REITs Flashcards
what is a REIT?
a company which builds, owns and rents/sells investment property which people can invest in via the JSE
staff in a REIT?
- ## must have a risk comm
effects of REITs on foreign SH?
is a dividend for them essentially and they are subject to DWT
staff in a REIT?
- ## must have a risk comm
staff in a REIT?
- must have a risk comm
- low number of high quality staff
staff in a REIT?
- ## must have a risk comm
staff in a REIT?
- must have a risk comm
- low number of high quality staff
risks associated with the income from a REIT?
generally very stable (rental income) but subject to economic and social issues in the economy
listing rules for REITs?
- at least R300m in property
- debt must be <60% NAV
- earn 75% inc from rental and pay 75% inc as a distribution
loan to value formula?
loan (debt - cash - derivatives) / value (assets - cash - rec - GW - derivatives)
what does loan to value measure?
leverage
what is DIPs?
distributable income per share
(cash net profit)
who is responsible for utility costs in REITs?
shareholder
what is a cap rate?
market yield on a specific property
costs to income of a REIT?
costs (admin and property) / income (rental income and recoveries)
how to value a property company?
net rental over cap rate
what are trading densities?
measure of efficiency of let space
rental reversions?
when rent goes down upon renewal, usually there is space in the contract for changes in monthly rent
unlet space?
vacant
GLA?
gross lettable area
total area that can be let
how to calculate vacancies?
unlet space / GLA
risks associated with the income from a REIT?
generally very stable (rental income) but subject to economic and social issues in the economy
