I came across AI's "The Appaisal of Real EState" 12th edition and decided to spend some time learning about commercial building valuation. (I am an equity analyst, not an appraiser.) I have a general question on the theory used in the book. On page 590, the book presents a projected income statement that excludes interest expense, depreciation, and amortization. I am somewhat puzzled by this. Interest, depreciation and amortization are really tax shields and are a part of the ongoing operations of the building-interest for the debt, depreciation for capital expenses, etc. So why remove these from a typical income statement. When I project cash flows as an equity analyst I do add back certain items to get pure free cash flow to the firm. Can someone explain/reconcile this for me please ? Thanks, Vin.