The language
of investing.

The pace at which available units or space are leased or sold in a market over a stated period. Net absorption measures the change in occupied inventory.

An investor meeting an SEC eligibility category based on income, net worth, professional credentials, or entity characteristics. Accreditation is an eligibility test, not an endorsement of an investment.

The purchase price plus transaction costs incurred to acquire a property. A project’s total capitalization may also include renovation costs, financing costs, and reserves.

Compensation paid to a sponsor or manager for sourcing and completing a purchase. The amount, calculation basis, and payment timing should appear in the offering documents.

Investing with direct responsibility for selecting, managing, or improving assets. This everyday description is different from the IRS tests for active or material participation.

A property’s tax basis after adjustments such as capital improvements and depreciation. It is used to calculate taxable gain or loss on disposition.

A REIT performance measure adjusting FFO for additional items, often including recurring capital needs and noncash rent adjustments. Methods vary, so compare the issuer’s reconciliation.

Housing with rents or ownership costs affordable to a defined income group. Restricted affordable housing has program-specific income, rent, and compliance requirements.

In multifamily lending, a mortgage originated under programs associated with Fannie Mae or Freddie Mac. HUD/FHA-insured financing is a separate program category.

A detailed survey prepared to an applicable national standard, showing specified boundaries, improvements, access, easements, and other features relevant to title and financing.

Features or services supporting a property’s appeal, such as parking, fitness facilities, internet, outdoor areas, or in-unit laundry.

The gradual repayment of loan principal through scheduled payments. The amortization period can exceed the loan term, leaving a balloon balance at maturity.

An arithmetic average of annual investment returns. Real estate sponsors sometimes calculate it differently, so the formula and treatment of sale proceeds must be stated.

A procedure where figures covering a period of less than one year are extended to cover a 12-month period.

The average annual return over a period of years, taking into account the effect of compounding. Annualized rate of return also can be called compound growth rate.

A professional opinion of property value as of a specified date, based on a defined scope, assumptions, and valuation methods.

The increase in value of a financial asset.

The midpoint of an area’s income distribution. Housing programs often use HUD-published income limits adjusted for household size rather than an unadjusted median alone.

The estimated value of a property in its current condition and operating state, without assuming planned renovations or future stabilization have occurred.

The process of dividing investments among cash, income and growth buckets to optimize the balance between risk and reward based on investment needs.

Securities with similar features. The most common asset classes are real estate, stocks, bonds and cash equivalents.

Oversight of a property’s business plan, financing, capital projects, reporting, and performance. It is broader than day-to-day property management.

A fee for ongoing oversight of the investment. It may be based on revenue, invested equity, asset value, or another contractually defined measure.

An existing loan that may be transferred to an eligible buyer under its terms, usually subject to lender approval, fees, and underwriting.

Tax rules that can limit deductible losses to amounts a taxpayer is considered financially at risk for in an activity, before other applicable limitations.

Rent or other receivables expected to be uncollectible or written off. It reduces realized revenue and differs from vacancy.

Common shorthand for exceptions to nonrecourse protection. Specified acts, such as fraud or prohibited transfers, may trigger loss-based liability or full recourse under the loan documents.

A large principal balance due at maturity because scheduled payments have not fully repaid the loan.

The contractual rent before separately billed expenses, percentage rent, or other charges. Its meaning depends on the lease structure.

One hundredth of one percentage point. A 50-basis-point increase takes a 5.00% rate to 5.50%.

A standard, usually an unmanaged index, used for comparative purposes in assessing performance of a portfolio or mutual fund.

• A top performing product, service or person within a category or peer group.
• A sustainable investment style that involves investing in companies that lead their peer groups with respect to sustainability performance.

An additional first-year deduction for qualifying property. Eligibility depends on asset type, acquisition and service dates, and applicable rules; the entire building does not automatically qualify.

Cash, nonqualifying property, or certain net debt relief received in an exchange that may trigger recognition of gain.

The occupancy or collection level needed to cover specified expenses and debt service. A simplified ratio is operating expenses plus debt service divided by gross potential income; other income and reserves affect the result.

Short-term financing used until a property can be sold, stabilized, or refinanced with longer-term debt.

Interior construction or alterations making a space suitable for its intended use, often under an agreed tenant-improvement plan.

Homes developed specifically for rental use, often within a professionally managed community.

A market shorthand, often A, B, or C, for relative property quality, age, location, and amenities. Classification is subjective and varies by market.

The roof, exterior walls, windows, doors, and related components separating indoor space from the outside environment.

The investment’s proposed operating and capital strategy, including acquisition assumptions, improvements, financing, performance targets, and exit options.

The funds invested in a company on a long-term basis and obtained by issuing preferred or common stock, by retaining a portion of the company’s earnings from date of incorporation and by long-term borrowing.

A record of a partner’s capital under a specified accounting or tax convention. It is not necessarily equal to tax basis, cash invested, or an investment’s market value.

A request from a fund manager for the investor to provide additional capital for an investment that the fund has committed to.

Spending on improvements or replacements with benefits extending beyond ordinary ongoing operations, such as roofs or major renovations. Tax capitalization rules may differ from underwriting classifications.

A profit made from selling an asset for more than it was purchased for.

The difference between an asset’s purchase price and selling price (when the difference is positive) that was earned in more than one year.

The difference between an asset’s purchase price and selling price (when the difference is positive) that was automatically in vested in more shares of the security invested at the security’s net asset value.

The difference between an asset’s purchase price and selling price (when the difference is positive) that was earned in under one year.

The amount by which the proceeds from a sale of a security are less than its purchase price.

An objective emphasizing protection of invested principal. It describes an investment priority rather than a guarantee against losses.

Obtaining investor commitments or funding for a business or asset through an offering, subject to applicable securities rules.

The layers funding an investment, such as senior debt, mezzanine debt, preferred equity, and common equity, with different payment priorities and risk exposures.

Annual property NOI divided by price or value. State the NOI period and adjustments used. A cap rate excludes financing and is not an investor’s total return.

A decrease in the market or assumed cap rate. With NOI unchanged, a lower cap rate implies a higher property value.

An increase in the market or assumed cap rate. With NOI unchanged, a higher cap rate implies a lower property value.

Also known as “carry-income” or “promote income” this is typically a performance-based compensation paid to investors or fund managers when the returns on a given investment exceed predefined targets.

A measure of money flows into and out of a business or other entity that is used to measure its financial health over a given timeframe. Cash flow can be either positive or negative based on the amount of money coming in or going out.

A loan provision directing specified cash into controlled accounts or toward debt repayment when contractual conditions are met.

Annual before-tax cash flow to equity divided by the equity investment used in the calculation. It typically excludes unrealized appreciation and must specify how returned capital is treated.

