26-07-2011, 02:16 PM
I think REITs used fair valuation so I am certain that when there is less than 10 years worth of lease and no renewal is on the table, the asset value and hence the NAV will dip accordingly. Alternatively, they might have to top up with a land premium and guess where the cash will come from ! I think those with Chinese assets might face this problem in the near future - CRCT assets lease expires in 3 decades time !
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