Month: February 2025

What Is IRR Partitioning? IRR Partitioning is a financial analysis technique used to break down the Internal Rate of Return (IRR) into its component parts, typically operating cash flows and reversion cash flows (sale proceeds). This method provides investors with a clearer understanding of where the returns are coming from and the associated risks. Key Steps in IRR Partitioning Why Is […]

IRR Partitioning: A Calculation Guide The Internal Rate of Return (IRR) is a widely used metric in real estate and investment analysis, offering a comprehensive view of an investment’s profitability. However, understanding the sources of IRR—whether from operational cash flows or the eventual sale of an asset—can provide deeper insights into risk and return. This is where IRR […]