Here is a list of commonly-used REIT terms that you should know before you purchase them.
Asset enhancement initiatives (AEI)
Asset enhancement initiatives (AEI) refer to projects taken by the REIT manager to enhance the attractiveness of its properties, in the hopes that the assets can generate greater revenue after the enhancement.
Examples of AEIs include renovation or refurbishment.
Accretive acquisition
When an acquisition increases the distribution per unit (DPU) of a REIT, it is known as an accretive acquisition.
Acquisitions are typically accretive when the net property income (NPI) yield of the asset is greater than the financing cost involved in funding the acquisition.
An example of an accretive acquisition by Keppel REIT (SGX: K71U) can be found HERE.
Assets under management (AUM)
Assets under management, or AUM, refers to the total market value of the properties managed by the REIT.
Built to suit
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