| Property |
| Assured periodic tenancy (‘APT’) |
Market rented tenancy arising from succession from regulated. Tenant has security of tenure. |
| Assured shorthold tenancy (‘AST’) |
Market rented tenancy where landlord may obtain possession if appropriate notice served. |
| Assured tenancy (‘AT’) |
Market rented tenancy where tenant has right to renew. |
| Investment value (‘IV’) |
Open market value of a property subject to relevant tenancies in place. |
| Life tenancy |
Rent free tenancy where tenant has right of occupation until possession is forfeited (usually on death). If tenant retains an equity interest in the property this is a partial life tenancy. |
| Regulated tenancy |
Tenancy regulated under 1977 Rent Act, rent (usually sub-market) set by rent officer and tenant has security of tenure. |
| Tenanted residential (‘TR’) |
Activity covering the acquisition, renting out and subsequent sale (usually on vacancy) of residential units subject to a tenancy agreement. |
| Vacant possession value (‘VP’) |
Open market value of a property free from any tenancies. |
| Financial |
| Cap |
Financial instrument which, in return for a fee, guarantees an upper limit for the interest rate on a loan. |
| Contingent tax |
The amount of tax that would be payable should assets be sold at the market value shown in the accounts. |
| Dividend cover |
Earnings per share divided by dividends per share. |
| Earnings per share (‘EPS’) |
Profit attributable to shareholders divided by the weighted average number of shares in issue in the year. |
| FRS13 |
Accounting standard requiring the disclosure of the market value of long-term debt and financial instruments. |
| FRS19 |
Accounting standard prohibiting the provision of deferred tax on stock revaluation surpluses when companies are acquired. |
| Gearing |
The ratio of borrowings net of cash to net asset value. |
| Hedging |
The use of financial instruments to protect against interest rate movements. |
| Interest cover |
Profit on ordinary activities before interest and tax divided by net interest payable. |
| Negative goodwill |
On acquisition of a company, the surplus of the value of the statutory net assets acquired over the purchase price paid. |
| Net asset value (‘NAV’) |
Shareholders’ funds adjusted for the market value of property assets held as stock. |
| Net net asset value (triple net or ‘NNNAV’) |
NAV adjusted for contingent tax liabilities which would accrue if assets sold at market value and for the market value of long-term debt and derivatives. |
| Swap |
Financial instrument to protect against interest rate movements. |
| Total shareholder return (‘TSR’) |
Return attributable to shareholders on basis of share price growth with dividends reinvested. |
| Weighted average cost of capital (‘WACC’) |
The weighted average cost of funding the group’s activities through a combination of shareholders’ funds and debt. |
