Real Estate Investing
Equity Multiple
Definition
What is Equity Multiple?
Total cash distributions plus residual value divided by total equity invested.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. receives ₦30 million from a ₦15 million investmentAn asset or commitment of money made with the expectation of future income, growth, or both., a 2.0x equity multiple.
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Related Terms
Real Estate Investing
Real Estate
Land and buildings held for use, rental income, development, or appreciation.
Real Estate InvestingResidential Property
Property designed mainly for people to live in.
Real Estate InvestingCommercial Property
Property used for business purposes, such as offices, shops, or warehouses.
REIT MetricsFunds from Operations
A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.