Yield

Yield is the annual return on investment expressed as a percentage of property value or invested capital, the universal metric for comparing income-producing assets.


Yield TypeCalculation
Gross yield(Annual rent / Property value) times 100
Net yield (Cap rate)(NOI / Property value) times 100
Cash-on-cash yield(Net cash flow / Cash invested) times 100
Dividend yield (REITs)(Annual dividend / Share price) times 100
Yield to maturity (bonds)IRR of bond cash flows
Yield Comparison Across AssetsTypical Range
Dubai real estate (net)4% to 6%
US Treasury 10-year3.5% to 5%
Investment-grade corporate bonds4% to 6%
REITs (dividend yield)3% to 5%
Stocks (dividend yield)1.5% to 3%

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