Student Housing Feasibility Financial Model - 10-Year DCF Valuation (Excel XLSX)

BENEFITS OF DOCUMENT

1. Investment Viability: Provides insights into profitability, returns, and risk assessment.
2. Strategic Planning: Helps in optimizing rental pricing, development timelines, and operational efficiency.
3. Decision-Making: Supports informed decisions on project funding and expansion opportunities.

DESCRIPTION

This product (Student Housing Feasibility Financial Model - 10-Year DCF Valuation) is an Excel template (XLSX), which you can download immediately upon purchase.

The Student Housing Feasibility Financial Model with a 10-Year DCF (Discounted Cash Flow) and Valuation provides a detailed financial analysis for student housing developments. It includes projections for occupancy rates, rental income, operating expenses, and construction costs.

This model helps assess long-term profitability, investment viability, and financing needs. Additionally, it produces pro forma cash flows, net present value (NPV), internal rate of return (IRR), and payback period to support decision-making and strategic planning.

Key Components:
1. Occupancy Rates: Projections for housing capacity utilization.
2. Revenue Streams: Income from rental fees, and additional services.
3. Operating Expenses: Costs for maintenance, utilities, property management, and staffing.
4. Development Costs: Breakdown of construction, land acquisition, and financing expenses.
5. 10-Year DCF and Valuation: Financial projections, including discounted cash flows and valuation.
6. Pro Forma Cash Flows: Detailed cash flows monthly over 10 yrs.
7. Feasibility KPIs: Net present value, % returns, cash on cash, payback period.

Key Benefits:
1. Investment Viability: Provides insights into profitability, returns, and risk assessment.
2. Strategic Planning: Helps in optimizing rental pricing, development timelines, and operational efficiency.
3. Decision-Making: Supports informed decisions on project funding and expansion opportunities.
4. Investor Appeal: A robust financial model to present to stakeholders and secure funding.

So, a quick overview of the model, in the contents tab you can see the structure of the model and by clicking on any of the headlines to be redirected to the relevant worksheet.

On the manual tab you can feed the general information for the model such as: model name, responsible, timeline of the model and date and currency conventions.

Additionally there is a description of the color coding of the model in the same tab. Inputs are always depicted with a yellow fill and blue letters, call up (that is direct links from other cells) are filled in light blue with blue letters while calculations are depicted with white fill and black characters.

There is also a color coding for the various tabs of the model. Yellow tabs are mostly assumptions tabs, grey tabs are calculations tabs, blue tabs are outputs tabs (that is effectively results or graphs) and finally light blue tabs are admin tabs (for example: the cover page, contents and checks).

Moving on to the inputs tab, you can adjust the various assumptions of the model based on the specifications and requirements of your business (in yellow whatever can be amended as an assumption). So effectively you can adjust a set of inputs such as construction costs (Land & Related Costs, Administrative Costs, Permits and Other, Hard Costs, Building Operations, Closing Costs, Finance Costs), and the relevant debt gearing of the financing. Also, you can amend occupancy rates and rooms rents along with other additional services. Expenses are separated into direct, indirect and other expenses. Afterwards you can set debt financing assumptions (interest rates, tenor in years, loan type, and debt issuance costs), and valuation assumptions such as the exit year when the property will be sold, the exit cap rate and selling costs, as well as the discount rates used (project and equity).

On the calculation tab, all calculations are performed. The calculations follow the same logical flow as the inputs tab. As already mentioned, no inputs from the user are needed here, as all the inputs are fed in the yellow cells on the inputs tab mainly. So, in this tab construction costs, revenues, expenses, financing flows and free cash flows are calculated.

On the Outputs tab everything is aggregated into a cash flow statement, together with a free cash flow on a project basis as well as on an equity basis. The same is done on a yearly basis on the next Output tab.

The most important investment metrics are presented on the ratios tab where you will find all the relevant KPIs summarized.

Additionally on the charts tab, a series of charts are presented: sources and uses, construction costs, revenues, expenses, net operating income, debt service, debt balance, debt service coverage ratio, debt yield, internal rate of returns, net present values, cash on cash and cap rate evolution.

Finally the checks tab where the most critical checks are aggregated. Whenever you see an error message on any page, you should consult this page to see where the errors come from.
Important Notice: Yellow indicates inputs and assumptions that the user can change, blue cells are used for called up cells, and white cells with black characters indicates calculation cells.

Source: Best Practices in Integrated Financial Model, Real Estate Excel: Student Housing Feasibility Financial Model - 10-Year DCF Valuation Excel (XLSX) Spreadsheet, Big4WallStreet