The linking of the rent reviews to inflation will protect investors from income volatility and should have a positive effect on the growth of the overall investment as evidenced by the following example.
| Year | Net Rent |
Net Yield |
Cumul. Net Rent |
|---|---|---|---|
| 1 | €15,729 | 5.31% | €15,729 |
| 2 | €15,729 | 5.91% | €31,458 |
| 3 | €15,729 | 5.91% | €47,187 |
| 4 | €16,526 | 5.58% | €63,713 |
| 5 | €16,526 | 5.58% | €80,240 |
| 6 | €18,058 | 5.58% | €96,766 |
| 7 | €17,364 | 5.86% | €114,131 |
| 8 | €17,364 | 6.54% | €131,495 |
| 9 | €17,364 | 6.54% | €148,859 |
| 10 | €18,245 | 6.16% | €167,104 |
| 11 | €18,245 | 6.16% | €185,349 |
| 12 | €18,245 | 6.16% | €203,594 |
| 13 | €19,170 | 6.47% | €222,763 |
| 14 | €19,170 | 6.47% | €241,933 |
| 15 | €19,170 | 6.47% | €261,103 |
| 16 | €20,142 | 6.80% | €281,244 |
| 17 | €20,142 | 6.80% | €301,386 |
| Year | Net Rent |
Net Yield |
Cumul. Net Rent |
|---|---|---|---|
| 18 | €20,142 | 6.80% | €321,528 |
| 19 | €21,163 | 7.14% | €342,691 |
| 20 | €21,163 | 7.14% | €363,853 |
| 21 | €21,163 | 7.14% | €385,016 |
| 22 | €22,236 | 7.50% | €407,252 |
| 23 | €22,236 | 7.50% | €429,488 |
| 24 | €22,236 | 7.50% | €451,723 |
| 25 | €23,363 | 7.88% | €475,087 |
Rents are assumed to increase at a Rate of 1.69% per annum at each 3 year rent review
| Year | Net Rent |
Net Yield |
Cumul. Net Rent |
|---|---|---|---|
| 1 | €17,172 | 5.91% | €17,172 |
| 2 | €17,172 | 5.91% | €34,344 |
| 3 | €17,172 | 5.91% | €51,516 |
| 4 | €18,058 | 6.22% | €69,574 |
| 5 | €18,058 | 6.22% | €87,632 |
| 6 | €18,058 | 6.22% | €105,690 |
| 7 | €18,058 | 6.54% | €124,680 |
| 8 | €18,990 | 6.54% | €143,670 |
| 9 | €18,990 | 6.54% | €162,660 |
| 10 | €18,990 | 6.87% | €182,630 |
| 11 | €19,970 | 6.87% | €202,599 |
| 12 | €19,970 | 6.87% | €222,569 |
| 13 | €21,000 | 7.23% | €243,569 |
| 14 | €21,000 | 7.23% | €264,569 |
| 15 | €21,000 | 7.23% | €285,570 |
| 16 | €22,084 | 7.60% | €307,653 |
| 17 | €22,084 | 7.60% | €329,737 |
| 18 | €22,084 | 7.60% | €351,821 |
| 19 | €23,223 | 7.99% | €375,044 |
| 20 | €23,223 | 7.99% | €398,268 |
| 21 | €23,223 | 7.99% | €421,491 |
| 22 | €24,422 | 8.41% | €445,913 |
| 23 | €24,422 | 8.41% | €470,334 |
| 24 | €24,422 | 8.41% | €494,756 |
| 25 | €25,682 | 8.84% | €520,438 |
Rents are assumed to increase at a Rate of 1.69% per annum at each 3 year rent review