Actual gross income. Income capitalization method

The real estate appraiser works with the following income levels:

LDPE (potential gross income);

DVD (Actual Gross Income);

CHOD (clean operating income);

DP (cash receipts) before taxes.

Potential Gross Income (Gross Income)- income that can be obtained from real estate, with 100% use of it, excluding all losses and expenses. LDPE depends on the area of ​​the assessed object and the adopted rental rate and is calculated using the formula

PVD = S Ca, (3.2)

where S is the leased area, m 2;

Ca is the rental rate for 1 m 2.

The lease is the main source of information about income-generating real estate. Rent - the provision of property to the lessee (tenant) for a fee for temporary possession and use. The right to lease property belongs to the owner of this property. Landlords can be persons authorized by law or the owner to lease the property. One of the main normative documents governing rental relations is Civil Code RF (Ch. 34).

The appraiser in the process of work relies on the following provisions of the lease agreement:

Under a lease agreement for a building or structure, the tenant, simultaneously with the transfer of ownership and use of such real estate, is transferred the right to use that part of the land plot that is occupied by this real estate and is necessary for its use, even when land plot on which the rented buildings or structures are located is sold to another person;

If the lease term is not specified in the agreement, then the lease agreement is considered concluded for an indefinite period;

The transfer of property for rent is not a basis for the termination or cancellation of the rights of third parties to this property.

When concluding a lease agreement, the lessor is obliged to warn the tenant about all the rights of third parties to the leased property (easement, right of pledge, etc.). Otherwise, the lessee has the right to demand a reduction in the rent or termination of the contract and compensation for losses.

Lease agreement for a building or structure

is in writing for a period of at least one year, subject to state registration and is considered concluded from the moment of such registration;

provides for the conditions and amounts of the rent agreed by the parties, without which the lease agreement is considered not concluded.

If the tenant has made at the expense of own funds and with the consent of the lessor, improvements to the leased property that are not separable without harm to the property, he has the right, after the termination of the contract, to reimburse the cost of these improvements, unless otherwise provided by the lease contract. The cost of inseparable improvements to the rented property made by the lessee without the consent of the lessor is non-refundable.

The lessee has the right, with the consent of the lessor, to sublease the leased property, provide the leased property for free use, and also make it as a contribution to the authorized capital.

The amount of the rental rate, as a rule, depends on the location of the object, its physical condition, availability of communications, rental period, etc.

Rental rates are:

Contractual (determined by the lease agreement);

Market (typical for a given market segment in a given region).

The market rental rate is the rate that prevails in the market for similar properties, i.e. is the most likely amount of rent for which a typical landlord would agree to rent, and a typical tenant would agree to lease the property, which is a hypothetical transaction. The market rental rate is used in assessing full ownership when, in essence, the property is owned, managed and used by the owner (what would be the stream of income if the property were rented out). The contract rental rate is used to estimate partial property rights lessor. In this case, it is advisable for the appraiser to analyze the lease agreements in terms of the terms of their conclusion. All leases are divided into three large groups:

With a fixed rental rate (used in conditions of economic stability);

With a variable rental rate (the revision of rental rates during the term of the agreement is made, as a rule, in conditions of inflation);

With an interest rate (when to a fixed amount lease payments the percentage of the income received by the tenant from the use of the rented property is added).

It is advisable to use the income capitalization method in the case of concluding an agreement with a fixed rental rate, in other cases it is more correct to use the discounted method. cash flows.

Actual Gross Income (DVD) Is the potential gross income minus losses from underutilization of space and from collection of rent with the addition of other income from the normal market use of the property:

DWD = LDPE - Losses + Other income. (3.3)

Typically, these losses are expressed as a percentage of potential gross income. Losses are calculated at the rate determined for the typical level of governance in a given market, i.e. the market indicator is taken as a basis. But this is possible only in the presence of significant information base for comparable objects. In the absence of such, to determine the underutilization ratio (underutilization), the appraiser, first of all, analyzes the retrospective and current information on the evaluated object, i.e. existing leases by validity, the frequency of their renewal, the length of the periods between the expiration of one lease and the conclusion of the next (the period during which the units of the real estate object are free) and on this basis calculates the underutilization coefficient (Knd) of the real estate object:

Knd = (Dn ´ Tc) / Na, (3.4)

whereДн is the share of units of the real estate object for which contracts are renegotiated during the year;

Тс - the average period during which a unit of the real estate object is free;

Nа is the number of rental periods per year.

Determination of the underutilization factor is carried out on the basis of retrospective and current information, therefore, in order to calculate the estimated DIA, the obtained factor should be adjusted taking into account the possible occupancy of areas in the future, which depends on the following factors:

General economic situation;

Prospects for the development of the region;

Stages of the real estate market cycle;

Supply and demand relationships in the estimated regional segment of the real estate market.

Loading factor depends on different types of real estate (hotels, shops, apartment buildings etc.). When operating real estate objects, it is desirable to maintain the load factor at a high level, since a significant part of operating costs is constant and does not depend on the load level:

K load = 1 - Knd. (3.5)

The appraiser makes an allowance for losses in collection of payments by analyzing retrospective information on a specific object with subsequent forecasting of this dynamics for the future (depending on the prospects for the development of a particular segment of the real estate market in the region).

Based on historical and current information, the appraiser can calculate the underutilization and loss ratio in collecting lease payments, and then adjust it to predict the value of the actual gross income.

In case of losses from underutilization and collection of rent payments, other income must be taken into account that can be linked to the normal use of the property for service purposes, for example, tenants (income from renting a car park, warehouse, etc.), and which are not included in rent.

