What Is It?
A ratio that compares a property's yearly net operating income (NOI) to the total loan amount.
The debt yield is often used by lenders to determine loan eligibility, as an indicator of leverage and loan risk.
A lower debt yield indicates higher leverage and therefore higher risk, while a higher debt yield indicates lower leverage and therefore lower risk.
How Is It Calculated?
You can learn more about the Debt Yield on our blog.