Face rental rate - A landlord's published rental rate.
Facility space - The floor area in a hospitality property dedicated to operating departments such as restaurants, bars, health clubs, coffee shops and gift shops that serve the guests or the general public in a way that is not directly related to room occupancy.
FAD (Funds Available for Distribution) - Funds from operations minus cash expenditures for any leasing commissions and all tenant improvement costs.
FAD multiple - An REIT's share price divided by the REIT's funds available for distribution.
Fair market value - The amount at which a property or asset could be bought or sold between a willing buyer and willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts. Not a forced or liquidation sale amount.
Fannie Mae (FNMA) - The nickname of the Federal National Mortgage Association and the securities it issues.
Fee simple interest - When an owners owns all rights in and title to a real estate property.
FFO (Funds From Operations) - A ratio that highlights the cash generated by a company's real estate portfolio relative to its total operating cash flow. FFO is equal to net income plus depreciation and amortization, less gains (or losses) from debt restructuring and property sales.
FFO multiple - Share price of a REIT divided by its FFO.
FF&E (Furniture, Fixtures & Equipment) - Personal or business property which is used in the real property but which is not valued as part of the real property.
Fiduciary - As defined by the Employee Retirement Income Security Act (ERISA), a fiduciary is any person exercising any discretionary authority or control over a plan's asset management, administration or disposition, or gives investment advice with respect to a plan's assets for a fee or other compensation. ERISA permits law suits to be brought against any fiduciary that has breached its fiduciary duty by a plan's beneficiary. Fiduciaries can be held personally liable for the plan's losses resulting from a proven breach.
Finance charge - An interest charge or other charge for the privilege of deferring payment of goods or services purchased, usually by use of a credit card, including any charges payable by the purchaser as a condition of the loan.
First mortgage - The primary mortgage that, by reason of its position, has priority over all secondary encumbrances, such as second mortgage or line of credit. The holder has a priority right to payment in the event of foreclosure or default.
First refusal right, or right of first refusal - A lease right providing a tenant the first opportunity to buy a property or lease additional space in a property at the same price, terms and conditions as those contained in an offer from a third-party that the property owner is willing to accept.
First-generation space - Generally refers to rental space that has not been occupied by a tenant before.
First-loss position - The position in a security that will suffer the first financial loss if the securitizing asset is foreclosed on or loses its value. This position carries the highest risk and the highest yield.
Fixed costs - Costs that are not affected by the level of sales or production.
Fixed rate - An interest rate is unchanged over the life of the loan
Flat fee - An adviser's or manager's fee for managing a portfolio of real estate assets, usually stated as a flat percentage of the asset's gross or net value, or invested capital.
Flex space - A building that provides a changeable configuration allowing occupants flexibility in apportioning the amount of office or showroom space to the manufacturing, warehouse, or distribution space.
Float -
- The amount of freely traded shares in the public's possession.
- Using funds generated as a result of timing differences in the bank's check-clearing system.
Flood hazard zone - A landed area designated under Federal law as an area that might experience damage from flooding. Lenders taking an interest in real property are compelled, by the National Flood Insurance Reform Act of 1994, to complete FEMA's flood hazard determination form and retain a record of the form. A lender is required to have flood insurance and have notice requirement obligations for any collateral property located in a designated flood hazard area.
Floor area ratio (FAR) - The ratio of the gross square footage of a building to the square footage of the land on which it is situated
Force majeure - A force that cannot be controlled by the parties to a contract and prevents them from fulfilling the obligations of the contract. Also known as "Acts of God", such as lightning, flood, storm, freezing or a hurricane, or "acts of man" such as a strike, fire, nuclear first strike or war.
Foreclosure - A remedy provided by state laws for the termination of a mortgagor's right of redemption, by which the creditor takes over a property from a borrower and gains the title to the property.
Forward commitments - Upon the satisfaction of certain stated conditions, the contractual obligation to perform certain funding activity.
Freddie Mac (FHLMC) - The nickname of the Federal Home Loan Mortgage Corp. or the securities it issues.
Full recourse - A loan for which an endorser or guarantor is liable in the event of a borrower's default.
Full-service rent - Rent that includes all of the first year's operating expenses and real estate taxes. Tenants are generally still responsible for any increases in operating expenses over base year amounts.
Fully diluted shares - The number of common stock shares that would be outstanding if all the convertible securities were converted over to common stock shares.
Future proposed space - Space in a proposed commercial development on which building has not yet started or where date for construction start has not been set. May refer to the phases of a multi-phase project that are as yet not built.
