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1/a_{n}
Periodic Repayment

The direct reduction loan factor for a loan, given the interest rate and amortization term

The direct reduction loan factor for a loan, given the interest rate and amortization term.

The direct reduction loan factor for a loan, given the interest rate and amortization term.

The direct reduction loan factor for a loan, given the interest rate and amortization term.
1/a_{n}
Periodic Repayment

1/S^{n
}
Present Worth of $1

A compound interest factor that indicates how much $1 due in the future is worth today.

A compound interest factor that indicates how much $1 due in the future is worth today.
1/Sn
Present Worth of $1

1/S_{n}
Sinking Fund Factor

The Compound interest factor that indicates the amount per period that will grow, with compound interest, to $1.

The Compound interest factor that indicates the amount per period that will grow, with compound interest, to $1.
1/S_{n
}Sinking Fund Factor


Total guest room revenue divided by the number of occupied room nights for a specific period

Total guest room revenue divided by the number of occupied room nights for a specific period
ADR
Average Daily Rate

a_{n}
Present Worth of $1 Per Period

A compound interest factor that indicates how much $1 paid periodically is worth today.

A compound interest factor that indicates how much $1 paid periodically is worth today.
a_{n}
Present Worth of $1 Per Period

DCF
Discounted Cash Flow Method

The procedure in which a discount rate is applied to a set of projected income streams and a reversion.

The procedure in which a discount rate is applied to a set of projected income streams and a reversion.
DCF
Discounted Cash Flow Method

EGI
Effective Gross Income

The anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses.

The anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses.
EGI
Effective Gross Income


The effective tax rate relates tax expense to before–tax income. A reduction in the effective tax rate from a onetime source (such as an investment tax credit from a major plant expansion) causes overstated earnings from the point of view of the investment analyst.

The effective tax rate relates tax expense to before–tax income. A reduction in the effective tax rate from a onetime source (such as an investment tax credit from a major plant expansion) causes overstated earnings from the point of view of the investment analyst.

S^{n
}
Future Worth of $1

The compound interest factor that indicates the amount to which $1 will grow with compound interest at a specified rate for a specified number of periods.

The compound interest factor that indicates the amount to which $1 will grow with compound interest at a specified rate for a specified number of periods.
S^{n}
Future Worth of $1

S_{n}
Future Worth of $1 Per Period

The compound interest factor that indicates the amount to which $1 per period will grow with compound interest at a specified rate for a specified number of periods.

The compound interest factor that indicates the amount to which $1 per period will grow with compound interest at a specified rate for a specified number of periods.
S_{n}
Future Worth of $1 Per Period

GIM
Gross Income Multiplier

The relationship between sales price (or value) and gross income, expressed as a factor.

The relationship between sales price (or value) and gross income, expressed as a factor.
GIM
Gross Income Multiplier

GRM
Gross Rent Multiplier

The relationship between sales price (or value) and gross rent, expressed as a factor.

The relationship between sales price (or value) and gross rent, expressed as a factor.
GRM
Gross Rent Multiplier

GRIM
Gross Room Income Multiplier

The relationship or ratio between the sale price of a property and its gross rental income.

The relationship or ratio between the sale price of a property and its gross rental income.
GRIM
Gross Room Income Multiplier

GRRM
Gross Room Rent Multiplier



The price of money; the rate of return or yield rate on debt capital.

The price of money; the rate of return or yield rate on debt capital.
i
Interest Rate

IRR
Internal Rate of Return

The annualized rate of return on invested capital which is generated or is capable of being generated within an investment over a period of ownership.

The annualized rate of return on invested capital which is generated or is capable of being generated within an investment over a period of ownership.
IRR
Internal Rate of Return




The capitalization ratio for debt; the ratio of annual debt service to the principle amount of the mortgage loan.

The capitalization ratio for debt; the ratio of annual debt service to the principle amount of the mortgage loan.
R_{m}
Mortgage Constant

NIBR (NOI)
Net Income Before Recapture

Annual net income remaining after deducting all operating expenses including property taxes but before deducting financial charges such as recapture and debt service; also known as net operating income.

