u/irepresentprespa

When you’re evaluating a tenant’s ability to support the proposed rent, how do you treat the sale proceeds in your underwriting?
Specifically, if the company is receiving, say, $10 million from the sale, do you build a pro forma post-closing financial model that assumes the debt is paid down (reducing interest expense), or do you underwrite strictly off the historical financial statements?
In other words, where do you incorporate the new cash from the transaction? Do you adjust the balance sheet and interest expense based on management’s expected use of proceeds before calculating metrics like FCCR, rent coverage, and leverage, or do you rely solely on historical numbers?
Curious how institutional buyers, private credit funds, and net lease investors approach this.

Yes I used chat gpt to help ask this- I’m tryn 2 figure this out

Also can you tell a SLB tenant what you want them to do w the cash infusion or no?

Anyone have any idea?

Any takers?

There is this acct on Instagram of a guy that spent thousands of dollars on a super hyper realistic sim set for him to do space travel in a video game, it’s a rig where wind blows in it, the noise and surround sound follows the air craft, etc. the point I’m trying to convey is that’s not that different then piloting a zoid, now imagine a realistic rig for zoids!

The idea is you can customize your zoid, pick the one you want, and through your rig you can operate as a pilot.

This could one day be converted to gundams , this can be tournaments, e sports,

This is just a late night thought I hope it comes to fruition

Curious anyone’s success stories!

Anyone have any insight if they have had experience buying SLB STNL?