Financing expenses refer to the costs associated with borrowing funds to acquire real estate assets, including interest on loans and ground rent. It is distinct from operating expenses, which are related to the day-to-day operations of the property.
Ground rent is the regular payment made by a lessee to the lessor for the lease of land, usually on a long-term lease agreement, allowing the lessee to utilize the land for specified purposes while retaining ownership rights with the lessor.
