Holding Period Return (HPR)
- The total return from holding a real estate investment for the holding period of time. The computation follows:
- 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:
Popular Real Estate Terms
Typically, the legal term attachment refers to seizing a person’s property, being charged with debt, and giving it to the wronged creditor until the process is in motion. Attachment ...
Low level of land positioned between mountains or hills. ...
Business entity providing water services in a particular locality. ...
Contract to act on the behalf of a principal in selling real estate. The principal agrees to pay a commission to the broker when a buyer is produced who is ready, willing, and able to meet ...
The right to possess, exclusively occupy, enjoy, control, and dispose of real estate. Ownership rights to realty are granted by the ownership of a title to real property. ...
The logical definition of both words is almost enough to understand what is earnest money. Money is a form of exchange between people to assert value to something and Earnest equals ...
part of the Department of Housing and Urban Development (HUD), which sees that complete disclosures are made for land sales. ...
A group of investment bankers underwriting and distributing a new or outstanding issue of securities of a real estate business. a professionally managed limited partnership investing in ...
People often need help understanding the difference between offeror vs offeree in real estate. A rhythm sets the stage from the first step in real estate transactions. It's the interaction ...
Have a question or comment?
We're here to help.