Property companies can make use of a variety of derivative instruments for protection against interest rate fluctuations.

As previously stated, the value of a property can be derived by determining the present value of the future income stream. But which discount rate should be used to reduce a future value to a present value?

As stated in last week's column, when money grows in total, it is said to be accumulating. When it reduces in value, it is said to have been discounted. The principle of accumulation was then discussed. Let us now look at discounting values.

Simply compound your good fortunes.

Know basics before signing on dotted line.

Giving real estate another dimension.

Ensuring your company is in a strong position when new lea-ses and lease renewals or rent reviews are negotiated and monitoring lease-related costs during the currency of a lease agreement pays off.

Holding out for future benefits.