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This presentation by EXO Edge provides a concise overview of property financial statements and their significance in real estate management. It covers the core componentsu2014Income Statement, Balance Sheet, and Cash Flow Statementu2014explaining how each contributes to evaluating a property's financial health. It also offers guidance on analyzing these reports for effective decision-making. Finally, it highlights how EXO Edge supports property managers with accurate reporting, compliance, and financial insights.
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Introduction to Property Financial Statements Presented by: EXO Edge
Key Components of Property Financial Statements 1. Income Statement (Profit & Loss) ○ Tracks income (rents, fees) and expenses (maintenance, utilities) ○ Shows net operating income (NOI) Balance Sheet ○ Assets: Property value, cash reserves ○ Liabilities: Mortgages, loans ○ Equity: Owner’s interest in the property Cash Flow Statement ○ Tracks actual cash in and out ○ Crucial for liquidity management 2. 3.
How to Analyze Property Financial Statements ● Review NOI trends over time ● Compare expenses as a % of revenue ● Monitor debt service coverage ratio (DSCR) ● Look for red flags: rising vacancy costs, unexpected repairs
Role of EXO Edge in Property Accounting ● Expertise in preparing and analyzing financial statements ● Ensures GAAP-compliant and audit-ready reports ● Supports property managers with accurate, timely data ● Enables strategic financial decisions through insight-rich reporting