KPIs for Build-to-Rent

Based on the most helpful WSO content, when analyzing a Build-to-Rent (BTR) project, there are several key performance indicators (KPIs) you might want to consider:

1. Levered and Unlevered Cash Flow Yields: You're on the right track with these. They provide a measure of the cash return you're getting on your investment.

2. Incremental Profit Margins: This can help you understand how much additional profit you can expect as you increase your revenue.

3. Return on Invested Capital (ROIC): This is a measure of how efficiently you're using your capital to generate profits.

4. Revenue Growth: This gives an indication of how much and how fast the project can grow.

5. EBITDA: This is a measure of the project's operational profitability before accounting for interest, taxes, depreciation, and amortization.

6. Debt Levels: This can give you an idea of the project's financial risk.

7. Capex: This is a measure of the investment required to maintain or grow the project.

Remember, the goal is to get an idea of what the cash flow would be like. All these financial metrics are driven towards that end. And as you suggested, you might want to consider a recap after 10 years for illustrative IRR. That could provide a long-term view of the project's potential returns.

Sources: https://www.wallstreetoasis.com/forum/private-equity/thinking-like-an-investor-the-key-financial-metrics?customgpt=1, How to break into Real Estate Private Equity (w/ 0 RE Knowledge), Best way to read a CIM?