Understand value on a clear basis.

Connect property information, market evidence and financial methods. We are developing valuation workflows you can inspect and explain.

Discuss valuation

Income → yield → value

One assumption. A different value.

Keep the income constant and change the capitalisation yield. See exactly what drives the value in this simple income example.

Illustrative office property

Annual net operating income£600,000After property operating costs

Choose a capitalisation yield

Net operating income ÷ yield = value

Indicated capital value£12.0m

The reference case at a 5.0% yield.

£13.33m

4.5% yield

£12.0m

5.0% yield

£10.91m

5.5% yield

What this tells you

A higher yield means a lower value for the same income. The method and assumptions must fit the property and the purpose of the valuation.

Illustrative example · Direct capitalisation of annual net operating income; GBP. Excludes acquisition costs, debt and tax. Not a market valuation. The application workflow is in development.

Define the assignment.

The asset, economic interest, valuation date and purpose shape the analysis. A valuation and an acquisition decision ask different questions.

Examine the assumptions.

Connect relevant income, expenditure and market evidence to the method being used.

Understand a different outcome.

Explore how assumptions and scenarios affect value, and how that view contributes to an asset or portfolio decision.