Net Operating Income Research Articles

President’s Column: SPE Finances

_ Editor’s Note: The November edition is a written column only, with the vodcast set to resume next month. _ SPE finances are not the most interesting or exciting topic for most members, and you will be forgiven if you pass this column. You may not be interested at all if you only want to know what SPE does. However, you may be interested in this column to understand how SPE functions financially. SPE is not a commercial business, but it has an events business that de facto finances most of its other services to members—direct membership fees are a relatively small part of SPE’s revenue. In the current model, if the events business fails, SPE collapses. Finances are always important, but they have become critical in the current context, including the 2015 downturn and the 2020 COVID-19 pandemic, especially the latter, which have brought an existential threat to our Society. As shown in Fig. 1, between 2014 and 2023, we lost 65% of our revenue, 200% of our profit (Net Operating Income), and 50% of our net assets. Even last year, 3 years after the pandemic, we still had an operational deficit of $3.6 million, and this was expected to be a “good year” with Offshore Europe and two Offshore Technology Conference events. Operationally, we are still hemorrhaging money. SPE’s finances are public, but I thought it would be good to present this information in plain English and with illustrative graphs to explain how we operate financially and how SPE can prevail while its traditional business model is being challenged. I have occasionally heard and read severe statements about SPE’s financial management, allusions to staff being oversized and overpaid, our lack of willingness to adapt, etc. So, it is also a good opportunity to clear up some of these misunderstandings. Conventions and Definitions Until 2024, SPE’s fiscal year (FY) started in April and ended in March. For example, FY24 started on 1 April 2023 and ended on 31 March 2024. This has recently changed and will be explained below. The numbers presented in this document are consolidated in USD (SPE has several offices handling different currencies) and corrected for US inflation using factors listed in Fig. 2. The reference is the USD from the middle of FY24, i.e., October 2023. One important result to gauge our operational results is our Net Operating Income (NOI), which would be equivalent to profit if SPE were a commercial venture.

Maize production scales and the impact of commercialization in the futures market on net operating income in Brazil

Maize is the second most cultivated grain in Brazil, and the crucial step for maize growers is when they have to define the right strategy to sell their maize. The challenge is finding a selling scenario that optimizes profits and reduces risks, when maize growers need to use the barter option, selling maize in exchange for agricultural inputs. Is have to find an appropriate balance between the quantities allocated to the barter, direct sales or future markets alternatives. The objective of this paper was to analyze the scale of maize production and calculate net operating revenue as a result of percentage variations in maize futures trading. Using data from maize growers in the State of São Paulo and estimates of their farms’ size, different scales and percentages of maize production sold in the futures market were used to establish the consequences on net revenues obtained from these marketing alternatives. The growth in net revenue is noticeable in all scenarios, however in those cases in which most of the production was negotiated in future markets presented an increased net operating revenue, while scenarios characterized by increased allocation of production in exchange for agricultural inputs showed a decreased net operating revenue. The growth of net revenue in all scenarios suggests that good negotiation strategies for maize sales not only prevent farmers from market fluctuations but also increase the maize grower's operating revenue.

