Returns Summary

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Data for this section of the Summary page is drawn from the Development Pro-Forma tab. Estimates of return on equity will interest potential investors in evaluating the profitability of your project. The summary of this section is divided into the following fields:

• Cash on Cash Return on Equity, which calculates the percent of return on equity given the amount invested by the developer (Developer Equity) and the Cash Flow for Years 1, 2, 5, 10, 15, and 30. The second project year is used because most properties have achieved full occupancy at that point.
  
  
• Internal Rate of Return (IRR), which represents the rate of return on an initial investment across cash flows from multiple years, until the property is sold. The calculation includes an estimate of the value of the property when it will be sold in order to include it as a cash flow for that year.