Jair Almeida
Excel Custom Format Cheat SheetTeaching you how to do excel custom format so that you're able to improve your spreadsheets with handy tips and tricks.excelspreadsheetcustom formattips and tricks274add_shopping_cartfreeby Alexander Jarvis
KPI Excel Dashboard ModelThis financial KPI dashboard displays a range of organisational metrics (actual v plan) in a clear succinct summary.financialbudgetactualdashboardkpi3,786add_shopping_cart$99.00by Marcus Small
Any questions on Real Estate Proforma Excel Model Template?
The user community and author are here to help. Go ahead!