CURRENT STATUS AND EFFICIENCY OF ABANDONED LANDS RE-DEVELOPMENT IN RIVER BASINS OF SOUTH-WESTERN TRANSBAIKALIA

Complex ecological and economic studies of post-agrarian landscapes in the middle reaches of the Selenga, Chikoy and Temnik rivers were carried out within the boundaries of the Selenga administrative region of the Republic of Buryatia (RB). A map of abandoned agricultural lands has been compiled. A brief description of agroclimatic conditions of the study area is given; the structure of agricultural land, the yield of grain and forage crops, the dynamics of livestock and the load of livestock on pastures and hayfields are analyzed. The reasons for the arable land abandonment are formulated. It was revealed that pastures and hayfields are not excluded from the agricultural use. This is due to an increase in the livestock numbers in households, which are the main agricultural producers in the RB, as well as a shortage of natural forage lands. The species composition and the state of shelterbelt forests are described as an integral part of the ecotopes of post-agrarian landscapes. The main taxonomic indicators of trees are given. The study of shelterbelt forests is topical due to the need for their inventory, lack of maintenance, and the adoption of Federal Laws on protective afforestation and land reclamation. A brief agrochemical description of the state of soils in key areas is given. To assess the effectiveness of arable land reuse, a net operating income (NOI) or rental income was calculated for each grain and grainfodder crop grown in the region under study. It was revealed that oats and spring wheat are the most profitable. Recommendations were formulated for the redevelopment of post-agricultural landscapes, optimization of protective afforestation, and reconstruction of shelterbelt forests

How Property Rents and Expenses Depreciate: A Case of Tokyo Office Properties

This is the first comprehensive study on the age profile of new rents, average rents, operating expenses, net operating income, capital expenditure, and net cash flow for office properties in Tokyo. There are four main findings. First, the rate of rental depreciation in Japan is low and explains less than half of the rate of depreciation of property prices, although it is higher in earlier years. Second, average rents exhibit nominal rigidity. Third, approximately half of the observed depreciation in new rents is due to physical deterioration as opposed to functional obsolescence, which is driven by changes in tenant preferences and advances in building technology. Last, operating expenses are independent of age, whereas capital expenditure increases in the first 20 years. Our study contributes to the literature by estimating depreciation rates for commercial real estate rents, costs, and cash flows, with new insights into the detailed age profile and sources of economic depreciation.

Cage aquaculture of Indian pompano for livelihood diversification of artisanal fishers: Insights from Andhra Pradesh, India

Artisanal fishers fishing in nearshore coastal waters off Visakhapatnam using motorisedcrafts and in estuaries of Krishna using non-motorised crafts were selected for the study.Their annual net operating income varied between US$ 469.63 (₹39,040) and US$ 2698.42(₹2,24,320), respectively. Inspired by the potential of cage farming from the frontlinedemonstrations in marine and estuarine waters and after acquiring appropriate skills,15 individuals from the Traditional Fishermen’s Co-operative Society, Visakhapatnamand 76 individuals from Yanadri Girijana Matsya Sakhara Sangam, Krishna embarked oncage aquaculture of Indian pompano in 15 and 70 cages, respectively. Marine cages werecircular (6 m diameter) and estuarine cages were square (5 m X 5 m), and were stockedwith hatchery-produced Indian pompano (Trachinotus mookalee) fingerlings of 22.6 gweight @ 2500 and 1500 numbers respectively, and were fed with floating pellets at 8-3% ofbiomass. Average body weight, survival and biomass production from marine and estuarinecages after eight months of culture were 843 and 666 g, 96.28 and 91.47% and 2029.0 and913.85 kg respectively. Deducting all capital and operational expenses, annual net operatingincome per unit ranged from US$ 1247.44 (₹1,03,700) to US$ 2632.02 (₹2,18,800); whichrepresented a substantial increase from that of capture fishery. Cluster-cage farming, asadopted, did not adversely impact the water and sediment quality. The current researchoffers novel insights into the bio-growth and economic factors pertinent to commercial cagefarming of Indian pompano. Cage farming in marine and estuarine conditions holds a greatpromise as an alternative source of livelihood for artisanal fishers, thereby bolstering theireconomic sustainability. Keywords:Cage farming, Gross revenue, Indian Pompano, Netoperating income, Small scale fishers

Digital loans and buy now pay later from LendTech versus bank loans in the era of ‘black swans’: Complementarity in the area of consumer financing

