Payout calculations
Inputs
- Cashflow to Equity
- Debt Service Coverage Ratio (DSCR)
- DSCR Look Back Period
- Payout Restrictions in Redemption Free Periods
Difference between Cashflow to Equity and Payout
Payout corresponds to Cashflow to Equity after applying all Payout Restrictions. Therefore the Cashflow to Equity corresponds to the Payout potential and the Payout corresponds to the actual Payout. Payout Restrictions include violations of Debt Service Coverage Ratios, Payout Restrictions in Redemption Free Periods and the restriction that payouts are only possible at the end of every year.