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Empirical Evidence on Shareholder Value and the Sale‐Leaseback of Corporate Real Estate
Author(s) -
Rutherford Ronald C.
Publication year - 1990
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00535
Subject(s) - real estate , valuation (finance) , shareholder , business , database transaction , corporate real estate , stock (firearms) , shareholder value , real estate investment trust , purchasing , empirical evidence , finance , common stock , economics , financial economics , corporate governance , marketing , paleontology , context (archaeology) , biology , mechanical engineering , philosophy , epistemology , computer science , engineering , programming language
This study examines the valuation effect of the sale‐leaseback of corporate real estate on the stock prices of the selling and purchasing firms. The issue tested is whether the sale‐leaseback transaction offers a net benefit to the corporate seller/lessee or purchaser/lessor. The empirical evidence suggests that the sale‐leaseback of corporate real estate has substantial benefits for the seller/lessee common stockholders. Additionally, the sale‐leaseback transaction produces an insignificant loss for the corporate purchaser/lessor.