REIT Operating Model part 5, The Income Statement. Now that we've completed our property revenue and property expenses, we can actually move over to the operating model tab and complete our income statement. First thing we'll notice is that we have some more assumptions on the income statement that relate to more of the overall REIT corporate structure. I also have some rows highlighted here in yellow and these are the rows that we are going to actually hold off on for right now because in the case of depreciation and amortization and equity income from co-investments, they come from other calculations that we haven't done yet. Or in the case of interest income and interest expense, we're gonna wait and do last. In terms of the revenues from rental and other property, revenues, we can go ahead and link that to our calculations. Now, the management and other fees from affiliates, we actually have an assumption for and what that's saying, is that we have a 3% growth rate. So, it's gonna be equal to one plus. And we generally like to put the assumption first in a model. Although this is a tower model and the assumptions are coming from the same page, putting the assumption first in a model is a best practice when it comes time to audit. So, the growth rate times the previous year. And now, I can take my historical formula, which has already been done for me. And typically, we always put the historicals in first and then get the historicals to match with our historical source. And not only does that give us the historical information that we need to build the model, but it also gives us formulas that we can then use and have confidence in that they're correct. And we know that they're correct because our historicals typically have to match the historical source. Now we'll move down to expenses. Now, the property operating expenses, we're gonna get those from the calculations page as well. And I have a note here that says that they include the real estate taxes, and that's important because if you recall the way we calculated these operating expenses was to actually back into them using the NOI and property taxes are a critical part of the NOI so we know that they're included here. In terms of the corporate level property management expenses, we've got an assumption for that that is based on our rental revenue. Again, skipping over DNA. We have GNA, which is, again, based on our total revenue.

And then we have other expenses which are based on total revenue.

I will copy my formula from the previous year and just to check my total expenses is the sum of my total expenses. And now, I can calculate my earnings from operations. And again, if I can use a previously built formula, I want want to do that as opposed to recreating a new formula. Now, sanity check will show us that our numbers look quite dramatically off here. But that's because we haven't included depreciation which is a huge chunk. So, that's just going to be off for the time being. I'm gonna skip the next three cells and I've got a loss on early retirement of debt where I have a dollar value for that. And then I have the gain on other real estate transactions and that I'm going to get from my calculations if you recall from when we modeled our asset dispositions. We have a gain on the sale of real estate assets of 25,000 and I've got my net income in here as well, which matches, of course, this formula from the previous year. Skipping over my last highlighted row, which is the NCI, again, will calculate that in a minute. I've got a partially complete net income attributable to the controlling interest or net income attributable to the parent of 990,550.