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www.pwc.com/us/realestate
Unlocking shareholder value
Real estate monetization strategies
February 2018
Dear Friends,
In recent years, many companies have been reconsidering their real estate strategies. This is
especially true for companies that own and utilize significant real estate in their business. In many
cases, this is either part of an effort to unlock untapped shareholder value in existing assets or to
provide growth capital for the continued expansion of capital-intensive industries. Increasingly,
activist investors are driving these pressures. Recent tax reform legislation and the coming required
adoption of the new lease standard are also factors driving additional considerations.
The universe of what is considered to constitute “real estate” continues to expand to cover an ever-
broadening range of physical assets currently owned by companies and directly used in their
businesses. This is evident in the significant increase of sale-leaseback activity and in the rise of the
so-called, “non-traditional” REIT formations or conversions, which are being used to bring a wide
variety of new asset types into the REIT world. A few of these “non-traditional” asset types include:
timber, farmland, cell towers, billboards, and infrastructure assets of all types in the retail,
healthcare, gaming, telecommunications, energy, storage, and many other real estate-heavy sectors.
We believe this transaction activity will continue as the financial markets strive to satisfy the
voracious need for real estate growth capital – both in the US and globally.
It is important to recognize that the pressure from shareholder activists is not likely to go away any
time soon. Management of companies of all sizes and in all industries need to be prepared to provide
shareholders and investors with a well-articulated strategy that is supported by a proactive
assessment of the company’s existing property portfolio. By telling a clear story and openly
communicating with shareholders and investors, companies both minimize the risk of becoming an
activist target and help build shareholder value.
Recent tax reform legislation signed into law in December of 2017 introduces new interest deduction
limitations for many companies. However, the legislation provided a significant exception for borrowers
engaged in real estate businesses. As a consequence, businesses with significant real estate businesses or
assets may consider strategies to isolate real estate related activities and assets to reduce the burden of
the new interest deduction limitations. Other businesses may consider various monetization
strategies that result in proceeds being used to pay down existing debt and reduce the interest
expense subject to potential limitation. These transactions may be coupled with other structures that
could convert interest otherwise subject to interest limitations to other expenses not subject to the
interest limitations, such as rental expense. Other facets of the tax legislation, including the
reduction to the general US corporate tax rate, retention of like-kind exchanges for real estate,
limitations on state and local tax deductions, may also increase the potential benefits of engaging in
real estate monetization transactions.
This is where we can help. Through our specialists’ global presence and extensive knowledge of
capital markets, PwC can provide you with the insight you need to achieve increased organizational
transparency for investors and shareholders. We believe PwC offers a powerful combination of
personal service, specialized experience, and global reach that sets us apart and helps you achieve
your goals.
Byron Carlock, Jr. Tom Wilkin
US Real Estate Leader Real Estate REIT Practice Leader
[email protected] (214) 754 7580
[email protected] (646) 471 7090
Byron Carlock
Tom Wilkin
Unlocking shareholder value | Real estate monetization strategies 3
Table of content
Emerging trends ................................................................................... 1
Market conditions ................................................................................ 5
Factors to consider ............................................................................... 6
Expanding the possibilities .................................................................. 9
Tax definitions ................................................................................... 10
Overview of various monetization transactions ................................ 12
PwC’s strengths to serve you ............................................................... 17
Appendix A – Example of value creation through a credit lease ....... 20
Appendix B – Other PwC real estate thought leadership .................. 22
Contact us ........................................................................................... 24
Unlocking shareholder value | Real estate monetization strategies 1
Emerging trends
Despite the fact that real estate may
make up the most significant portion
of a company’s assets, operating
costs, or strategic value drivers, the
existing corporate real estate
structures currently used by many
were either initially designed to
support a very different operational
structure than needed today or
motivated by financing, accounting,
or tax considerations that are no
longer relevant. Furthermore, other
factors are on the horizon – such as
changes in lease accounting – that
will also affect the way many
companies think about their real
estate operating strategies. Real
estate also plays a key part in long-
term corporate sustainability.
In many organizations today, the
corporate real estate department is
viewed as more of an administrative
function or cost center, instead of as
a strategic or competitive advantage.
Also often overlooked is the fact that
market shifts frequently result in an
entity’s real estate being valued at
amounts significantly higher than
before – especially for companies
that have built and developed a
portfolio of assets over a long period
of time or through substantial
acquisitions.
Unfortunately, there is no one-size-
fits-all answer to how companies can
either realize or create enhanced real
estate value because the right answer
for one company may be completely
different for another. Optimal
decisions around real estate strategy
are affected by a large number of
factors, including the perceived need
to control particular assets,
operational flexibility, the availability
of alternatives, common industry
practices, tax and regulatory impacts,
and the expectations of management
and investors. A careful
consideration of any given company’s
unique circumstances is crucial in
deciding on an effective approach to
capitalizing on real estate’s true
value. Even within the same
company, different transaction types
may be more appropriate for
different departmental needs,
making it necessary to apply several
different methodologies to reach its
ultimate goals.
Today, many companies are
evaluating the feasibility, benefits,
costs, and other factors associated
with potential real estate
monetization strategies. While
some of these strategic evaluation
initiatives have been spearheaded by
company management, others have
emerged as a result of pressure from
activist shareholder groups and
investment bankers.
In an effort to realize untapped value for shareholders, many real estate-heavy companies are looking to the monetization of their real estate assets to fund core operations and expansion plans. Traditional real estate monetization methodologies include nonrecourse financing, sale leaseback transactions, and more recently, REIT conversions/spin-offs.
2 Unlocking shareholder value | Real estate monetization strategies
Impact of Tax Reform
The signing of “Tax Cuts and Jobs
Act” (TCJA or Tax Reform) into law
in December 2017, represents the
broadest reaching changes in tax law
in over thirty years. Many companies
are considering the impacts of these
changes on their existing and future
real estate strategies. These include
strategies that allow companies to
isolate real estate businesses to
potentially reduce the burdens
associated with the new interest
deduction limitation, identifying
existing assets that might be held in a
real estate investment trust (“REIT”),
existing and future investments from
outside the United States, and other
strategies that address the tax
changes. Other tax changes relevant
to the real estate industry include a
reduced tax rate on REIT ordinary
dividends, the reduced corporate tax
rate, and various other limitations on
the ability of individual’s to deduct
mortgage interest and state and local
taxes. Taken together, the tax
changes are generally expected
to spur additional investment in
real estate and interest in
monetization.
