IFRS forecast methodology for Direct-Hold Solution vehicles

@@ -24,7 +24,7 @@ Woodfine prepares an IFRS-styled, engine-generated 10-year financial forecast fo

- The forecast follows the IFRS 18 operating/investing/financing categorization and the two mandatory subtotals that apply once IFRS 18 takes effect for periods beginning on or after 1 January 2027; net operating income is retained only as a voluntary legacy subtotal.
- Investment property is carried at cost under IAS 40 in the primary statements; fair value is measured through an income-capitalization technique and disclosed separately as a Level 3 measurement under IFRS 13, together with the sensitivity analysis IFRS 13 requires for unobservable inputs.
- Interest coverage and loan-to-value are recalculated for every forecast year against the debenture covenant described in [[interest-coverage-ratio|Interest Coverage Ratio]] and [[debt-service-and-financing-structure|Debt Service and Financing Structure]].
- Interest coverage and loan-to-value are recalculated for every forecast year against the debenture covenant described in Interest Coverage Ratio and [[debt-service-and-financing-structure|Debt Service and Financing Structure]].
- Every significant assumption behind the forecast is disclosed, and the forecast states plainly that it is not an offering memorandum — consistent with the [[forward-looking-statements-advisory|Forward-Looking Statements Advisory]] that governs this wiki.

## Categorizing the forecast under IFRS 18
@@ -41,7 +41,7 @@ Where a forecast models limited partnership units issued to a manager-affiliated

## Supplementary metrics, financing mechanics, and the FOFI disclosure discipline

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-ratio|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, and 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.
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, and 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.

@@ -51,7 +51,7 @@ None of this is disclosed informally. A forecast of this kind is prepared under 

- [[non-ifrs-measures-explained|Non-IFRS Measures Explained]] — how NAV, FFO, and interest coverage relate to the IFRS figures a forecast produces
- [[forward-looking-statements-advisory|Forward-Looking Statements Advisory]] — the wiki's canonical treatment of forward-looking and forecast language
- [[interest-coverage-ratio|Interest Coverage Ratio]] — the covenant tracked against debenture financing in a forecast
- Interest Coverage Ratio — the covenant tracked against debenture financing in a forecast
- [[debt-service-and-financing-structure|Debt Service and Financing Structure]] — how the debenture financing a forecast models is structured
- [[principal-alignment-fee-preservation|Principal Alignment and Fee Preservation]] — the fee structure disclosed as a related-party transaction in a forecast's notes