Market Responses to Sale-and-Leasebacks

Real Estate Finance, 2013, 29(6), 1-7.

5 Pages Posted: 30 Jan 2016

See all articles by Ryan Whitby

Ryan Whitby

Utah State University - Huntsman School of Business

Date Written: 2013

Abstract

A sale-and-leaseback occurs when an asset that was previously purchased by a company is sold to a third party and then simultaneously leased back from the third party. Historically, the majority of sale-and-leaseback transactions have involved real estate. This paper examines the market response of publicly traded firms that announce a sale-and-leaseback transaction. Transactions are also separated by the type of asset, the declared motive, and the property type involved. The market responds more favorably to transactions involving real estate and especially to real estate associated with manufacturing, retail, and hotels. Furthermore, the market also responds more favorably to transactions motivated by debt reduction compared to alternative motives.

Keywords: sale and leaseback, leasing,

Suggested Citation

Whitby, Ryan, Market Responses to Sale-and-Leasebacks (2013). Real Estate Finance, 2013, 29(6), 1-7., Available at SSRN: https://ssrn.com/abstract=2724083

Ryan Whitby (Contact Author)

Utah State University - Huntsman School of Business ( email )

3500 Old Main Hill
Logan, UT 84322-3500
United States
435.797.9495 (Phone)

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