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By Altus Group | August 20, 2020

Do you have the capabilities to easily apply, organize, and review multiple ‘what-if’ scenarios and their effects on your properties’ KPIs? In the video below, Jessica Leal, ARGUS Training Manager – Americas, shows some quick tips and tricks on how to do this by using the Sensitivity Matrix in ARGUS Enterprise.

Watch the video below to learn how you can use ARGUS Enterprise’s sensitivity matrix grid to simultaneously apply, manipulate and view the effects of multiple scenarios.

“ARGUS Tips & Tricks: ARGUS Enterprise, Sensitivity Matrix,” Transcript

Today we’re going to take a look at some of the additional features within the sensitivity matrix. I already have one created within my ‘Southern portfolio’ and what I’m going to do here is, I’m going to talk a little bit about how you can change what you’re viewing on this matrix. So for one, you can pick and choose what KPIs you wish to display. So right now, I have my unleveraged IRR and unleveraged present value. I also have the ability to show that. I can actually show what steps we’ve went in and applied and what assumptions we changed when we were creating this matrix.

So, if you take a look at my vertical and my horizontal axis now, we are now viewing what steps we made changes to or excuse me, what steps we applied when we were creating this matrix and what assumptions we made changes too. We can really see that here.

We also can see our original or our base assumptions directly in the middle so we could see our original KPIs. And then you can see how your steps made changes or how they affected those KPIs. You could tell whether it decreased it or you could tell whether it increased those KPIs and if there was a positive effect on them.

Now when you’re looking at the variances you can view them as an absolute variance or a whole dollar amount, or you could do a relative and view them as a percentage, so if I choose relative variances you’ll actually see the matrix change. And now we’re viewing them as a relative variance.

So, now that we know how to really go in and make changes, you can also view each individual data point and what I mean by that is, that if I go all the way to the bottom right hand corner of my matrix and I take a look and I can see my unleveraged IRR and unleveraged present value and how these steps affected it. But if I wanted some additional details, maybe how each individual property was affected, then I can click in that bottom right hand corner box and choose ‘show detailed results’ to get some additional detail. It will list out all of the properties within my portfolio and show how each individual property was affected and how each year was affected down at the bottom portion of our screen.

You can see this on an annual basis and if you hover over any year it will show you additional details such as the original NOI versus the adjusted the original cash flow before that, versus the adjusted and the original cash flow after debt versus the adjusted. So you can see that individual detail as well.

Let’s say I take a look at this piece of information and I decide, you know what, I want to apply these steps to this scenario. What I can actually do is, I can hit ‘apply to scenarios’, and it will take the same steps that I used when creating that matrix and apply that to the assumptions across the entire scenario to each of these properties.

And I can name this ‘good case’ and hit OK, and it will take just a second to really apply these assumptions across this scenario. But what it’s going to be doing is it takes every single property, copies it to a brand new scenario with these new assumptions applied, and it saves it in a new scenario. So once this is 100 percent we’ll go and see where that scenario is stored.

So, I’ll hit close, once I hit close, I’ll just hop right back into that southern portfolio and I will navigate to that ‘scenarios tab’ at the very bottom of my screen. Once I get to that ‘scenarios tab’, if I hit refresh, we’ll see that ‘good case scenario’ that we just created. And what that is once again, all of those properties in our base scenario have been copied to our good case and they have that assumption. Those assumptions and those steps that we applied in the matrix are now applied to those properties.

We hope that you found this video helpful and beneficial to you. Remember, if you do want an additional deep dive into all of the features within the sensitivity module, we do have additional training for you. So please reach out to us if you think you would find that beneficial.