What is T-12 (Trailing Twelve Months Operating Statement)?
A financial statement showing a property's actual income and expenses over the most recent twelve-month period.
T-12 (Trailing Twelve Months Operating Statement) in commercial lending practice
The T-12 provides a current snapshot of property performance and is preferred over annual statements in CRE underwriting because it captures the most recent operating trends, occupancy changes, and expense patterns. T-12 income is reconciled against the rent roll to confirm reported revenue, and T-12 expenses are normalized to remove non-recurring items before being used to calculate NOI.
Related terms
Related concepts in commercial underwriting
NOI (Net Operating Income)
Total property revenue minus operating expenses, excluding debt service, capital expenditures, depreciation, and income taxes.
Read definitionCRE (Commercial Real Estate)
Real property used for business purposes, including office, retail, industrial, multifamily (5+ units), and hospitality properties.
Read definitionRent Roll
A detailed schedule of all tenants in an income-producing property, listing tenant names, unit numbers, lease start and end dates, monthly rent amounts, security deposits, and any concessions.
Read definitionCap Rate (Capitalization Rate)
The ratio of a property's net operating income (NOI) to its current market value or purchase price, expressed as a percentage.
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How T-12 (Trailing Twelve Months Operating Statement) shows up in AI underwriting
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