RERC's required pre-tax yield
rates declined 10 basis points for the office, industrial and apartment sectors to 8.6 percent for office, 8.3 percent for industrial and 7.4 percent for multifamily real estate.
When analyzing the sector's investment return potential, industrials netted a 8.5 percent pre-tax yield
, just below the national RERC Portfolio Index of 8.6 percent.
Real Estate Research Corporation's fourth quarter 2005 required pre-tax yield
rate for the sector increased 10 basis points to 8.4, the first increase in four years.
I find that the average pre-tax yield
on OMPS is higher than that of other preferred stocks and lower than the average pre-tax yield
on debt, after controlling for differences in voting rights and risk.
The assumed pre-tax yield
at the date of purchase is 10.77% per annum based on an assumed prepayment rate of 5 CPR and assumed losses of 100 basis points per annum on the outstanding principal amount of the loans (the "Base Case").
[k.sub.pf] = pre-tax yield
of retired preferred issue 
Four modeling equations were accepted in determining the outcomes of after tax IRR, after tax yield, internal rate of return, after tax yield, pre tax IRR, and pre-tax yield
. The analysis of syndications produced five equations with dependent performance variables, and two equations for terminal outcome variables.
expectations for apartments average 11.0 percent for the third quarter, going-in cap rates 8.6 percent, rental growth 3.6 percent, and expense growth 3.4 percent.
Y = the equivalent pre-tax yield
on a taxable bond for the investor's holding period
if the dollar were instead saved in a TDV, the pre-tax yield
would be $6.73 ($4.04 after taxes) at the end of 20 years; the $1 would generate an after-tax income stream of $0.40 ($6.73 X 0.061 per year thereafter.
This assumes that the pre-tax yield
on the growth investments is equal to the pre-tax yield
on the taxable investments.