Global Definitions Database
Access, learn and discover all terms related to the non-listed real estate sector.
U
Umbrella Partnership Real Estate Investment Trust (UPREIT)
Organizational structure where a REIT's assets are owned by a holding company for tax purposes.
Uncalled Capital Commitment
The portion of an investor’s capital commitment that is unfunded and may be subject to a capital call, excluding any amounts subject to a pending capital call that have not yet been funded as a capital contribution; the borrowing base in a subscription-backed credit facility is determined by reference to the uncalled capital commitments of the included investors.
Underserved population
(Related to Impact Investing) Potential consumers, who lack access to mainstream suppliers of goods and services. Education or healthcare Real Estate Impact strategies could have a particular focus on providing access to these services to underserved populations.
Understored Trading Area
A geographic area that has too few stores selling a specific good or service to satisfy the needs of its population.
Undiversifiable Risk
The risk inherent to the entire market that cannot be mitigated or reduced through diversification; also known as “market risk,” “non-diversifiable risk,” or “systematic risk”.
Unfunded Commitment
See definition of Outstanding Capital Commitment.
Uniform Standards of Professional Appraisal Practice (USPAP)
Valuation standards established through Uniform Standards of Professional Appraisal Practice in the United States. USPAP is developed, interpreted, and amended by the Appraisal Standards Board of the Appraisal Foundation. USPAP are quality control standards applicable to real property, personal property, intangibles, and business valuation appraisal and opinions which interpret the standards. USPAP is the foundational standard for valuation within the Reporting Standards. See www.uspap.org.
Unitized vehicle
A collective investment structure that allows the transfer of predefined ownership increments (e.g the purchase or sale of shares) as defined in the Vehicle Documentation.
Units of Comparison
The components into which a property may be divided for purposes of comparison.
Unrealised (capital) gain / loss
The appreciation and depreciation for vehicle assets and liabilities which results from a revised fair market value prior to a transaction event such as a disposition of assets or a settlement of liabilities.
Unrelated Business Income Tax (UBIT)
The tax on unrelated business taxable income (UBTI).
Unrelated Business Taxable Income (UBTI)
Income regularly generated by a tax-exempt entity by means of taxable activities and that is unrelated to an investor’s tax-exempt purpose, as generally defined under the Internal Revenue Code (IRC) of 1986, as amended,; typically not related to the main function of the entity but is needed to generate a small portion of income.
Unsystematic Risk
The risk inherent to a particular investment or portfolio of investments that can be mitigated or reduced through diversification; also known as “diversifiable risk,” “idiosyncratic risk,” “residual risk,” or “specific risk”.
Upfit
A negotiated sum a landlord is willing to spend to customize space for the needs of a particular tenant; also known as a “tenant finish allowance” or “tenant improvement allowance”.
Urban Land Institute (ULI)
A nonprofit organization providing research and information on land use and development.
US Real Property Holding Corporation (USRPHC)
A US corporation whose fair market value of the US real property interests held by the corporation on any applicable determination date equals or exceeds 50 percent of the sum of the fair market values of its US real property interests, interests in real property located outside the US and certain business assets.
US Real Property Interest (USRPI)
An interest in real property (including an interest in a mine, well, or other natural deposit) located in the US or the US Virgin Islands, as well as certain personal property that is associated with the use of real property (such as farming machinery).
Usable Area
The amount of area that can be occupied by tenants; can vary over the life of a building.
Usury
Charging more than the legal rate of interest for the use of money.
Utilities, repair and maintenance costs (non-rechargeable portion)
Shortfalls between the property operating expenses (incl. repairs and maintenance) incurred by the owner of an investment property and the expenses that are charged to the tenants.