Net operating income (NPR)- actual gross income minus operating expenses (OP) for the year (excluding depreciation charges):

CHOD = DVD - OR. (3.6)

Operating expenses are expenses necessary to ensure the normal functioning of the property and the reproduction of the actual gross income.

Operating expenses are usually divided into:

Conditionally permanent;

Conditionally variable, or operational;

Replacement costs, or reserves.

Conditionally fixed costs include costs, the amount of which does not depend on the degree of operational load of the facility and the level of services provided:

Property tax;

Insurance premiums (property insurance payments);

The salary of the service personnel (if it is fixed regardless of the building load) plus taxes on it.

Provisional variable costs include costs, the amount of which depends on the degree of operational workload of the facility and the level of services provided:

Communal;

For current repair work;

Service personnel salaries;

Taxes on wages;

Security costs;

Management costs (it is usually customary to determine the amount of management costs as a percentage of actual gross income), etc.

Expenses not included in the assessment for tax purposes:

Economic and tax depreciation, which is considered in the calculation of the income approach as a compensation and is considered a part of the capitalization rate, and not an operating cost;

Loan servicing, which is a financing expense, not an operating expense, i.e. financing should not have an impact on the value of real estate (the assessment assumes typical financing for this type of real estate, and the influence of atypical financing must be excluded);

Income tax, which is also not an operating expense (this is a tax on personal income, which may depend on factors (form of ownership, composition of property rights, tax status of the owner) not related to the property being valued);

Additional capital structures typically increase revenue, overall cost, or economic life. The costs associated with them cannot be attributed to operating costs.

Business expenses of a property owner, which do not lead to an increase in income from the property, are also not related to operating expenses.

Replacement costs includes the cost of periodically replacing high-wear improvements (roofing, flooring, sanitary equipment, electrical fittings). Funds are assumed to be reserved in an account (although most property owners do not really do this). The replacement reserve is calculated by the appraiser taking into account the value of short-term assets, the duration of their useful life, as well as interest accrued on the funds accumulated on the account. Excluding the provision for replacement, net operating income would be overestimated.

In cases where real estate is acquired with the involvement of borrowed funds, the appraiser uses in calculations such a level of income as cash receipts before taxes.

Cash receipts before taxes are equal to net operating income minus annual debt service costs, i.e. reflect the cash receipts that the owner of the property receives annually from its operation.

Rational management in the field of real estate involves, first of all, ensuring the most productive use of the property as an economic resource and finding ways to increase this use. At the same time, it is taken into account that the efficiency criteria for profitable objects should be based on the parameters of the object's profitability.

Income approach to appraisal of the value of real estate objects - a set of methods for appraising the value of the appraisal object, based on the determination of the expected income from the appraisal object.

The income approach is used only for evaluating profitable real estate, that is, such real estate, the only purpose of which is to generate income, and it is based on following principles real estate appraisals:

• the expectation principle (the value of an object that generates income is determined by the current value of future income that this object will bring);
• the principle of substitution (the value of a real estate object tends to be set at the level of the value of the effective investment required to acquire a comparable, substitute object that brings the desired profit).

The essence of the income approach is to estimate the current (current) value of the future benefits that are expected to result from the operation and possible sale in the future. real estate, that is, by capitalizing income.

Capitalization of income is the process of recalculating the flow of future income into a final value equal to the sum of their current values. These values ​​take into account:

• the amount of future income;
• the time when the income should be received;
• duration of income generation.

Determining the market value of real estate using an income approach takes place in two stages:

• forecasting future income;
• capitalization of future earnings into present value.

Forecasting future income based on the use financial statements owner:

• simplified balance sheet;
• cash flow statement reconstructed by an appraiser for tasks economic analysis items of income and expenses.

The forecasting results are summarized in the budget of income and expenses for the operation of the property. The forecast horizon is chosen by the owner, but the most frequently used is the ownership period. The structure of the budget, the list and sequence for determining income and expenses is presented in Table 3.

Potential Gross Income (LDP or PGI)- the total income from real estate, which can be obtained from real estate at 100% employment, excluding all losses and expenses. LDPE is equal to the sum of four components:

Contract Annual Rent (Planned Lease), PC- the part of the potential gross income that is generated by the terms of the lease. When calculating this indicator, it is necessary to take into account all discounts and compensations aimed at attracting tenants: such positions may have the form additional services tenants, opportunities for them to terminate the contract, use of the building's reputation, etc.

Rolling income, PH- a part of the potential gross income, which is formed due to clauses of the agreement providing for additional payment by tenants for those expenses that exceed the values ​​specified in the agreement.

Market annual rent (market rent), PM- the part of the potential gross income that relates to free and occupied space by the owner and is determined on the basis of market rental rates.

Other income, PA- income received from the functioning of the property and is not included in the rent. Represents income from a business inextricably linked to a property, as well as rental income land plots and the frame of the building, not the main premises: auxiliary and technical.

It should be noted that the first three components relate to the use of the main premises of the building, and the fourth to the free part of the land plot, as well as to the premises and structural elements for auxiliary or technical purposes.

Loss of income (PD or V&L)- losses caused by underloading - due to limited demand or loss of time to change the tenant and losses associated with the delay or termination of regular rent payments by tenants due to their loss of solvency.

The losses for the forecast year are determined based on the processing of information on the local market for previous years.

