ROI means Return on Investment and indicates the profitability of a given investment. The ROI is calculated as the proportion between the net economic result and the invested net capital or, in simpler words, dividing the income generated through the real estate project by the invested shareholders' capital.
In the project tabs, the ROI shown is always pre-tax.
The overall expected ROI corresponds to the total return that is estimated to be obtained at the end of the operation.
On the other hand, the expected annualized ROI compares the overall expected return with the duration of the operation, expressing the ROI as if it were generated every year. Displaying the annualized ROI is useful for comparing the performance of different investments.
A ROI example applied to a project of Walliance
The Trento, Via Barbacovi project envisaged an overall expected ROI of 16.73%.
According to the Business Plan, in case of successful operation, a €1,000 investment should have been yielding a gross ROI of €167.30.
However, the operation generated a final overall ROI of +0.035% higher than expected. By investing €1,000 in the project, upon successful completion of the operation, the investor therefore obtained a gross final ROI of €167.65.