styles_break_even_exit_yield: Break-even exit yield for a target leveraged equity IRR, by...

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

Break-even exit yield for a target leveraged equity IRR, by style

Description

For each style, this helper solves (via uniroot()) for the exit yield that delivers a specified target leveraged equity IRR, holding all other assumptions of the preset constant.

Usage

styles_break_even_exit_yield(
  styles,
  target_irr,
  interval = c(0.03, 0.1),
  config_dir = system.file("extdata", package = "cre.dcf")
)

Arguments

styles	Character vector of style identifiers.
target_irr	Numeric, target leveraged equity IRR to hit (in decimal).
interval	Numeric vector of length 2 giving the bracketing interval for the absolute exit yield (e.g. c(0.03, 0.10) for 3%–10%).
config_dir	Directory where preset YAML files are stored.

Details

It proceeds by:

• reading the YAML preset,

• defining a root-finding function that, for a candidate absolute exit yield, adjusts exit_yield_spread_bps accordingly,

• calling run_case() and returning the difference between the resulting equity IRR and target_irr,

• bracketing the root over a user-specified interval.

The lower the break-even exit yield, the tighter the exit pricing assumption needed to reach the hurdle, and the more the style depends on favourable market conditions at sale.

Value

A tibble with columns:

• style (character),

• target_irr (numeric),

• be_exit_yield (numeric, break-even exit yield in decimal, or NA if no root was found in interval).

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