Norway-Florida Fund Proforma Income Statement

Posted by Joe Manausa on Sunday, March 7th, 2010 at 12:06am.

Norway-Florida Fund Proforma Income Statement

This Statement is for the Norway-Florida Fund as acquired on 1 June 2010 for a Price of $915,000, subject to a Loan of $457,500, for a Down Payment of $457,500. For the sake of conservative estimates, rents do not begin until 9/1/2010.

7 Months 2010 2011 2012 2013 2014 2015 2016 5.00 Months 2017
Gross Income
Revenue $33,600 $101,136 $102,147 $103,169 $104,201 $105,243 $106,295 $44,584
Total Gross Income $33,600 $101,136 $102,147 $103,169 $104,201 $105,243 $106,295 $44,584
Less: Vacancy & Credit Loss 2,688 8,091 8,172 8,254 8,336 8,419 8,504 3,567
Effective Income $30,912 $93,045 $93,976 $94,915 $95,864 $96,823 $97,791 $41,017
Less: Operating Expenses
All Non-Management Expenses 12,365 37,218 37,590 37,966 38,346 38,729 39,117 16,407
Management Fee 3,400 10,235 10,337 10,441 10,545 10,651 10,757 4,512
Total Operating Expenses $15,765 $47,453 $47,928 $48,407 $48,891 $49,380 $49,874 $20,919
Net Operating Income $15,147 $45,592 $46,048 $46,509 $46,974 $47,443 $47,918 $20,098
Less: Debt Service
Loan 18,681 32,025 32,025 32,025 32,025 32,025 32,025 13,344
Total Debt Service $18,681 $32,025 $32,025 $32,025 $32,025 $32,025 $32,025 $13,344
Net Operating Cash Flow ($3,534) $13,567 $14,023 $14,484 $14,949 $15,418 $15,893 $6,755
Sale Proceeds:
Sale Value $0 $2,000,545 $2,000,545 $2,000,545 $2,000,545 $2,000,545 $2,000,545 $2,000,545
Less: Sale Costs (8%) 0 160,044 160,044 160,044 160,044 160,044 160,044 160,044
Less: Loan Repayment 0 457,500 457,500 457,500 457,500 457,500 457,500 457,500
Sale Proceeds Before Tax 0 1,383,001 1,383,001 1,383,001 1,383,001 1,383,001 1,383,001 1,383,001
Ratio Analysis:
Profitability Ratios
Capitalization Rate 2.84% 4.98% 5.03% 5.08% 5.13% 5.19% 5.24% 5.27%
Cash on Cash Before Tax (1.27%) 2.85% 2.95% 3.04% 3.14% 3.24% 3.34% 3.41%
Accounting RoR Before Tax 2.85% 2.95% 3.04% 3.14% 3.24% 3.34%
Current RoR Before Tax 0.98% 1.01% 1.05% 1.08% 1.11% 1.15%
Risk Ratios
Debt Coverage Ratio 0.811 1.424 1.438 1.452 1.467 1.481 1.496 1.506
Breakeven Occupancy 102.5% 78.6% 78.3% 78.0% 77.7% 77.3% 77.0% 76.8%
Loan Balance/Property Value 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9%
Assumption Ratios
NOI/Property Value 2.28% 2.30% 2.32% 2.35% 2.37% 2.40% 2.41%
Gross Income Multiple 19.78 19.58 19.39 19.20 19.01 18.82
Operating Expense Ratio 46.9% 46.9% 46.9% 46.9% 46.9% 46.9% 46.9% 46.9%
Analysis Measures:
IRR Before Debt 58.0% 34.2% 24.9% 19.9% 16.9% 14.8% 14.1%
IRR Before Tax 96.9% 52.5% 36.3% 27.9% 22.8% 19.4% 18.3%
NPV Before Debt @12.00% $659,672 $531,245 $416,904 $315,106 $224,480 $143,801 $112,855
NPV Before Tax @12.00% $688,403 $575,640 $475,283 $385,971 $306,493 $235,768 $208,647
Risk Analysis Proforma Income Statement Assumptions Page
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Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

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