Capital Structure and Fees
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fix(index-topics): simplify all 7 Index Topics to brief, high-level navigation (Track-B operator directive) — this is a first/rough version, not a polished draft; stripped inferred rationale, causal framing, and connective interpretation from every lead and group intro; removed or minimized specific securities-law citations (NI 51-102, NI 52-110, NI 45-106, NP 58-201, NI 58-101, CSA National Policy 51-201) per operator direction to cite law only on direct need; trimmed See-also lists to 1 essential link each; EN+ES across reference, company, investments, financial-model, distributions, governance, risks
@@ -17,26 +17,19 @@ editor: woodfine-editorial paired_with: _index.es.md --- Under the Narrow Banking Model, buildings are intended to be built with equity and no construction debt, and borrowing is intended to begin only once a building is leased. The Financial Model covers that financing discipline, the compensation structure designed to keep the developer's capital at risk alongside the investor's, and the methodology used to value and forecast. Content is structural — how the model is designed to work — not a projection of any particular building's economics or a guarantee of any financial outcome. The Financial Model covers the group's financing discipline, compensation structure, and valuation and forecasting methodology. <!-- START-HERE-HIGHLIGHT: engine reads this block to render the single "start here" card (reuses the existing cluster-card--start-here component). Do not add more than one. --> **Start here:** [[narrow-bank-financial-model|Narrow bank financial model]] — the two-phase financing rule that every other article in this category assumes. **Start here:** [[narrow-bank-financial-model|Narrow Bank Financial Model]] <!-- END-START-HERE-HIGHLIGHT --> ## Financing discipline When debt enters a building's life and on what terms: the equity-funded construction phase, the mortgage debentures placed after lease-up, and the coverage tests that constrain how much can be borrowed. How and when debt is used in a building's financing. <!-- AUTO-GENERATED MEMBERSHIP: DO NOT EDIT BELOW — regenerate from index_group: financing-discipline --> - [[narrow-bank-financial-model]] — Two-phase financing discipline of the Direct-Hold Solutions: equity-funded unlevered construction, then First Secured Mortgage Debentures collateralized by the completed buildings. @@ -45,8 +38,7 @@ much can be borrowed. ## Compensation and alignment What the developer is paid and when: profit taken as equity held in trust until investor capital is returned, in place of the conventional 2-and-20 management and performance fee. How the developer is compensated. <!-- AUTO-GENERATED MEMBERSHIP: DO NOT EDIT BELOW — regenerate from index_group: compensation-and-alignment --> - [[principal-alignment-fee-preservation]] — Compensation model replacing the 2/20 structure: developer profit taken as equity held in trust until investor capital is returned, plus a fixed annual overhead contribution. @@ -54,9 +46,7 @@ capital is returned, in place of the conventional 2-and-20 management and perfor ## Valuation and forecasting methodology How value and forward figures are arrived at: the three-method estimate for the parent holding company, the IFRS basis on which a vehicle-level forecast is built, and the stress scenarios run against the interest-coverage covenant. How value and forward figures are estimated. <!-- AUTO-GENERATED MEMBERSHIP: DO NOT EDIT BELOW — regenerate from index_group: valuation-and-forecasting-methodology --> - [[holding-company-valuation-methodology]] — The three-method framework — price/earnings, earnings-yield, and book value — used to model a composite fair-value-per-share estimate for the parent holding company, distinct from asset- and vehicle-level valuation. @@ -64,12 +54,7 @@ scenarios run against the interest-coverage covenant. - [[sensitivity-and-stress-test-methodology]] — How Direct-Hold Solutions model interest-rate, occupancy, and development-yield stress against the interest-coverage covenant. <!-- END AUTO-GENERATED --> What a unit holder is actually paid, and when a distribution is withheld, is covered under Distributions and Transfers. ## See also - [[distribution-declaration-mechanics|Distribution declaration mechanics]] — the coverage gate applied before any distribution is declared - [[financing-and-interest-rate-risk|Financing and interest rate risk]] — what happens if refinancing terms move against the model - [[cre-financial-metrics|CRE financial metrics]] — definitions of NOI, DSCR, LTV, ICR, and the other measures used here - [[non-ifrs-measures-explained|Non-IFRS measures explained]] — how these supplementary measures relate to IFRS statements - [[distribution-declaration-mechanics|Distribution Declaration Mechanics]] - [[cre-financial-metrics|CRE Financial Metrics]]