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Thanks I appreciate the clarification. You're referring to a leaseback, right? From the research I've done, I've mostly seen it happen in the context of real
by hack_fraud13 2y ago
Thanks I appreciate the clarification. You're referring to a leaseback, right? From the research I've done, I've mostly seen it happen in the context of real estate, e.g. with Darden when Starboard Value took over [0]. I think the rebuttals to management on slide 38.
What I wonder about this is in cases where the real estate is spun off into a REIT, does the original company keep shares in the REIT, or are transactions like this purely for one-time raising capital?
[0]https://www.sec.gov/Archives/edgar/data/940944/000092189514000700/ex991dfan14a206297125_033114.pdf https://www.sec.gov/Archives/edgar/data/940944/0000921895140...