Research background: People who take non-banking loans are primarily perceived as excluded from accessing bank services. The growth of e-commerce and the increasing digitalisation of customer interactions with banks was particularly accelerated by the COVID-19 pandemic (the first ‘black swan’). These processes have also influenced the rapid growth of the LendTech (LT) sector within FinTech with its digital loans and buy-now-pay-later (BNPL) services. The war in Ukraine (the second ‘black swan’) has led to an energy crisis, increased inflation, interest rates and credit costs, and reduced credit accessibility. In this context, the following research questions are addressed: Are the LT and banking sectors complementary or substitutive in the area of consumer financing? Does complementarity apply to all customer segments and loan amounts? How does the extent of complementarity or substitutability of the LT sector depend on, and to what extent do changes in the regulatory and macroeconomic environment affect, the interaction between the banking and LT sectors? Purpose of the article: The aim of the article is to identify trends in the LT sector within FinTech in the context of assessing the scale and determinants of current and future complementarity of the non-bank sector and the banking sector in the area of consumer credit in time of black swans. An additional purpose of the article is to estimate revenues from the basic operating activities of companies from the on-line channel. Methods: The research process was multi-stage and the research procedure was structured. Due to the lack of a uniform source of data on LT products and services, the study used many data sources — data from the Credit Information Bureau, a primary nationwide survey on LT users a primary survey of people representing LT's managerial staff. The selection of LTs was carried out according to the concept of the monetary sampling unit. The Horvitz-Thompson estimator with Sen‐Yates‐Grundy variance form was used to estimate net operating income for LT from the online channel in 2021. Findings & value added: The LT companies surveyed state that black swans (the COVID-19 pandemic and the war in Ukraine) and the current macroeconomic situation have not significantly affected demand for non-banking loans. The reduction in the opportunities for the LT sector as a result of anti-usury regulations will only lead to a shift in consumer demand to the pawnshop sector and the shadow economy, which will be detrimental to consumers. Complementarity between LT and the banking sector is revealed especially in crisis situations, thus limiting the effects of market shock (limited supply of loans offered by banks). In periods of stabilisation, a rather clear division of preferences is noticeable – in the case of seniors and loans for higher amounts, banks dominate, while in the case of lower amounts and in younger age groups, non-bank institutions are more popular. The mechanism by which shrinking banking services are replaced by LT in short-term crises confirms the importance of LT in balancing the Consumer Finance market in the face of unstable periods. From a medium- and long-term perspective, it should be noted that inflation and rising interest rates will increase the scale of credit exclusion in commercial banks, shifting part of the demand to the non-bank sector. These phenomena have an international dimension. Similar observations were made already in 2012 by the CFPB in the USA and the British FTA, when analysing the consumer finance market immediately after the subprime crisis, emphasising the effects of limiting access to bank consumer loans and the resulting growth of the LT market (Gębski, 2013).

Unveiling the Impact of Firm Characteristics on Integrated Reporting Practices

In recent years, there has been an increase in the number of research papers on integrated reporting. Integrated reporting improves how companies analyse, plan, and report on their financial performance and offers insights into their potential futures through a multi-capital and value-creation perspective. In this study, a variety of reputable journals were consulted for published research studies on firm characteristics and integrated reporting. This study examined the impact of firm characteristics on integrated reporting. The firm characteristics in this study include firm size, growth, profitability, and governance. Moreover, this study also examines the positive or negative relationship between firm characteristics and integrated reporting. In this study, three measures, including total asset value, net operating income, or market capitalization can be used to analyse the relationship between firm size and integrated reporting. Firm growth can be evaluated by looking at a company’s financial performance and long-term value creation. Besides that, in integrated reporting, profitability is frequently assessed about the company’s influence on numerous stakeholders and its capacity to build long-term value. Finally, corporate governance and integrated reporting share a common goal of fostering disclosure, accountability, and ethical behaviour inside organizations.

