Funeral Home KPIs.

Funeral homes are single-tenant net-lease specialty real estate — often part of a regional or national operator's portfolio — where investment value is driven by tenant credit, lease term (WALT), rent coverage, and the operator's local market position rather than by property-level operations. The underlying business is stable and recession-resilient (deathcare is non-cyclical), which supports long, escalating net leases. Ilora.ai ingests the lease abstract, tenant financials/coverage, and rent schedule, benchmarking cap rate, WALT, and rent coverage 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 funeral home sector operates.

Documents Ilora.ai ingests

  • Lease abstract
  • Tenant financials / rent coverage
  • Rent + escalation schedule
  • Estoppel / SNDA

Frequently asked

Common questions about funeral home.

Why are funeral homes attractive net-lease assets?
The deathcare business is stable and recession-resilient, supporting long, escalating single-tenant net leases. Value keys on tenant credit, lease term (WALT), and rent coverage rather than property operations — a defensive net-lease profile similar to pharmacies or dollar stores.