What factors does the Multiple on Invested Capital (MOIC) depend on?

The Multiple on Invested Capital (MOIC) is fundamentally influenced by demand sustainability and operator expertise. Demand sustainability refers to the ongoing need for a property type within its market, which can significantly impact the revenue or cash flow that the property generates over time. A stable or growing demand can lead to higher MOIC as it ensures that the investment retains value.

Operator expertise is crucial as well; a knowledgeable and experienced operator can effectively manage a property, optimize its performance, and increase its profitability. Such expertise can lead to better decision-making related to leasing, property management, and exit strategies, which directly affect the MOIC.

The other factors mentioned in the choices, while potentially influential in various contexts, do not directly impact the calculation or the assessment of MOIC as closely as demand sustainability and operator expertise do. Market trends and inflation rates can affect general investment landscapes but are not specific determinants of MOIC. Property location and age can influence price and desirability but are secondary considerations rather than core components of the MOIC calculation. Similarly, investment duration and liquidity requirements are important factors in overall investment strategy, but they do not directly correlate with the MOIC itself.