Determinants of capital adequacy ratio bank in Indonesia

Banking as a delegate establishment assumes a significant part in the economy and performs well and is sounds. The Capital Adequacy Ratio (CAR) is a measure of how important capital is to banking. OJK has set a new classification for banks based on their core capital. The objective of this research is to ascertain the factors that influence the Capital Adequacy Ratio (CAR) of Indonesian stock exchange-listed banks. The multiple linear regression approach is utilized in this study. The Capital Adequacy Ratio (CAR) is the dependent variable, and the Return on Assets, Loan-to-Deposit Ratio, Net Interest Margin, Operating Expenses, and Operating Income are the independent variables. In view of the exploration results, there is a huge impact of Return On Resources (ROA), Net Interest Edge (NIM), Working Expenses of Working Pay (BOPO), and Credit to Store Proportion (LDR) on the Capital Sufficiency Proportion.

The role of multi-family properties in hedging pension liability risk: long-run evidence

PurposeUsing data spanning 145 years for Sweden, the authors investigate the benefits of holding multi-family properties for investors who aim to hedge wage growth.Design/methodology/approachThe authors assess the risk-adjusted excess return that results from adding multi-family properties to a mixed-asset portfolio that aims to track wage growth. The authors also analyse the macroeconomic determinants of asset returns. Finally, the authors test whether a causal relationship exists between the growth rate of real wages and that of real net operating income.FindingsThe benefits from holding multi-family properties are the greatest for low-risk allocation approaches. For more risky strategies, the role of real estate is more muted, and it varies greatly over time. Holding real estate was most beneficial during the first two decades of the 21st century. Multi-family properties are found to be the only asset class to be positively related to wage growth. The authors show that the net operating income acts as the transmission channel between wages and property returns.Practical implicationsThe paper assesses whether the growing interest of pension funds for multi-family properties is warranted in the context of a portfolio that aims to track wage growth.Originality/valueUsing long term data makes it possible to use a rolling windows approach and hence to consider multiple outcomes for an allocation strategy over a typical investment horizon. This permits to assess the dispersion of performance across several periods rather than just one as is commonly done in the literature. The results show that the conclusions that would be drawn from looking at the past two or three decades of data differ substantially from those for earlier time periods.

Changes in US Hospital Financial Performance During the COVID-19 Public Health Emergency

The COVID-19 public health emergency (PHE) caused substantial changes in hospital operations. The net effect of these changes on hospital financial performance is unclear. To evaluate changes in hospital financial performance before and during the COVID-19 PHE. This longitudinal within-hospital cohort analysis from 2017 to 2021 used national RAND hospital data merged with American Community Survey data. A total of 4223 short-term acute care or critical access hospitals in the US with financial data spanning 2017 to 2021 were evaluated. Financial performance during the first 2 years of the PHE. The main outcome was PHE financial distress calculated based on net operating income (operating revenue minus operating expenses). Within-hospital changes in net operating income over time were evaluated with and without COVID-19 relief funding. From henceforth, 2020/2021 means the weighted average financial performance for both calendar year 2020 and 2021. Hospitals were characterized as having new financial distress if (1) their average 2020/2021 net operating income was negative and (2) the average 2020/2021 net operating income was less than that hospital's pre-2020 net operating income. Predictors of new financial distress were evaluated using logistic regression and predictors of COVID-19 relief using 2-part models. In this sample of 4423 hospitals, 3529 (80.0%) received PHE funds during 2020/2021. A total of 846 (19.1%) were located in a census tract with more than 20% Hispanic residents. Of the total number of hospitals, 720 (16.3%) of hospitals had PHE financial distress, whereas 2047 (46.3%) had PHE financial distress after excluding COVID-19 relief funding from net operating income. The majority of hospitals (n = 3337; 74.8%) had a positive net operating income across 2020/2021, with 785 (17.8%) hospitals moving from a negative pre-2020 to a positive 2020/2021 net operating income. In adjusted analyses, hospitals treating a higher proportion of Hispanic populations were more likely to have PHE distress (adjusted odds ratio, 1.3; 95% CI, 1.1-1.6; P = .02). Median (IQR) operating margins from 2020/2021 were at an all-time high of 6.5% (0.2%-13.3%) compared with pre-2020 operating margins of 2.8% (-2.8% to 9.3%). In this cohort study of US hospitals, the large majority had positive financial performance during 2020/2021, partly due to COVID-19 relief funds. However, hospitals serving Hispanic populations had substantially worsened financial performance during 2020/2021, even after accounting for COVID-19 relief. That COVID-19 relief funding aided in operating margins reaching all-time highs indicates funding amounts may have been larger than was necessary for many hospitals. With COVID-19 relief funding ending yet COVID-19 related continuing to affect hospital expenses, ongoing monitoring of hospital financial performance is vital to ensure patients retain access to care.