Rise of activist investors and
real estate-driven M&A
Activist investors are increasingly
focusing on the value of a company’s
real estate. Why now? These types of
monetization transactions are not
new – they have been employed by
many in the past.
Since World War II, owning real
estate has generally been viewed as
favorable, but now, we seem to be in
an aggressive cycle of trimming real
estate ownership in favor of selling
and leasing back.
Who wins and who loses? In many
cases, everyone wins!
Many private equity firms that
acquire companies with large
amounts of owned real estate use
sale/leaseback structures as a means
to finance their acquisitions, but they
are not the only ones thinking about
monetization. As companies monitor
and respond to market trends, an
increasingly wide variety of
transactions and restructurings have
emerged. Also increasing is the
pressure companies feel directly
from corporate activist investors or
as a result of takeover activity. A
common focus of many of these
investors is identifying companies
they perceive to have hidden value
that can be unlocked through
structural changes or divestitures,
such as a spin-off. Given the volatility
of real estate valuations, changing
dynamics in their use, and the
market’s quest for yield, real estate is
a common focus of these activist
investors and acquirers.
These activists may espouse
transactions where underlying
financial theory suggests that total
value can be created, through
financial surgery, to separate the
bond-like elements of a company –
such as real estate that can pay a
stable yield from rental income –
from the company’s more cyclical
operations. As a result, the
operations of the company can be
free of the capital intensity often
seen in the real estate industry and
offer higher equity returns. Their
premise appears to be “asset light”
companies outperform the market.
Companies see their stock prices
increase because capital can be
invested into higher ROI-yielding
activities, rather than weighing
down the balance sheet with real
estate capital investments. The real
estate could also trade in a separate
vehicle or be sold to realize its
benefits.
Other drivers of activist pressure on
companies are the beliefs that: a
company’s corporate structure may
not be the most tax-efficient way to
hold the real estate, assets are
underutilized by the existing
company and would be more
valuable if repurposed or split into
separate parts, or a portion of the
business is capital-starved and
needs to be separated to reach its
true potential.
Unlocking shareholder value | Real estate monetization strategies 3
Activist pressure on management
increases even more when a
competitor demonstrates the
potential value that can be derived
from a real estate monetization
transaction. When investors and
shareholders see how successful
various real estate monetization
methodologies are for others, they
want to know why their organization
is not doing this, too.
As industry participants continue to
discover how broad the category of
real estate truly is, the number of
methods used for realizing the value
of this real estate also continues to
expand. Often, organizations attempt
to share the same success as
competitors by mimicking their real
estate monetization strategies,
which, in turn, instills those
transactions/structures as a normal
operating procedure for the entire
sector, over the course of several
years. For example, over the past ten
to fifteen years, we have seen entire
industry business models migrate to
real estate structures, such as a REIT
through REIT conversions or the
consummation of REIT spin-offs.
This occurrence is even more
pronounced in so-called non-
traditional real estate transactions,
such as timber, cell towers,
billboards, and, more recently, power
transmission, gaming and
telecommunications infrastructure.
Finally, the value of an organization’s
real estate may not be leveraged to its
full potential or highest and best use.
This is often difficult for
management to address or even
accept – especially for companies
that are otherwise performing well.
For example, the value of a specific
property, used by the company as a
discount retail operation, may be
worth more used by a high-end
retailer, subdivided and used by
multiple users, or converted to
another use – such as a hotel. In
other cases, for companies in the
midst of an operational transition or
with financial difficulties, it is clear
to management that real estate must
be addressed as a part of broad,
strategic change. Perhaps the most
difficult situation for management to
acknowledge – and the most
significant source of activist
pressure – is in cases where the value
of real estate is higher than the value
of an entire company.
Activist investors: Taking a
preemptive approach
Activist investors actively study many
companies operations in an effort to
identify perceived inefficiencies that
indicate the potential opportunity for
outsized returns – one of which is the
potential to unlock the hidden value
of real estate holdings. Management
should assess for themselves whether
they could be such a company.
In order to make this assessment,
management and the board should:
Be proactive. Don’t wait until a
shareholder activist takes a
position in your company.
Preemptive measures can
prevent the need for reactive,
defensive actions.
Be strategic. Assess if your
company owns or controls real
estate or qualifying real estate
assets that present valuable
monetization opportunities,
drive tax efficiencies, or provide
cost effective ways to redeploy
capital that is more strategically
aligned with business needs –
factors that shareholder activists
are likely to focus on. Use an
integrated approach to conduct
an analysis and develop
responses that align with the
overall objectives of the company
and its shareholders.
4 Unlocking shareholder value | Real estate monetization strategies
U.S. commercial real estate stock
reached a record $16 trillion in
January 2018, up from $14 trillion in
January 20171. Across the globe, a
number of regions have already
recovered from the economic
downturn and exceeded their
previous real estate valuation peaks.
Real estate investment volume, as
measured by the number of
transactions, is growing across the
world although real estate volume as
measured by value is down. Global
real estate investment activity
reached $1.0 trillion through 3Q2017
– an increase of 11 percent over the
same period one year earlier.
However, activity on income
producing properties is down 3
percent over the same periods with
total volume buoyed by investment
in development sites, most notably
in Asia.
The decrease in transaction activity
has continued for seven consecutive
quarters, but demand and capital
allocated to real estate across the
world is still on the rise.
According to Preqin Real Estate
Online, managers of global closed-
end private real estate funds have
$249 billion in capital available to
invest, including the 265 real estate
funds that raised an aggregate of $111
billion of capital in 2017. In addition,
there are currently 573 real estate
funds in the market hoping to raise
an additional $191 billion dollars to
be deployed in real estate.
1 Source: Green Street, January 2018
The rising inflow of capital, current
cycle dynamics and limited amount of
new supply being delivered to the
market has increased the competition
for assets. This competition is leading
investors to look for different
investments in which to allocate
capital. The improving economic
situation in many markets, along with
improving real estate fundamentals,
is giving investors the opportunity to
look for enhanced returns through
value-added and opportunistic
investments. Core real estate
investments, however, remain
popular with investors. As of the third
quarter of 2017, 55 percent of
institutional investors planned to
target core investments within the
next 12 months. This is down from
the 61 percent of investors targeting
core as of the third quarter of 2016,
this strategy remains the most
popular among institutional investors
in the near term. Net lease assets,
both traditional and non-traditional,
from monetization transactions are a
good fit for many of these investors.
