LEC2: Nature of Ownership
Maximum Score
Not scored
Prefill
Not eligible
Validation
None
Nature of ownership
Assessment Instructions
Intent: What is the purpose of this indicator?
Describe the real estate lender type and nature of the participating entity. Participants should select the most applicable type that fits the reporting entity. This criteria may be used for peer benchmarking purposes.
Input: How do I complete this indicator?
Select one of the options and select all applicable sub-options.
If two or more listed companies merge into one entity during the reporting year, report on the structure, policies and procedures of the newly formed entity as of the end of the reporting year.
If 'Other' is selected, answers provided under 'Other' must be outside the options listed in the indicator to be valid.
Terminology
Club deal
An investment vehicle or structure with generally a limited number of investors investing in a common strategy. Typically, investors have more discretion and control than in a typical fund, and have veto rights over major decisions.
Fund or vehicle
Terms used to describe a structure where at least three investors’ capital is pooled together and managed as a single entity with a common investment aim. For the purposes of these definitions, these terms can be used interchangeably.
ISIN
International Securities Identification Number. ISINs are assigned to securities to facilitate unambiguous clearing and settlement procedures. They are composed of a 12-digit alphanumeric code and act to unify different ticker symbols, which can vary by exchange and currency for the same security. In the United States, ISINs are extended versions of 9-character CUSIP codes.
Joint venture
A vehicle where at least two parties share a common investment objective. Control over significant risk management decisions is not transferred to an external manager, but is exercised by members in the venture.
mREIT
A Mortgage Real Estate Investment Trust is a specialized financial vehicle that provide funding for real estate through the purchase of mortgages and mortgage-backed securities. Listed mREITs are traded on a stock exchange.
Private entity
A company or fund that is not a listed or traded on any stock exchange. Also known as a non-listed entity.
Public entity
A company that is publicly listed and traded on a recognized stock exchange, such as Nasdaq or NYSE. Also known as "listed entities”.
Senior Debt
A form of debt financing that holds the highest claim on a borrower’s assets in the event of default or liquidation. Typically secured and lower in risk, it carries lower yields compared to other debt forms.
Separate Account
SMAs, also referred to as managed accounts, wrap accounts or individually managed accounts, are portfolios managed exclusively for the investor according to their investing and tax preferences and requirements.
Special Purpose Vehicle
Subsidiary created by a parent company to isolate financial risk. Its legal status is of a separate company, with its own balance sheet.
Subordinated Debt
Debt that ranks below senior debt in the repayment hierarchy. In a default scenario, subordinated debt is repaid only after all senior obligations have been satisfied, resulting in higher interest rates to compensate for the increased risk.
Unitranche Debt
A hybrid financing structure that combines both senior and subordinated debt into a single loan facility. This approach simplifies capital arrangements by providing one blended interest rate and consolidated terms reflective of the overall risk profile.
Scoring
This indicator is not scored.
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