An abbreviation for operating company. Opco is most often used to describe the main operating company that is involved in an opco/propco deal. The property company (propco) owns all of the real estate and related debt, providing the parent or operating company with advantages related to financing and credit rating issues.


This opco/propco type of arrangement allows the operating company to rent or lease property from its subsidiary. Sometimes the operating company will spin the subsidiary off as a real estate investment trust (REIT) for tax advantages.

  1. Real Estate Investment Trust - ...

    A REIT is a type of security that invests in real estate through ...
  2. Real Estate

    Land plus anything on it, including buildings and natural resources.
  3. Propco

    An abbreviation for property company. Propcos are most often ...
  4. Property

    1. Anything over which a person or business has legal title. ...
  5. Subsidiary

    A company whose voting stock is more than 50% controlled by another ...
  6. Investment Real Estate

    Real estate that generates income or is otherwise intended for ...
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