Description

Real Estate Leasing Model 

Real Estate Leasing Excel Financial Model offers the financial analysis of existing and new investments in property leasing. This model is ideal for the business which wants to finance and subsequently lease the constructed units, either residential or non-residential. This model consists of three financial statements: Monthly Income Statement, Yearly Income Statement, Balance Sheet, and Cashflow Statement. Along with the decision-making tools such as; Break-Even Analysis, Project Valuation, Diagnostic Tools, Startup Summary, and various Charts & Graphs.  

How to Use Real Estate Leasing Model

A brief overview of the Real Estate Leasing Excel Financial Model will start from the Input section, where the project-related inputs are specified. 

 In the Input sheet, the financial assumptions and the inputs necessary to compute the model are stated, such as investment funding sources, income sources, and expenses. Input cells are permanently colored Peach to help users identify quickly. Similarly, other cells such as call up (direct links from other cells) are filled in grey with black letters, while calculations are in white fill and black characters.

The assumptions are related to the projections of the fixed and variable expenses in the operational expense sheet. The data here is all defined and hard-coded, altering later on if desired.

In the Break-Even analysis, investors can identify the contribution margin. Which highlights the product through which the sales are coming.

In the Revenue Model, data for all the Revenue Assumptions along with the costs shows. Thus, it provides a base for developing projections of Performa Templates. Based on the set of revenue assumptions, Profit & Loss Sheets are presented monthly and yearly for up to 5 years. Then, all the fixed and variable expenses minus ascertain the Net earnings of that particular year or month.

The Cash Flow Statement tab shows the cash flows from various sources. Operating Cash Flow from this sheet goes to the Project Valuation sheet. In the Project Valuation sheet, free cash flow to the firm equals discounting future Cash Flow at the discount rate.

The Dashboard tab shows the graphical representation of multiple ratios and analysis for quick overview and decision making. 

Key Inputs of Real Estate Leasing Excel Financial Model

1. Investment Sources
2. Lease term Assumptions
3. Financing Assumptions
4. Debt-Cost Ratio
5. Lease taxes and Charges 
6. Unit Cost
7. Cashflow Assumptions
8. Operational Expense

 Key Features of Real Estate Leasing Excel Financial Model

Input Sheet

The Input Sheet specifies all the required inputs necessary to compute three financial statements. Investment inflows for a starting business are critical since only a few options are at the desk for a startup firm, keeping the limited availability of funding sources in mind. This model offers three investment input sources: private equity, financing, and equity investment from a 3rd party investor. This mix yields the best outcomes for financial valuation where equity and debt holders share the benefits and risks of their investment.

The owner/investor needs to define the investment funding source, Debt-Cost ratio details. Second, the leasing model specification; by stating lease terms, lease constant, money factor, and lease payment per month. Lease payment equals lease constant multiplied by total capitalized cost. Finally, total capitalized cost equals adding up all property capitalized prices, insurance premiums, acquisition fees, and any related taxes.  Real Estate Lease Excel Financial Model primarily focuses on all sorts of property leasing. 

This financial model template contains inputs that, when changed, impact the calculations and, therefore, it changes all relevant sheets. As a result, this financial model always has built-in flexibility to display different outcomes or final estimates based on this sheet’s changes.

 

Operating Expense

The operational expense sheet is 2nd one in the row, which entails all expected recurring and non-recurring expenditures, which the owner must account for while starting the business. It starts with employees’ and consultant’s overhead costs.  Apart from a fixed salary, employees benefit worker compensation provision is there so that users don’t have to look around for additional payroll expenses, which arise from time to time. The model also incorporates expected cash outflows caused by hiring advisors/ consultants to revamp business strategy. 

Startup Summary

A start-up summary tab includes the total cost incurred at the start of business and capital expenditure, how much cash injected by the company so far, and the number of months the Templateinvestment required.

A Startup Summary helps you take a realistic view of your idea and double-check whether the business has enough funds to support operations.

 

 Monthly & Yearly Income Statement

The Real Estate Lease Excel Financial Model provides the monthly and yearly income statement structure and a framework for creating a full corporate forecasting model tailored to your particular business.

A vital feature of the Real Estate Leasing Excel Financial Model is that it is “integrated,” which means that the Income Statement accurately captures the connection and inter-linkages of the various line business items. An integrated financial model is powerful since it enables the Financial Model user to change any assumption in one part of the statement to see how it impacts investors template other parts accurately and consistently.

The monthly Income Statement sheet of the Real Estate Leasing Excel Financial Model Template is suitable for those who require regular reporting and details. Additionally, Income Statement contains all revenue streamlines with gross earnings, net earnings linked with a revenue analysis sheet to ensure accurate reporting. Oak Business Consultants understands every business’s goal. Therefore, we have developed a mechanism that helps business owners determine whether they are making profits or otherwise.

Furthermore, the Yearly Income Statement gives you complete insights into revenue and general & administrative expenses. The Yearly Income Statement also contains several graphs, assumptions, ratios, margins, net profit, earnings, cost of services, and profit after tax.