For each component of LDPE, the calculation of losses from underloading or non-payments is recommended to be carried out separately:

The calculated value of the size of the loss coefficient of income from underloading K v, K * v (in fractions of a unit) is determined based on the analysis of the underloading factor (k j) of real estate objects of this type during the last m j months, as follows:

where k j is the proportion, n is the total number of analyzed objects, Y j is a weight factor that takes into account the difference in the qualities of the j-th object and its management in comparison with the object of assessment, while it is true

The calculated value of the size of the coefficient of income loss due to non-payments K l, K * l (in unit shares) is determined based on the analysis of the share of premises (aj) of real estate of this type and the number of months gj for which the rent was not paid during the past year in the following way:

Example 1. Determine the loss of income from non-payment and underloading, if it is known that: the contractual annual rent (planned lease) is 300 thousand rubles; rolling income - 200 thousand rubles; annual market rent (market rent) - 100 thousand rubles; there are no other incomes; analysis of the local real estate market over the past 12 months revealed the following indicators:

1. Let us determine the calculated value of the size of the loss coefficient of income from underutilization:

2. Determine the calculated value of the size of the loss ratio of income from underutilization:

3. Let's define the loss of income from non-payment and underloading:

Thousand. rub.

Actual (effective) gross income (DVD or EGI)- the estimated income with the full operation of the property, taking into account losses from unemployment, change of tenants and non-payment of rent:

Operating expenses (OR or OE)- These are recurring costs to ensure the normal functioning of the facility and the reproduction of potential gross income. Operating income is usually divided into:

• conditionally fixed costs or expenses;
• conditionally variable costs or expenses;
• replacement costs or reserves

Conditionally permanent- costs, the amount of which does not depend on the degree of operational workload of the facility.

Conditional variables- costs, the amount of which depends on the degree of operational workload of the facility.

Substitution costs- the cost of periodic replacement of high-wearing elements of the structure, which are annual deductions to the replacement fund.

Example 2. Determine the replacement costs, if it is known that: the owner intends to use the subject of assessment for his own purposes for five years; roof repairs are required every ten years; the cost of roof repair is 500 thousand rubles; the last renovation was made eight years ago.

1. Let's determine the replacement costs for the first year of ownership:

thousand roubles.

If replacement costs are not envisaged during the estimated period of ownership, then depreciation is recorded, bearing in mind the possible resale (reversion).

Example 3. Determine the replacement costs, if it is known that: the owner intends to use the subject of assessment for his own purposes for five years; roof repairs are required every ten years; the cost of roof repair is 500 thousand rubles; the last time it was renovated two years ago.

1. Determine the cost of replacement:

Roof repairs will have to be done by the new owner, therefore, replacement costs are 0;

2. Determine the decrease in income from the sale of the object (reversion price):

Thousand. rub.

Net operating income (NPR or NOI)- clean annual income for all capital (equity and debt) invested in the subject of assessment, calculated as actual gross income minus operating expenses:

CHOD includes two components: the part attributable to borrowed funds (debt service payments, ML or DS - service payments mortgage loans) and the part attributable to own (net gross income, NPI or PTCF).

In turn, the net income from the operation of the facility (NP or ATCF) is the difference between the net income tax and income tax (NPP or Tax) and contains the net profit (NP) and the amount reserved to provide simple reproduction the wear-out object upon the expiration of its useful use(capital costs, KZ):

Income from the sale of an object (reversion) is defined as the cash flow received by the investor at the end of the project. The amount of income from the reversion is predicted:

• direct assignment of the absolute value of the reversion;
• the appointment of the relative change in the value of real estate for the period of ownership;
• the appointment of the terminal capitalization ratio (Rt).

When compiling a reconstructed statement of income and expenses, the following are not taken into account:

• business-related expenses;
• accounting depreciation;
• owner's income taxes

Capitalization of future earnings into present value carried out using:

• method of direct capitalization, which includes techniques of multipliers of gross income, techniques of capitalization ratios and techniques of the remainder;
• method of capitalization at the rate of return, which includes direct discounting techniques, model techniques and techniques of mortgage investment analysis.

Direct capitalization method establishes a link between any income calculated at the end of the first year following the valuation date with the value of the property (V o) by means of the cash flow rate (multiplier or capitalization ratio).

The method includes techniques of multipliers of gross income, techniques of capitalization ratios and techniques of remainder.

Gross income multiplier techniques

The basis for determining the value of a property is the following techniques:

• technique of LDPE multipliers;
• technique of DVD multipliers.

The capitalization procedure for these methods consists in multiplying, respectively, PVD or DWD by the average market multiplier values ​​typical for the assessed type of real estate.

V o = PGI M PGI (8)

V o = EGI M EGI (9)

The multipliers are determined based on the processing of market data on sales prices (P j) and on the values ​​of income, respectively, PGI j or EGI j at the end of the year following the date of sale for specific objects, using Yj - a weight factor that takes into account the difference in the qualities of the j-th object and its management in comparison with the subject of assessment.

Example 4. Determine the value of the real estate object using the techniques of gross income multipliers, if it is known that: LDPE and DWD for the object of assessment are defined as 1270 thousand rubles. and 1,020 thousand rubles. respectively; on the local market, the following transactions were recorded with real estate objects similar to the assessed one:

Let us determine the average market values ​​of the VDP multiplier and the DVD multiplier using expressions 9 and 10:

Determine the value of the property using expressions 7 and 8:

Thousand. rub.

Capitalization Ratio Techniques provide the determination of the value of the property through the capitalization of the CHOD (NOI or I O) by dividing it by the rate of cash flow, called total capitalization ratio:

The determination of the total capitalization ratio is based on one of the following techniques:

• property component group technique;
• the technique of an investment group or a group of capital components;
• debt coverage ratio technique;
• Technics comparative analysis;
• operating cost ratio technique.

Benchmarking technique consists in processing market data on sales prices P j and net operating income I oj at the end of the year following the date of sale using Yj - a weight factor that takes into account the difference in the qualities of the j-th object and its management in comparison with the object of assessment:

This method is the most preferred, however, it requires reliable and complete information about the objects of comparable sales.

