Real estate may be yielding less than you thought

* Income is an important part of real estate returns, meaning yields are often heavily scrutinised by investors. But headline yields often do not factor in capital expenditure (capex) requirements.

* Variables such as age, location and property type can influence how much capex is required to operate an asset.

* Investors looking to understand the potential "free cash flow" position of assets or portfolios post-capex may want to adjust the yields they use to account for it.