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    Debt Service Coverage Ratio DSCR Net Income/ Debt

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    AlvaroDeCamps
    - Retail leases often involve revenue sharing through percentage rents or overage rents. Calculating the debt service coverage ratio considers factors like interest rate risk, tenant credit risk, and operational risk. - Entry costs for commercial real estate are substantial, at least $1 million, and require further investment over time. As long term investments, properties are illiquid and funds are locked up if suitable investment opportunities cannot be found. - Distribution of profits follows a "waterfall" structure, first providing a preferred return for limited partners, then "carried interest" for the general partner, and potentially additional profit splits.

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    Debt Service Coverage Ratio DSCR Net Income/ Debt

    Uploaded by

    AlvaroDeCamps
    181 views10 pages
    - Retail leases often involve revenue sharing through percentage rents or overage rents. Calculating the debt service coverage ratio considers factors like interest rate risk, tenant credit risk, and operational risk. - Entry costs for commercial real estate are substantial, at least $1 million, and require further investment over time. As long term investments, properties are illiquid and funds are locked up if suitable investment opportunities cannot be found. - Distribution of profits follows a "waterfall" structure, first providing a preferred return for limited partners, then "carried interest" for the general partner, and potentially additional profit splits.

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    Cheat Sheat

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    - Retail leases often involve revenue sharing through percentage rents or overage rents. Calculating the debt service coverage ratio considers factors like interest rate risk, tenant credit risk, and operational risk. - Entry costs for commercial real estate are substantial, at least $1 million, and require further investment over time. As long term investments, properties are illiquid and funds are locked up if suitable investment opportunities cannot be found. - Distribution of profits follows a "waterfall" structure, first providing a preferred return for limited partners, then "carried interest" for the general partner, and potentially additional profit splits.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    181 views10 pages

    Debt Service Coverage Ratio DSCR Net Income/ Debt

    Uploaded by

    AlvaroDeCamps
    - Retail leases often involve revenue sharing through percentage rents or overage rents. Calculating the debt service coverage ratio considers factors like interest rate risk, tenant credit risk, and operational risk. - Entry costs for commercial real estate are substantial, at least $1 million, and require further investment over time. As long term investments, properties are illiquid and funds are locked up if suitable investment opportunities cannot be found. - Distribution of profits follows a "waterfall" structure, first providing a preferred return for limited partners, then "carried interest" for the general partner, and potentially additional profit splits.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    - Retail leases often involve some type of revenue

    sharing, called percentage rents or overage


    - Interest Rate Risk, Roll-over, Credit Risk of Tenant ,
    Operational, Liquidity, Zoning and Reg
    - MC is the mortgage payment in 1st period (month)
    divided by the total mortgage amount at origination

    Debt Service Coverage Ratio


    DSCR = Net Income/ Debt

    Ver Session 12 Default


    13, GL, scenarios
    14 construir o no

    Rent/Price=(roughly)=User Cost

    Considerations
    Substantial entry cost (at least $1
    million) plus
    further investment for few years down
    the road
    Illiquid (locked-up in long term
    investment)
    If a private equity real estate firm
    can't find suitable investment

    Considerations
    Substantial entry cost (at least $1
    million) plus
    further investment for few years down
    the road
    Illiquid (locked-up in long term
    investment)
    If a private equity real estate firm
    can't find suitable investment
    opportunities, it will not draw on an
    investor's commitment
    Waterfall distribution of profits
    a) preferred return for limited
    partners
    b) carried interest to GP
    (promote)
    c) split arrangements for additional
    profits, if any

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