income stream

Income Stream

The money a company generates on a regular basis. For example, a company may have a steady income stream from its primary client, and periodic revenue from other, smaller clients. An income stream connotes steady pay. See also: Cash flow.

income stream

A steady flow of money from a property.When evaluating the property, one has to evaluate the strength and durability of the income stream.

Example: Is the tenant a national tenant with good financial strength, excellent prospects for continued health, and a 20-year lease on the property with rent adjustments annually to reflect cost-of-living increases, or is the tenant a start-up business with a 1-year lease in an area already saturated with similar businesses? Those two income streams are markedly different from each other.

References in periodicals archive ?
Our trust department often advises a CEO to establish a CRT, which allows him to give an asset to a favorite charity or institution, secure a tax deduction, avoid capital gains and receive an income stream for life--or after retirement.
Also, the stabilized income stream from an income-producing property can be compared to the stable income from a comparable investment such as a U.
Pre-Income Stream Flexibility -- There is broad flexibility for clients to change the income start date; select or change multiple income stream start dates; increase or decrease income stream(s); or opt in or opt out of income stream(s).
the less a client might need his or her additional income stream guaranteed.
In November 2006, Prudential Financial launched Highest Daily Lifetime Five, which guarantees an annual 5% income stream for life based on 5% annual compounded growth on the highest daily protected value.
But when the corporate sector starts paying down debt while the household sector continues to save, a leakage to the income stream equivalent to the sum of household savings and corporate debt repayment is created.
Paul then sells his business to the Company for $5 million, payable as a lifetime income stream.
In this context, they are considered a financial "product" and can serve a variety of functions, such as providing a constant income stream to a retiree, as a device to accumulate money on a tax-deferred basis, or to provide pension benefits to retirees.
The company claims that the product "will accurately and automatically determine a business' fair market value and structure the market financing needed to assure that the final determination of value doesn't exceed the business/income property's ability to simultaneously: support its structured debt service; pay a fair market value to the owner (based on industry standards); pay a fair market return on the investment; and structure the required financing around the business/income property's ability to generate a spendable income stream.
Clearly, earns and turns drive the income stream in the DuPont Model.
TEI is willing to work with the IRS to devise such rules for income stream hedges including, for example, a mark-to-market regime for the hedge upon early disposition of the property being hedged.