Global Definitions Database

Vacancy (Based on estimated rental value)

Estimated rental income of vacant space / (contractual rental income of occupied space + estimated rental income of vacant space). View full definition

Vacancy (Based on leasable floor space)

A measure of the level of vacant space, which is calculated based on net leasable floor space. View full definition

Vacancy Loss

Loss of potential rent revenue attributable to unoccupied space, expressed as a total dollar amount per year. View full definition

Valuation

1. The process of determining the worth of an asset or a fund. 2. The result of that process: the estimated worth or sales price of an asset or fund. View full definition

Costs in connection with the external (third party) appraisal of the real estate assets and liabilities owned by the vehicle. Appraisals may be performed routinely or ad-hoc which can be triggered by certain provisions in the vehicle agreement. View full definition

Valuation Policy

A legally binding policy that defines how, by whom and how frequently investments will be valued. View full definition

Valuation Risk

The risk that an asset is overvalued and is worth less than expected when it matures or is sold. View full definition

Value Creation

The performance of actions that increase the worth of goods, services, and/or a business. View full definition

Value-added (INREV Style)

A fund which may invest in any property type and deliver returns from a balance of income return and capital appreciation. The fund may allocate part of its investments in development. Typically it will also invest in forms of active management, such as active leasing risk, repositioning or redevelopment to generate returns through adding value to the property. The fund will use moderate leverage. View full definition

Value-added (RS Style)

An account that generally includes a mix of core investments and noncore investments that will have less stable income streams. The Account as a whole is likely to have moderate lease exposure and moderate leverage. As a result, such Accounts should achieve a significant portion of the return from appreciation/ depreciation and are expected to exhibit moderate volatility. View full definition

Value-Weighted Index

A type of market index with individual components, or securities, weighted according to their total market capitalization; components with larger market capitalization exert a greater impact on the index value while components with a smaller market capitalization carry less significance; also known as a “capitalization-weighted index”. View full definition

Variable Cost or Expense

A cost or an expense that rises or falls in direct proportion to production volume. View full definition

Variance

A measure of the spread between numbers in a data set; measures how far each number in the set is from the mean. View full definition

Vehicle

The overarching term for any kind of investment structure, including funds, joint ventures, club deals and separate or single accounts. View full definition

Vehicle administration costs

Costs related to bookkeeping activities either paid to a 3rd party service provider or the manager/advisor. View full definition

Vehicle Documentation

The key documents, including their annexes, establishing a contractual framework of how the Vehicle will operate and the significant legal rights and obligations of the parties entering those agreements related to the Vehicle. For example, these include funds, partnerships, joint ventures or trust agreements. View full definition

Vehicle formation costs

Also known as set-up costs, these charges are incurred at the launch of a vehicle, and do not relate to the portfolio acquisition and financing structure. These include organisational costs (typically legal & notary services) as well as syndication costs, various marketing costs, including printing / publication, and initial subscription fees. View full definition

Vehicle Formation Date

The date on which the Vehicle was legally established and became available for investors. View full definition

Vehicle Loan to Value (LTV)

Nominal value of debt, or book value, which includes third party facilities or credit lines (and any drawn equity bridge), over the GAV of the vehicle. View full definition

Vehicle Manager

See definition Investment Manager. View full definition

Vehicle Reporting Currency

This is a denomination in which a Vehicleprepares and presents its financial statements and other financial information. View full definition

Vehicle-level loan to cost

The consolidated total external amount of leverage at the vehicle level as a percentage of the (historical acquisition) cost of the vehicle. View full definition

Venture Capital

A form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. View full definition

Venture Capital Operating Company (VCOC)

A term used in the context of a fund that is relying on the operating company exception to holding plan assets under ERISA. View full definition

Vertically Integrated Manager

An investment manager that employs a full spectrum of professionals needed to buy, operate and develop properties. Often regionally-focused specialists with full development, leasing and sometimes property management capabilities. View full definition

Vintage Year

A vintage year of an investment vehicle may be determined by using the following two methods: 1. The year when the first committed capital agreement from outside investors is closed and legally binding. 2. The year of the investment vehicle's first drawdown or capital call from its investors. The user should specify which definition is being used and presented for investor reporting purposes. Reference: GIPS View full definition

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Due Diligence Questionnaire (DDQ)

Standard Data Delivery Sheet (SDDS)