30 - [R4] ProForma - Build-To-Rent

Summary

  • :bar_chart: ProForma Overview: Explains the ProForma report, covering project duration, lease-up period, stabilized rent, and post-construction operations. This report excludes the development ProForma and focuses on operational aspects.
  • :office: Key Metrics and Factors: Discusses metrics like cap rate, total built area, vacancy and credit loss percentages, and reversion values (end-sale valuation of properties). These figures are essential for project evaluation.
  • :chart_with_upwards_trend: Calculation Methods: Details two calculation methods for metrics like yield on cost and cap rate, ensuring consistent results.
  • :money_with_wings: Scenario Analysis: Analyzes scenarios such as stabilized operations, the first 12 months, and reversion stages to evaluate potential income and expenses.
  • :houses: Reversion Value: Highlights the importance of reversion values for properties, which are based on cap rates and provide insights into end-sale profitability.
  • :page_facing_up: Comprehensive Reporting: Includes operating income, potential income, other revenue, gross revenue, NOI (Net Operating Income), and more, broken down across scenarios for a complete financial picture.

Insights Based on Numbers

  • :1234: Pre-lease Percentage: A 20% pre-lease rate is combined with a lease-up pace of 10% to project complete lease-up dates.
  • :chart_with_downwards_trend: Cap Rate and NOI: Reports analyze scenarios where cap rates range from 6% to 15%, revealing how NOI impacts sale valuations and operational efficiency.
  • :building_construction: Stabilized Rent Analysis: Highlights rent stability timelines, showing how early stabilization improves financial outcomes.