Trailing 3

"Trailing 3" refers to financial data from the previous three months or the last quarter. It is a term used in financial analysis that signifies looking back at the performance of a company, asset, or investment over the most recent quarter.

In real estate, the "trailing 3" can be used to analyze a property's performance. This could involve reviewing the rent roll to understand the rental income collected, vacancy rates, and turnover, or examining the operating expenses to identify any significant changes or trends.

Analyzing the "trailing 3" data can provide valuable insights into a property's recent performance, which can help to inform forecasts and investment decisions. It can be particularly useful in identifying recent changes or trends that may not be apparent from longer-term historical data.

For example, if the "trailing 3" shows an unexpected increase in vacancies or decrease in rental income, it could indicate a potential issue that requires further investigation. Conversely, if the "trailing 3" shows improving performance, it could indicate a positive trend that might continue into the future.