Income Forecast
Project multi-year income with rental growth, occupancy drift and cost inflation.
Introduction
Who this is for: Operators and investors modelling operational asset income over a hold period.
Why it matters: Where costs inflate faster than rents, net income falls even as revenue rises. Modelling both separately is the only way to see margin compression coming.
Typical scenario: A five-year hold on a student scheme with 3% rental growth against 4% cost inflation.
- Applying the same growth rate to income and costs, which hides margin erosion.
- Assuming occupancy stays flat across the whole hold.
- Forecasting from a peak year rather than a normalised base.
Inputs
Base Year
Assumptions
years
Analysis
Net income moves from £740,000 to £805,749 over 5 years — growth of 8.9%, with margin moving from 68.5% to 66.1%. At a 6.25% exit yield that values the asset at £12,891,991, with £3,896,574 of income collected along the way.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Live Results
Final Year Net Income
£805,749
Base Year Net Income
£740,000
Net Income Growth
8.89%
Exit Value
£12,891,991