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Property investment and REITs

Property investment company financial model, built free.

A three-statement Excel model for a private property investor or investment company, built from your own figures and checked to balance.

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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

A privately owned, taxable company, trust or family office holding one or a few commercial or residential investment properties funded with bank debt, where the model supports refinancing, acquisitions, sales and tax.

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 two ways

    Discounted cash flow 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, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Property investment company sample model.xlsx
The Summary sheet of the sample property investment company model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a property investment company.

  1. How it earns revenue3 formulas
    Rental income · All properties
    Gross rental incomeLettable units or bedsMarket rent per unit per weekWeeks let per yearOccupancy (market-let units)share of the year
    Outgoings recoveries · All properties
    Outgoings recoveriesProperty operating costsfrom property operating costsRecoverable share of operating costsOccupancy (market-let units)
    Other property income · All properties
    Car park incomeAverage occupied baysAverage rate per occupied bay per dayPaid days a yearshare of the year
  2. What drives its costs2 formulas
    Property operating costs · All properties
    Property operating costsStatutory charges (rates and land tax)Insurance, cleaning, security, repairs and utilitiesProperty management fee
    Tenant receivables, bad debts and deposits
    Tenant receivablesTenant billings (rent, recoveries and other income)Tenant arrearsDays in period
  3. What it invests in1 formula
    Valuation · All properties
    Closing valueOpening valueMaintenance capex (capital expenditure)from capital expenditureFair value movement
  4. How it is funded3 formulas
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
    Dividends and distributions
    Closing distributions payableOpening distributions payableDistributions declaredDistributions paid
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

31 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.

  • CPI forecastCPI glide path
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalDays-based working capital
  • Income taxFlow-through entity (no entity tax)
  • DebtSingle debt facility
  • Dividends and distributionsPayout of FFO
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Net asset valueBook net asset value
  • Interest-rate hedgingHedged share at a fixed rate
  • Purchase price and acquisition costsAgreed price plus costs
  • Hold-period cash flowsAsset-level NOI less capex
  • Exit value and exit costsTerminal capitalisation rate
  • Investment returnsIRR, equity multiple and cash-on-cash
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Debt capacityLoan-to-value capacity
  • Maturity profile and refinancing riskMaturity wall and WADM
  • Discount rate (WACC)CAPM at target gearing
  • Tenant receivables, bad debts and depositsArrears days and bad debt %Rent arrears and bad debts, rent received in advance, and security deposits or bonds held for tenants — the property-specific working-capital balances.
  • REIT metrics (FFO, AFFO, NTA, gearing)FFO and AFFO (Property Council of Australia)The earnings, balance-sheet and portfolio metrics investors use for property owners — FFO and AFFO, NTA per unit, gearing and covenant headroom, WALE and occupancy, like-for-like growth and rent cover.
  • Acquisitions, disposals and capital recyclingProgrammatic acquisitions per unitProperties bought and sold during the forecast — named transactions, generic acquisitions at an assumed yield, and disposals that recycle capital — with transaction costs and gains or losses on sale.
  • Interest-rate forecastFlat base rate
  • Property registerThe facts every other part of the model builds on — size, units, ownership share and opening value.
  • Rental incomeUnits × weekly rent × occupancyBase rent earned from tenants and the occupancy that drives it.
  • Property operating costsOutgoings budget by line itemOutgoings and other costs of running the property (rates, land tax, insurance, cleaning, security, repairs, management).
  • Net property incomeFull income waterfallProperty-level income less property operating costs.
  • Capital expenditureMaintenance capex as % of valueMaintenance, refurbishment and development spend added to the property's value.
  • ValuationCapitalisation-rate valuation (fair value)Opening and closing property value and the fair value movement between them.
  • Outgoings recoveriesFull recovery (triple net)Property operating costs recharged to tenants under net and semi-gross leases.
  • Other property incomeCar park bays × rate × utilisationCar park, turnover rent, amenity fees, storage ancillaries and other income earned at the property.
  • Lease incentives, leasing costs and straight-liningLeasing fees as % of first-year rentCash incentives, rent-free periods and leasing fees paid to secure tenants, and the non-cash adjustments that turn cash rent into statutory rent (incentive amortisation and straight-lining of fixed reviews).
Key numbers

The numbers it tracks.

  1. 01net rental income
  2. 02LVR
  3. 03ICR
  4. 04debt capacity
  5. 05cash yield
  6. 06after-tax cash flow
  7. 07equity value
Used for

What it is used for.

Also used for
  • Asset acquisition
  • Scenarios and sensitivities
Related models

More in property investment and REITs.

Every real estate model

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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.