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| CAGR | Compound Annual Growth Rate representing the smoothed annualised gain earned over the investment time horizon.
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| Capital employed | Value of all the assets, including equity and preference share capital, fixed and current assets and gross borrowings, less current liabilities.
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| Capital recycling | The sale of larger assets such as sales of stakes in shopping centres or co-investments in funds.
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| Cash basis accounting | The method of accounting that recognises income and expenses when money is actually received or paid.
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| Cash flow | Revenue income assumptions of a Discounted Cash Flow model.
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| CPI | Consumer Price Index.
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| DCF | Discounted Cash Flow - analytical technique used to appraise projects that takes into consideration the time value of money.
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| Discount rate | Applied to cash flows in DCF to determine the Net Present Value of a project. Also known as the required return or hurdle rate.
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| EBITDA | Earnings Before Interest, Tax, Depreciation & Amortisation tells an investor how much money a company would have made if it didn’t have to pay interest on its debt, taxes, or take depreciation and amortisation charges.
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| Gross income | The total amount of income actually invoiced during a reporting period.
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| IIF | Incident & Injury Free - core component of the Lend Lease Group vision and commitment to proactively work with all stakeholders including clients, designers, contractors and the workforce regarding workplace safety.
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| Investment income | Represents the company’s share of income from investments net of direct expenses and allocated overheads, excluding property investment revaluations.
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| IRR | Internal Rate of Return - the rate of discount on an investment that equates the present value of the investment's cash outflows with the present value of the investment's cash inflows.
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| NOI | Net Operating Income - income from a property or business after operating expenses have been deducted, but before deducting income taxes and financing expenses.
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| Operating profit | Revenue from a company’s regular activities less costs and expenses and before taxes and extraordinary items resulting from transactions other than those in the normal course of business.
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| ROCE | Return on Capital Employed - a ratio that indicates the efficiency and profitability of company’s capital investments.
Calculated as: Earnings Before Interest and Tax, divided by Total Assets net of Current Liabilities
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| ROE | Return on Equity - a measure of profitability that reveals how much profit a company generates with the money shareholders have invested. It is calculated by dividing common stock equity (net worth) at the beginning of the accounting period into net income for the period before common stock dividends.
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| Statutory profit | The legal profit after tax reported by an entity includes all revenues, expenses, tax and all company charges.
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| WACC | Weighted Average Cost of Capital - WACC is the average cost of interest-bearing debt, preferred stock, and equity.
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