Warehouse Covenant Calculator

Warehouse facilities carry multiple covenants. This calculator tests compliance across metrics.

Current DSCR

Min DSCR covenant

Current LTV %

Max LTV covenant %

Largest concentration %

Compliance status

Compliant

Tightest covenant

LTV (thin)

DSCR cushion

0.15

How the math works

Compliance = all covenants inside their thresholds. Tightest is the one closest to breach.

Track all covenants monthly. A covenant compliance certificate should be prepared internally every month; lender delivery on schedule avoids default-interest triggers.

How to Use

Enter current DSCR.
Enter current LTV/advance rate.
Enter largest concentration %.
Enter minimum tangible equity.
Read compliance status.

Frequently Asked Questions

Common covenants?

Min DSCR (1.15-1.30x). Max LTV/advance rate (70-80%). Max concentration (10-15% per obligor). Min tangible equity ($10M-$50M). Liquidity reserves. Reporting frequency.

Breach cures?

Typically 30-60 day cure window from notification. Cures: pay down principal, post cash collateral, exclude non-conforming assets, raise additional equity. Lender may waive for fees.

Preemptive management?

Run covenant tests monthly even if lender requires quarterly. Address drift at 5% of breach threshold, not at the trigger. Reactive management draws covenant scrutiny.

How do I benchmark this?

Benchmark against industry data from NCREIF, IREM, Yardi Matrix, CoStar, or RCA. Institutional operators also benchmark internally across their own portfolio to identify operating outliers. A single number means little; the trend and the peer comparison mean everything. Run quarterly benchmarks and note deviations that exceed 10% — those warrant investigation.