DCF Valuations (business-driven assets)

Providing market values assessments across business-driven assets

Specialized Expertise Beyond Real Estate

Alongside hotel assets, there are many properties whose value is intrinsic to the business carried out therein and vice versa. These are valuations whose market value results from a periodic analysis of all associated costs and revenues, whether perpetual, temporary, or variable. The net present value is driven from discounted cash flows approaches tailored to each type of business. Examples include Shopping Centers/Retail Parks, Office/Co-working Buildings, Parking Lots, Student Residences, Senior Residences/Nursing Homes, Build-to-rent/Co-Living, Serviced Apartments, Concessions, Extractive Industries, Agricultural or Forestry Biological Assets.

Our DCF Valuations process

Scope Definition

Identifying the type of business being operated in the asset and the present economic performance assessing needs of capex and/or opex investment

Asset Inspection and business analysis

Collecting data on the profits and loans, past and present and/or rent-rolls and leasing agreements. Critical technical details associated to the business are also considered to assure its continuity that will affect the property value.

Market Benchmarking

Comparing with market values and industry standards both on revenues and costs. The data is confronted with present economical values and set for a reasonable efficient operation

Final Report

Delivering a transparent and comprehensive valuation report with detailed cash flows.

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Frequently Asked Questions

Here are some of the most common questions about our DCF valuation services.

What types of assets can you value?

Some of the most common examples include Shopping Centers/Retail Parks, Office/Co-working Buildings, Parking Lots, Student Residences, Senior Residences/Nursing Homes, Build-to-rent/Co-Living, Serviced Apartments, Concessions, Extractive Industries, Agricultural or Forestry Biological Assets.

What information is required to perform a valuation of business-driven real estate assets?

On business-driven assets, along with the property documentation, it is very important to access past and present revenues (and forecasts if available) as well as the operational costs breakdown. The data will be very important to assess present and potential market values and to frame the results with efficient operations.

What type of work is conducted for these valuations?

Along with the site inspection, property and specific amenities and technical installations, we analyze the present P&L and/or rent-rolls, management/leasing agreements and we perform market research on the specific business. With all data collected we prepare proprietary cash flows within any specific timing (5-10 years) that is discounted back to present time at market returns for a market value or at specific returns form investment value (pricing models)

Can valuations support transactions?

Absolutely. Our reports provide a reliable basis for acquisitions since they are based on similar business-driven assets conciliated with the current operation economical figures.

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Hemisphere’s Services

We provide a comprehensive range of independent valuation and advisory services, including:

Market valuation for all types of asset classes in any geographies, providing transparent, regulated and internationally benchmarked valuations across all property types.

Property Valuation

Market or investment value and advisory of a given asset according to its urbanistic classification and/or investment KPI’s, assessing the economic and financial feasibility of any real estate project.

Development Appraisals and Advisory

Valuation and/or advisory of all types of hotel/leisure assets nationwide assessing actual operating figures and/or estimates for a Reasonable Efficient Operator (REO) supported by hospitality partners.

Hotel Valuation & Advisory

We can provide AVM values for residential units using technology that includes our own algorithm based on market comparable and a unique database.

Automated Valuation Model (AVM)

Technical inspection and advisory service assessing property condition prior to acquisition or sale, including project monitoring combining pre-investment assessment and ongoing development oversight.