How a payout is set, quarter by quarter

On Habi's demo project pages, a payout is the cash a property's holding company passes on to its holders for a quarter. It is not a fixed coupon. It is worked out afresh every quarter, from the same six inputs, in the same order — and once you know the order, a payout that falls stops being a mystery.

The arithmetic in one line

Rent collected, minus the quarter's costs, minus whatever is put into the reserve (or plus whatever is taken out of it), minus tax withheld, equals the payout. Every quarter on a project page is shown worked out that way, so you can check it.

1. Rental status

Which units were let, and for how much of the quarter. A flat empty for one month of three earns two-thirds of its rent. Occupancy is measured in unit-months for that reason: it shows how long the units were let, not just whether they were let at quarter end.

2. Last quarter's cash flow

What actually arrived, which is not always what was due. A late payment lowers this quarter and raises a later one when it is recovered; a month deferred by agreement with a commercial tenant does the same. Rent due and rent collected are shown separately so the difference is visible.

3. Cash reserve

Each project keeps a reserve for repairs and empty months. In a good quarter some cash is put into it; when a large repair arrives, the reserve pays for it so the payout does not collapse. A reserve being rebuilt after a draw means a smaller payout for a quarter or two — that is the reserve doing its job, not a sign of trouble on its own.

4. Expected costs

Known costs coming up — a roof inspection, conservation upkeep on a listed facade, letting fees ahead of a lease renewal — are planned for in advance, usually by putting more into the reserve beforehand rather than cutting one payout sharply.

5. Lease renewals

A renewal can raise the rent, keep it, or end with the tenant leaving and the unit empty while a new one is found. Renewals are listed on each project's timeline, so you can see when the next one is due.

6. Tax withheld

Tax may be withheld before the payout reaches anyone. On the demo pages it is shown at a single illustrative rate. The real treatment depends on the legal structure and on each holder's own circumstances and residency, and is a question for a tax adviser.

Projects still being built

A building under construction has no tenants, so it has no rent and no payout. Its running costs until handover — supervision, insurance, accounts — come out of the reserve. The first payout follows handover and the first tenants, and the project timeline shows when that is expected.

How to read a payout history

• Look at the low quarters first, and read why they were low.
• Compare rent due with rent collected: arrears show up there before anywhere else.
• Watch the reserve balance over time, not just the payout.
• Remember the figures are for the whole holding, before any fees charged at the holder level.

A past payout is a record, not a forecast. Rent can be lower, later or absent, and a payout can be reduced or stopped.