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

Ownership interest in property that is above the minimum needed to meet uncertainties or a downward trend in real estate market. ...

Lien on a given property, such as an person's house as a collateral for a loan. ...

Mortgage in which the interest rate charged by the lender can vary according to some reference index not controlled by the lender, such as the interest rate on 1-year U.S. T-bills or the ...

Real property that is without any obligations, liens, or anything else against it. It is free and clear such as a house without mortgage. ...

Right of a property owner located adjacent to an airfield to use the airspace above a certain distance to fly an airplane. However, the owner may not be allowed to put structures, signs or ...

Also called a will. Describes the disposition of property. ...

A type of equity participation loan where, in exchange for charging a below-market interest rate, the lender receives a predetermined percentage of a any increase in value of the property ...

Amount to be paid by a person or business for violating a statute or legal court order. It may also be assessed for violating the provisions of a contract. Examples of penalties are a ...

External front wall to a structure ...

Popular Real Estate Questions