SINGAPORE (Jan 15): Master leases — in which landlords rent an entire building to a single tenant for several years — are seen as positive because they provide real estate investment trusts with income stability. This is especially so when an industrial REIT undertakes a “build-to-suit” property for a specific tenant, who takes up the lease for a long period. This arm’s length agreement provides unitholders of the REIT with stable distributions. Sometimes, REITs prefer a combination of master-leased and multi-tenanted properties in their portfolios.

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