Interest-Rate Cut May Spur Sale Leasebacks -- Market Talk

Dow Jones11-09

1823 ET [Dow Jones] -- The Federal Reserve's latest interest-rate cut is likely to foster sale leasebacks, or deals in which investors buy a property and immediately lease it back to the seller, as such transactions are commonly used to support buyouts, Scott Merkle, managing partner at real estate-focused SLB Capital Advisors, says in a market note. "A rate reduction would further accelerate the likely coming rebound in [mergers and acquisitions], with improving debt pricing for private equity and corporate acquirers, as well as an even more attractive cost of sale leasebacks," Merkle says. The total value of sale leasebacks in the U.S. dropped by roughly 49%, to $5 billion, during this year's first half, from $9.79 billion in the year-earlier period, according to SLB Capital. (luis.garcia@wsj.com)

(END) Dow Jones Newswires

November 08, 2024 18:28 ET (23:28 GMT)

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The total value of sale leasebacks in the U.S. dropped by roughly 49%, to $5 billion, during this year's first half, from $9.79 billion in the year-earlier period, according to SLB Capital. 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The total value of sale leasebacks in the U.S. dropped by roughly 49%, to $5 billion, during this year's first half, from $9.79 billion in the year-earlier period, according to SLB Capital. 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The total value of sale leasebacks in the U.S. dropped by roughly 49%, to $5 billion, during this year's first half, from $9.79 billion in the year-earlier period, according to SLB Capital. 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