REPORTS – API NOTE

Reproduced with permission

1.0 Introduction
1.1 Purpose
The purpose of this Business Focus element is to provide Members with an indication of some of the types of reports which can be produced for clients, what they could contain and how they might be compiled.

1.2 Scope
This Business Focus element applies to Members providing an array of reports to clients on a wide range of property types and issues, and for numerous purposes.

1.3 Definition
For the purpose of this Business Focus element, a report is any written or oral communication of a property assessment, analysis, consulting service that is forwarded, conveyed or transmitted to the client upon completion of an assignment.

1.4 Oral Report
Where a report is conveyed to a client in an oral communication, it is recommended that the advice be confirmed in a hard copy or other electronic or digital format capable of producing a text version. If instructed not to provide anything in writing, it is important to ensure this is noted in the file along with a written record of the oral advice provided.

2.0 Report Purpose
2.1 Purpose dictates Report Type, Format and Content
Reports can have many names, but most, if not all, property reports are basically aimed at providing solutions to property problems to meet clients’ needs and purposes.

The problem may be as simple as not knowing some information about a property, it may involve a client’s need to know what would be the best use to which to put the property, whether it is suitable security (what are the risks and Market Value) for a mortgage advance, or as complex as establishing the feasibility of a mixed category, multi-stage development proposed for a rapidly expanding area where the site needs rezoning and remediation of contamination.

The purpose for which the client needs the report and the nature of the problem to be solved will both tend to dictate the:
type of report,
format of the report; and
content of the report.

3.0 Types of Reports
3.1 Three Main Categories
Most report styles tend to fall into one of the following three categories:
self-contained or comprehensive style
summary or short form style
restricted or proforma style.

The substantive content of a report and not the size of the document alone influences which category a report fits into. Each item in each type of report should be addressed in the depth and detail as appropriate for the item, the type of report and purpose.

3.2 Self-contained or Comprehensive
A self-contained or comprehensive style report generally ‘describes’ its information at a comprehensive level of detail. It should contain all information significant to the solution of the property problem. It will often involve indepth detail on each of many points under numerous headings in sections containing like information.

3.3 Summary or Short Form
A summary or short form style report generally ‘summarises’ its information in a more concise form. It should contain a summary of all information significant to the solution of the property problem. It will often involve one or several paragraphs summarising in abbreviated narrative or tabular format, the main points under a major heading or section.

3.4 Restricted or Proforma
A restricted or proforma style report ‘states’ much its information in a minimal presentation. The headings are often decided by the client (who tends to be a volume user of Members reports) who requires information briefly stated. It will often involve a combination of brief narrative
statements and simple fact statements or bulleted points.

3.5 Deciding type or style
In deciding the type or style of report appropriate in any instance, the following should be considered:
the client’s requirements;
the client’s level of understanding of the particular type of property and its market;
the purpose of the assignment or task.

4.0 Report Formats
4.1 Institute does not Dictate Format
While the Institute does not dictate the form, format or style of reports, it may assist Members by indicating what could be provided or it may produce formats for particular client groups to enable the benefits of uniformity to be gained.

4.2 Word Processor Report Templates and other Useful Features
Modern word processing programs often provide report templates. They also include many features enabling very professional reports to be produced readily. These include:
page headers and footers;
automatic page numbering;
automatic table of contents;
great variety of font types, sizes and enhancements such as bolding and italics;
table format control;
spell and grammar checks;
import data and graphs;
and many others.

New features are continually being added to these programs. Even if you have an existing program which appears to still be doing the job after three or four years, the advances are well worth the cost of upgrading. Many packages are offered today which include word processing, spreadsheet, database, graphics, organisers and presentation assistants. The package cost is often less than the cost of a single program just a few years ago and there are many more features. Databases can also be used to produce a report while capturing data to add to the database or using information already in it. Making the move can also be an ideal opportunity to upgrade hardware as well.

Often, all a client sees of you is the reports you send in.
Don’t sell yourself short by submitting poorly presented and formatted reports. The annexure to this Business Focus element will also give an indication of how your report could be formatted.

