CLP Financial Analysis & Reporting 3

Question 1

A property has an NOI of $120,000 and was purchased for $1,500,000. Comparable properties sell at a 7% cap rate. What is the property's estimated market value?

Accepted Answer

$1,714,286

Answer

$1,200,000

Answer

$1,500,000

Answer

$1,620,000

Question 2

In leasing financial analysis, 'economic vacancy' differs from 'physical vacancy' because it also accounts for:

Accepted Answer

Rent concessions and loss-to-lease

Answer

Units under renovation

Answer

Tenant improvement allowances

Answer

Delinquent rent collections only

Question 3

Which document provides a snapshot of a property's assets, liabilities, and owner's equity at a specific point in time?

Accepted Answer

Balance Sheet

Answer

Income Statement

Answer

Cash Flow Statement

Answer

Rent Roll

Question 4

A leasing manager reviews a property where actual rents collected are lower than market rents for identical units. This difference is called:

Accepted Answer

Loss-to-lease

Answer

Vacancy loss

Answer

Bad debt expense

Answer

Concession overage

Question 5

Which financial ratio is used to evaluate whether a property generates sufficient income to cover its debt obligations?

Accepted Answer

Debt Service Coverage Ratio

Answer

Capitalization Rate

Answer

Gross Rent Multiplier

Answer

Operating Expense Ratio

Question 6

When preparing a leasing budget, 'turns' or 'turnover costs' typically include:

Accepted Answer

Cleaning, repairs, and make-ready costs between tenancies

Answer

Leasing commissions paid to brokers only

Answer

Long-term capital improvement projects

Answer

Annual property tax assessments

Question 7

A property's Operating Expense Ratio (OER) is 45%. If EGI is $800,000, what are total operating expenses?

Accepted Answer

$360,000

Answer

$320,000

Answer

$400,000

Answer

$440,000