Pro Forma 2019-03-15 08:00:00

Pro Forma

Pro Forma is a forward-looking cash flow projection based on a set of assumptions. Pro forma financial statements depict future financial results if the underlying assumptions hold true.

For example, a pro forma may project that property occupancy will increase from 80% to 90% over the next 3 years and that rental rates will increase by 4.0% annually while expenses will grow by 3.0% per year over the same time frame. Pro formas can be used to illustrate the financial impact of executing a business plan for a property and are useful for investors to compare potential investments and conduct due diligence against the sponsor’s assumptions and projections.

 


Are DST Investments Right For Me?

Download the Free DST Guidebook