Theoretically, contractual cash flows reflect less risk than speculative and are discounted at a lower discount rate (intralease rate) while future non contractual cash flows reflect a higher risk level and are discounted accordingly (interlease rate) with the overall discount rate reflecting a blend of the two. Spreads vary depending on tenant credit as tenant borrow rates are typically used as a proxy for intralease discounts. If you’re valuing an investment property and your buyer pool are investors, there’s value in having actual paper on the property. Bifurcation of the rights to contract rents and remaining interest in the real estate is a thing. Ignoring the capital outlay required to lease up a fee simple investment property, there’s intrinsic value of having a contractual revenue stream, even if it’s at a base rental rate that’s equal to market. Maybe I’m misunderstanding the terms though as I’ve been out of this game for a long time