One possible solution that was discussed was a
percentage lease.
A
percentage lease is a way an investor can partner with a tenant; if a tenant does well, the landlord will too," she said.
Percentage lease will apply based on gross sales increasing.
Kamenitzer worked out a
percentage lease where rent is based on a percentage of the volume of sales at the restaurant.
MacDougall in the February 1937 JPM[R] issue provides historical insight on the
percentage lease.
Epstein outlines how recent and pending changes to generally accepted accounting principles (GAAP) are likely to create confusion when corporations and their attorneys try to enforce accounting-related contractual terms commonly contained in, among others, merger and acquisition (M&A) agreements, earn-outs and
percentage lease arrangements.
Rent is 5% of gross sales-thatas right a a
percentage lease with NO minimum.
Net income and FFO were below the company's expectations due to several factors, including conversion from a fixed and
percentage lease structure to a taxable REIT subsidiary (TRS) structure, the slower than expected timing of acquisitions, and the seasonally weak demand associated with first quarter hotel operations generally.
The eight Silicon Valley hotel properties accounted for 16 percent of the company's
percentage lease revenues for the year 2003.
1 million of deferred
percentage lease revenue as a result of the acquisition of the leasehold interests in 47 of the company's hotels on July 1, 2002 from Interstate Hotels & Resorts, Inc.
Summary of Fourth Quarter and YTD 2001 Unaudited Financial Highlights ($ in thousands, except per share amounts) For the Quarter Ended For the Year Ended December 31, December 31, 2001 2000 Change 2001 2000 Change
Percentage Lease Revenue Pre- SAB 101 $10,805 $13,453 (19.
The eight Silicon Valley hotels accounted for 16 percent and 21 percent of the company's
percentage lease revenues for the 12 months ended September 30, 2003 and 2002, respectively.
