Explore the Best Technology for Discounted Cash Flow Modeling & Valuation in Commercial Real Estate

Hi, my name is Lynn Clarke, head of customer success here at Rockport VAL. Today, I would like to show you an overview of the awesome and innovative Rockport VAL platform. Let's begin. With VAL being a true cloud-based app, you can log in from anywhere on any device. Just enter your credentials and go. Once logged in, we're brought to the main properties page. Here, you could sort, filter, and search by many criteria, including data attributes such as property type, MSA, or region.

VAL supports all property types, including office, retail, industrial, multifamily, hotel, mixed-use, and more, each with its own dedicated module. With our proprietary import tool, you can import a competitor's property model. The complete model will be fully rendered in VAL. No need to recreate existing models. For our demonstration today, we will use a sample office model. At the top of the screen, we see a blue header bar containing key performance indicators. VAL's auto-calculation technology saves data as it is entered and updates results live.

In the upper right-hand corner is our game-changing share feature. Simply click share, and VAL will generate a link for you to share your model. You can include this in an email or deal room and share it with as many counterparties and colleagues as you want. Even if the recipient doesn't have a VAL license, they will still have free read, write, editable access to the shared model in VAL. Leverage VAL's API technology to integrate VAL with any platform to create a seamless workflow for your users.

Here, we have integrated with a data provider to display comparable data in the market based on the address and property type. This is a powerful tool as you benchmark and analyze the performance of your asset. From the navigation pane, let's take a closer look at VAL's input screens, starting with income and expenses. Easily populate data in your model by leveraging VAL's copy-and-paste feature. Enter a value as the annual amount or click on the pencil icon to enter a value in a specific month and click and drag to replicate the value across all years.

Capture all your tenant data in VAL's robust rent roll screen where you can model complex lease structures including tenant size, lease dates, base rent, rent steps, free rent, percentage rent, recoveries, leasing costs, and renewal assumptions. VAL stacking plan provides a visual representation of your commercial real estate property showing tenants on each floor, which suites are vacant, and the lease expiration. Create an unlimited number of "what if" scenarios to stress key assumptions and understand how fluctuations in the market can impact your property all in one model.

This unique to VAL feature has quickly become a user favorite to make better decisions, mitigate risk, and gain an understanding of how this economy will affect your portfolio. Create an upside, downside, or any number of scenarios that all live within one model. VAL scenario reports graphically compare data attributes across scenarios. We can dive deeper to view the cash flow comparison report to gain an understanding of how a different scenario will impact the cash flow at the line-item level or drill down to the tenant level.

Whether basing your valuation from a discounted cash flow or direct cap, VAL allows the flexibility to create an unlimited number of valuations where you can enter in a different discount rate, cap rate, or hold period. Again, all living within one model. The valuation results are displayed in the first column, and the default valuation is displayed on the top header bar. On the debt screen, we can enter up to a five-tier capital stack plus a refinance loan. Enter a specific amount for the loan to fund or utilize VAL's loan sizing feature where you can enter a LTV, DSCR, or debt yield for VAL to calculate the maximum loan amount.

Whether your loan is structured as an I.O. or based on an amortization schedule, VAL's sophisticated debt feature can easily calculate your loan and includes complexities such as floating rate debt, extension options, and future funding. In addition to debt, reserves can be created in VAL to fund capital costs or shortfalls. There are over eighty-five industry-standard reports available in VAL, all exportable into Excel. I will feature a few. Our cash flow report can be viewed monthly, annually, or quarterly, and includes drill-down capability to display data at the tenant level.

Our investment analysis report displays key performing metrics such as IRR, cash on cash, and equity multiples. In addition, you can toggle to show leverage to include debt service, credit metrics, and levered returns. In our valuation reports, easily select a valuation from the drop-down menu to calculate results. Here, we have the sale yield matrix report, which shows you the values based on a range of cap rates and a range of discount rates. The prospective present value summary report shows the value during each year of the hold in addition to the residual value and going in cap rate.

Numerous audit reports are available for transparency into VAL's calculation. Here is the recovery audit report where you can select a specific tenant, and VAL will generate a report to clearly display the recovery calculation, including expense pool totals, pro rata share calculations, base stops, and ceilings. Understand the tenant exposure in your property by viewing VAL's lease expiration report displaying how much square footage is expiring every year. Gain an understanding of market assumptions in our rollover report showing not only the assumptions entered, but how the assumptions are being impacted by growth every year.

Next, let's talk about portfolios. Easily roll up properties into a portfolio to generate a consolidated cash flow and valuation report. VAL's drill-down capability allows you to dive deeper to the property level in addition to the tenant level. At the portfolio level, select scenarios to analyze the portfolio key performing metrics if there are fluctuations in the market, understand the overall tenant exposure across your portfolio, and easily have access to our portfolio valuation reports. In addition to our numerous reports included in VAL, you can synchronize your proprietary Excel model with VAL.

We understand real estate professionals are still using Excel to analyze their portfolios. With our Excel add-in, you can seamlessly move VALs data calculations into your templates and continue your same workflow and processes in Excel. We've covered a lot in this demo. However, only skimmed the surface of VAL's full range of capabilities. Head over to our website to have access to dozens of training videos across all property types, as well as downloadable PDF training guides. Within VAL, click on the orange question mark to have access to hundreds of step-by-step tutorials.

To experience VAL, reach out to our sales team for a free trial. Thank you for watching and have a great day.