4.3 E-commerce Era
The electronic commerce era is gathering pace. In the US and Canada it is already having significant impact on our profession in the residential mortgage reporting market.
e-commerce for our profession is not about e-mailing files as many of us at first thought. Reports are generated out of a database and the content transmitted to the client as data fields.

A significant number of Australian lenders are already well advanced in their plans in this area. e-commerce
will have a significant impact on our professional lives. Our quick uptake in this area will be necessary if we are to remain relevant to our clients in their new ways of doing business. Initial indications are that it will best suit shorter form reports which will need to be consistent in format.

5.0 Report Content
5.1 Deciding on Content
The content of reports will vary greatly. With comprehensive and summary style reports the content can be decided by focussing on the subject, the purpose and the client’s needs or problems and objectives.

5.2 Comment on Extent of Process
It is recommended that in each type of report that you comment on the extent of the process of collecting, confirming and reporting data. However this description should not be out of proportion to the length of the report.
With a comprehensive report the full extent of the process should be apparent to the report reader so such comment can be briefly stated.
With a summary report the full extent of the process may not be apparent to the reader, so to protect yourself, summarise the process.
With a Pro-forma report the full extent of the process will not be apparent to the reader so either the pro-forma or a supporting memorandum referenced in the report should describe the process.

5.3 Reference to File Material
It is also recommended with the summary and pro-forma reports that reference be made to the existence of appropriately detailed file material in support of the conclusions and that from these a comprehensive
report can be compiled by further arrangement.

5.4 Caution any Limitation on Content
Where a client requests less content than is considered appropriate for the purpose, it would be prudent to include a covering comment on this limitation in the report noting that the detail is held on file and can be
provided by further arrangement, (while also cautioning if the omission of that content could mislead or not adequately inform the client or any party authorised to rely on the report). If any restriction or limitation is imposed by the client on ‘normal processes’, great care should be taken.

5.5 Clearly and Logically Presented and Adequately Detailed
It is important for the content of a report to be clearly and logically presented and adequately detailed for the purpose. This applies especially to self-contained or comprehensive style reports. These will tend to
comprise the following main parts:
summary - of the report and its findings or recommendations;
body of the report comprising;
property and/or Project - adequately described for the purpose;
market - relevant dynamics and data;
assessments, Consideration of Issues and Risk Analysis (if relevant);
solutions if relevant;
annexures (addenda, appendices etc.) which are generally support material providing additional detail which has often been gathered from other sources.

6.0 Report Balance
6.1 Focus on the Problem and Solution not the Subject
It is important to keep reports in balance. The description of the subject should not out-weigh your focus on the market and the development of your solution to the property problem. In the past there has been client comment that some reports provide lots of detail about the property but very little about the market or the solution to the ‘property problem’, and that the position should be reversed.

As a Member and a property professional, your point of difference is your ability to provide solutions to property problems, not just describing property, - which is sometimes well known to the client anyway.

The key is in ‘value adding’ - putting content in your report which adds to your client’s knowledge, not putting in lots of content which the client already knows or is not relevant to the current problem. The information which you have is not knowledge until it is in the hands of a client who can turn it into value. You can turn it into value for your client by solving his property problems with it.

6.2 Sufficiently Detailed Summary
Balance is also achieved by understanding the client’s requirements and situation. While a client may require a comprehensive report (or in cases where such is warranted and provided), it is becoming increasingly obvious that busy clients do not have time to fully read the whole
document. Though many reports provide an ‘Executive Summary’, often these do little more than indicate that the property has been inspected, that it contains certain improvements and a brief note of the particular property
solution. Some clients then have to go through the whole report to prepare their own summary.

Balanced reporting at the ‘stand alone’ or ‘comprehensive’ level should provide a summary sufficiently detailed that it could almost pass as a Summary or Short form Report.
The reader should be able to gain an adequate understanding of the subject of the report, the relevant market, the main considerations and the solution to the property problem. Any aspect of concern can be explored further in the body of the report, the reader can come back to the balance of the report as time permits, or the report can be referred to someone else to follow up.

