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.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.

4 thoughts on “CAPEX”
  1. […] 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 […]

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