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
Removal of land by the action of water. See also erosion. ...
Lender (such as a bank) that has the property of the borrower as collateral (security, lien). If the mortgage is not paid, the property may be sold to make payment on the outstanding ...
Wedge-shaped step found on a spiral staircase with a wider tread on its outside portion. ...
Regional area from which a particular product or service can expect its greatest demand. For example, a retail department store expects to attract shoppers from a market area having a ...
(1) An arrangement to buy real estate at a specified price and conditions. The failure to honor the commitment may result in damages. (2) Bank commitment to lend money in connection with ...
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 ...
Metropolitan locality such as a city. It is heavily populated with many residents and businesses. An example is New York City. ...
The act or process of decreasing in size. The total amount of decrease. ...
Monies set aside in the event unexpected repairs are needed to a building or apartment. It may be in the form of an escrow account in which the seller of the property puts funds away if ...
Have a question or comment?
We're here to help.