The ‘Summary’, which could be 2-7 pages long, should touch on the main points of the report so that the reader will gain an overview of the purpose and subject of the report, the relevant market, the main considerations and the solution to the property problem.

6.3 Balance in Issues and Language
Balance in report content also requires a balance in the issues addressed and the language used.The report should:
objectively address upside and downside potential;
not be over-glowing in the positive aspects or unduly critical in negative aspects;
not infer things which should be detailed or explained;
not avoid or be silent on important issues;
not use jargon, abbreviations or unexplained technical terms unless suited to the client;
lead to a conclusion clearly supported by the report content.

6.4 Balance in Short-form Reports
Balance is also important in summary or short-form reports. While many practices use standard descriptions of a town or city, it looks obvious and out of balance when one suitable for a comprehensive report is inserted into a short-form report. It too should be scaled down to a summary version only.

6.5 Challenge of Pro-forma Reports
Pro-forma reports sometimes pose a challenge in deciding just what and how much information needs to be provided.
Pro-formas are often designed or utilised by the client to meet a need (usually to gather just the important information in ‘stated’ or point form covering key aspects only). However, if a particular key aspect of the subject property is so important that the client should be informed beyond the space provided on a fixed field pro-forma, it is appropriate to provide an addenda to the pro-forma.

7.0 Report Content Prompters
There are many ways/combinations of techniques to produce a report. With the benefit of word processors, some people save a duplicate copy of a similar property report and change it as necessary. There are several inherent dangers with this method. Firstly, some detail that should be changed or deleted might not be, and secondly, some points that may not have been relevant in the first might be overlooked in the second. Perhaps a safer method is a report layout template containing any standard content with prompters built in.

Annexed to this Business Focus element is a Report Compilation Prompter which you can be use to select major section headings for your report and points under a range of sub-section headings from which to choose appropriate content. Out of this you can build a report template or shell with your standard content into which you insert the variables based on a selection of the prompters as relevant. While the headings and points are comprehensive, they are not exhaustive.

Whatever system you use you will probably find it handy in building your reports. Add to it as necessary.

Annexure 1 – Comprehensive Report
(Nature of Problem Addressed)
Type of Property/Market Segment
Address of Property
Under Instructions From:
For the Use and Benefit Of:
Your Ref. / Order No:
Our Ref:
Photo if appropriate


1.0 Summary
1.1 Summary of Report
Brief summary of client details and objectives
Note any special conditions, assumptions or limitations required
Brief summary of the subject of the report
If includes a project, describe briefly
Summarise market analysis
Outline main issues
Outline main findings
1.2 Recommendations
List Recommendations (or alternatives)
Report Date
Signature of Member
Name, Qualifications etc
Draw attention to assumptions and limitations contained in report (or list)
• ‘Report is for the use only of .........’
• ‘No extract from this report may be included ..............’
1.3 Assessments
State the extent of the process of collecting,
confirming and reporting data
What interest has been assessed and for what purpose
Date of assessment
Market Value definition
If a project, define ‘as if complete’ or ‘on completion’
Assessment in words and figures
Note any special inclusions or exclusions which are not real property
2.0 Client
2.1 Client Details, Purpose and objectives
Client name (if an organisation, include name
of instructing representative)
Purpose for which the report is required
Statement of understanding of Client requirements and objectives
2.2 Required Assumptions and Limitations
State any assumptions required by client or limitations
imposed
3.0 Property
In this Section, choose headings as appropriate and re-number
3.1 Title and Property Detail
Known As/Situated
Legal Description
Area
Dimensions
Title and Reference
Restrictions, Encumbrances, leases etc. noted therein
Recorded Ownership
Nature of interest in the property
Rating and taxing information
3.2 Planning Control
Zoning and Scheme Reference
Objectives of the zoning
Allowable uses without consent
Allowable uses with consent
Prohibited uses
Existing approvals and prior approvals and reference
Any Heritage implications
Planning requirements affecting any proposed uses
or development
Community and political environment
Any Approvals for nearby properties
Other broad Council policies which could affect
the property eg. buffer zones, height restrictions,
heritage areas etc.
Any particularly important State Environmental
Planning Policies
Any proposed changes of zoning or draft plans
Statutory Charges applicable
Landscaping requirements
Carparking requirements
Sunset clauses
Subdivision requirements
Floor Space Ratios
Site setbacks
Permitted densities
Planning Certificates sighted