Example 5. Determine the value of the real estate object using the comparative analysis technique, if it is known that: the net operating income of the appraisal object is determined in the amount of 910 thousand rubles; on the local market, the following transactions were recorded with real estate objects similar to the assessed one:

thousand roubles.

This method is the most preferable, however, it requires reliable and complete information about objects of comparable sales.

Property Component Group Technique is based on the assumption that if there are physical components of land and a building in the property, the total capitalization ratio should satisfy the income requirements of the owners of all interests ():

where L is the share of the value of the land value V L in the value of the market value of the entire object V O, V B - market price improvements (buildings), R L is the market value of the capitalization ratio for land, R B is the market value of the capitalization ratio for improvements (buildings). V L can be determined using the sales comparison method or the allocation method for land valuation.

Example 6. Determine the value of the property using the technique of a group of property components, if it is known that: an analysis of the local market shows that a land plot of a similar size in the immediate vicinity of the property being evaluated can be bought for 500 thousand rubles; estimated cost construction of a building similar to the appraisal object is 1,500 thousand rubles; market value of the capitalization ratio for land - 0.3; market value of the capitalization ratio for improvements (buildings) - 0.20; the net operating income of the appraised object is determined in the amount of 910 thousand rubles.

1. Let us determine the share of the value of the land in the value of the market value of the entire object:

thousand roubles.

Investment Group or Capital Component Group Technique is based on the assumption that if there are financial interests of the owners in the property equity capital and creditors, the total capitalization ratio must satisfy the income requirements of the owners of all interests ():

where M is the share of the amount of borrowed capital V M in the value of the market value of the entire object V O, V E is the market value of equity capital, R M is the market value of the capitalization ratio for borrowed capital, R E is the market value of the capitalization ratio of equity capital, ML is the sum mortgage loan, EI is the amount of equity capital. V M can be determined on the basis of an analysis of market transactions with properties similar to the valued one.

Example 7. Determine the value of the real estate object using the technique of a group of capital components, if it is known that: the amount of the mortgage loan is 1,000 thousand rubles; debt service cost - 250 thousand rubles / year; the amount of equity capital invested in the real estate object - 2,900 thousand rubles; the net operating income of the appraised object was determined in the amount of 910 thousand rubles; net gross income - 650 thousand rubles; on the local market, the average price of real estate objects similar to the assessed one is 4,300 thousand rubles.

1. Determine the share of the cost of borrowed capital in the value of the market value of the entire object:

2. Determine the overall capitalization ratio:

thousand roubles.

Debt coverage ratio technique assumes the definition of R O taking into account the required debt coverage:

where DCR is the debt coverage ratio.

Example 8. Determine the value of the real estate object using the debt coverage ratio technique, if it is known that: the amount of the mortgage loan - 1,000 thousand rubles; debt service cost - 250 thousand rubles / year; the amount of equity capital invested in the real estate object - 2,900 thousand rubles; the net operating income of the appraised object was determined in the amount of 910 thousand rubles; on the local market, the average price of real estate objects similar to the assessed one is 4,300 thousand rubles.

1. Let's determine the overall capitalization ratio:

2. Determine the value of the property:

thousand roubles.

Operating Cost Ratio Technique it is used in cases where complete information about the objects of comparison is not available, but there is data on the Department of Internal Affairs and OR:

where K OE is the operating income ratio.

Example 9. Determine the value of the real estate object using the operating cost coefficient technique, if it is known that: the multiplier of the DVD is 4.063; DIA and OR for the object of assessment is defined as 1,020 thousand rubles. and 110 thousand rubles. respectively;

1. Let's determine the overall capitalization ratio:

2. Determine the value of the property:

thousand roubles.

Remnant techniques consist in the capitalization of income related to one of the investment components, while the value of the others is known and can be fairly accurately determined.

Determining the value of a property is based on one of the following techniques:

• residue technique for land;
• residue technique for improvements;
• balance for equity;
• balance technique for debt capital.

Remnant technique for earth used in the analysis of the best and most effective use land, defining the cost of improvements such as the cost of a new building. The use of technology turns out to be effective if there is no reliable data on land sales:

Example 10. Determine the value of the property using the land remainder technique, if it is known that:

• the estimated cost of construction of a building similar to the appraisal object is 1,500 thousand rubles;
• the net operating income of the appraised object was determined in the amount of 910 thousand rubles;
• market value of the capitalization ratio for land - 0.3;
• the market value of the capitalization ratio for improvements (buildings) is 0.20.

Let's determine the value of the property:

Thousand. rub.

Remainder Technique for Improvements used in analysis economic feasibility modernization or liquidation of a building, as it directly measures the building's contribution to value. The use of the technique is also advisable for the appraisal of real estate with significant wear and tear:

Example 11. Determine the value of the property using the leftover technique for improvements, if it is known that: an analysis of the local market shows that a land plot of a similar size in the immediate vicinity of the property being evaluated can be bought for 500 thousand rubles; the net operating income of the appraised object was determined in the amount of 910 thousand rubles; market value of the capitalization ratio for land - 0.3; the market value of the capitalization ratio for improvements (buildings) is 0.20.

Let's determine the value of the property:

thousand roubles.

Balance Technique for Equity is used to assess the full ownership of a newly constructed property:

Example 12. Determine the value of the real estate object using the balance technique for equity capital, if it is known that: the amount of the mortgage loan is 1,000 thousand rubles; debt service cost - 250 thousand rubles / year; the amount of equity capital invested in the real estate object - 2,900 thousand rubles; the net operating income of the appraised object was determined in the amount of 910 thousand rubles; net gross income - 650 thousand rubles.

