CAPEX, or capital expenditures, refer to costs incurred to acquire, maintain or upgrade assets such as properties and machineries.
These include property rectifications, lifts and escalators maintenance, and building acquisitions.
In the context of REITs and real estate investments, CAPEX can also refer to costs incurred as a result of asset enhancement initiatives (AEIs) to repurpose or refurbish a building so that it can accommodate a better mix of tenants.
This entry is part of REITsWeek's glossary of REITs and real estate investment terms.
[…] related to interest and routine capital expenditures related to the maintenance of the property (CAPEX), while EBITDA does. (function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if […]
[…] them on to the tenants or lessees. As such, REITs with triple net leases enjoy a relatively lower CAPEX to REITs without a similarly favourable lease agreements, giving them the ability to return better […]
[…] REITs are also known to allocate a large amount of capital for CAPEX as compared to REITs of other classes. Mall owners have to continuously undertake property […]
[…] lastly but most importantly, Industrial REITs require modest capital expenditures, or CAPEX, in comparison to other REITs such as Retail REITs and Hospitality REITs. Unlike hotels and […]