While the varying nature of these
transactions make it difficult to
measure just how much the market
for these monetized assets has
grown, it has clearly increased over
the past 7-10 years. This is evidenced
by the following market activity:
The value of traditional sale-
leaseback transactions have
increased since 2016.
As of January 2018, the REIT
conversions or spin-offs
completed since 2011 have a
market cap of approximately
$235 billion.
Unlocking shareholder value | Real estate monetization strategies 5
Market conditions
While concerns about the expected
rise in interest rates in some
markets, like the US, may negatively
impact the long- term pace of
growth, the transaction volume
continued to be significant in 2017
and does not appear to be abating in
the foreseeable future. In fact, in the
short-term, it may spur increased
transaction volumes, as companies
rush to take advantage of interest
rates still near historic lows despite
the recent Federal Reserve actions in
the past two years.
Value creation through lease
structure
Fundamentally, the value of the same
piece of real estate can vary
significantly depending on whether it
is vacant or occupied by a long-term
tenant. Buildings leased on a long-
term basis remain an attractive
target for core investors. Core real
estate investors’ benefit from the
reduced risk that accompanies this
type of property, as the income they
provide is more solidified and, in
turn, often leads to significantly
higher property values.
This value creation can be observed
in the potential value boost seen
when comparing a valuation for
property with a long-term tenant
compared to the same property as
vacant. If you assume standard
market parameters around leasing
expenses, lease up period, probability
of renewal, discount rate, terminal
cap rate, and selling costs, the fully
leased property could easily be
valued 50 percent higher than a
similar, vacant property. An
illustration of how the creation of a
long term credit lease creates value
has been provided in Appendix A.
Real estate fundamentals continue to steadily improve along with a substantial increase in their underlying values in many geographic markets across the globe.
The rapid pace of economic recovery has bolstered demand while limiting the availability of new supply being delivered to the market. The improvement in space market fundamentals now often leads to accelerated rent growth.
6 Unlocking shareholder value | Real estate monetization strategies
Factors to consider
Do you have a significant amount
of real estate (as broadly defined
later in this publication in the
section titled, Expanding the
possibilities) on your balance
sheet or possess long-term leases
for real estate?
Do you expect to be subject to
limitations on your ability to
deduct interest as a result of the
recent tax reform changes?
Have you assessed whether all
or a portion of your assets may
be held in a real estate
investment trust?
Have you considered the impact
of individual tax changes on the
location of your workforce and
office locations?
Have you assessed the current
usage of the properties you own?
Do you have vacant, unused, or
excess properties, and would you
benefit from a hold vs. sell
analysis?
Are you looking for excess capital
to support growth or expansion
plans – particularly, real estate-
dependent growth?
Are you reassessing your current
delivery model, and if so, how
does this impact your current
real estate footprint?
Has your business model
changed and should you consider
repurposing your assets?
Does your existing delivery
footprint efficiently and
effectively meet the needs of
both your organization and
customers?
Do you have the right
infrastructure and positioning to
support your operations?
Do you currently focus on real
estate as a critical success driver?
Are you supporting it that way?
Do you have an abundance of net
operating losses (NOLs) ready
to expire?
Are you coming to a juncture
where you are becoming taxable
in corporate form?
Perceived benefits
While one could argue that a primary
driver for many of these transactions
is the pursuit of corporate tax
efficiency, it is not all about tax
benefits. In fact, many argue that the
tax effect of some common real
estate transactions are not
eliminated, but instead, are merely
moved from an inefficient double
taxation (i.e., taxation at both the
corporation and the investor level) to
a more efficient, single taxation
regime, at the investor level. There
are a number of other, key benefits
that may be part of such
transactions, including:
Trading
Expansion
Capturing real estate’s appeal to
yield hungry investors
Improved access to secured and
unsecured debt markets or
equity growth capital for real
estate-based capital projects
Facilitating a beneficial capital
reorganization or an operational
restructuring
Ability to use operating
partnership units as tax efficient
currency for acquisitions in
fragmented industries –
specifically, in REIT conversions
or spin-offs
Trading multiple expansion is a
common theme seen in many
divestiture strategies, and those
divestitures – partially driven by
significant real estate concentrations
– are no different. For many spin-off
transactions, the increase in value,
which allows for trading multiple
expansion, is perceived to come from
separating businesses with different
characteristics, capital needs, or
specialized management
requirements, in order to fully
capitalize on their value.
However, recent trends in corporate
real estate transactions have often
gone a step further by separating the
real estate used in an operation from
the operation itself. For example, in a
REIT spin-off, one of the goals is to
expand the aggregate value of the
company by creating two securities:
one with the growth characteristics
that appeal to certain growth/
operational investors – the operating
company (OpCo) – and the other in
the property company (PropCo),
which is either a partnership or
entity electing REIT status, that will
Is your company a potential real estate monetization candidate?
Unlocking shareholder value | Real estate monetization strategies 7
appeal to investors looking for fixed
income or dividend yields and better
financing costs. Such a separation
may also have a positive effect on
actual operating results, as the
property company would generally
be managed by real estate
professionals that may bring cost
efficiencies throughout the
development and management
process. Further, these real estate
professionals may be able to utilize
their skill sets to implement
strategies that optimize assets no
longer needed by the operating
company and could venture out to
acquire, develop, and manage
specialized properties used by and
leased to other parties.
Control verses flexibility
Clearly, one of the key drivers of real
estate monetization has been the
unrelenting investor market demand
for yield. This has driven down cap
rates and in turn, increased the value
of properties with long-dated,
bondable credit tenant leases.
In addition to an overall increase in
real estate value, many monetization
strategies inherently rely on creating
value through transactions in which
the real estate ownership is removed
from an entity, then leased back. In
this scenario, it’s the lease that drives
the value. The better the lessee’s
credit, the longer the term, and the
higher the lease payments, the more
perceived value created.
One of the biggest concerns
expressed about monetization
transactions is the struggle for
organizations to maintain control of
essential, physical assets while,
simultaneously, balancing
operational flexibility. While long-
term leases allow the operating
company to maintain property
control, they also limit the
organization’s operational flexibility.
For example, a retailer who enters
into a long-dated master lease of
multiple stores may not be able to
close underperforming locations due
to ongoing lease payments on these
locations. Shorter leases can be
utilized while still maintaining
control of critical assets, through the
use of optional extension periods, at
either fixed prices or at market rates.
This creates more operational
flexibility for the operating company.
