What's the difference between T12 and Pro Forma?

A T12 shows actual historical performance. A pro forma shows projected future performance. Investors use the T12 to ground-truth the broker's pro forma assumptions.

What's included in this T12 template?

Our template includes income categories (rental income, other income, vacancy), operating expenses (taxes, insurance, utilities, repairs, management), monthly breakdown columns, and auto-calculated NOI.

Can I automate T12 data entry?

Yes. Primer by PropRise extracts T12 data from any document format (PDFs, scans, Excel) and maps it directly to your underwriting model. No manual data entry required.

How many months of operating data should I request?

Request at least 24 months of operating statements (two years of T12s) whenever possible. This allows you to identify year-over-year trends in income growth, expense escalation, and occupancy changes. For due diligence, also request monthly bank statements to verify that the T12 figures match actual deposits and payments.

Free T12 Template for Real Estate Underwriting

Q: What is a T12 in real estate?

A T12 (or 'trailing twelve') is a financial statement showing a property's income and expenses over the past 12 months. It's the most common document used to evaluate actual operating performance during real estate underwriting.

Q: How do you calculate NOI from a T12?

NOI (Net Operating Income) = Effective Gross Income - Total Operating Expenses. Start with gross rental income, add other income (parking, laundry, fees), subtract vacancy and concession losses to get effective gross income, then subtract all operating expenses (taxes, insurance, utilities, management, repairs). The result is NOI. Do not include debt service, capital expenditures, or depreciation.

Understanding T12s

What is a T12 in real estate?

A T12 (or "trailing twelve") is a financial statement showing a property's income and expenses over the past 12 months. It's the most common document used to evaluate actual operating performance during real estate underwriting.

Unlike pro forma projections, a T12 shows what the property actually earned and spent. It's the foundation for calculating Net Operating Income (NOI) and validating broker assumptions.

T12 (Trailing Twelve)

Shows actual historical performance. What the property really earned and spent over the past year.

Pro Forma

Shows projected future performance. What the broker thinks the property will earn.

Smart underwriters use the T12 to ground-truth the broker's pro forma assumptions.

Template Contents

Everything you need for NOI analysis

A complete T12 structure designed by acquisitions analysts.

Income Categories

Gross rental income, other income (parking, laundry, fees), vacancy loss, and effective gross income.

Operating Expenses

Property taxes, insurance, utilities, repairs & maintenance, management fees, and more.

Monthly Breakdown

12 columns for month-over-month analysis. Spot trends, seasonality, and anomalies.

NOI Calculation

Auto-calculated Net Operating Income for each month and the trailing 12-month total.

Annualized Totals

Summary column with trailing 12-month totals for every line item. Ready for your model.

Expense Ratio

Pre-built formulas for expense ratio, vacancy rate, and other key performance metrics.

Quick Start

How to use this template

Four steps to organize your T12 financials.

01

Download and save

Download the Excel file and save a copy for each property. Works with Excel 2016+ or Google Sheets.

02

Enter monthly data

Input income and expense data from the seller's financials, property manager reports, or broker package.

03

Review NOI and ratios

Check the trailing 12-month NOI, expense ratio, and vacancy rate. Compare to broker projections.

04

Feed your model

Link or copy the organized data into your underwriting model. Use actual T12 data to validate pro forma assumptions.

FAQ

Common questions

Why do investors rely on T12s?

Investors use T12s to calculate Net Operating Income (NOI), validate broker projections, identify expense trends, and model realistic cash flows. A T12 is typically provided by the seller or property manager and is essential for accurate valuation. It shows what the property actually earned, not what someone hopes it will earn.

What expense categories are included?

Property taxes, insurance, utilities, repairs & maintenance, management fees, payroll, landscaping, pest control, and a catch-all "other" category. Customize as needed.

Can I add more line items?

Yes. The template is fully editable. Add or remove rows to match your expense categories. Just update the summary formulas to include new rows.

What about capital expenditures?

CapEx is typically tracked separately from the T12 (which shows operating expenses). This template focuses on operating income and expenses for NOI calculation.

Is it really free?

Yes, completely free. We built this to help CRE professionals. If you want to automate data entry entirely, check out Primer.

How do you calculate NOI from a T12?

NOI = Effective Gross Income - Total Operating Expenses. Start with gross rental income, add other income, subtract vacancy losses for effective gross income, then subtract all operating expenses. Do not include debt service, capital expenditures, or depreciation. Sources: NAA, IREM.

What is a good expense ratio for multifamily?

Typical multifamily expense ratios range from 35-50% of effective gross income. Newer Class A properties often run 35-40%, while older Class C properties may run 45-55%. An expense ratio significantly below market norms may indicate deferred maintenance or understated expenses.

T12 Template for Real Estate