2024-05-05 11:05:30 ET
Summary
- Sale-leasebacks (SLBs) are a growing trend in commercial real estate, offering opportunities of over $1.6 trillion among S&P 500 companies alone.
- SLB transactions involve selling a property and then leasing it back from the new owner, providing cash flow for expansion without expensive loans.
- Essential Properties Realty Trust (EPRT) is a standout player in the SLB market, focusing on essential industries and offering attractive growth opportunities and dividends.
An Introduction (About SLBs)
What's one of the biggest trends in commercial real estate?
The answer is sale-leasebacks, also known as SLB transactions.
Realty Income ( O ), the largest net lease REIT in the world, estimates that the SLB market offers opportunities of more than $1.6 trillion - among S&P 500 companies alone!
So, what's a sale-leaseback transaction?
According to JANOVER (emphasis added):
In commercial real estate, a sale leaseback is a transaction in which one party sells a property and then leases that property back from the new owner . Sale leasebacks usually involve a pre-arranged contract, which often lasts 20 to 30 years . Sale leasebacks are especially helpful for business owners who are holding onto expensive retail or office property , but have cash flow problems or need equity to expand their business.
Read the full article on Seeking Alpha
For further details see:
Essential Properties: 4% Yield And A Trillion-Dollar Tailwind