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Common REIT Terms You Should Know Before You Buy
By The Smart Investor  •  October 8, 2021
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 Build-to-Suit developments are commercial properties built specially to accommodate the...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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