Broadstone Net Lease Properties

SALE - LEASEBACK BENEFITS

Improved Balance Sheet Position

By selling their real estate a firm can reduce the liability side of the balance sheet by
paying down mortgage or other corporate debt. Operating lease payments do not appear
as a liability. Therefore financial ratios, such as debt-to-equity-ratio, current-ratio and
return-on-assets-ratio will improve. 

Improved Income Statement

By not owning real estate a company can lessen the negative impact of depreciation
and interest on its income statement. 

Tax Benefits

A lessee can write off its entire rent payment instead of just depreciation and the
interest portion of the debt payments. 

Retain Control of Property

Typically the lease agreement is structured in a way so the tenant will retain full control
of the property during the initial lease term and extension periods.

Unshackle your Capital

A sale leaseback will allow the seller to unleash all of the sellers capital tied up in their
real estate.  Proceeds can be redeployed to core business objectives.
(It is like receiving 100% financing with no principal payments.)

Avoid Major Financing Costs

Points, appraisals fees and some legal fees.