Real Estate Reporting Glossary

Revenues earned or expenses incurred that have not yet been received or paid in cash, but are recorded in the accounting period to which they relate. Accrual accounting matches income and expenses to the period they occur, rather than when cash changes hands.

The net amount of cash moving into and out of a property, portfolio, or entity over a given period, typically categorized into operating, investing, and financing activities. Cash flow shows how much cash is actually available after covering operating expenses and debt service, distinct from accrual-based profit measures like NOI.

The process of combining the financial results of multiple legal entities, properties, or funds into a single set of financial statements, typically eliminating intercompany transactions and balances so the group is represented as one economic entity. Often required across multiple currencies in international real estate portfolios.

The complete record of all financial transactions for an entity, organized by account, that underpins a company's financial statements.

A financial report summarizing revenues, expenses, and net profit or loss over a specific period. In real estate, the income statement typically flows from gross rental income and other income, through operating expenses, to NOI and ultimately net income after financing costs and depreciation.

The process of identifying data points, transactions, or performance metrics that deviate significantly from expected patterns or historical norms, often used to flag data entry errors, anomalies, or areas requiring closer review before reporting.

An accounting report listing all general ledger account balances at a point in time, used to verify that total debits equal total credits before financial statements are prepared.

Net Operating Income divided by a property's current market value or purchase price, expressed as a percentage. Used to estimate an investor's potential return and to compare relative value across properties.

The annual pre-tax cash flow generated by a property divided by the total cash actually invested (equity), expressed as a percentage. Unlike cap rate, it accounts for financing/leverage.

Cash payments made to investors (limited partners or shareholders) from a fund's profits, refinancing proceeds, or asset sales, typically according to a predefined waterfall structure.

Net Operating Income divided by total debt service (principal and interest payments due). Lenders use DSCR to assess a property's ability to cover its debt obligations from operating income.

Gross potential rental income adjusted for vacancy and credit losses, plus other income such as parking or fees. Represents the actual income a property is expected to collect.

The annualized rate of return that makes the net present value of all cash flows from an investment equal to zero. Used to evaluate the profitability of real estate investments over their holding period, accounting for the timing of cash flows.

A property's total operating revenue minus operating expenses (property taxes, insurance, utilities, repairs & maintenance, management fees), excluding debt service, capital expenditures, depreciation, and income tax. The standard measure of a property's ability to generate income from operations.

A detailed listing of all tenants in a property or portfolio, typically including lease start and end dates, rented area, current rent, and other lease terms. Used as the source data for calculating metrics like WAULT and for tracking lease expiry and re-leasing risk.

The average remaining time on all leases in a property or portfolio, weighted by rental income or floor area, so larger leases have proportionally more influence on the figure. A key indicator of income stability and re-leasing risk.

The average rental income earned per occupied room per day, calculated as room revenue divided by the number of rooms sold. Used alongside occupancy and RevPAR to assess hotel performance.

A group of comparable properties, typically hotels, used as a benchmark to evaluate a property's relative performance on metrics like ADR, RevPAR, and occupancy.

The percentage of incremental revenue that converts into incremental profit (typically GOP) as revenue increases or decreases. Used to assess how efficiently a hotel or property converts revenue changes into bottom-line impact.

In hospitality, total revenue minus all operating expenses, excluding fixed costs like rent, insurance, property taxes, and depreciation. A core profitability metric used to benchmark hotel operational performance.

The percentage of available space — rooms, units, or square footage — that is currently leased or occupied, relative to the total available space.

A hospitality performance metric calculated by dividing total room revenue by the total number of available rooms (equivalently, ADR × Occupancy Rate). The standard measure of a hotel's revenue-generating performance.

The total value of a real estate portfolio's assets minus its liabilities. Used to measure the underlying worth of a fund or portfolio at a point in time, independent of market price.

The set of financial and operational indicators — such as IRR, NOI, cap rate, cash-on-cash return, and occupancy — used to evaluate how well a property, portfolio, or investment is meeting its return and operational objectives.

Loans, capital contributions, or funding arrangements between related legal entities within the same corporate or fund structure — for example, a holding company financing a property-owning subsidiary. Intercompany financing needs to be tracked and is typically eliminated during consolidation to avoid double-counting at the group level.