Triple-Net Lease
A lease structure in which the tenant pays property taxes, building insurance, and maintenance expenses on top of the base rent -- the three nets. The landlord receives base rent and almost nothing else, with a cash flow profile that closely resembles a corporate bond coupon. Long-dated triple-net leases with investment-grade tenants are functionally bonds wrapped around buildings; the cap rate on such an asset is best read as a credit spread over Treasuries rather than as a pure real estate return.
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Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
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