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Woodfine Capital Projects

Commercial Real Estate Financial Metrics

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@@ -27,7 +27,7 @@ expenses (property taxes, insurance, utilities, management, maintenance) but bef
service, capital expenditure, depreciation, and income tax. NOI is the primary input to
property valuation through the direct capitalisation method. Two variants are in use: *cash
NOI* (actual cash flows) and *GAAP NOI* (straight-line rent under IFRS 16, with tenant
improvement allowances amortised). See [[net-operating-income]].
improvement allowances amortised). See net-operating-income.

**Effective gross income (EGI)** — Gross potential income less vacancy and credit loss. The
intermediate step between the theoretical maximum revenue and NOI.
@@ -59,13 +59,13 @@ Institutional lenders typically require DSCR of 1.20–1.30× at origination.
principal repayment). Used as the distribution-gating metric in the direct-hold programme:
no distribution is declared when the ICR is below 1.2×. ICR is a more lenient measure than
DSCR when the mortgage has an amortising structure, because DSCR includes principal repayment
in the denominator while ICR excludes it. See [[interest-rate-transmission]].
in the denominator while ICR excludes it. See interest-rate-transmission.

## Valuation metrics

**Capitalisation rate (cap rate)** — NOI divided by market value. Applied in reverse (value
= NOI ÷ cap rate) in the direct capitalisation valuation method. Market cap rates are
observable from comparable transactions. See [[capitalization-rate]].
observable from comparable transactions. See capitalization-rate.

**Net asset value (NAV)** — The sum of the fair values of all properties in the portfolio
less all debt obligations and other liabilities. NAV is the primary balance-sheet-based
@@ -107,6 +107,6 @@ the resilience of an asset to vacancy increases.

## See also

- [[net-operating-income]] — the full description of the NOI metric and its variants
- [[capitalization-rate]] — the valuation metric and its sensitivity to market conditions
- [[interest-rate-transmission]] — how changes in financing costs affect the leverage metrics
- net-operating-income — the full description of the NOI metric and its variants
- capitalization-rate — the valuation metric and its sensitivity to market conditions
- interest-rate-transmission — how changes in financing costs affect the leverage metrics
Important Information

Important Information

Securities offering. Woodfine Capital Projects Inc. ("Woodfine") sponsors real-property direct-hold solutions. Interests in those solutions are offered only to investors who qualify under an applicable prospectus exemption — including the accredited-investor exemption under National Instrument 45-106 — Prospectus Exemptions, and equivalent exemptions in other applicable jurisdictions. Content on this wiki is provided for general informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any offering is made exclusively by means of the applicable Private Placement Memorandum, which prospective investors should review, together with their own professional advisors, before investing.

Scope. This wiki describes Woodfine's research methodology, geographic data platform, and related activities at a high level and is qualified in its entirety by the applicable Private Placement Memorandum and the governing documents of the relevant issuer.

Risk. Investment in real-property direct-hold solutions involves significant risk, including possible loss of capital. Past performance is not indicative of future results. References to structural features such as advisory fees, transferability, and net asset value methodology describe the contractual terms of the direct-hold solutions and are not representations as to investment outcomes or returns.

Forward-looking statements. Statements that are not historical facts may constitute forward-looking information within the meaning of applicable Canadian securities laws. Such statements are subject to known and unknown risks, uncertainties and assumptions, and actual results may differ materially. Woodfine undertakes no obligation to update such statements except as required by law.

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Jurisdiction. Woodfine Capital Projects Inc. is organized in British Columbia, Canada. References to the Sovereign Data Foundation on this wiki describe a planned or intended initiative only, not a current equity holder or active governance body.

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