T-12
A property's income and expense statement for the most recent 12 months, month by month. Buyers and lenders use it with the rent roll to judge actual net operating income.
Also called: T12, trailing 12, trailing twelve months, TTM, operating statement
Related terms
A list of every unit or tenant in a property with rent, lease dates, deposits and other terms. Buyers and lenders use it to verify income and spot lease rollover risk.
A property's yearly income minus operating expenses, before mortgage payments and income taxes. It is the base number for cap rate and many commercial valuations.
The ongoing costs of running a property, such as taxes, insurance, repairs, management, utilities and HOA dues. They do not include mortgage payments or major capital improvements.
A marketing document for a commercial property for sale, with photos, location details, financials, rent roll and tenant information. Brokers often release it only after buyers sign a confidentiality agreement.
Net operating income divided by the property's price or value. It shows the yearly return before financing and is used to compare properties and estimate value.