Lending & investment · Defined
Debt yield
Defined annual property income, commonly NOI, divided by the loan amount. It expresses income relative to debt without directly using an interest rate or amortization schedule.
Why it matters
Specify whether the income is current or projected and which loan balance is used. Debt yield is not an investment return or a measure of physical building condition.
In practice
A project example
A forecast based on stabilized leasing can produce a different debt yield from one based on current collections.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.