irr_partition: IRR decomposition between operations and resale

In cre.dcf: Discounted Cash Flow Tools for Commercial Real Estate

IRR decomposition between operations and resale

Description

Approximates the relative contribution of:

• operational cash flows (acquisition + NOI - capex - opex),

• resale (net sale in year N), to the total IRR, using NPV shares (share) and mapping them to irr_total (irr_contrib = irr_total * share).

Usage

irr_partition(cashflows, tv_disc = NULL, irr_total, initial_investment = NULL)

Arguments

cashflows	data.frame. Must contain at least year, free_cash_flow, discount_factor. If sale_proceeds is missing, it is assumed to be zero.
tv_disc	numeric(1). Terminal value already discounted (net sale), if available. If NULL, it is derived from sale_proceeds and discount_factor.
irr_total	numeric(1). Total IRR (project or equity) for which the decomposition is sought (e.g. dcf_res$irr_project or an equity IRR).
initial_investment	numeric(1). Not used here (kept for API compatibility).

Value

tibble(component, share, irr_contrib) with two rows: "Operations" and "Resale".

cre.dcf documentation built on April 10, 2026, 5:08 p.m.