Market capitalization rate

Market capitalization rate

Expected return on a security. The market-consensus estimate of the appropriate discount rate for a firm's cash flow.
References in periodicals archive ?
Appraised value is based on a stabilized net operating income (NOI) divided by a market capitalization rate.
4) In the direct capitalization portion, a market capitalization rate is used that is based on the premise (however flawed) that demand was evidenced by recent building activity.
The sales price represents $154 per square foot with a market capitalization rate of 7.
9 million at a weighted average initial year market capitalization rate of 6.
One common mistake that we see," says Monroe, "is when investors and lenders who come into the industry from office or apartment buildings apply a traditional real estate market capitalization rate to nursing homes.
Fitch applied an adjusted market capitalization rate to determine value.
In other words, the chosen market capitalization rate must match the income--and the proportion of income--that is capitalized.
The sales price represents $195 per square foot with a market capitalization rate of 7.
Fitch applied an additional stress to NOI and applied an adjusted market capitalization rate to determine value for both the CTL and conduit loans.
The Minneapolis portfolio was sold at a weighted average initial year market capitalization rate of 6.
Load the capitalization rate for the equalized ETR; Potential gross Income (PGI) $125,000 Less vacancy and credit loss [at] 10% - $ 12,500 Effective gross Income (EGI) $112,500 Less operating expenses Property tax expense $0 Other operating expense $21,565 Total operating expenses $ 21,565 Adjusted net operating Income (NOI) $ 90,935 Add the equalized ETR to the capitalization rate as follows: Market capitalization rate 0.
For both the CTL and conduit loans, Fitch applied an additional stress to NOI and applied an adjusted market capitalization rate ranging from 8% to 10% to determine value.