Download P: InvIT Unit Return Calculator (Excel) (.xlsx)

What it does

InvIT investor view: distribution yield vs true IRR before and after tax, capital returned through distributions, payback, and the DPU needed for a target return. For education only; it is not a recommendation on any InvIT.

Who it is for

Students and anyone learning how InvIT returns are measured.

How to use it

  1. Go to 'Inputs'. Type the price you pay per unit, the number of units and the remaining life of the InvIT's assets in years (for example the remaining concession period).
  2. Type the expected distribution per unit (DPU) for the first year and how fast you expect it to grow (it can be negative).
  3. Type how the distribution is made up: interest, dividend, repayment of capital and other income (they must add to 100%). The InvIT's distribution announcements show this split.
  4. Type your own tax rate for each component. Ask your tax adviser; the rules for each part are different and change from time to time.
  5. If you plan to sell before the end, type the exit year and the price you expect. Otherwise leave exit year blank and type the value per unit left at the end of the life (often close to zero for a road InvIT with finite concessions).
  6. Read the results: yield vs IRR, before and after tax, capital returned, payback year and the DPU needed for your target return. The 'Cash Flows' tab shows every year.

Tabs in the file

TabWhat it holds
InputsPrice, units, life, distributions, split, tax rates, exit, target and results.
Cash FlowsYear-by-year cash flows before and after tax.

For computation and reconciliation assistance only; not a substitute for formal statutory audit or legal tax advice. All sample data is illustrative and made up. Rates, limits and rules must be checked against current law and your own agreements before use. No tax saving, audit outcome or compliance result is promised.