Hybrid debt

A mortgage position with equity-like collaboration features in both assets and the growth of the property at the phase of sale or refinance

Income capitalization value

The signal of market worth obtained for an income-creating piece of real estate by turning its guessed benefits into property worth through direct capitalization of expected income or by reducing the yearly cash flows for the holding period at a specified yield rate

Holding period

The total length of time an investor anticipates to possess a piece of property from purchase to sale

Highest and best use

The reasonably possible and legal use of vacated land or an improved structure that's literally possible, appropriately backed, financially possible and that results in the highest value

Implied cap rate

Net working earnings divided by the sum of a REIT's equity market capitalization and its overall pending debt