{"title":"Single tenant net lease guidelines to achieve maximum financing","authors":"Gordon Monsen, Joseph C. Yiu","doi":"10.1002/bref.120","DOIUrl":null,"url":null,"abstract":"<p>Developers and acquirers of single credit tenant properties sometimes overlook lease terms that can dramatically affect the ultimate capital leverage — or lowest and most accretive interest rate — that could be achievable on a particular property. Where remaining lease terms are greater than 15 years, this is a bit less of an issue; however, where terms are less than 15 years, it is critical. These lease issues can reduce the maximum leverage attainable based on the cash flows by more than 25 per cent. These issues are subtle and part of corporate America's push to sign shorter, more flexible leases than the 20-year bond-type leases that were common five to ten years ago. Real estate professionals cannot be faulted for not focusing on the financing implications of the structural nuances of these lease provisions and the financial constraints they create in the capital markets. This paper outlines the perspective of lenders and the capital markets on these lease issues and provisions to help developers and acquirers achieve the optimal capital structure and understand the specific economics of lease terms that impinge on the capital structure. Copyright © 2004 Henry Stewart Publications</p>","PeriodicalId":100200,"journal":{"name":"Briefings in Real Estate Finance","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2006-07-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1002/bref.120","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Briefings in Real Estate Finance","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/bref.120","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 1
Abstract
Developers and acquirers of single credit tenant properties sometimes overlook lease terms that can dramatically affect the ultimate capital leverage — or lowest and most accretive interest rate — that could be achievable on a particular property. Where remaining lease terms are greater than 15 years, this is a bit less of an issue; however, where terms are less than 15 years, it is critical. These lease issues can reduce the maximum leverage attainable based on the cash flows by more than 25 per cent. These issues are subtle and part of corporate America's push to sign shorter, more flexible leases than the 20-year bond-type leases that were common five to ten years ago. Real estate professionals cannot be faulted for not focusing on the financing implications of the structural nuances of these lease provisions and the financial constraints they create in the capital markets. This paper outlines the perspective of lenders and the capital markets on these lease issues and provisions to help developers and acquirers achieve the optimal capital structure and understand the specific economics of lease terms that impinge on the capital structure. Copyright © 2004 Henry Stewart Publications
单租户净租赁指引,实现融资最大化
单一信贷租户物业的开发商和收购者有时会忽视租赁条款,这些条款可能会极大地影响特定物业可能实现的最终资本杠杆——或最低和最具增值性的利率。如果剩余的租赁期限超过15年,这就不是什么大问题了;然而,在刑期少于15年的地方,这是至关重要的。这些租赁问题可以将基于现金流的最高杠杆率降低25%以上。这些问题很微妙,是美国企业推动签订更短、更灵活的租赁合同的一部分,而不是5至10年前常见的20年债券式租赁。房地产专业人士没有关注这些租赁条款的结构细微差别对融资的影响,以及它们在资本市场上造成的财务约束,这是无可指责的。本文概述了贷方和资本市场对这些租赁问题和条款的看法,以帮助开发商和收购方实现最佳资本结构,并了解影响资本结构的租赁条款的具体经济学。版权所有©2004 Henry Stewart Publications
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