A distribution tier allowing a sponsor or other participant to receive additional distributions after an earlier investor hurdle, as defined in the waterfall.

An approval from the applicable authority permitting occupancy or use of a building for specified purposes. Requirements and temporary approvals vary by jurisdiction.

An approved modification to construction scope, price, schedule, or another contract term after the original agreement.

Different ownership classes within an investment, potentially carrying different fees, returns, or voting rights. These labels do not describe the property’s building class.

A provision requiring repayment of earlier distributions or compensation if subsequent results show a recipient received more than the agreement permits.

An investment fund that issues a limited number of shares that trade on an exchange, like any other publicly traded stock or bond.

Expenses incurred to complete a transaction, including legal, title, lender, recording, and other settlement charges.

Capital invested alongside a sponsor or fund in the same deal. Participation does not automatically create identical economics or control rights.

Securities backed by pools of commercial mortgages, with payments and losses allocated among classes under the securitization structure.

An agreement between an investor and a fund manager to commit capital towards an alternative investment opportunity over a specified timeframe. This usually takes the form of an installment plan where multiple payments are made at different intervals throughout the investing process.

Costs of operating and maintaining shared areas. Commercial leases define which costs tenants reimburse and how those charges are allocated.

Ownership capital generally paid after debt and any senior equity preferences. It participates in residual upside and bears corresponding downside risk.

Properties used as reference points for rents, operating performance, or value after considering differences in location, condition, size, and transaction timing.

Incentives such as free rent or reduced fees offered to obtain or retain tenants. They reduce effective revenue relative to quoted terms.

An ownership structure combining individually owned units with shared interests in common property, governed by applicable law and association documents.

A budget allowance for uncertain construction costs or changes. It is separate from known work already included in the base budget.

Financing for development or major improvements, commonly advanced in draws as work progresses and subject to inspections and other funding conditions.

A strategy emphasizing relatively stable, established properties and income, usually with lower operational complexity and leverage than more opportunistic strategies.

A strategy combining generally established properties with moderate leasing, renovation, or operational improvements. The label is descriptive rather than a standardized risk rating.

A valuation method estimating land value plus the cost of improvements, less depreciation and obsolescence.

An analysis separating qualifying building components and land improvements into appropriate tax asset classes, potentially accelerating depreciation compared with the building itself.

A contractual requirement or restriction, such as maintaining specified financial ratios, reserves, insurance, or reporting.

Recorded or contractual rules governing property use, improvements, and obligations, commonly associated with planned communities and condominiums.

A structure in which multiple assets secure the same debt or related obligations, potentially linking their release and enforcement terms.

A provision under which a default on one obligation can trigger a default on another, subject to the contract’s definitions and thresholds.

A preferred return whose unpaid amounts carry forward under the agreement. Cumulative does not necessarily mean the unpaid balance earns compound returns.

A financial institution that holds your account’s investments for safekeeping and sees to it that all IRS and government regulations are adhered to at all times. and collects most of the valuation data required to calculate an asset’s net asset value (NAV).

A form of financing where capital is borrowed to finance operations or acquisitions.

An investment vehicle that provides or acquires loans rather than primarily owning property equity. Risk depends on collateral, leverage, priority, and underwriting.

Required payments of loan principal and interest during a stated period. Underwriting may use scheduled, actual, or lender-stressed payments.

Property income available for debt service divided by required debt service. A 1.25x ratio indicates $1.25 of qualifying income per $1 of debt service; lenders define income and adjustments differently.

Annual NOI divided by the loan amount. Unlike DSCR, it does not directly depend on the loan’s interest rate or amortization schedule.

The instrument used to convey an ownership interest in real estate. The interest transferred and warranties provided depend on the deed and applicable law.

A security instrument involving a borrower, lender, and trustee that secures a real estate obligation where permitted by state law.

A process that replaces real estate collateral with qualifying securities whose cash flows support the remaining loan payments, subject to the loan’s requirements.

Necessary maintenance that has been postponed, potentially increasing repair costs, operational disruption, or safety concerns.

A trust formed under Delaware law. Interests in a properly structured real estate DST may qualify for Section 1031 treatment; not every DST qualifies.

Rent, fees, or loan payments that remain unpaid after their due date. Reports should distinguish balances outstanding from amounts already written off.

A tax deduction allocating eligible property cost over its recovery period. Land is not depreciable, and tax depreciation does not measure changes in market value.

Rules affecting gain on the disposition of depreciated property. Treatment differs by asset type and may include ordinary-income recapture or unrecaptured Section 1250 gain.

Compensation to a developer for managing a project’s development process, as defined in the project agreements and budget.

The difference between projected stabilized yield on cost and the market cap rate used for a completed property. It is a risk cushion, not guaranteed profit.

The rate used to convert future cash flows into present value, reflecting timing and the return required for their risk.

A valuation method that discounts projected operating cash flows and a future sale value to their present value.

The sale or other transfer of an asset. Disposition proceeds are typically reduced by selling costs and debt repayment before equity distributions.

Compensation payable to a sponsor or manager for completing a sale, if provided for in the investment documents.

A property facing financial, operational, physical, or legal problems that may require restructuring or significant investment.

Cash available for investor distributions after obligations, reserves, and other adjustments specified in the governing documents. It is not necessarily equal to NOI or taxable income.

A tentative distribution schedule of a mutual fund’s dividends and capital gains.

The contractual order and proportions in which cash is allocated among investors and sponsors, potentially including preferences, capital repayment, hurdles, and a promote.

The process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns.

The most commonly used indicator of stock market performance, based on prices of 30 actively traded blue chip stocks, primarily major industrial companies. The Average is the sum of the current market price of 30 major industrial companies’ stocks divided by a number that has been adjusted to take into account stocks splits and changes in stock composition.

The planned sequence of construction funding advances tied to costs incurred, completion milestones, and lender or owner approval.

The careful investigation of potential investments prior to committing any money towards them. Due diligence includes researching the market opportunity, assessing management team capabilities and understanding all risks associated with the prospective investment.

A loan provision allowing acceleration or other remedies upon specified property or ownership transfers unless an exception or lender consent applies.

Additional proceeds or compensation becoming available after specified performance conditions are satisfied, such as occupancy or NOI targets.

A buyer’s deposit demonstrating commitment under a purchase contract. Refundability, release, and forfeiture depend on the contract and applicable contingencies.

A right to use another party’s land for a defined purpose, such as access or utilities, without owning the land outright.

Rental revenue realized as a percentage of gross potential rent, reflecting vacancy, concessions, and credit losses. Reports must specify whether the numerator uses billed or collected rent.

Potential property income after vacancy, concessions, and credit losses, plus applicable other income, using consistently defined assumptions.

Rent after accounting for concessions and other relevant lease incentives over a stated period. It can differ materially from face rent.

