Weighted Average Lease Term
WALT. The weighted average remaining lease term across a real estate portfolio, weighted by base rent or by leased square footage. A portfolio with a 12-year WALT and investment-grade tenants is materially safer than a portfolio with a 3-year WALT and small-business tenants even if both portfolios show the same headline cap rate. WALT is one of the most important disclosures in REIT 10-Ks; investors should look it up alongside the tenant credit-rating distribution before trusting any stated cap rate.
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Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
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