Glossary
Improvements
Buildings or alterations (e.g. dams) to land. Improvements may be to the land (such as drains, levelling, clearing, removal of stone), or on the land (such as buildings and fences).
Incentive
The discount or contribution offered to a lessee at commencement of the lease and may be applied at the start, or during or at the end of the lease term and is outside the lease terms. May include cash contribution, fit-out benefits or rent free periods.
Income Capitalisation Value
The indication of value derived for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value in one of two ways; direct capitalisation of expected income or discounting the annual cash flows for the holding period at a specified yield rate.
Indemnity
A form of contract arising where a person undertakes to compensate another for loss he may suffer as a result of a transaction with a third party.
Indexing
A passive portfolio management technique in which the fund manager seeks to match the composition, and therefore performance, of a market index such as the Australian Stock Exchange (ASX), Listed Property Trust Index or the ASX All Ordinaries Index.
Industrial Property
Improved real estate used for the purpose of manufacturing, processing or warehousing goods.
Initial Yield
The initial yield is the percentage return on price or value derived from current net passing income. This is merely a statement of the ratio between the initial income and price or capital value, expressed as a percentage. No allowance is made for any future rent growth.
Injurious Affection
Loss or damage of non-physical nature to land remaining with a dispossessed owner after a partial compulsory acquisition. Excludes any sentimental value.