Real Estate Management in the True Cloud

GAAP in Commercial Real Estate Sublease Accounting

Our interpretation of GAAP sublease analysis according to FASB accounting rules is as follows:
Overview: Start by determining the net present value of all rental costs including write-offs of depreciation and subleasing costs, offset by the sublease income (the NPV write-off). The Income Statement (Profit & Loss statement) is then charged the NPV write-off and it is charged an interest expense based on a declining balance of the NPV write-off, the accretion interest expense. The declining balance is determined by taking the net monthly costs (including sublease income) and the interest expense and deducting that cost from the NPV write-off.

Real Estate Cash Flow Analysis vs. P&L

You have probably heard people say, “Profitability is key.” Profitability is different from Cash Flow. Profitability is the number reported to Wall Street and quoted in newspapers in earnings per share (EPS). Cash Flow represents the cash coming in (sales/revenues collected) less money actually spent (salaries, rent, costs of doing business, paying off money borrowed, etc.).

Lucernex acquires LseMod

Dallas, TX (October 27, 2009) – Lucernex Technologies, an innovative developer of business intelligence software for real estate management and development, today announced the acquisition of Lease Cost Solutions Inc, the developers of LseMod, the industry leader in lease modeling and financial analysis software for the commercial, industrial and office real estate industry.