Value of a Property
The direct capitalization method estimates the value of a property by capitalizing the first-year NOI at a market-derived cap rate. The discounted cash flow method projects income after the first year and discounts the income at a yield rate…
Inputs of Direct Capitalization and Discounted Cash Flow Valuation Methods
Net Operating Income The net operating income (NOI) is calculated when using the income approach to evaluate properties. The number of revenues collected from a commercial property net of operating expenses before interest and taxes. However, NOI is guided…
Valuation of Real Estate Properties
Valuation of Real Estate Properties Valuation of any commercial property is intrinsically valuable as it determines the worth of any particular real estate property. Income Valuation Approach In this scenario, a comparison is created where an investors’ acquisition price is…
Commercial Property Types
Given the real estate cycle and its impact on portfolios, we now examine specific demand and supply factors influencing the risk and return of commercial real estate subsegments, including residential and non-residential properties like office, industrial, retail, and hospitality…
Study Notes for CFA® Level II – Alternative Investments – offered by AnalystPrep
Reading 35: Introduction to Commodities and Commodity Derivatives -a. Compare characteristics of commodity sectors; -b. Compare the life cycle of commodity sectors from production through trading or consumption; -c. Contrast the valuation of commodities with the valuation of equities and…
