REIT Operating Model part 9, The Balance Sheet. We now have enough information from our calculations page to begin filling in the balance sheet. We're not gonna complete the entire balance sheet, we're going to leave out cash, debt, and equity as those are going to require some additional calculations. But if we go to our operating models tab, we can now begin linking the balance sheet accounts one by one to our calculations page. We'll take our net real estate assets and link to our ending net real estate asset amount.

Our co-investments will come right from our co-investment amounts. And we're just making sure that we get the right. Two things, the right row, which in this case is not the total amount of the real estate assets but the actual equity co-investment amount that this particular REIT owns. And we also wanna make sure that we're always working in column G, which is our first projected year. Again, we're gonna skip over the cash and equivalence. We're gonna go to notes and other receivables. Now, we don't have a calculation for this but this is just a standard operating working asset account. So, we're going to use our assumption above of 5% and that's gonna be tied to our rental revenue.

And now, that's complete. Same thing for prepaids. 2.8% times our rental revenue. And again, what we wanna do is we wanna leverage off of our already pre-built formulas when we did our historical years. We know that these formulas work because our balance check in those years is zero and that means that these numbers were entered incorrectly and the formulas are correct. So, rather than recreate the wheel, and risk making an additional careless error, we're gonna just copy these formulas over because we know that they're as good as gold.

Down in the liabilities section, we're going to look for a current liabilities assumption and that is going to be 22.6% of the rental revenue.

And the same thing for other liabilities, 2.4% of the rental revenue.

Copy those across. Now, for the redeemable non-controlling interest, we have an assumption above and that's gonna stay the same and that's pretty common in this type of model. Stockholders equity, we're going to skip. Non controlling interest, we've calculated on our calculations page.

And now we can simply copy over our totals. Now, obviously we're not going to be in balance because we have not calculated the cash, the debt, or the stockholders' equity but those will come in an additional step.