| Operating Cash Flows | 1 | 2 | 3 | 4 | 5 | 6 |
| PGI |
| V&C | Note: Considering that the lease includes expense recoveries for the landlord, you can either a) add the 75% expenses recovered from tenants to the other income to get the PGI and then deduct the full (100%) operating expenses as OE or b) only deduct the 25% of operating expenses covered by the landlord as OE. The net effect is the same. |
| EGI |
| OE |
| NOI | Note: Make an assumption on whether the capital expenses should be above or below the NOI. You may put the non-operating expenses in a separate row below the OE to be accounted for when calculating the NOI. |
| DS |
| BTCF |
| Tax |
| ATCF |
| Tax liability |
| NOI |
| Depreciation | Note: Depreciation is based on the building value as a percentage of purchase price. Mid-year convention in year of purchase and sale (half depreciation amount). |
| Interest | Note: Use either payment schedule or =CUMIPMT function in Excel to determine interest payments in a year. |
| Taxable income |
| Tax |
| Equity reversion | | Capital Gains Tax |
| Sales price | | NSP |
| Selling costs | | Adjusted basis | | Note: Adjusted basis is the difference between purchase price and accumulated depreciation. |
| NSP | | Taxable income |
| Mortgage balance | | CGT |
| BTER |
| CGT |
| ATER |
| Discounted Cash Flow Analysis (DCF) |
| | 0 | 1 | 2 | 3 | 4 | 5 |
| ATCF |
| ATER |
| Initial equity investment |
| Total CF |
Gatillo1
outline_dcf.xlsx
