Propco

AAA

DEFINITION of 'Propco'

An abbreviation for property company. Propcos are most often used to describe a subsidiary company that exists to hold or own a parent or operating company's income-generating real estate. The property company owns all of the real estate and related debt, providing the parent or operating company with advantages related to financing and credit rating issues.

INVESTOPEDIA EXPLAINS 'Propco'

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

RELATED TERMS
  1. Investment Real Estate

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

    A legal document outlining the terms under which one party agrees ...
  3. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
  4. Real Estate Investment Trust - ...

    A security that sells like a stock on the major exchanges and ...
  5. Subsidiary

    A company whose voting stock is more than 50% controlled by another ...
  6. Business Broker

    A professional who specializes in the purchase and sale of companies. ...
Related Articles
  1. Add Some Real Estate To Your Portfolio
    Mutual Funds & ETFs

    Add Some Real Estate To Your Portfolio

  2. Real Estate Speculation In College Towns
    Personal Finance

    Real Estate Speculation In College Towns

  3. The REIT Way
    Options & Futures

    The REIT Way

  4. How To Assess A Real Estate Investment ...
    Home & Auto

    How To Assess A Real Estate Investment ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center