The actual Quarterly Interest payout you receive may differ from the initial expected return due to two primary operational factors:
1. Number of Pieces Subscribed The net profit (derived from the rental income after expenses) generated by the underlying property is distributed among the current Piece token holders (Piece holders) at the end of each month.
Initial Phase: If a property is not yet fully subscribed, the fixed net profit is divided among a smaller number of Piece token holders. This can temporarily result in a higher actual return than the expected return until the property reaches full subscription capacity.
2. Property Revenue and Cost Fluctuations The rental income (revenue) and operational expenses (cost) of the property are subject to real-world variables, leading to natural monthly fluctuations:
Extraordinary Expenses: Unexpected costs, such as non-routine maintenance, repairs, or temporary higher administrative fees, will reduce the monthly net profit available for distribution.
Revenue Changes: Changes in rental rates, vacancy periods, or other operational variables can cause the monthly revenue to fluctuate.
The expected return is a projection based on stable occupancy and costs, while the actual return reflects the real-time financial performance of the asset.