sale-leaseback
Sell, then rent
A sale-leaseback is a financial arrangement where an owner sells an asset—typically real estate—to a buyer and immediately leases it back, continuing to use the property while converting ownership equity to cash.
Companies use sale-leasebacks to free up capital without disrupting operations: The retailer executed a sale-leaseback on its headquarters to fund expansion.
Wealth used for investment
- liquidityConvertibility to cash
- cash flowMoney entering and exiting
- debt restructuringRenegotiating borrower payment terms
- balance sheetAssets-liabilities-equity report
monetization · working capital · leveraged · refinancing · corporate finance · funding · capitalization · financial engineering
Money paid for acquisition
- fair market valueObjective exchange price
- closingFinal stage of something
- agreementShared position between parties
- covenantBinding formal pledge
negotiation · due diligence · appraisal · escrow · contract · deed · title transfer · conveyance
Buildings for business use
- office buildingStructure for professional work
- warehouseBulk goods storage building
- retail spaceCommercial property for selling
- occupancyState of inhabiting space
landlord · tenant · property management · square footage · real estate investment trust · REIT · corporate headquarters · distribution center
Asset value reduction over time
- deductibilityEligibility for tax subtraction
- capital gainsProfit from asset sales
- write-offRecorded value reduction
- GAAPFinancial reporting conventions
capital
Wealth used for investment
- liquidityConvertibility to cash
- cash flowMoney entering and exiting
- debt restructuringRenegotiating borrower payment terms
balance sheet · monetization · working capital · leveraged · refinancing · corporate finance · funding · capitalization · financial engineering · treasury
purchase price
Money paid for acquisition
- fair market valueObjective exchange price
- closingFinal stage of something
- agreementShared position between parties
covenant · negotiation · due diligence · appraisal · escrow · contract · deed · title transfer · conveyance
commercial property
Buildings for business use
- office buildingStructure for professional work
- warehouseBulk goods storage building
- retail spaceCommercial property for selling
occupancy · landlord · tenant · property management · square footage · real estate investment trust · REIT · corporate headquarters · distribution center · portfolio
depreciation
Asset value reduction over time
- deductibilityEligibility for tax subtraction
- capital gainsProfit from asset sales
- write-offRecorded value reduction
GAAP · tax deferral · amortization · tax liability · deduction
restructuring
Rearranging an existing framework
- divestitureDisposal of assets
sale-leasebackdebt financing
Raising capital through borrowing
owner-occupied · capital expenditure · capital investment · property ownership
sale, leaseback, lease, back, sales, leases, leased, leasing, lessee