CRE Proforma input Data Purchased Real Estate Marginal Tax Bracket Depn Recapture Rate Capital Gain Rate Equity Hurdle Rate Depreciation Period Going Out Cap Rate Selling Expense 17-yr Building Improvement % 9.0% 7.0% 12% 25.0% 20.0% 12.5% 15.0% 39 Mortgage LTV Amort Term (Years) Maturity Years) Rate Points Prepay Penalty 1% Mortgage Amount Monthly Pmt Balance 120 Mo 75.0% 30 10 6.000% 2.25% 0.00% Purchase Price Acquisition Costs Land Value Initial Long term Bldg Basis Intial 7 yr Bldg Basis Initial Land Improve Basis Summary of Before Tax Cash Flows by Year 2 3 5 6 7 8 9 10 Ratio Analysis Operations Capital Total CF Before Tax IRR Before Tax NPV- Unlevered Return Cash on Cash Return Debt Coverage Ratio Vacancy Collection Loss Operating Expense Ratio Breakeven Occupancy Summary of After Tax Cash Flows by Year 0 2 3 5 6 7 8 9 10 Operations Capital Total CF After Tax IRR - After Tax NPV- Effective Tax Rate = 0 1 2. 3 5 6 7 8 9 10 11 Cash Flow From Operations Gross Potential Income - Vacancy & Collection = Effective Gross Income - Operating Expense = Net Operating Income - Mortgage Payment = Before Tax Cash Flow - Taxes = After Tax Cash Flow Income Taxes From Operations End of Year Loan Balance NOI +Capital Reserves - Interest Paid - Amortized Finance Costs 1 - Amortized Leasing Costs - Depreciation Building | - Depreciation (Bldg Impr 7-yr) Depreciation Land Impr 15-yr = Taxable income Taxes Due EOY 10 Gain on Sale Net Sales Price - Adjusted Basis = Gain on Sale Cash flow From Resale Estimated Sales Price ! - Sales Expense = Net Sales Price - Mortgage Payoff = Before Tax Equity Reversion i-Taxes on Sale = After Tax Equity Reversion Depn Recapture Capital Gain Deu Re:Tax Cap Gain Tax Total Tax on Sale CRE Proforma input Data Purchased Real Estate Marginal Tax Bracket Depn Recapture Rate Capital Gain Rate Equity Hurdle Rate Depreciation Period Going Out Cap Rate Selling Expense 17-yr Building Improvement % 9.0% 7.0% 12% 25.0% 20.0% 12.5% 15.0% 39 Mortgage LTV Amort Term (Years) Maturity Years) Rate Points Prepay Penalty 1% Mortgage Amount Monthly Pmt Balance 120 Mo 75.0% 30 10 6.000% 2.25% 0.00% Purchase Price Acquisition Costs Land Value Initial Long term Bldg Basis Intial 7 yr Bldg Basis Initial Land Improve Basis Summary of Before Tax Cash Flows by Year 2 3 5 6 7 8 9 10 Ratio Analysis Operations Capital Total CF Before Tax IRR Before Tax NPV- Unlevered Return Cash on Cash Return Debt Coverage Ratio Vacancy Collection Loss Operating Expense Ratio Breakeven Occupancy Summary of After Tax Cash Flows by Year 0 2 3 5 6 7 8 9 10 Operations Capital Total CF After Tax IRR - After Tax NPV- Effective Tax Rate = 0 1 2. 3 5 6 7 8 9 10 11 Cash Flow From Operations Gross Potential Income - Vacancy & Collection = Effective Gross Income - Operating Expense = Net Operating Income - Mortgage Payment = Before Tax Cash Flow - Taxes = After Tax Cash Flow Income Taxes From Operations End of Year Loan Balance NOI +Capital Reserves - Interest Paid - Amortized Finance Costs 1 - Amortized Leasing Costs - Depreciation Building | - Depreciation (Bldg Impr 7-yr) Depreciation Land Impr 15-yr = Taxable income Taxes Due EOY 10 Gain on Sale Net Sales Price - Adjusted Basis = Gain on Sale Cash flow From Resale Estimated Sales Price ! - Sales Expense = Net Sales Price - Mortgage Payoff = Before Tax Equity Reversion i-Taxes on Sale = After Tax Equity Reversion Depn Recapture Capital Gain Deu Re:Tax Cap Gain Tax Total Tax on Sale