WRA GLOSSARY ACTUAL TEST BANK
COMPLETE QUESTIONS AND ANSWERS
GRADED A PLUS SUCCESS GUIDE
●● AFFO Yield
Answer: A valuation metric used to compare REIT valuation by dividing
a given year's AFFO/sh and the share price.
●● Price per Share
Answer: A metric used to determine the value of a single share of a
company's stock.
●● Alpha
Answer: A metric used to measure the value-add of an investment
manager by comparing the manager's performance to that of a risk-free
investment or a broad index.
●● Alternative Asset
Answer: A category of investments that includes arbitrage vehicles,
commodities, distressed securities, hedge funds, managed funds, oil-and-
gas partnerships, private equity, real estate, timber, venture capital,
carbon credits or other assets whose returns aren't typically correlated to
the stock and bond markets.
,●● Anchoring Bias
Answer: The cognitive bias associated with fixating on a particular
number or value, typically an arbitrary benchmark figure.
●● Annualized Base Rent
Answer: An income metric used most commonly in the retail and
industrial sectors that measures rent to be paid by a tenant over a 12-
month period.
●● Annualized Return
Answer: A measure of performance that accounts for the compounded
growth in value and dividends received over a period of years.
●● Assets Under Management
Answer: The total market value of all the assets controlled by an
investment manager.
●● Backtest
Answer: A process used to estimate the effectiveness of an investment
strategy or quantitative model by applying it in past periods.
●● Balloon Loan
Answer: A type of loan that does not fully amortize over the loan's term,
requiring a balloon payment at maturity.
,●● Base Station
Answer: Buildings at the bottom of a cell tower site that house tenant
equipment and generators.
●● Beta
Answer: A broad term used to measure risk, defined as the sensitivity of
an investment relative to a benchmark.
●● Blended Cap Rate
Answer: A Green Street proprietary weighted average cap rate for a
REIT based on all real estate segments in which that REIT participates.
●● Bottom-Up
Answer: A valuation approach grounded in company- or market-level
research first and then the broader sector and economy.
●● Brick-and-Mortar Retail
Answer: Refers to physical stores that customers visit in-person for
commerce.
●● Bridge Facility
Answer: A short-term credit facility used by companies or individuals
until permanent financing is secured.
, ●● Build-To-Rent (BTR) Housing
Answer: A type of residential property built specifically for the rental
market.
●● Bulk Distribution Industrial
Answer: A fast-growing industrial segment used for the storage and
distribution of goods.
●● Buy-to-Let Housing
Answer: A type of residential property that is not purpose built and that
an investor buys with the intention to lease to tenants.
●● Capital / Market Value
Answer: The estimated price at which a property or a group of properties
would transact.
●● Capital Expenditures (Cap-Ex)
Answer: The costs associated with the long-term ownership of
commercial real estate, typically underestimated.
●● Cell Site
Answer: An area within a wireless carrier's network that is able to be
serviced by an antenna.
COMPLETE QUESTIONS AND ANSWERS
GRADED A PLUS SUCCESS GUIDE
●● AFFO Yield
Answer: A valuation metric used to compare REIT valuation by dividing
a given year's AFFO/sh and the share price.
●● Price per Share
Answer: A metric used to determine the value of a single share of a
company's stock.
●● Alpha
Answer: A metric used to measure the value-add of an investment
manager by comparing the manager's performance to that of a risk-free
investment or a broad index.
●● Alternative Asset
Answer: A category of investments that includes arbitrage vehicles,
commodities, distressed securities, hedge funds, managed funds, oil-and-
gas partnerships, private equity, real estate, timber, venture capital,
carbon credits or other assets whose returns aren't typically correlated to
the stock and bond markets.
,●● Anchoring Bias
Answer: The cognitive bias associated with fixating on a particular
number or value, typically an arbitrary benchmark figure.
●● Annualized Base Rent
Answer: An income metric used most commonly in the retail and
industrial sectors that measures rent to be paid by a tenant over a 12-
month period.
●● Annualized Return
Answer: A measure of performance that accounts for the compounded
growth in value and dividends received over a period of years.
●● Assets Under Management
Answer: The total market value of all the assets controlled by an
investment manager.
●● Backtest
Answer: A process used to estimate the effectiveness of an investment
strategy or quantitative model by applying it in past periods.
●● Balloon Loan
Answer: A type of loan that does not fully amortize over the loan's term,
requiring a balloon payment at maturity.
,●● Base Station
Answer: Buildings at the bottom of a cell tower site that house tenant
equipment and generators.
●● Beta
Answer: A broad term used to measure risk, defined as the sensitivity of
an investment relative to a benchmark.
●● Blended Cap Rate
Answer: A Green Street proprietary weighted average cap rate for a
REIT based on all real estate segments in which that REIT participates.
●● Bottom-Up
Answer: A valuation approach grounded in company- or market-level
research first and then the broader sector and economy.
●● Brick-and-Mortar Retail
Answer: Refers to physical stores that customers visit in-person for
commerce.
●● Bridge Facility
Answer: A short-term credit facility used by companies or individuals
until permanent financing is secured.
, ●● Build-To-Rent (BTR) Housing
Answer: A type of residential property built specifically for the rental
market.
●● Bulk Distribution Industrial
Answer: A fast-growing industrial segment used for the storage and
distribution of goods.
●● Buy-to-Let Housing
Answer: A type of residential property that is not purpose built and that
an investor buys with the intention to lease to tenants.
●● Capital / Market Value
Answer: The estimated price at which a property or a group of properties
would transact.
●● Capital Expenditures (Cap-Ex)
Answer: The costs associated with the long-term ownership of
commercial real estate, typically underestimated.
●● Cell Site
Answer: An area within a wireless carrier's network that is able to be
serviced by an antenna.
