Thursday, June 26, 2008

Banks Flock to Unlock Value with Sale Lease Backs

Unlocking Value: More Banks Discovering Gold in Sale-Leaseback Deals - CoStar Group:

"'The rationale for banks to consider sale-leaseback transactions of bank-owned property is straightforward,' according to Killian. 'Such a transaction could enable the bank to raise cash to meet strategic and funding needs, convert non-earning, 100%-risk-weighted assets into potentially lower risk-weighted, interest-earning assets, mitigate potential risk of decline in market value of owned real estate, monetize off-balance-sheet value into earnings over the life of the lease, and potentially bolster GAAP (Generally Accepted Accounting Principles) earnings,' Killian said."

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