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.

Have a premium account? Sign in to continue reading.

Unlimited access to all stories from $4.99/month*

The latest reporting and analysis from business and investments to news and views on social issues.

Bonus:

  • Simultaneous logins across all devices
  • Instant access to past digital issues
  • Unlimited access to The Edge Malaysia
  • *For annual subscription plan only. T&Cs apply

SUBSCRIBE NOW