Value of Unencumbered Assets definition

Value of Unencumbered Assets means, for any Person as of any date, the sum (without duplication) of (a) the value of all Unencumbered Assets that are not Assets Under Development, Assets Acquired Not in Service or assets of the type described in clause (b) (determined in the manner set forth below), plus (b) the purchase price paid by such Person (less any amounts paid to such Person as a purchase price adjustment, held in escrow, retained as a contingency reserve or in connection with other similar arrangements) for any Property (other than Assets Under Development) that constitutes an Unencumbered Asset and acquired by such Person during the immediately preceding period of four consecutive fiscal quarters, plus (c) any unrestricted cash, including any cash on deposit with a qualified intermediary with respect to a deferred tax-free exchange, plus (d) an amount equal to 100% of the then-current book value, determined in accordance with GAAP, of each first mortgage receivable secured by an income producing commercial property, provided that such first mortgage receivable is not subject to any Lien, plus (e) 100% of the then current book value of each Asset Under Development that constitutes an Unencumbered Asset plus (f) with respect to each Rollover Project, an amount equal to 50% of the then current book value, determined in accordance with GAAP, of each Rollover Project; provided that to the extent the aggregate amount of Value of Unencumbered Assets from Assets Acquired Not in Service and the other items set forth in clauses (d), (e) and (f) exceed 20% of the total Value of Unencumbered Assets, such excess shall be excluded. Unencumbered Assets that are not Assets Under Development or assets of the type described in clause (b) above shall be valued by dividing the Property Operating Income for such Project for the most recent four fiscal quarters by the Applicable Cap Rate (provided that for the purpose of such calculation, the Property Operating Income of each Unencumbered Asset that was formerly a Rollover Project shall in no event be less than zero). If a Project is no longer owned as of the date of calculation, then no value shall be included based on capitalizing Property Operating Income from such Project, except for purposes of such financial covenant comparing the Property Operating Income from Unencumbered Assets during a quarter to Debt Service for such quarter.

Value of Unencumbered Assets means, as of any date, the sum of:

Examples of Value of Unencumbered Assets in a sentence

Maintenance of Value of Unencumbered Assets to Unsecured Debt 68 Section 1114.
Not permit the Fair Market Value of the Unencumbered Assets to be less than $60,000,000; provided, however that in calculating the Fair Market Value of Unencumbered Assets, no more than 50% of the Fair Market Value of Unencumbered Assets shall be attributable to MDS Shares.
As of the end of any fiscal quarter, permit Consolidated Unsecured Debt to exceed 50% of the Value of Unencumbered Assets.
Not permit the Fair Market Value of the Unencumbered Assets to be less than the greater of (x) $35,000,000 and (y) an amount equal to the amount which would represent the impact of a 100 basis point increase in the interest rates on the Borrower’s Investments; provided, however that in calculating the Fair Market Value of Unencumbered Assets, no more than 50% of the Fair Market Value of Unencumbered Assets shall be attributable to MDS Shares (“Unencumbered Asset Reserve Requirement”).
As of the last day of any fiscal quarter, permit the ratio obtained by dividing (a) the aggregate Property Operating Income from all Unencumbered Assets qualifying for inclusion in the calculation of Value of Unencumbered Assets for such quarter by (b) Interest Expense on all Consolidated Unsecured Debt for such quarter to be less than 2.00 to 1.

More Definitions of Value of Unencumbered Assets

Value of Unencumbered Assets means, as of the end of a quarter, the sum of (a) the value of all Unencumbered Assets wholly owned by the Borrower, PLUS (b) the allocable share based on Borrower's economic interest in the value of the Unencumbered Assets owned by Qualifying Investment Affiliates, PLUS (c) the amount of Unrestricted Cash and Cash Equivalents owned by Borrower, PLUS (d) the allocable share based on Borrower's economic interest in the amount of Unrestricted Cash and Cash Equivalents owned by a Qualifying Investment Affiliate. Unencumbered Assets shall be valued by capitalizing at a rate equal to the Applicable Cap Rate, the Property Operating Income from each Property which is an Unencumbered Asset for such quarter less, without duplication, an assumed management fee of 4% of gross revenues (excluding tenant recoveries) and the assumed Capital Expenditure Reserve Amount. If a Property is acquired during a quarter then Borrower shall be entitled to include pro forma Property Operating Income from such Property for the entire quarter in the foregoing calculation. If a Property is no longer owned as of the last day of a quarter, then no value shall be included based on capitalizing Property Operating Income from such Property.