However, for the property company,
it creates an increase in certain risk
factors – such as added uncertainty
around lease renewals – and is likely
to reduce the value of the real estate.
This would also reduce the benefits
obtained in the monetization
transaction. The potential impact on
an asset’s value of a shorter leases is
typically correlated with how unique
the asset is and how difficult it would
be to find a replacement tenant.
Similarly, higher lease payments –
despite potentially enhancing
perceived real estate value and tax
efficiencies realized during the
transaction – also may put too much
financial stress on the lessee’s
operations, ultimately hurting both
parties. Further, many rating
agencies treat lease payments as a
form of debt and build them into
their analyses.
Tailoring and optimizing the
transaction to a company’s specific
circumstances requires careful
analysis and judgment. Optimizing is
a very different goal then merely
maximizing proceeds. Success
depends on an organization’s ability
to balance competing elements of
value creation, control, and
operational flexibility.
Financing, taxes, accounting, and
regulatory factors also come in to
play. It is no small endeavor for
companies to embark on, and many
times, it is only attempted as a result
of external or internal pressure.
Merely maintaining the status quo is
an entirely different story – one
which may not, in fact, be optimal.
Tax ramifications
The tax ramifications of a particular
monetization transaction must be
carefully considered in light of recent
tax reform. Some transactions such
as secured borrowings are not
themselves taxable events. Others,
such as sale leasebacks are taxable
events and the acceleration of tax
impacts may represent a cost to be
considered in the transaction.
These monetization transactions
should be viewed through the lens
of tax reform. There may be
opportunities to couple real estate
monetization structures with
structures beneficial from interest
deduction and shareholder
perspectives. These changes along
with other related tax changes may
serve to improve transaction
8 Unlocking shareholder value | Real estate monetization strategies
pricing and may further spur real
estate monetization transactions
Accounting ramifications
Monetization transactions are often
associated with complex accounting
r e q u i r e m e n t s , such as a need
to evaluate the transactions under
intricate leasing and sale-leaseback
rules in the United States. These
rules apply to any transaction for
which the real estate is sold or
transferred, then leased back (e.g.,
sale-leasebacks, contribution
leasebacks, or spin-off leasebacks).
For many transactions, the
ultimate goal is achieving qualified
sale-leaseback treatment in which
the leaseback is an operating lease;
therefore, the lessee is able to
eliminate both the asset and
liability of the lease on its books.
However, the benefits of achieving
such a goal may be short-lived. The
Financial Accounting Standards
Board (FASB), responsible for
establishing generally accepted
accounting principles in the United
States, issued a new accounting
standard that must be adopted by
calendar year reporting companies
in early 2019. This standard will
significantly change lease
accounting.
Such changes would have leased
assets and a liability on the books of
the lessee. However, for income
statement purposes, the expense
charge would be similar to today’s
operating leases – except for those
still considered to be finance leases.
From a balance sheet perspective,
this means there would not be as
significant of a difference between
leasing and owning assets. However,
as noted above, there may be
significant tax differences between
owning real estate assets and
separating real assets into a lessee
vehicle that may benefit from the
real estate business exclusion from
the new interest deduction
limitation rules and rental
expense tax deductions.
Corporate real estate
departments
The drive to monetize real estate
assets often provides a catalyst for
change within an organization,
with an added focus on driving
operational efficiencies as it
pertains to real estate. As part of
this process, companies should
consider how to best rationalize
their real estate functions.
The real estate departments of
some companies are considered
key, strategic value drivers and
viewed as integral to strategic
planning and operations. Such
companies may be able to utilize
their strategic competency in real
estate for additional growth,
utilizing capital generated by
monetization transactions. This
competency can also be leveraged
to create added value for
shareholders through the creation
of a PropCo REIT, which becomes
an asset accumulator or finance
source for the OpCo and other
entities in the same or similar
industries.
On the other end of the spectrum,
many corporate real estate
departments are frequently
undermanned and often, do not
have the infrastructure or systems to
effectively track, manage, and
optimally finance the real estate for
which they are responsible. These
entities may benefit from the
introduction of professional real
estate finance and property
managers.
Unlocking shareholder value | Real estate monetization strategies 9
Expanding the possibilities
“Traditional” property generally
encompasses assets held by
mainstream REITs, such as office
buildings, apartments, retail strip
centers, malls, industrial
warehouses, and even hotels.
Many monetization transactions
are, in fact, done with traditional
real estate assets. After all, is
there any real, physical difference
between a retail space owned by a
landlord and one owned by the
retail company itself? Generally,
the only real difference between
the two is the existence of a lease.
“Non-traditional” property
transactions, on the other hand,
have been more of a recent
phenomenon and represent
anything that can be categorized
as real estate for finance,
accounting, and tax purposes but
does not fit into the category of
traditional real estate. Even real
estate professionals are
sometimes surprised at the broad
scope of real estate today. The
broadening range of transactions
involving non-traditional real
estate has resulted in the
formation of various niche
finance players for unique assets
and the expansion of the net lease
or bondable lease market – an
expansion that has greatly
bolstered the benefits and
desirability of such transactions.
As those markets have expanded,
they have become more efficient
and investor cap rates have
declined, making monetization
transactions for non-traditional
real estate assets even more
desirable.
Real estate and rents from
real property
Because taxes play such a
significant role in real estate
transactions, they have also had a
significant impact on the trends
mentioned above. Real estate can
have favorable tax treatment for
certain investors and structures,
like REITs. Accordingly,
distinguishing what real estate is
has substantial ramifications on a
company’s ability to engage in
certain types of transactions with
their physical assets.
The IRS has considered several
Private Letter Ruling (PLR)
requests related to non-
traditional REIT assets. Favorable
rulings in this area are grounded
on principles that have been
established and applied by the
IRS to distinguish real estate
from other property. The IRS
finalized regulations in 2016 that
clarify the definitions of “real
property” and “rents from real
property” for REIT purposes.
The following sections outline
these definitions.
What is real estate? Simple question, right? Not exactly.
10 Unlocking shareholder value | Real estate monetization strategies
Tax definitions
Real property
Treas. Reg. Section 1.856-3(d) provides that the term “real property” means land or improvements
thereon, such as buildings or other inherently permanent structures thereon (including items which are
structural components of such buildings or structures). In addition, the term “real property” includes
interests in Real property. Local law definitions are not authoritative for purposes of determining the
meaning of the term “real property.”
