Even though real estate returns (by this I assume you're meaning rent or lease income) don't technically "compound" like equity investments, there should still be some semblance of growth. Rent rates should increase due to inflation and market growth, so your return as a percentage of the value of the asset should be relatively stable. So using a CAGR of 9% would be appropriate. Bonds are treated similarly. Instead of using a flat rate of return, the yield is calculated as if the bond compounded, which is not the case in reality.

My guess is this is some sort of sales material or seminar trying to get you to invest in something, and from a sales standpoint 13% sounds a lot better than 9%.

Even though real estate returns (by this I assume you're meaning rent or lease income) don't technically "compound" like equity investments, there should still be some semblance of growth. Rent rates should increase due to inflation and market growth, so your return as a percentage of the value of the asset should be relatively stable. So using a CAGR of 9% would be appropriate. Bonds are treated similarly. Instead of using a flat rate of return, the yield is calculated as if the bond compounded, which is not the case in reality.

My guess is that this is some sort of sales material or seminar trying to get you to invest in something, and from a sales standpoint 13% sounds a lot better than 9%.