Pengaruh Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Net Interest Margin (NIM), Loan To Deposit Ratio (LDR) Dan Biaya Operasional Pendapatan Operasional (BOPO) Terhadap Return On Asset (ROA) Pada Bank Perkreditan Rakyat (BPR) di Kota Batam

This study aims to determine the effect of Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Net Interest Margin (NIM), Loan to Deposit Ratio (LDR) and Operational Costs Operating Income (BOPO) on Return on Asset (ROA) of rural banks in Batam City. Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Net Interest Margin (NIM), Loan to Deposit Ratio (LDR), Operational Costs Operating Income (BOPO) and Return on Asset (ROA) are measured from the financial statements provided on Otoritas Jasa Keuangan (OJK) website. The population used in this study was rural banks in Batam City period 2017-2021. This study used 26 companies with purposive sampling as research sample. The analysis technique used is multiple linear regression analysis. The result of this study indicate that partially Non-Performing Loans (NPL), Net Interest Margin (NIM) and Operational Costs Operating Income (BOPO) have a significant effect on Return on Assets (ROA), while the Capital Adequacy Ratio (CAR) and Loan to Deposits Ratio (LDR) have no significant effect on Return on Assets (ROA). Simultaneously, Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Net Interest Margin (NIM), Loan to Deposits Ratio (LDR), and Operational Costs Operating Income (BOPO) have a significant effect on Return on Assets (ROA).

Overcoming Obstacles with Performance Improvement for Critical Access Hospitals

Critical Access Hospitals (CAHs) are struggling, and waiting for government assistance is not the solution. To strengthen its hospitals, forward-thinking leaders must be aware of the necessity to increase their operating efficiencies. Organizations focusing on improving their net operating income will find opportunities for profitability and growth, despite significant financial headwinds. CAHs play a vital role in serving America’s rural communities; therefore, they must overcome the challenges faced through the implementation of performance improvement initiatives.

CAPITAL STRUCTURE AND ITS THEORIES

The phrase capital structure refers to the sum of all long-term funding sources. These long-term sources of funding include equity share capital, reserves and surplus, preference share capital, loans, and debentures. A corporation must decide how much of its own funds and outside funds, particularly debt financing, it should have. WACC and a firm's value are impacted by the amount of finance. There are four capital structure theories for this, including the traditional, M&M approach, net income, and net operating income.

Capitalisation rates for commercial real estate investments: evidence from Australia

