Accrued depreciation, also known as accumulated depreciation, refers to the total amount of depreciation expense that has been recorded against a company's assets up to a specified point in time.
The Age-Life Method of Depreciation is a technique that estimates all forms of depreciation sustained by an asset, based on the effective age of the property or component, divided by the total economic life of the property or component.
Capital refers to the financial assets or their financial value, as well as tangible factors of production used to create value. It is a significant part of the assets owned by an entity and is used to fund long-term operations and investments.
Capital Expenditure (CapEx) refers to the funds used by an organization to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. These expenditures are critical for the long-term growth and operational efficiency of an organization and are generally depreciated over their useful life.
In finance and real estate, capitalization is the process of deriving a present value for future income through a capitalization rate. In accounting, it involves setting up an asset on financial records to be depreciated over its useful life rather than expensed immediately.
Capitalizing in real estate is the process of estimating the present value of an income stream, setting up the cost of an asset on financial records, or supplying a business with capital.
Depreciation (Accounting) refers to the method of allocating the cost of a tangible asset over its useful life. It is an accounting technique used to account for the gradual wear and tear, aging, or decrease in the utility of an asset.
Depreciation methods are accounting techniques used to allocate the cost of an asset over its useful life. These methods help businesses recognize the wearing out, aging, or decrease in value of an asset.
Founded in 1994, the European Real Estate Society (ERES) fosters a structured and permanent network that facilitates collaboration between real estate academics and professionals throughout Europe.
FF&E stands for Furniture, Fixtures, and Equipment, encompassing all movable property that is used in business operations and can include everything from chairs and desks to lighting and cabinetry.
The act of placing funds or assets in the control of a third party, often by court order, until specific conditions are met or legal matters are resolved.
An Inter Vivos Trust is a legal entity created during an individual’s lifetime to manage and protect assets for the benefit of the trust’s beneficiaries. It is also known as a living trust.
The Investment Life Cycle refers to the entire process an investment goes through from its initial acquisition to its final disposal or sale. Understanding this cycle helps stakeholders make informed decisions regarding entry and exit points to maximize returns.
A real estate portfolio is a collection of investment properties owned by an individual or an entity, designed to generate income and appreciate in value over time. A diversified portfolio balances geographic and property-type risks to achieve optimal returns.
Portfolio value refers to the aggregate value of a real estate portfolio, potentially exceeding the summed individual values of its constituent assets due to operational efficiencies, synergies, or collective appeal.
A receiver is an individual or entity appointed by a court to manage, oversee, and maintain a property that is involved in ongoing litigation to ensure that the property is preserved and managed properly.
Replacement reserve is a specific fund set aside from the net operating income to cover the eventual wear and tear of short-lived assets, such as carpeting, appliances, and other items that have a defined useful life.
Reserves in real estate refer to amounts of money set aside to cover potential economic setbacks or to replace worn-out assets in property management and development.
Salvage value is the estimated value an asset will have at the end of its useful life. It is an important concept in accounting and real estate for calculating depreciation.
A Securitized Investment Vehicle (SIV) is a type of structured investment, typically in the form of an entity established to purchase and manage a pool of assets using various types of funding, including short-term commercial paper and medium-term notes.
Shares of Beneficial Interest represent a fractional ownership interest in the assets of a trust or other fiduciary arrangement, entitling the shareholder to a proportionate share of the earnings and profits.
A write-off is an accounting action where an asset's diminished value is removed from the financial books, reflecting that it is no longer expected to generate economic benefit.
