Calculation Guide Estate Master DF Tenancy Schedule. September 2013

Transcription

1 Calculatin Guide Estate Master DF Tenancy Schedule September 2013

2 Table f Cntents Tenancy Schedule Outgings and Vacancies Ttal Per Annum Escalated Rent at Lease Start Letting Fee Ttal Amunt Current Net Annual Rent Current End Sale Value

3 Intrductin Estate Master has put tgether this dcument t assist yu with wrking thrugh the different calculatins that appear n the Tenants wrksheet within the Estate Master DF (Develpment Feasibility) sftware 3

4 Tenancy Schedule 1. Outgings and Vacancies Ttal Per Annum This represents the ttal Outgings and Vacancies as an average amunt per annum inclusive f any ta, but ecluding an escalatin. Calculatin Frmula Eample 1 ( Current Rent ( Rental Rate 1 3 Ttal Area 5,100 4 Percentage f Rent ) 1% ) Taatin Grss Up Factr fr Rent 1 Plus + 3 ( Ttal Area ( 5,100 5 Amunt 10 2 Rental Rate ) 1 ) Taatin Grss Up Factr fr Lessing Csts 1 71,400 4

5 2. Escalated Rent at Lease Start This displays the escalated rent as at the Lease Start Date n a rate per mnth/annum, based n the Sales and Rental Revenue Escalatin rates entered n the Input sheet fr the different Land Use Categries. Calculatin Frmula Eample (( Current Rent 1 Ttal Area 2 Rental Rate 3 (( 400 5,100 1 Term ) 12 ) Taatin Grss Up Factr n Rents ) 1 ) 4 Leas Start Escalatin Factr Term 12 1 Ttal Area 5,

6 3. Letting Fee Ttal Amunt This represents the letting fees payable at the Lease Start date, based n a percentage f the escalated Grss Rent at that pint in time. Calculatin Frmula Eample (( Current Rent 1 Ttal Area 2 Rental Rate 3 (( 400 5,100 1 Term ) 12 ) Taatin Grss Up Factr n Rents ) 1 ) 4 Escalatin Factr ( Letting Fee % ( 15% Taatin Grss Up Factr fr Lessing Csts ) 1 ) Term ,421 6

7 4. Current Net Annual Rent This represents the Current Annual Rental, net f Outgings (if assumed) and any Ta Liability t be paid (if assumed). Calculatin Frmula Eample 1 ( Current Rent ( Ttal Area 5,100 3 Rental Rate ) 1 ) (Taatin Factr fr Rents 1 Less - 4 Outgings and Vacancies Ttal Per Annum 71,400 1,968,600 7

8 5. Current End Sale Value This represents the Current Net Rental Incme divided by the Residual Capitalisatin Rate. Calculatin Frmula Eample 1 Current Net Annual Rent 1,968,600 2 Residual Cap Rate 8% 24,607,500 8

9 Ntes n Frmulas Term If Cash Flw Rest Perids = Mnthly: 12 If Cash Flw Rest Perids = Quarterly: 4 If Cash Flw Rest Perids = Half-Yearly: 2 If Cash Flw Rest Perids = Yearly: 1 Rental Rate If Current Rent rate selectin = /<area measurement>/annum: 1 If Current Rent rate selectin = /<area measurement>/mnth: 12 Taatin Factr n Rents If Preference Taatin > Cst and Revenue Inputs > Enter Rents and Leasing Csts = Inclusive f Ta AND Add Ta n Rents fr that line item <> 0 r N (1-(1-1/(1+Ta Rate))) = (Assuming a 10% Rate is being used) If Preference Taatin > Cst and Revenue Inputs > Enter Rents and Leasing Csts = Eclusive f Ta: (1-0) = 1 Taatin Grss Up Factr n Rents If Preference Taatin > Cst and Revenue Inputs > Enter Rents and Leasing Csts = Eclusive f Ta AND Add Ta n Rents fr that line item <> 0 r N (1-(1-1/(1+Ta Rate))) = (Assuming a 10% Rate is being used) If Preference Taatin > Cst and Revenue Inputs > Enter Rents and Leasing Csts = Inclusive f Ta: (1-0) = 1 Taatin Grss Up Factr n Leasing Csts If Preference Taatin > Cst and Revenue Inputs > Enter Rents and Leasing Csts = Eclusive f Ta AND Add Ta n Csts fr that line item <> 0 r N (1-(1-1/(1+Ta Rate))) = (Assuming a 10% Rate is being used) If Preference Taatin > Cst and Revenue Inputs > Enter Rents and Leasing Csts = Inclusive f Ta: (1-0) = 1 Preference Add Ta n Csts/Rents Inputs n Tenancy Schedule 9

10 Leas Start Escalatin Factr The Escalatin factr is based n several inputs in the mdel: The Land Use Cde selected fr a tenancy as entered n the Tenants sheet. The Rental Revenue Escalatin rate entered fr that Land Use n the Input sheet. The Start f the Lease entered n the Tenants sheet. The Future Value functin is used t wrk ut the escalatin factr, but since there are multiple rates in the escalatin table (ne fr each year), a separate calculatin is required t wrk ut the factr fr each year. Based n the eample abve: The tenancy has a Land Use Cde f COM, which means that it will apply the escalatin rates entered fr the Cmmercial Land Use Categry. This is 3% fr year 1, 4% fr year 2 and 5% fr year 3 nwards. The Lease Start is mnth 18 S year 1, the Future Value functin calculates the fllwing rate: =FV(annual rate fr yr 1, number f perids (i.e years), payments, present value * -1) =FV(3%, 12/12, 0,-1) = 1.03 The using the factr calculated at the end f year 1,the Future Value functin calculates the fllwing rate fr the remaining 6 mnths using the rate entered fr year 2: =FV(annual rate fr yr 2, number f perids (i.e years), payments, year 1 factr * -1) =FV(4%, 6/12, 0, -1.03) =