Proforma Income Statements

Reports a complete income statement for 1 to 99 years, depending on the chosen holding period. Shows Income, Reimbursements, Expenses, NOI, Debt Service, Capital Expenditures, Before Tax Cash Flow, After Tax Cash Flow, and Sale Proceeds.. Then computes Capitalization Rate, Cash on Cash, Gross Income Multiple, Debt Coverage Ratio, Breakeven Occupancy, Loan Balance/Property Value, NOI/Property Value, Gross Income Multiple, Operating Expense Ratio, Internal Rate of Return (IRR), and Net Present Value (NPV) before and after tax for each of the years. Also shows Common Size and $/SquareFoot Reports. These reports may be configured in more than 5,000 variations by setting the list and checkboxes below the report on screen. MILLIONS of user configurable graphs are available here by adding the Graphics Extension.

This function allows you to produce ProForma Income Statements and, if you have the optional Graphics Extension, graphs of the information in the statements. These statements combine the Basic and Detail Analysis report information into a very readable format familiar to real estate professionals and accountants. Further, the reports offer information not shown in the Basic and Detail Analysis Reports, such as Ratio Analysis, projected Sale Proceeds by year, and Return and NPV measures by year, as well as a Common Size Statement and a Dollars/Square Foot or Dollars/Unit Statement.

Monthly and Quarterly ProForma Statements may be produced if you have purchased the optional Monthly Extension. Monthly and Quarterly Statements are in the same format, but do not show information beyond Cash Flow After Tax. That is, these reports do not have Sale Proceeds, Ratio Analysis or Analysis Measure sections.

Before Tax Analysis is facilitated by the After Tax Results switch (discussed below) which allows you to eliminate (or add), with one click, all tax considerations in these reports.

Appraisal versions of the Income Statements may be obtained by entering a zero Price of Property (and zero Closing Costs) for a property and turning off the Return Measures switch discussed below, The resulting Proforma Income Statements eliminate all ratios depending on Acquisition Price and show only Present Values of the projected future income and reversion as an appraiser would want.

Development versions of the Income Statements are facilitated by the detailed Capital Spending section which follows the Net Operating Income report line if any Capital Spending has been planned (Depreciation Assumption pages with Depreciation Start Dates after the Date of Acquisition). A Debt Draw and Repay section following the Net Operating Income report line is added if any loan is drawn down or repaid during the Holding Period, so this section will be shown if there is any refinancing, as is typical for development projects.



All detail lines in these reports are checked, before display, to see if any non-zero values are shown during the projected Holding Period. Lines which are all zeroes are suppressed from display, so changing the Annual Expense or Annual Revenue assumption value to zero for an item automatically eliminates it from the reports without your having to delete the entire assumption page.

The Statement of Income Specifications are the controls (checkboxes and listboxes) displayed at the bottom of the screen when you are viewing your Income Statements. These control settings determine how your ProForma Income Statements are displayed. The settings are saved when you save the Assumption Set, so if you set up a property for an appraisal report format (and subsequently save the Assumption Set), the default report settings will be in the same configuration when you recall the Assumption Set in future sessions.

Income may be set to Detail or Total. Detail lists each income individually, with Total Gross Income shown at the end. Total simply shows the Total Gross Income, with no detail. If there are reimbursements, and you have chosen to show them separately rather than included in lease revenues, there will be a separate line for the reimbursements and a checkbox for "Show Reimbursement Detail" which will expand the reimbursements to show each reimbursed expense.

Expenses may be set to Detail or Total.. Detail lists each expense individually, with Total Expenses shown at the end. Total simply shows the Total Expenses, with no detail. Expenses which are zero throughout the projected period are not shown.  Loans may be set to Detail, Detail/AT, Total or None. Detail lists each loan individually. Detail/AT adds tax details for each loan, including interest payments and amortized points sections in the tax section, if they apply and are not zero. Total shows only the Total Debt Service with no detail after tax, and None eliminates all Loans from the reports. If you specify None for this option, After Tax is automatically unchecked because the tax calculations would be incorrect if the loan information were not included.

Assets may be set to Detail, Detail/AT, Total or None. Detail lists each asset individually. Detail/AT adds tax details for each asset, including depreciation and tax credits sections in the tax section, if they apply and are not zero. Total shows only the Total Capital Spending, Depreciation, and Tax Credits (if any) None eliminates all Assets from the reports. If you specify None for this option, After Tax is automatically unchecked because the tax calculations would be incorrect if the assets were not included.

After Tax may be checked or not. If Debt Service or Assets are set to None, this is automatically unchecked. If checked, the After Tax section of the report is printed. If unchecked, all tax information is suppressed, including, for instance, ratios depending on tax information and after tax measures. Uncheck this switch for Before Tax Analyses. This setting also controls whether the Property Sale Report shows After Tax Calculations. This Specification only applies to the ProForma Income Statement, and does not affect the Common Size or Square Footage Statements.

Sale Proceeds may be checked or not. If checked, the section showing the Sale Proceeds is shown. If unchecked, that section is suppressed, as are the Ratios that depend on use of the Sale Proceeds. The Sale Prices are computed as of the end of the Calendar (or Fiscal) Year, so they will be different from the results of a Holding Period Sensitivity Analysis unless that analysis is set up to vary the Holding Period values at calendar year-end. This Specification only applies to the ProForma Income Statement, and does not affect the Common Size or Square Footage Statements.

