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ARGUS CERTIFICATION PRACTICE TEST, ARGUS
CERTIFICATION EXAM
True or False: ARGUS Enterprise merges three industry standard solutions: ARGUS Valuation- DCF, ARGUS Asset Management, and ARGUS Valuation-Capitalisation - Answers- True In ARGUS Enterprise you can utilize shortcut keyboard commands to navigate within certain sections of the program. - Answers- True In AE, a user can add over 100 properties into a portfolio. - Answers- True Which is a benefit to utilizing a Chart of Accounts? a) Easier to track Revenues/Expenses b) Standardizes portfolio for names of all Expenses/Revenues c) Helps with accounting system integration d) All of the above - Answers- All of the above In ARGUS Enterprise, you can only assign one Chart of Accounts to a portfolio. - Answers- True The Discard Changes option will discard only the last change you have made to the property record. - Answers- False Only users with appropriate permissions can access all of the features in the Control Panel. - Answers- True To lock down a specific property and restrict who can edit it, click the _____________ button located in the ARGUS Enterprise Ribbon bar. - Answers- Check Out Property True or False: You can import and/or export v15 DCF files from ARGUS Enterprise. - Answers- True The Expense Inflation Rate will be the default percentage for: a) Operating Expenses b) Non-Operating Expenses c) Capital Expenses d) All of the above - Answers- All of the above True or False: Every inflation category must be given a number or it will default to the General Inflation Rate. - Answers- False
Assuming a 60% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis (revenue is $13,000 with fixed percentage of 0%). - Answers- $7, (.613000) Assuming a 0% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - Answers- $ Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - Answers- $13, When your resale calculation is set to CAP NOI (12 months after sale), which year's NOI will be used when analyzing a 6-year analysis? - Answers- The 7th years NOI If 12% is a desired return, enter 12% in the ________________ parent tab. - Answers- Valuation What will LB Corporation pay for reimbursements in 2016 if 2016 is the base year in a base year stop structure? - Answers- $ What will LB Corporation pay for reimbursements in 2017? - Answers- The amount of 2017 total operating expenses over 2016 total operating expenses What will LB Corporation pay for reimbursements in 2018? - Answers- The amount of 2018 total operating expenses over 2016 total operating expenses If a tenant's space is available, but sitting vacant before they move in and you want to show that vacancy on reports, what do you need to enter in for the Lease dates? - Answers- The Available Date needs to be when the space is actually available and the Start Date needs to be when the tenant's lease begins. True or False: Step Rent increases can be applied in the Step Rent field or in the Base Rent varies window. - Answers- True Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalizes the NOI 12 months after sale? - Answers- (2021 NOI / 10% Cap Rate)(1.0 - 3% adjustment) Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalises the NOI of the sale year? - Answers- (202 NOI / 10% Cap Rate)*(1.0 - 3% adjustment) When using an Available date that is before the Start date, the loss in potential rent (Base Rental Revenue) can be shown on which report? - Answers- Lease Audit ______________________ is used in retail properties where tenants are expected to pay a percentage of their sales to the property owner. - Answers- Percentage Rent
What is the Capital Expense amount that will appear on the Cash Flow? - Answers- $63,654??? Free Rent, by default, kick in at the beginning of the _________. - Answers- Tenant's Lease Start Date The default recovery structure in ARGUS enterprise is __________. - Answers- Net The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease. - Answers- False. The Start Date represents the start of the tenants lease. True or False: By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease. - Answers- True True or False: The Upon Expiration field within the Market Leasing profile allows users to select a different Market Leasing profile to be used after the first Market Leasing term is over. - Answers- True Contractual Renewal: a) Utilizes the Renew Market Leasing profile terms b) Utilizes the New Market Leasing profile terms c) Inserts a new contract lease into the Rent Roll d) None of the above - Answers- c) Inserts a new contract lease The inflation rates are displayed on which report? - Answers- Property Summary Which report displays New Market, Renewal Market, and Weighted Average results? - Answers- Assumptions Report Which report within Portfolio Level Reports will show individual property information that makes up the selected cash flow totals? - Answers- Cash Flow Detail All of the following are options for exporting Portfolio Level Reporting except: a) Excel b) Tiff c) PDF d) HTML - Answers- d) HTML Task Pane provides a number of shortcuts and convenient functions, which include: - Answers- Getting Started, ARGUS Alerts, ARGUS Valuation - DCF Wizard, and Shared Workspace Getting Started (Task Pane) - 4 - Answers- Create new files, open recent files, connect to ARGUS website, and access a shared workplace online
ARGUS Alerts - Answers- Login to the ARGUS website to receive instant alerts, news, and other information Property Library - Answers- Window allows you to view a list of property files in the active directory when other ARGUS Valuation - DCF property files are open. Toolbar (on the Property Library window) - Answers- Allows you to navigate to directories and to perform actions on one or multiple ARGUS files without opening the files themselves Items of Property Library Toolbar (5) - Answers- Email a file to someone, report on a batch of ARGUS files, create a portfolio, compare two or more files, add selected files to the Tenant Registry When creating a ARGUS file it is best to start with... - Answers- the Property Description Inputs of Property Description - Answers- Basic property information - timing area measures, and inflation What is the first window to appear when creating a new file? - Answers- Property Description window Where is the password button found? - Answers- Property Description window Property Type can or cannot be changed once selected? - Answers- CANNOT! Property Timing tab is found where? - Answers- Property Description window Property Timing tab includes: - Answers- Analysis start date, Reporting Start Date, and
