amortization
/əˌmɔːrtəˈzeɪʃən/
Definition
The process of gradually writing down the cost of an asset or paying off a debt over a specific period through scheduled installments.
Etymology
Derived from the Medieval Latin 'amortizare,' meaning 'to alienate in mortmain' or 'put to death.' It evolved in finance to describe 'killing off' a debt or asset value incrementally over time.
In the news
While the article focuses on large-scale property investments, understanding amortization is essential for investors to calculate how the initial costs of expensive data center assets are recovered over the life of long-term leases. It helps define the 'return profile' that companies like Realty Income use to justify these capital-intensive projects.
Realty Income Forms Programmatic Joint Venture with Cloud Capital and a Global Institutional Investor to Invest in Hyperscale Data Centers; Initial Seed Assets Valued at Over $6 Billion
Read the full article ↗PR Newswire