Can you tell me more about the ‘Internal Rate of Return’?
Actually it means a calculation, calculated back in the time over a period of 22 years. All on the basis of a tight mathematical formula called: Internal Rate or Returns (IRR) . This was also in our case: we have calculated per year turnovers and costs and projected into the future. On the advice of people of our thinktank we also considered the value increase of the underlying assets (especially the value of our own 1.000 acres of land). At a certain moment we have implicated the liquidation value of the land in the table, for example in 2026. As a result an output arises on paper of a calculation on an annual basis of 15.60 %.
On the other hand, this is on the one hand the amount per year (dividend output), available for disbursement, and on the other side papers output - particularly by the value increase. That dividend output originates from the effective benefits which can be done on an annual basis to the share holders. The effective cash flow is based on cash money based on cutting trees (teak & pochote), the tenant farming income, profit-sharing of the fishery (‘Pesca San Pedro’) and of sustainable hospitality (rent own lodges, use of our horses and other forms of accommodation for eco tourism) after deducting the relevant costs.