A claim, restriction, or interest affecting property, such as a lien, easement, or recorded covenant.

Governmental approvals needed for a proposed property use or development, which may include zoning, subdivision, site-plan, and other permissions.

An investigation of a property’s environmental conditions and potential liabilities. Its scope varies by phase and does not guarantee the absence of contamination.

The systematic inclusion of financially material ESG factors in investment analysis and investment decisions, with the goal of enhancing long-term, risk adjusted financial returns:

• Environmental – Factors that relate to the quality and functioning of the natural environment, and natural systems, e.g., carbon emissions, environmental regulations, water stress and waste.
• Social – Factors that relate to the rights, well-being, and interests of people and communities, e.g., labor management, health & safety.
• Governance – Factors that relate to the management and oversight of companies and investee entities, e.g., board structure, pay. 

The portion of a company’s profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company’s profitability.

Shares issued by a company which represent ownership in it. Ownership of property, usually in the form of common stocks, as distinguished from fixed-income securities such as bonds or mortgages. Stock funds may vary depending on the fund’s investment objective.

A mutual fund/collective fund in which the money is invested primarily in common and/or preferred stock. Stock funds may vary, depending on the fund’s investment objective.

Total cash distributions, including returned capital, divided by total equity contributed. A 2.0x multiple means $2 received per $1 invested, without accounting for time.

A change in an investment’s equity ownership or funding structure, such as introducing new investors or buying out an existing partner.

An arrangement in which a third party holds funds or documents until specified conditions are satisfied. Mortgage escrows may separately accumulate money for taxes and insurance.

A tenant or other party’s signed confirmation of specified facts, often including rent, lease terms, deposits, and claimed defaults, for a buyer or lender.

The legal process for recovering possession from a tenant. Grounds, notices, procedures, and restrictions vary by jurisdiction.

The interval between the announcement and the payment of the next dividend for a stock.

The date on which a stock goes ex-dividend. Typically about three weeks before the dividend is paid to shareholders of record.

The ability to transfer money from one mutual fund to another within the same fund family.

• An investment process that excludes specific investments or classes of investment from the investment universe based on specific values or norms-based criteria.
• A sustainable investment style that excludes certain sectors, companies or practices based on specific values or norms-based criteria from a fund or portfolio. For example, certain industries, such as defense, tobacco or fossil fuel producers, can systematically be excluded from investment.

The capitalization rate assumed when estimating a property’s future sale value. Models commonly apply it to a defined forward NOI period.

The planned method of realizing or repositioning an investment, such as a sale, refinance, recapitalization, or long-term hold.

The ratio between a mutual fund’s operating expenses for the year and the average value of its net assets.

Amount, expressed as a percentage of total investment that shareholders pay annually for mutual fund operating expenses and management fees.

Property operating expenses divided by effective gross income. The ratio depends on which expenses and income items are included.

Laws prohibiting discrimination in housing and related activities. Federal protections apply to specified classes, and state or local laws may add protections.

Financing originated through approved lenders under Fannie Mae multifamily programs, subject to program-specific property, borrower, and underwriting requirements.

The interest rate charged by banks with excess reserves at a Federal Reserve district bank to banks needing overnight loans to meet reserve requirements. The most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate, which are periodically changed by banks and by the Federal Reserve Board.

The governing board of the Federal Reserve System, it regulates the nation’s money supply by setting the discount rate, tightening or easing the availability of credit in the economy.

The broadest form of real property ownership, subject to applicable laws, taxes, and other valid restrictions or encumbrances.

An event or information that are reasonably likely to impact the financial condition or operating performance of a company and should be considered during the investment decision-making process.

A purchase-contract provision making specified obligations dependent on obtaining acceptable financing within agreed terms and deadlines.

A fund or portfolio where bonds are primarily purchased as investments. There is no fixed maturity date and no repayment guarantee.

A security that pays a set rate of interest on a regular basis.

A loan with an interest rate that remains unchanged for the period specified in the agreement.

A loan whose interest rate changes with a stated benchmark, usually plus a contractual spread and subject to any floor or cap.

Total floor area counted under local rules divided by lot area. Zoning ordinances define which building areas count toward the ratio.

An increase in property value attributed to improvements in income, expenses, or physical condition rather than relying solely on market appreciation.

The legal process by which a secured creditor enforces its interest in property following a qualifying default.

Projected net operating income for a future period, often the 12 months following a sale or valuation date.

Financing originated through approved lenders under Freddie Mac multifamily programs, with eligibility, sizing, servicing, and prepayment terms determined by the applicable program and documents.

A pool of money from a group of investors in order to buy securities. The two major ways funds may be offered are (1) by companies in the securities business (these funds are called mutual funds); and (2) by bank trust departments (these are called collective funds).

A REIT performance measure generally adjusting net income for real estate depreciation and amortization and certain property-sale gains or losses under Nareit’s definition. It is not cash available for distribution.

Typically low-rise multifamily buildings spread across landscaped grounds, often with exterior access and surface parking.

The managing partner in a limited partnership. Syndications also use GP informally for the sponsor; actual management rights and liability depend on the entity structure and documents.

Voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond.

A type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental friendly projects.

A lease in which the landlord generally pays specified property operating expenses from the rent received, subject to exclusions and reimbursement provisions.

The rent a property could generate at full occupancy before vacancy, concessions, or collection losses. State whether the model uses market rents or contractual rents.

Property price divided by annual gross rental income. It is a screening measure that does not account for expenses or financing.

Gross return is measured before specified fees or allocations; net return reflects the deductions included in the stated methodology. Comparisons require the same definitions.

A lease granting use of land for a specified term, often allowing the tenant to own or develop improvements subject to reversion and other lease terms.

Investment strategy that focuses on stocks of companies and stock funds where earnings are growing rapidly and are expected to continue growing.

Typically a well-known, successful company that is experiencing rapid growth in earnings and revenue, and usually pays little or no dividend.

Growth funds focus on future gains. A growth fund manager will typically invest in stocks with earnings that outperform the current market. The manager attempts to achieve success by focusing on rapidly growing sectors of the economy and investing in leading companies with consistent earnings growth. The fund grows primarily as individual share prices climb.

A person or entity contractually responsible for specified obligations if defined conditions arise, such as payment default or a recourse trigger.

Direct construction costs such as labor, materials, and equipment, distinguished from design, permits, financing, and other soft costs.

Typically short-term, collateral-focused lending from a private lender, often with higher pricing and faster execution than conventional financing.

The legally permissible, physically possible, financially feasible use of a property that produces its highest value under the appraisal analysis.

The length of time an investment is expected to be owned or was actually owned. Projected hold periods can change.

Costs incurred while owning a property, such as taxes, insurance, utilities, maintenance, and financing expenses.

An organization governing a community’s common interests, rules, and shared expenses under its governing documents and applicable law.

