# Pro Forma

*Real Estate — Finicade finance glossary*

A pro forma is the projected income statement for a property, showing expected rent, expenses and cash flow. Sponsors present pro formas; buyers should rebuild them. The recurring pattern of optimism is specific and checkable: vacancy set too low, maintenance and capital reserves omitted, rent growth extrapolated from a boom, and an exit cap rate lower than the entry one for no stated reason.

**Also known as:** proforma, pro forma projection, deal model

**Related terms:** [Net Operating Income](https://finicade.com/glossary/net-operating-income), [Cap Rate](https://finicade.com/glossary/cap-rate), [Real Estate Syndication](https://finicade.com/glossary/real-estate-syndication), [Vacancy Rate](https://finicade.com/glossary/vacancy-rate), [Discounted Cash Flow (DCF)](https://finicade.com/glossary/dcf)

Source: https://finicade.com/glossary/pro-forma