Daycare Center KPIs.

Daycare / childcare centers are single-tenant net-lease specialty retail-adjacent real estate, leased to national (e.g. KinderCare, Learning Care Group) or independent childcare operators. Value is driven by tenant credit, lease term, enrollment/utilization backing the rent, and site characteristics (visibility, parking, outdoor play area, licensing). The underlying business has durable demand and high switching costs for families, supporting long net leases. Ilora.ai ingests the lease abstract, enrollment and operator financials, and rent schedule, benchmarking rent coverage and cap rate against net-lease comparables.

11 definitions · Sector: SPECIALTY · Used by Ilora.ai specialist AI agents

NOI

Net Operating Income

Total revenue minus operating expenses (excludes financing and capital costs). The primary measure of property-level profitability.

NOI = Revenue − Operating Expenses

  • profitability
  • core
Cap Rate

Capitalization Rate

Net Operating Income divided by current property value. Expresses unleveraged annual yield as a percentage.

Cap Rate = NOI ÷ Property Value

  • valuation
  • core
DSCR

Debt Service Coverage Ratio

Net Operating Income divided by total annual debt service. Lender-required cushion measure; below 1.0 means NOI cannot cover debt.

DSCR = NOI ÷ Annual Debt Service

  • lending
  • risk
LTV

Loan-to-Value

Loan amount divided by property value. Lower LTV = lower lender risk.

LTV = Loan Amount ÷ Property Value

  • lending
  • risk
OER

Operating Expense Ratio

Operating expenses divided by gross revenue. Lower is better, but varies by property type (hotels run higher than triple-net retail).

OER = Operating Expenses ÷ Gross Revenue

  • efficiency
GRM

Gross Rent Multiplier

Property value divided by gross annual rental income. Quick valuation shortcut; less precise than cap rate.

GRM = Property Value ÷ Gross Annual Rent

  • valuation
  • shortcut
IRR

Internal Rate of Return

Annualized return on investment accounting for time value of money across the full hold period.
  • return
  • underwriting
CoC

Cash-on-Cash Return

Pre-tax annual cash flow divided by total cash invested. Measures the cash yield, not total return.

CoC = Annual Cash Flow ÷ Total Cash Invested

  • return
DCF

Discounted Cash Flow

Valuation method that projects future cash flows and discounts them to present value at a chosen rate.
  • valuation
  • underwriting
TTM

Trailing Twelve Months

A rolling sum of the most recent 12 months. Smooths seasonality for KPI comparisons.
  • period
  • core
Rev PSF

Revenue Per Square Foot

Revenue per leasable square foot. Universal specialty-property comparable.
  • revenue

Industry reference

How the daycare center sector operates.

Documents Ilora.ai ingests

  • Lease abstract
  • Enrollment report
  • Operator financials / rent coverage
  • Rent + escalation schedule

Frequently asked

Common questions about daycare center.

What makes daycare centers durable net-lease assets?
Childcare has steady demand and high family switching costs, supporting long single-tenant net leases. Value keys on tenant credit, lease term, and enrollment-backed rent coverage, plus site factors (parking, outdoor play area, licensing) — a specialty net-lease profile.