Yields Flashcards
What is an All Risk Yield?
Risk, return, growth
(the remunerative rate of interest used in the valuation process, reflecting all elements of risk attached to a particular investment).
What is a gross initial yield?
The passing rent divided by the property value.
What is an net initial yield?
The passing rent or net operating income divided by the gross property value including acquisition costs
What is an Equivalent yield?
Weighted average between term and reversion.
reflecting reversion to current MR and void and expenditures, but disregarding changes in market rents
What is an equated yield?
The internal rate of return - with explicit growth
What is a nominal yield?
An initial yield but assuming annually in arrears payment pattern
What is a true equivalent yield?
Weighted average of the net initial yield and reversionary yield.
Assumes rent received quarterly in advance
