A stock of land held with the intent for future development or until such a time as it is profitable to sell.

The process of altering the use of land by subdivision, erection of buildings or in any number of ways to make an area of land reach its highest potential and best use.

The cost of improvements to property leased for a period of years, often paid for by the tenant.

The value of the lessee’s interest. Where the rent is paid is lower than the market rent, the capital value of the lessee’s interest is the Present Value of the profit rent for the unexpired lease term or until the next review.

The occupier who gains the right of possession and use of a property from the landlord, the Lessor, under the terms of a lease.

The owner of the property who gives the right of possession and use of a property to a tenant, the Lessee under the terms of a lease

Fees paid for services in supervising the letting or re-letting of a property. These could be paid directly to the fund manager or paid to third party leasing agents who are engaged to provide these services.

The use of debt to finance an asset and the measure of indebtedness. It is typically expressed as a ratio of debt as a percentage of property value. See also Loan to Value ratio.

A technique that enables a comparative cost assessment to be made for various investment alternatives, over a specified period of time, taking into account both initial capital costs and future estimated cost. The objective is to identify the most economical choice.

Assets which can be easily sold. An investor should be able to sell a liquid asset quickly with little impact on the price.

The ability of a fund to easily convert assets into cash.

The amount of the drawn loan divided by the value of the asset. At a fund level, it is the total drawn debt expressed as a percentage of the total assets of the fund. See also Leverage / Gearing.