Gross reversion value in Property CF

  • Anonymous
    # 1 year, 4 months ago

    Dear Spencer,

    First of all, I really do appreciate your model. It is great help to build up real estate model from the beginning.
    As I looked up into the model, Unlevered CFdoesn’t sum up the gross reversion value.
    Doesn’t F64 has to be =sum(G64:xfd64)?
    Currently, the cell shows as follows.


    Spencer BurtonSpencer Burton
    # 1 year, 4 months ago

    Thanks for the comment. Row 64 on the Property CF tab simply outputs the Gross Reversion Value in the proper period. So the formula asks, is the current period the ‘Analysis End Month’, in which case if it is it outputs the Gross Reversion value. Otherwise, it outputs a 0. Cell F64 is the first formula in that sequence (time 0) and will always output 0 since time 0 can never be the analysis end month. You’ll notice that same formula is copied from there to the right out until the end of the total available periods (120).

    The Unlevered Cash Flow, in row 66, sums in each period the Cash Flow From Operation (row 61), Total Investment Costs (row 63), Gross Reversion Value (row 64), and Selling Costs @ Reversion (row 65) in each period.

    I think the confusion lies in what you understand cell F64 to be. It is not meant to sum the total Gross Reversion Value in the entire hold, but is one cell in a row that tracks when Gross Reversion Value occurs and then outputs it in the proper period.

    Hope that helps!

    # 1 year, 4 months ago

    Thank you for your kind reply! It really helped.

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