Real Estate Portfolio Management / Strategic Financial Analysis

Types of Analysis Metrics

The Strategic Financial Analysis Console uses a number of types of analysis metrics. The following examples illustrate the types.

Base analysis metrics calculate costs for the given fiscal year. .For a description of the base analysis metrics, see Base Analysis Metrics.

Type of Metric	Description	Example	Description of Example	Stored As	Calculation Order
Measure	Measure of the value of an inventory quantity as of the current fiscal year	Max. Occupancy	The total number of personnel a building can house.	One record per asset per fiscal year in the Financial Analysis Summary (finanal_sum) table	Base metric
Metric for One Fiscal Year	Analysis, typically a sum, of values for the current fiscal year	Costs – Maintenance (fy)	The total cost of maintenance, historic and projected, for this asset for this fiscal year.		Base metric
Measure for Multiple Fiscal Years	Analysis, typically a sum, of values for multiple fiscal years or for the lifetime of an asset	Capital Projects Planned (3 years)	The total cost of capital projects planned over the next three years from this fiscal year forward		Base metric
		Remaining Lease Commitment	The total remaining lease commitment cost from this fiscal year forward		Base metric
Sum of Metrics	A sum of other analysis metric values	OpEx (fy)	The sum of a set of other metrics for this fiscal year. The specific metrics to sum are typically specified in Application Parameters.		Sum of Metrics
Ratio Metric	The ratio of one metric divided by a measure to prorate values so that facilities of different sizes can be compared on an even basis	OpEx (per Seat)	The total operational costs divided by the Max. Occupancy of a building		Ratio Metric
Lifecycle Analysis Metric	Analysis that produces one value for each fiscal year in the planned life of the asset.	NPV (cumulative)	The cumulative NPV for the current year in the life of the asset and all previous years back to the first year the asset was added to the portfolio. If the asset has a planned life of 20 years, this analysis produces 20 records.	One record per asset, per fiscal year in the planned life of the asset, per metric in the Lifecycle Analysis Summary (finanal_sum_life) table.	Lifecyle Metric

“The Calculation Order specifies order in which the program should calculate analysis results. The program calculates Base metric values then Ratio Metrics. Lifecycle Analysis Metrics do not depend on any other metrics.

Lifecycle Analysis Metrics

Lifecycle analysis metrics calculate values over the planned life (finanal_params.planned_life in years) of the asset. They return an array of numeric values with one record created for each fiscal year within the planned life.

The following table describes the default set of lifecycle analysis metrics:

Lifecycle Analysis Metric	Known as	Applies To and Prorations	Description	Business Relevance
fin_anlys_RealEstateOpEx_lifecycle_an	Operating Expenses (per fy)	Properties Buildings	Schedule of total operating expenses for each fiscal year over the planned life of the property or building within the portfolio.	Used to weigh the total lifecycle cost of a facility or asset when making purchase, sale, or capital decisions.
cap_npv_lifecycle_an	NPV (cumulative)	Properties Buildings	Cumulative NPV for the given time period, that is, the estimated value of the asset as an investment in present-day dollars.	Used to review the financial return on an asset as an investment. For owner-occupied buildings, this value is often negative as an investment, as the building's purpose is to support the business mission.
cap_CapitalProjects-Planned-lifecycle-an	Capital Projects (per fy)	Properties Buildings	Schedule for each year of the sum of all capital projects scheduled for that year.	Used to review the total lifecycle capital commitments associated with an asset.
cap_irr_lifecycle_an	IRR (cumulative)	Properties Buildings	Cumulative IRR for the given time period, that is, the estimated rate of return the asset would deliver as an investment.	Used to review the financial return on an asset as an investment. For owner-occupied buildings, this value is often negative as an investment, as the building's purpose is to support the business mission. Note: At least one year must have a positive cash flow, and one year must have a negative cash flow.