This guide will teach you how to use the RATES sheet in the Valuation Workbook.
Prerequisites
- Subscription Tier: Professional or Enterprise
- The current Workbook downloaded, set up with all preceding sheets completed.
Table of Contents
Equity Yield Rate YE Calculation table
Unlevered IRR Calculation table
National Investor Survey: Discount & Residual Cap Rates table
Additional Rate Summaries table
National Investor Survey: Expense Growth Rate table
Expense and Market Rent Growth Conclusion table
Access / Enable the Rates sheet
Step 1: Select Show All for Select Modules, and enable DCF (with Excel, Rockport, or Argus) to unhide the Rates sheet.
Rate & Growth Analysis table
| This is for cash flow, and the user can use the indications from the cash flow to identify implied rates. |  |
| This table will impact the Equity Yield Rate, Less Appreciation, and NOI Growth lines in the Expanded Band of Investment on the OAR sheet. |  |
NOI Growth Analysis table
| The total number of Fiscal years presented in this table is reflected based on the holding period determined in the DCF sheet. |  |
Step 1: Select Click here to hide unused rows to clean up your table.
The Equity Yield Rate YE Calculation table
To limit the number of Fiscal Years present, adjust the holding period on the DCF sheet and hide the unused lines.
- As with any table, do not delete columns or rows; it will cause workbook errors to form and prevent their usage in the Report.
Unlevered IRR Calculation table
This table allows you to view the quality of the investment, absent of any outside market influences related to the lending world.
Pro tip: To limit the number of Fiscal Years present, adjust the holding period on the DCF sheet and hide the unused lines.
- As with any table, do not delete columns or rows; it will cause workbook errors to form and prevent their usage in the Report.
National Investor Survey Discount & Residual Cap Rate table
These tables will bring in the PwC report titles imported on the OAR sheet.
Step 1: If you are utilizing the range, manually enter the range determined from the OAR sheet.
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Pro tip: To show/hide the range columns, make this adjustment in the OAR sheet by selecting Yes/No in Show Columns. |
Additional rate summaries table
Step 1: Indicate if you would like to include RERC and/or Realty Rates
Step 2: Add relevant ranges
National Investor Survey - Expense Growth Rate
New as of June 2024: We can pull in expense and market growth rates. This table will populate the drop-downs once you import them on the OAR sheet.
Step 1: Adjust the ranges.
This information is used in the assumptions sheet in the Market Rent and Expenses dropdown.
Expense and Market Rent Growth Rate Conclusion tables
Step 1: Add Ranges and make your conclusion. These conclusions will populate the Rent Growth and Expense Growth lines in the DCF sheet.
If you have additional questions about using the Rates sheet in the Valcre Office, please contact Valcre Support using the live chat feature in Valcre Online or Valcre Mobile.