Properties providing lodging, such as hotels and resorts, with operating performance tied to occupancy, nightly rates, services, and travel demand.

A lender-originated, FHA-insured mortgage program supporting eligible multifamily new construction or substantial rehabilitation.

A lender-originated, FHA-insured mortgage used for eligible existing multifamily properties, including qualifying purchases and refinances, subject to HUD program requirements.

A return threshold that determines when a distribution tier or incentive allocation applies. The agreement specifies the calculation and whether it uses IRR or another measure.

A sustainable investment style that seeks to generate measurable positive social or environmental impact alongside financial return. Investment themes include activities such as affordable housing, education and healthcare.

The rent currently specified by existing leases, as distinct from asking rent or projected market rent.

A property valuation approach based on its income-producing potential, commonly using direct capitalization or discounted cash flow.

An investment index tracks the performance of many investments as a way of measuring the overall performance of a particular investment type or category. The S&P 500 is widely considered the benchmark for large-stock investors. It tracks the performance of 500 large U.S. company stocks.

A tax-deferred account to which an eligible individual can make annual contributions up to $3,000 ($6,000 for a single-income married couple filing a joint income tax return).

Properties serving manufacturing, warehousing, distribution, logistics, or related industrial activities.

A rise in the prices of goods and services, often equated with loss of purchasing power.

The portion of a covered loss borne by the insured under the policy, which may be a fixed amount or a percentage-based calculation.

The fixed amount of money that an issuer agrees to pay the bondholders. It is most often a percentage of the face value of the bond. Interest rates constitute one of the self-regulating mechanisms of the market, falling in response to economic weakness and rising on strength.

A purchased hedge that pays according to a contract when a reference rate exceeds a specified strike. It does not automatically cap every component of a loan’s interest cost.

A contract exchanging interest payment streams, commonly fixed for floating, on a notional amount. Termination can create an additional cost or benefit.

Funds set aside to pay loan interest for a specified period, often during construction or lease-up. Using a reserve does not eliminate the interest cost.

A period during which scheduled payments cover interest but do not reduce principal. Payments may rise when amortization begins.

The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates.

The discount rate that makes the net present value of modeled cash flows equal zero. It depends on timing and assumptions; some cash-flow patterns produce multiple or no meaningful IRRs.

An organization employed by a mutual fund to give professional advice on the fund’s investments and asset management practices.

A corporation, trust or partnership that invests pooled shareholder dollars in securities appropriate to the organization’s objective. Mutual funds, closed-end funds and unit investment trusts are the three types of investment companies.

A bond generally considered suitable for purchase by prudent investors.

The goal of a mutual fund and its shareholders, e.g. growth, growth and income, income and tax-free income.

Engaging with companies and voting proxies to ensure our clients’ interests are represented and protected and the company is focused on responsible allocation of capital and long-term value creation.

An online system for investment documents, statements, reporting, and other investor services. Available functions vary by sponsor and platform.

An obligation allowing a creditor to pursue one liable party for the full covered amount, subject to the contract and applicable law.

An arrangement in which parties combine capital, expertise, or other resources for an investment, with negotiated control, economics, and responsibilities.

A lower-rated, usually higher-yielding bond, with a credit rating of BB or lower.

A tax schedule reporting an owner’s allocated income, deductions, credits, and other items from a pass-through entity. Allocated taxable income can differ from cash distributions.

A metric used to monitor execution, such as collections, occupancy, renewal conversion, unit-turn time, or operating expense variance.

A person or entity identified by a lender as important to a borrower’s ownership, management, or financial strength. Obligations depend on the loan program.

Acquiring and holding land for potential future use or sale, often while awaiting entitlements, infrastructure, or market demand.

The market capitalization of the stocks of companies with market values greater than $10 billion.

A breakdown of when leases end, used to identify rollover exposure and coordinate renewal, marketing, and renovation plans.

Renewed leases divided by a defined set of expiring or renewal-eligible leases. Consistent treatment of excluded leases is essential.

The process of filling newly delivered or significantly vacant space until the property reaches a target level of occupancy and operating performance.

The tenant’s contractual right to possess or use real estate for the lease term, subject to the lease’s conditions.

Compensation paid for securing or renewing a tenant, typically calculated under a brokerage or leasing agreement.

A letter of intent may also be issued by a mutual fund shareholder to indicate that he/she would like to invest certain amounts of money at certain specified times. In exchange for signing a letter of intent, the shareholder would often qualify for reduced sales charges. A letter of intent is not a contract and cannot be enforced, it is just a document stating serious intent to carry out certain business activities.

The use of debt to finance an investment. It can increase equity gains or losses and creates payment and refinancing obligations.

The return to equity after including debt proceeds, financing costs, scheduled payments, and debt repayment.

A legal claim against property securing an obligation, such as a mortgage, unpaid taxes, or certain contractor payments.

A legal entity combining a flexible management structure with generally limited owner liability. Tax classification and investor rights depend on elections, law, and governing documents.

An investor in a limited partnership with rights and obligations defined by law and the partnership agreement. Sponsors also use LP informally for passive equity investors.

The Lipper Mutual Fund Industry Average is the performance level of all mutual funds, as reported by Lipper Analytical Services of New York. The performance of all mutual funds is ranked quarterly and annually, by type of fund such as aggressive growth fund or income fund. Mutual fund managers try to beat the industry average as well as the other funds in their category.

The ability to have ready access to invested money. Mutual funds are liquid because their shares can be redeemed for current value (which may be more or less than the original cost) on any business day.

Sales charges on mutual funds. A back-end load is assessed at redemption (see contingent deferred sales charge), while a front-end load is paid at the time of purchase. No-load funds are free of sales charges.

A buyer’s approved takeover of an existing borrower’s loan obligations, subject to lender requirements and the loan documents.

A charge associated with arranging or making a loan, often expressed as a percentage of the loan amount.

Loan amount divided by the lender’s defined total project cost. Eligible cost categories and treatment of land or reserves may vary.

Loan amount divided by the property’s value used for underwriting. A lender may apply its own appraisal and valuation requirements.

A specified period during which voluntary loan prepayment is prohibited or tightly restricted by the loan agreement.

A strategy that looks past the day-to-day fluctuations of the stock and bond markets and responds to fundamental changes in the financial markets or the economy.

The gap when contractual rents are below the market rents used in a model. It is distinct from vacancy, concessions, and bad debt.

A federal tax-credit program supporting qualifying affordable rental housing, with allocation, rent, income, and ongoing compliance requirements.

Work required to prepare a vacant rental unit for a new resident, including cleaning, repairs, inspections, and any planned upgrades.

The amount paid by a mutual fund to the investment advisor for its services.

A property offering sites for manufactured homes, often with shared infrastructure and amenities. Ownership of the homes may differ from ownership of the land.

