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Technology Stocks : Aahh...iNEXTV (AXC) The NEXT Thing! -- Ignore unavailable to you. Want to Upgrade?

To: Hal Campbell who wrote (3817)	5/30/2001 1:50:40 PM
From: killybegs	Read Replies (2) \| Respond to of 4169

These guys had a tombstone in the WSJournal today that caught my attention..specialize in sale leaseback transactions. Publically traded WPC....anyway from their website some of the benefits of sale leaseback for companies.....of interest to me was the comments on off balance sheet and LBO...wonder if ? wpcarey.com BENEFITS By outsourcing the ancillary business function of real estate ownership through a sale to a W. P. Carey affiliate, companies can realize the full market value of their corporate real estate, generate capital to fuel the growth of their business, and enhance their credit profile and borrowing capacities. We offer: Speed - The firm can arrange and complete a sale-leaseback transaction quickly. We have immediate access to investment funds and handle the underwriting with our own professional staff. Value - Lease financing through W. P. Carey enables a corporation to raise the full value of its property, in contrast to the 50-80% usually provided by mortgage financing. Off-Balance Sheet - Leases are generally structured so that they qualify as "operating leases" under the criteria set by the Financial Accounting Standards Board (FASB). Thus the obligation does not appear on a company's balance sheet. Land Depreciation - While a company cannot depreciate the land portion of the real estate it owns for federal income tax purposes, it may depreciate buildings and physical improvements. W. P. Carey factors the value of the land acquired into the rent, effectively allowing tenants to depreciate the land by deducting the rent expense for the entire property. Operational Control- A triple-net lease structure allows a company to retain operational control of the facilities. Realizing Value - Although market values may have increased significantly, real estate assets are usually carried on the books at cost less depreciation. As a result, a sale-leaseback can unlock cash and make more efficient use of corporate assets. Borrowing Capacity - Replacing an illiquid real estate asset with cash improves the company's current ratio and liquidity, makes it possible to pay down debt, improve coverage of debt, or increase borrowing capacity. Selling mortgaged property also improves the company's debt-to-equity ratio, making the company more attractive to banks and other lenders. Special Circumstances - Companies sometimes need to erect a special-purpose building designed to their own requirements. Through a build-to-suit transaction, W. P. Carey is able to provide 100% construction financing for the development of a facility specifically designed to meet the tenant company's needs. Acquisitions and LBO's - A corporation planning to acquire another company can often arrange a sale-leaseback with W. P. Carey as part of the overall transaction, using assets of the acquired company to reduce total acquisition cost. Similarly, management teams planning to acquire their own companies through a leveraged buyout can look to us to design a sale-leaseback as part of the structure of the overall deal, thereby reducing the need for higher-cost equity and lengthening the maturities of the overall financing.