BNET Business Dictionary
Business Definition for: Capitalization Rate
- the rate at which a company's reserves are converted into capital by way of a stock split
Additional Resources
- What's it Worth?- Deriving Your Capitalization Rate
- Among the many tools used by investors to gauge the worth of an income property, one of the most popular is a capitalization rate, aka cap rate. But as it is typically used, it is probably the one most misused concept in the real estate investment business. While brokers, sellers...
- White papers 2003-01-01
- The Determinants of Appraisal-Based Capitalization Rates
- The article asserts that in traded securities markets, the single most revealing statistic about how an asset is viewed is the ratio of price to earnings PE. Higher PE's signal greater expected growth and less uncertainty, while lower PE's imply the reverse. The findings of this paper point to three...
- White papers 2001-03-01
- Income Property IV
- There are some rates and ratios, which can be useful in evaluating income property. But, like all statistics, they can be confusing and misleading if based on faulty information or used in the wrong way. Stock market investors use similar indicators, such as the price-to-earnings or P/E ratio. Analysts can...
- White papers 2003-01-01
- Analyzing Borrowing Costs and Capitalization
- When a company borrows money, there are essentially two costs involved: the issuance expenses, which are fees charged to issue the loan, and the interest payments on the debt. If interest is added to the principle balance of the loan—rather than paid off—it's known as capitalization.Interest rates are usually based...
- Articles 2007-12-12
- Main Directions of Monetary and Exchange Rate Policies of Georgia for the year 2003
- This white paper explains monetary and exchanges rates policies of Georgia decreases. Main Directions of Monetary and Exchange Rate Policies for the year 2003 shall rest on the annual inflation rate within 5 %. The reserve money should increase by 8-10 percent, mainly by accumulating international reserves of the National...
- White papers 2002-12-25
- Fitch Expects to Rate TMA's Preferred Stock Issuance 'BB-'
- NEW YORK -- Fitch Ratings expects to rate Thornburg Mortgage, Inc.'s TMA offering of approximately $50 million of 8.0% series C cumulative redeemable preferred stock 'BB-'. TMA's senior unsecured debt rating remains 'BB'. The Rating Outlook is Positive. TMA's ratings continue to reflect its strong asset quality, improving funding...
- Research articles 2005-05-25
- Strengthening U.S. Dollar Pushes Market Capitalization in Market Vectors-Double Short Euro ETN Above $50,000,000
- Daily Trading Volume Increases in August to an Average of 112,000 NEW YORK -- Morgan Stanley announced today that its exchange-traded note, the Market Vectors-Double Short Euro ETN (ticker: DRR), has surpassed $50,000,000 in market capitalization since trading began on May 7, 2008. DRR seeks to provide leveraged directional...
- Research articles 2008-08-19
- SL Green sells 1250 Broadway to Murray Hill Properties for $310M
- SL Green Realty Corp. announced the sale of 1250 Broadway in Manhattan to Murray Hill Properties for $310 million, or approximately $463 per square foot, at a capitalization rate of 4.5%. Located conveniently near Penn Station on Broadway at 31st Street, 1250 Broadway is a 39-story, 670,000 square foot...
- Research articles 2008-03-12
- Capitalization of the Bank Insurance Fund
- A two-state Markov-switching model is estimated to characterize the time series behavior of disbursements from the Bank Insurance Fund BIF. The estimated model is used to project future disbursements, and these projected disbursements are used to estimate the likelihood of insolvency as well as the likelihood of the BIF falling...
- White papers 1998-01-01
- Capitalization of Capital Gains Taxes
- This paper present evidence consistent with neither a sell-off of appreciated securities following the rate reduction nor a reduction in the compensation for capital gains taxes that selling shareholders demand from buyers. The upward price pressure around the accord dominated any downward price pressure imposed by these factors.
- White papers 1999-01-15
- Estimating the Value of Apartment Buildings
- This article applies hedonic modeling techniques to estimate the value of a sample of apartment properties sold in the greater Portland, Oregon area. An equation for value as a function of location, amenities and capitalization rate is derived. This model explains about 95% of the variation in apartment property prices....
