Global Definitions Database
Access, learn and discover all terms related to the non-listed real estate sector.
H
Haircut
The difference between the market value of an asset used as loan collateral and the value ascribed to that asset when used as collateral for that loan (i.e., an ascribed (nominal) reduction to the value of that asset, when it is used as collateral).
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Heat Map
A real estate investment analysis tool that uses visual cues in addition to numerical data to distinguish different locations based on performance.
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Hedged %
The percentage of floating rate debt that has been transformed into fixed rate debt through interest rate swaps or other types of derivatives.
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Hedging Arrangement/Agreement
Any master agreement, confirmation, transaction, schedule or other agreement (in agreed form) entered into or to be entered into by a Borrowerfor the purpose of hedging interest payable under this Agreement.
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hedging instruments
A financial instrument whose cash flows should offset changes in the cash flows of a designated hedged item (asset, liability, or investment).
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High Quality Liquid Assets (HQLA)
The assets that a bank must hold to satisfy its Liquidity Coverage Ratio (LCR) obligations.
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High-rise Elevator Apartments
Buildings that are four stories or more in height.
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High-Yield Investment
Primarily fixed-income instruments that carry higher risk and return (or yield).
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Highest and Best Use
The use of an asset by market participants that would maximize the value of the asset or group of assets within which the asset would be used. Highest and best use is determined based on the use of the asset by market participants, even if the intended use of the asset by the reporting entity is different.
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Historical Interest Cover Ratio (Historical ICR)
Interest cover covenant included as a financial covenant and that covenant is to be tested on a historical basis. The definition sets out how Historical Interest Cover is calculated and certain adjustments that are commonly made in calculating both finance costs and passing rental received by the borrowers. If the Company fails to calculate this, the Agent may do so.
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Hold Period
The actual or expected period of time between the purchase and sale of an investment.
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Hold-Over Tenant
A tenant retaining possession of the leased premises after the expiration of a lease.
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Holding Company
A holding company's primary purpose is investing in real estate or controlling other companies, assets or entities. For example, holding companies can hold property or ownership interests in loan portfolios, partnerships, and joint ventures.
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Homogenous or Homogeneous
Similar or uniform characteristics
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Household
A housing unit or residence at a given location that is occupied by one or more persons (that is, a social unit comprised of one or more individuals living together in the same dwelling or place).
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Household Population
The total number of households in a given geographic market or submarket as defined by specific demographic and socioeconomic characteristics.
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Huff’s Law of Shopper Attraction
Building upon the gravitational model theorized by Reilly’s Law of Retail Gravitation, a model that delineates trading areas on the basis of the product assortment carried at various shopping locations, travel times from the shopper's home to alternative locations, and the sensitivity of the kind of shopping to travel time; to account for differences in the attractiveness of a store relative to other stores, a measure of store utility such as sales volume, number of products in inventory, square footage of sales floor, store parcel size, or gross leasable area (GLA) is used in conjunction with the distance measure; potential store locations can also be input into the model to determine new sales potential as well as the probabilities of consumers patronizing a new store instead of other stores.
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Hurdle Rate
The minimum rate of return, as defined in the vehicle documentation, that has to be achieved before the investment manager can receive a performance fee or carried interest.
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HVAC
Heating, Ventilation, Air Conditioning
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