PurposeThe paper is motivated by the paucity of empirical research on the determinants of capitalisation rates/yield in the commercial property market. Compared to property price determinants, the capitalisation rate has received significantly less attention. This is somewhat surprising given that the capitalisation rate is a more insightful indicator for investors on commercial property market performance than merely price changes or trends. The capitalisation rate, measured as the ratio of net operating income to the property’s capital value, captures the asset’s overall ability to generate income which is crucial for investors who typically invest in property for their income-generating capacity. The purpose of this paper is to address these issues.Design/methodology/approachTo evaluate the determinants of capitalisation rates, time series analysis was used. The data capture performance in the Australian commercial property market between 2005 and 2018. All macroeconomic and financial data are freely available from official sources such as the Australian Bureau of Statistics and the nation’s central bank. Methodology wise, given the problematic nature of the data such as a mixed order of integration and the possibility of cointegration amongst some of the I (1) variables, the autoregressive distributed lag model was selected given its flexibility and relative lack of assumptions.FindingsBond rates, market risk premiums, stock market excess returns and other macroeconomic variables were found to drive capitalisation rates of Australian commercial properties. A 1% increase in the bond rate results in approximately 0.3–2.4% increase in capitalisation rates depending on the sub-market. Further, a 1% increase in excess market returns results in a 0.01–0.02% increase in capitalisation rates. Regarding risk premiums, a 100 basis point increase in the BBB spread results in approximately 0.92–1.27% reduction in cap rates in certain markets.Practical implicationsAsset managers will find these results useful in asset allocation strategies. Commercial properties offer attractive investment qualities such as yield stability in periods of economic uncertainty while allowing for the possibility of capital growth through appreciation of the underlying asset. By understanding the factors that affect the capitalisation rate, practitioners may predict emerging trends and identify threats to portfolio return and stability. This allows better integration of commercial property in the construction of portfolios that remain robust in a variety of market conditions.Originality/valueThe contribution to literature is significant given the lack of similar studies in the Australian market. The performance of real estate assets using cap rates as a comparative measure to equities and bonds influences decisions in asset allocation strategies. It provides crucial information for investors to estimate the performance of commercial property. This research supports the notion that both space and capital market indicators jointly affect capitalisation rates. The findings expand the knowledge base relating to commercial properties and validate the assessments of investors, developers and valuers who utilise yield as a performance benchmark for asset allocation strategies.

How ‘bad’ is renter protection for institutional investment in multifamily housing?

We assess the role of state-level renter protection regulations on the pricing, performance and risk of multifamily housing. We construct a renter protection score (RPS) to measure the extent of renter protection in each state. Using a proprietary property-level dataset from loans backed by commercial mortgage backed securities (CMBS) and census tract socioeconomic variables, we study the role of RPS on initial capitalization (cap) rates, annual net operating income (NOI) and annual loan delinquency rates of multifamily housing. We find that, contrary to conventional wisdom that renter protection is ‘bad’ for investors, multifamily housing in high RPS states is associated higher annual NOI and NOI growth and lower delinquency rates. We also show that better tenant protection is associated with lower initial cap rates. The results point to investors perceiving properties in more regulated states as lower risk due to reduced income volatility. For institutional investors, higher levels of renter protection are, therefore, not ‘bad’ but are instead associated with lower cash flow volatility and better income growth prospects.

Measuring the performance of retailers during the COVID-19 pandemic: Embedding optimal control theory principles in a dynamic data envelopment analysis approach

Traditional retailers (bricks-and-mortar) have been continuously increasing online sales. However, not all retail companies were able to respond to the increasing sales with the same efficiency level as their competitors. This paper aims to propose a dynamic model – incorporating principles of Optimal Control Theory (OCT) into a Data Envelopment Analysis (DEA) model - for measuring the performance of retailing companies’ cost efficiency. It also aims to contribute through the application by investigating the impact of the pandemic on companies from the most prominent developing market in Latin America, Brazil. Twenty-one companies publicly traded in the São Paulo Stock Exchanges (B3) between the third quarter of 2018 (3Q2018) and the third quarter of 2020 (3Q2020) were investigated. Also, six measures - initial inventory cost (IIC), final inventory cost (FIC), net operating income (NOI), cost of goods sold (COGS), cost of the purchased product (CPP), and plant, property, and equipment (PPE) – were considered. In this way, the findings have implications for researchers and practitioners. Practitioners can discover which competitor(s) is (are) adopting the best practices at each operational aspect (e.g., inventory cost). Additionally, the proposed method can be replicated in other markets (developing or not) and for other categories of retailing companies (e.g., small- and middle-sized). Further research directions are presented, and their implications are discussed.

