Financial Analysis — Atlas Underwriting

Total development cost

$586.21M

Excludes selling costs (netted off revenue)

Loan commitment

$360.28M

65% applied LTC on $554.27M eligible costs

Total equity invested

$208.18M

Peak requirement $208.18M

Total accrued interest

$21.80M

$18.63M capitalised · $3.16M cash paid

Initial sources and uses

Every period-0 cash movement: what funds the land, any day-one construction spend and the upfront financing fees.

Sponsor equity at closing$59.65M

Total initial sources$59.65M

Land / acquisition$53.00M

Upfront financing fees$6.65M

Total initial uses$59.65M

Balance check: Initial sources − initial uses = 0

Full project cash flow reconciliation

Every dollar in and out across the whole development and sellout cycle, including recycled sales proceeds.

Senior debt draws (cash)$179.98M

Capitalised interest funded by debt$18.63M

Sponsor equity contributions$208.18M

Gross sales proceeds$732.97M

Total sources$1.14B

Land / acquisition$53.00M

Hard costs$384.00M

Soft costs$84.48M

Contingency$32.79M

Financing fees$10.14M

Cash interest paid$3.16M

Capitalised interest$18.63M

Selling costs$76.96M

Loan principal repayment$198.61M

Equity distributions$277.98M

Total uses$1.14B

Balance check: Sources − uses = 0

$94.71M of uses is funded by sales proceeds recycled during the sellout, not by the loan commitment or equity.

Development economics

Method A: selling costs are netted off revenue and are not part of the cost base.

Gross sellout revenue$820.80M

Adjusted sellout revenue$732.97M

Selling costs$76.96M

Net sellout proceeds$656.01M

Land / acquisition$53.00M

Hard costs$384.00M

Soft costs$84.48M

Contingency$32.79M

Financing costs (interest + fees)$31.93M

Total development cost$586.21M

Development profit$69.81M

Profit margin on cost11.9%

Profit margin on adjusted revenue9.5%

Equity cash flows

The identical series used for IRR, NPV and the equity multiple.

Development and absorption projection

Each row reconciles arithmetically; net equity cash flow is the series behind IRR, NPV and the equity multiple.

Period	Construction spend	Units contracted	Units closed	Gross sales proceeds	Selling costs	Net sales proceeds	Debt draws	Interest	Loan repayment	Equity contributions	Equity distributions	Net equity cash flow	Ending loan balance	Remaining inventory
Y0 · Construction	$53.00M	0.0	0.0	$0	$0	$0	$0	$0	$0	$59.65M	$0	-$59.65M	$0	96.0
Y1 · Construction	$100.25M	14.0	0.0	$0	$0	$0	$0	$0	$0	$102.06M	$0	-$102.06M	$0	96.0
Y2 · Construction	$225.57M	14.0	0.0	$0	$0	$0	$179.98M	$6.07M	$0	$46.47M	$0	-$46.47M	$186.05M	96.0
Y3 · Construction	$175.45M	36.0	43.0	$366.49M	$38.48M	$328.01M	$0	$12.56M	$151.75M	$0	$0	$0	$46.86M	53.0
Y4 · Sellout	$0	22.0	43.0	$366.49M	$38.48M	$328.01M	$0	$3.16M	$46.86M	$0	$277.98M	$277.98M	$0	10.0
Y5 · Sellout	$0	0.0	0.0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	10.0

Construction loan schedule

Closing balance = opening balance + new draws + capitalised interest − principal repayment. This is a drawn construction facility, not an amortising loan.

Schedule reconciles — every period ties to the closing balance.Debt fully repaid from net sales proceeds — no payoff shortfall.

Period	Opening balance	New draws	Capitalized interest	Cash interest	Principal repayment	Closing balance	Remaining commitment
Y0	$0	$0	$0	$0	$0	$0	$360.28M
Y1	$0	$0	$0	$0	$0	$0	$360.28M
Y2	$0	$179.98M	$6.07M	$0	$0	$186.05M	$174.22M
Y3	$186.05M	$0	$12.56M	$0	$151.75M	$46.86M	$161.67M
Y4	$46.86M	$0	$0	$3.16M	$46.86M	$0	$161.67M
Y5	$0	$0	$0	$0	$0	$0	$161.67M

Peak loan balance$198.61M

Effective LTC (peak balance ÷ eligible costs)35.8%

Total debt drawn (incl. capitalised interest)$198.61M

Financing fees$10.14M

Calculation audit

Every headline metric with its formula, inputs and result — engine V6.5-P2C.

