How are dividends calculated?

lend

How are dividends calculated?

Understanding Lend Dividends

At Landa, we have a straightforward formula to determine dividends for Lend:

Dividend = Operating Income - Expenses

For Lend, 'Operating Income' refers to the property loan payments made to Lend. On the other hand, 'Expenses' cover costs Lend incurs, such as technology or legal fees related to property financing and filings.

While Lend continues to grow and finance more properties, expenses come from the raised funds rather than affecting the dividend calculation.

For instance, if Lend collected $10,000 from loan payments, the dividend would be $10,000. Any necessary expenses would be paid directly by the funds Lend has raised.

How Loan Payments are Calculated

Properties under Lend are financed through interest-only mortgages. An interest-only mortgage means that payments are made only on the interest of the loan, not the original amount borrowed (commonly called the principal) plus the interest.

Here's how loan payments are calculated for properties financed by Lend:

Interest Amount = P × (T/360) × D

Breaking it down:

P: The principal balance or the amount of debt on the property.
T: The total interest rate. This rate includes the rate set when the mortgage began (currently 3.5%, but historically 2%) and a commonly used rate called the 30-day average SOFR.
D: This counts the days in a month the property accrues interest on its loan. If a loan starts mid-month, interest is charged only from that start date. In following months, interest is charged for the entire month.

The number 360 stands for the days in a "financial" year, a standard way of calculating interest in the finance world.

For example, if a property has a debt of $100,000 (P) with an 8% interest rate (T) and is making a payment in a month with 30 days (D), the interest payment for that month would be about $416.67.

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You should speak with your financial advisor, accountant, and/or attorney when evaluating any Shares. None of Landa Holdings or its affiliates, Dalmore makes any recommendations or provides advice about Shares, and no communication, through this website or in any other medium, should be construed as a recommendation or investment advice. Nothing on the Platform should be construed as investment or tax advice, or a solicitation or offer, or a recommendation to buy or sell any securities.The Platform may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration. We urge you to review the applicable offering circular, available here.

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All images and figures shown are for illustrative purposes only and are not actual customer or model returns. Landa is not a cryptocurrency app, all monetary values are in U.S dollars and available only to U.S. investors.

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