What does the equity yield rate (Ye) indicate?

The equity yield rate (Ye) is a vital financial metric that indicates the total rate of return on equity capital invested in a real estate property. It represents the income generated by the property relative to the equity invested, often expressed as a percentage. This rate provides insights into the profitability and performance of real estate investments from the perspective of equity investors, allowing them to assess the effectiveness of their capital allocation.

In the context of real estate, Ye helps investors understand how well their equity is working for them in generating returns. It can also be used to compare different investment opportunities, allowing investors to make informed decisions based on expected performance.

The other options pertain to different aspects of real estate finance. The annual payment amount on a mortgage relates specifically to loan terms and does not reflect the equity yield. The market value of the land refers to its worth in the market, which does not directly equate to returns on equity. The ratio of debt to property value serves to assess leverage rather than return, focusing on the financing structure rather than the yield on the equity invested.