Let's determine the value of the property:

thousand roubles.

Remaining technique for debt capital is also used to assess the full ownership of a newly constructed real estate object:

Example 13. Determine the value of the real estate object using the balance technique for equity capital, if it is known that: the amount of the mortgage loan - 1,000 thousand rubles; debt service cost - 250 thousand rubles / year; the amount of equity capital invested in the real estate object - 2,900 thousand rubles; the net operating income of the appraised object was determined in the amount of 910 thousand rubles; net gross income - 650 thousand rubles.

Let's determine the value of the property:

thousand roubles.

Rate of return capitalization method establishes (using the rate of return on capital as the rate of discount) the relationship between the values ​​of net operating income, calculated for each year of the entire forecast period, and the cost of reversion at the end last year the forecast period with the cost of the object.

The method includes a number of techniques that differ in the choice of the type of income capitalized and the method of capitalization:

• direct discounting techniques;
• model techniques;
• mortgage investment analysis techniques.

Direct discounting techniques provide the determination of the value of the real estate object through discounting the flows of net operating income (I O) and reversion V On using local (for periods) and average values ​​of the total rate of return Y O:

The average value of the total rate of return is determined by processing market information about profitability investment projects associated with the acquisition and profitable use of objects, or using information on the profitability of alternative projects closest to the evaluated type of objects in terms of the level of risk.

The following techniques are used to determine the average total rate of return Y O:

• cumulative construction technique;
• technique of comparison with alternative projects;
• sales comparison technique;
• market data monitoring technique.

Discounting technique with risk summation (cumulative plotting technique) consists in the summation of the values ​​reflecting the degree of risk of the given project. The general construction structure is as follows:

where Y RF is the risk-free rate, which includes the non-inflationary component and the value of the inflation index; Y R - risk premium, including the premium for the following types risks: physical, legal, economic, financial and social, both external (country risk) and internal, with the exception of the premium for the risk of low liquidity and the premium for risks associated with financial management, which are isolated in order to emphasize distinctive feature real estate from others financial instruments; Y L - premiums for the risk of low liquidity; Y FM - premiums for risks associated with financial management

Example 14. Determine the value of the real estate object using the discounting technique with the summation of risks, if it is known that: the owner intends to use the object of appraisal for his own purposes for three years, and then resell it for 4,500 thousand rubles; net operating income from the appraisal object is determined in the amount of 910 thousand rubles, 950 thousand rubles, 990 thousand rubles. respectively for the first, second and third year of ownership of the object; risk-free rate - 0.03; country risk premium - 0.06; physical risk premium - 0.025; premium for economic risks - 0.015; social risk premium - 0.03; low liquidity risk premium - 0.04; premium for risks associated with financial management - 0.03.

1. Define average general rate of return:

2. Determine the value of the property:

Comparison technique with alternative designs is to search for financial market investment projects with a similar degree of risk for subsequent adjustment of their rate of return in relation to real estate investments.

In this case, for the value of the general rate of return Y O, a range of possible values ​​is determined with boundaries from the bottom Y 1 and from the top Y 2:

Sales comparison technique consists in analyzing data on completed purchase and sale transactions in order to recreate the investor's assumptions about the future benefits of owning real estate. Based on the project cash flow scheme, it is determined internal norm profit of the project.

Market Data Monitoring Technique consists in the analysis of historical market data in order to determine the current prospective values ​​of profit margins. At the same time, correlations between trends in the profitability of real estate investments with trends in other financial market instruments should be used.

Model Techniques provide the determination of the market value of the entire property for relatively simple special cases of capitalization of net operating income that do not change over periods, and the value of the reversion cost associated with the desired value by predicting its change over time:

where d n = 1 / (1+ Y O) n is the discount factor, a n = 1 / (1- d n) n is the current value of a unit annuity.

In this case, the same for all periods is used. general norm return, determined similarly to the value of the total capitalization ratio:

where SFF O = 1 / S On is the coefficient of the compensation fund, S On = 1 / (1 + Y O) n –1 is the future value of a unit annuity, Δ O = (V On - V O) / V O is the value of the relative increment in the value of the object.

This group includes:

• equipment without depreciation;
• full depreciation techniques;
• technicians linear depreciation.

Techniques excluding depreciation applies in two cases: either there is an infinite income stream (SFF O → 0), or the income stream is finite, but the selling price of the object is starting price purchases (Δ O = 0), i.e. the initial investment.

The value of such real estate is determined by dividing the net operating income by the appropriate rate of return (12).

Example 15. Determine the value of the real estate object using model techniques, excluding depreciation, if it is known that: the owner intends to use the object of assessment for his own purposes for three years, and then resell at the purchase price; net operating income from the appraised object was determined in the amount of 910 thousand rubles. for each year of ownership of the object; the rate of return on capital is set at 0.203

Let's determine the value of the property:

thousand roubles.

Full cushioning techniques are used in cases when income from exploitation provides not only the formation of income on capital, but also a full return of capital (Δ O = -1, R 0 = Y 0 + SFF O).

As a result, (26) takes the following form:

To calculate the reimbursement fund factor (SFF O), use the rate of return characteristic of the project being assessed (Inwood technique) or at the risk-free rate (Hoskold technique)

Example 16. Determine the value of the property using Inwood's full depreciation model technique and Hoskold's full depreciation model technique, if it is known that: the owner intends to use the appraised object for his own purposes for three years, and then resell it at the purchase price; net operating income from the appraised object was determined in the amount of 910 thousand rubles. for each year of ownership of the object; the rate of return on capital is set at 0.10; the risk-free rate is set at 0.06.