The current price of an asset.

The rent reasonably obtainable for comparable space under current market conditions, considering location, condition, amenities, lease terms, and concessions.

The possibility that an investment will not achieve its target.

A risky investment strategy that calls for buying and selling securities in anticipation of market conditions.

A lease covering an entire property or substantial space, often allowing the master tenant to sublease to others subject to its terms.

A large coordinated development combining housing, infrastructure, amenities, and potentially commercial uses under an overall plan.

Participation meeting an IRS test for involvement in an activity. It affects passive-activity classification and is distinct from merely reviewing investment reports.

The date specified in a note or bond on which the debt is due and payable.

The breakdown of a portfolio’s assets based on the time frame when the investments will mature.

A claim securing qualifying unpaid labor or materials provided to improve property, subject to state-specific notice and filing requirements.

The midpoint of market capitalization (market price multiplied by the number of shares outstanding) of the stocks in a portfolio, where half the stocks have higher market capitalization and half have lower.

Subordinate financing commonly secured by a pledge of ownership interests in the property-owning entity rather than a direct mortgage on the real estate.

The market capitalization of the stocks of companies with market values between $3 to $10 billion.

A property combining uses such as residential, retail, office, or hospitality, sometimes with separate operating and financing considerations.

A lease that allocates selected operating costs between landlord and tenant rather than using a purely gross or net structure.

A short-term investment that seeks to protect principal and generate income by investing in Treasury bills, CDs with maturities less than one year and other conservative investments.

System for rating open- and closed-end mutual funds and annuities by Morningstar Inc. of Chicago. The system rates funds from one to five stars, using a risk-adjusted performance rating in which performance equals total return of the fund.

A security instrument creating a lien on real estate to secure repayment of an obligation. The term is also commonly used to refer to the loan.

Annual principal and interest payments divided by the original loan amount for a stated loan structure. It can help evaluate the effect of leverage.

Housing with multiple residential units. Commercial multifamily lending generally treats properties with five or more units differently from one-to-four-unit residential properties.

Fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities.

National Association of Securities Dealers Automated Quotations system, which is owned and operated by the National Association of Securities Dealers. NASDAQ is a computerized system that provides brokers and dealers with price quotations for securities traded over-the-counter as well as for many New York Stock Exchange listed securities.

The change in occupied units or space in a defined market during a period, reflecting both move-ins and move-outs.

Estimated asset value minus liabilities at a stated date. Private property valuations depend on assumptions and may differ from realizable sale proceeds.

The current dollar value of a single mutual fund share; also known as share price. The fund’s NAV is calculated daily by taking the fund’s total assets, subtracting the fund’s liabilities, and dividing by the number of shares outstanding. The NAV does not include the sales charge. The process of calculating the NAV is called pricing.

A defined cash-flow measure after specified adjustments to property income. Lenders may deduct replacement reserves from NOI; always check the applicable convention.

A lease requiring the tenant to pay specified property expenses in addition to base rent. The exact obligations depend on the agreement.

Property operating revenue minus operating expenses, generally before debt service, income taxes, depreciation, and capital expenditures. Consistent treatment of reserves and other adjustments is essential.

The present value of expected inflows minus outflows using a chosen discount rate. Positive NPV indicates value above the required return under those assumptions.

Cash remaining from a sale or refinancing after applicable debt repayment, transaction costs, and other required deductions.

A loan generally limiting recovery to pledged collateral rather than the borrower’s other assets, subject to guarantees and negotiated carve-outs.

A notice stating an intention or requirement to end occupancy. Its timing, legal effect, and delivery requirements depend on the lease and governing law.

Total number of individual securities in a fund or portfolio.

The occupied share of available units or space at a stated date or over a period. Distinguish physical occupancy from economic occupancy.

A marketing document summarizing an asset or offering. A broker’s property OM differs from a securities private placement memorandum.

The period during which an issuer accepts subscriptions or commitments for an investment, subject to its offering documents.

Properties providing workspace for businesses or professional services, with performance influenced by tenant demand, lease structure, location, and capital requirements.

An LLC’s governing agreement establishing management, voting, capital obligations, transfers, distributions, and other member rights.

A forecast of a property’s revenue and recurring operating expenses for a stated period, used to compare actual performance against expectations.

Costs of running a property, such as maintenance, payroll, insurance, property taxes, utilities, and management fees. Underwriting generally separates financing costs and capital expenditures.

Cash retained to meet operating shortfalls or unexpected needs. Required balances and permitted uses depend on lender requirements and the business plan.

A strategy involving substantial development, repositioning, leasing, or financial complexity, generally with greater execution risk and return uncertainty.

The value of the best alternative forgone when capital, time, or another resource is committed to an investment.

Property revenue beyond base rent, potentially including parking, laundry, storage, utility reimbursements, and permitted fees.

The residual ownership interest after liabilities. Accounting equity, market-value equity, and an investor’s capital account may be different amounts.

The price per share of a stock divided by its book value (net worth) per share. For a stock portfolio, the ratio is the weighted average price-to-book ratio of the stocks it holds.

Price of a stock divided by its projected earnings for the coming year.

Price of a stock divided by its earnings from the latest year.

Par value is the amount originally paid for a bond and the amount that will be repaid at maturity. Bonds are typically sold in multiples of $1,000.

Equal ranking among specified investors or obligations for a defined purpose. It does not by itself mean identical ownership percentages or all rights.

An agreement within the United Nations Framework Convention on Climate Change stating a global goal to keep the increase in global temperatures relative to pre-industrial levels to well below 2° Celsius while pursuing efforts to limit the increase to 1.5° Celsius.

A loss subject to tax rules that generally restrict its use against nonpassive income. Exceptions, carryforwards, and other limitations can apply.

Investing while delegating day-to-day decisions to an operator or manager. This ordinary meaning is separate from the IRS definition of a passive activity.

A lease in which rent includes a portion of tenant sales, often above a negotiated breakpoint, in addition to any base rent.

Longer-term financing typically used for a completed or stabilized property, in contrast with construction or bridge debt.

An environmental review using records, site observation, and interviews to identify potential contamination concerns. It generally does not include sampling.

A targeted investigation, often involving soil, groundwater, or other sampling, used to evaluate identified environmental concerns.

Occupied rentable units divided by total rentable units at a stated date, using a disclosed policy for offline, employee, or model units.

A collection of investments owned by one organization or individual, and managed as a collective whole with specific investment goals in mind.

Amount of assets in a portfolio specifically designated for a certain type of investment.

Investments included in a portfolio.

The person or entity responsible for making investment decisions of the portfolio to meet the specific investment objective or goal of the portfolio.

