Many A.CRE models, especially those with data tables, are set to Partial Calculation Mode by default to enhance performance. In Partial Mode, Excel only recalculates specific cells when manually prompted, which may trigger the Stale Value Formatting strikethrough.

To resolve the issue and restore your workbook to normal:

1. Switch to Automatic Calculation Mode:
   • Open any Excel file.
   • Go to the Ribbon and navigate to Formulas > Calculation Options > Automatic.
   • This ensures all cells recalculate automatically going forward.
2. Disable Stale Value Formatting (Optional):
   • Go to Formulas > Calculation Options > Format Stale Values and turn it off.
   • This will hide the strikethrough but won’t change the underlying calculation behavior.

How to Avoid This Issue in the Future:

1. Understand Default Settings in A.CRE Models:
   • Models with data tables are optimized for performance using the ‘Partial Calculation Mode.’ If you prefer to avoid potential stale value indicators, switch to Automatic Calculation Mode after opening a model.
2. Check Your Excel Version:
   • The Stale Value Formatting feature is specific to Microsoft’s beta version of Excel. If you’re frequently working with A.CRE models and find this behavior disruptive, consider opting out of the beta program.
3. Tweak Workbook Settings:
   • If using Partial Calculation Mode is beneficial for your workflow but the visual indicators are distracting, disable the Stale Value Formatting in Excel settings (Formulas > Calculation Options > Format Stale Values).

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In our waterfall models, ‘Distribution %’ refers to the proportion of cash flow in a given waterfall tier distributed to a given partner. Promote refers to an incentive paid by the partnership to the GP/Sponsor when the investment has achieved certain profit thresholds (i.e. the Preferred Return). If the GP/Sponsor being paid the promote has contributed capital to the partnership, the promote will NOT equal the Distribution %. That is because the GP/Sponsor, as a member of the partnership, is paying a portion of the Promote.

To further explain this concept, below find an excerpt from our Accelerator real estate financial modeling training program, course 15, lesson 3 of the core curriculum:

——

Allow me to quickly teach you how to calculate the distribution percentages based on a given promote. 

• Assume a structure where the promote is paid by the partnership.
• Assume the GP owns 10% of the partnership, while the LP owns 90%.
• Assume all distributions are made pro rata based on each partners ownership share.
• Assume the GP is promoted 20% after the LP achieves a 12%.

Here is language that might represent this structure.

First, each distribution will be made to the partners in accordance with their partnership percentages until the Limited Partner has achieved the 12% promote hurdle; and second, the balance will be distributed (a) 80% to the partners in accordance with their partnership percentages, and (b) 20% to the General Partner as a promote.

So how do we calculate the distribution percentage to each partner above a 12% hurdle?

The formula to calculate Distribution % for the GP looks like this:

GP Distribution % = Promote % + (Pro Rata Share x 1 – Promote %)

The formula to calculate Distribution % for the LP looks like this:

LP Distribution % = 1 – GP Distribution %

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If you’re not provided that option, there are a few reasons why as well as a few solutions. The reasons are that either your administrator, a setting in your Excel install, or your anti-virus software is blocking you from  being able to enable the macro.

Here are a few solutions for this issue:

https://answers.microsoft.com/en-us/msoffice/forum/msoffice_word-msoffice_custom-mso_2016/macros-disabled-and-cant-enable-them-to-run/fcf43343-acde-4c02-92fb-31a014970967

https://support.microsoft.com/en-us/office/change-macro-security-settings-in-excel-a97c09d2-c082-46b8-b19f-e8621e8fe373

Microsoft has blocked macros from running because the source of this file is untrusted. What do I do?

In newer versions of Excel, users must follow more involved steps to enable Macros. This security feature from Microsoft is meant to protect Excel users from bad actors, but as a consequence makes enabling macros from A.CRE users a bit more difficult! Click here to learn how to enable Macros when you get the warning “Microsoft has blocked macros from running because the source of this file is untrusted.”

(Click here to read more about how Microsoft Excel blocks Macros and how to enable them)

The post Macros are disabled – I downloaded your model and the macros are disabled. How do I enable them? appeared first on Adventures in CRE Support.

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This was also brought up in the Accelerator forum, so if you’re an Accelerator member check it out:

https://www.adventuresincre.com/academy/forums/topic/debt-yield-calculation/

The post Is debt yield always calculated on the first loan amount (total loan amount) rather than the present value considering amortizing each year? appeared first on Adventures in CRE Support.

If you’re an Accelerator member, I’d recommend you also review the various Accelerator forum discussions on Yield-on-Cost. Those discussions between Spencer/Michael and Accelerator members on the topic of Yield-on-Cost should augment my definition above. You’re also welcome to ask the guys, via the Accelerator forum, follow-up questions on the subject as you need.

You can find those discussions here:

https://www.adventuresincre.com/academy/forums/search/yield-on-cost/

The post In an acquisition investment where the company is going to renovate all the units in the first 2 years (50% each year), how can we calculate the net cash flow yield on cost? appeared first on Adventures in CRE Support.

https://www.adventuresincre.com/ground-lease-valuation-model/

You can also find information about Ground Leases in our Glossary of CRE Terms:

https://www.adventuresincre.com/glossary/ground-lease/

https://www.adventuresincre.com/glossary/leasehold-interest/

The post I own a property and am interested in creating a ground lease and have some questions. appeared first on Adventures in CRE Support.

The post Are your spreadsheets fully adaptable by the user to reflect our particular needs? appeared first on Adventures in CRE Support.

Note that exporting to PDF is an Excel feature that doesn’t specifically relate to the Excel model itself. Here are some resources to show you how to convert an Excel file to PDF or print:

https://www.wikihow.com/Convert-Excel-to-PDF

https://support.microsoft.com/en-us/office/print-a-worksheet-or-workbook-f4ad7962-b1d5-4eb9-a24f-0907f36c4b94

Printing the portions of a given Excel worksheet requires setting the print area and then sizing the print area to fit in one (or more) pages.

Here’s a basic tutorial on how to do this in Microsoft Excel:

The post How do you print the Excel files? How Can I Share Models with Lenders, Partners, and Others? appeared first on Adventures in CRE Support.

File > Options > Advanced > UNCHECK Allow Editing In Cells

The post How do I stop long formula cells from covering adjacent cells in Excel? appeared first on Adventures in CRE Support.