REIT maintenance capex rule of thumb(s)?

[tede02]

Doing some research in the REIT space (as a novice).  Are there any general rules of thumb for maintenance CAPEX on REITs as a percentage of depreciation?  I imagine it varies at some level based on the type of real estate.  Thanks in advance. 

[LongHaul]

Good question and I would be careful on your assumptions.

 

On the low end for apartments and triple net retail I would assume at least $1 a square foot.  That could easily be more.

Malls can be a lot more.  Office buildings can be very high with Tenant improvements, maint capex, etc.

It is worth understanding the nature of the leases and what a landlord is responsible for.  Roof, HVAC, parking lot, etc all have limited lives.  The tooth fairy is not going to pay for these things so one has to take them into consideration in their valuation as opposed to some EBITDA calcs. 

 

I generally find FFO to to be a garbage # if it doesn't account for a full load for main capex.  Most reits that I have looked at seem to lowball their true maint capex so I think one has to be careful.