Show Ratios may be checked or not. If checked, the section showing the Ratio Analysis is shown. If unchecked, that section is suppressed. Only ratios that can be computed from displayed information are shown. For example, if there is no Debt Service shown, no debt coverage ratio will be shown. This Specification only applies to the ProForma Income Statement, and does not affect the Common Size or Square Footage Statements.

Show Returns may be checked or not. If checked, the section showing the Rates of Return is shown. If unchecked, that section is suppressed. Unchecking is appropriate if no property price is input, as for appraisal reports. If checked, only IRR's and MIRR's that can be computed from displayed information are shown. For example, if After Tax Results is unchecked, the IRR or MIRR After Tax is not displayed. This Specification only applies to the ProForma Income Statement, and does not affect the Common Size or Square Footage Statements.

Show NPV's may be checked or not. If checked, the section showing the Net Present Values is shown. If unchecked, that section is suppressed. If no Property Price or closing costs are input, this shows the PV of future cash flows, which is useful for Appraisal Reports. If checked, only NPV's that can be computed from displayed information are shown. For example, if After Tax Results is unchecked, the NPV After Tax is not displayed. This Specification only applies to the ProForma Income Statement, and does not affect the Common Size or Square Footage Statements.

The screen below shows an example of the Dollars/Unit Income Statement referenced above. The number of units of the particular type (10 and 32 here) is used as the divisor for the unit revenues, whereas the total of 42 Units is used as the divisor for the expenses.



The screen below shows an example of the Common Size Income Statement referenced above. Either Total Gross Income (as shown here) or Effective Income can be set to be 100% for this report.



Report/Graph Button, which is available if you have purchased the Graphics Extension, alternates between Report and Graph allowing you to view either the report or graphs of the information in the report. The graphs offered depend on the control settings for the corresponding report. For instance, if Income is set to Detail, the Graphs offered include Gross Income Detail, but if Income is set to Total, the Graphs offered include Gross Income (in total). Likewise, if After Tax is turned off, the Graphs offered do not include any After Tax Ratios, etc.




Below planEASe Graphs are the Graph Controls. These controls allow you to customize the graph appearance to your specifications, as described below. In addition, you may print, edit and export planEASe graphs.

• Graph allows you to choose between 9 different graph types for your data
• 3D adds an attractive three dimensional effect to the graph.
• Color specifies the first (bottom) color shown.
• Gridlines allows you to set grid lines to Horizontal, Vertical, None or Both.
• Font controls the typeface used to display the graph labels and numbers.
• #’s lets you include the numeric values inside the graph.
• Data allows you to choose between various available graphs.

Graph Additions/Overlay

In addition to the capabilities described above, the Graphics Extension adds the capability to add two or more graphed items within the same graph, and overlay another graphed item within that same graph when using the Graphics Extension in the Income Statements, as shown in the screen below.

 

In order to support the Graph Additions/Overlay capability, two new Drop-down Lists (Add and Overlay) have been added below the normal graph controls, as shown in this screen. This screen shows Net Operating Income with Debt Service added and the Debt Coverage Ratio overlaid. To construct this graph, the user first chose Net Operating Income from the Data Drop-down List, then added Debt Service from the Add Drop-down List (you may choose as many additions from this list as you want). The list of items that may be added includes all major items available in the report with the same unit of measure as the item chosen from the Data Drop-down List. In this case, the unit of measure for Net Operating Income is $K, so the Add Drop-down List includes all items measured in $K, but no ratios or IRR’s since they are percentages. If you are displaying a Detail Graph (one with the word "detail" in the title) neither the Add or Overlay Drop-down list will be available.

Finally, the user chose the Debt Coverage Ratio from the Overlay Drop-down List (only one Overlay may be chosen, it is always shown as a line, and it must be chosen last, after all additions). If the item overlaid has the same unit of measure as the underlying data and additions, there is no right-side scale added. In this case, however, the unit of measure for the Debt Coverage Ratio is Times, so a right-side scale is added for Times.

Overlays are not compatible with the 3D effect, so that is turned off automatically when an Overlay variable is chosen. You may turn the 3D effect back on, but the Overlay Line will disappear while the graph is displayed with the 3D effect on. 

There is a Undo button located at the bottom of the graph window that becomes available when you have chosen to add to or overlay a graph. Pressing this button reverses the last add or overlay chosen, pressing it twice in this case would first remove the Debt Coverage Ratio overlay and then remove the Debt Service addition to restore the starting Net Operating Income graph.

Graph Overlays and Additions are available in the Quarterly and Monthly period views as well as Yearly, if you have the optional Monthly Extension. They are available in the Common Size and Square Feet / Unit Statements as well. Graphs with Additions and Overlays may be edited by double-clicking on them just as the other planEASe graphs may be.

Reports a complete income statement for 1 to 99 years, depending on the chosen holding period. Shows Income, Reimbursements, Expenses, NOI, Debt Service, Capital Expenditures, Before Tax Cash Flow, After Tax Cash Flow, and Sale Proceeds.. Then computes Capitalization Rate, Cash on Cash, Gross Income Multiple, Debt Coverage Ratio, Breakeven Occupancy, Loan Balance/Property Value, NOI/Property Value, Gross Income Multiple, Operating Expense Ratio, Internal Rate of Return (IRR), and Net Present Value (NPV) before and after tax for each of the years. Also shows Common Size and $/SquareFoot Reports. These reports may be configured in more than 5,000 variations by setting the list and checkboxes below the report on screen. MILLIONS of user configurable graphs are available here by adding the Graphics Extension.