EconPapers    
Economics at your fingertips  
 

Optimal Holding Period for a Real Estate Portfolio

Michel Baroni (), Fabrice Barthélémy () and Mahdi Mokrane ()
Additional contact information
Mahdi Mokrane: IXIS-AEW Europe, Postal: 12/20 rue Fernand Braudel, 75013 PARIS, FRANCE, http://www.ixisaew.com

No DR 07008, ESSEC Working Papers from ESSEC Research Center, ESSEC Business School

Abstract: This paper considers the use of simulated cash flows to determine the optimal holding period of a real estate portfolio to maximize its present value. The traditional DCF approach with an estimation of the resale value through a growth rate of the future cash flow does not let appear this optimum. However, if the terminal value is calculated from the trend of a diffusion process of the price, an optimum may appear under certain conditions. Finally we consider the sensitivity of the present value to the different parameters involved in the cash flow estimations.

Keywords: Cash Flows Simulations; Holding Period; Real Estate Portfolio Management (search for similar items in EconPapers)
JEL-codes: C15 G11 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2007-04
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.essec.fr/faculty/showDeclFileRes.do?declId=7000&key=__workpaper__ (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.essec.fr/faculty/showDeclFileRes.do?declId=7000&key=__workpaper__ [301 Moved Permanently]--> https://www.essec.edu/fr/faculty/showDeclFileRes.do?declId=7000&key=__workpaper__)

Related works:
Journal Article: Optimal holding period for a real estate portfolio (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:essewp:dr-07008

Access Statistics for this paper

More papers in ESSEC Working Papers from ESSEC Research Center, ESSEC Business School ESSEC Research Center, BP 105, 95021 Cergy, France. Contact information at EDIRC.
Bibliographic data for series maintained by Sophie Magnanou ().

 
Page updated 2025-03-19
Handle: RePEc:ebg:essewp:dr-07008