In cashflows, projected rent data are calculated on the basis of projected index values.
The purpose of this manual is to describe the detailed calculations performed.
Each index is linked to an inflation profile (mandatory in Soneka).
For each inflation profile, an annual variation (percentage) is indicated.
Indexation projections are calculated on the basis of this percentage.
Here an example for a lease (annual rent 120K) indexed for the first time on January 1, 2025 with Q03-2023 and Q03-2024 (ILC).
The latest published index for ILC is Q02-2024.
The 1/4 power is used to relate the variation to the quarter, if the index is monthly, 1/12 is applied.
The projected indexations are then calculated using the projected index values obtained.
Attached file details the example calculations, which can be re-used for other cases.