Definition of Net Operating Income From Unencumbered Assets
Net Operating Income From Unencumbered Assets means, as of any Calculation Date, for any income producing operating Unencumbered Asset, the difference between (a) any rentals (other than those paid or payable other than in cash), proceeds and other income received from such property, including all pass-through reimbursables and percentage rent (but excluding security or other deposits, until applied, early lease termination payments that are in excess of one percent (1%) of the aggregate amounts under this subclause (a), or other penalties, or other income of a non-recurring nature) during the determination period, less (b) an amount equal to all costs and expenses (excluding interest expense, income taxes and any expenditures that are capitalized in accordance with GAAP) incurred as a result of, or in connection with, or properly allocated to, the operation or leasing of such property during the determination period; provided, however, that the amount for the expenses for the management of a property included in clause (b) above (1) shall be set at three percent (3%) of the amount provided in clause (a) above and (2) exclude any actual expenses for the management of a property that would otherwise be included in clause (b) above. Net Operating Income From Unencumbered Assets shall be calculated on a consolidated basis in accordance with GAAP, and include (without duplication) the Equity Percentage of Net Operating Income From Unencumbered Assets for the Borrower's Unconsolidated Affiliates.
Examples of Net Operating Income From Unencumbered Assets in a sentence
Borrower shall not permit, as of any date of calculation, the ratio of Adjusted Net Operating Income From Unencumbered Assets for the twelve-month period ending as of the most-recent Calculation Date to Indebtedness as of such Calculation Date to be less than twelve percent (12.0%).