Leveridžovana beta - uticaj duga i poreza na dobit na sistematski rizik kompanije i rasprava o pravilnoj algebarskoj jednačini

The increase in the share of debt in the capital structure is accompanied by an increase in the required return on equity because companies are exposed to higher financial risk. The beta coefficient of debt-financed companies differs from the beta coefficient of companies that are financed exclusively with equity. Namely, the beta coefficient, under the influence of financial leverage, tends to increase with the growth of indebtedness, that is the systematic risk measured by the coefficient beta of debt-financed companies is higher than the systematic risk of non-leveraged companies, due to financial risk. Because interest payments on the debt of leveraged companies are excluded as an expense from the tax base, corporate income tax reduces the beta coefficient of a company with debt, compared to the beta coefficient of the same company when income tax is abstracted. The higher the corporate income tax, that will be the lower the beta coefficient of companies that have debt in the capital structure. There are several algebraic equations, by different authors, for the beta coefficient of leveraged companies. The algebraic equation for the beta coefficient of leveraged companies, which is derived in this paper, was obtained using the net operating income approach.

An Empirical Study of Quick Ratio and Profitability on Manufacturing Firms in Indonesia

This study intended to test the effect of the quick ratio on manufacturing firms’ profitability in Indonesia. To measure the profitability, three dependent variables were used: Net Profit Margin (NPM), Return On Assets (ROA) and Return On Equity (ROE). Several variable controls were used: firm size, variability in net operating income, sales growth, gross domestic product growth, and leverage. A total of 158 manufacturing firms with published financial statements from 2012 to 2016 were analyzed using a regression method. It is found that quick ratio has positive effects on manufacturing firms’ NPM and ROA. However, the same effect is not found on ROE.

Manufacturing system optimization using computer-based control kanban loops

The study assessed manufacturing system optimization using computer-based control kanban loops. The study assessed JIT's effect on average throughput-time, demand fill rate, net operating income for a certain product mix complexity and manufacturing overhead level. ARENA/SIMAN and WITNESS simulation tools were used to study implementation. The Drug Process Plant's JIT system reduced end buffer inventory, shortened customer lead time, and improved visual control. The mean response of the simulated new physical system in terms of NOI was 85.54 but gave a mean response of 85.30 when implemented on the shop floor. The mean response of the simulated new physical system in terms of cycle time was 617 but gave a mean response of 634 when implemented on the shop floor. Simulated new physical system in terms of DFR gave a mean response of 93.11 when implemented on the shop floor. Overwhelmingly, the new JIT system outperformed the old physical system. Bangladesh J. Sci. Ind. Res. 57(4), 221-228, 2022

Региональные аспекты формирования рыночной стоимости земель в зонах с особыми условиями использования территорий

The relevance of the issues of assessment activity analyzed in the article is due to the need to take into account various pricing factors in determining the cadastral value of land plots. One of them is the presence of zones with special conditions for the use of territories (protective, sanitary-protective, cultural and other conditions), which affect not only the development of the market value of land, but also the investment attractiveness of their development. In the assessment of zones with special conditions for the use of territories, various methodological approaches and the corresponding methodological tools are used. The most scientific substantiation of them was obtained by such approaches as comparison of sales prices of similar land plots, capitalization of net operating or rental incomes, accounting for land improvement costs. In the list of methods used, methods of qualitative assessment, methods for taking into account restrictions in the development of a site, and methods for income loss can be found. In order to take into account the regional aspect of the location of the zones of special territorial use, monitoring of the protected zones of cultural heritage sites of the Republic of Crimea was carried out. The use of the method of pair sales and a comparative approach to the evaluation of land plots located in these areas was justified. The test of the suggested method for value assessment of land in zones with special conditions for the use of the territories of the Republic of Crimea made it possible to take into account the peculiarities of the impact of the buffer zone in a particular location. This ensured that there was no risk of distorting the final value of the market value of the land. The obtained results indicate the need to use the conditions of security restrictions in the development of the zones of special territorial use for the purpose of the justification of the most efficient use of free land plots, the status of which may differ by the type of allowed use established in the state register of real estate.