3.3 City or Town (or nearby main town)
by name
Profile as relevant to the task and client
Provide extra detail for non-local clients and indicate
relative position to main centres
3.4 Location and Locality
Side of street and nearest cross street (distance
& direction)
Nature of street (highway, main arterial, local
through street, cul-de-sac)
Number of lanes, median strip
Traffic flow
Locality or suburb name
Km to CBD
Nearby development
Trend - redevelopment
Changes - traffic flow pattern, population,
demographics, new developments, existing traffic
generators ceasing or changing operations
Proximity to beneficial features
Any particularly adverse features

3.5 The Land
The site has been identified by reference to
(DP, Survey Plan etc.)
Shape
Size
Inside/corner
Elevation in relation to street level
Slope
Soil type
Fill
Landslip
Erosion risk
Drainage
Flooding or watercourse
Easements, (or service conduits without easements)
Suitability for building - geo-technical report required?
Possible encroachments, setbacks from apparent
boundaries
Impact of adjacent properties
Aspect
Views
Buffer zones
Other environmental hazards eg. wind, fire, salt air,
urban salinity
Hazardous or offensive development
Legal access
Physical ingress/egress for vehicles and pedestrians & ease of use.
Passing trade
Noise Nuisance including flight paths and road noise
Comment on history of site as a lead in on contamination
Any apparent cause for contamination concern
Is any proposed use likely to cause contamination
Air pollution
Mine subsidence proclamation area
Conservation orders or Heritage issues
Native Title – claim or prospects thereof
Rural - (additional to any relevant from above list)
Altitude (range?)
Rock
Millable timber
Carrying capacity
Rainfall incidence and variation
Land slip
Salting
Access to & within the property
Topography
Original timber
Average yields crops
Versatility of land use
Flooding
Weeds
Erosion
Soil compaction
Views
Soil types/areas
Timber remaining
Crop types typical and actual
Drought
Pests
Acid soils
Frost or hail prone
Home site
Various SEPP’s (NSW) including
SEPP 14 (Coastal Wetlands)
SEPP 30 (Feedlots & Piggeries)
SEPP 37 (Continued Mines & Extractive Industries)
SEPP 46 (Clearing - Flora & Fauna)
Farm Improvements (other than main buildings)
Internal roads
Erosion / landslip control measures
Fencing - boundary & subdivision
Water - natural, catchment, storage & reticulation, domestic supply
Irrigation - licences and details, controlling authority,
water supply source & cost, reliability & current
availability, delivery system & cost, layout, drainage.
Pasture - types, condition and fertiliser history
Plantations - type, number/area, age, condition, yields.
Timber regeneration areas / woodlots

3.6 Services
Electricity
Gas
Kerb & gutter
Schools m/km
Services adequate
Water
Phone
Footpath
Shops m/km
Distance to silos
Sewer/septic
Road surface
Transport m/km
Parking
Distance to Markets
Where relevant, provide location of services

3.7 Improvements
Main Structure
Present use
Building Type
Built circa/exact year
If strata, being one? of x units in the development

