IFRS forecast methodology for Direct-Hold Solution vehicles

@@ -44,7 +44,7 @@ Where a forecast models limited partnership units issued to a manager-affiliated

Alongside the IFRS-styled primary statements, the supplementary schedule presents net asset value (NAV) per unit — fair value of equity divided by units outstanding — next to an indicative secondary-market value per unit; both are non-IFRS, management-defined measures that do not substitute for any IFRS subtotal, in the sense described in [[non-ifrs-measures-explained|Non-IFRS Measures Explained]]. Interest coverage and loan-to-value — the latter computed as long-term debenture debt divided by the fair value, not the cost, of investment property — are recalculated for every forecast year as debentures are drawn to fund development and later partially repaid. Funds from operations, defined in [[cre-financial-metrics|Commercial Real Estate Financial Metrics]], is presented as the cash-basis counterpart to IFRS net income, which the forecast's net income figure does not track directly because it includes non-cash fair-value remeasurement effects.

The development-phase financing itself — a first secured mortgage debenture — is modeled at amortised cost using the effective-interest method: a facility cost is netted against the carrying amount and amortised into finance cost over the debenture's term, so the effective borrowing rate the forecast shows exceeds the coupon on its face. Distributions are reconciled to distributable income, not IFRS net income, by excluding non-cash fair-value remeasurement gains that are not available to distribute; a forecast of this kind targets distributions of not less than 90% of distributable income until aggregate distributions equal 100% of contributed capital, after which remaining amounts are modeled as applied first to debenture redemption. The forecast's notes also describe how ISSB climate-related disclosure — IFRS S1 and IFRS S2 — informs the site-selection, design, and capitalisation-rate assumptions feeding the model, ahead of any requirement to apply those standards formally.
The development-phase financing itself — a first secured mortgage debenture — is modeled at amortised cost using the effective-interest method: a facility cost is netted against the carrying amount and amortised into finance cost over the debenture's term, so the effective borrowing rate the forecast shows exceeds the coupon on its face. Distributions are reconciled to distributable income, not IFRS net income, by excluding non-cash fair-value remeasurement gains that are not available to distribute. A forecast of this kind targets distributions of not less than 90% of distributable income until aggregate distributions equal 100% of contributed capital, after which remaining amounts are modeled as applied first to debenture redemption. The forecast's notes also describe how ISSB climate-related disclosure — IFRS S1 and IFRS S2 — informs the site-selection, design, and capitalisation-rate assumptions feeding the model, ahead of any requirement to apply those standards formally.

None of this is disclosed informally. A forecast of this kind is prepared under the future-oriented financial information regime that applies to a British Columbia reporting issuer under National Instrument 51-102. Every significant assumption behind the forecast is identified, a caution that actual results may vary materially from what is forecasted accompanies the document, and the forecast states explicitly that it does not constitute, and is not part of, an offering memorandum or a solicitation. See [[forward-looking-statements-advisory|Forward-Looking Statements Advisory]] for how this wiki treats forward-looking language generally.