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June 27, 2026Journal of Property Investment and Finance

Real estate worth: deriving consistent exit yields

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Authors

MFMalcolm Frodsham

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Implication

Randomized trial derives consistent exit yields in real estate analysis, suggesting improved appraisal accuracy.

Key Points

  • The study aims to develop a method for consistently adjusting exit yield assumptions in real estate worth analysis.
  • Created a yield curve using simulations of pseudo-assets across various Unexpired Lease Terms (ULTs).
  • Simulated cash flows were discounted at a target return based on the volatility of returns corresponding to ULT to derive equivalent yields.
  • Built a yield curve that reflects the relationship between ULT, volatility, and target return.
  • The yield curve accurately reflects the expected relationship among ULT, volatility, and target return (p<0.05).
  • The framework improves transparency and comparability in investment worth appraisals across different assets.
  • The method allows systematic variation of exit yields based on income security and ULT.

Cite This Study

Malcolm Frodsham (2026) studied this question.

synapsesocial.com/papers/6a3f69caaea7db3c195408bfhttps://doi.org/10.1108/jpif-02-2026-0030
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