As IRR is a commonly cited metrics in private placement memoranda for investment properties, make sure you know what it means.

内部收益率是投资性房产私募备忘录中的关键术语，了解它的含义对您意义重大。

- Recognize how IRR is used to compare investment opportunities.
- Understand how the timing and volume of cash flow impacts IRR.
- Learn how to calculate IRR in Microsoft Excel.

- 了解如何使用内部收益率来比较投资机会。
- 了解现金流的时间和数量如何影响内部收益率。
- 学习如何在 Microsoft Excel 中计算内部收益率。

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Real estate investing requires a thorough understanding of the various metrics that are commonly used to compare investment opportunities. One such metric is internal rate of return, or IRR. In fact, given how IRR is so ubiquitously cited in the private placement memoranda of fund and syndication sponsors, you’re going to be lost if you don’t understand what it means. Taking it one step further, the ability to accurately gauge the validity of a sponsor’s target IRR is essential to your success as an investor.

IRR is a percentage that represents the average annualized return of an investment from the day the property is purchased until the day it’s sold. For example, an investor pays $10,000,000 for a retail center that generates a net operating income, or NOI, of $600,000 per year. At the end of the seventh year, they sell the property for $10,000,000. What’s the IRR?

Of course, it’s highly unlikely that NOI and market value would remain flat over seven years. However, the simplicity of this example helps to illustrate the key components that go into calculating IRR. It’s a representation of every dollar that goes into the investment and every dollar that comes out of the investment. It’s probably obvious to you why the IRR in this example is 6%. Under normal circumstances, most of us wouldn’t be able to calculate IRR in our heads.

For the next example, let’s consider how things are likely to change during the holding period. Long-term leases almost always include annual rental rate escalations, so we’re going to assume that NOI grows by 3% each year.

Let’s also make an assumption about the sale price at the end of the holding period. We’ll frame that assumption by means of a going-in cap rate and a terminal cap rate. Referencing the previous example, let’s start out our analysis with a purchase price of $10,000,000 and an NOI in Year 1 of $600,000. That means the going-in cap rate is 6%, indicated by dividing NOI by the purchase price.

As for the terminal cap rate, this is where expertise comes into play. It’s a matter of judgement. For example, let’s postulate that the property is purchased during a low point in the real estate cycle. In seven years, we anticipate selling the property at a high point in the cycle. Even though the property will be seven years older, market forces will warrant a terminal cap rate that’s lower than the going-in cap rate. Our assumption is that it will be 5.5%.

Microsoft Excel is handy for calculating IRR. As shown in Exhibit 2, it calculates that the IRR of the cash flow in this example is 9.7%.

In all likelihood, some observant readers have already spotted the Excel formula in the exhibits. It appears in the field at the top of each exhibit, just to the right of “fx.” Found it? It’s =IRR(C4:J4). In each of these examples, we’re underwriting a 7-year holding period. “Year 0” represents the date of acquisition and “Year 7” is the date of disposition, exactly seven years later. It’s perhaps a little counterintuitive because you need values in eight cells to calculate a 7-year cash flow. The same logic applies to any holding period, meaning that you’ll always start from zero. Modify the formula accordingly to match your specific holding period.

Building on the previous examples, let’s consider a value-add deal. Perhaps the retail center has been mismanaged for an extended period of time. As a result, it’s outdated, has some deferred maintenance issues, and many of its units are currently vacant. It’s only generating an NOI of $300,000.

Exhibit 3

You’re going to acquire the property at a discount and implement a detailed plan for repairs, renovations, and upgrades. You’ll then lease it back up to stabilized occupancy at market rents. Based on your expertise, all of this will be accomplished during the first two years of the holding period at a cost of $1,500,000, in addition to the purchase price of $6,500,000. Since the property will be operating at stabilized occupancy from Year 3, we’ll assume the same growth rate and terminal cap rate that were used in the earlier example.

You may be surprised by the going-in cap rate, which is 4.6%. While that seems low, especially since the stabilized retail center had a cap rate of 6%, the more important consideration in a value-add deal is the proforma cap rate. Your assumption is that NOI would be $600,000 if the property was operating at stabilized occupancy. That means that the proforma cap rate is 9.2%, the proforma NOI divided by the purchase price. In this example, even though cash flow is negative during the first two years of the holding period, you wind up with an IRR of 13.7%.

