Why we show a range, not a number
A single "expected yield" implies a precision we don't have. Real-world cash flows depend on occupancy curves, attrition, maintenance events, and macro rent trajectory. We've watched two identical buildings, leased the same week, drift 200 bps apart over 18 months.
Ranges signal the honest distribution. The bottom of our range assumes a soft market: longer voids, higher turnover, larger maintenance reserve draws. The top assumes a healthy demand year. We model both, share both, and reconcile against them quarterly.
What's inside the model
- Gross rent (after our own master-lease payments to the owner)
- Operating costs: tenant ops, repairs, utilities, software, on-ground staff allocation
- Vacancy assumption (project-specific, based on locality data)
- Maintenance reserve (a CapEx float we don't distribute)
- Tax provision
What's not inside
We don't model capital appreciation on the underlying property — the project is structured around operating cash flow, not asset gains. We also don't promise distribution schedules; payouts follow what's actually collected, not what's modelled.
