What does Walt mean in real estate?

Weighted Average Lease Term
A metric in commercial real estate that measures how much contract rent is remaining at the property. Specifically, the WALT measures the weighted average remaining contract lease term for all tenants at a property.

How do you calculate Walt?

I know WALT is the sum of individual tenant rent (economic rent) divided by total rent multiplied by remaining lease term.

How do you interpret Wault?

Simplistically, a low WAULT might be good news in an environment where rents are rising fast and the property is in a strong negotiating position. A higher WAULT is good news in weak property markets where rents are falling and/or tenants are looking to move.

How do you calculate weighted average remaining lease?

Multiply each lease liability balance by the corresponding remaining lease term. This amount is then divided by the sum of the lease liability at year-end to arrive at the weighted-average remaining lease term for both operating and finance leases, respectively.

What is Walt commercial property?

A WALE (weighted average lease expiry) is a way of measuring the average period in which all leases in a property or portfolio will expire. This term is used by banks, commercial property investors, and valuers. The WALE is a very important measurement for owners of commercial properties to estimate the vacancy risks.

What does Walt mean in finance?

weighted average remaining lease term
WALT means weighted average remaining lease term.

What is a good Wale?

A long WALE of five years or more indicates income streams are secure well into the future. “On the other hand, a short WALE of one to three years indicates a greater rollover of leases in the short term where leases expire and tenants make decisions about whether to stay or move.”

How is WAULT calculated example?

A WAULT is simply the product of currently contracted rental income between now and the time the leases expire for any given tenant, summed across tenants, and then divided by the total annual income of the property or portfolio being studied. The result is expressed in years.

How are remaining terms calculated?

The remaining term refers to the number of months still outstanding on a loan. To calculate the remaining term, one simply deducts the number of payments made from the original term. The original term refers to the number of payments required to pay off the loan.

What is a good weighted average lease expiry?

If the WALE hit 3 years or below it’s an indication that the REITs managers failed to renew its lease agreement with the current tenants or find a replacement. A WALE with less than 3 years is generally bad, with an exception of Commercial Trust.

What Walt means?

obsolete English dialect walt to overturn, tumble, totter, from Middle English walten; akin to Old English weltan, wæltan to turn, roll.

Is Walt a word?

No, walt is not in the scrabble dictionary.