ARGUS Certification Exam Flashcards

ARGUS Certification Exam Flashcards

True of False: An ARGUS Valuation - DCF cannot

calculate a base year prior to the analysis start date True Present Value DiscountingPg. 46 Rebursable ExpensesProperty expenses the landlord will recover. All entires will be available for reimbursement by the tenants.When entering the Property Size, enter the (blank) areanet rentable Property Level Reports can be viewedAnnually, Monthly, Quarterly, Semi- Annually Once revenues, expenses, and costs have been entered the next step is...to enter the purchase price along with a resale calculation Upon Expiration drop-down menuControl how the program will blend the MLA numbers Where is the import Graphic icon located? Upper left corner of the executive dashboard What are examples of miscellaneous revenues? Vending machines or rental of roof antennas If the amount of revenue is set to (blank), the Area/Constant column will be unavailable $ Amount, % of EGR, % of line Task Pane provides a number of shortcuts and convenient

functions, which include:

Getting Started, ARGUS Alerts, ARGUS Valuation - DCF Wizard, and Shared Workspace Formula for the Market Rate Upon Expiration calculations[Renewal Mkt% x Renewal Mkt Numbers] + [New Mkt% + new Mkt Numbers] = Market Rate Inputs of Property DescriptionBasic property information - timing area measures, and inflation To access the Cap Rate Matrix ReportReports, Property Level..., Check Prospective Present Vale Options, Check Cap Rate Matrix % of LineMisc revenue; the allows the revenue to be based on a percentage of other items in the property What are three ways a tenant can reimburse expenses?None, Net, or Base Stop % of EGRMisc. Revenue; percentage of the Effective Gross Income Default inflation is?0% unless changed Analysis Start DateSets the date at which ARGUS Valuation - DCF calculations will occur. For example, month 6 is relative to the analysis start date (not Reporting Start Date) Prospective Resale and IRR Summary Report Shows what we think we will get back and when Property LibraryWindow allows you to view a list of property files in the active directory when other ARGUS Valuation - DCF property files are open.Reporting Start Date- Sets the date at which reports will begin- Does not alter the timing of base calculations in the program Frequency of Reimbursable Expenses can be entered as (x) in the drop down menu Annually, Monthly, Quarterly Where is the Dashboard Template icon located? The toolbar of the executive dashboard The Capitalization Periodis a 12-month period of income into which the cap rate is divided

Property Timing tab is found where?Property Description window Yield Menu contains (4)Property Purchase Price, Property Resale calculation, Present Value Discount rate, and Debt Financing When entering a inflation percentage that is less than 1%, it must be in what form?decimal The Import Graphics iconImport images and will be included on each new property created with that template The main screen that displays once a file has been created or opened Executive Dashboard Where can you find the Cap Rate Matrix?Bottom right icon of the Property Resale screen What kind of reimbursement method is used for gross leases?Base Stop The Globe and Magnifying Glass iconIs a link to view the property in Google Maps Difference between Cap Period Year One and First 12 Months Is when the first year of the analysis is less than 12 months

(ex: 1/12 - 6/12)

Common Reimburment ExpensesCAM, Taxes, Insurance, Repairs & Maintence What is the first window to appear when creating a new file?Property Description window Where is the password button found?Property Description window Market Leasing Assumptions are used for what purpose?To control what happens to the contract lease after it expires and goes to market Property Timing tab includes:Analysis start date, Reporting Start Date, and # of years to Report or End Date In the Executive Dashboard, where are the links to the input screens found?Icons on the tool bar as well as the links in grey type Possible Options of the Upon Expiration drop-down menu (6) Market, Renew, Vacate, Option, ReAbsorb, Non-Contiguous

Cap Period: First 12 Monthsuse the first 12 months of the analysis

Leasing Commissions default unit is...Percentage of a tenant's total rent Reimbursable Expenses may be entered as (7) Simple Amount, Detailed Amount, % of EGR, $/Area, % of Constant, % of Line, What are the possible misc. revenues that can be selected? (5) % of EGR, $ Amount, $/Area, % of Constant, % of Line Property Type can or cannot be changed once selected?CANNOT!Direct Cap Capitalization Options (3)Year One, Year Starting in Month, First 12 months Capitalization Period: Year OneUse the first calendar year of the analysis period Tenant Improvement default unit is...$/SqFt Default unit of Area Measures is?Square Feet Market Leasing Assumptions can be accessed from (2)Executive Dashboard(Market drop down menu, market leasing assumptions) or from the Rent Roll Capitalize NOIDivides the NOI in the final analysis year by the cap rate % of Fixed columnDetermines the amount of the expense ( or revenue) that is based on occupancy Cap Rate MatrixAllows your to input a range of Cap Rates that will calculate a range of PVs in a Cap Rate Matrix Report

