What is WAULT in UAE property?

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WAULT, the weighted average unexpired lease term, is the average time left on the leases in a building or portfolio, weighted by the rent each lease pays and given in years. A large tenant’s lease counts for more than a small one’s. Commercial property uses it to judge how secure the contracted rent is. Multiply each lease’s remaining years by its annual rent, add the results and divide by the total rent. WAULT to expiry runs each lease to its end date. WAULT to break stops at the first date the tenant can legally leave, so it is never longer, and it is the form INREV, the European association for investors in non-listed real estate, defines. A vacant unit pays no rent and adds nothing. In the US the measure usually goes by WALT. Dubai commercial leases are commonly 1 to 3 years and registered in Ejari. ENBD REIT, listed on Nasdaq Dubai, reported a portfolio WAULT of 3.56 years at 30 June 2019.

WAULT

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