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Cap Rate:
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Rate of return on sales price: N.O.I. divided by sales price. |
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Debt Coverage Ratio:
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N.O.I. divided by debt service |
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Estoppel Agreement:
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Tenant signs statement stating that no verbal agreements exist between tenant and landlord applying to lease agreement. |
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G.O.I.:
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Gross Operating Income: S.G.I. less vacancy. |
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G.R.M.:
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Gross Rent Multiplier: Sales price divided by S.G.I. |
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N.N.N. (Triple Net):
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Tenant pays taxes, insurance, maintenance and utilities for operating a property. |
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N.O.I.:
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Net Operating Income: S.G.I. less vacancy and expenses. |
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Overage:
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Tenant pays agreed-to percent of gross sales volume over agreed-to base sales volume. |
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R.O.E.:
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Return On Equity: Return on value of property. Less loan balances. |
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R.O.I:
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Return On Investment: Rate of return on down payment (cash on cash). |
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S.G.I.:
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Scheduled Gross Income: Income before vacancy and expenses. |
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Tax Stop:
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Tenant pays increase on real property taxes. |
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Cash Flow:
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NOI Subtract Debt Service |