If an inflation field is left empty...it will default to the General Inflation Rate To create or modify a dashboard select the (blank)Dashboard template icon Miscellaneous RevenuesAre property-level income items not paid by the tenants.Any operating revenue not paid by the tenants can be entered in this screen.When creating a ARGUS file it is best to start with...the Property Description In the Rent Roll, enter the Base/Min Rent field as (3)Amount per area, total amount for a given period, or percent of market rent Property Level reports can be accessed in (2) waysProperty level Reports icon in the toolbar or Reports Menu

• Property Level selection

Apply Rate to following year income (Property Resale)Resale proceeds will be calculated using the following year of the analysis Why is inflation in year 1 never available? Because it does not occur until the beginning of the 2nd year Inflation input into Year 2 will apply to which years numbers?Year 1 Reporting Start Date must fall (where) relative to the Analysis Start Date on or after the Analysis Start Date Where are the Export, Print, Calculate, and Pause button located?Bottom right hand corner Getting Started (Task Pane) - 4Create new files, open recent files, connect to ARGUS website, and access a shared workplace online Analysis of up to (xx) years may be conducted 40 Cap Period: Year Starting in Month xselect a specific month within the 12 month period Calculate Resale for All Years (Property Resale) Calculate and display proceeds for each analysis year (for reporting purposes) Ways to access the Rent RollFrom tenant menu --> select Rent Roll, or clock the Rent Roll icon on the toolbar If the analysis begins midyear...ARGUS will calculate a stub year with the partial year in the first year % of ConstantMisc Revenue; interpreted as a percentage of the Amount column.How would you blend the Direct Capitalization with the Unleveraged Present Value of the property? (ONLY ASIA) Select the Calculate a Blended Value (ONLY ASIA) What are the (blank) per-formatted Dashboard templates? - 6 Valuation Summary, Classic, Investment, Appraisal,Lending, and Navigation Direct Capitalization is useful for brokers becausethey typically determine the value of the property using the "going in" cap rate Gross Proceeds from Sale = (formula)NOI/Cap Rate All entries that begin with a "relative" start date will be relative to which date?Analysis Start Date Market (Upon Expiration selection)Weighted average of new and renewal numbers

Default Lease Type choices are:Office, Retail, Industrial, Pad Site and Storage

Ways to calculate the resale at the end of the analysis (3)Capitalize NOI, Apply Rate to following year income, Calculate Resale for All Years

Typical CapEx are:Stuctural or Capital reserves, building repairs, or

improvements (anything to improve te property value that is not routine) Net reimbursementsTriple net leases - tenant will pay their natural pro-rata share of all Reimbursable Expenses Property Resale windowWhere resale assumptions are made $ AmountMisc. Revenue; interpreted as a full payment amount Items of Property Library Toolbar (5)Email a file to someone, report on a batch of ARGUS files, create a portfolio, compare two or more files, add selected files to the Tenant Registry Base StopTypically 1 year and in Office spaces

True of False: Extra months are always placed at the

beginning of the analysis TRUE Toolbar (on the Property Library window) Allows you to navigate to directories and to perform actions on one or multiple ARGUS files without opening the files themselves ARGUS AlertsLogin to the ARGUS website to receive instant alerts, news, and other information Capital ExpendituresNot considered part of a property's NOI and appear below the income line on the CF in the Capital Costs section $/AreaMisc. Revenue; multiplied by the area measure selected in the area column Rent AbatementNumber of months of free rent for the current lease

STARTED AT THE BEGINNING OF THE LEASE TERM

Leasing CostsConsist of Tenant Improvements and Leasing Commissions Percentages of inflation may be entered as... positive or negative whole numbers, or a decimal Executive DashboardBasic summary of all the Year 1 information in an ARGUS Valuation - DCF file Present Value Discountingtarget internal rate of return