Total Return on Equity (including refinance or sale proceeds) measures the overall financial gain from equity invested in a property development project in the UK. It includes both earnings from day-to-day operations and capital events such as refinancing or the eventual sale of the property. This metric reflects the total cash returns realised by equity investors throughout the project’s duration, capturing profits and any capital released prior to exit. It is a crucial indicator for UK property developers and investors to evaluate the efficiency and profitability of their investment compared to other opportunities.
This sits beneath Equity-Based Returns, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Return on Investment (ROI), as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Total Return on Equity (including refinance or sale proceeds) is most commonly encountered in connection with Waterfall Structure with Catch-Up Provision within the property development capital stack.
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