In one sentence
A projection of a property's future income, expenses, and cash flow, used to underwrite value-add and development deals.
The longer version
A pro forma models what a property will produce after a business plan executes: renovated units, higher rents, or a completed build. It contrasts with in-place financials, which show current reality.
Lenders read pro formas skeptically, testing the rent growth, cost, and timing assumptions, because the loan's cushion depends on projections coming true.
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