By Pablo Quezada, Managing Director at Datoz
Understanding the value of an industrial property requires assessing the cash flows it can generate and supporting the variables used in the analysis with reliable information.
DCF Value Opinion is a Datoz service that estimates the value of an industrial property or portfolio using the discounted cash flow methodology (“Discounted Cash Flow,” or DCF). The analysis includes a financial model, multiple scenarios, and the rationale behind the parameters used.
What decisions can it support?
The service is designed for financial institutions, investors, and real estate companies that require an independent value opinion to:
- Analyze a real estate asset as collateral.
- Evaluate the purchase or sale of a property.
- Estimate the value of a portfolio for a FIBRA, investment fund, or developer.
- The goal is not simply to provide a figure, but to explain how that value is derived and which variables may affect it.
The Value of Market Data Over Time
The DCF methodology projects the cash flows a property could generate and discounts them to present value. The analysis typically covers a ten-year horizon and considers variables such as:
- Current rents and their expected evolution.
- Market vacancy rate and outlook.
- Discount rate.
- Going-out cap rate.
The quality of the result depends on the information and judgment used to establish these assumptions.
Datoz has comprehensive historical data on Mexico’s industrial real estate market, enabling the analysis of rental and vacancy trends and the development of a market outlook for each market. Datoz has also developed a methodology to estimate the going-out cap rate based on FIBRAs’ property cap rates.
The analysis incorporates multiple scenarios to show how the value changes when key parameters vary. This makes it possible to identify the most sensitive variables, assess risks, and understand the range of potential outcomes before making a decision.
Would you like to learn how a well-supported value opinion is built?
Learn more about DCF Value Opinion