1. Technique Inwood:

1.1 Let's determine the overall capitalization ratio:

1.2 Determine the value of the property:

thousand roubles.

2. Hoskold's technique:

2.1 Determine the overall capitalization ratio:

2.2 Determine the value of the property:

thousand roubles.

Linear depreciation techniques are used to determine the present value in cases where both the income and the value of real estate change in a known regular manner.

To account for changes in the value of an asset, the basic formula Ellwood:

where A is the amount of adjustment.

In this case, if the value of the object decreases, then adjustment A has a "+" sign, and if the cost increases, then the adjustment will have a "-" sign.

The numerical value of the adjustment is determined by multiplying the relative change in value (Δ O) by the factor of the compensation fund (SFF O), and the general formula for the capitalization ratio takes the form (26).

Example 17. Determine the value of a real estate object using model techniques of linear depreciation, if it is known that: the owner intends to use the object of appraisal for his own purposes for three years, the value of the object will decrease during the period of ownership by 12%; net operating income from the appraised object was determined in the amount of 910 thousand rubles. for each year of ownership of the object; the rate of return on capital is set at 0.10.

1. Determine the value of the relative increment in the value of the object:

2. Determine the overall capitalization ratio:

3. Determine the value of the property:

thousand roubles.

Mortgage Investment Analysis Techniques ensure the determination of the value of real estate, taking into account changes in its value and income, as well as taking into account the terms of financing. There are two techniques for mortgage investment analysis:

• discounted mortgage investment analysis technique;
• model analysis technique (Ellwood technique).

Discounted Mortgage Investment Analysis Technique based on the addition of the principal amount of the mortgage loan (V M) with the discounted present value of the future cash receipts and proceeds from the resale of the asset:

where d En = 1 / (1+ YE) n is a discount factor, a En = 1 / (1- d En) n is the present value of a unit annuity, calculated for n periods at a rate of return on equity, YE is determined by the same techniques , as the general rate of return, IE = NOI - DS is the amount of income on equity capital, V En = V On - V Mn is the cost of reversion for equity capital, defined as the difference between the total cost of reversion (V On) and the balance of loan payments ( V Mn).

Example 18. Determine the value of the real estate object using the technique of mortgage and investment analysis with discounting, if it is known that: the owner spent 3400 thousand rubles for the purchase of the object of appraisal two years ago; a loan in the amount of 1,000 thousand rubles was obtained for the purchase of the property. at 13% per annum for six years (annual debt service payment of 250 thousand rubles); the owner intends to use the appraisal object for his own purposes for three years, and then resell it for 4000 thousand rubles; net operating income from the appraised object was determined in the amount of 910 thousand rubles. for each year of ownership of the object; the rate of return on capital is set at 0.10.

1. Determine the loan balance at the time of appraisal (third year of the loan) and at the end of the holding period (fifth year of the loan):

Thousand. rub.

Thousand. rub.

2. Determine the value of the property:

Thousand. rub.

Model analysis technique (Ellwood technique)

This technique is used for special cases of constancy of income and rates of return. This technique is based on the formula for calculating the total capitalization ratio:

where r O is the basic capitalization ratio, which is based on the investor's requirements for the rate of return on equity capital before adjustments for changes in income and property value. If the income and value of the property do not change, the base capitalization ratio will correspond to the total capitalization ratio; P = [(l + Y m) N -1] / [(l + Y m) n -1] - the share of the self-depreciating loan paid by the end of the n-th period, with the total term of the loan agreement equal to N years (see. above), Y m - effective rate interest on this loan.

Net operating income – English Net Operating Income, is calculated by subtracting all operating expenses from the annual gross income, but this does not deduct interest expenses, depreciation tangible assets and amortization intangible assets as well as a liability for income tax. While this metric has limited value in the management of a company's available resources, it can be useful in understanding the impact of operating expenses on gross income from operating and non-operating activities. From this point of view, an indicator such as net operating income can be a useful tool for identifying areas of activity that are not performing at optimal levels.

One of the most important factors for the successful operation of a company is the creation of such a management model that allows you to generate the maximum possible amount of income, while keeping operating costs as low as possible required to sell high quality goods and / or services. Accurately calculating the amount of net operating income that was generated over a period of time (for example, a quarter or a calendar year) allows you to determine whether a company is performing at the highest possible level of efficiency. If the effect of operating leverage ( English Degree of Operating Leverage, DOL) is not as high as it should be, management should take steps to assess each area of ​​work and determine how to improve efficiency and thus reduce operating costs. As a result, the company will be able to generate a higher amount of net operating income to cover any non-operating expenses, such as, for example, interest on loans, equipment upgrades or financing of expansion projects.

Changes in net operating income from one period to the next can often serve as a means of identifying an emerging trend that will affect the future operations of a company. For example, if there is a significant decline in this indicator after the operating expenses have been covered, and this trend continues for two or more reporting periods, the top managers of the company need to study the reasons for the decline. For example, they can be a seasonal drop in sales, a decrease in income from previous investments, an increase in raw materials prices, etc. Once the cause is identified, the company can take steps to get out of this situation, and thus maintain a sustainable financial situation companies.

It should be noted that when calculating the amount of net operating income, some companies may resort to not entirely ethical practice of maintaining accounting, the purpose of which is to distort the real situation for certain purposes. For example, this could mean that accounting is organized in a way that underreports net operating income. The purpose of this manipulation is to minimize tax liabilities or misleading investors. The methods used for this, as a rule, are within the framework of the current legislation, however, the ethical side of such a practice can be very questionable.

