Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

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Leverage Percentage

The most widely used measure of leverage for monitoring financial risks in a real estate portfolio. The Leverage Percentage indicates what proportion of debt a fund has relative to the value of its assets. This measure shows stakeholders in the fund the level of fund leverage along with the potential risks the fund faces in terms of its debt load.

Source: NCREIF PREA | Date: 29 April 2020 | ID: D0246 | Version: 2