Development profit$69.81M

Net sellout proceeds − total development cost (excl. selling costs)

Adjusted sellout revenue$732.97M

Selling costs$76.96M

Net sellout proceeds$656.01M

Total development cost$586.21M

Result $69.81M · units USD · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Margin on cost11.9%

Development profit ÷ total development cost

Development profit$69.81M

Total development cost$586.21M

Result 11.9% · units % · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Profit margin on adjusted revenue9.5%

Development profit ÷ adjusted sellout revenue (gross sellout × sellout rate × (1 − cancellations)); the denominator is NOT net sellout proceeds

Development profit$69.81M

Gross sellout revenue$820.80M

Adjusted sellout revenue (denominator)$732.97M

Net sellout proceeds (not used here)$656.01M

Result 9.5% · units % · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Equity multiple1.34x

Total equity distributions ÷ total equity contributions (every capital call is included)

Initial equity (period 0)$59.65M

Additional equity contributions$148.52M

Period 0 capital call (Construction)$59.65M — $53.00M land and closing costs · $6.65M cash interest and fees not covered by proceeds

Period 1 capital call (Construction)$102.06M — $100.25M construction cost funding beyond debt capacity · $1.80M cash interest and fees not covered by proceeds

Period 2 capital call (Construction)$46.47M — $45.59M construction cost funding beyond debt capacity · $871,125 cash interest and fees not covered by proceeds

Total equity invested$208.18M

Total equity distributions$277.98M

Result 1.34x · units x · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Levered equity IRR9.8%

IRR of the annual net equity cash-flow series

Cash-flow series-$59.65M, -$102.06M, -$46.47M, $0, $277.98M, $0

Periods6 annual periods

SolvableYes — the series contains a positive distribution

Result 9.8% · units % p.a. · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Project IRR (unlevered)11.2%

IRR of net sales proceeds less project costs, before debt

Cash-flow series-$53.00M, -$100.25M, -$225.57M, $152.56M, $328.01M, $0

Result 11.2% · units % p.a. · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

NPV at target return-$49.04M

NPV of the same equity cash-flow series discounted at the target IRR

Discount rate22.0%

SeriesIdentical to the levered IRR series

Result -$49.04M · units USD · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Peak equity requirement$208.18M

Maximum cumulative negative equity cash flow

Cumulative series low point-$208.18M

Result $208.18M · units USD · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Loan payoff coverage6.93x

Cash available for debt in the payoff period ÷ debt due in that period. Equity used to cover a shortfall is never counted as available cash, so coverage stays below 1.00x whenever a capital call is required.

Payoff periodPeriod 4 (Sellout)

Gross sales proceeds in period$366.49M

Less: Selling costs-$38.48M

Less: Construction spend funded from proceeds-$0

Less: Cash interest and fees paid-$3.16M

Cash available for debt$324.84M

Opening loan balance$46.86M

New draws in period$0

Capitalised interest in period$0

Total debt due at payoff$46.86M

Shortfall funded by an equity capital callNone — debt fully repaid from proceeds

Surplus after repayment$277.98M

Result 6.93x · units x · Payoff period 4 · engine V6.5-P2C

Loan commitment$360.28M

Applied LTC × eligible project costs, capped by the maximum loan amount

Total development cost$586.21M

Eligible costs (land + hard + soft + contingency)$554.27M

Ineligible costs (financing)$31.93M

Applied LTC (lower of LTC input and covenant)65.0%

Uncapped commitment$360.28M

Maximum loan amountNo cap

Final loan commitment$360.28M

Result $360.28M · units USD · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Interest expense$21.80M

Σ average outstanding balance × interest rate; accrued = capitalised + cash paid

Interest rate6.8%

Total accrued interest$21.80M

Capitalised interest$18.63M

Cash-paid interest$3.16M

Interest included in development cost$21.80M

Result $21.80M · units USD · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Break-even price per sqft$1,698/sqft

Total development cost ÷ (sellable area × effective sellout rate × (1 − selling cost %))

Total development cost$586.21M

Sellable area432,000 sqft

Sellout rate94.0%

Cancellation rate5.0%

Effective sale rate89.3%

Selling costs (commission, closing, marketing, incentives)10.5%

Underwritten price$1,900/sqft

Result $1,698/sqft · units USD / sqft · Periods 0–5 (3y construction + 2y sellout) · engine V6.5-P2C

Return summary

The same reconciled series behind every return figure shown on the dashboard.

Levered equity IRR

Below target

9.8%

Project IRR (unlevered)

11.2%

Equity multiple

Below target

1.34x

Net sellout proceeds

$656.01M