GLOSSARY

  • All
  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X
  • Y
  • Z

A

  • All-in Cost
    Represents the total amount of equity invested plus the total amount of debt-funded at closing, which equals the total acquisition costs for the real estate property and includes any additional capital used to fund transaction costs, expenses, escrows or reserves.
  • Alpha
    A measure of risk-adjusted return implying how much a fund/manager outperformed its benchmark, given its risk profile.
  • Annualized Return
    Calculated by annualizing cumulative return (i.e., adjusting it for a period of one year). Annualized return includes capital appreciation and assumes a reinvestment of dividends and distributions.
Represents the total amount of equity invested plus the total amount of debt-funded at closing, which equals the total acquisition costs for the real estate property and includes any additional capital used to fund transaction costs, expenses, escrows or reserves.
A measure of risk-adjusted return implying how much a fund/manager outperformed its benchmark, given its risk profile.
Calculated by annualizing cumulative return (i.e., adjusting it for a period of one year). Annualized return includes capital appreciation and assumes a reinvestment of dividends and distributions.

B

  • Basis Point
    One basis point is equal to 1/100th of 1%, or 0.01%.
  • Beta
    A measure of systematic risk (volatility), or the sensitivity of a fund to movements in a benchmark. A beta of 1 implies that you can expect the movement of a fund's return series to match that of the benchmark used to measure beta. A value of less than 1 implies that the fund is less volatile than the index.
  • Bloomberg Barclays U.S. Aggregate Bond Index
    Measures the performance of the U.S. investment grade bond market.
One basis point is equal to 1/100th of 1%, or 0.01%.
A measure of systematic risk (volatility), or the sensitivity of a fund to movements in a benchmark. A beta of 1 implies that you can expect the movement of a fund's return series to match that of the benchmark used to measure beta. A value of less than 1 implies that the fund is less volatile than the index.
Measures the performance of the U.S. investment grade bond market.

C

  • Cap Rate
    Represents the ratio between the contractual future twelve months of net operating income at acquisition date produced by the asset and the purchase price of the asset only.
  • Correlation
    A statistical measure of how two securities move in relation to each other. A correlation ranges from -1 to 1. A positive correlation of 1 implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. A negative correlation of -1 indicates that the securities will move in the opposite direction. If the correlation is 0, the movements of the securities are said to have no correlation; they are completely random.
  • Coupon
    The interest payment made on a debt security.
  • Cumulative Return
    The compound return of an investment. It includes capital appreciation and assumes a reinvestment of dividends and distributions.
  • Current/Remaining Value
    Fair value as determined by the General Partner which includes accrued interest, dividends and any warrants held by funds.
Represents the ratio between the contractual future twelve months of net operating income at acquisition date produced by the asset and the purchase price of the asset only.
A statistical measure of how two securities move in relation to each other. A correlation ranges from -1 to 1. A positive correlation of 1 implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. A negative correlation of -1 indicates that the securities will move in the opposite direction. If the correlation is 0, the movements of the securities are said to have no correlation; they are completely random.
The interest payment made on a debt security.
The compound return of an investment. It includes capital appreciation and assumes a reinvestment of dividends and distributions.
Fair value as determined by the General Partner which includes accrued interest, dividends and any warrants held by funds.

D

  • Debt security
    Any security that represents loaned money that must be repaid to the lender.
  • Dispersion
    Refers to the range of potential outcomes of investments based on historical volatility or returns.
  • Double-Net Roof & Structure Lease (“NN Roof & Structure”)
    Represents a lease in which the tenant is responsible for all obligations of every kind during the lease term with the expectation of structural maintenance and roof repair for which the landlord is responsible.
Any security that represents loaned money that must be repaid to the lender.
Refers to the range of potential outcomes of investments based on historical volatility or returns.
Represents a lease in which the tenant is responsible for all obligations of every kind during the lease term with the expectation of structural maintenance and roof repair for which the landlord is responsible.

F

  • First Lien Loans
    First Lien Loans are made through senior credit facilities (usually a term loan facility and a revolver) that have a first lien on the collateral. First Liens have priority over other liens, subject to a negotiated list of exceptions for other liens permitted under the credit facility.
First Lien Loans are made through senior credit facilities (usually a term loan facility and a revolver) that have a first lien on the collateral. First Liens have priority over other liens, subject to a negotiated list of exceptions for other liens permitted under the credit facility.

