Scalable, precise finance solutions for a complex industry.
In the dynamic and complex world of real estate finance, CFGI understands the intricacies of recruiting top talent, managing cash flow in a challenging rate environment, and meeting stringent debt and lender reporting requirements. Our goal is to empower real estate businesses—REITs, funds, commercial development LLCs, and publicly traded companies—to establish scalable, efficient processes and navigate these challenges with confidence.
Four pressures defining the real estate finance agenda.
Real estate CFOs are managing a convergence of structural and cyclical pressures: volatile interest rates compressing margins, the accounting complexity of leases, debt instruments, and fair value, stringent lender reporting obligations, and an ongoing shortage of real estate accounting talent. These four dynamics are showing up in every real estate finance engagement CFGI runs.
Interest rate volatility reshapes cash flow planning
Volatile interest rates create persistent challenges for liquidity projections, debt covenant compliance, and the accounting for variable-rate instruments. Real estate CFOs need financial modeling that keeps pace with a rate environment that can shift the economics of an asset overnight.
Lease accounting is more complex than most expect
ASC 842 brought ground leases, air rights, and embedded leases in service contracts into scope in ways that many real estate organizations are still working through. Getting the accounting right requires practitioners who understand both the standard and the industry-specific structures it applies to.
Lender and debt reporting requirements keep tightening
Debt covenants, lender compliance reporting, and the accounting for debt modifications and extinguishments under ASC 470-50 all require precise, supportable financial analysis. Errors in these areas have direct consequences with capital providers.
Real estate accounting talent is hard to find and keep
Professionals with expertise in CAM calculations, real estate-specific GAAP, REIT tax accounting, and fair value analysis are a scarce resource. Finance functions that can’t recruit or retain this talent need a flexible external resource that can operate at the same level.
Technical accounting and operational support built for real estate.
CFGI brings a wealth of expertise to address the specific needs of the real estate industry, covering both the technical accounting matters unique to real estate and REITs and the operational finance support that keeps the business running.
Technical Accounting
- ASC 842 Lease ImplementationComprehensive support for ASC 842 implementation, including accounting, lease software implementation, and ERP integration for real estate-specific structures including ground leases and air rights.
- Fair Value AnalysisConducting fair value analysis to ensure accurate and transparent valuation of real estate assets, including investment properties, acquired assets, and assets held for sale.
- Debt Modification & Extinguishments (ASC 470-50)In-depth review and consultation on debt modification and extinguishment accounting, ensuring correct classification and proper financial statement presentation.
- CECL & Portfolio Impairment AnalysisSpecialized analysis to navigate CECL requirements and assess portfolio impairment within the real estate sector, including loans receivable and receivable portfolios.
- EPS Calculations (ASC 260)Expertise in ASC 260 for accurate and compliant earnings per share calculations, including complex capital structures common in REITs and publicly traded real estate companies.
- Segment Determination & ReportingSupport in determining and reporting on segments within the real estate industry, ensuring compliance with ASC 280 and alignment with how management views the business.
Advisory & Operations
- Streamlining Accounting CloseImproving efficiency by streamlining monthly, quarterly, and annual accounting close processes to enhance reporting timing and reduce manual effort across the finance function.
- Audit & Regulatory ComplianceInternal and external audit support, as well as regulatory compliance guidance specific to real estate and REIT matters, including SEC reporting for publicly traded entities.
- Real Estate Financial Analysis & ModelingAdvanced financial analysis and modeling to provide valuable insights for real estate decision-making, including asset-level underwriting, portfolio-level analysis, and scenario modeling.
- Interim Management & StaffingProviding interim Property Controller, Accounting Manager, and senior finance leadership support for real estate organizations during transitions, growth periods, or capacity constraints.
- Fixed Asset & ERP ModernizationTransitioning from manual processes to modern real estate accounting ERP systems for fixed asset management, improving accuracy and reducing close cycle time.
Specialized expertise. Scalable support. No audit restrictions.
CFGI empowers real estate businesses to establish scalable and efficient processes and to navigate the challenges of real estate finance with confidence and precision, from a single technical accounting question through a full interim management engagement.
Built for the real estate CFO.
- Real estate-specific depthPractitioners who understand CAM calculations, ground leases, air rights, REIT tax structures, fair value measurement, and the operational nuances that distinguish real estate accounting from every other industry.
- Interim execution capacityThe ability to deploy immediately into Property Controller, Accounting Manager, and senior finance leadership roles, without the delay or cost of permanent hiring during transitions or growth periods.
- Technical accounting authoritySenior-level expertise in ASC 842, ASC 470-50, CECL, ASC 260, and segment reporting, with the ability to document accounting positions that hold up under audit and lender scrutiny.
- Lender and capital market readinessExperience preparing the precise, supportable revenue and liquidity projections that debt covenants and capital institutions require, across private investment firms and publicly traded REITs.
- No audit restrictionsCFGI is free from auditor independence restrictions, allowing us to work directly alongside management on the accounting and reporting work that the external auditor cannot own.
Three distinctive challenges that require specialized expertise.
Recruiting and retaining real estate accounting talent
Hiring and retaining professionals with expertise in real estate-specific accounting matters—Common Area Maintenance calculations, lease accounting, GAAP versus Tax accounting for REITs—is a persistent challenge. The supply of qualified candidates is thin, and the cost of a gap at the senior level is high.
Cash flow management and liquidity projections
Navigating cash flow management and liquidity projections in a challenging environment marked by volatile interest rates and vacancy rates in commercial real estate. The models have to be accurate, supportable, and responsive to a rate environment that can shift rapidly.
Debt and lender reporting requirements
Meeting the stringent requirements of debt and lender reporting, providing clear and supportable revenue and liquidity projections to maintain compliance with capital institutions. Debt covenant violations and reporting failures have direct, immediate consequences for the business.
Real estate engagements that reflect our commitment to precision.
Property Controller Support
Provided interim Property Controller and Accounting Manager support for a multi-billion-dollar private real estate investment firm, covering the full accounting close cycle, financial reporting, and senior-level accounting judgment during a transition period.
Ground Leases & Air Rights Consultation
Consulted on industry-specific ASC 842 matters, including the accounting treatment for ground leases and air rights analysis. Provided technical memos documenting the accounting conclusions and supporting the organization’s audit readiness on these complex lease structures.
Fixed Asset Automatization
Successfully transitioned a real estate organization from manual fixed asset tracking processes to a modern real estate accounting ERP, improving accuracy, reducing close cycle time, and establishing a scalable infrastructure for fixed asset management going forward.
Asset Valuation & Modeling
Conducted comprehensive valuation and financial modeling for real estate assets, providing management with a defensible, audit-ready analysis of fair value across the portfolio. Delivered modeling infrastructure that supports ongoing reporting and decision-making.
Talk to CFGI’s Real Estate leaders.
Ready to navigate real estate finance with confidence?
From a targeted ASC 842 consultation through interim management, fair value analysis, and full audit readiness. Same senior real estate practitioners, sized to the engagement.