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An Arrangement in Which a REIT Collects a Stream of Rents

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An arrangement in which a REIT collects a stream of rents from a building owner,then makes a lower,and sometimes fixed,payment to the landowner:

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point. It measures the amount by which sales can decline before a business incurs a loss.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes towards covering fixed costs and then generating profit.

Operating Income

The income generated from the primary activities of a business, determined by deducting operating costs from the gross profit.

Selling Price

The amount a buyer pays to purchase a product or service from a seller.

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