Accounting

Trailing Twelve Months (T-12)

A T-12 (trailing twelve months) is an operating statement showing a property’s income and expenses month by month for the most recent 12 months.

A T-12, short for "trailing twelve months," is an operating statement that lays out a property’s revenue and operating expenses for each of the last twelve months. Because it shows the trend rather than a single annual figure, it lets lenders, buyers, and underwriters spot seasonality, one-time items, and the direction of NOI. The T-12 is one of the most commonly requested documents in commercial real estate financing and acquisitions.

Why lenders ask for a T-12

A single year-end number can hide a lot. A month-by-month T-12 reveals patterns an annual summary cannot.

  • Seasonality in revenue and expenses
  • One-time or non-recurring items
  • The recent trend in net operating income

T-12 vs annual statements

An annual statement reports a calendar or fiscal year. A T-12 always covers the most recent twelve months through the current period, so it stays current and is recalculated as each new month closes.

Example

A lender underwriting a refinance in June 2026 requests a T-12 covering July 2025 through June 2026, with each month’s revenue and operating expenses broken out so they can verify the trailing NOI used in the DSCR.

See how Plazee generates T-12 operating statements

Frequently asked questions

What does T-12 mean?

T-12 means "trailing twelve months" — an operating statement covering the most recent 12 months of a property’s income and expenses, usually broken out by month.

Why do lenders want a T-12?

A month-by-month T-12 shows seasonality, one-time items, and the recent NOI trend, giving a more reliable basis for underwriting than a single annual figure.

How is a T-12 different from an annual statement?

An annual statement covers a fixed calendar or fiscal year, while a T-12 always covers the most recent twelve months and rolls forward as each month closes.

Related terms

NOI

Net Operating Income (NOI) is a property’s operating income minus operating expenses — before debt service, capital expenditures, depreciation, and income taxes.

DSCR

The Debt Service Coverage Ratio (DSCR) is net operating income divided by total debt service — a measure of how comfortably a property’s income covers its loan payments.

OpEx

Operating expenses (OpEx) are the recurring costs of running a property — taxes, insurance, utilities, maintenance, and management — excluding debt service and capital expenditures.

LTV

Loan-to-Value (LTV) is the loan amount divided by the property’s value, expressed as a percentage — a measure of leverage and lending risk.

All terms

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