Shares & Derivatives
REIT Long Lease Rental Issue – Dispute of Agreements: Cache Logistics Trust Case Study
By Investment Moats  •  September 8, 2016
Many investors favor investing in real estate investment trusts (REIT) with strategic properties that tie in tenants on long leases. There is certainly an appeal:
  1. Good Counterparty – You lock in someone who has the ability to pay good rent for a long time
  2. Reduces the risk to consistently source for tenants
  3. Longer term lease (5 to 10 years) tend to have build in CPI or inflation escalation
  4. If its a large component of your portfolio, this tenant drives earnings
However, there are also complications that we might not be aware of. Cache Logistics Trust, which is an industrial REIT (dividend yield 8.6%) is currently embroiled in a legal dispute with C&P Land, their master lease tenant and Schenker, the main tenant of their master lessor on their warehouse in Airport Logistics Hub. As an investor, it is good to follow the SGX > ......
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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