Rent Coverage Ratio Clause Samples
The Rent Coverage Ratio clause defines a financial metric used to assess a tenant's ability to meet rental payment obligations relative to their income or revenue. Typically, this clause requires that the tenant maintain a minimum ratio of net operating income to rent, such as 1.2:1, meaning the tenant must generate at least $1.20 in income for every $1.00 of rent owed. This ensures that the landlord has a measure of financial security, as it helps confirm the tenant's ongoing ability to pay rent and reduces the risk of default.
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Rent Coverage Ratio. The Credit Parties shall cause the Rent Coverage Ratio, as of the end of each fiscal quarter, to be equal to or greater than 1.30 to 1.00. Notwithstanding the foregoing, to the extent that the Rent Coverage Ratio as of the end of any such fiscal quarter is less than 1.30 to 1.00, such violation shall not constitute a Default or Event of Default so long as within thirty (30) Business Days from the delivery of the information required pursuant to Section 6.02(b) and (c), the Parent Borrower delivers to the Administrative Agent a new Borrowing Base Certificate removing one or more Borrowing Base Assets from the calculation of the Borrowing Base Amount as necessary for the Credit Parties to comply with such Rent Coverage Ratio.
Rent Coverage Ratio. Only so long as the Real Property Assets leased to Ensign comprise not less than twenty percent (20%) of the Net Revenue for all Real Property Assets subject to a triple-net lease, the Loan Parties shall cause the Rent Coverage Ratio, as of the last day of each Fiscal Quarter, to be equal to or greater than 1.5 to 1.00 (it being understood for the avoidance of doubt that the Rent Coverage Ratio shall not be tested for any Fiscal Quarter during which the Real Property Assets leased to Ensign comprise less than twenty percent (20%) of the Net Revenue for all Real Property Assets subject to a triple-net lease.
Rent Coverage Ratio. Borrower shall maintain a rent adjusted senior funded debt to EBITDAR ratio of no more than 4.25 to 1 for the fiscal year ended December 31, 1998; 4.00 to 1 for the fiscal year ended December 31, 1999; and 3.5 to 1 for the fiscal year ending December 31, 2000 and years thereafter. This is defined as ((Funded Debt minus Subordinated Debt) plus (operating lease expense times 8)) divided by (EBITDA plus lease expense other than Capital Lease expense), computed on a rolling four quarter basis. Environmental Matters
Rent Coverage Ratio. The Lessee shall comply with the provisions of the Agreement Regarding Related Lease Transactions pertaining to Rent Coverage Ratio.
Rent Coverage Ratio. 62 11.3.2 [Intentionally Omitted]......................................................62 11.3.3 [Intentionally Omitted]......................................................62 11.3.4 [Intentionally Omitted]......................................................62 11.3.5 Current Ratio - Guarantor....................................................62 11.3.6 Net Worth of Guarantor After a Permitted Transaction or Permitted Merger.............................................................63 11.3.7 Tangible Net Worth - Guarantor...............................................63 11.3.8 No Indebtedness..............................................................63 11.3.9
Rent Coverage Ratio. Commencing with Lease Year 4, Tenant shall maintain for each fiscal quarter a Rent Coverage Ratio of not less than 1.25 to 1.00.
(a) If Tenant fails to achieve the Rent Coverage Ratio required under Section 15.7.2 above, [i] such failure shall not be an Event of Default hereunder if on the measurement date, Tenant has achieved a Rent Coverage Ratio of at least 1.10 to 1.00; and [ii] Landlord shall have the right to engage a consultant at Tenant's cost to review and make recommendations concerning the operations of the Facility. Landlord and Tenant shall mutually determine which recommendations of the consultant shall be implemented by Tenant.
(b) If the Rent Coverage Ratio is less than 1.10, such failure shall not be an Event of Default hereunder if on the measurement date, Tenant either [i] pays Landlord an amount equal to that which would cause the Rent Coverage Ratio to be equal to 1.10 ("Coverage Amount") which payment will be applied by Landlord to reduce the Lease Amount, or [ii] provides a Letter of Credit to Landlord in an amount equal to the Coverage Amount. Landlord's rights in connection with the Letter of Credit shall be governed by Article 20 of this Lease. Upon Tenant's achievement of a Rent Coverage Ratio of at least 1.10 to 1.00, Landlord shall return any Letter of Credit delivered to Landlord pursuant to this Section 15.7.2(b) to Tenant.
Rent Coverage Ratio. The Rent Coverage Ratio shall not be less than 1.05 to 1.00 for each of the first four Test Periods (i.e., the Test Periods ending on December 31, 2015, March 31, 2016, June 30, 2016, and September 30, 2016) and thereafter shall not be less than 1.10 to 1.00 for each of the following Test Periods. For purposes of the covenants set forth in this Appendix A, the terms listed below shall have the following meanings:
Rent Coverage Ratio. During the Lease Term, Tenant, in aggregate with Guarantor, shall maintain a Rent Coverage Ratio (as defined herein) of no less than 1.0 to 1.0, for the three month period ending March 31, 2004, and for the three month period ending April 30, 2004 and for each rolling three-month period ending as of the end of each month thereafter. “Rent Coverage Ratio” shall mean, for Tenant and Guarantor on a combined basis, the ratio of (i) all pre-tax net income, plus (A) all rent payable under all leases for any real property and improvements (“Aggregate Rent Obligations”), plus (B) depreciation and amortization, plus (C) interest on mortgage debt, plus (D) owners’ compensation and bonuses minus the greater of: $500,000 or twenty-five one hundredths of one percent (0.25%) of revenue, plus (E) the annual LIFO adjustment; to (ii) the Aggregate Rent Obligations plus principal and interest payments on mortgage debt. The Rent Coverage Ratio shall be calculated at the beginning of each fiscal quarter on the basis of the information reported in and for the time periods covered by the Internal Statements and Audited Annual Statements (as defined in Section 10.1(d)), as applicable.
Rent Coverage Ratio. The financial covenant entitled "Rent Coverage Ratio of Lessee" or "Debt Coverage Ratio of Lessee" contained in any of the Sterling Leases shall be deleted in its entirety, and the Rent Coverage Ratio provisions of the $35,000,000 Meditrust Agreement or the $50,000,000 Meditrust Agreement, as applicable, shall control.
Rent Coverage Ratio. The ALS Parties covenant and agree that, throughout the Term and as long as the Lessee is in possession of any Acquisition Facility in a particular Acquisition Group, (a) the Group One Acquisition Facilities shall achieve an aggregate Rent Coverage Ratio equal to or greater than 1.2 to 1 for each Fiscal Year, (b) the Group Two Acquisition Facilities shall achieve an aggregate Rent Coverage Ratio equal to or greater than 1.2 to 1 for each Fiscal Year, and (c) the Group Three Acquisition Facilities shall achieve an aggregate Rent Coverage Ratio equal to or greater than 1.2 to 1 for each Fiscal Year. Within ninety (90) days after the end of each Fiscal Year, the Lessee shall furnish to the Lessor an express written calculation showing the