| After completing this course, students will be able to: |
| • |
Explain the basic structure of a sale leaseback transaction |
| • |
Identify potential prospects for a sale leaseback |
| • |
Describe benefits and drawbacks of the sale leaseback transaction for
user/sellers and investors |
| • |
Identify some of the tax issues associated with a sale leaseback |
| • |
Determine the loan amount available to purchase property being sold and
leased back:
| 1. |
Calculate loan amount using lender's maximum loan to value
requirement |
| 2. |
Calculate loan amount using lender's minimum debt coverage
ratio requirement |
| 3. |
Select the lowest loan amount and round it down to nearest
thousand |
|
| • |
Calculate various measures of investment performance such as:
| 1. |
Capitalization rate |
| 2. |
Before-tax cash on cash |
| 3. |
Before-tax internal rate of return |
| 4. |
After-tax internal rate of return |
| 5. |
Before-tax capital accumulation |
| 6. |
After-tax capital accumulation |
| 7. |
Before-tax annual growth rate of capital |
| 8. |
After-tax annual growth rate of capital |
|
| • |
Given a set of financial assumptions on the structure of a proposed sale
leaseback, evaluate if measures of return to the potential investor are
sufficient to attract investment capital into the property offered for
sale in the sale leaseback transaction |
| • |
Conduct an analysis of the sale leaseback transaction from an investor's
perspective using a variety of Excel-based analysis tools |
