Our NOI (net operating income) audit provides a comprehensive analysis of a given asset's financial performance, with a particular focus on the trailing 12-month period. We validate the historical operating statements through a rigorous set of agreed-upon procedures. We make normalizing adjustments to the asset's operating history in order to provide a more accurate representation of its current financial performance. Our clients use our findings to establish an in-place NOI as a starting point for making future financial projections.

The analysis generally includes the following steps:

• Reconcile total revenue and total expenses from the general ledger to the operating statement.

• Select a representative sample of leases for review and confirm the economic terms of the leases as compared to the most recent rent roll.

• Compare total revenues for the last 12 months from the operating statement to total cash deposits from the bank statements.

• Review real estate tax bills, service contracts, payroll expenses, and insurance invoices to determine actual costs incurred.

• Perform a fluctuation analysis of each expense component for the most recent rolling 12 month period and the last two calendar/fiscal years for all operating expenses.

• As necessary, complete tenant-by-tenant cash receipts testing, accounts receivable analysis, and common area maintenance (CAM) review.