Index Data Point

Definition

WALT

Measures the average lease length for a portfolio, granting a bias for tenants’ with a greater rent roll.

Vacancy rates

Measures the volume of vacant units.

Average days to pay rent

Represents the median number of days tenants paid their rent in full, after the rent due date.

Debtors as a percentage of rent roll

The value of current outstanding rent arrears as a percentage of the total annual rent roll.

Average lease lengths

The median length of leases, represented in Years and Months

Premature lease terminations

Measures the proportion of tenant’s that ended their lease before the original expiration date compared to the total volume of leases that expired in the reporting month.

CREDIA Magic Number

Rent Collection is traditionally measured on an aged basis, using 7 days, 14 days and 21 days as yardsticks for performance. Using these fundamentals, the CREDIA Magic Number assesses rental collection at each of these stages and applies a scaling multiplier, landing on a score from 0 to 10. A lower score indicates poor rental collection efficiency, while a high score indicates successful debtor management with much of this occurring within a short time span of rent being due.

Average %  rent commission/management fee

The median % management fee that managing agents charge as a commission of rent collected.

Arrears growth

The % increase or decrease of total rent arrears measured against the prior month.

Lease break execution

Measures the proportion of lease break options that were executed against the total number of lease break options that were available to tenants.

Lease length duration variances

The % increase or decrease of lease lengths measured against the prior month

Average time to first rent review

A measure of the median length of time from the lease start date to first rent review date. Does not include fixed uplifts/stepped rents.

Average time to first lease break option

A measure of the median length of time from the lease start date to the first lease break option date.

% of rent credited during a period

Measures the proportion of rent that has been credited against the total rent due in the month.

Average rent per m2

Average annual net rent per m2 charged for all tenancies.

Rental growth

The % increase or decrease of total rent per m2 measured against the prior month.

Potential tenant vacancy risk

Measures the proportion of all tenancies who are on a rolling lease or are “holding over”. This presents a risk of future vacancy or voids as the tenant is not under contract.

Average Rent Review Increase

Measures the median % increase in rent from all executed rent reviews.

Average days to pay creditors

The average number of days that expense/supplier invoices are paid after the due date.

Bad debt early indicator

Measures the proportion of current arrears that are owed by tenants that no longer have a current lease and have since vacated the property.