Skenarios support

# Finance

- Peter Sundell
- Former user (Deleted)
- Former user (Deleted)

NetOverview of the most important features of the financial sector of the current portfolio is presented. The main figure is the estimated^{1} **Total income** of the present year, which consists of the expected lease incomes.

## Financial status

The total value and its ratio over gross floor area of the units in a portfolio is displayed for the following quantities.

**Stock value**: The sum of values of the units in a portfolio.

**Gross rental income per month**: **Total income** divided by 12 and its ratio over gross floor area of the units.

**CapEx*** =*Â SUM(A_{U}Â * R_{B}/ A_{G.} + R_{U}), where the sum is over all groups in a portfolio.

**OpEx*** =*Â SUM(A_{U}Â * M_{G}Â / A_{G.} + M_{U}), where the sum runs over all groups in a portfolio.

**NOI** = **Total income - OpEx - CapEx**

The value is presented in percentages for the quantities below.

**Gross initial yieldÂ **=Â **Total incomeÂ **/Â **Stock value**

**Net initial yieldÂ **=Â (**Total income - OpEx - CapEx)Â **/Â **Stock value**

** Internal rate of return (IRR): IRRÂ **is solved from equation SUM(C

_{t}* (1 + r)

^{-t}) = C, where the sum runs from t = 1 to t = 30, r isÂ

**IRR**, C

_{t}isÂ

**NOI**of the current year + t, and C isÂ

**Stock valueÂ**of the current year.

## Lease status

**Average days to lease**: For the present year and a portfolio, the average count of days between the end and start dates of two subsequent lease agreements.

**Tenant turnover**: For the present year and a portfolio, theÂ ratio of new leases and units.

## Estimated property value

The estimated history ofÂ **Stock value** on a monthly basis.

## Annual vacancy rate at daily basis

The past and the estimated^{1} future rate of vacant days in a year.

## Value of expiring leases

The value of the leases estimated^{2} to expire.

## Capex and income

The estimated future of **CapEx**^{3} and **Total income**^{1}**.**Â

- It is assumed in the estimation that all fixed term lease agreements hold and continuous leases will not be terminated during the estimation period.
- The estimation assumes the worst case scenario; a continuous lease expires today according to the first termination date and notice period duration (or today if these are not determined).
- SkenarioLabs estimations are used to assume renovations.

A_{U}Â = the sum of the areas of the units in a group.

_{RU}Â = the sum of unit renovation costs in a group.

R_{B}Â =Â the sum of building renovation costs in a group.

A_{G}Â = the gross floor area of a group.

M_{G}Â = the sum of group maintenance, which include administration, administration and maintenance, outdoor maintenance, cleaning, heating, cooling, electricity, water and wastewater, waste management, insurance, rent, property tax and minor repair costs.

M_{U}Â = the sum of unit maintenance costs in a group.

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