Debt Refinancing
What is Debt Refinancing? Debt refinancing is the replacement of an existing debt by means of another debt with terms and/or conditions that are more favorable. In other words, debt refinancing refers to the replacement of existing debt with new debt. How It Works Debt refinancing is commonly used to take advantage of new financing...
Residential Properties REITs
What are Residential Properties REITs? Residential properties REITs are REITs that own and manage residential units for renting out to tenants. Residential REITs may be categorized into either single-family or multi-family structures that are available for occupation for non-business purposes. They may include condominiums, vacation homes, student housing, apartment buildings, etc. Residential real estate REITs...
Adjusted Funds From Operations (AFFO)
What are Adjusted Funds From Operations (AFFO)? Adjusted Funds From Operations (AFFO) is a measure of the financial performance of a REIT, and it is used as an alternative to Funds From Operations (FFO). AFFO is a superior measure compared to FFO because the former considers the maintenance costs of the real estate property over...
Private REITs vs Publicly Traded REITs
What are Private REITs vs Publicly Traded REITs? The article below covers private REITs vs publicly traded REITs. Real estate investment trusts (REITs) can be classified into either private or public, traded or non-traded. REITs specifically invest in the real estate sector, and they lease and collect rental income on the invested properties that is...
Redemption Rights Clause
What is the Redemption Rights Clause? The redemption rights clause gives the owner of a property the right to reclaim his/her property during a foreclosure auction. The clause is often included in a mortgage agreement. Redemption rights allow the borrower to prevent foreclosure on the property by paying all liens or back taxes on the...