The term “real property” includes things, such as the wiring in a building, plumbing systems, central
heating, or central air-conditioning machinery, pipes or ducts, elevators or escalators installed in the
building, or other items which are structural components of a building or other permanent structure.
The term “real property” does not include assets accessory to the operation of a business, such as
machinery, printing presses, transportation equipment that is not a structural component of a building,
office equipment, refrigerators, individual air-conditioning units, grocery counters, furnishings of a
motel, hotel, or office building – even if such items are termed “fixtures” under local law.
Rents from real property
Section 856(d)(1) provides that the term “rents from real property” includes (subject to exclusions
provided in Section 856(d)(2)): (a) rents from interests in real property; (b) charges for services
customarily furnished or rendered in connection with the rental of real property, and (c) rent attributable
to personal property which is leased under, or in connection with, a lease of real property, but only if the
rent attributable to such personal property does not exceed 15% of the total rent for the taxable year
attributable to both the real and personal property leased under, or in connection with, such lease.
The term “rents from real property” does not include rents based on net profits or income. However, the
term does include rents based on gross revenues. The term also does not include rents paid by related
parties or rents if certain services are provided.
Unlocking shareholder value | Real estate monetization strategies 11
Non-traditional real estate trends
Over the last 5 to 7 years, we have
seen significant activity involving the
monetization of non-traditional real
estate assets, generally accomplished
through borrowing, sale-leaseback
transactions, and REIT conversions
or spin-offs. We expect this trend to
continue. The following is a summary
of different types of non-traditional
real estate assets that have been
monetized through transactions
similar to those discussed above.
Existing In process Potential future candidates
Timber
Agriculture/farmland
Cell towers
Hotels
Casinos/gaming
Hospitals/nursing homes
Golf courses
Data centers
Billboards
Prisons
Record warehousing
Telecom infrastructure
Transmission/distribution lines
Cold storage
Schools/higher
education facilities
Railroads
Docks/marinas
Landfills
Toll roads/bridges
Energy infrastructure
- Pipelines
- Solar/wind farms
What’s next?
12 Unlocking shareholder value | Real estate monetization strategies
Overview of various monetization transactions
While some of this complexity is necessary to
derive specific benefits, it may significantly
increase the time, effort, and cost of these
activities.
A careful evaluation of the different transaction
strategies is crucial in order to make the right
decision for the future.
Types of real estate monetization strategies
3 – 6 months 18 – 30 months Implementation time
Isolated transactions New business setup Business transformation
Securitize debt with existing real estate
Prepaid lease/leaseback
Publicly traded REIT
Spin off/Split off
High dependency on tax & finance considerations (e.g., taxpayer)
Individual sale-leaseback transactions
UPREIT joint venture
Valu
e
Real estate monetization transactions may be transactional or transformative, depending on the various, unique circumstances of any given company.
Monetization, in its simplest form, can be merely consummating secured borrowings against operating assets; however, the range of possible transactions and their associated complexity is substantially broader than that.
Unlocking shareholder value | Real estate monetization strategies 13
The term REIT conversion is used
broadly to describe a very wide range
of transactions in which the original
entity transforms – either partially or
entirely – into a REIT, including
spin-off transactions. Such a
transaction may be considered either
traditional, if the property involved is
similar to those normally seen in a
REIT (e.g., retail or office buildings),
or non-traditional, if the property is
more unique to the REIT market
(e.g., billboard, timber,
wires/infrastructure, etc.).
These transactions have notable
complexities – most of which are
further elaborated upon in PwC’s
guide for these transactions entitled,
Non-traditional REIT
Transactions: An emerging
trend, which is available on our
website: cfodirect.com.
A brief description of each
transaction type, their associated
pros and cons, and other, key
characteristics are provided below.
Additionally, the unique needs and
desires of any given organization are
accounted for by leveraging the
different variations of each type of
transaction to more closely satisfy its
particular needs.
Factors that impact how you
considered monetization
strategies
Transformation or growth plans
and their related costs
External borrowing ability and
debt limitations or covenants
Fair market value of the real
estate and its tax basis, and
whether or not there would there
be a significant tax gain if sold
Ability to deduct net interest
expense for tax purposes
Effective tax rate of
separated entities
Long-term need to control
specific real estate by ownership
or lease
Time required to implement
monetization strategies
Existing debt covenants and
other restrictions of third party
leases and transactions
Relative cost to implement
different real estate monetization
strategies verses their benefits
Market conditions for real estate
transactions with single-
tenant properties
Secured borrowings/
securitization transactions
Perhaps the simplest form of
monetization is merely to borrow
money against the asset. These
transactions can take the form of a
simple commercial mortgage, from a
bank, or a more complicated
transaction, such as an attempt to
take advantage of the Commercial
Mortgage Backed Securities market.
These transactions can be on
individual properties or on cross-
collateralized or cross-defaulted
pools.
These transactions have also been
increasingly done in local currencies
to take advantage of lower borrowing
rates in international markets.
Pros
Simple, well understood
Relatively short time to complete
transactions
Relatively low transaction costs
(e.g., no transfer taxes)
Limited corporate-level tax
consequences
Cons
Limitation on borrowing
amounts (e.g., 50-75 percent
loan-to-value)
Possible limitation on interest
deductibility for tax purposes as
a result of Tax Reform
Increases company's leverage for
debt covenant purposes
Cross-collateralization or cross-
default provisions may limit
operational flexibility
Company still exposed to
residual real estate risks
Individual or portfolio sale-
leaseback transactions
The property is sold to a third party
and leased back to the company.
These transactions can be on
individual properties or under a
master lease for multiple properties.
These transactions have potentially
significant tax costs to sellers if the
tax basis in the assets are low. This
creates a significant toll charge on
completing such transactions, which
may discourage potential, and
otherwise qualified, candidates from
engaging in these transactions. On
the other hand, some have utilized
sale-leasebacks to trigger tax gains,
utilizing tax assets- such as
accumulated net operating losses
(NOLs)-before they expire.
The financial accounting for these
transactions can be complex,
especially in the United States, which
has specialized rules in this area. The
lease literature in this sector is
proscriptively rule-based and
prohibits many forms of continuing
involvement in the assets other than
the leaseback. Failure to comply with
these rules can cause the transaction
to be treated as a financing or
deposit, instead of as a sale. Even if
14 Unlocking shareholder value | Real estate monetization strategies
the sale is recognized, some or all of
the gain may be deferred and
recognized over the term of the
leaseback, making a careful
evaluation of each proposed
transaction essential.
