As a provider organization, your real estate assets can make or break your ability to deliver quality care and invest in staff, infrastructure, or new business opportunities. That's where sale-leaseback financing comes in. By selling your property, you can unlock the hidden equity in your real estate and use it more productively.
Here are some key benefits of sale-leaseback financing:
- Improve your balance sheet: Reduce the liability side of your balance sheet by paying down your mortgage or other corporate debt. Keep in mind that operating lease payments do not appear as a liability.
- Improve your income statement: Lessen the negative impact of depreciation and interest on your income statement by not owning real estate.
- Tax benefits: Write off your entire rent payment instead of just depreciation and the interest of debt payments.
- Retain control of the property: Typically, a sale-leaseback agreement is structured so that you will retain full control of the property during the lease term and extension periods.
- Free up capital: Access 100% of your real estate value and redeploy the proceeds to meet your core business objectives.
While a sale-leaseback may not be the best option for every organization, companies that own the real estate from which they operate and are looking to grow will benefit from sale-leaseback financing.
At Scioto Properties, we understand the importance of right-sized real estate solutions for provider organizations. We leverage our expertise, balance sheet, and insight to help you make the right real estate decisions and avoid costly oversights.
Contact us today for a real estate valuation and to learn how sale-leaseback financing can help your organization thrive.