FONERWA has been successful in its objective of mobilizing climate finance for Rwanda with total direct capitalization
of approximately $89 million19 from DFID, the German Development Bank (KfW), the Government of Rwanda (GoR), and the Least Developed Countries Fund (LDCF) of the AfDB.
These measures included direct capitalization
and the capitalization of several liabilities COFIDE had for about USD102 million.
The City's assessor testified that for the 2012 valuation she had applied a direct capitalization
of income approach using mass appraisal techniques.
A second example would be Direct Capitalization
New York also requires properties be valued on a fee simple basis, that is, free and clear of leases or other encumbrances, and via the direct capitalization
income approach--assuming the value reflected by a single year's income expectancy.
The direct capitalization
of income can be calculated as a ratio between the representative level of income and a capitalization rate, or the representative level of income multiplied by an income multiple (capitalization factor).
In this case, the analyst would conclude a 10% direct capitalization
rate (i.e., 14% discount rate -- 4% growth rate = 10% capitalization rate).
Remember, this direct capitalization
method for real estate is a shorthand method for a discounted cash-flow analysis.
A direct capitalization
rate can be derived from confirmed local or nearby sales and local income and expense data.
Two income methods are often used to value these properties: direct capitalization
and yield capitalization.
Two methods are commonly used: the direct capitalization
method and the yield capitalization method.
Fitch calculates UA using a direct capitalization
approach of annualized first-quarter 2018 unencumbered NOI using a stressed 7.5% capitalization rate.