Generally, the owner of mission-
critical real estate assets wants to
maintain the control and use of an
asset throughout the terms of the
lease -either through the initial term
or its potential extension options.
This puts stress on qualifying for
sale-leaseback accounting and
ensuring the leaseback is not a
considered a capital lease. In either
case, the asset might not be removed
from the balance sheet and a liability
will be recorded for the failed sale-
leaseback or capital lease.
Pros
Moderate transaction costs-
potentially including transfer
taxes
Increasing number of buyers for
bondable leases has led to
improved pricing
Possible tax deduction for rental
payments
Many buyers exist and they can
close transaction in reasonably
short periods
Full realization of
monetization value
Company no longer exposed to
residual real estate risks
Cons
Toll charge of tax consequences
can be significant (depending on
tax basis of assets), although
such costs were recently reduced
with the reduction of the
corporate tax rate in the U.S.
from 35% to 21%.
Operating charge to P&L where
there previously was no rent
expense or need to pay market-
based rents
Buyer generally looking for
longer lease durations
Cross-collateralization or cross-
default provisions may limit
operational flexibility
Accounting can be complex
unless normal leaseback is
attained
Pre-paid leasebacks
This transaction type is a variation
on the sale-leaseback. Rather than
selling the asset, the company enters
into a lease whereby it leases the
property to a third party. The terms
of this lease-out provide for a single,
lump-sum payment by the
counterparty to the company at the
inception of the lease
The company then leases the
property back from the counterparty
for payments over the agreed
upon term.
Pros
Low transaction costs
Corporate tax consequences
are limited
Cons
Company still exposed to
residual real estate risks
No derecognition of assets
More complex, may take
relatively longer to close than
alternative financing or sale-
leaseback transactions
Additional leverage of financial
statements added in the form of
prepaid lease liability
Contribution leasebacks
In these transactions, the company
contributes real estate into
partnership structures, which may
either be a separate vehicle or part of
an Umbrella Partnership REIT
(“UPREIT”) or Down REIT of an
existing, public REIT. The company
would then lease back the property
from the vehicle. In exchange for the
contributed real estate, the
contributing companies would
receive Operating Partnership Units -
units potentially convertible to
shares of an existing third-party
REIT. This may allow for
monetization over time, as units are
converted and sold into the market.
Pros
Limitation on amount of
borrowings
Potential access to professional
real estate management of the
property at lower operating cost
Immediate corporate tax
consequences limited
Cons
Potentially disguised sale issues
for tax
More complex, may take
relatively longer to close than
alternative financing or sale-
leaseback transactions
Buyer generally looking for
longer lease durations
Cross-collateralization or cross-
default provisions may limit
operational flexibility
Accounting can be complex
unless “normal leaseback”
is attained
Company still exposed to
residual real estate risks
REIT conversions
The term REIT conversion is used
broadly to describe a very wide range
of transactions in which the original
entity transforms-either partially or
entirely-into an REIT, including
spin-off transactions. Such a
transaction may be considered either
Unlocking shareholder value | Real estate monetization strategies 15
“traditional,” if the property involved
is similar to those normally seen in
an REIT (e.g., retail or office
buildings), or "non-traditional," if
the property is more unique to the
REIT market (e.g., billboard, timber,
wires/infrastructure, etc.).
In a simple REIT conversion, the
majority of the company's assets and
operations qualify under the REIT
tax requirements and are either
owned directly by the REIT or its
subsidiaries. Any remaining,
nonqualified operations can reside in
a taxable subsidiary. In some cases,
the company may need to divest
itself of non-qualifying operations, if
they are too large.
While their potential for tax savings
clearly benefits an organization, the
decision to undergo a REIT
conversion or spin-off is often made
for additional reasons. There are
other, potential benefits, including
the perceived impact on financing
costs, monetization of non-core
assets, and the company's share
price. Over the last few years,
investors have been searching for
yield and have been willing to pay
more for higher dividend stocks,
including REITs. Investor interest
may see a slight decline in the face of
potential interest rate hikes and
other factors impacting the market,
but all indications are that these
investment types are here to stay.
Many common REIT structures, like
the Umbrella Partnership REIT
(UPREIT), provide a company with a
tax advantaged currency to acquire
properties in fragmented industries.
Finally, some companies are taking
advantage of these transactions to
reorganize themselves and
recapitalize their balance sheets.
A REIT conversion is certainly not
without challenges. A company may
need to substantially change the way
it does business with its customers to
bring its business in line with the
technical REIT requirements. In
other cases, a company may need to
sell or spin-off portions of its
business so that the remainder can
elect REIT status. There will likely be
many challenges in both completing
the REIT conversion transaction
itself and in maintaining REIT status
post-conversion. There are also
REIT-specific tax, operational,
accounting, and financial and
investor reporting issues that will
need to be addressed considered
from a costs/ benefit standpoint.
Pros
Significant reduction in ongoing,
combined taxes at entity level
due to REIT status-presumably,
this drives an increase in
aggregate shareholder value
Cons
Complex transaction or
reorganization may be required,
generating significant
transaction costs, need for
management attention, and time
to consummate
May need to make a significant
distribution to purge pre-REIT
accumulated taxable earnings
and profits
Operating as a REIT may
require the reorganization of
or modification to business
operations, contracts,
and processes
Company still exposed to
residual real estate risks
Spin-off leaseback
This transaction involves separating
out the real estate from an existing
company and moving it into a new
company. This new real estate
company will, then, frequently elect
to be taxed as an REIT. In such cases,
the existing company continues to
own the operating business and
leases the real property from the
REIT entity at current market rates.
Due to tax law changes, it is often
difficult to achieve a tax-free spin-off
of real estate. That said, a taxable
spin of assets may still provide
beneficial in light of the
considerations described throughout
this paper and the recently reduced
corporate tax rate (35% to 21%).
Assessing the amount of the tax due
as a "toll charge” on getting the real
estate out of a corporation will be
critical to the economic analysis of
possible alternatives.
Pros
Reduction in combined taxes for
recurring operations
Potential to structure as a tax-
free spin-off (may now be
limited, see above), but requires
an additional, unrelated business
that meets size limitations
Cons
Tax “toll charge” can be
significant if
Costs were recently reduced with
the reduction of the corporate
federal tax rate in the U.S. from
35% to 21%.
