Glossary of Terms

ACQUISITIONS & DISPOSITIONS

The purchasing and selling of properties undertaken by the Partnership.

CAPITAL EXPENSES

Company funds used in the large-scale or long-term maintenance or upgrading of assets in order to uphold or increase the scope of operations (such as repairs, additions, etc).

DEMOGRAPHICS

Statistical data of a population based on factors such as age, race, sex, economic status, level of education, income level, employment etc.DEVELOPMENT TRENDS

Patterns established by the market in the construction or growth of property in a designated area over a period of time.

DOWNSIDE PROTECTION

The possession of alternatives or options in order to limit losses in the event of a decline in the value of underlying security. 

GENERAL PARTNER (GP)

Those parties who take on the operational responsibilities, greater financial liability, and corporate accountability of the Partnership.

INTERNAL RATE OF RATURN (IRR)

Used to determine a property's viability, the IRR is an interest rate that assigns a net present value of zero when applied to the expected cash flow of a prospective property. 

LIMITED PARTNER (LP)

Limited Partners invest their capital to support the Partnership from a position of limited legal and managerial obligations.

LIMITED PARTNERSHIP

A Partnership wherein investors enter as Limited Partners (LPs) who assign the roles and liabilities of managing the portfolio to the General Partner (GP). 

LIMITED PARTNERSHIP COMMITTEE (LPC)

A seven-seat panel of nominated investors assigned with the task of representing and executing the opinions and strategies of the Partnership as a whole. 

NEW ASSET ACQUISITION

Prior to the addition of a new property to the portfolio, all prospective investments must be approved by the LPC. Further to this, all existing LPs have the Right of First Refusal on any additional units.

PSYCHOGRAPHICS 

Psychological characteristics of a population including purchasing motivations, lifestyles, values, beliefs, interests, etc.

RIGHT OF FIRST REFUSAL

An exit strategy condition stipulating that Limited Partners wishing to sell their units to a third party must first offer existing Limited Partners the right to purchase the units at the agreed upon price. 

RISK-REWARD BALANCE

A ratio comparing the expected investment return to the level of risk undertaken. 

ULTIMATE DIVERSE PORTFOLIO

A collection of properties wherein equity is distributed both within and across asset classes in order to minimize the risk to individual investors.