What is yield index in SAP RE-FX - Flexible Real Estate Management?

SAP Term: yield index

• Component: RE-FX

• Component Name: Flexible Real Estate Management

• Description: Designates a yield ratio based on land qualites in relation to ground water.

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• Key Concepts: 
  Yield index is a term used in SAP RE-FX Flexible Real Estate Management. It is a measure of the return on investment (ROI) of a real estate asset. It is calculated by dividing the net operating income (NOI) of the asset by its current market value. The yield index is expressed as a percentage and is used to compare different real estate investments. 
  
  How to use it: 
  The yield index can be used to compare different real estate investments and determine which one offers the best return on investment. It can also be used to assess the performance of an existing investment over time. The yield index can be calculated for any given period, such as monthly, quarterly, or annually. 
  
  Tips & Tricks: 
  When calculating the yield index, it is important to use accurate and up-to-date information about the asset's market value and net operating income. This will ensure that the yield index is an accurate measure of the asset's performance. 
  
  Related Information: 
  The yield index is closely related to other measures of real estate performance, such as capitalization rate and internal rate of return (IRR). These measures can be used in combination with the yield index to gain a more comprehensive understanding of an asset's performance.