Tool T–06 / Available
A yield is only as durable as the income beneath it.
Screen an income asset across price, occupancy, lease structure, tenant concentration, capital expenditure, and financial resilience.
Scenario tools
Share the current assumptions or print the complete result to PDF.
Assumption set
Price & income
All-in basis
KES 1.50bn
Annual NOI
KES 131.2m
Target-yield value
KES 1.54bn
Price gap
KES 143.3m
Income and debt waterfall
What reaches equity.
The screen separates contracted income, vacancy, operations, capital reserve, and financing before calculating the annual cash return.
01
Inputs to prepare
- Price, rent, occupancy, and operating cost
- WALE, expiries, and tenant concentration
- Asset condition and capital expenditure
- Debt, interest, and equity contribution
02
Outputs to interpret
- Net operating income and acquisition yield
- Lease and concentration risk indicators
- Debt-service and cash-return measures
- Weighted first-pass acquisition score
03
What this does not tell you
- Independent valuation and technical condition survey
- Tenant credit, lease clauses, and arrears
- Tax, legal, environmental, and title diligence
- Detailed cash flow, refinancing, and exit liquidity
04
Read the result
A yield premium may compensate for vacancy, concentration, capex, or weak liquidity—or merely hide them. Read the source of the yield before comparing the headline number.
Use this frameworkKenya REITs Topic GuideConnect asset cash flow, leases, governance, valuation, capital expenditure, financing, distributions, and liquidity.Read the topic guide →Method note
The weighted score combines income quality, lease durability, tenant concentration, asset condition, and financial resilience. It is intended to make screening judgements explicit rather than to produce a valuation opinion.
NOI deducts vacancy, operating costs, and a recurring capital reserve. The model excludes taxes, rent-free periods, stepped leases, break options, tenant credit ratings, disposal costs, refinancing, and detailed cash-flow timing.
Questions / Method
Screen the quality of income—not only its quantity.
What should a REIT acquisition screen assess?
A first-pass screen should connect price and yield with occupancy, lease duration, tenant concentration, near-term expiries, asset condition, capex, leverage, debt-service cover, and the strategic role of the asset.
What is WALE?
Weighted average lease expiry measures the average remaining lease term, weighted by rent or income. A longer WALE can improve income visibility, but lease quality, tenant strength, rent reviews, and break options still matter.
Does a high acquisition score mean the asset should be bought?
No. The score organizes assumptions and flags. Investment still requires legal, technical, tax, valuation, market, tenant-credit, environmental, and strategic due diligence.