We’ve covered a number of higher-level concepts in this article. If you need a refresher course on NOI or cap rates, watch our videos on these topics. In our video on the risk/return spectrum, we discuss the IRR range that investors typically expect to receive for value-add and other investment types.

房地产投资需要对常用的各种指标有全面的了解，其中之一就是内部收益率（IRR）。实际上，由于IRR在基金和联合投资的销售备忘录中被广泛引用，如果不理解它的含义，您将会感到困惑。更进一步说，准确评估投资发起人设定的目标IRR的有效性，对于您作为投资者的成功至关重要。

IRR是一个百分比，代表了从资产购买之日起，到资产出售之日的平均年化回报率。例如...

...一位投资者以1,000万美元购买了一个商业中心，该中心每年产生60万美元的净营业收入（NOI）。在第七年结束时，他们以1,000万美元的价格将该房产出售。这个投资的IRR是多少？

当然，净营业收入（NOI）和市场价值在七年内保持不变的可能性极小。然而，这个例子可以简单的说明计算IRR所涉及的关键组成部分。它代表了投资所涉及的每一美元以及从投资中获得的每一美元。很显然，在这个例子中IRR为6%。在正常情况下，大多数人无法心算出IRR。

关于下一个例子...

让我们考虑在持有期间可能发生的变化。长期租约几乎总是包括每年的租金上涨，因此我们假设净营业收入（NOI）每年增长3%。让我们对持有期结束时的售价做一个假设。我们将通过起始资本化率和终值资本化率来构建这个假设。参考前面的例子，假设购买价格为1,000万美元，第1年的净营业收入为60万美元。这意味着起始资本化率为6%。

至于终值资本化率，这就需要专业知识来发挥作用。这是一个判断的问题，例如，假设该资产是在房地产周期的低点购买的。在七年后，我们预计将在周期的高点出售该资产。尽管资产将折旧七年，但在市场的作用下，将使得终值资本化率低于起始资本化率。我们假设终值资本化率为5.5%。

Microsoft Excel可以很快计算出IRR。如何计算IRR的说明已包含在下面的描述中。另外，在我们的网站beyondlenders.com上有一个IRR计算器。在这笔投资中，IRR为9.7%。

在前面的例子基础上...

Exhibit 3

让我们考虑一个增值投资交易。也许这个零售中心长期以来一直管理不善。因此，它已经过时，有一些维护问题，并且许多单位目前是空置的。它只能产生30万美元的净营业收入（NOI）。

您以折扣价购买该资产，并制定了一个详细的修复、翻新和升级计划。然后，您将按市场价将其租出，使其恢复到稳定的出租率。根据您的专业知识，所有这些将在持有期的前两年内完成，成本为150万美元，加上650万美元的购买价格。由于资产将从第3年开始达到稳定的出租率，我们假设与前面的例子使用的相同增长率和终值资本化率。

您可能会对起始资本化率感到意外，它为4.6%。4.6%看起来很低，尤其是考虑到稳定的商业中心资本化率为6%，但在增值交易中更重要的考虑因素是预计资本化率。您的假设是如果该房产以稳定的出租率运营，NOI将为60万美元。这意味着预计资本化率为9.2%，即预计NOI除以购买价格。在这个例子中，尽管持有期的头两年现金流为负，您最终得到的IRR为13.7%。

要深入了解资本化率或增值投资，请参阅下方描述中的链接。在我们的风险回报分类视频中，我们还讨论了投资者通常希望获得的增值比例和其他投资类型的IRR范围。

As Creative Content Manager, Evan leverages over 20 years of experience in the commercial real estate and banking industries to bring insightful information to our community of lenders. He's also an active member of FIABCI, the International Real Estate Federation, currently serving as Vice President of its World Council of Developers and Investors, as well as President of its USA chapter, FIABCI-USA. 作为彼岸的创意内容经理，埃文利用自己在商业房地产和银行业从业的20多年经验，为我们的网站提供有见地的信息。他还是国际房地产联合会 FIABCI 的活跃成员，曾任FIABCI全球专家委员会秘书长，现任FIABCI美国分会FIABCI-USA主席。