G

  • Gross IRR
    Gross IRR reflects return before deducting carried interest and expenses, including management fees.
Gross IRR reflects return before deducting carried interest and expenses, including management fees.

H

  • Holding Company (“HoldCo”) Notes
    Debt at the holding company level. A holding company sits on top of the operating subsidiaries. HoldCo Notes are structurally subordinated to any debt at the operating subsidiary level. Payments on HoldCo Notes are paid with dividends from the operating subsidiaries.
Debt at the holding company level. A holding company sits on top of the operating subsidiaries. HoldCo Notes are structurally subordinated to any debt at the operating subsidiary level. Payments on HoldCo Notes are paid with dividends from the operating subsidiaries.

I

  • Illiquidity Premium
    The illiquidity premium is generally understood to be the additional return received for the additional risk of tying up capital in a less liquid asset. Illiquidity becomes a particular concern when markets start to fall; investors may be forced to endure large price drops if they have difficulty selling the asset.
  • Incentive Fee
    Compensation paid to a fund manager who achieves above-average returns over a given period of time. The fee is usually compared to a benchmark. Sometimes called performance fee.
  • Invested Equity
    Represents the total amount of equity invested in the property, calculated as all-in cost minus debt funding, inclusive of any additional capital used to fund transaction costs, expenses, escrows or reserves.
The illiquidity premium is generally understood to be the additional return received for the additional risk of tying up capital in a less liquid asset. Illiquidity becomes a particular concern when markets start to fall; investors may be forced to endure large price drops if they have difficulty selling the asset.
Compensation paid to a fund manager who achieves above-average returns over a given period of time. The fee is usually compared to a benchmark. Sometimes called performance fee.
Represents the total amount of equity invested in the property, calculated as all-in cost minus debt funding, inclusive of any additional capital used to fund transaction costs, expenses, escrows or reserves.

L

  • Lease Term
    Represents remaining lease term at property acquisition date.
  • Leveraged Loans
    Leveraged Loans are syndicated credit facilities of non-investment grade credits.
  • LIBOR
    The London Interbank Offered Rate is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London wholesale money market (or interbank market).
  • Loan-to-Cost (“LTC”)
    Represents the ratio of total debt divided by the acquisition price, not including transaction costs, expenses, escrows and reserves.
Represents remaining lease term at property acquisition date.
Leveraged Loans are syndicated credit facilities of non-investment grade credits.
The London Interbank Offered Rate is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London wholesale money market (or interbank market).
Represents the ratio of total debt divided by the acquisition price, not including transaction costs, expenses, escrows and reserves.

M

  • MSA
    Represents Metropolitan Statistical Area is a geographical region with a relatively high population density of its core and close economic ties throughout the area.
Represents Metropolitan Statistical Area is a geographical region with a relatively high population density of its core and close economic ties throughout the area.

N

  • NCREIF Fund Index – Open End Diversified Core Equity (NFI-ODCE)
    An index of investment returns reporting on both a historical and current basis the results of 36 open-end commingled funds pursuing a core investment strategy, some of which have performance histories dating back to the 1970s. The NFI-ODCE Index is capitalization-weighted and is reported gross of fees. Measurement is time-weighted.
  • Net IRR
    Notes with PIK ("Pay-in-Kind")
  • Net Operating Income (“NOI”)
    Represents net property-level income prior to debt service. NOI is calculated by subtracting all operating and maintenance expenses from contractual rent. NOI excludes depreciation expense and capital expenditures. For a NNN lease, NOI is equivalent to contractual rent.
An index of investment returns reporting on both a historical and current basis the results of 36 open-end commingled funds pursuing a core investment strategy, some of which have performance histories dating back to the 1970s. The NFI-ODCE Index is capitalization-weighted and is reported gross of fees. Measurement is time-weighted.
Notes with PIK ("Pay-in-Kind")
Represents net property-level income prior to debt service. NOI is calculated by subtracting all operating and maintenance expenses from contractual rent. NOI excludes depreciation expense and capital expenditures. For a NNN lease, NOI is equivalent to contractual rent.

P

  • Purchase Price
    Represents the total amount invested in the property including the debt funded at closing, which equals the nominal acquisition cost for the property excluding any additional capital used to fund trans-action costs, expense, escrows or reserves.
Represents the total amount invested in the property including the debt funded at closing, which equals the nominal acquisition cost for the property excluding any additional capital used to fund trans-action costs, expense, escrows or reserves.

