Pro Forma 101

A pro forma analysis is a set of assumptions and calculations that projects the financial return that a proposed real estate development is likely to create.

It begins by describing the proposed project in quantifiable terms. Moving through the spreadsheet, the user estimates revenues that are likely to be obtained, the costs that will have to be incurred, and the net financial return that the developer expects to achieve on their given project.

The pro forma assists in better project understanding by storing and displaying all project financial information in one place providing the user with an appreciation for the push and pull of costs and income, time and risk, and how changing one factor can affect a whole domino chain of other factors.

The MEDC Community Development Division requires all development projects seeking MEDC financial assistance to complete the MEDC pro forma for their project. Please see the link to the pro forma document below as well as a step-by-step user guide developed by MEDC staff. Any questions should be directed to your CATeam representative.

MEDC Development & Operating Pro Forma 
Pro Forma User Guide