The full return on an investment combining income (rent) and capital growth (value change) over the holding period.
Related terms
- 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…
- Yield
The annual return on an asset expressed as a percentage of its value; closely related to the cap rate.
- Yield compression
A fall in market yields (cap rates), which pushes asset values up for the same income — a tailwind that has driven gains in prime Gulf markets during liquidity…
- Yield expansion
A rise in market yields (cap rates), which lowers asset values for the same income; typically driven by rising interest rates or perceived risk.
- Yield on cost (development yield)
Stabilised net operating income divided by total development cost; compared against the market cap rate to judge whether building creates value over buying.