Capital Efficiencies THROUGH MONETIZING REAL ESTATE
Monetizing assets to raise capital is
NOT the only benefit of a sale leaseback
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
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
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
Maintain full operational control
- Lease structure allows seller to maintain operational control
- “Right-size” your real estate portfolio
Reduce real estate ownership / operating expenses
- Flexibility of leasing and certainty of recurring expenses
- Offload responsibilities of real estate ownership