Annual reporting by property managers includes which of the following?

Annual reporting by property managers typically encompasses a comprehensive look at the financial health and operational performance of the property. One critical component of this reporting is the capital budget, which provides insights into anticipated expenditures for significant improvements or investments in the property. This budget outlines the expected costs for repairs, enhancements, or new projects, making it a vital tool for effective property management and forward planning.

While cash flow is also an essential variable in property management, it primarily addresses the income and outflow of cash over a period and might not be highlighted specifically in annual reporting as capital improvements might be. Strategic issues and debt management, while important, tend to fall outside the typical annual reporting expectations focused on the tangible financial aspects of property maintenance and improvement. Therefore, the capital budget stands out as a key element reflecting the planned investment strategy for the property in the annual report.