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Strategies & Market Trends : Commercial Real Estate tic.............tic,,,

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To: Smiling Bob who wrote (100)12/7/2008 11:07:27 AM
From: Perspective   of 442
 
Was reviewing my REIT shorts, and "O" warrants a little sharing. You know how all the retailers claim to have these nice clean balance sheets? You know, the investment required to put up their (excessive amount of) buildings somehow magically disappeared through the magic of sale-leaseback agreements? From the looks of things, O has been one of the primary enablers. So what that means is that O represents the off balance sheet risk of some of the big retail chains.

More here:
realtyincome.com

Our acquisition and investment focus is primarily on purchasing the properties of middle and upper market retailers who provide goods and services that consumers use every day. Typically, we purchase a property from the retail company and then lease it back to them under a 15-20 year lease agreement. This type of real estate transaction is called a "sale-leaseback" and allows the retail company to pull their capital out of real estate and put it back into their retail business. This provides them with access to capital to fund further growth or expansion.

(Retail chains like Taco Bell, Pier 1 Imports, Staples, Office Max, Children's World day care, Jiffy Lube, and Hollywood Video.)

realtyincome.com

`BC
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