Examples of Capitalisation Rate in a sentence
The Capitalisation Rates magnify the effect of a change in Stabilised NRI, with a lower Capitalisation Rate resulting in a greater effect on the fair value of investment properties than a higher Capitalisation Rate.
Capitalisation Rate We have adopted 5% void for the vacancy period between rent reviews, rent free period and risk of vacancy and uncertainty.
We have been appointed by the Board as the Independent Board Committee to advise you as to the fairness and reasonableness of the deposit services under the New Financial Services Agreement and relevant proposed caps.
The Discount Rates, which explicitly reflected rental growth in the cash flows, were derived from the Capitalisation Rate plus the average rental growth.
WithamGRACE IS TREADING THE BOARDSGrace was a dancer in the production of Robin Hood that took place in York over the festive season.
It was also suggested that participants should have the confidence to speak up and dispute the opinions of others.
Across the entire portfolio of investment properties, an increase of 1% in the Equivalent Capitalisation Rate would have the impact of a €156.5 million reduction in fair value while a decrease of 1% in the Equivalent Capitalisation Rate would result in a fair value increase of €238.3 million.
The Capitalisation Rate is calculated as the Stabilised NRI divided by the fair value of the investment property.
As the Capitalisation Rate is often based on the net income when the property is sold, it is often based on and referred to as the Initial Yield although technically, the Capitalisation Rate and Yield are not the same thing.
Yield is a return on the investment/value while the Capitalisation Rate is the rate used to capitalise net income to determine value/price.