Have you heard of Cap Rate?

In a recent interview with Clube Fii News, Giancarlo Nicastro, CEO of SiiLA, demonstrates that calculating this return is simple.

As a method considered simple, there are other ways to evaluate an investment in the market than the Cap Rate

By: SiiLA News

11/16/2022

The Cap Rate is the rate of return an investment property will generate based on its current market value.

In a recent interview with Clube Fii News, Giancarlo Nicastro, CEO of SiiLA, demonstrates that calculating this return is simple. According to him, take the amount of rent received monthly, multiply by 12 and divide by the amount invested in the property. As a method considered simple, there are other ways to evaluate an investment in the market than the Cap Rate.

During the discussion with Clube Fii News, Nicastro talked about how the Cap Rate can be applied to a real estate fund, but with a different name, the dividend yield.

“When we talk about Real Estate Funds, we can also use the dividend yield – with a slightly different approach from when we do the cap rate, which is based on the total value of the property, explains Nicastro.

Check out the full interview here.

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Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.