NAREIT (National Association of Real Estate Investment Trusts) - The real estate investment trust industry's national, not-for-profit trade representative organization.
NCREIF (National Council of Real Estate Investment Fiduciaries) - A national association of institutional real estate professionals who share a common interest in their industry and who serve on working committees, sponsor and disseminate research articles, hold educational and training seminars and symposiums, and produce the NCREIF Property Index.
NCREIF Property Index (NPI) - This index shows real estate performance returns using data submitted by NCREIF "Data Contributing Members". The NPI is used by investors to compare their returns against the industry average. NPI sub-indices for property-type include apartment, office, retail, industrial and hotel and regional ones include West, East, South and Midwest.
Negative amortization - The increase in a loan balance that results from the payments due on the loan do not cover the full amount of interest due. The unpaid portion of interest is then added to the loan's unpaid principle.
Net asset value (NAV) - The value of an individual asset or portfolio of real estate properties net of leveraging or joint venture interests
Net asset value per share - The current share value of a mutual fund or REIT calculated by total assets minus total liabilities divided by outstanding shares.
Net assets - Total market-value of the assets minus total market-value of the liabilities.
Net cash flow - Net income plus depreciation minus principal payments on long-term mortgages.
Net Effective Rent - Rental rate less any lease concessions.
Net investment in real estate - Total real estate investment minus the balance of the outstanding debt.
Net investment income - A portfolio's or legal entity's income or loss calculated by deducting all expenses, including portfolio and asset management fees, but before realized and unrealized gains and losses on investments, from total income.
Net Net Lease (NN) - Leases that require the tenant to pay property taxes and insurance in addition to the rent.
Net operating income (NOI) - A before-tax key indicator of financial strength computed by taking gross revenues minus operating expenses and a vacancy rate allowance.
Notice of Default (NOD) -A written notice sent to a borrower from a lender stating that the borrower has not met the loan contract's obligations and that the lender may take legal action to enforce the agreement unless the borrower performs the obligations.
Net present value (NPV) - Net present value is used to compare the relative merits of two or more investment choices. It is calculated by adding the total present value of incremental future cash flows to the present value of estimated proceeds from sale.
Net purchase price - Gross purchase price minus any financed debt.
Net real estate investment value - Market value of all real estate holdings less their property-level debt.
Net returns - Total returns to investors less consultant or management fees.
Net sales proceeds - Earnings from an asset's sale, or a portion of an asset's sale, minus the brokerage commissions, closing costs and associated expenses.
Nominal yield - The yield to investors prior to making adjustments for fees, inflation or risk.
Non-compete clause - A lease clause specifying that a tenant's business is exclusive in the property and that no other tenant may operate the same or a similar type of business in the building.
Nonconforming Loans - A conventional mortgage loan, also known as a jumbo loan, which can not be resold to Fannie Mae and Freddie Mac since it exceeds the loan amount, loan to value ratio, or underwriting guidelines. These loans usually encounter an interest rate and origination fee premium.
Non-discretionary funds - Funds used by an investment manager that require the investor's approval before any expenditure can be made.
Non-investment-grade CMBS - Securities rated "BB" or "B," also known as high-yield Commercial Mortgage Backed Securities.
Non-performing loan - A loan whose borrower is unable to meet the loan's contractual interest and principal payments.
Non-recourse debt - A loan limiting a lender's remedies to force fulfillment of the debt obligation to a foreclosure of the mortgage, realization on its assignment of leases and rents, and takeover of the real property, in the event of a borrower's default.
NNN - Triple Net Lease - A lease where the tenant or lessee agrees to pay all real estate taxes, building insurance and common area maintenance on the leased property in addition to the normal fees, such as rent, that are expected in the agreement. The tenant or lessee is also responsible for all costs due to repairs or replacement of the structural building elements of the property.
