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RiskAnalyst Feature Tour
The Income Producing Real Estate template helps institutions improve the accuracy and consistency of analysis at the property level with calculation of key commercial real estate metrics and ensures the standardized collection of property data.
MARKET CHALLENGE: INCONSISTENT ANALYSIS OF INCOME PRODUCING REAL ESTATE PROPERTIES
Commercial real estate loans can represent a significant proportion of a financial institution's portfolio. History has shown that market cycles can inflict large credit losses on institutions that are ill-equipped to handle fluctuations within a specific segment like commercial real estate.
Assessing risk in this cyclical and volatile industry is made more complex by the variety of unique income producing real estate property types – office, multi-family, retail, industrial, and mixed-use. Compounding the difficulty is the issue of analyzing credit risks associated with a property at different phases within its life cycle — construction, lease-up, and stabilized.
Institutions that do not have a consistent approach or standardized analysis of their commercial real estate exposures are left at a distinct disadvantage in both loan origination as well as monitoring the changing credit risks within their portfolio.
RISKANALYST INCOME PRODUCING REAL ESTATE TEMPLATE
The RiskAnalyst Income Producing Real Estate (IPRE) template allows users to collect, analyze and store both historical and pro-forma information on multiple property types, including multi-family, retail, office, industrial and mixed-use in a consistent manner.
The IPRE template provides an effective solution which includes uniform and centralized analysis of property level information such as net operating statements, appraisal data, rent and vacancy rates, loan exposure details, debt service coverage, loan-to-value, tenant rent rolls and market factors.
MOODY'S KMV RISKANALYST INCOME PRODUCING REAL ESTATE TEMPLATE OFFERS:
- The flexibility to meet organizations' credit risk assessment goals, such as regulatory requirements, internal policies, and central oversight.
- Sensitivity analysis of the key drivers of debt service coverage and loan-to-value (LTV) ratios.
- Detailed analysis of different types of loans, including amortizing, interest-only, fixed or adjustable rate.
Powerful Functionality
- Consistently collects, analyzes and stores historical and pro-forma property data for office, multi-family, retail, industrial and mixed-use properties
- Calculates and analyzes net operating income (NOI), construction costs and tenant rent rolls
- Analyzes how different market factors could impact debt service coverage and loan-to-value ratios, including vacancy, interest, and capitalization rates.
- Monitors every phase of property life cycle from construction through lease-up to stabilization
- Maintains a history of property analysis to ensure a detailed record is kept over time
- Displays calculated results instantly on screen
- Analysis of construction budgets, construction progress, and construction loan funding
- Ability to enter and analyze multiple loans against a property
Flexibility and Usability
- Analyze net operating income from multiple sources (appraisal, borrower, underwriting analysis)
- Add and re-label rows on financial data screens to ensure all data is captured according to your institutions' needs
- Enter notes on individual accounts, account balances or statements
- Instant access to detail and summary reports
- Link property level information and analysis with financial statements data in RiskAnalyst
- Extensive online help system provides detailed instructions to the user, including an explanation of all data entry fields
- Leverages the intuitive interface and navigation of RiskAnalyst to allow users to be productive quickly
- Share properties across multiple RiskAnalyst customers to model properties with more than one owner
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