In one sentence
A financial statement showing a property's actual income and expenses over the most recent twelve months.
The longer version
The T-12 is the workhorse operating statement in commercial real estate diligence: twelve months of actual performance, month by month. It grounds underwriting in reality rather than projection.
Lenders compare the T-12 to the rent roll and the pro forma, looking for consistency and for the trend the recent months reveal.
Common questions
- What is a T-12 in real estate?
- A financial statement showing a property's actual income and expenses over the most recent twelve months, usually month by month.
- Why do lenders want a T-12?
- Because it shows actual performance rather than projections, and reveals trends, seasonality and one-time items.
- How is a T-12 different from an annual financial statement?
- A T-12 covers the latest twelve months on a rolling basis, so it is more current than a calendar-year statement.
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