Contracts - columns and fields
 | Forecasting assumptions for contracts with an indefinite period are configured in the Turnover & Privatization screen. |
Field / column | Description |
|---|---|
Code | Displays the property code. |
Lessee | Displays the name of the tenant (lessee) associated with the contract. |
Rent duration | Indicates whether a contract is automatically renewed upon expiry (indefinite period contract) or requires renegotiation (fixed-term contract). Each option follows a distinct expiry management model for financial forecasting. |
Start date | The date on which the contract began. |
Notice period | The period, expressed in months, that the lessee must give in advance to terminate the contract. If no expiry date is provided or if the given expiry date is earlier than the forecasted start date, the notice period is used to determine the expiry date. |
Expiry date | The date on which the current contract is set to expire. If the expiry date is not provided or is earlier than the start date forecast, it will be calculated as the start date forecast plus the notice period. The expiry date is extended by the option term when an option is exercised in a process. If exercised options are provided from the source, it is assumed that the expiry date has already been adjusted for those options. The expiry date is automatically capped at the termination date. If the company setting Expiry date indefinite period contracts is set to Ignore expiry date and the Turnover frequency indefinite period contracts is start forecast year or cash flow frequency, the expiry date will be the valuation date. If the turnover frequency is mid forecast year, the expiry date will be six months after the start date forecast minus one day. If the turnover frequency is end forecast year, the expiry date will be twelve months after the start date forecast minus one day. |
Termination date | The date on which the lessor, the lessee, or both terminated the contract. If a break option has been exercised, the termination date is capped at the break date. |
WALT (Weighted Average Lease Term) | The time difference between the reference date and the earlier of the first tenant break or the lease expiry. |
Estimated Rental Value (ERV) | Displays the estimated annual rental value of the unit/property based on market conditions. It's the total of all rentable units that are not vacant and that are active on the reference date or start date of the contract. You can select one of the following options: • per annum/quarter/month/week • m2 NFA p.a. / p.q./ p.m. / p.w. • m2 GFA p.a. / p.q./ p.m. / p.w. • m2 ITZA p.a. / p.q./ p.m. / p.w. • per unit p.a. / p.q./ p.m. / p.w. |
Passing rent | Displays the actual rent being paid by the tenant. You can select one of the following options: • per annum/quarter/month/week • m2 NFA p.a. / p.q./ p.m. / p.w. • m2 GFA p.a. / p.q./ p.m. / p.w. • m2 ITZA p.a. / p.q./ p.m. / p.w. • per unit p.a. / p.q./ p.m. / p.w. |
Over/under rent | Displays the percentage difference between Passing rent and Estimated Rental Value (ERV), indicating whether the lease is above or below market rates. |
Secured rental income | The total cash flow amounts received up to the contract’s expiry date. |
NFA (Net Floor Area) | Displays the total usable area (in square meters or feet) leased under the contract. It's the total of all rentable units that are not vacant and that are active on the reference date or start date of the contract. |
Recovery structure | If recoverable expenses are reimbursed by the lessee, the recovery structure becomes available for viewing. This structure is interactive—clicking it reveals the associated recovery lines, the underlying recoverable expenses, and the pro-rata share allocated to each recovery line. |
VAT liable | Indicates whether the contract is subject to Value Added Tax (VAT), Yes or No. When combined with VAT expenses, this setting can trigger irrecoverable VAT. |
Renewal rent | Allows the user to specify the renewal rent for a contract. This rent is considered for the percentage that is not turned over after expiry and when the renewal rent type equals Renewal Rent. This is a grouped column consisting of Quantity, Method, and Outcome. You can collapse or expand this group; when collapsed, only the outcome is visible. If required, you can select another method from the drop-down list. Available options: • m2 NFA p.a. / p.q./ p.m. / p.w. • m2 GFA p.a. / p.q./ p.m. / p.w. • m2 ITZA p.a. / p.q./ p.m. / p.w. • per unit p.a. / p.q./ p.m. / p.w. |
Renewal rent type | The renewal rent type can be set for the initial expiry and for continuous expiry after the initial expiry. Initial Represents the initial renewal rent type, which specifies the type of rent applied when a lessee renews their contract for the first time after the original contract expires. Continuous Represents the continuous renewal rent type, which specifies the type of rent applied when a lessee renews their contract after the initial renewal. Specify the renewal rent type. You can select one of the following options: • ERV (Estimated Rental Value) • Passing rent • Renewal rent • ERV upward-only • Review rent |
Tenant turnover rate | The tenant turnover rate can be set for the initial expiry and for continuous expiry after the initial expiry. Initial The likelihood, expressed as a percentage, that a lessee will terminate its contract at the first expiry date. Continuous Represents the number of months it takes to relet a rentable unit each time it becomes vacant after the initial relet. |
Relet term | The relet term is the rental period after expiry (for an indefinite period) or after the vacancy term (for a fixed-term contract). The relet term can be set for the initial relet and for continuous relets after the initial relet term. Initial The number of months a new lessee will rent a unit when it becomes vacant for the first time. Continuous The number of months a new lessee will rent a unit each time it becomes vacant after the initial relet. |
Vacancy term | Set the expected period (in months) the unit will remain vacant after a tenant leaves. This can be set for the initial expiry and for continuous expiry after the initial expiry. Initial The number of months it takes to relet a unit when it first becomes vacant. Continuous The number of months it takes to relet a unit each time it becomes vacant after the initial relet. |
Rent Free And Cash Incentives | Rent-free and cash incentives can be applied to the portion that is renewed, renewed and relet, or relet. You can select one of the following options: • Only relet • Only renewal • Both renewal and relet |
Rent-free method | Indicates whether the rent-free term should be distributed evenly across the relet term. This setting applies to both the initial and continued rent-free terms and is only relevant for fixed-term contracts. You can select one of the following options: • Contract start • Spread |
Rent-free term | Set the duration (in months) for which a new tenant will not pay rent. This can be set for the initial expiry and for continuous expiry after the initial expiry. Initial The number of months a lessor provides a rent-free period as an incentive for a potential lessee to rent a unit at the estimated rental value for the first relet after the initial contract expiry. Continuous The number of months a lessor provides a rent-free period as an incentive for a potential lessee to rent a unit at the estimated rental value after the initial relet. |
Cash incentive | Enter any financial incentives offered to attract new tenants. This can be set for the initial expiry and for continuous expiry after the initial expiry. Initial The amount of money provided to the lessee as an incentive at the start of the contract following the initial contract expiry. Continuous The amount of money provided to the lessee as an incentive at the start of the contract after the initial relet. |
| | Bulk input options are available for each column, allowing you to apply changes to multiple contracts at once instead of editing them individually. |