CaseMark Managing Real Estate Fund Reporting
Structures real estate fund reporting with property-level performance, valuation updates, and distribution analysis.
When To Use
- Preparing quarterly or annual investor reports for open-end or closed-end real estate funds
- Calculating fund-level and property-level returns (gross/net IRR, equity multiple, cash-on-cash)
- Documenting NAV per unit/share with supporting valuation detail
- Summarizing distribution waterfalls, promote calculations, and LP/GP splits
- Reporting on portfolio composition, occupancy trends, and capital deployment status
- Producing REIT-specific metrics (FFO, AFFO, same-store NOI growth) for public or non-traded vehicles
Inputs To Gather
- Fund structure details: fund name, vintage year, fund size, investment period status, vehicle type (open-end, closed-end, REIT)
- Property-level financials: rent rolls, operating statements (actual vs. budget), capital expenditure schedules, and debt summaries for each asset
- Valuation data: most recent third-party appraisals or internal valuations, cap rate assumptions, discount rate inputs, and comparable sale data
- Capital account records: contributions called, unfunded commitments, distributions paid (return of capital vs. income), and current LP/GP account balances
- Waterfall terms: preferred return hurdle(s), catch-up provisions, carried interest splits, clawback triggers from the LPA
- Market data: submarket vacancy rates, rent growth trends, transaction volume, and macroeconomic indicators relevant to asset class
- Prior period reports: previous quarter's NAV, return figures, and any restatements or methodology changes
Workflow
Validate source data — Reconcile property-level operating statements to the general ledger. Confirm that appraisal dates are current (within reporting quarter). Cross-check capital account balances against the fund administrator's records. Flag any asset with stale valuation data as [VERIFY].
Calculate property-level performance — For each asset, compute:
- Net Operating Income (NOI) actual vs. budget and vs. prior period
- Occupancy rate (physical and economic)
- Debt service coverage ratio and loan-to-value
- Unrealized gain/loss based on current valuation vs. cost basis
- Capital expenditure spend vs. approved budget
Roll up fund-level metrics — Aggregate property results into portfolio-level figures:
- Gross and net asset value (NAV), with a bridge from prior-period NAV (contributions + appreciation + income − distributions − fees − depreciation)
- Gross and net IRR (since inception and for the reporting period) [VERIFY calculation methodology against LPA]
- Total value to paid-in capital (TVPI) and distributions to paid-in capital (DPI)
- For REIT vehicles: FFO, AFFO, and same-store NOI growth
Run distribution waterfall — Apply the LPA waterfall to determine:
- Preferred return accrual and whether the hurdle has been met
- Catch-up allocation status
- Carried interest earned (realized and unrealized)
- Projected next distribution amount and composition (return of capital vs. gain vs. income)
Draft narrative sections — Write a portfolio overview covering:
- Market conditions and their impact on fund strategy
- Significant leasing events, dispositions, acquisitions, or refinancings during the period
- Material risks: lease expirations, tenant credit concerns, floating-rate debt exposure, construction delays
- Capital deployment pipeline and remaining dry powder
Assemble the report — Organize into standard sections: executive summary, portfolio summary table, individual property pages, financial statements, capital account statement, waterfall summary, and appendices (glossary, methodology notes).
Output
A structured fund report containing:
- Executive summary with headline metrics (NAV, IRR, equity multiple, distributions paid)
- Portfolio dashboard showing each property's NOI, occupancy, valuation, and debt metrics in a comparative table
- Individual property pages with operating detail, tenancy schedule highlights, and valuation commentary
- Capital account statement showing LP/GP balances, contributions, distributions, and ending balances
- Waterfall summary with preferred return status, promote calculation, and projected next distribution
- Market commentary section tying macro and submarket trends to fund positioning
- NAV bridge reconciling beginning to ending NAV with each component identified
Quality Checks
- Confirm NAV bridge balances — beginning NAV plus all components must equal ending NAV exactly
- Verify IRR and equity multiple calculations against an independent model or fund administrator output [VERIFY]
- Ensure property valuations are dated within the reporting period; flag any appraisal older than six months
- Check that waterfall calculations conform to the specific LPA terms — preferred return day-count convention, compounding frequency, and hurdle reset provisions vary by fund [VERIFY against LPA]
- Validate that REIT metrics (FFO/AFFO) follow NAREIT definitions if the fund reports under that standard [VERIFY]
- Confirm all distributions are correctly classified (return of capital, capital gains, ordinary income) for tax reporting consistency
- Cross-check that total fund-level NOI equals the sum of individual property NOIs after eliminations
- Review for consistent rounding, date references, and terminology across all sections