Glossary of Terms

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U.S. TREASURY NOTE
Treasury Notes are intermediate-term securities issued with 2, 3, 5, and 10-year maturities. Treasury notes are coupon-bearing securities that pay interest on a semi-annual basis. Treasury notes are backed by the full faith and credit of the U.S. Government.

UNANCHORED
A tenant in a shopping center, which doesn't have an anchored tenant.

UNDERWRITING
The process of deciding whether to make a loan based on property cash flow, credit, and/or other factors.

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VACANCY PERCENT
The percentage of all units or space that is unoccupied or not rented. On a pro�forma income statement, a projected vacancy rate is used to estimate the vacancy allowance, which is deducted from potential gross income to derive effective gross income.

VACANCY
Unoccupied units as a percentage of the total number.

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YIELD
The rate of return on a security, taking into consideration annual interest payments, purchase price, redemption value, and the time remaining until maturity.

YIELD MAINTENANCE
A prepayment premium that allows investors to attain the same yield as if the borrower made all scheduled mortgage payments until maturity. Yield maintenance premiums are designed to make investors indifferent to prepayments and to make refinancing unattractive and uneconomical to borrowers.

YIELD TO AVERAGE LIFE
Yield calculation used, in lieu of "Yield to Maturity" or "Yield to Call," where books are retired systematically during the life of the issue, as in the case of a "Sinking Fund," with contractual requirements. Because the issuer will buy its own bonds on the open market to satisfy its sinking fund requirements, if the bonds are trading below Par, there is, to that extent, automatic price support for such bonds; they therefore tend to trade on a yield�to�average�life basis.

YIELD TO MATURITY (YTM)
Concepts used to determine the rate of return an investor will receive if a long�term, interest�bearing investment, such as a bond, is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield and the time between interest payments. Recognizing time-value-of-money, it is the discount rate at which the present value of all future payments would equal the present price of the bond (also referred to as "internal rate of return"). It is implicitly assumed that coupons are reinvested at the YTM rate. YTM can be approximated using a bond value table (also referred to as a "bond yield table") or can be determined using a programmable calculator equipped for bond mathematics calculations.

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