In UK property development finance, Rolling IRR is a dynamic measure of investment performance calculated over a moving time window—either monthly or quarterly. It updates the internal rate of return (IRR) continuously, reflecting the latest cash flows and project changes throughout the development process. This ongoing assessment allows property developers and investors to track real-time returns, identify emerging trends, and spot deviations from forecasts early. Using Rolling IRR helps optimise financial decisions, improving the management of equity and debt during the lifecycle of a development project.
This sits beneath Equity-Based Returns, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Stress-Tested IRR (under downside scenario), as both are closely related measures used to assess similar aspects of performance or risk.
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