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Real Estate Glossary

Implied cap rate

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Written by Luis Escobar

The implied cap rate is calculated by dividing the (NOI) net operating income by the quantity of a REIT’s equity market capitalization and the full amount of outstanding debt. It can be used as a benchmark for an investment decision.

The implied cap rate is calculated by dividing the (NOI) net operating income by the quantity of a REIT’s equity market capitalization and the full amount of outstanding debt. It can be used as a benchmark for an investment decision.

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Luis Escobar

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