of years to Report or End Date
Analysis Start Date - Answers- Sets the date at which ARGUS Valuation - DCF calculations will occur. For example, month 6 is relative to the analysis start date (not Reporting Start Date) All entries that begin with a "relative" start date will be relative to which date? - Answers- Analysis Start Date Reporting Start Date - Answers- - Sets the date at which reports will begin
- Does not alter the timing of base calculations in the program Reporting Start Date must fall (where) relative to the Analysis Start Date - Answers- on or after the Analysis Start Date Analysis of up to (xx) years may be conducted - Answers- 40
Where is the Dashboard Template icon located? - Answers- The toolbar of the executive dashboard What are the (blank) per-formatted Dashboard templates? - 6 - Answers- Valuation Summary, Classic, Investment, Appraisal,Lending, and Navigation Miscellaneous Revenues - Answers- Are property-level income items not paid by the tenants. Any operating revenue not paid by the tenants can be entered in this screen. What are examples of miscellaneous revenues? - Answers- Vending machines or rental of roof antennas What are the possible misc. revenues that can be selected? (5) - Answers- % of EGR, $ Amount, $/Area, % of Constant, % of Line % of Line - Answers- Misc revenue; the allows the revenue to be based on a percentage of other items in the property % of EGR - Answers- Misc. Revenue; percentage of the Effective Gross Income $ Amount - Answers- Misc. Revenue; interpreted as a full payment amount $/Area - Answers- Misc. Revenue; multiplied by the area measure selected in the area column % of Constant - Answers- Misc Revenue; interpreted as a percentage of the Amount column. If the amount of revenue is set to (blank), the Area/Constant column will be unavailable - Answers- $ Amount, % of EGR, % of line Rebursable Expenses - Answers- Property expenses the landlord will recover. All entires will be available for reimbursement by the tenants. Common Reimburment Expenses - Answers- CAM, Taxes, Insurance, Repairs & Maintence Reimbursable Expenses may be entered as (7) - Answers- Simple Amount, Detailed Amount, % of EGR, $/Area, % of Constant, % of Line, % of Fixed column - Answers- Determines the amount of the expense ( or revenue) that is based on occupancy Capital Expenditures - Answers- Not considered part of a property's NOI and appear below the income line on the CF in the Capital Costs section
Typical CapEx are: - Answers- Stuctural or Capital reserves, building repairs, or improvements (anything to improve te property value that is not routine) Property Level reports can be accessed in (2) ways - Answers- Property level Reports icon in the toolbar or Reports Menu - Property Level selection Property Level Reports can be viewed - Answers- Annually, Monthly, Quarterly, Semi- Annually Ways to access the Rent Roll - Answers- From tenant menu --> select Rent Roll, or clock the Rent Roll icon on the toolbar Default Lease Type choices are: - Answers- Office, Retail, Industrial, Pad Site and Storage In the Rent Roll, enter the Base/Min Rent field as (3) - Answers- Amount per area, total amount for a given period, or percent of market rent What are three ways a tenant can reimburse expenses? - Answers- None, Net, or Base Stop Net reimbursements - Answers- Triple net leases - tenant will pay their natural pro-rata share of all Reimbursable Expenses Base Stop - Answers- Typically 1 year and in Office spaces What kind of reimbursement method is used for gross leases? - Answers- Base Stop True of False: An ARGUS Valuation - DCF cannot calculate a base year prior to the analysis start date - Answers- True Rent Abatement - Answers- Number of months of free rent for the current lease STARTED AT THE BEGINNING OF THE LEASE TERM Leasing Costs - Answers- Consist of Tenant Improvements and Leasing Commissions Tenant Improvement default unit is... - Answers- $/SqFt Leasing Commissions default unit is... - Answers- Percentage of a tenant's total rent Market Leasing Assumptions are used for what purpose? - Answers- To control what happens to the contract lease after it expires and goes to market Market Leasing Assumptions can be accessed from (2) - Answers- Executive Dashboard(Market drop down menu, market leasing assumptions) or from the Rent Roll
Ways to calculate the resale at the end of the analysis (3) - Answers- Capitalize NOI, Apply Rate to following year income, Calculate Resale for All Years Capitalize NOI - Answers- Divides the NOI in the final analysis year by the cap rate Gross Proceeds from Sale = (formula) - Answers- NOI/Cap Rate Apply Rate to following year income (Property Resale) - Answers- Resale proceeds will be calculated using the following year of the analysis Calculate Resale for All Years (Property Resale) - Answers- Calculate and display proceeds for each analysis year (for reporting purposes) Where can you find the Cap Rate Matrix? - Answers- Bottom right icon of the Property Resale screen Cap Rate Matrix - Answers- Allows your to input a range of Cap Rates that will calculate a range of PVs in a Cap Rate Matrix Report Present Value Discounting - Answers- Pg. 46 To access the Cap Rate Matrix Report - Answers- Reports, Property Level..., Check Prospective Present Vale Options, Check Cap Rate Matrix Prospective Resale and IRR Summary Report - Answers- Shows what we think we will get back and when Frequency of Reimbursable Expenses can be entered as (x) in the drop down menu - Answers- Annually, Monthly, Quarterly Present Value Discounting - Answers- target internal rate of return
