Stabilised value
The value of an income-producing asset once occupancy and rents have reached steady-state. Calculated by capitalising stabilised NOI at the market cap rate.
Formula
Stabilised value = Stabilised NOI / Cap rate
WhereStabilised NOI is the income the asset produces once it is fully let at market rents.
Why it matters
Stabilised value is the GRV equivalent for hold projects. It drives loan-to-value, exit price, and the test of whether the project's yield on cost beats market.
Worked example
NOI $1,600,000 at a 4.5% cap rate gives a stabilised value of:
$1,600,000 / 0.045 = $35,555,556.
Related terms
Connected ideas in the glossary.
See these numbers in your own feasibility.
No spreadsheets. No setup. Fourteen-day free trial, no credit card.