• An investment process which tilt a fund of portfolio toward a specific sector, company, or project based on specific values or norms-based criteria.
• A sustainable investment style in which the portfolio will be tilted toward sectors, companies, or projects with positive ESG characteristics.

a financial agreement where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer’s property at little to no cost

Equity with negotiated priority over common equity for specified payments or proceeds. It remains distinct from mortgage debt and may have contractual control rights.

A contractual distribution preference calculated on a defined capital balance before certain other distributions. It is not a guaranteed yield; accrual, compounding, and payment depend on the agreement.

A class of stock with a fixed dividend that has preference over a company’s common stock in the payment of dividends and the liquidation of assets. There are several kinds of preferred stock, among them adjustable-rate and convertible.

The amount by which a bond or stock sells above its par value.

A charge for repaying debt before the permitted date, determined by the loan’s formula or schedule.

Property purchase price or value divided by its number of units. Comparisons should consider unit mix, condition, location, and whether project costs are included.

The price per share of a stock divided by its book value (net worth) per share. For a stock portfolio, the ratio is the weighted average price-to-book ratio of the stocks it holds.

A stock’s price divided by its earnings per share, which indicates how much investors are paying for a company’s earning power.

A disclosure document for a private securities offering describing the investment, structure, risks, fees, conflicts, and other material terms.

A financial projection built from assumptions about revenue, expenses, financing, capital needs, and exit value. It is not the same as historical performance.

Allocation according to a specified proportion, such as ownership or capital contributed. The governing documents determine the relevant percentage.

An incentive share of investment profits allocated to the sponsor under the waterfall, potentially after investor return hurdles are satisfied.

A review of physical condition, systems, deferred maintenance, and anticipated capital needs within an agreed inspection scope.

Coverage for specified property losses, subject to policy limits, deductibles, exclusions, valuation methods, and claim conditions.

Day-to-day operation of real estate, including leasing, collections, maintenance, resident communication, vendor coordination, and reporting.

Compensation for day-to-day property management, often based on collected revenue, with minimums or other charges governed by the management agreement.

A revision to taxable assessed value under local rules. A purchase, improvement, or assessment cycle can affect future taxes.

Formal written offer to sell securities that sets forth the plan for proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. Prospectuses are also issued by mutual funds, containing information required by the SEC, such as history, background of managers, fund objectives and policies, financial statement, risks, services and fees.

A shareholder vote on matters that require shareholders’ approval.

A mutual fund share’s purchase price, including sales charges.

The contract governing a property sale, including price, deposits, diligence rights, representations, closing conditions, and remedies.

An eligible independent exchange facilitator used in many deferred 1031 exchanges to manage the exchange arrangement and limit the taxpayer’s access to sale proceeds.

An investment vehicle organized to invest in qualifying opportunity-zone property under federal tax rules. Eligibility and benefits depend on the applicable law and investment timing.

The breakdown of a portfolio’s assets based on quality rating of the investments.

The percentage of a fund’s movements that result from movements in the index ranging from 0 to 100. A fund with an R2 of 100 means that 100 percent of the fund’s movement can completely be explained by movements in the fund’s external index benchmark.

Evaluations of the credit quality of bonds usually made by independent rating services. Ratings generally measure the probability of timely repayment of principal and interest on debt securities.

A company that owns or finances real estate and meets requirements for REIT tax treatment. Publicly traded, nontraded, and private REITs differ in liquidity and disclosure.

Property owned by a lender or similar creditor after foreclosure or another transfer, rather than held by the original borrower.

An IRS classification involving qualifying real-property service tests. Rental losses are not automatically deductible against other income; material participation and other limitations still matter.

A restructuring of debt, equity, or ownership interests that changes how an investment is funded or held.

A downturn in economic activity, defined by many economists as at least two consecutive quarters of decline in a country’s gross domestic product.

Debt for which the lender can pursue specified borrower or guarantor assets beyond the pledged property, subject to the agreement and law.

Sale of mutual fund shares by a shareholder.

Replacing existing debt with a new loan, potentially changing the rate, term, leverage, reserves, or cash available to equity.

The risk that replacement financing is unavailable or insufficient at maturity because of rates, property performance, valuation, or lending conditions.

Refers to an arrangement under which a mutual fund will apply dividends or capital gains distributions for its shareholders toward the purchase of additional shares.

The amount of potential return from an investment as related to the amount of risk you are willing to accept.

A market-based instrument that is issued when one megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource.

The percentage change in rent over a stated period. Distinguish market asking rents, effective rents, renewal rents, and same-unit comparisons.

Additional rent associated with an upgrade, feature, location, or service relative to an appropriate baseline.

Laws limiting or governing rent levels, increases, or related tenant rights. Applicability differs across jurisdictions and property types.

A unit-by-unit or tenant-by-tenant schedule of leases, rent, deposits, occupancy, and other lease data as of a stated date.

Space used as the basis for rent calculations under a stated measurement method, potentially including an allocated share of common areas.

The reduction or expiration of leasing incentives as leases mature or market conditions improve, potentially increasing effective rental revenue.

The estimated current cost to replace a property’s improvements with comparable utility, with the inclusion of land and other costs specified.

Funds set aside for anticipated replacements and major repairs, often through lender-required deposits.

Changing a property’s competitive position through renovation, rebranding, management changes, or tenant and amenity improvements.

Properties serving consumer-facing businesses, including shopping centers and standalone stores, with performance influenced by location, tenant sales, and lease terms.

A distribution that repays an investor’s contributed capital under the governing documents. Contractual capital repayment and tax characterization are separate questions.

Income or profit earned on invested capital rather than repayment of the investment itself. The calculation basis must be specified.

A process for setting prices and lease terms using property performance, demand, and other information, subject to applicable legal requirements.

The estimated property’s value at the end of a forecast or holding period, before or after selling costs as stated.

The right to buy over a period of time. For example, this might be done by an institutional investor to avoid making a single substantial purchase that might drive up the market price, or by a retail investor who wants to reduce risk by dollar cost averaging.

The degree to which you can tolerate volatility in your investment values.

An evaluation of return relative to the risks taken, using a stated method rather than comparing headline returns alone.

A Regulation D exemption that prohibits general solicitation and permits accredited investors plus a limited number of qualifying sophisticated non-accredited investors, subject to disclosure and other conditions.

A Regulation D exemption permitting general solicitation when all purchasers are accredited investors and the issuer takes reasonable steps to verify their status, among other conditions.

A transaction in which an owner sells a property and simultaneously leases it back, converting owned real estate into a tenancy.

An amount charged for the sale of some fund shares, usually those sold by brokers or other sales professionals. By regulation, a mutual fund sales charge may not exceed 8.5 percent of an investment purchase. The charge may vary depending on the amount invested and the fund chosen. A sales charge or load is reflected in the asked or offering price. See loads.

A valuation method using comparable property sales, adjusted for material differences in property characteristics, conditions, and transaction terms.

