Weighted Average Entry Yield is a key metric used in UK property development finance to calculate the overall expected yield from a portfolio of properties or development phases. This figure is derived by weighing each property’s anticipated yield according to its cost or value, creating a blended return rate. It helps developers and lenders evaluate the combined income potential when investments or funding drawdowns occur at different times. By consolidating varying yields into one representative number, it facilitates direct comparison with financing costs such as interest rates and Loan to Value (LTV) ratios, aiding strategic decisions on project acquisition and funding.
This sits beneath Delivery/Drawdown Timing Metrics, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Weighted Average Exit Yield, as both are closely related measures used to assess similar aspects of performance or risk.
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