A 1031 Exchange, also known as a Like-Kind Exchange, is a provision in the U.S. tax code that allows real estate investors to defer paying capital gains taxes on the sale of an investment property, provided they reinvest the proceeds into a similar property.

This term refers to a computation made by analysts and investors to measure a real estate company's recurring/normalized FFO after deducting capital improvement funding.

Alpha and Beta are two metrics that help investors evaluate portfolio performance and manage risk. Alpha measures an investment’s excess return relative to a benchmark, while Beta gauges its sensitivity to market movements.

Building performance standards (BPS) are regulatory policies aimed at improving the energy efficiency of and reducing greenhouse gas (GHG) emissions of buildings.

The capitalization rate (or "cap" rate) for a property is determined by dividing the property's net operating income by its purchase price. Generally, high cap rates indicate higher returns and greater perceived risk.

Carbon accounting is the process of measuring and tracking an organization's greenhouse gas (GHG) emissions. Carbon accounting provides a structured approach for organizations, especially in industries like real estate, to monitor, report, and manage their environmental impact.

Cash (or funds) available for distribution (CAD or FAD) is a measure of a REIT's ability to generate cash and to distribute dividends to its shareholders. CAD or FAD is generally calculated by subtracting from AFFO major non-cash items. There is no standardized definition of CAD or FAD; therefore, financial statement users should understand how the measure is defined by the company.

Climate risks are threats posed by climate change, and they fall into two main categories: physical risks and transitional risks.

Commercial Mortgage-Backed Securities (CMBS) are a type of fixed-income investment, enabling investors to buy into pools of commercial mortgages.

Commercial real estate (CRE) represents a broad range of properties that are used for business purposes to generate revenue.

The cost of capital represents the minimum return that a company must earn on its investments to justify the expenditure.

Debt-to-equity ratio measures the proportion of debt a company uses relative to its equity to finance its operations and growth.

The portion of a company’s profits paid to shareholders, typically expressed as a fixed amount per share. It represents the actual cash or stock payment received by each shareholder for each share owned during a dividend distribution.

A financial ratio that shows how much a company pays in dividends each year relative to its stock price. Expressed as a percentage, it’s calculated by dividing the annual dividend per share by the stock’s current market price. It indicates income return on an investment.

A downREIT is structured much like an UPREIT, but the REIT owns and operates properties other than its interest in a controlled partnership that owns and operates separate properties.

Earnings Before Interest, Taxes, Depreciation and Amortization.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate EBITDAre is calculated as follows: GAAP net income, plus interest expense, income tax expense and depreciation and amortization.

Elective stock dividends are dividends comprised of a combination of cash and stock. Under IRS Revenue Procedure 2008-68, so long as a REIT provides its shareholders with a choice between cash or stock (and so long as at least 10 percent of the total dividend is available in cash), the entire dividend distribution is treated as a distribution of cash for purposes of the tax rules to qualify as a REIT.

Energy use intensity (EUI) quantifies the energy usage of a building relative to its size, providing a snapshot of the building's energy efficiency.

There are a series of ratings that provide standardized assessment of a building’s environmental performance, measuring factors like energy efficiency, water use, waste reduction, and carbon footprint. These ratings guide investors, developers, and tenants in choosing eco-friendly properties that meet sustainability goals and regulatory standards.

Equity market capitalization is the total market value of a company's outstanding shares of stock. It is calculated by multiplying the current market price of one share by the total number of outstanding shares.

Own or operate income-producing real estate. The market and Nareit often refer to equity REITs simply as REITs.

A date that determines if you are owed a dividend. If you held shares of a stock before the ex-dividend date, you get the dividend. If you purchase shares of a stock on or after its ex-dividend date, you will not receive the next dividend payment.

A U.S. tax law requiring foreign persons to pay tax on the sale or disposition of U.S. real property interests. Buyers must withhold a portion of the sale price to ensure tax compliance by foreign sellers.

The most commonly accepted and reported measure of REIT operating performance. Equal to a REIT's net income, excluding depreciation and amortization of real estate, gains or losses from the sale of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

A green lease is a rental agreement that incorporates specific clauses promoting sustainable practices such as energy efficiency, waste reduction, and environmental responsibility.

The market value of all outstanding common stock of a company plus the value of all UPREIT partnership units as if they were converted into the REIT's stock. It excludes convertible preferred stock, convertible debentures and warrants even though these securities have similar conversion features.

Leverage refers to the use of borrowed capital or debt to increase the potential return on investment. In finance and real estate, leverage allows investors to control a larger asset base with a smaller amount of their own capital.

