| loan to equity | The consolidated total leverage at the vehicle level as a percentage of the nav of the vehicle. |
| loan to value (ltv) | The consolidated total leverage/gearing at the vehicle level as a percentage of the gav of the vehicle. |
| london interbank offered rate (libor) | The average interest rate at which major global banks borrow from one another. |
| low-rise apartments | Walk-up buildings and elevator buildings three stories or less. |
| make-whole margin | Payment made as compensation to lender for unpaid interest arising due to early payment of outstanding loan principal, refers to the make-whole provision. |
| make-whole provision | A provision which allows a borrower to repay a loan early, without lender consent, but subject to certain payments being made to the lender to compensate them for the loss of interest which would ... |
| mandatory disclosure requirements | Legally binding reporting requirements for listed or non-listed companies. in the eu, these requirements include the european accounts modernisation directive, which is interpreted in different wa... |
| manufacturing facility (industrial) | Buildings with 10-16 foot ceilings or sufficient height for overhead cranes. provides floor height and dock height loading. |
| market approach (valuation technique) | The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. |
| market vacancy | Current vacancy rate for the market for the same property type. |
| marketing costs | Definition vehicle formation costs. |
| material adverse effect | This is used as a qualifier to certain representations and undertakings as well as triggering the material adverse change event of default. this definition should be considered on a case by case b... |
| maximum ltv | "the consolidated total external leverage at the vehicle level as a percentage of the gav of the vehicle. |
| depending on the accounting standards, a manager will mark the debt to market, with any gain or loss being reflected in the vehicle’s profit & loss account. |
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| investors’ subscriptions in the form of loans (e.g., for tax purposes) should be excluded from the calculation" |
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| mezzanine debt | - The capital structure layer of funding between common equity and secured borrowing, usually subordinated and sometimes may carry an equity warrant. mezzanine finance may also involve an elemen...
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| minimum capital requirement (mcr) | The minimum level of regulatory capital that insurance companies are required to maintain under solvency ii. |
| modified dietz | The single period rate of return formula that is widely used throughout the financial industry to combine into twrs. it allows the placement of sub period boundaries at dates when valuation data w... |
| multi manager | The term multi-manager is often used interchangeably with fund of funds manager. multi-manager is defined as a fund manager who invests a single mandate from an investor into a number of property ... |
| national council of real estate investment fiduciaries (ncreif) | Ncreif is a us based not-for-profit association of institutional real estate professionals which includes investment managers, plan sponsors, academicians, consultants, appraisers, certified publi... |
| neighborhood center (retail) | Provides for the sale of daily living needs of the immediate area. typical area is 30,000 to 150,000 square feet with at least one anchor tenant. |
| net asset value - nav (inrev) | A vehicle’s gav less all liabilities as per the chosen valuation principles. |
| net asset value - nav (rs) | The nav is the fair value of real estate and all other assets less total liabilities. this is the amount reported in the gaap fair value based financial statements. |
| net debt yield | Property’s net operating income as a percentage of the total principal loan amount. |
| net equivalent yield | A time-weighted average of the net initial yield and reversionary yield, representing the return a property will produce based upon the timing of the income received. |
| net financing cost | All costs related to external debt (e.g., interest expenses or received, extension fees, prepayment fees, cost of related interest rate swaps), excluding amortization and distribution to investors... |
| net initial yield (niy) | The passing rent or net operating income divided by the gross property value including notional acquisition costs. |
| net investment income-operating model | Under the operating model, net investment income is a measure of operating results. it is primarily intended to provide a measure of operating activity, exclusive of capitalized expenditures, such... |
| net operating income (noi) | The gross operating income of a property for the period less operating expenses. noi relates to the operating portfolio of the vehicle and not (re)development assets which are reported under '... чистая операционная прибыль (noi); |
| net return | The amount an investor earns over the stated period after all vehicle-level fees and expenses including taxes and servicing of debt are deducted. |
| net sale price | Gross sales price net of any selling costs and expenses, and before debt. selling expenses are directly attributable to the sale which are the seller's responsibility including, but not limite... |
| noi yield | Noi / fair value of investment portfolio |
| nominal value of debt excluding shareholder loans | This includes third party portfolio facilities or credit lines (and any drawn equity bridge), with all currencies converted to vehicle currency. |
| non-controlling effects on the inrev nav adjustments | This adjustment represents the impact on nav of the combined effect of the recognition of minority interest on the inrev nav adjustments (the inrev nav excluding non-controlling effects). |
| non-controlling equity interests (minority interest) | An ownership position that does not meet the requirements of control according to the governing accounting literature. |
| non-operating model | A reporting model, supported by asc 946, financial services-investment companies. it generally employs a net presentation. |
| non-participating mortgage loan | An investment secured by a lien on real estate that generally entitles the lender to payments of contractual principal and interest that do not increase based on the underlying operating results o... |
| non-performing loan (npl) | A loan which is no longer performing in line with the contractual obligations of the facility agreement. |
| number of assets | Number of assets as defined by the manager |
| number of new / renewed loans | Total number of new loans (additional borrowing/ refinancing) |
| office showroom | Single story (or mezzanine) with 10-16 foot ceilings with frontage treatment on one side and dock height loading or grade level roll-up doors on the other. less than 15% office space. |
