ALE Property Group (ASX:LEP) holds 86 pub properties, most of them in Melbourne and Brisbane. They are all leased to a company called ALH which is the leading pub operator in Australia.
We have triple net leases where they pay most of the outgoings, the land tax, the insurance, the rates and the maintenance on the properties. We receive from ALH on the first day of each month for all 86 properties, one payment which is a fixed dollar rental payment, which increases annually by CPI.
The term of the leases was originally 25 years in 2003, it has got 12 years left to run, plus four 10-year options for ALH to extend to potentially another 52 years of income.