Investing in real estate investment trusts (REITs) can be a whole new ball game with all the various jargon that one needs to understand. Terms such as AEI, NLA, and WALE may seem foreign to new investors. But fret not, we are here to help to make sense of the different REIT jargon with this one-stop glossary. Good, or good?  Let’s dive right in! Commonly-Used Terms That REIT Investors Must Know

Accretive acquisition

An accretive acquisition is a property purchase by a REIT which increases its distribution per unit (DPU), net asset value (NAV) and/or distribution yield. The opposite of this is a dilutive acquisition.

AEI: Asset enhancement initiative

AEI refers to the revamping of a property to enhance its value, and hence, its rental income. They are commonly carried out by retail REITs to constantly refresh the malls to attract shoppers and tenants alike. AEIs can be done by:...