Calculation Guide Estate Master DF Summary Report Returns on Funds Invested. Aug 2014

Transcription

1 Calculatin Guide Estate Master DF Summary Reprt Returns n Funds Invested Aug 2014

2 Table f Cntents Intrductin... 3 Summary Reprt Returns n Funds Invested Funds Invested (Cash Outlay) Peak Expsure Weighted Average Interest Rate Interest, Line Fees & Applicatin Fees Charged Prfit Share, Prfit and Margin Payback IRR Equity t Debt Rati Lan t Value Rati Lan Rati

3 Intrductin Estate Master has put tgether this dcument t assist yu with wrking thrugh the different calculatins that appear in the Returns n Funds Invested table n the develper s Summary reprt within the Estate Master DF (Develpment Feasibility) sftware (can als apply t Estate Master DM). Figure 1 - The Returns n Funds Invested table f the Summary Reprt 3

4 Summary Reprt Returns n Funds Invested 1. Funds Invested (Cash Outlay) This figure represents the ttal amunt f funding injected int the prject. The Develpers Equity amunt is linked t the Develpers Equity Injectins rw in the CashFlw sheet, and the Lans are linked t the Drawdwn rws. Calculatins Funds Invested (Dev Equity) = 1 Sum f all Injectins 1,363,168 Funds Invested (Lans) = 1 Sum f all Drawdwns 2,532,000 % f Ttal Funds Invested = Funds Invested (as calculated abve) 1,363,168 ( Funds Invested ( 1,363,168 2 Sum f Ttal Equity and Debt Funds Invested ) 3,895,168 ) * based n Develper s Equity inputs 35% Figure 2 - The CashFlw sheet - Injectins and Drawdwns Figure 3 - The Summary sheet - Funds Invested 4

5 2. Peak Expsure This Peak Expsure amunt represents the pint at which the lan facilities reach their peak balance (including capitalised interest) in the cash flw. The identified peak balance is the Peak Expsure amunt and the timing f when it ccurs in the cash flw is the Date f Peak Expsure and the Mnth f Peak Expsure (indicating the cash flw time perid). Calculatin Peak Expsure (Dev Equity) = 1 Highest (negative) Equity Balance 1,413,946 Peak Expsure (Lans) = 1 Highest (negative) Lan Balance 2,701,236 Date f Peak Expsure = 2 Cash Flw Date that the Peak Expsure ccurs April-2011 Mnth f Peak Expsure = 3 Cash Flw Perid that the Peak Expsure ccurs Mnth 15 * based n Develper s Equity inputs Figure 4 - The CashFlw sheet - Balances 5

6 3. Weighted Average Interest Rate The weighted average Interest rate is calculated by applying the interest rate f the lan facilities weighted by the size f the respective lan balances. This calculatin uses the Interest Rate Annual t Rest Perid Cnversin Preference Calculatin - Nminal Weighted Avg Interest Rate = 1 ( Ttal Interest Charged fr Lan ( -54,313 2 Sum f all negative Lan Balances n Cash Flw ) -21,725,116 ) multiplied by x Term 12 * based n Develper s Equity inputs Calculatin - Effective 3.00% Weighted Avg Interest Rate = 1 ( Ttal Interest Charged fr Lan ( -54,313 2 Sum f all negative Lan Balances n Cash Flw -21,725,116 1 ) 1 ) T the pwer f ^ Term 12 minus * based n Develper s Equity inputs 3.04% Figure 5 - The CashFlw sheet - All Negative Balances 6

7 4. Interest, Line Fees & Applicatin Fees Charged These Charged amunts are linked t the respective rws n the CashFlw sheet, summing the ttal paid fr each time perid. Interest can be calculated by different methds fr each lan. It uses tw Prefrences: Interest Rate Annual t Rest Perid Cnversin Interest Payment Methd Applicatin Fees are a ne-ff payment and paid at the nminated start perid. Line Fees are entered as a per annum amunt, but are charged n a peridic basis and paid in arrears frm the first drawdwn t the final repayment. Calculatin Nminal Interest Paid by Equity / Capitalised (Cmpunded) / Principal and Interest Interest = 1 Lan Balance f previus perid 5,000 multiplied by x 2 ( Lan Interest Rate fr current perid ( 8% Term ) 12 ) **repeat fr each time perid** * based n Lan 1 inputs Fr the Accrued nt Capitalised (Simple) methd, it is similar t abve, but is based n the sum f Drawdwns up until (but excluding) the current perid OR the Lan Balance f previus perid, whichever is greater. 7