Life Cycle PNLRs are generally limited duration entities that generally do not provide opportunities for investors to sell shares until a major liquidity event at the end of the REIT’s “life cycle.”

Market capitalization is the total market value of a company's outstanding shares of stock, calculated by multiplying the current share price by the total number of outstanding shares.

Provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities and earning income from the interest on these investments.

NAV PNLRs, which comprise the majority of PNLRs marketed today, are permanent entities that provide shareholders with the regular ability to sell shares back to the REIT at the current Net Asset Value (NAV).

The "market value" of all a company's assets, including but not limited to its properties, after subtracting the “market value” of all its liabilities and obligations.

A net lease is a lease structure commonly used in commercial real estate in which tenants agree to pay rent and to cover certain expenses related to the property. The different types of net leases (single, double, and triple) represent varying levels of tenant responsibility for these additional costs.

Net Operating Income (NOI) is the income remaining from income-generating properties after deducting all necessary operating expenses from a property’s total revenue.

Passive real estate investing refers to investment strategies that enable individuals to put money into real estate assets without actively managing the property or being directly involved in the day-to-day operations.

Sometimes called private placement REITs, private REITs are offerings that are exempt from SEC registration under Regulation D of the Securities Act of 1933 or pursuant to Rule 144A and whose shares intentionally do not trade on a national securities exchange. Private REITs generally can be sold only to institutional investors, such as large pension funds (Qualified Institutional Investors or QIBs), and/or to “Accredited Investors” generally defined as individuals with a net worth of at least $1 million (excluding primary residence) or with income exceeding $200,000 over two prior 2 years ($300,000 with a spouse).

REITs that are registered with the SEC, falling into two categories: Equity REITs and Mortgage REITs (mREITs).

REITs that are registered with the SEC but whose shares intentionally do not trade on a national securities exchange. PNLRs fall into two categories: NAV PNLRs and Life Cycle PNLRs.

REITs registered with the SEC.

The federal law that authorized REITs. Its purpose was to allow small investors to pool their investments in real estate in order to get the same benefits as might be obtained by direct ownership, while also diversifying their risks and obtaining professional management.

A company that owns, operates, or finances income-producing real estate. REITs allow investors to earn dividends from real estate without directly owning properties and must distribute most taxable income to shareholders, often offering liquidity and diversification through public or private investment structures.

Federal tax law change whose provisions allow a REIT to own up to 100% of stock of a taxable REIT subsidiary that can provide services to REIT tenants and others. The law also changed the minimum distribution requirement from 95 percent to 90 percent of a REIT's taxable income–consistent with the rules for REITs from 1960 to 1980.

Categories that classify REITs based on the property types they own or operate. The 14 sectors recognized by the FTSE Nareit indexes are: data centers, diversified, gaming, health care, industrial, lodging/resorts, mortgage, office, residential, retail, self-storage, specialty, telecommunications, and timberland. Each sector reflects different economic drivers and risk profiles. Understanding these sectors helps investors diversify and align real estate exposure with market trends and investment goals.

RIDEA allows REITs to partner directly with property operators, gaining a stake in both the revenue and expenses associated with the property’s operation sharing in the operational upsides, like increasing occupancy rates or service pricing, as well as any downsides, such as operational cost increases.

Section 199A, also known as the Qualified Business Income (QBI) Deduction, is a provision introduced under the Tax Cuts and Jobs Act of 2017. It offers significant tax benefits for business owners, particularly those involved in pass-through entities such as sole proprietorships, partnerships, S corporations, and certain trusts and estates.

Securitization is a financial process that involves pooling various types of debt—like mortgages, auto loans, or credit card debt—and transforming them into securities that investors can buy and trade. In real estate, securitization refers to the pooling of real estate assets—primarily mortgages—and converting them into mortgage-backed securities (MBS) or other related securities.

A situation where the benefits of an investment in energy efficiency or sustainability (e.g., lower utility bills) do not align with the party bearing the cost, often occurring between landlords and tenants—discouraging upgrades since one pays while the other reaps the savings.

A stock's dividend income plus capital appreciation, before taxes and commissions.

In the typical UPREIT, the partners of the Existing Partnerships and a newly formed REIT become partners in a new partnership termed the Operating Partnership. For their respective interests in the Operating Partnership ("Units"), the partners contribute the properties from the Existing Partnership and the REIT contributes the cash proceeds from its public offering. The REIT typically is the general partner and the majority owner of the Operating Partnership Units.