 Balance Sheet

This balance sheet enables you to analyze your position of current assets, fixed assets, liabilities, and equity. It also allows you to monitor your accounts receivable, accounts payable, accrued expenses, etc. Therefore this specific, financial model gives you the perfect space to analyze your critical financial balance accounts.

 

CashFlow

The Cash Flow Statement is the vital part of the three statements that report the cash spent and generated during a specific period. The Cash Flow Statements connect cash rotation between the income statement and balance sheet.

Three main sections of Cashflow Statement:

1. Operating Activities: We have included all cash in and out related to the operations of the business
2. Investing Activities: Any cash from the disposal of an asset and acquisition and investments appear in this section linked to the inputs and fixed asset tab.
3. Financing Activities: We have separately made a loan-related tab where you can enter all loan-related information thee. The tab connects to Financing Activities of Cashflow Statement.

The Cashflow Statement in our Model contains a dedicated sheet to monitor and analyze your company cash-ins and out. This cash flow statement relies on several key inputs, such as Payable and Receivable Days, yearly income, working capital, long-term debt, net cash, etc. This calculation then computes your net cash flow, beginning and end cash balances. It’s a perfect template for your company’s cash flow management.

 

Break-Even Analysis of Real Estate Leasing Excel Financial Model

A break-even analysis can help you measure how different scenarios might play out financially. For example, if you increase the marketing budget or add another employee to the payroll, how many extra sales will recover that additional expense?

We have included a Break-even analysis in our Financial Model, which will help the user determine sales. The break-even analysis will help you know at a glance the profits generated at the various sales levels. The Break-Even Analysis refers to the point where your total sales contribution refers to fixed cost at zero profit and loss. This Technique consists of marginal costing, which behaves differently at various levels of output activity.

Project Evaluation

The project valuation sheet is critical because it gives the directional strategy to an investor either the project should be investing in or not? This sheet is fully linked to all financial statements projected earlier and asks for little input from the user. WACC, the weighted average cost of capital, is discretionary and needs to be put in by the investor itself, keeping in view all equity and debt holders’ costs. The initial investment is the total project cost that the user has added to the input sheet. Equity and debt values in that project investment amount took from loan-value ratios, which the user defines in the input sheet.

The terminal growth rate is the rate that users foresee a business may earn after a five-year forecast. This rate is hardcoded by the user, keeping in view a specific industry, country, and region in mind. The sole purpose of the project valuation sheet is to use the DCF model to discount back all future expected cash flows of the firm at a discount rate or WACC (set by user). Then determine the NPV/ free cash flows to the firm (both equity and debt holders) so that investors can see if the project has positive or negative net cash flows. Next, the debt/ loan amount is minus to arrive at free cash flows to equity holders. Finally,  IRR equals IRR function to see if the project’s IRR is greater than or less than the discount rate.    

 

Diagnostic Sheet of Real Estate Leasing Excel Financial Model

The diagnostic tool sheet again is a compact pitch book for fund generation marketing strategy. Here probable investors can quickly analyze and access profit margins, cash flows, and break-even metrics to decide. For example, suppose to invest in this business or not. All the outcomes of the dashboard and diagnostic tool sheets require no user interference. Thus saving time and cost for the business owner. In addition, this Diagnostic sheet automatically calculates the data such as the Profitability ratio, Net operating expense. That will provide financial commentary about the company’s financials.

Dashboard of Real Estate Leasing Excel Financial Model

Users and readers respond and process visual graphs better than data. The dashboard provides you a graphical management tool that helps track all your relevant financial KPIs. It also Improves cash flow management and net revenue. To meet and outperform the financial objectives of your business.

 

Benefits of Real Estate Leasing Excel Financial Model

Enhance Company Performance- The Real Estate Lease Excel Financial Model analysis simplifies a company’s financial statements. It allows the user to express critical profitability and financial position information in just a few numbers. For example, the company’s net profit margin encapsulates the net effect of a company’s revenues and all expenses. Thus, it will enable the user to conclude a company’s profitability without going through lengthy accounts statements.

Bottom Line – A Real Estate Lease Excel Financial Model can be the key to your company’s better and informed future. Succeeding to plan your Company’s finances well will mean overall success in making wise investment decisions, purchasing the right operating assets, control costs, and determining company valuation.

Accommodates Investors – Real Estate Lease Excel Financial Model provides valuation and performance analysis charts. It enables the investors and banks to determine the company’s worth considering lending funds to your company.

Based on Financial Principles – We did in-depth research on Real Estate Leasing Excel Financial Model. So this financial model has been created with logically correct financial and economic principles and assumptions.

Properly Integrated – The model assumptions and calculations are correlated. So the change in the main sheet will automatically lead to the change in all related sheets easily.

Visualization Tool – This Financial model also prepares a clear communication of the quantitative outcomes, as obtained by calculations via various graphs and charts. Therefore, the user does not need to pay much attention to the financial model’s inner workings.

This Product Includes: 1 Excel File