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Residential, living and flexible space

Retirement village financial model, built free.

A three-statement Excel model for a retirement village owner-operator, 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

Owns and operates retirement villages where residents pay an ingoing contribution (held as a resident loan) and, when they leave, the operator keeps a deferred management fee and often a share of the capital gain, recycling units through resales and developing new units whose first sale funds the build.

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
Retirement village sample model.xlsx
The Summary sheet of the sample retirement village 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 retirement village.

  1. How it earns revenue3 formulas
    Rental income · All properties
    Gross rental incomeLettable area (units × average size)from property registerRent rateOccupancyshare of the year
    Outgoings recoveries · All properties
    Service fees billedOccupied unitsVacated units still paying (post-exit period)Service fee per unit a weekDays in period
    Acquisitions, disposals and capital recycling · Across the business
    Payments for acquisitions (including costs)Purchase price of properties acquiredStamp duty and acquisition costs
  2. What drives its costs3 formulas
    Property operating costs · All properties
    Property operating costsGross rental incomefrom rental incomeOperating costs as % of rental income
    Tenant receivables, bad debts and deposits
    Rent received in advanceAnnualised gross rentRent paid in advance
    Tenant receivables, bad debts and deposits
    Tenant receivables (arrears)Tenant billings (rent, recoveries and other income)Tenant arrearsDays in period
  3. What it invests in3 formulas
    Capital expenditure · All properties
    Capital expenditureTurn capexRecurring replacement capexRenovation capex on acquired homes
    Valuation · All properties
    Fair value movementOpening valueCapital growthshare of the year
    Valuation · All properties
    Closing valueOpening valueCapital expenditurefrom capital expenditureFair value movement
  4. How it is funded3 formulas
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
    Equity raising
    Equity raisedDistributions reinvested under the DRPOther equity raised (net of costs)Equity from an offer, milestone funding, conversions and creditor shares
  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

28 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
  • Equity raisingDistribution reinvestment plan
  • 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
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Covenant tests and headroomLVR, gearing and ICR for property
  • Discount rate (WACC)CAPM at target gearing
  • Tenant receivables, bad debts and depositsRent received in advanceRent 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 recyclingNamed acquisitions and disposalsProperties 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 registerUnit-based register (apartments, beds, rooms, storage units)The facts every other part of the model builds on — size, units, ownership share and opening value.
  • Rental incomePassing rent × occupancyBase rent earned from tenants and the occupancy that drives it.
  • Property operating costsOperating costs as % of rental incomeOutgoings 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 expenditureTurn and renovation capex per unitMaintenance, refurbishment and development spend added to the property's value.
  • ValuationValuation growth rateOpening and closing property value and the fair value movement between them.
  • Outgoings recoveriesResident service fees against the village budgetProperty operating costs recharged to tenants under net and semi-gross leases.
  • Resident turnover and resalesUnits × turnover rate × current entry priceHow many units turn over each year as residents leave, how long they take to resell, and the price achieved on each resale.
  • Deferred management fee and capital gain shareDMF and capital gain share realised on exitThe operator's share of each exit — the deferred management fee accrued over the resident's tenure and any share of the capital gain — and when it is recognised.
  • Resident loans (ingoing contributions)Resident loan roll-forwardThe resident loan liability — ingoing contributions received from incoming residents, repaid to outgoing residents less the DMF and gain share when their unit is resold.
  • New village units (build to hold)New units per year × cost and entry priceNew units built in villages whose first sale creates a resident loan rather than revenue, with the development margin recognised as a fair value gain when units are completed and sold.
Key numbers

The numbers it tracks.

  1. 01units
  2. 02resales and turnover rate
  3. 03cash DMF and capital gain per resale
  4. 04embedded DMF
  5. 05resident loans
  6. 06development settlements
  7. 07NTA
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
  • Asset acquisition
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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.