PNL report for apartment complex

[Thomas Oakes]

Hey y'all!  I am looking at a PNL report for an apartment complex, and I am confused about a couple things.  These might seem like dumb questions, but hey, I'm brand new to this!  

1.  What is the depreciation expense?  Does that actually get paid out to someone?

2.  The apartment said that the tenants pay all utilities....so why is it on the PNL report being counted as an expense?

3. Is the mortgage interest expense just the mortgage payment?

4. What is Proforma?

Thanks for all your help guys!

[Jeff Greenberg]

Depreciation is a paper loss.  It reduces your net profit.  No one gets paid.

Utilities could be either common areas and office and/or there may be a Rubbs or bill back to the tenants.

Mortgage interest is the mortgage without the principle pay down. P&L sheets don't include principle.  I pull this out when I calculate expenses as mine will be different.

Proforma from a broker means fantasy.  If all is good in the world you may possible get these numbers. Don't bet the farm on it.