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April 23, 2018

Pro Forma Statement

Word of the day

Pro Forma Statement

A projection of future income and expenses or other results. A projected annual operating statement that shows expected income, operating expenses, net operating income, and taxable income and loss. A pro forma statement is frequently found in a prospectus for an offering of a real estate security, such as a limited partnership to own income property. A pro forma statement should be clearly labeled as a projection and distinguished from operating figures, which are based on actual past performance.

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