ASC Portfolio Analysis 3

Question 1

In ARGUS Enterprise, which portfolio-level metric measures the ratio of total net cash distributions to total equity invested?

Accepted Answer

Equity Multiple (EM)

Answer

The equity multiple is calculated as total distributions divided by total equity invested, expressing how many times the investor's capital was returned.

Question 2

When creating a portfolio in ARGUS Enterprise, what is the primary function of the 'Portfolio Currency' setting?

Accepted Answer

It sets the reporting currency into which all asset-level cash flows are converted for consolidated analysis

Answer

The Portfolio Currency setting defines the consolidated reporting currency, and ARGUS applies exchange rates to convert each asset's local cash flows for aggregated analysis.

Question 3

A portfolio analyst notices that the blended DSCR for a 10-asset portfolio drops below 1.20x in Year 3. What does this indicate?

Accepted Answer

Net operating income is insufficient to cover debt service by the lender's required margin across the portfolio

Answer

A DSCR below 1.20x means portfolio NOI covers debt service but with less than the typical lender cushion, triggering potential covenant concerns.

Question 4

In ARGUS Enterprise, which approach best handles a portfolio where assets have different acquisition dates?

Accepted Answer

Model each asset with its actual start date and use portfolio-level date alignment settings

Answer

ARGUS Enterprise supports staggered acquisition dates by modeling each asset independently and using portfolio-level date alignment to consolidate cash flows correctly.

Question 5

What does the 'Weighted Average Cap Rate' at the portfolio level in ARGUS Enterprise represent?

Accepted Answer

The NOI-weighted blended cap rate reflecting the portfolio's relative income contribution from each asset

Answer

The weighted average cap rate weights each asset's cap rate by its proportional NOI contribution, reflecting the true blended pricing of the portfolio's income stream.

(ASC) Argus Software Certification Practice Test

(ASC) Argus Software Certification Practice Test

ASC Portfolio Analysis 3