Modelling distinct combinations of assumptions (base, upside, downside) rather than a single line.
Related terms
- Sensitivity analysis
Testing how an outcome changes as key assumptions vary, essential where data is uncertain.
- Sponsor
The party that originates, structures, and manages a real estate deal or fund, contributes some capital, and earns fees and a promote for delivering returns to…
- Stabilised
An asset that has reached its expected long-run occupancy and income level.
- Total return
The full return on an investment combining income (rent) and capital growth (value change) over the holding period.
- TVPI
Total value to paid-in capital: distributions plus current fund value divided by capital contributed; the total return multiple including unrealised value.
- Underwriting
Building and testing a defensible cash-flow forecast to support an investment decision.
- Value-add
A strategy that improves an asset income through refurbishment, re-leasing, or repositioning.
- Waterfall analysis
Modelling how each dollar of distributable cash flows through the distribution waterfall tiers to quantify what the LP and GP each receive at different return…