test_refi: Test the feasibility of a refinancing at year T

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

Test the feasibility of a refinancing at year T

Description

Assesses at \(T\) the simultaneous feasibility of DSCR and forward LTV covenants assuming an interest-only payment at \(T+1\). This check isolates covenant feasibility from the precise structure of the new loan.

Usage

test_refi(full, year_T, covenants, new_rate, new_exit_yield)

Arguments

full	data.frame. Merged table (0..N) from cf_make_full_table(), containing at least: year, net_operating_income, outstanding_debt.
year_T	integer(1). Evaluation year \(T\) (0..N).
covenants	list. Thresholds: dscr_min (default 1.25), ltv_max (default 0.65).
new_rate	numeric(1). New annual nominal rate (decimal).
new_exit_yield	numeric(1). New exit yield (decimal) for forward value. ⁠NOI_{T+1}⁠ is missing (default 0 if not provided as an attribute of full or in the DCF inputs).

Value

list with status ("ok"/"fail"), reasons (character) and snapshot (tibble).

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