Complex, significant transaction
costs and time to consummate
Tax-free spin-off requirements
can add complexity to the
16 Unlocking shareholder value | Real estate monetization strategies
transaction from a business, tax,
and regulatory filing perspective
May need to make a significant
distribution to purge pre-REIT
tax earnings and profits
Concentration of credit with
single tenant may not price
favorably, so PropCo may need
or want to acquire additional
properties after the transaction
to diversify the credit exposure
and continue adding value for
shareholders
Market pricing needed in setting
initial rents
Business concerns around
whether OpCo will be
comfortable with an independent
PropCo as its landlord, dictating
lease renewal terms, dealing with
underperforming properties, and
potentially leasing property to
OpCo's competitors
PropCo REIT exposed to residual
real estate risks
Unlocking shareholder value | Real estate monetization strategies 17
PwC’s strengths to serve you
A proven track record of
assisting clients who are
contemplating real estate
monetization
Our approach to serving clients who
are contemplating real estate
monetization transactions leverages
collaboration between real estate
specialists, specialists specific to your
industry (including deals, tax,
accounting, valuation and systems),
and expert project managers for
insight and assistance specially
tailored to your unique
organizational needs.
We believe this approach
encompasses a powerful combination
of personal service, specialized
experience, and global reach, setting
PwC apart from the rest.
The process of evaluating and
executing various real estate
monetization strategies can be
extremely complex and time-
consuming, so the support of a
professional services firm that truly
understands your business and its
financial transactions is pivotal to
successful decision-making. PwC’s
experts possess extensive accounting,
tax, and regulatory knowledge,
equipping them with an exceptional
ability to navigate through various
monetization transaction types and
mitigate associated risks.
Today, PwC is one of the preeminent
providers of services that can help
you navigate the intricacies of
evaluating and executing complex
real estate monetization strategies.
We also have a long track record of
delivering a knowledgeable
perspective on what it will take to
support the evaluation and
implementation of various real estate
monetization strategies without
disrupting business operations.
18 Unlocking shareholder value | Real estate monetization strategies
A practice built on industry-
specific knowledge and
experience
We also serve a wide range of clients
in the real estate industry, including
many of the largest and most
prominent public REITs, real estate
opportunity funds, private real estate
owners, operators and developers,
homebuilders, traditional real estate
advisors, separate insurance
company accounts, international real
estate investment vehicles, and
public real estate operating
companies. Insights garnered from
our experience with these clients will
help us provide insight on how
various transactions may be
perceived by various stakeholders,
including investors, analysts,
lenders, and the SEC.
Our experience in these areas will
enable us to help you address today’s
problems, as well as assist you in
identifying opportunities or
challenges which will affect you
tomorrow as you implement your
long-range business plans. Our real
estate professionals have a first hand,
in-depth understanding of every
aspect of real estate
operations/transactions, including
valuation, reorganization, deal
advisory, corporate services,
accounting, and tax.
The PwC advantage: Cultivated
experience and in-depth
knowledge
We have been a market leader in
providing tax, audit, and advisory
services for major REIT conversion
transactions for more than fifteen
years, including many of the most
recent non-traditional REIT
conversions. We also have extensive
experience with real estate sale-
leaseback transactions and similar
exchanges, which are essential tools
for many holistic real estate portfolio
monetizations. Our depth of
experience has made us a leading
professional services firm in this
specialized area.
In addition to real estate deal
advisory, securitization, and
litigation services, PwC has overseen
the valuation of multi-billion dollar
real estate and enterprise valuations
of TSRs and participated in multiple,
high-profile real estate transactions
for various real estate lenders and
investors. Our knowledgeable real
estate professionals take great pride
in anticipating and responding to
market trends and are recognized as
thought leaders in the industry.
PwC provides audit, tax, or advisory services
to 80% of the REITs listed in the
S&P 500 index.
In addition, PwC has provided audit, tax, or advisory services to
23 of the 30publicly announced REIT
conversions/spin-offs that have occurred since 2011.
Unlocking shareholder value | Real estate monetization strategies 19
Appendices a. Example of value
creation through a credit lease
b. Other PwC real estate thought leadership
20 Unlocking shareholder value | Real estate monetization strategies
Appendix A – Example of value creation through a credit lease
Value as vacant
Annual rent $5,000
Leasing commission 6.00%
Standard lease term 5 years (May or may not have options to renew)
Lease up period 9 months
Probability of renewal 75.0%
Escalation of rent upon renewal 10.0%
Discount rate 8.0%
Terminal cap rate 7.0%
Cost to sell in year 11 4.0%
(000’s omitted) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating cash flow
Rent 1,250 $5,000 $5,000 $5,000 $5,000 $3,750 $2,750 $5,500 $5,500 $5,500
Leasing commission (1,500) – – – – (1,650) – – – –
Net operating cash flow (250) 5,000 5,000 5,000 5,000 2,100 2,750 5,500 5,500 5,500
Assumed sale beginning of year 11
78,571
Cost to sell
(3,143)
Net cash flow (250) 5,000 5,000 5,000 5,000 2,100 2,750 5,500 5,500 80,929
DCF value $61,239 A
Value with bondable lease
Annual rent $5,000
Leasing commission 0.00%
Standard lease term 20 years (May or may not have options to renew)
Lease up period 0 months
Probability of renewal 75.0%
Escalation of rent after 5 years 10.0%
Discount rate 6.0%
Terminal cap rate 5.5%
Cost to sell in year 11 4.0%
(000's omitted) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating cash flow
Rent 5,000 $5,000 $5,000 $5,000 $5,000 $5,500 $5,500 $5,500 $5,500 $5,500
Leasing commission – – – – – – – – – –
Net operating cash flow 5,000 $5,000 $5,000 $5,000 $5,000 $5,500 $5,500 $5,500 $5,500 $5,500
Assumed sale beginning of year 11
100,000
Cost to sell
(4,000)
Net cash flow 5,000 $5,000 $5,000 $5,000 $5,000 $5,500 $5,500 $5,500 $5,500 101,500
DCF value $91,980 B
Difference in value $30,741 B-A
Properties that are subject to longer-dated or bondable leases are highly sought out by many investors. Their valuation is often tied more to the credit of the tenant than traditional real estate, which may be subject to additional market risks (e.g., nearer term lease renewal and market rent adjustments) and other costs. Such assets are more efficiently financed. A hypothetical example comparing the valuation of vacant real estate to that of a credit-tenant lease asset is presented below.
