Glossary of Terms

C.A.M. Charges: 
   Common Area Maintenance.
   
Cap Rate:
   Rate of return on sales price: N.O.I. divided by sales price.
     
Debt Service:
   Mortgage payments.
     
Debt Coverage Ratio:
   N.O.I. divided by debt service
     
Estoppel Agreement:
   Tenant signs statement stating that no verbal agreements exist between tenant and landlord applying to lease agreement.
     
G.O.I.:
   Gross Operating Income:  S.G.I. less vacancy.
     
G.R.M.:
   Gross Rent Multiplier:  Sales price divided by S.G.I.
     
N.N.N. (Triple Net):
   Tenant pays taxes, insurance, maintenance and utilities for operating a property.
     
N.O.I.:
   Net Operating Income:  S.G.I. less vacancy and expenses.
     
Overage:
   Tenant pays agreed-to percent of gross sales volume over agreed-to base sales volume.
     
R.O.E.:
   Return On Equity:  Return on value of property. Less loan balances.
     
R.O.I:
   Return On Investment:  Rate of return on down payment (cash on cash).
     
S.G.I.:
   Scheduled Gross Income:  Income before vacancy and expenses.
     
Tax Stop:
   Tenant pays increase on real property taxes.
     
Cash Flow:
   NOI Subtract Debt Service

      

                      

                        

                          

                          

                      .