Glossary Flashcards
Annualised rental income
The notional contracted headline rental value on an annualised basis,
ignoring any rent free period.
Estimated cost of completion
Costs still to be expended on a development or redevelopment to practical completion (not to complete lettings), including attributable interest.
Equivalent Yield
The internal rate of return from an investment property, based on the value of the property assuming the current passing rent reverts to ERV and assuming the property becomes fully occupied over time.
True equivalent yield assumes rent is received quarterly in advance.
(ERV)
Estimated Rental Value
The estimated annual market rental value of lettable space as determined biannually by the Company’s valuers. This will normally be different from the rent being paid.
Gearing
Net borrowings
divided by total shareholders’ equity
excluding
intangible assets
+ deferred tax provisions.
Investment property
Completed land and buildings held for rental income return and for capital appreciation.
Net equivalent yield
Net equivalent yield assuming rent is received quarterly in advance.
Passing rent
The annual cash rental income currently receivable on a property as at the balance sheet date (which may be more or less than the ERV).
Pre-let
A lease signed with an occupier prior to completion of a development.
Topped up net initial yield
Yield but using ARI (notional) rather than Passing Rent
“Net initial yield adjusted to include notional rent in respect of let properties which are subject to a rent free period at the valuation date. This is in accordance with EPRA’s Best Practices Recommendations.”
Total Property Return (TPR)
So its the same thing as ROIC and is a measure of profitability
A measure of the ungeared return for the portfolio and is calculated as the total realised and unrealised property gain or loss plus net rental income, expensed as a percentage of capital employed.
Trading property
Planning to sell,
LTV
Loan to Asset Value
Net borrowings
divided by the
Carrying value of total property assets (investment, owner occupied and trading properties)
To be Wall Crossed means
to sign a non-disclosure agreement so that you can be privy to non-public information.
What was that classic Compliance Example?
The Greenlight - Osborne (Corporate Broker) mistake. only ten millions dollar fine or so
