Glossar

Authorized investment funds. Tax-exempt unlisted UK funds

Alternative Investment Market of the London Stock Exchange

The rate at which rentable space is filled. Absorption rate can be divided into gross …

The process whereby a loan is declared due and payable prior to its scheduled repayment date, …

Amortization refers to the spreading out of expenses over a specific period of time. In real …

The APR is the actual effective rate of interest charged on a loan expressed on a yearly basis …

An appraisal is the evaluation of a property to determine its price. Property is evaluated or …

Appreciation relates to the increase in the value of a property or an asset, such as stocks, …

Assignment is the process by which a right or contract is transferred from one party to …

Tax-exempt unlisted UK funds

A technique used to forecast data by reducing or cancelling the effect of random variation in …

An amount that is usually used as a minimum, or initial, rent. Depending on the lease …

A basis point, or bp, is a common unit of measure for interest rates and other percentages. One …

The total amount paid for a property, including equity capital and the amount of debt incurred.

The point at which the income from sale of a product or service equals expenditure. For real …

A bridge loan is a loan for a short duration of time. It can be used when one is purchasing one …

Buy/rent threshold refers to the point at which, as a result of market conditions there is a …

Capital improvements (or capital expenditures) are expenses which aim to add value to a …

An increase in the value of a capital asset. A capital loss is incurred when there is a …

A capitalization rate (or Cap rate) is an estimate of an investor's potential return on her …

Cash flow is the income produced by an investment property after deducting operating expenses …

It is a basic calculation to estimate the return from an asset that generates income. The …

Common equity refers to a measure of equity, which takes into account common stockholders and …

Comps are used in assessing or establishing the fair market value of a property. Comps usually …

CPI is an index indicating the change in prices of various commodities and services, providing …

In real estate, it is an appraisal method for estimating the value of properties that have few, …

Debt refers to amount of money borrowed by one party from another, under the condition that it …

The debt-to-equity ratio is a measure of company's financial leverage and indicates the …

The debt-to-income ratio is the percentage of a borrower's monthly payment obligation on …

In real estate, "development" refers to the building of a new structure, or improving existing …

The Percentage rate at which money or cash flows are discounted. The discount rate reflects …

Distributions of capital gains or income refer to payments made to investors periodically …

Due Diligence refers to an investigation or audit of a potential investment. Due diligence …

EURIBOR refers to the rates offered to banks on euro interbank term deposits and are considered …

Efficiency ratios are typically used to analyze how well a company uses its resources. For real …

An Electronic Signature or e-Signature is an electronic sound, symbol, or process, attached to …

Equity represents an ownership interest in an asset. Equity investments in real estate carry …

A state where consideration, benefits, legal rights, document, or a sum of money is held by one …

The fair market value is the price for property agreed upon between a buyer and seller in a …

An analysis and evaluation of a proposed project to determine if it is technically feasible, …

The FCA (Financial Conduct Authority) is the financial regulatory body in the UK. It operates …

Financial leverage refers to the degree to which a company uses debt and preferred equity in …

Financial risk usually refers to an uncertainty in an investment's ability to return funds …

Free cash flow (FCF) is a measure of how much cash a business generates after accounting for …

A gross lease is a lease in which the lessor pays all costs of operating and maintaining the …

A tangible and physical item or object of worth that is owned by an individual or a …

A method to estimate the value of an income-producing property by converting net operating …

An instalment sale is a property sale in which the purchaser pays the purchase price over a …

Internal Rate of Return (IRR) measures the profitability of an investment the higher a …

Stands for -London Interbank Offered Rate-, and is the average yield of interbank offered rates …

The likely price that a property would bring in a forced sale. Used when a sale must occur with …

A ratio used in commercial real estate construction to compare the amount of the loan used to …

mortgage. Typically, assessments with high LTV ratios are generally seen as higher risk and, …

The monthly charged levied on owners by a cooperative corporation to cover the building's …

The process of examining market supply and demand conditions, demographic characteristics, and …

The most probable price that a property would bring in a competitive and open market under fair …

The actual dollars paid out by the tenant to occupy the space (including rent, property taxes, …

In real estate, the number of units in a building that have been rented out as compared to the …

A passive loss is a loss generated by investment real estate when real estate is not the …

A sale of real estate in which income is recognized for tax purposes but no money has been …

The total amount of rental income for a property if it were 100% occupied and rented at …

Preferred equity is usually considered a hybrid instrument, and is a type of stock which may …

Preferred return refers to a fixed payment received by holders of company's preferred stock. …

Pro-forma usually refers to projected financial statements or a financial model often based on …

A quantifiable method of risk analysis. This method assigns probabilities to specific, possible …

A real estate broker is an individual employed on a fee or commission basis as an agent to …

An investment vehicle in which investors purchase certificates of ownership in the trust, which …

When investment real estate has been depreciated for tax purposes, the gain on the sale …

The return of an investor's principal in a fixed income security, such as a preferred stock or …

A secured position retains the right to foreclose on a property in the event of a default, or …

Loan that a company must repay first if it goes out of business. Senior debt holders are most …

An individual or firm in charge of finding, acquiring, and managing a piece of real estate, …

Usually refers to a party that takes on risk. For instance, a securities dealer will act as an …

Underwriting process involves the satisfactory review of the issuers property appraisal and …

Yield refers to return on investment. The return could be in interest or dividends received …