Holding Period Return (HPR)

Definition of "Holding period return (HPR)"

  1. The total return from holding a real estate investment for the holding period of time. The computation follows:
  2. For a mutual fund investing in a real estate, the return is in the form of: dividends, capital gains distribution, and price appreciation. The annual rate of return or the holding period return (HPR) in a mutual fund is computed as follows: HPR = (Dividends+capital gain distributions + (ending NAV - beginning NAV))/Beginning NAV, where NAV= net asset value and (ending NAV- beginning NAV) reflecting price appreciation. For example, assume that a mutual fund paid dividends 0f $1.00 and capital gain distributions of $.70 per share over the year, and had a price (NAV) at the beginning of the year of $12 that rose to $14 per share by the end of the year. The holding period return (HPR) is:

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Beam, girder, or truss with the top portion being in the shape of a bow and the bottom portion being straight across and connecting both ends of the top portion. ...

A measure of actual starts of houses, condominiums, and apartment construction. When an economy is going to take a downturn, the housing sector is the first to decline. The strength in ...

You’ll find the most common definition and use of the term ‘perimeter’ in mathematics, more precisely geometry, to determine an item’s or land’s surface area. ...

Any walls constructed without using concrete or mortar. Drywall materials include sheetrock, gypsum, plywood, Styrofoam, and pressed fiver. See also drywall construction. ...

Another residence in addition to the main residence where a person or family resides. An example is a second home out of the city used on weekends and during vacations. Interest and real ...

Early American architectural housing style stressing a gambrel roof and overhanging eaves. ...

Adobe construction is one of the oldest types of construction that has been used in the Americas, ancient Egypt, and the Middle East to build long-lasting structures that can be seen even ...

An deir to an individual who died intestate and is entitled, under the distribution statute, to a portion of its proceeds. After all claims against the estate are satisfied, the ...

Homes with division of ownership or use of a resort unit on the basis of time periods. For example, a resort home may be divided into 25 time shares of two weeks each, with two weeks left ...

Popular Real Estate Questions