Cash Rent Yield

The annual rent received from leasing an asset such as farmland, divided by its price.

Example

Farmland bought for 500,000 and leased for 15,000 a year yields 3.0%.

It is one of the few alternative assets with a real cash flow, which is why it can be valued rather than just guessed at.

Royalty Interest — A right to receive a share of the revenue from an asset such as a song catalogue, a patent or mineral production.
Holding Cost — The ongoing cost of owning an asset, such as storage, insurance, maintenance and fees, whether or not it produces income.

Most alternative assets pay you nothing until the day you sell — Art, wine, watches and domains produce no income at all while you hold them - the return exists only as a price someone else agrees to pay later. A small minority of alternatives, like farmland and royalty rights, are genuinely different because they generate cash along the way. (9 min)
For most alternatives, the entire return is one number: the exit price minus everything paid to get there — Without a dividend or a coupon, appreciation is the whole story for art, wine and watches - and it only becomes real at an actual sale. Farmland and royalty interests instead compound the way an income-producing asset does, cash paid out year after year. (11 min)