SG Talk

Full Version: do reits own the assets or rent them ?
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many yrs back >5 yrs ago ard july 2015   attended a seminar by Jeff Sun who said reits just pay the rents  do nt own assets.

but then why are there so many cash calling fr reits companies,do not need 100 millions  just to pay for rents  .right?
They owwn the properties lah.

However
1. Some propeortied are leasehold
2. They use debt to enhance returns.

If you have a 20yr leasehold that gives 6% returns it is actually very poor because the lease shortens by 5% per year. 20yrs later the liease expires so does the income.