3.8 Construction
External walls
Floors
Roof covering
Wall frame
Footings
Roof frame
Internal linings
Windows
Ceiling linings
Shop front
Ceiling height
Awning
Accommodation / Use Areas
List main rooms / use areas (in a bulleted list
or run-on style)
Approximate Areas
List each main part of a building and show areas offset to the right.
As applicable:
Living areas m2
Patio & Verandah m2
Garages m2
Commercial Building m2 GBA/m2 NLA
Lockup Shop m2 NLA
Warehouse m2 GBA
Functional plan
Correct design criteria
If purpose built - adaptable? /alt. uses?
Adequacy of areas
Suit current use
Obsolescence
Loading areas
Design aesthetics
Any obvious non-compliance
Features and Standard
Built-in features
Floor coverings
Air conditioning
P.C. Items list/quality
Window coverings
Tenant improvements/fit-out
Light fittings
Building Services (mainly commercial & industrial)
Aircond./ventilation
Special Electrical
Elevators & escalators
Sprinklers
Lighting
Goods lift
Hydrants/fire hoses
Security system
Special Technology
Y2000 (Y2K) Compliance CGT Issues Impacting
Effect on property/business
Effect on value/security risk
Market sentiment on issue
Structural Condition
List any significant problems or state if none
readily apparent.
Note if engineer’s certificate required
Repairs and Maintenance
List any significant items/state if no readily apparent
major items outstanding
List major refurbishment or upgrading required and estimated cost.
Pests
Note any apparent problems/state if no termites
or pests evident.
Recommend inspection by reputable pest control
company if warranted
Occupational Health & Safety
Asbestos
Trade Waste
Un-healthy building
Farm Buildings and Structures
Brief description of use, size/capacity of each
in bulleted form.
Ancillary Improvements
List these in bulleted form broadly classified, (eg.
fencing, paving, landscaping, detached minor buildings,
carparking, service areas, signage, yard lights etc.)
If strata, general description of shared amenities,
facilities, common property.
3.9 Occupancy and Outgoings
Epitome of leases - following detail as available or appropriate
Premises identification
Lessee
Commenced
Expiry
Term
Commencing rent
Current (passing) rent
Total occupancy cost
Area occupied
Car spaces if included
Lessee outgoings
Review method & frequency
Next review
Option(s)
Use permitted by lease
Unusual provisions
Option to purchase
Original or copy
Sighted
Signed/Stamped
Comments
Occupancy status - vacant/owner-occupied/tenanted
Note areas unable to inspect and give reason
Sight rent review documents (comment if not available)
Terms certain remaining
Total Passing Rent
Naming rights rental
Face rents/effective rents
Overage rent
Rack rents
Reversions
Characteristics of the income stream
Security of rental income
Arrears or non-payment
Arms length dealing
Deposits or guarantees held
Tenant fitouts
Incentives given
Highlight leases expiring, options being exercised or new leases pending.
Tenancy mix
Vacancy factor
Vacancy history
Standing of major tenants
Any retail leases legislation compliance
If a project, asking rents and any pre-commitments
Incentives offered or required by the market to maintain or attract tenants
Is the property managed & if so does it appear effective
Is there any excess land for which no effective rent is paid
If the property is owner-occupied, what would be
reasonable market terms and conditions for a lease
Term
Options
Initial Rent
Review method
Review frequency
Outgoings responsibility
If the property is not leased at present, allowance for loss of rent and leasing up?
Outgoings (actual or estimated) and Recoveries (actual)
Outgoings Recoveries
Rates $ $
Land Tax $ $
Insurance $ $
Repairs and Maintenance $
Cleaning $ $
Air Conditioning $ $
Electricity $ $
Lift Maintenance $ $
Management $ $
Fire Protection $ $
Pest Control $ $
Security $ $
Body Corporate Fees $ $
TOTALS $ $
Outgoings equate to approximately $per m2 of net/ gross lettable area
Is major expenditure above normal R&M required to maintain rental levels? Comparison with normal building maintenance costs.
Rental Income Summary
Rental Income $
Plus Recoveries $
Gross Rental Income $
Less Outgoings $
Net Rental Income $

3.10 Trading
If a specialised trading property and goodwill is included,
consider the following:
Nature of trade and management
Comments about trade - past, present and trend.
Outline/summarise trading figures as supplied and/or adjusted
Adequacy of business records/financial returns kept
if inadequate or not available, what effect on capitalisation rate and marketability.
Business systems adequacy including Y2K compliance
Explain any adjustments
Treatment of chattels, plant and equipment

