Glossary of Terms

Credit Tenant Lease 2015-11-10 08:00:00

Credit Tenant Lease

A method of financing real estate where the landlord borrows money to purchase the property and pledges the rent to be received from the tenant as security.

Credit Tenant Lease financing is based on the credit quality of the tenant and lease structure in order to establish the cost and terms of borrowing. Credit tenant lease financing can often provide higher leverage and lower debt service coverage ratios compared to traditional mortgages. Also known as CTL Financing.