Gross rental income – a total annual income of the enterprise received as a result of the lease of the property and calculated in monetary terms.
Fiduciary management – a service for asset management on the basis of the rules of a closed mutual investment fund and an agreement with a management company, aimed at implementing clients' orders related to investing in a particular real estate
Due Diligence (DD) — a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.
Investor – a legal or natural person who invests own, borrowed or otherwise attracted funds in assets that present financial interest in order to obtain additional income
Investment Committee – a collegial body consisting of investment professionals that select assets for investment and approve investment strategies
Investment item – any business item acquired with the goal of generating income. In the case of GBH Smart Investment – real estate properties located on the site
Investment risk – a probability of a partial or complete loss of invested funds, which can be caused by various reasons, including force majeure
Investment memorandum – a document containing structured information for potential investors
A share – a security certifying the rights of its owner to a share of the property. Accounting of rights for investment shares is carried out by a specialized registrar in personal accounts in the register of owners of investment shares
Capitalization of an asset is a process that determines the relationship between future income and the current value of an asset
Property management fee – money paid to a management company for a set of actions aimed to achieve an effective functioning of the client's investment item.
Transaction fee – an one-time payment charged for organizing the process of structuring a property
Commercial real estate – buildings, facilities or land used for commercial activities with the subsequent extraction of constant profit or capital gain from rent or resale
Liquidity – the ability of assets to be quickly sold at a price close to market
Personal income tax (PIT) is the main type of direct tax calculated as a percentage of the total income of individuals less documented expenses, in accordance with current legislation
Report of the operating company of the property – a monthly report on the revenues and expenditures
Report of the management company of the fund – a quarterly report on the revenues and value of the fund's property
Rules of fiduciary management – is the main document of the fund containing the terms of the contract of fiduciary management of the fund; it defines the rights and obligations of the management company and shareholders, the procedure for the acquisition and redemption of shares, the procedure for the structuring of the fund. The rules of fiduciary management of the fund are developed by the management company based on the Model Rules
Share price – a value determined by dividing the price of the fund's net assets by the number of investment shares
Net Asset Value (NAV) is the difference between the assets and liabilities of a fund.
Fund's assets are property (securities, deposits, cash, etc.) and receivables; fund's liabilities – are accounts payable and reserves for future expenses and payments
Funding period – a period between the start and the end of the collection of funds for the acquisition of real estate
Return on investment – is a financial metric of profitability, a ratio of the gain from an investment relative to its cost
Rental income – income from leasing a property less the costs of its maintenance
Property value – the most probable price that can be obtained when selling a particular property
Property Management Company – GBH Hoteles & Apartamentos – a company that manages rental relationships and operation of the property as a means to obtain profit and act in the interests of investors
Property Funding – A fundraising process for acquiring a property
Net operating income – the difference between gross income and gross expenses of a property
Operating costs – costs associated with the operation of the leased property. The cost structure is determined individually for each leased property