4.0 Project
4.1 Project Details
Describe project/renovation program
Building approval detail and conditions
Extent of plans and documentation prepared
Fees, levies and charges paid to date
Builder
Plans & Specifications
Estimated Cost
Licence No.
Engineer’s Details
Work by owner
Quote/Contract Price
Construction Period
Progress Inspections
Development Program
If work in progress, indicate:
stage of construction
Estimated cost of work carried out in relation to contract price
Estimated cost to complete the project under
the current contract
Estimated completion period

5.0 Market Analysis
5.1 Marketability
SWOT analysis - Strengths,Weaknesses, Opportunities & Threats - go through sections on property and project
to address significant aspects especially location, and if a project, timing.
Overall market appeal and/or status of the property
Any subdivision potential - position of any structures
Any onerous encumbrances on title
If any contamination, is stigma likely after remediation
Economic/functional obsolescence, costs and merits of remedying.
Code non-compliance - cost and allowable time
frame to meet requirements
Purpose built building - suitability for conversion
and cost
Year 2000 compliance - anything affected e.g. lifts, air conditioning.
CGT Impact on marketability, value and replacement
insurance
Alternative uses
Is existing use Highest and Best Use otherwise what is
Physical capacity of site
If a redevelopment site, demolition, site access problems or cramped site conditions.
Under/overcapitalisation
Any land surplus to current requirements or for which no rental return achieved
Native Title issues
Heritage/National Trust issues
Strength of tenancies
Any significant reversionary income
Upcoming vacancies
Likely tenant profile
Buyer motivation and requirements
Vendor motivation
How good is the total package
Comparative position in the market place - market segment
Any measures which would improve the property’s
market position and advantage
Is there any ‘marriage value’ potential
Is there any potential to fragment or disaggregate the property
Any inherent factors which could impact favourably or adversely on value
Any other special factors bearing in mind the purpose
of the Report
Marketing method alternatives
Marketing strategy
Any adverse impact of legislation e.g. Disability Discrimination Act

5.2 Condition of the Market
Supply - sales/leasing listings level, private offerings
Supply trend - new product being
constructed/developed, approved
Asking prices trend
Demand level - sales/leasing rate, enquiry level, pent up demand
Demand trend
Rates of Return (yield) trend
Buyer’s/Seller’s market
Current position in the property cycle
Prospect of market turning
Ease of sale/leasing - likely marketing/letting up period
Vacancy rate and trend
Rental value trend
Current marketing/leasing period and trend (if extended, give reasons)
Incentives being offered/demanded
Finance availability and cost
Building cost trend
Timing of project - anticipated market conditions
on completion
Existing competition - prospects of increased competition
Prospects of change in Council or Govt. policy or regulations
General economic indicators - CPI, interest rate climate, bond rate.
Prospect of market rising and/or falling in the short and medium term - local, national or international factors likely to /which might impact on market.
If rural enterprise, price trend for produce -
local & global factors affecting
Current seasonal conditions

5.3 Market Dynamics
Profile of sellers/buyers in this market segment
Most likely type of buyer
Profile of lessors/lessees in this market segment
Most likely type of lessee
Main market drivers
Considerations made by typical buyers/sellers, lessors/lessees
Investor activity
Mortgagee sales activity
Motivation of vendors and purchasers/lessors/lessees
Historical market volatility
Influence of marketing agents
Predominate sales/leasing method
Market sentiment - consumer & business confidence levels & trends, unemployment
Market price range and typical market segments

5.4 Market Data / Market Indicators
5.4.1 Property Sales
Sources of information
Sales details and analyses
Address/Name of property
Legal description
Date of Contract
Price
Land Area
Zoning
Improvements
Lessee
Term of lease
Net lettable area (NLA) - GBA for industrial
Net rent
Net Profit
Indicates - yield or appropriate unit of value
Comments (including any special conditions or circumstances)
Current/Most recent sale of the subject property - movement since
Asking prices (including subject property)
Offers (including for subject)
Evidence of market movement - recent and long term trend line.

