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Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

Internal Rate of Return - IRR (INREV)

The annual rate of return based on the present value of a capital investment over a holding period expressed as a percentage of the investment.

Source: INREV | Date: 20 March 2020 | ID: D0162 | Version: 4

Related definitions

Internal Rate of Return-gross

The absolute IRR of the property portfolio before any vehicle-level fees are deducted.

Internal Rate of Return-net

The absolute leveraged IRR of the property portfolio after all vehicle-level fees are deducted. Source: www.nationalcne.org/faq/re_glossary.htm

Internal Rate of Return-realized (Gross) vehicle

IRR of portion of equity invested that has been achieved from actual divestments (regardless of whether the proceeds have been distributed or reinvested), before any vehicle-level fees, taxes and carried interest are deducted. Ignores any unrealized returns or distributions not derived from disposals and does not include NAV as an end value.

Internal Rate of Return-since inception gross of fees

The equity IRR at vehicle level before any vehicle-level fees, taxes and carried interest are deducted. This calculation is from inception through to the current quarter adopting NAV (adjusted to eliminate the effect of fees, taxes and carried interest if necessary) as the final end value

Internal Rate of Return-since inception net

The equity IRR at vehicle level after any vehicle-level fees, taxes and carried interest are deducted. This calculation is from inception through to the current quarter adopting NAV (adjusted to eliminate the effect of fees, taxes and carried interest if necessary) as the final end value

Internal Rate of Return-starting from inception to end-projected-gross

Current projected gross return performance from inception to end of vehicle term (gross of taxes, fees and carried interest) per the manager's estimate, or in the case of an open end vehicle over a period as agreed between the manager and investors.

Internal Rate of Return-starting from inception to end-projected-net

Current projected net return performance from inception to end of vehicle term (net of all taxes, fees and carried interest) per the manager's estimate, or in the case of an open end vehicle over a period as agreed between the manager and investors.