Unlocking shareholder value | Real estate monetization strategies 21
• Higher income from lease in place
• No leasing commissions or downtime due to length of lease
Value creation attributed to operational components
• Credit quality of tenant results in higher certainty of income stream
• Lower discount rate for credit quality tenant in place
• Reduced terminal cap rate due to reduced uncertainty around year 11 income
Value creation attributed to enhanced credit quality
1. Assets may also be more efficiently financed
2. Tax efficiency may be improved by holding the real estate in an entity that does not pay corporate level taxes (e.g., a partnership or a REIT)
Potential value creation not considered in the above
22 Unlocking shareholder value | Real estate monetization strategies
Appendix B – Other PwC real estate thought leadership
Real Estate 2020: Building the future
As confidence returns to real estate, the industry faces a number of fundamental shifts that will shape its future. PwC has looked into the likely changes in the real estate landscape over the coming years and identified the key trends which, we believe, will have profound implications for real estate investment and development.
Emerging Trends in Real Estate
This annual forecast provides a heads-up on where to invest, which sectors and markets offer the best prospects, and trends in the capital markets that will affect real estate. The Emerging Trends in Real Estate series includes:
US and Canada
Asia Pacific
Europe
Real Estate Tax Insights
This series provides timely analysis on emerging issues so you can stay abreast of significant tax or human resource services developments affecting your company in today's ever-changing legislative and regulatory environments. PwC's Insights is a must read for professionals wanting to stay ahead of the curve. Publications include:
Tax Reform and Real Estate: Impact of the Tax Cuts and Jobs Act on Real Estate
Tax Reform Bill: Implications for the Real Estate Industry
Tax Reform and Real Estate: The Senate weighs in and the House votes
Quarterly Deals Insights This
quarterly report is an analysis of transactions in the real estate industry and outlines trends impacting the sector including sub-sector and regional deal trends, and shares additional highlights such as key announced transactions.
From providing up-to-date thinking about the regulatory landscape to evaluating emerging trends, our thought leadership publications put us directly in-touch with industry leaders, allowing us to hear first-hand about the trends and ideas impacting the global real estate industry.
Our knowledgeable real estate professionals take great pride in being proactive with market trends.
Unlocking shareholder value | Real estate monetization strategies 23
Global CEO Survey
The annual survey aims to inform and stimulate the debate on how businesses are facing today’s challenges.
Current Developments for the Real Estate Industry
This publication will help real estate audit committees and executive teams remain updated on the most recent trends in real estate.
PwC Manhattan Lodging Index
This quarterly publication provides updates on Manhattan’s lodging market, widely used by lodging brands, developers, and owners
PwC Real Estate Investor Survey
The quarterly PwC Real Estate Investor Survey is widely recognized as an authoritative source for capitalization and discount rates, cash flow assumptions, and actual criteria of active investors, as well as property market information.
PwC Hospitality Directions US
This quarterly publication is a near-term outlook for the US lodging sector, commonly used by industry decision-makers and stakeholders to better understand the impact of policy and other macro-environmental factors on the sector’s operating performance.
Roadmap for a REIT IPO or conversion for traditional and non-traditional real estate companies
These PwC guides are prepared to help both traditional and non-traditional real estate companies address the IPO and REIT conversion process.
Cities of Opportunity This annual
report analyses the trajectory of 30 cities, all capitals of finance, commerce, and culture – and, through their current performance, seeks to open a window on what makes cities function best. We also investigate both the urbanization and demographic megatrends that shape our cities
Compare and contrast: Worldwide Real Estate Investment Trust (REIT) Regimes PwC has a global
team of real estate tax and legal professionals who have conceived this booklet to keep you up to speed and allow you to compare the various regimes. The booklet is a high level comparison of key attributes of selected REIT regimes.
Non-traditional REIT Transactions: An emerging trend
This free-standing guide is focused exclusively on the unique issues and considerations that REIT transactions face.
Key tax issues at year end for real estate investors
This publication gives investors and fund managers an overview of year-end to-dos and important issues in real estate taxation worldwide.
24 Unlocking shareholder value | Real estate monetization strategies
Contact us
National contacts
Real Estate Leader Byron Carlock [email protected] 214.754.7580
Real Estate REIT Practice Leader Tom Wilkin [email protected] 646.471.7090
US Real Estate Assurance Leader Cathy Helmbrecht [email protected] 214.754.7988
Real Estate National Tax Leader Paul Ryan [email protected] 646.471.8419
Real Estate REIT Tax Services Principal Adam Feuerstein [email protected] 703.918.6802
Real Estate REIT Tax Services Principal David Leavitt [email protected] 646.471.6776
Real Estate REIT Tax Services Principal Adam Handler [email protected] 213.356.6499
Real Estate Assurance Partner William Croteau [email protected] 415.498.7405
Real Estate Valuation Services Partner Andrew Alperstein [email protected] 617.530.5256
Real Estate Deals Leader Tim Bodner [email protected] 703.918.2839
Real Estate Tax Services Managing Director Robert Lund [email protected] 720.931.7358
Industry sector contacts
Healthcare Joel Jaglin [email protected] 312.298.3824
Hospitality and Gaming Warren Marr [email protected] 267.330.3062
Hospitality and Gaming Abhishek Jain [email protected] 646.471.2016
Oil & Gas Tracy Herrmann [email protected] 713.356.6583
Power/Utilities Casey Herman [email protected] 312.298.4462
Power/Utilities Robin Miller [email protected] 312.298.2357
Retail & Consumer Rebecca Byam [email protected] 646.471.3256
Telecom Infrastructure Stefanie Kane [email protected] 646.471.0465
Geographic offices
Atlanta Jill Niland [email protected] 678.419.3454
Boston Tina Pantaleo [email protected] 617.530.4599
Chicago Brett Matzek [email protected] 312.298.5821
Cleveland Marvin Thomas [email protected] 216.875.3323
Dallas Leah Waldrum [email protected] 214.756.1768
Dallas Jason Waldie [email protected] 214.754.7642
Denver Wendy McCray-Benoit [email protected] 720.931.7353
Los Angeles Erica Hanson [email protected] 213.217.3290
New York Bill Staffieri [email protected] 646.471.0047
San Francisco Emily Pillars [email protected] 415.498.6358
Washington, DC Tim Bodner [email protected] 703.918.2839
PwC is ready to serve you. For more information on real estate monetization, please contact any of the following real estate professionals:
© 2018 PricewaterhouseCoopers LLP. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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