8 Calculatin Effective Interest Paid by Equity / Capitalised (Cmpunded) / Principal and Interest Interest = 1 Lan Balance f previus perid 5,000 multiplied by x 2 ( Lan Interest Rate fr current perid ( 8% 1 ) 1 ) T the pwer f ^ ( 1 ( 1 Term ) 12 ) minus **repeat fr each time perid** * based n Lan 1 inputs Fr the Accrued nt Capitalised (Simple) methd, it is similar t abve, but is based n the sum f Drawdwns up until (but excluding) the current perid OR the Lan Balance f previus perid, whichever is greater. Figure 6 - The CashFlw sheet - Calculating Interest Calculatin - Fees Applicatin Fees = 1 Applicatin Fee Amunt 5,000 2 ( Applicatin Fee Percentage ( 0% multiplied by x Facility Limit ) 2,532,000 ) 5,000 Line Fees = 4 ( Line Fee Amunt 0 5 (Line Fee Percentage ( 0.25% multiplied by x Facility Limit ) ) 2,532,000 ) ) Term 12 multiplied by x Number f Perids the Lan has a negative Balance 16 * based n Lan 1 inputs 8,440 8

9 Figure 7 - The Input sheet - Financing Inputs 9

10 5. Prfit Share, Prfit and Margin The Prfit Share Received shws the distributin f prfit t the Lans. The Prfit Split Percentage is entered in the Lan inputs sheet, and is applied t the Grss Develpment Prfit t wrk ut the share that is distributed t the lender. The Develper s Equity Ttal Prfit t Funders shws the ttal funds paid t the develper, including any interest charged n the equity less any Prfit Share paid ut t the lenders. The Ttal Prfit t Funders fr the Lans shws the ttal funds paid t the lenders, including any Interest/ Applicatin / Line Fees charged and Prfit Share paid t them. The Margin n Funds Invested is Ttal Prfit t Funders as a percentage f Funds Invested. Calculatin Prfit Share Received (Lans) = 1 Grss Develpment Prfit 859,333 multiplied by + 2 Prfit Share Percentage 25% 214,833 Ttal Prfit t Funders (Lans) = 3 Interest Charged 176,362 3 Line Fees Charged 8,440 3 Applicatin Fees Charged 5,000 3 Prfit Share Received 214, ,635 Ttal Prfit t Funders (Dev Equity) = 4 Net Develpment Prfit 644,500 5 Interest Charged 698, ,635 Margin n Funds Invested = 6 Ttal Prfit t Funders 404,635 7 Funds Invested 2,532, % Figure 8 - The Summary sheet - Grss and Net Prfit 10

11 Figure 9 - The Input sheet - Lender Prfit Share Figure 10 - The Summary sheet - Calculating Ttal Prfit t Lender and Margins 11

12 6. Payback The Payback Date fr the lan facilities is the date when ttal equity/debt is repaid (essentially the pint where it ges frm negative t zer/psitive) Calculatin Payback Date (Dev Equity) = 1 The date in the Cash Flw where the Equity Balance ges frm negative t zer/psitive, fr the last time May-11 Payback Date (Lans) = 1 The date in the Cash Flw where the Lan Balance ges frm negative t zer/psitive, fr the last time May-11 Mnth f Payback = 3 Cash Flw Perid that the Payback ccurs Mnth 16 Figure 11 - The CashFlw sheet - Payback ccurring when lan balance reverts t zer/psitive 12

13 7. IRR IRR n Funds Invested fr Develper s Equity is the IRR f the equity cash flw including the repayment f equity and realisatin f prject prfit, less any prfit share paid ut t ther lenders. The cash flw used fr the IRR calculatin is displayed n the Financials wrksheet. IRR n Funds Invested fr the Lans is the IRR f the lan cash flw including the repayment f the lan facility and any prfit share received. This calculatin uses the Discunt Rate Annual t Rest Perid Cnversin Preference Calculatin - Nminal IRR (Dev Equity) = 1 IRR f Equity Cash Flw line n CashFlw sheet 2.68% multiplied by x Term % IRR (Lans) = 1 IRR f Lan Cash Flw line n CashFlw sheet 1.47% multiplied by x Term % Calculatin - Effective IRR (Dev Equity) = 1 ( IRR f Equity Cash Flw line n CashFlw sheet ( 2.68% 1 ) 1 ) T the pwer f ^ Term 12 minus % IRR (Lans) = 1 ( IRR f Lan Cash Flw line n CashFlw sheet ( 1.47% 1 ) 1 ) T the pwer f ^ 13

