Real Estate Operating Statement
Dear all,
Could someone kindly confirm whether the following RE operating statement is correct:
RE Operating Statement:
Rental Income
+ Other income
= Potential gross income (PGI)
- Vacancy/Collection Loss
= Effective gross income (EGI)
- Operating expenses (maintenance, insurance, property taxes, security, utilities, management fee)
= Net operating income (NOI)
- CapEx
- Tenant improvements
- Leasing commissions
= Adjusted net operating income (ANOI)
- Interest expense
- Debt principal repayment
= Cash flow to equity holders
Have I missed anything? Likewise, have I included lines in the wrong place?
Any comments or thoughts would be great.
Many thanks,
Looks good, wouldn't change anything.
Not sure who told you to put it as 'ANOI' but usually I've seen that as Cash Flow Before Debt (CFBD) and then Cash Flow After Debt. Not the end of the world, but if you subtract any type of capital out, it's not really a NOI technically.
Agree. Either unlevered free cash flow or levered free cash flow.
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