Reits with leasehold properties


#1

You know like hdb flats most reits hold the property as leasehold, often 99 years.

I am doing homework on the first reit report I am reading which states the property is measured at cost and thereafter fair value.

I guess they will probably do maintenance from time to time to enhance the buildings. But given that there is no depreciation, then I guess lease decay will come in at some point in time.

Would you fret over lease decay?


#2

yes of cos, lease has to be renewed. that is the for counters such as lippo mall