Q

  • Quarterly Current Income Distribution Rate
    Annualized quarterly cash distribution to investors as a percentage of average capital contributed by investors.    
Annualized quarterly cash distribution to investors as a percentage of average capital contributed by investors.    

R

  • Realized Value
    Realized value includes sales proceeds, fees and interest received from investments.
  • Realized Value
    Realized value includes sales proceeds, fees and interest received from investments, accrued interest and dividends receivable and amortization of original issue discount.
  • Rental Increases or Rent Growth
    Represents average annual contractual rent increases over the lease term, excluding any option periods.
Realized value includes sales proceeds, fees and interest received from investments.
Realized value includes sales proceeds, fees and interest received from investments, accrued interest and dividends receivable and amortization of original issue discount.
Represents average annual contractual rent increases over the lease term, excluding any option periods.

S

  • S&P 500
    An index based on market cap of the 500 largest companies having stock listed on the New York Stock Exchange (NYSE) or NASDAQ.
  • Second Lien Loans
    Senior secured credit facilities that have a second priority lien on the assets that secure the first lien facilities.
  • Senior Notes
    Senior Notes are bonds that are contractually senior to Senior Subordinated Notes and any other junior debt.
  • Senior Subordinated Notes
    High yield bonds that are contractually subordinated to any senior debt.
  • Senior Unsecured Notes
    Senior Unsecured Notes are Senior Notes that are not backed by collateral.
  • Sharpe Ratio
    Measures risk-adjusted returns by calculating the excess return (above the risk free rate) per unit of risk (standard deviation). The higher the ration, the better the risk-adjusted returns. The average three-month U.S. Treasury T-bill auction was used as the risk free rate in this material.
  • Standard Deviation
    Measures the average deviations of return series from its meaning, and is often used as a measure of volatility/risk. A large standard deviation implies that there have been large swings in the return series of the manager.
An index based on market cap of the 500 largest companies having stock listed on the New York Stock Exchange (NYSE) or NASDAQ.
Senior secured credit facilities that have a second priority lien on the assets that secure the first lien facilities.
Senior Notes are bonds that are contractually senior to Senior Subordinated Notes and any other junior debt.
High yield bonds that are contractually subordinated to any senior debt.
Senior Unsecured Notes are Senior Notes that are not backed by collateral.
Measures risk-adjusted returns by calculating the excess return (above the risk free rate) per unit of risk (standard deviation). The higher the ration, the better the risk-adjusted returns. The average three-month U.S. Treasury T-bill auction was used as the risk free rate in this material.
Measures the average deviations of return series from its meaning, and is often used as a measure of volatility/risk. A large standard deviation implies that there have been large swings in the return series of the manager.

T

  • Triple-Net Lease (“NNN Lease”)
    Represents a lease in which the tenant is responsible for all maintenance and capital expenditures and all other obligations of every kind during the lease term.
Represents a lease in which the tenant is responsible for all maintenance and capital expenditures and all other obligations of every kind during the lease term.

W

  • Weighted Average Current Yield
    The weighted average cash coupon of the portfolio of investments, using as the weighting factor the net amount invested in the debt instrument for each of the investments.
  • Weighted Average Yield
    The weighted average yield to maturity of the portfolio of investments, using as the weighting factor the net amount invested in the debt instrument for each of the investments.
  • Weighted Average Yield to Worst
    The weighted average yield to worst of the portfolio of investments, using as the weighting factor the net amount invested in the debt instrument for each of the investments.
The weighted average cash coupon of the portfolio of investments, using as the weighting factor the net amount invested in the debt instrument for each of the investments.
The weighted average yield to maturity of the portfolio of investments, using as the weighting factor the net amount invested in the debt instrument for each of the investments.
The weighted average yield to worst of the portfolio of investments, using as the weighting factor the net amount invested in the debt instrument for each of the investments.

Y

  • Yield to Worst
    The lowest potential yield that can be received without the issuer defaulting. The yield to worst is calculated by making worst-case scenario assumptions on the issue by calculating the returns that would be received if certain provisions, including for example prepayment provisions, are used by the issuer. This metric is used to evaluate the worst-case scenario for yield to help investors manage risks and ensure that specific income requirements will still be met even in the worst scenarios.
The lowest potential yield that can be received without the issuer defaulting. The yield to worst is calculated by making worst-case scenario assumptions on the issue by calculating the returns that would be received if certain provisions, including for example prepayment provisions, are used by the issuer. This metric is used to evaluate the worst-case scenario for yield to help investors manage risks and ensure that specific income requirements will still be met even in the worst scenarios.