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The expression "operating lease" is somewhat confusing as it has a different meaning based on the context that is under consideration. From a product characteristic standpoint, this type of a lease, as distinguished from a finance lease, is one where the lessor takes larger residual risk, whereas finance leases have no or a very low residual value position.
The debt service coverage ratio (DSCR), also known as "debt coverage ratio" (DCR), is a financial metric used to assess an entity's ability to generate enough cash to cover its debt service obligations, such as interest, principal, and lease payments. The DSCR is calculated by dividing the operating income by the total amount of debt service due.
While the FASB specified that operating lease liabilities should be considered "non-debt liabilities," so that they should not affect debt ratios and most loan covenants, the addition of an equal asset and liability will reduce most companies' quick ratio, while the fact that an operating lease creates a current liability but not a current ...
In certain leases, CAM charges also consists of administrative and management fees. Administrative fees are a negotiated percentage of all costs of operating and maintaining a property. Management fees are a percentage of gross rents collected, which percentage is defined in the management agreement between the management company and ownership ...
A gross lease is a type of commercial lease where the tenant pays a flat rental amount, and the landlord pays for all operating expenses regularly incurred by the ownership, including taxes, electricity and water. [1] Most [weasel words] apartment leases resemble gross leases. [2] The term "gross lease" is distinguished from the term "net lease."
Extendible operating lease: Although an EOL resembles a finance lease, the lessee generally has the option to terminate the lease at specified points (e.g. every three years); thus, the lease can also be conceptualized as an operating lease. Whether EOLs qualify as operating leases depends on the timing of the termination right and the ...
The consistency of Realty Income's operating model can also be seen in its occupancy levels. Since this century began, the median occupancy rate for S&P 500 REITs is a respectable 94.2%.
This credit risk represents the charge-offs that will most likely be realized against an institution's operating income as of the financial statement end date. [1] This reserve reduces the book value of the institution's loans and leases to the amount that the institution reasonably expects to collect. [2]