All-Risks Yield
The All-Risks Yield (ARY) is one used in Anglo-Saxon valuation practice such as As the discounted cash flow method used discount rate , which the interest in future cash flows of a property, taking into account all possible risks (in the market environment Mietausfall, Change) reproduces.
In contrast to the property interest rate in the standardized German valuation method according to the Real Estate Valuation Ordinance , which is empirically determined by the expert committees, the ARY is derived from an (assumed) risk-free base rate such as B. a short-term US government bond, which is supplemented by factors for mapping inflation as well as market and property-specific risks. Another important difference is that the ARY maps the risk of rent loss (the risk that contractually owed rents are not paid or otherwise obtained), while this is taken into account separately in the German income approach.