Blog Archives

Discounted Cash Flow

Discounted Cash Flow (DCF) Discounted Cash Flow is the flow of cash given by holding an investment. It starts with the outgoing cost of the asset including associated purchaser’s costs, the received income for every recorded period (month/quarter/year), including changes

Tagged with: , , ,
Posted in Glossary

Equivalent Yield

Equivalent Yield Equivalent Yield lies somewhere in between the initial yield and reversionary yield, it encapsulates the discounted cash flow (DCF) of the property with rents rising (or falling) from the current annualised rent to the underlying estimated rental value

Tagged with: , , , ,
Posted in Glossary

Reversionary Yield

Reversionary Yield Reversionary Yield is the anticipated yield to which the initial yield will rise (or fall) once the rent reaches the ERV. Eg. £150,000 ERV per annum £1,850,000 valuation 150000/1850000 = 0.081 or 8.1%

Tagged with: , , , ,
Posted in Glossary

Initial Yield

Initial Yield Initial Yield is the annualised rents of a property expressed as a percentage of the property value. Eg. £100,000 passing rent per annum £1,850,000 valuation 100000/1850000 = 0.054 or 5.4%

Tagged with: , , , ,
Posted in Glossary
Glossary
A glossary to define and help understand the different terms used in the industry.