Global Definitions Database
Access, learn and discover all terms related to the non-listed real estate sector.
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Debt Service Coverage Ratio - DSCR (INREV)
Projected NOI over the following four quarters as a ratio of projected interest and scheduled amortization payments on bank (not shareholder) loans over the same period. This is a portfolio metric which may not reflect precisely the varying stipulations of each loan facility of the vehicle but which aims to give an indication of the vehicle’s general ability to service its debt; for the avoidance of doubt, the DSCR calculation does not take into account cash in bank. Calculation: DSCR = projected annual NOI for next four quarters / projected annual interest expense and amortization payments over next four quarters.
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Debt Service Coverage Ratio - DSCR (RS)
Used to measure the amount of cash flow from the property/ investment's operations that is available to meet annual interest and principal payments on debt. A DSCR of greater than 1 would mean there is a positive cash flow and conversely less than 1 would imply a negative cash flow.
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