What factor is NOT considered when calculating cash flows?

When determining cash flows, it's essential to focus on factors that directly impact the actual cash available for distribution or reinvestment. Depreciation and non-cash charges are accounting concepts that reflect the wear and tear on investments over time and do not represent actual cash transactions.

Cash flow calculations aim to assess liquidity and financial performance, thus they highlight income generated from properties, operating expenses that involve real cash outflows, and tenant leasing income, which consists of cash received from tenants. Since depreciation does not involve any movement of cash during the measurement period, it is excluded from cash flow considerations despite its importance in accounting practices. Understanding this distinction is vital for analyzing the financial viability of real estate projects and making informed investment decisions.