Rental assistance under federal housing programs, including tenant-based vouchers and project-based assistance, each with distinct eligibility, payment, and compliance requirements.

A group of similar securities, such as equities in a specific industry.

Breakdown of securities in a portfolio by industry categories.

Another name for investments such as stocks or bonds. The name ‘securities’ comes from the documents that certify an investor’s ownership of particular stocks or bonds.

The federal agency created by the Securities and Exchange Act of 1934 that administers the laws governing the securities industry, including the registration and distribution of mutual fund shares.

Money or other permitted security held to cover specified tenant obligations. Handling, permitted deductions, and return deadlines depend on law and the lease.

An IRA allowing a broader range of permitted investments through its custodian. Prohibited-transaction rules and possible taxes on certain income still apply.

Real estate providing individually rented storage spaces, with performance driven by occupancy, pricing, operating costs, and local supply.

Debt with priority over specified subordinate financing in payment or collateral claims, subject to the legal structure and intercreditor agreements.

Housing oriented toward older adults, ranging from independent living to settings with care services. Operating models, licensing, and risks differ substantially.

Testing how investment results change when individual assumptions, such as exit cap rate, rent growth, or expenses, are varied.

A unit of ownership in an investment, such as a share of a stock or a mutual fund.

Fund assets included in a specific share class.

Classes represent ownership in the same fund but charge different fees. This can enable shareholders to choose the type of fee structure that best suits their particular needs.

A risk-adjusted measure that measures reward per unit of risk. The higher the sharpe ratio, the better. The numerator is the difference between the Fund’s annualized return and the annualized return of the risk-free instrument (T-Bills).

Asset purchased with an investment life of less than a year.

A property rented for brief stays, subject to local rules and potentially different tax, insurance, licensing, and management requirements.

A detached or attached single-family home held for rental income, individually owned or included in a larger portfolio.

The market capitalization of the stocks of companies with market values less than $3 billion.

A bond instrument where the proceeds will be exclusively applied to finance or refinance in part or in full new and/or existing eligible Social Projects.

A benchmark based on overnight borrowing secured by U.S. Treasury securities. Floating-rate loans may reference SOFR or a specified term or compounded variant.

Project costs outside direct construction, such as design, engineering, permits, legal work, insurance, and financing costs, depending on the budget convention.

A charge imposed for a specific purpose, such as public infrastructure or an association capital project, in addition to ordinary taxes or dues.

An entity formed for a defined asset or transaction, often with restrictions intended to separate its obligations from other businesses.

The party organizing and overseeing an investment, often responsible for acquisition, financing, execution, investor reporting, and disposition.

Reaching a sustainable level of occupancy and operating performance after lease-up, renovations, or disruption, under a specified underwriting or lender definition.

Broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks commonly known as the Standard & Poor’s 500 or S&P 500.

A statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution.

The supplementary document to a prospectus that contains more detailed information about a mutual fund; also known as ‘Part B’ of the prospectus.

A prepayment charge that declines on a stated schedule, such as a percentage of outstanding principal that reduces over successive periods.

A long-term, growth-oriented investment representing ownership in a company; also known as ‘equity.’

The owner of common or preferred stock of a corporation. Also called ‘shareholder.’

Evaluating performance under adverse assumptions such as lower rents, higher vacancy, increased expenses, or less favorable refinancing terms.

Housing oriented toward students, often with academic-year leasing, roommate arrangements, and bed-based pricing.

A smaller geographic or competitive segment within a larger market, defined by factors such as location, tenant demand, amenities, or property type.

An agreement addressing a lease’s priority to financing, specified tenant protections after foreclosure, and recognition of a successor landlord.

The document through which an investor applies to purchase an interest and makes specified representations, subject to the issuer’s acceptance.

Additional financing on a property already subject to an existing mortgage, permitted only under applicable loan and program requirements.

A professional measurement and depiction of land boundaries and specified property features, based on the survey’s scope and standards.

A nonprofit organization with a mission to develop sustainability-related accounting standards.

Bond instrument where the proceeds will be exclusively applied to finance or re-finance a combination of both Green and Social Projects.

Bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined Sustainability/ ESG objectives.

A United Nations Initiative for all countries to adopt 17 goals that address global challenges including poverty, inequality, climate change, environmental degradation, and peace and justice.

A forward-looking investment approach that aims to deliver long-term sustainable financial return in a fast changing world. It encompasses a wide ranging spectrum of approaches, the core of which starts with the incorporation of ESG information.

An ownership interest earned through work, expertise, or services rather than solely through cash contributions, as agreed among the parties.

An arrangement pooling investor capital under a sponsor to acquire or operate assets. Legal rights, fees, and distributions depend on the offering and governing documents.

A service option that allows investors to buy mutual fund shares on a regular schedule, usually through bank account deductions.

A framework through which companies can improve and increase the reporting of climate-related financial information.

The amount used for tax calculations relating to an asset or ownership interest. Property basis and a partner’s basis in an entity interest are distinct.

A qualifying transaction postponing recognition of some or all gain. Deferral is not the same as permanent tax exemption.

Tax-exempt income is income that is exempt from income taxes. A purchaser of state municipal bonds is exempt from federal taxation on the income earned from the bonds.

Direct co-ownership of undivided interests in real estate. Potential 1031 treatment depends on the arrangement’s facts and tax classification, not merely its TIC label.

An amount a landlord agrees to contribute toward qualifying tenant improvements, subject to lease conditions and reimbursement procedures.

Alterations made to leased space for a tenant’s use. The lease establishes who funds, owns, and restores the improvements.

The estimated value of an investment beyond the explicit forecast period. In property models it is often represented by a projected sale value.

• An investment process that focuses on themes or assets specifically related to topic selected based on specific values or norms-based criteria.
• A sustainable investment style that focuses on themes or assets specifically related to sustainability, such as renewable energy, water or healthcare.

The amount of time that you expect to stay invested in an asset or security.

A title insurer’s conditional commitment to issue a policy, identifying requirements, exceptions, and the proposed insured interest.

Insurance covering specified title defects or claims under the policy’s terms. Owner’s and lender’s policies protect different interests.

Ten largest holdings in a portfolio based on asset value.

The top 10 holdings ranked by market value in each position category (long and short). A long position is one in which an investor buys shares of stock and as an equity holder will profit if the price of the stock rises. With a short position an investor will sell shares of stock that they do not own but have borrowed. The investor in a short position will profit if the price of the stock falls.

Top five industries in a portfolio based on amount of invested assets.

Five assets in a portfolio that generated largest negative returns (losses).

Top five securities in a portfolio based on amount of invested assets.

Top five industries in a portfolio based on amount of invested assets.

The full defined investment budget, potentially including purchase or land cost, construction, fees, financing, contingencies, and reserves.