The income approach defines the market value of real estate as the amount of income that the appraised object can bring in the future, adjusted for the risk of their shortfall. Real estate appraisal using the income approach methods is based on forecasting future incomes generated by objects, and analyzing the associated risks that may provoke a discrepancy between actual income and the value calculated as of the valuation date.

For a reasonable application of the income approach, the following conditions must be met:

The evaluated object brings a sufficiently large positive of the following conditions;

The amount of future income can be reliably calculated;

The risks inherent in the property being appraised can be reliably assessed.

Real estate appraisal in terms of its ability to generate income for the owner as the main investment motivation has certain advantages and disadvantages. The positive aspect of this approach is the focus on future benefits, which is undoubtedly a priority for the investor; further, the calculation of the rate of return is based on the risk assessment of the property being assessed, which requires its positioning on investment market... The negative side of the income approach is the complexity of forecasting income and expenses associated with the evaluated object, low reliability.

Capitalization of income is a process that determines the relationship between future income and the present value of the assessed object.

The capitalization ratio is the rate of return that reflects the relationship between income and the value of the property being valued. There are two main areas of capitalization:

direct capitalization;

capitalization of income at the rate of return on capital.

For rate full rights of ownership and tenant rights, net operating income (NOR) is calculated as an income stream.

The real estate appraiser works with the following income levels:

Potential Gross Income (Gross Income)

Actual Gross Income (DVD)

Net operating income (NPR)

Capitalization of income is a process that determines the relationship between future income and the present value of an object.

Basic formula of the income approach

С (V) - the cost of real estate;

ЧД (I) - the expected income from the appraised property. Income usually refers to the net operating income that the property is able to generate over the period;

K (R) - the rate of return or profit is the ratio or capitalization rate.

The capitalization ratio is the rate of return that reflects the relationship between income and the value of the appraised object.

Potential Gross Income (Gross Income)

Income that can be obtained from real estate at 100% use, excluding all losses and expenses. LDPE depends on the area of ​​the assessed object and the established rental rate and is calculated using the formula:

PVD = S * CM, where (3.2)

Leased area, m2;

See - rental rate for 1 m2.

Actual Gross Income (DVD)

This is the potential gross income after deducting losses from underutilization of space and from collection of rent, plus other income from the normal market use of the property:

DWD = LDPE - Losses + Other income (3.3)

Net operating income (NPR)

Actual gross income minus operating expenses (OP) for the year (excluding depreciation):

CHOD = DVD - OR. (3.4)

Operating expenses are expenses necessary to ensure the normal functioning of the property and the reproduction of the actual gross income.

Table 8 - Calculation of the capitalization rate for improvement

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Determination of Potential Gross Income (GTP)

To assess the market rent, data on the lease of objects comparable to the one being evaluated were used. Comparison objects were selected based on the following criteria: location, reach ...

Cash flow forecasting

There are two sources of income from property ownership:

• - rent received from renting out the property;
• - part of the income from the exploitation of property in production or other commercial activities enterprises.

Rent is the generally accepted and most widely used basis for determining gross proceeds from property ownership. In this report, data on the lease of office premises were used to determine the value of the property being assessed.

In accordance with the assumptions made in this report, the yield based on the weighted average market data on rental rates for similar properties is used as the cash flow for the first and subsequent forecast years.

For the purpose of assessing the market value of real estate using the discounted cash flow method, the calculation of income indicators has its own characteristics and is performed in a certain sequence. As a rule, the sequence for calculating net operating income has the following classic sequence based on the reflection real movement Money:

Determination of potential gross income (GVP) - maximum income that is capable of bringing the property. It differs from annual amount lease for the amount of value added tax, if the value of the cost of 1 sq. m lease is given with VAT.

LDPE calculation is made according to the formula (9)

(9) LDPE = A * S,

A - rental rate (annual); S - leased area.

Minus: loss of income from underutilization (underutilization of the asset); Minus: losses from non-payments;

Plus: additional income.

Determination of the actual gross (effective) income - potential gross income, taking into account losses from underutilization of the property, non-payments, as well as additional types of income.

Less operating costs:

• - current operating expenses - expenses associated with the day-to-day operation of the property;
• - fixed costs - costs, the amount of which does not depend on the level of the object's load (asset use);
• - variable costs - costs that vary depending on the load of the facility (they may include management costs, salaries of maintenance personnel, garbage collection costs, utility costs (payment for electricity, water, heat, sewage, etc.), other costs );
• - capital expenditures - funds allocated to special funds created to "stabilize" large one-time costs associated with the operation of the property (mainly with the repair or replacement of short-lived building elements).

Determination of net operating income

The methodology for determining net operating income consists in forecasting the values ​​of income and expense items of cash flows for future periods. The calculation of the projected income from the property for the purpose of assessing the market value is carried out using the statement of income and expenses.

Depending on the volume of recorded losses and expenses, the calculation net income from the lease during the period of ownership is carried out in the following sequence:

• - potential gross income;
• - actual gross income;
• - actual profit or profit before tax;
• - clean or retained earnings;
• - net income.

Actual gross income - potential gross income, taking into account losses from underutilization of the property, non-payments, as well as additional types of income.

Actual profit is actual gross income less depreciation and miscellaneous operating expenses.

Operating expenses are the running costs associated with owning and operating a property. They are classified into:

• - constants, the value of which does not depend on the degree of congestion of the building by users. Typically, this expense item includes property taxes, land taxes, and real estate insurance. It is assumed that fixed costs are borne entirely by the owner of the property;
• - Variables - depending on the degree of the building load and the level of services provided. They include management costs, staff salaries, garbage collection costs, utility costs (payment for electricity, water, heat, sewage, etc.), other costs;
• - replacement costs are the costs necessary to maintain the property in good condition for this type of real estate.