| open end | An investment vehicle with a variable and unlimited amount of capital which may be accepted and has an infinite life. investors may purchase or redeem units or shares from the vehicle as outlined ... |
| open-end commingled fund | A commingled fund with an infinite life, which allows periodic entry and exit of investors, and typically engages in ongoing investment purchase and sale activities. |
| operating model | A reporting model, supported by asc 960 and gasb 25. (asc 960 gasb 25 require certain investments held by tax-exempt investors, including defined benefit plans and endowments are to be reported at... |
| operating or stabilized | Completed construction that achieved 60% occupied status since the end of construction or has been available for occupancy for more than one year. if stabilized, operating phase |
| operating property | Operating or stabilized: completed construction that has achieved 60% occupied status since the end of construction or has been available for occupancy for more than one year. if stabilized, opera... |
| operational results | Noi plus other net income |
| opportunistic (inrev style) | A fund which typically uses high leverage, has a high exposure to development or other forms of active asset management, and will deliver returns primarily in the form of capital appreciation. the... |
| opportunistic (rs style) | An account of preponderantly noncore investments that is expected to derive most of its return from appreciation/ depreciation and/ or which is expected to and may exhibit significant volatility i... |
| other net income | Non-recurring non-operating profit income, calculated by subtracting related operating expenses from the revenue of development projects and non-rental revenue. |
| other/misc. vehicle costs | Small or infrequent vehicle level costs that are not assigned to another cost category but are classified as a group. these may include other administration costs, statutory costs, etc. |
| outlet center | Typically 50,000 to 400,000 square feet of manufacturer's outlet stores, with a primary trade area radius of 25 to 75 miles. |
| outstanding portfolio balance | The outstanding portfolio balance is the total outstanding loan value of the entity’s portfolio at the end of the reporting period. unpaid principal balance (upb) is a metric used in gresb data an... |
| outstanding principal balance | Outstanding principal balance refers to the aggregate outstanding principal amounts attributable to the loan under the facility agreement. |
| over the counter (otc) | Refers to the trading of securities and derivatives by counterparties directly rather than through a recognised exchange. |
| paid in capital multiple | This ratio gives information regarding how much of the total commitments have been drawn down. |
| paid in capital to committed capital multiple | Paid in capital multiple |
| partial period (for twr purposes) | If an asset is acquired on a date other than the first day of a quarter, or sold on a date other than the last, the resulting measurement is said to be a "partial period" because the asset does no... |
| participated loan | A loan arranged by a group of lenders, but unlike a syndicated loan, each lender does not have a direct contractual relationship with the borrower and typically, there is no lead bank/manager. |
| participating mortgage | An investment secured by a lien on real estate that generally consists of three parts: (1) "based interest" payments at contractually stated fixed or floating rates; (2) "contingent interest" paym... |
| payment in kind (pik) interest/ accrued interest | Payment in kind (pik) interest accrues and capitalises periodically over the life of the debt instrument, thus increasing the underlying principal (i.e. compound interest). this is typical of deve... |
| pension real estate association (prea) | Prea is a non-profit organization whose members are engaged in the investment of tax-exempt pension and endowment funds into real estate assets. prea's mission is to serve its members engaged ... |
| percentage of total capital commitments invested | "total capital commitment drawn / total capital commitments (by all investors). |
| this expresses the amount of the capital commitment to the vehicle that is currently invested (allowing for reinvested returned capital) as a percentage of the total vehicle size in terms of total commitments." |
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| percentage rent | A percentage of the tenant's total annual sales paid as rent. percentage rent is normally paid after a predetermined sales level has been achieved. the percentage factor is then applied to all... |
| performance attribution | Analysis of the performance of an investment against its benchmark. it quantifies and explains the returns of a portfolio when compared to its appropriate benchmark. it facilitates understanding o... |
| performance fee | Also known as incentive fees, promote or carried interest, are fees charged by investment advisors, or managers, after a predetermined investment performance has been attained. carried interest re... |
| permitted payment | Payments permitted as outlined in the loan documentation (e.g. amortisation, or repayments from sales in a portfolio) under the payment waterfall. these payments should be considered on a transact... |
| persons | The average number of persons used as a denominator of a building energy intensity indicator. for example: visits to shopping centres, workstations in offices, workers in industrial, residents in ... |
| physical risk | The physical, locational and integrated systems risks associated with the impact of climate change on real assets and investments. it can be event driven (acute; e.g. natural hazards, cyclones, hu... |
| placement agent costs | Costs incurred when sponsors of real estate funds retain placement agents in connection with the sale of limited partnership interests in the fund. it is calculated based on investor commitments s... |
| planned liquidation date | The specific date, as defined in the vehicle’s documentation, on which the vehicle is expected to be liquidated and all residual equity returned to the investors. |
| pooled trusts | A multi-investor investment vehicle which is legally structured as a trust. |
| portfolio interest service coverage ratio | Projected noi over the following four quarters as a ratio of projected interest payments on bank (not shareholder) loans over the same period. this is a portfolio metric which may not reflect prec... |
| power center | Typically 250,000 to 600,000 square feet with three or more anchor stores that occupy 75-90% of the total area. anchor stores are "category-dominant" home improvement stores, discount department s... |
| predevelopment | Raw land or land undergoing property site development |
| prepayment fees | A penalty fee which may be charged if a loan is repaid or partially repaid prior to maturity (prepayment), designed to protect the lender against loss of income should a loan be repaid quickly. th... |
