- Net operating income (NOI)
- Net rent × 12 minus non-recoverable costs.
- Interest
- Balance × rate, per loan.
- Repayment
- Instalment × 12 minus interest, per loan. With a known loan amount: loan amount × (rate + initial repayment) minus interest.
- Debt service
- Interest plus repayment.
- Cash flow after debt service (pre-tax)
- Net operating income minus debt service. Monthly figures are yearly figures divided by twelve.
- DSCR
- Debt service coverage ratio: net operating income ÷ debt service. At 1.00 the whole net operating income goes to the bank.
- Weighted rate
- Interest p.a. ÷ balance across all loans, weighted by balance.
- Balance at the reference date
- Today’s balance rolled forward with the current instalment to the reference date, monthly compounding.
- Repayment rate
- Repayment p.a. ÷ balance today. In the scenario applied to the balance at the reference date.
- Break-even follow-on rate
- The follow-on rate at which cash flow after debt service in the scenario is zero. Loans that are not refinanced enter with today’s debt service.
- Lump-sum repayment required
- The amount by which the refinanced loans’ balance at the reference date would have to fall so that cash flow at the chosen rate stays at or above zero.
- Differences in brackets
- Change against today, rounded: k = thousand, M = million.
