Sale-leaseback transactions allow companies to unlock real estate value while maintaining operational control. For investors, they offer long-term income with corporate credit quality.
Seller Benefits
- Immediate capital release
- Convert real estate to off-balance sheet
- Tax benefits from lease payments
- Maintain operational control
Investor Considerations
Underwriting sale-leasebacks requires careful analysis of tenant credit, lease terms, and the strategic importance of the real estate to the tenant's operations.