14 Term 12 minus % Figure 12 - The CashFlw sheet - Equity and Lan cash flw lines t calculate IRR n 14

15 8. Equity t Debt Rati The Equity t Debt Rati is the amunt f equity cntributed int the prject expressed as a percentage f ttal debt funding. Calculatin Equity t Debt Rati = 1 Ttal Equity Funds Invested 1,363,168 2 Funds Invested fr Lan 2,532, % Figure 13 - The Summary sheet - Calculating Equity t Debt Rati 15

16 9. Lan t Value Rati Lan t Value Rati is the Peak Equity r Debt Expsure divided by the Ttal Sales Revenue. Calculatin Lan t Value Rati = 1 Peak Expsure 2,701,236 2 Grss Sales Revenue 5,654, % Figure 14 - The Summary sheet - Peak expsure amunt used fr Lan t Value Rati Figure 15 - The Summary sheet Grss Sales Revenue amunt used fr Lan t Value Rati 16

17 10. Lan Rati The Lan Rati represents ttal funds invested by the lender (cash utlay) divided by the nminated rati calculatin methd and can include capitalised interest and fees, depending n the Preference selected. This calculatin uses tw Preferences: The rati calculatin methd indicated fr each facility. The ptin t include Capitalised Interest and Fees in the numeratr (i.e. ttal funds invested). Calculatin Include Capitalised Interest and Fees Lan Rati = 1 ( Funds Invested ( 2,532,000 2 Interest Charged 176,362 2 Line Fees Charged 8,440 2 Applicatin Fees Charged ) 5,000 ) Lan Rati Calculatin Methd 4,138,880 * based n Lan 1 inputs 65.76% 17

18 Calculatin Exclude Capitalised Interest and Fees Lan Rati = 1 Funds Invested 2,532,000 Lan Rati Calculatin Methd 4,138,880 * based n Lan 1 inputs 61.18% Figure 16 - The Summary sheet - Lan Rati 18

19 Ntes n s 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 Facility Limit and Lan Rati Calculatin Methd If rati methd = % f Land Purchase Price Sum f grss Land Depsit, Payments and Settlement amunts If rati methd = % f Land Acquisitin Csts All acquisitin csts, including Land Depsit, Payments and Settlement, Stamp Duty and ther csts If rati methd = % f Prject Csts (net f Interest/Fees and GST) Ttal Csts as indicated n the CashFlw sheet If rati methd = % f Net Cash Flw t be Funded All negative amunts in the Net Cash Flw (befre Interest & after Crprate Tax) 19

20 If rati methd = % f Prject & Finance Csts (inc Interest/Fees and net f GST) Ttal Csts as indicated n the CashFlw sheet, plus Interest, Line Fees and Applicatin Fees charged n each lan. If rati methd = % f Hard Csts Based n the Hard Csts indicated in the Preferences If rati methd = % f Cnstructin Csts Cnstructin Csts (inc Cntingency) as indicated n the CashFlw sheet 20

21 If rati methd = % f Grss Sales Grss Sales Revenue as indicated n the CashFlw sheet If rati methd = % f Sales (net f GST) Grss Sales Revenue as indicated n the CashFlw sheet, less any tax specifically paid n the Sales Revenue (which is nt explicitly displayed n CashFlw sheet) If rati methd = % f Sales (net f selling csts and GST) Grss Sales Revenue less Selling Csts as indicated n the CashFlw sheet, less any tax specifically paid n the Sales Revenue (which is nt explicitly displayed n CashFlw sheet) If rati methd = % f Value f Pre-Sales The value f pre-sales calculated in the Sales Revenue sectin r pre-sld Capitalised Sales in the Rental Incme sectin (which is nt explicitly displayed n CashFlw sheet). (Develper s Equity Only) If rati methd = % f Debt Funding Drawdwn fr each Debt Lan Facility, as indicated n the CashFlw sheet. (Develper s Equity Only) If rati methd = % f Net Prfit Net Prfit, as indicated n the Summary sheet. 21