某房地产公司尽职调查报告

1、AICPA National Real Estate ConferenceDue DiligenceStephen A. StonerNovember 17, 20002What is Due Diligence Risk management toolVaries by client Varies by practitionerConsistency beginning to develop in secondary mortgage markets Industry standards accepted by rating agencies, investors, and intermed

2、iariesDependent on good data23History of Due Diligence Prior to 1980s MinimalLate 80s, early 1990s Required and criticalMid 1990s - current Changing real estate markets Much done internally Larger buyers Different risk mitigation proceduresFuture to be determined34Reason for Due DiligenceFile stuffe

3、rDecision toolSales toolAsset managementDeal structuring45The Due Diligence ProcessSalesContractExecutedFinancialOperationalReviewTenantReviewMarketAnalysisPhysical Asset and EnvironmentalReviewPro FormaAnalysisRecommendationto Buyer56The Due Diligence ProcessSalesContractExecutedTenantReviewMarketA

4、nalysisPro FormaAnalysisRecommendationto BuyerFinancialOperationalReviewPhysical Asset and EnvironmentalReviewHISTORICAL OPERATING RESULTS1989199019911992199367Financial Operational ReviewRevenue Streams Current RentSigned and current leases (including amendments)Legal clausesRight of first refusalG

5、o dark provisionsRight to cancelNoncompete clausesOtherTenant tour Accounts receivable aging Other forms of cash flowStorageInternet and telecommunication accessPhone revenue (hotels and motels)Other78Financial Operational ReviewOperating Costs: high level Costs per square feetBOMA and other benchma

6、rks (building size, location and age) Analytic review Review of tax returns Adjustments for unusual itemsResults used to focus detailed review89Financial Operational ReviewOperating Costs: detailed Service contractsEconomic reviewReview executed contractsCompare financial terms to operating statemen

7、tsLegal reviewDurationAbility to cancel or rebidImplications of sale Repairs and maintenanceReview of vouchersCapitalization versus expenses Property taxesReview recent tax bills OtherReview of vouchers910Financial Operational ReviewCapital items Deferred maintenanceWalkthrough Engineering report Ca

8、pital improvementsEngineering reportStrategic plan for property(ies)Identifiable versus annual Lease commissionsLinked to revenue streamMarket commissions - adjusted for business plan Tenant improvementsLinked to revenue streamPrimarily driven by physical condition of building and market requirement

9、sEngineering report1011Financial Operational ReviewConclusions Normalized NOI Identification and quantification of trends Unusual items1112The Due Diligence ProcessSalesContractExecutedTenantReviewMarketAnalysisPro FormaAnalysisRecommendationto BuyerFinancialOperationalReviewPhysical Asset and Envir

10、onmentalReview1213Evaluation of Tenant CreditFinancial stability (credit rating)Industry concentrationsOther concentrations1314The Due Diligence ProcessSalesContractExecutedTenantReviewMarketAnalysisPro FormaAnalysisRecommendationto BuyerFinancialOperationalReviewPhysical Asset and EnvironmentalRevi

11、ew1415Market AnalysisThree primary components Site analysis Supply DemandSupplyDemandSquare FeetTime1516Market AnalysisSite Analysis Visibility Access Ingress/Egress Amenities Sources of demand Competition Quality Surrounding land uses, current and projected1617Market AnalysisSupply Historical inven

12、tory Existing and future competitive Disaggregated by size, quality, and age Projected future developmentPlanning departmentsMedia researchLocal market interviews1718Market AnalysisDemand Historical absorption Market research of key indicatorsNew business startupsPopulation growthOther economic tren

13、dsOther demographic trends Projected growth in demand Demand(sq ft)Time1819Market AnalysisReconciliation of supply and demand Rental rates Percentage rents Occupancy levels Commissions Buildout Growth ratesRentalExpense Capitalization rates Renewal assumption1920Market AnalysisSpace may be vacant pr

14、ior to re-leasingNew rent is setNew tenant improvements, commissionsBase years, sales, other levels are setRenewal assumptions - What happens at the end of a lease?2021The Due Diligence ProcessSalesContactExecutedTenantReviewMarketAnalysisPro FormaAnalysisRecommendationto BuyerFinancialOperationalRe

15、viewPhysical Asset and EnvironmentalReview2122Physical Asset and Environmental ReviewEngineering report Deferred maintenance Required capital improvementsArchitects or space planners Efficiency of existing space: opportunities or constraints for value enhancementEnvironmental Phase 1, 2 and 3Title s

16、earch2223The Due Diligence ProcessSalesContractExecutedFinancialOperationalReviewTenantReviewMarketAnalysisRecommendationto BuyerPhysical Asset and EnvironmentalReviewPro FormaAnalysisConverting analysis to cash flow2324PROFORMA ANALYSISAnalysis of projection assumptions based upon historical perfor

17、mance and market researchCompilation of projected revenues, expenses and net operating incomeAnalysis of capitalization and discount rates, debt service and post-financing cash flow, if required2425Things to look for: If a portion of the property was non-operating during the year, the effect on future operating results needs to be considered The sellers or buyers budget, if used in the analysis, may contain optimistic assumptions The fees and corporate overhead expenses charged by the seller will be modified after acquisition All appropriate taxing j