Single Tenant Net Lease (NNN) - Investment & Valuation Model (Excel XLSX)

Single tenant property is property that is fully occupied by a single user. Single tenant properties often feature a triple-net (NNN) lease structure and generally have remaining lease terms of at least 10 years. Single-tenant, net-leased properties, which sometimes use the acronym STNL, can be attractive to individual investors due to their low management responsibilities, predictable cash flow and often long lease terms.

This Financial Model presents a business scenario of a Single Tenant Net Lease Property, details monthly cash inflow/outflow, and calculates the maximum equity required to execute the investment. It includes assumptions for purchase and residual price, tenant's credit rating, rental income, operating and capital expenses and financing through Debt & Equity, etc. Return metrics include unlevered and levered internal rate of return and equity multiple, cash on cash return, net equity profit, and more.

Outputs of the template include Monthly Cash Flow Report for Acquisition and Operating phases, Annual Cash Flow report (incl. operating cash flow, property's residual value and annual returns), Investors Returns Waterfall and a Project Summary Dashboard summarizing investment results.

The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.

Model Structure

•  General Setup Tab
Investment-related inputs including Property Metrics, Timing, Acquisition and Residual Value Assumptions, Tenant's Credit Rating, Rental, Opex & CapEx Assumptions and Financing Assumptions

•  Monthly Cash Flow Tab
Presents all the cash flows over monthly periods from the acquisition of the property to operating cash flow calculated from the inputs in the General

•  Annual Cash Flow Tab
A roll-up of the monthly cash flows into annual periods including Operating Cash Flow, Property Residual Value, Debt Schedule, calculation of annual returns on an unlevered and levered basis and project valuation based on Credit and Residual Discount Rates.

•  Investor Returns Waterfall Tab
Includes a standard 4-tier IRR hurdle waterfall model to distribute proceeds between investors.

•  Project Summary
A professional dashboard presenting the summary of the cash flow and returns of the proposed investment

Detailed instructions on the use of the model are included in the Excel file.

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