Debt Yield (Stabilised) is a vital metric in UK property development finance that lenders use to assess the sustainability of a loan once a property is fully complete and generating stable rental income. It is calculated by dividing the stabilised Net Operating Income (NOI) by the total loan amount, expressed as a percentage. This measure offers a clear, income-based view of repayment capacity, independent of fluctuating market valuations. A higher stabilised debt yield indicates stronger lender security and reduced financing risk, making it essential for SME developers and financiers assessing project viability.
This sits beneath Debt Cost Metrics, introducing a more specific variant of the measure without changing its core interpretation.
View glossary entry