Net or retained earnings are actual earnings net of income tax.

Net income - net (retained) profit, taking into account depreciation charges.

Discount rate calculation

The discount rate reflects the prevailing rate of return on investment in the market, taking into account the investment risk.

The discount rate (rate of return), from an economic point of view, takes into account minimum rate the entrepreneur's profit at which he is ready to invest capital in this object. It is determined on the basis of three components: the risk-free rate of return, the beta coefficient, and the market risk premium.

r = Yb + c (Yp - Yb) + Ynl,

Yb - "risk-free" rate.

As a risk-free rate of return in world practice, the rate of return on long-term government debt obligations (bonds or bills) is usually used, the rate of return for which is characterized by the absence of risk and high degree liquidity. It is believed that the state is the most reliable guarantor for its obligations (the probability of its bankruptcy is practically excluded). Determination of the average yield on the GKO-OFZ market and the risk-free rate.

Source: "Bulletin stock market Central Bank of the Russian Federation "http://www.cbr.ru/GCurve/Curve.asp

Thus, taking into account the length of the forecast period, the appraiser determined the risk-free rate at the level of profitability, which as of the date of the assessment was 11.92%;

b - the measure of systematic risk, characterizing the amplitude of the deviation total income from the object in comparison with changes in the market as a whole, the coefficient is determined according to the table of weighted risks.

Table 2.8

Yр - the average market rate of return - a figure set by the market that reflects the amount that an entrepreneur expects to receive in the form of a premium for the use of his capital invested in real estate (construction project).

In this case, the minimum average market rate of return can be considered as the sum minimum rate income received from the management of borrowed funds in cash(the refinancing rate of the Central Bank of the Russian Federation is 8.25% source http://www.cbr.ru/statistics/credit_statistics/print.asp?file=refinancing_rates.htm) Accordingly, Yр = 8.25%;

(Yр - Yb) is the market risk premium (excess over the risk-free rate of return) that the investor receives as compensation for the additional risk associated with investments in this object.

Yнl - the premium for the degree of liquidity of the object calculated by the formula (10):

(10) Ynl = Yb * Texp / 12

Texp - the period of the market exposure of the appraised object in months

12 - the number of months in a year.

Based on the analysis of current market information and the definition of the above components, the entrepreneur's profit rate as of the valuation date is

Table 2.10

Calculation of the total capitalization ratio adjusted for changes in the value of the object (asset)

The discount rate reflects the rate of return for an investor from owning a property. However, over time, the object loses its value (physically destroyed). At possible sale the investor must return the amount of the investment in full, therefore, it is necessary to create a fund to cover the loss of the value of the property. This is taken into account by the capitalization rate, which is the accumulation fund factor for a given interest rate and a period of time.

The forecast period is accepted by the appraiser for 3 years. Term economic life of the property being evaluated is 83 years old. Thus, over 3 years, the value of the object will decrease by 3.0% (-0.030 is a negative value, since this indicator reflects not long-term growth rates, but long-term rates of decline in the value of the appraised object). The long-term growth rate of real estate value, taking into account the inflationary component in the post-forecast period, can be taken on average at the level of 12%.

The calculation of the capitalization rate is carried out according to the formula (11):

(11) Ro = r - D * SFF (n; r),

Ro - general rate capitalization;

D - change in the value of the object; n is the period of ownership of the object;

r is the discount rate;

SFF is the factor of the compensation fund for a given period and interest rate.

SFF = i / ((1 + i) t-1)

Thus, the compensating correction is

D * SFF (n; r)

A term in the equation that adjusts or compensates for a change in value, or a rate of return (for a loss in value).

The calculation of the capitalization rate is shown in the following table.

Table 2.12

The calculation of the value of the object using the discounted cash flow method, taking into account the current lease agreement, in the first forecast period and the operation of the object of appraisal by the owner, for its intended purpose, in the second and third forecast periods, is presented in the table below.

Table 2.13

The calculation of the value of the object of appraisal is shown in the following table 7.1.

Table 2.14

Calculation of the value of the object of appraisal

Generalization of the results of determining the market value of the subject of appraisal

The purpose of bringing the results of all the approaches used is to determine the advantages and disadvantages of each of them and to develop a single cost estimate. The advantage of each approach in assessing the object under consideration is determined by the following criteria:

• ? the ability to reflect the actual intentions of a potential buyer or seller;
• ? the type, quality and breadth of information on the basis of which the analysis is carried out;
• ? the ability of the parameters of the approaches used to take into account market fluctuations;
• ? the ability to take into account the specific features of an object that affect its value, such as location, size, potential profitability.

Since several valuation approaches can be used to determine the market value of the appraisal object, the appraiser applied the most suitable for this particular case, taking into account the maximum approximation to real conditions.

The market value of the subject of assessment assumes sufficient availability of the product to meet supply and demand. Under these conditions, it is possible to derive the average price or any mathematical expectations in relation to the most probable price of the object of appraisal.

After conducting a causal analysis of the results of calculations of the market value, the following conclusions were made.

Income approach - the method of discounting cash flows, in this case, does not sufficiently reflect the market situation. Therefore, in this Report income approach we assign a weight of 0.2

The comparative approach most reflects the price situation and market conditions - weight 0.8.

In this case, the cost-based approach does not seem to be reliable enough; the appraiser decided to abandon the use of the cost-based approach.

The generalization (agreement) of the results of the market value of the subject of appraisal is given in the following table 7.2.

Table 2.15

The results of the market value of the object of appraisal

Thus, the market value of the appraisal object is inclusive of VAT.