Benefits of a Sale / Leaseback

Capital Efficiencies THROUGH MONETIZING REAL ESTATE
Monetizing assets to raise capital is
NOT the only benefit of a sale leaseback
RAISE CAPITAL
Raise capital by monetizing fixed assets
  • Obtain working and investment capital
  • Enhance liquidity through realization of hidden reserves at increased values
  • Monetize redundant or underutilized facilities
asset
Capital efficiency
  • Efficient use of capital embedded in fixed assets
  • Obtain market value of real estate unrealized on balance sheet
  • Supplement existing sources of financing
Improve balance sheet
  • Increase and manage earnings
  • Enhance shareholder value
  • Improve financial ratios
  • Fund share buybacks
  • Align real estate assets with core revenue initiatives
leased asset
Convert from ‘fixed assets’ to ‘leased assets’
  • Fully depreciated over the term of the lease
  • Lease payments are tax deductible
  • Increase transparency of real estate-related costs
operation control
Maintain full operational control
  • Lease structure allows seller to maintain operational control
  • “Right-size” your real estate portfolio
expenses
Reduce real estate ownership / operating expenses
  • Flexibility of leasing and certainty of recurring expenses
  • Offload responsibilities of real estate ownership