Financial Metrics and Ratios
A measurement of leverage, calculated as a company's interest-bearing liabilities minus cash, divided by EBITDA.
What is Net debt-to-EBITDA?
A situation where the demand for housing exceeds the available supply.
What is Leasing Tension?
A bond that trades close to its par value when it was first issued, with a yield within ±0.5% of current market interest rates.
What is a Current coupon?
The mix of debt and equity that a company uses to finance its operations and growth.
What is Capital structure?
The rate at which the general level of prices for goods and services is rising, eroding purchasing power.
What is Inflation?
The return on equity for a project when it is financed with both debt and equity, taking into account the cost of debt financing.
What is Levered return?
The right to resume possession or ownership of a property after a period of time has elapsed or certain events have occurred.
What is Reversion?
The date at which the final repayment of a debt instrument is due.
What is Debt maturity?
An acquisition that increases the acquiring company's earnings per share (EPS).
What is Accretive acquisition?
Adjusting income payments by means of a price index to maintain the purchasing power after inflation.
What is Indexation?
The income generated from rental properties after deducting operating expenses.
What is Net Rental Income (NRI)?
A measure of growth in sales, adjusted for new or divested businesses, indicating current trading performance.
What is Like for like (LFL) growth?
A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, where one basis point is equivalent to 0.01%.
What are Basis points, otherwise known as bps or “bips”?
The use of borrowed funds to increase the potential return of an investment.
What is Leverage?
An attempt to reduce the effects of currency fluctuations on investment performance by setting up a related currency investment.
What is Currency hedging?
The annual dividend paid by the security divided by the original cost basis of the investment.
What is Yield on cost?
Assets that are either not essential or no longer used in a company's business operations, often sold to raise cash.
What are Non-core assets?
The difference between the yield of two different debt instruments with the same maturity but different credit ratings. In other words, the spread is the difference in returns due to different credit qualities.
What is a Credit Spread?
A payment made by a company to its shareholders before the annual financial statements are finalized, usually declared mid-year.
What is Interim dividend?
An investment fund that employs various strategies to earn active returns for its investors.
What is a Hedge Fund?
Earnings before interest, taxes, depreciation, and amortization; a measure of profitability that includes operational cash flow.
What is EBITDA?
A measure used in real estate to indicate the rate of return expected to be generated on a real estate investment property.
What is Cap Rate (Capitalization Rate)?
The yield paid by a fixed-income security; a fixed percentage of the par value.
What is a Coupon Rate?
The process of selling off a subsidiary or business interest.
What is Divestiture?
The interest rate that has been adjusted to remove the effects of inflation, reflecting the real cost of funds.
What is the Real Interest Rate?