NOT ALL STRATA PROPERTIES ARE CREATED EQUAL A followup compilation and cross-sectional analysis of over 200 Depreciation Reports DEPRECIATION REPORT ANALYSIS INTRODUCTION AND RESEARCH OBJECTIVE Depreciation Reports (DR) provide perti- nent technical and financial information to assist property owners with long-term fiscal management of their properties. In a previous compilation and cross-sectional analysis of over 100 Depreciation Reports by JRS in 2014, it was found that certain trends were prevalent among certain types of properties. This created an initial basis of information to better understand what types of properties were in better financial positions based on the type, age and population density of a property. This research generally provided the following: 1) Reference Points: So that end users (lenders, property managers, strata councils, unit owners) can better understand how their property and real estate investment compares to others. 2) Industry Norms: To better understand trends, investment strategies and corre- lations of CRF (Contingency Reserve Fund) finances based on the type, age and population density of the property. It should also be noted that the resulting information can be used to rank or compare any property regardless of the type or style of their DR or education and training of the Reserve Planner. This is because the results are in the form of things like CRF contributions, number of special levies or cumulative special levy costs, which every DR should have. A followup analysis was completed with an additional 100 Depreciation Reports (over 200 inclusive) in 2017, to validate or disprove the initial results. Using the same parameters as the first study (e.g. type, age and population density), we are now able to more affirmatively answer the following questions: •  What types of properties have the least number of special levies? •  What types of properties have the least cumulative special levy costs? •  What types of properties contribute the most and least to their CRF? •  What types of properties have the most building envelope costs (largest portion of renewals)? Furthermore, because this study compares Depreciation Reports performed over a five-year period, we are also able to answer the following time-related questions: •  Are strata corporations contributing more, less or the same amount? •  Are the number of special levies and their cumulative costs going up or coming down? METHODOLOGY AND ANALYSIS Data was compiled on over 200 Deprecia- tion Reports consisting of almost all types of properties: residential, commercial, hotel, bare land, housing co-op, co-housing and floating home communities. We obtained the following finan- cial outputs of each property: By Wesley Narciso, M.Eng., P.Eng., CRP, PRA TABLE 1: FINANCIAL OUTPUTS OR MEASURABLES FOR EACH PROPERTY. # of Special Levies in Baseline Funding Model 10 and over 5 and less Average Average of Total Costs In Special Levies ($) In 10 years In 30 years Average ($) CRF Balance Annual CRF Contribution Operating Budget ARFA 10 BCBEC ELEMENTS A BCBEC PUBLICATION