Written by Sarah Johnson
The projected growth in the market value of an asset over one year.
Example
A property is acquired for CAD 1,000,000, with purchase costs of CAD 100,000, making the total investment CAD 1,100,000. If the property is sold several years later for CAD 1,500,000, net of selling costs, the capital appreciation is CAD 400,000, or 36.4%:
CAD 400,000 ÷ CAD 1,100,000 = 36.4%
The total return on investment over five years—including rental income or net yield and annual appreciation—averaged on a yearly basis.
Example
Our properties typically generate a total ROI of approximately 50% over five years, which equates to an average annual return of approximately 10%.
The payment received by an investor from an asset after deducting all applicable costs.
Example
If 10 investors co-own a property, the dividend is the amount paid to each investor. It is calculated by dividing the property’s total net rental income among the 10 investors.
The projected annual percentage return generated by an investment before deducting expenses such as management fees and maintenance costs.
Example
If a property is purchased for CAD 1,000,000 and generates annual rent of CAD 100,000, its gross yield is 10%:
CAD 100,000 ÷ CAD 1,000,000 = 10%
The total capital required to complete the purchase of a property.
Example
If a fund is purchasing a property for CAD 1,000,000 and the transaction costs are CAD 50,000, the funding target is CAD 1,050,000.
The collection of all property investments that you hold with Stake.
Example
Stake does not provide discretionary portfolio management. This means Stake will not manage your investments or make investment decisions on your behalf. You retain full control over your investment decisions.
The projected annual percentage return generated by an investment after deducting all applicable expenses.
Example
If a property is purchased for CAD 1,000,000, generates annual rent of CAD 100,000, and has annual expenses of CAD 25,000, its net income is CAD 75,000 and its net yield is 7.5%:
CAD 75,000 ÷ CAD 1,000,000 = 7.5%
The ratio of an asset’s total gain—including price appreciation and income generated—to the original amount invested.
Example
If a property is purchased for CAD A and sold after five years for CAD B, the ROI is calculated as:
[B − A + rental income received during the five-year period] ÷ A
A company created for the purpose of executing a single transaction.
Example
At Stake, each property is purchased through an individual SPV. This structure streamlines the investment process by allowing shares in the property-owning SPV to be issued to investors.
An official document registered with the relevant real estate regulator that confirms the legal ownership of a property.
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