In our universe of Real Estate Investment Trusts (REITs), the REITs can be structured in different ways.
There is a few areas of differentiation
Property Types. You have REITs investing in retail malls, commercial offices, overseas commercial offices, local industrial, local and overseas industrial, healthcare, data centers, hotels, hotels and service apartments, or a mixture of these.
Tenant Lease Tenure. WALE stands for weighted average lease expiry, which measures the average time period in which all leases in a property will expire. For a long time, the local properties have a relatively short lease. The overseas properties market tends to have a longer lease.
Expenses Structure. The Property Owner and their tenants pay different set of expenses:
- Gross Lease: The property owner pays the property taxes, insurance, and maintenance. The tenant pays the flat fee in rent and operating costs
- Double Net Lease (NN): The property owner pays …