What is characteristic of the cash flow profile in logistics?

The cash flow profile in logistics is characterized by long-term leases that create predictable cash flows. This is primarily due to the nature of logistics operations, where companies often require consistent, reliable spaces for warehousing or distribution that align with their operational needs. Long-term leases in this sector provide stability, allowing tenants to plan their operations and budgets over an extended period, thereby contributing to a steady stream of rental income for property owners.

These predictable cash flows are particularly advantageous for investors and finance professionals, as they can forecast income with greater accuracy. While logistics properties may have variability in demand due to market conditions, the long-term agreements help insulate property owners from significant fluctuations in cash flow.

In contrast, options that suggest highly unpredictable cash flows or short leases with high turnover costs imply instability and risk, which do not accurately represent the logistics sector's typical operational framework. The option mentioning cash flows only from asset sales also fails to capture the ongoing income provided by long-term leases, which is a fundamental aspect of logistics real estate.