do reits own the assets or rent them ? - Printable Version
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+--- Thread: do reits own the assets or rent them ? (/Thread-do-reits-own-the-assets-or-rent-them)
do reits own the assets or rent them ? - talky - 03-04-2022
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?
RE: do reits own the assets or rent them ? - Galilo_l - 03-04-2022
https://www.moneysense.gov.sg/articles/2018/10/understanding-real-estate-investment-trusts-reits
RE: do reits own the assets or rent them ? - sgbuffett - 03-04-2022
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.