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Banking and lending

Mortgage REIT financial model, built free.

A three-statement Excel model for a mortgage REIT, built from your own figures and checked to balance.

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  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Holds agency or credit mortgage-backed securities and whole loans funded with repurchase agreements and securitisations, earning the spread between asset yields and funding costs after hedging, and paying out most of its taxable income.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued three ways

    Discounted cash flow, trading multiples and net asset value, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.

Annual · 10 years · Low detail
Mortgage REIT sample model.xlsx
The How It Works sheet of the sample mortgage REIT model

The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.

How it works

How the model works for a mortgage REIT.

  1. How it earns revenue3 formulas
    Loan yield and interest income · All loan portfolios
    Interest incomeAverage gross loansPortfolio yield (base rate + margin)share of the year
    Warehouse and securitisation funding
    Warehouse interest and feesSenior interestMezzanine interestLine fees on undrawn limits
    Warehouse and securitisation funding
    Closing warehouse fundingClosing senior notesClosing mezzanine notes
  2. What drives its costs3 formulas
    Expected credit loss and write-offs · All loan portfolios
    Closing allowanceClosing gross loansfrom loan origination and runoffECL allowance coverage (% of gross loans)
    Expected credit loss and write-offs · All loan portfolios
    Credit loss expense (net write-offs + change in allowance)Write-offs (net of recoveries)Closing allowanceOpening allowance
    Expected credit loss and write-offs · All loan portfolios
    Write-offs (net of recoveries)Gross write-offsRecoveries
  3. How it is funded3 formulas
    Loan origination and runoff · All loan portfolios
    Closing gross loansOpening gross loansNew lending (settlements)Scheduled amortisationPrepayments and other runoff (including loans written off)
    Loan origination and runoff · All loan portfolios
    Net loans advanced (new lending less cash repayments)Closing gross loansOpening gross loansWrite-offs (net of recoveries)from expected credit loss and write-offs
    Equity raising
    Equity raisedDistributions reinvested under the DRPOther equity raised (net of costs)from net of costsEquity from an offer, milestone funding, conversions and creditor shares
  4. How profit becomes cash3 formulas
    Income tax
    Closing tax lossesOpening tax lossesLosses usedLosses added
    Income tax
    Income tax expenseTaxable profitCorporate tax rate
    Income tax
    Closing tax payableOpening tax payableIncome tax expenseTax paid
What it covers

18 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • Corporate costsFixed cost base indexed to CPI
  • Income taxCorporate rate with tax losses
  • Equity raisingDistribution reinvestment plan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Net asset valueBook net asset value
  • External manager feesIncentive fee over a hurdleBase and incentive fees paid to an external manager by listed investment companies, mortgage REITs, BDCs and other externally managed vehicles.
  • Interest-rate hedgingHedged share at a fixed rate
  • Warehouse and securitisation fundingWarehouse advance ratesNon-bank funding of the loan book through warehouse facilities, term securitisation and whole-loan sales, and its interest cost.
  • Lender and bank key metricsNIM bridge by driverNet interest margin, spread, cost-to-income ratio, loss rate and returns for banks and lenders, and their drivers.
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Case selectionStackable stress toggles
  • Interest-rate forecastMarket forward curve
  • CPI forecastCPI glide path
  • Loan origination and runoffOriginations less runoffGross loans rolled forward from new lending, scheduled repayments, prepayments and write-offs.
  • Loan yield and interest incomeBase rate plus marginInterest income earned on each portfolio from its yield, repricing and fees.
  • Expected credit loss and write-offsAllowance coverage and write-off rateCredit loss expense, the expected credit loss allowance held against loans, and write-offs.
Key numbers

The numbers it tracks.

  1. 01portfolio by asset type
  2. 02net interest spread
  3. 03leverage
  4. 04book value per share
  5. 05economic return
  6. 06dividend yield
  7. 07price to book
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
Related models

More in banking and lending.

Every financial services model

Looking for a mortgage REIT financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.