Annual net income remaining after deducting all operating expenses including property taxes but before deducting financial charges such as recapture and debt service; also known as net operating income.
NIBR (NOI)
Net Income Before Recapture

NIBR&T
Net Income Before Recapture and Taxes

Annual net income remaining after deducting all operating expenses but before deducting property taxes and financial charges such as recapture and debt service.

Annual net income remaining after deducting all operating expenses but before deducting property taxes and financial charges such as recapture and debt service.
NIBR&T
Net Income Before Recapture and Taxes


The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income, but before mortgage debt service and book depreciation are deducted.

The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income, but before mortgage debt service and book depreciation are deducted.
NOI
Net Operating Income

R_{o}
Operating Expense Ratio

An income ratio for a total real property interest that reflects the relationship between a single year's net operating income expectancy and the total property price or value.

An income ratio for a total real property interest that reflects the relationship between a single year's net operating income expectancy and the total property price or value.
R_{o}
Operating Expense Ratio

PGI
Potential Gross Income

The total income attributable to real property at full occupancy before vacancy and operating expenses are deducted.

The total income attributable to real property at full occupancy before vacancy and operating expenses are deducted.
PGI
Potential Gross Income


The direct reduction loan factor for a loan, given the interest rate and amortization term.

The direct reduction loan factor for a loan, given the interest rate and amortization term.
PR
Periodic Repayment


Any rate used to convert income into an indicator of value; a ratio that expresses a relationship between income and value.

Any rate used to convert income into an indicator of value; a ratio that expresses a relationship between income and value.
R
Capitalization Rate

R_{E}
Equity Capitalization Rate

A rate that reflects the relationship between the equity dividend and the equity investment (i.e., a single year’s net income before recapture less debt service divided by the equity investment); a rate used to convert the equity dividend into an indicator of equity value; also known as the equity dividend rate, the cash on cash rate or the cash flow rate.

A rate that reflects the relationship between the equity dividend and the equity investment (i.e., a single year’s net income before recapture less debt service divided by the equity investment); a rate used to convert the equity dividend into an indicator of equity value; also known as the equity dividend rate, the cash on cash rate or the cash flow rate.
R_{E}
Equity Capitalization Rate

R_{m}
Mortgage Constant or Mortgage Rate
The capitalization rate for debt; the ratio of the annual debt service to the principal amount of the mortgage loan; the total annual amount required to pay off an amortizing loan with level monthly payments, expressed as a percentage of the original loan amount.

The capitalization rate for debt; the ratio of the annual debt service to the principal amount of the mortgage loan; the total annual amount required to pay off an amortizing loan with level monthly payments, expressed as a percentage of the original loan amount.
R_{m}
Mortgage Constant or Mortgage Rate

Rn
Terminal Capitalization Rate
Same as above


An income rate for a total real property interest that reflects a single year's net operating income expectancy and the total property value.

An income rate for a total real property interest that reflects a single year's net operating income expectancy and the total property value.
R_{o}
Overall Rate

REVPAR
Revenue Per Available Room (Hotels & Motels)

Percentage of occupancy times the average room rent.

Percentage of occupancy times the average room rent.
REVPAR
Revenue Per Available Room (Hotels & Motels)

V&C
Vacancy and Collection Loss

An allowance for reduction in potential income attributable to vacancies, tenant roll over, and non payment of rent.

An allowance for reduction in potential income attributable to vacancies, tenant roll over, and non payment of rent.
V&C
Vacancy and Collection Loss


A rate of return on capital, usually expressed as a compound annual percentage rate. Yield rates include the interest rate, discount rate, internal rate of return, overall yield rate and equity yield rate.

A rate of return on capital, usually expressed as a compound annual percentage rate. Yield rates include the interest rate, discount rate, internal rate of return, overall yield rate and equity yield rate.
Y_{o}
Yield Rate


A rate of return on equity capital as distinguished from the rate of return on debt capital.

A rate of return on equity capital as distinguished from the rate of return on debt capital.
Y_{e}
Equity Yield Rate

Y_{m}
Mortgage Yield Rate
Same as above

