WALE

WALE (weighted average lease expiry) — the average years until a REIT’s current leases run out, weighted by rent. A WALE of 6+ years means the cash flow is contracted well into the future; under 3 means a large slice of income must be re-signed soon at whatever the market then offers — in an oversupplied office market, lower. Pair it with escalation clauses (fixed annual rent step-ups, typically ~5%) — the inflation protection written inside the leases. Disclosed in REIT investor presentations and annual reports on PSE EDGE.

First used in: 2.2 · REITs: landlord without tenants