So I wrote in to First REIT’s in the past to enquire about earthquakes and inflation, 2 very common thing in Indonesia. Victor from First REIT gave me a good breakdown on that here.
One of my readers Nick mentioned that Parkway Life REIT have a somewhat uncapped inflation protection mechanism. This means that the rent lease escalation of ParkwayLife REIT tracks inflation well.
So we know that Singapore’s inflation have been fluctuating at around 5%, Parkway Life REIT’s growth this year have been 5.3% as well. Perhaps that is why it is so resilient in these tough times.
So is this the same as First REIT? I know that they have an inflation rent lease escalation mechanism in placed as well, but it seems to be capped at 2%. I queried Victor again to see if it is the case.
One thing I gotta hand it to Victor ......