This is the risk when a company will not be able to meet its responsibilities to pay back its debts. It is a possible change in an investment's ability to return income and principal. The more debt a company holds, the higher its...
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Cash Flow
This is a company's or an organization's money coming in and going out during an accounting period. It is the net operating minus debt services. It takes into account the net operating income, capital expenses, debt service, sale...
Building Standard
This refers to the designated brand, grade, type, quality, and quantity of construction materials that the landlord establishes from a certain period. It is the minimum quality or quantity to be used in a building. The quality of...
Equity REIT
This is a real estate investment trust (REIT) that either possesses or has an equity interest in rental real estate as opposed to making loans secured by real estate collateral.
First Refusal Right or Right Of First Refusal (Purchase)
This is a clause that grants the first chance to purchase a property at the same value and on the same conditions and terms as those contained in a different third party offer that the property owner has stated that they are...
Dividend-ex date
Also called the reinvestment ex-date or date, the ex-dividend date is the date the stock starts trading without the value of the next dividend payment. It is usually 1 business day before the recorded date. The investor who buys...
Generally Accepted Accounting Principles.
Issued by the Financial Accounting Standards Board (FASB), GAAP is the ordinary set of accounting standards, principles, and procedures in which public companies in the U.S. must oblige to when their accountants assemble their...
Disaggregating Demand
This refers to the process of identifying and separating different factors and forces that directly affect the demand of a particular property type in a specified market. It can also refer to the differentiation of demand by...
High Cube
Also called high bay, this refers to industrial buildings that possess an abundance of vertical cubic space or clear height.
Cash Flow Method
This is typically utilized when seeking out how much of a loan a business' cash flow will support. The adjusted cash flow is then used as a basis to measure the business's ability to service debt.