Value of Unencumbered Assets means, as of the end of a quarter, the sum of (a) the value of all Unencumbered Assets wholly owned by the Borrower, plus (b) the allocable share based on Borrower’s economic interest in the value of the Unencumbered Assets owned by Qualifying Investment Affiliates and Special Qualifying Investment Affiliates, plus (c) the face amount of Unrestricted Cash and Cash Equivalents owned by Borrower, plus (d) the allocable share based on Borrower’s economic interest in the amount of Unrestricted Cash and Cash Equivalents owned by Qualifying Investment Affiliates and Special Qualifying Investment Affiliates, plus (e) 100% of the then current Value of each Preleased Asset Under Development and Presold Asset Under Development that constitutes an Unencumbered Asset except for not meeting the condition that it be in service, provided that the aggregate amount added by such assets to Value of Unencumbered Assets shall not exceed $175,000,000, plus (f) 60% of the then current Value of each Asset Under Development that constitutes an Unencumbered Asset except for not meeting the condition that it be in service, provided that the aggregate amount added to Value of Unencumbered Assets from Assets Under Development shall not exceed $75,000,000. In no event shall the aggregate amount added to Value of Unencumbered Assets from Assets Under Development, Preleased Assets Under Development and Presold Assets Under Development exceed 15% of the total Unencumbered Pool Value. The aggregate amount of Value of Unencumbered Assets attributable to assets located in any one industrial park shall not exceed 25% of the total Value of Unencumbered Assets. The aggregate amount of Value of Unencumbered Assets attributable to both Qualifying Investment Affiliates and Special Qualifying Investment Affiliates in the aggregate shall not exceed 10% of the total Unencumbered Pool Value. Unencumbered Assets shall be valued by capitalizing the Property Operating Income for such quarter less an assumed management fee of 3% of gross revenues (excluding tenant recoveries) and an assumed capital reserve expenditure equal to 5¢ per square foot of leasable space (as annualized) from each Project which is an Unencumbered Asset at a rate equal to the Applicable Cap Rate. If a Property is acquired during a quarter then Borrower shall be entitled to include pro forma Property Operating Income from such Property for the entire quarter in the foregoing calculation. If a Property is no longer owned as of the l...

Value of Unencumbered Assets means, as of any date, the sum of (A) the amount determined by dividing the Net Operating Income for each Project which is an Unencumbered Asset as of such date for a calculation period which shall be either the immediately preceding two full fiscal quarters or, if so requested by Borrower or Lender, the one immediately preceding full fiscal quarter and the then current partial quarter (in all cases as annualized) by 0.095, provided that not more than 15% of the Value of Unencumbered Assets shall be attributable to Unencumbered Assets which are ground leased, PLUS (B) for each Pre-Leased Project Under Construction, 100% of the then-current book value, as determined in accordance with GAAP, of such Pre-Leased Project Under Construction, provided that the aggregate amount added to value under this clause (B) shall not exceed $50,000,000. If a Project has been acquired during such calculation period then Borrower shall be entitled to include pro forma Net Operating Income (based on leases in existence at the date of such acquisition) from such Project for the entire calculation period in the foregoing calculation, except for purposes of the financial covenant comparing the Net Operating Income from Unencumbered Assets to Consolidated Interest Expense under SECTION 6.21(iv). If a Project is no longer owned as of the date of determination, then no value shall be included based on capitalizing Net Operating Income from such Project, except for purposes of such financial covenant comparing the Net Operating Income from Unencumbered Assets to Consolidated Interest Expense under SECTION 6.21(iv).

Value of Unencumbered Assets as of any date, means the gross book value, as determined in accordance with GAAP, of all Unencumbered Assets owned by the Borrower or any of its Subsidiaries as of such date.

Value of Unencumbered Assets means, as of the end of a quarter, the value of all Unencumbered Assets as of such date (other than those that are not approved by the Required Lenders), determined by capitalizing the Property Operating Income for such quarter (as annualized) from such Unencumbered Assets at a rate of 9.0%. The Required Lenders shall have the right to approve assets which are included in the determination of the Value of Unencumbered Assets. A Project may be approved by the Required Lenders as an Unencumbered Asset even if it is subject to an agreement which requires the Borrower or one of its Subsidiaries to indemnify a prior owner of such Project for tax liability incurred by such owner in connection with a sale of such Project by Borrower in a taxable transaction prior to the expiration of specified time period, so long as in determining Value of Unencumbered Assets the Borrower’s good faith estimate of such potential indemnification liability is deducted from the value of such Project. The substitution or addition of new assets shall also be subject to the

Value of Unencumbered Assets means, as of any date, the sum of (a) the value of all Unencumbered Assets that are not assets under development under GAAP (determined in the manner set forth below), plus (b) any cash on deposit with a qualified intermediary with respect to a deferred tax-free exchange plus (c) 100% of the then current book value of each Preleased Asset Under Development that is also (i) an Unencumbered Asset and (ii) 100% leased at market rates to third party tenants similar to those at Borrower’s other Projects, plus (d) 100% of the then current book value of each Presold Asset Under Development that constitutes an Unencumbered Asset, plus (e) 50% of the then current book value of each other asset under development under GAAP that constitutes an Unencumbered Asset provided that the aggregate amount added to Value of Unencumbered Assets from the items forth in clauses (b), (c), (d) and (e) shall not exceed 10% of the total Value of Unencumbered Assets. Unencumbered Assets that are not assets under development under GAAP shall be valued by dividing the Property Operating Income for such Project for the most recent four fiscal quarters by the Applicable Cap Rate. If a Project has been acquired during such calculation period then Borrower shall be entitled to include pro forma Property Operating Income from such property for the entire calculation period in the foregoing calculation, except for purposes of the financial covenant comparing the Property Operating Income from Unencumbered Assets during a quarter to Debt Service for such quarter. If a Project is no longer owned as of the date of calculation, then no value shall be included based on capitalizing Property Operating Income from such Project, except for purposes of such financial covenant comparing the Property Operating Income from Unencumbered Assets during a quarter to Debt Service for such quarter.

Filter & Search

Related Definitions