Accounts for all of the dividends and interest earned before deductions for fees and expenses, in addition to any changes in the value of the principal, including share price, assuming the funds’ dividends and capital gains are reinvested. Often, this percentage is presented in a specified period of time (one, five, ten years and/or life of fund). Also, a method of calculating an investment’s return that takes share price changes and dividends into account.

The active risk of the portfolio. It determines the annualized standard deviation of the excess returns between the portfolio and the benchmark.

The most recent 12 months of operating results, used to examine recurring performance and compare historical results with projections.

The most recent three months of operating results. Annualizing them can show recent momentum but may exaggerate seasonal or temporary changes.

An agent, usually a commercial bank, appointed to monitor records of stocks, bonds and shareholders. A transfer agent keeps a record of the name of each registered shareholder, his or her address, the number of shares owned, and sees that certificates presented for the transfer are properly canceled and new certificates are issued in the name of the new owner.

Negotiable short-term (one year or less) debt obligations issued by the U.S. government and backed by its full faith and credit.

Negotiable long-term (10 years or longer) debt obligations issued by the U.S. government and backed by its full faith and credit.

Negotiable medium-term (one year to 10 years) debt obligations issued by the U.S. government and backed by its full faith and credit.

Securities issued by the U.S. Treasury Department and backed by the U.S. government.

A lease generally allocating property taxes, insurance, and maintenance costs to the tenant in addition to rent. Structural and capital obligations still depend on the lease.

1. An organization or individual who has responsibility for one or more accounts. 2. An individual who, as part of a fund’s board of trustees, has ultimate responsibility for a fund’s activities.

The total cost of replacing a tenant, potentially including vacancy, make-ready work, marketing, commissions, and concessions.

Percentage of holdings in a mutual fund that are sold in a specified period.

Evaluating an investment’s income, costs, capital needs, financing, valuation, and risks to determine acceptable pricing and terms.

Strategic policy and advocacy initiative that aim to mobilize a global movement of sustainable companies and stakeholders in the areas of human rights, labor, environment and anti-corruption.

An international group of institutional investors delivering on a commitment to transition investment portfolios to net-zero GHG emissions by 2050.

An official network of investors that works to promote sustainable investment through the incorporation of environmental, social and governance factors.

An investment return calculated before the effects of debt financing, allowing comparison of underlying asset performance.

An increase in estimated investment value that has not yet been realized through a sale or other recognition event.

The investor capital balance not yet repaid under the governing agreement. It may differ from tax basis, capital accounts, or the original contribution.

Income potentially taxable to an otherwise tax-exempt investor, including an IRA, under unrelated-business rules. Certain debt-financed income can be included.

Space available for a tenant’s exclusive use under a defined measurement standard, generally excluding allocated shared areas included in rentable square feet.

A ratio utility billing system allocates eligible utility costs among residents using an approved method rather than individual meters, subject to leases and local law.

Rental income not earned because units or space are unoccupied, measured using a stated rent basis and period.

Vacant units or space divided by total inventory under a stated definition. It is the complement of physical occupancy when both use the same inventory.

An estimate of the value or worth of a company; the price investors assign to an individual stock.

Evaluating design or construction alternatives to improve cost and function while maintaining required performance, quality, and compliance.

A strategy whereby investors purchase equity securities that they believe are selling below estimated true value. The investor can profit by buying these securities then selling them once they appreciate to their real value.

Typically an overlooked or underpriced company that is growing at slower rates.

A strategy seeking higher property income or value through renovations, leasing, expense control, or operational improvements, with associated execution risk.

Value-style funds typically hold company stocks that are undervalued in the market. Fundamentally strong companies whose stocks are inexpensive but trending upward may also be selected for value funds.

Comparing actual results with budget or prior periods and investigating the reasons for differences.

The year a property was originally built, sometimes considered alongside renovation history and building-system replacements.

The amount and frequency with which an investment fluctuates in value.

A specified return or distribution threshold that changes the allocation of subsequent proceeds among investors and the sponsor.

Average remaining lease duration weighted by a specified measure, such as rent or area. The weighting method and treatment of options should be stated.

A Fund’s WAM calculates an average time to maturity of all the securities held in the portfolio, weighted by each security’s percentage of net assets. The calculation takes into account the final maturity for a fixed income security and the interest rate reset date for floating rate securities held in the portfolio. This is a way to measure a fund’s sensitivity to potential interest rate changes.

Housing serving working households often priced out of higher-rent options. Income bands and whether rents are restricted vary by program and market usage.

Resources available for near-term business needs. In accounting it is current assets minus current liabilities; property budgets may use the term for an operating cash reserve.

Most indexes are constructed by weighting the market capitalization of each stock on the index. In such an index, larger companies account for a greater portion of the index. An example is the S&P 500 Index.

A spreadsheet function calculating an annualized internal rate of return from cash flows with actual, potentially irregular dates. It is useful for real estate contributions and distributions.

A spreadsheet function calculating net present value from dated cash flows using a specified annual discount rate.

Annual percentage rate of return on capital. The dividend or interest paid by a company expressed as a percentage of the current price.

A contractual prepayment premium intended to compensate for lost interest economics, often linked to a reference yield and remaining payments. The loan formula controls.

Stabilized annual NOI divided by total project cost. It evaluates property income relative to cost before debt financing.

Concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date.

The average rate of return that will be earned on a bond if held to maturity.

Year-to-date return on an investment including appreciation and dividends or interest.

Year-to-date return on an investment including appreciation and dividends or interest, minus any applicable expenses or charges.

Year-to-date return on an investment including appreciation and dividends or interest.

A debt security that generally makes no periodic interest payments and is purchased at a discount to its maturity value. Tax treatment may recognize income before cash is received.

Local rules governing permitted land uses and development characteristics such as density, height, setbacks, and parking.

An authorized exception to a zoning requirement under local law. It differs from rezoning a property to another district.

A mutual fund fee, named for the SEC rule that permits it, used to pay for broker-dealer compensation and other distribution costs. If a fund has a 12b-1 fee, it will be disclosed in the fee table of the fund’s prospectus.

Represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund’s share price at the end of the 30-day period. The 30-day yield should be regarded as an estimate of investment income and may not equal the fund’s actual income distribution rate.

A security’s trading high point over the last 52-week period.

A security’s trading low point over the last 52-week period.

A qualifying exchange of business or investment real property that can defer gain recognition. Reinvesting proceeds alone does not qualify, and ordinary partnership interests are generally ineligible.

Replacement property in a typical deferred exchange must be received by the earlier of 180 days after transfer or the tax-return due date, including extensions, subject to applicable relief.

For a typical deferred exchange, replacement property must be properly identified within 45 days after transferring the relinquished property, subject to applicable relief provisions.