5.4.2 Property Rentals
General summary of rental levels, or
When detail readily available and public knowledge:
Premises
Area occupied
Use permitted
Car spaces if included
Lessee/occupant
Term
Commenced
Expiry
Option(s)
Review method & frequency
Next review
Commencing rent
Current rent
Lessee outgoings
Total cost of occupancy
State if actual rents on subject are in line with the market
Any reversionary income for subject property
If a vacancy exists or occurs at present, could the area be leased at a similar rental and how long could it take to find a new tenant.
If a development project, are the asking rentals
achievable and sustainable
What is level of competition from existing developments and other proposals or developments which could come on-line in a similar marketing period.

5.4.3 Rates of Return
Discuss the relevance and application of each sale which indicates a cap. Rate.
Considered range applicable to this property

5.4.4 Developer’s Profit
Where available, provide analysed market evidence
of developer’s profit.
Where analysed evidence is not available, provide indication of profit expectation

5.4.5 Vacancy Rates
Historical and current vacancy rate for the subject property
Historical and current vacancy rate in this market segment
Vacancy rate trend.

6.0 Assessments
6.1 Valuation Approaches
Indicate which methods of valuation adopted and why
6.1.1 Sales Comparison Approach
Brief explanation of what the approach does
Compare sales with subject property making appropriate adjustments for differences in the property itself and for such factors as movement in the market and in circumstances of sale, or alternatively
Deduce rates per unit of comparison (m2, unit/flat,
hectare etc) and apply to the subject property.
Indicate value or value range indicated

6.1.2 Capitalisation Approach
Brief explanation of what the approach does
Set out the approach, which could be along the following lines (adjusted as necessary) and include reference to section of report the figure used was derived from Rental Income (section 6.1.2) $
Plus Recoveries (section 6.1.2) $
Gross Rental $
Less Vacancy (section 6.1.2) $
Outgoings (section x.x.x) $
Net Rental $
Capitalised (section x.x.x) @ % = $
@ % = $
@ % = $
Adjustments
Where no effective rent paid for ‘excess land’
Plus Excess land (section 6.1.2) $
Where major expenditure required to achieve adopted rental level
Less Significant
R & M (section 6.1.2) $
Cost to Convert (section 6.1.2) $
Where vacant or valued on vacant possession basis
Less Loss of Rent (section6.1.2) $
Leasing Fees (section 6.1.2) $
Indicated Value Range $

6.1.3 Summation Approach
Brief explanation of what the approach does
Set out the approach, which could be along the
following lines (adjusted as necessary) and include
reference to section of report the figure used was
derived from
As applicable:
Land $
Main Structure $
Other Improvements $
Holding Costs & Entrepreneurial Profit $
Goodwill $
Licence $
Indicated Value $

6.1.4 Hypothetical Development/Residual Value Analysis
Brief explanation of what the approach does
Set out the approach as appropriate to the particular exercise

6.1.5 Financial Modelling/Discounted Cash Flow
Brief explanation of what the approach does
Set out the approach as appropriate

6.2 Assessment(s)
Explain market sensitivity - value is most probable selling price within a range
Insert value definition as appropriate:
Market Value
Alternate use value
Value as if complete/Value on completion
Rental value etc
Reconcile the approaches adopted
Indicate why any of the usual methods may not have been used.
Set out the value(s) adopted

7.0 Project Feasibility (Evaluation)
7.1 Feasibility Study (Project Evaluation)
Refer Real Property Guidance Note 7 [ANZRPGN 7]
7.2 Sensitivity Analysis
Refer Real Property Guidance Note 7 [ANZRPGN 7]

8.0 Issues
In this Section, identify and explain the relevance of the issues (under the following headings as relevant) that impact on the needs and objectives of the client or the purpose of the report.
8.1 Subject Property
8.2 Project
8.3 Neighbouring Properties and Neighbourhood
8.4 Market
8.5 Assessments
8.6 Feasibility
9.0 Risk Analysis
9.1 The Property/Project,The Market
and Trends
10.0 Strategy (if relevant)
10.1 Alternatives
List
11.0 Recommendations(if relevant)
List
ANNEXURES
Include as necessary to support and enhance report.