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

Also called functional depreciation. Loss of value that results from improvements that are inadequate, outdated, overly adequate, or improperly designed for today's needs. May be curable or ...

Established federal, state or local structural building requirements that have to be adhered to so as to receive certification by the government authority. Housing code enforcement is ...

A wall or roof which extends beyond a lower wall. ...

What remains after something is removed, such as substances left after a pollution treatment facility is removed. ...

Document submitted to a governmental agency to extend the time period for a previously approved document. ...

Clause in a mortgage that allows the borrower to pay more than the monthly amount and to retire the loan early without a penalty. ...

Insurance coverage to pay the balance of the mortgage if the wage earner dies. ...

Air penetrating crevices in a structure. Penetration of water into the earth or through a structure. For example, water infiltrates the basement of a house causing it to be damp. ...

Individual: Adjusted gross income less itemized deductions and personal exemptions. After taxable income is computed, the tax to be paid can be determined by looking at the tax rate ...

Popular Real Estate Questions