Weighted Average Lease Expiry (WALE)
WALE measures the average remaining lease term across a portfolio weighted by rental income, indicating tenant retention stability and near-term rollover risk.
| WALE Calculation | Formula |
| Step 1 | Multiply each lease term remaining by its annual rent |
| Step 2 | Sum all (term times rent) products |
| Step 3 | Divide by total portfolio annual rent |
| Example: Tenant A | 5 years remaining, AED 1M rent = 5M |
| Example: Tenant B | 3 years remaining, AED 2M rent = 6M |
| WALE | (5M plus 6M) / (1M plus 2M) = 3.67 years |
| WALE Interpretation | Significance |
| Long WALE (7+ years) | Stable income, low rollover risk |
| Moderate WALE (4 to 7 years) | Balanced, manageable rollover |
| Short WALE (under 3 years) | High rollover risk, income uncertainty |
| Investor preference | Institutional buyers favor WALE over 5 years |
| Impact on value | Longer WALE supports higher valuation |
| Lease management | Stagger renewals to avoid cliff rollover |
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