Stabilised NOI
Stabilised revenue net of operating expense and vacancy, computed off the operating assumptions.
Use case · investment
Yield on cost, against the market cap.
For income-producing development, yield on cost is the anchor. Popurise compares stabilised NOI to total development cost across asset classes and pulls out the spread to market cap, value uplift and the build versus buy view.
The job
Yield on cost, in plain numbers.
For income-producing real estate, yield on cost is the cleanest read of whether a development creates value. Popurise will build it off the same project the feasibility lives in, with the operating assumptions and the development cost in one place.
Total development cost
Land, build, statutory, finance and selling, the same TDC the feasibility produces.
Yield on cost
Stabilised NOI divided by TDC, the single anchor for the development-as-investment call.
Spread to market cap
Compare YoC to current market cap rates by asset class and submarket.
Value on cost
Stabilised value over TDC, the second read on whether the project creates value.
Build versus buy
Compare the development yield to acquiring a comparable stabilised asset.
When it matters
The four investment decisions that hinge on yield on cost.
Build to hold decision
Operator deciding whether to develop or to buy in the same submarket.
Capital partner pitch
LP wants to see the yield delivered on capital deployed, not just IRR.
Cap rate move
Market cap rates compress or widen. The YoC spread tells you whether the deal still works.
Mid-build review
Build cost increases. The new YoC tells you whether the development thesis still holds.
Inputs and outputs
From stabilisation to yield on cost.
Inputs that drive it
- Stabilised revenue assumptions (rent, occupancy, escalations)
- Operating expense by line (opex, taxes, insurance, management)
- Vacancy and credit loss assumption
- Total development cost (from the feasibility)
- Market capitalisation rate by asset class and submarket
- Stabilisation timing and ramp
Outputs that matter
- Stabilised NOI
- Yield on cost
- Spread to market cap rate
- Stabilised value at exit cap
- Value on cost ratio
- Build versus buy delta
How it will work
From feasibility to YoC, in four steps.
- 01
Carry the feasibility forward
The TDC the development model produces flows directly into the YoC calculation.
- 02
Layer in operating assumptions
Stabilised rent, occupancy, escalations, opex by line, vacancy and credit loss.
- 03
Anchor against the market cap
Set the market cap rate for the asset class and submarket. Popurise reports the spread.
- 04
Read the development thesis
Yield on cost, value on cost and the build-versus-buy view in one place, ready for IC.
Versus the alternative
YoC that lives in the project, not in a separate workbook.
Workbook YoC
A separate model nobody reconciles
- TDC re-typed from the development model
- Operating assumptions sit in a parallel file
- Spread to market cap calculated by hand
- No structured way to refresh as costs move
Popurise
YoC in Popurise
- TDC carried directly from the feasibility
- Operating model and feasibility in one project
- Spread to market cap computed by the engine
- Refreshes the moment a development input changes
Be first when yield on cost goes live.
No spreadsheets. No setup. Fourteen-day free trial, no credit card.