- White papers 2003-01-01
- Equity Inns to Acquire Second Hilton Garden Inn
- GERMANTOWN, Tenn. -- Equity Inns, Inc. (NYSE: ENN), a hotel real estate investment trust REIT, today announced that it has agreed to purchase a 126-room Hilton Garden Inn located in Ft. Myers, Florida from a Massachusetts based partnership for a total cost of $14.5 million, or $115,000 per room. This...
- Research articles 2005-02-24
- Equity Inns Divests Two Exterior Corridor Hampton Inns Hotels; Completes Purchase of Previously Announced Hilton-Branded Hampton Inn and Suites
- GERMANTOWN, Tenn. -- Equity Inns, Inc. (NYSE: ENN), a hotel real estate investment trust REIT, today announced that it has finalized the divestiture of two hotels for approximately $5.1 million at a combined capitalization rate of 7.7% in two separate transactions. The sold properties include two Hampton Inns located in...
- Research articles 2005-08-09
- Equity Inns Completes Purchase of Hilton Garden Inn and Marriott Courtyard
- GERMANTOWN, Tenn. -- Equity Inns, Inc. (NYSE:ENN), a hotel real estate investment trust REIT, today announced that it has finalized its purchase of a 93-room Marriott Courtyard in Dalton, Georgia and a 112-room Hilton Garden Inn in Louisville, Kentucky, for approximately $14.4 million. The Company funded the purchase with proceeds...
- Research articles 2004-11-02
- Bluestone Realty
- Bluestone Realty announced the sale of 1005 Bedford Avenue, Brooklyn, NY. The 21,000 s/f, three-story, school building is currently NNN leased to the City of New York. The sale was concluded at $3,900,000 which equates to $185 psf and a capitalization rate of 7.5%. This transaction was brokered by Eli...
- Research articles 2008-03-26
- Adelaide Polsinelli, Laurence Ross and Ellen Volpe of The Platinum Team announced the sale of a shopping strip center occupied by a double net leased Walgreens in Deer Park, Long Island
- Adelaide Polsinelli, Laurence Ross and Ellen Volpe of The Platinum Team announced the sale of a shopping strip center occupied by a double net leased Walgreens in Deer Park, Long Island. The property sold for the asking price of $6,450,000 and had a capitalization rate of 6.2%. This translated into...
- Research articles 2007-09-12
- Equity Inns to Purchase Hilton Garden Inn Albuquerque North/Rio Rancho, New Mexico
- GERMANTOWN, Tenn. -- Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust REIT, today announced that the Company has signed a contract to purchase a seven year old 129-room Hilton Garden Inn in the Albuquerque suburb of Rio Rancho, New Mexico from a partnership controlled by...
- Research articles 2006-09-26
- A New Approach to Uncertainty in Business Valuations
- The typical business valuation has a significant limitation: the failure to recognize uncertainty. Business valuation specialists try to cope with uncertainty by triangulation of three different valuation techniques, applying a premium or discount to a capitalization rate, or adjusting future revenue and expense projections. These techniques generally can do no...
- Research articles 2004-04-01
- Excel announces fourth-quarter dividend & acquisition of new shopping center
- SAN DIEGO--BUSINESS WIRE--Dec. 5, 1994--Excel Realty Trust Inc. (NYSE:XEL) Monday announced that its board of directors declared a fourth-quarter dividend of 43 cents per share on its common stock for shareholders of record on Dec. 31, 1994. The dividend will be payable on Jan. 13, 1994. ...
- Research articles 1994-12-05
- Developers Diversified Realty Corporation acquires shopping center
- CLEVELAND, OHIO--BUSINESS WIRE--Feb. 28, 1995--Developers Diversified Realty Corporation (NYSE:DDR) has acquired a shopping center in Toledo, Ohio containing an aggregate of 187,674 total square feet of gross leasable area, with Best Buy, Sears Homelife, The Pharm, Office Depot and Michaels as anchor tenants for a purchase price of approximately $13.0...
- Research articles 1995-02-28
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