Second Webinar of 2010
scheduled for March 3, 2010, Noon EST
FASB UPDATE
Presented by: William Bosco, Leasing Industry Consultant

The Financial Accounting Standards Board (FASB) is in the process of developing a new lease accounting standard targeted for completion by 2011. The objective is to capitalize all material leases on lessee's books. A recent estimate predicts retailers earnings will drop on average over 5% in the first year under the new rules.

Accounting procedures would amortize/depreciate the asset on a straight line basis and account for the liability as a loan with imputed interest expense, thus significantly front ending the lessee's expense compared to current GAAP for operating lease rent expenses.

The Impact to Retailers
Estimates are U.S. public companies have $1.3 trillion in operating lease payments. The Retail segment has the highest level of operating leases. 15 of the largest 30 lessees are retailers.

The potential first year increase in lease expense for a 3 year lease is 7% and for a 10 year lease the increased expense is 21%.  Many retailers will experience a 10 to 20% increase in reported lease costs.

This webinar is limited to 100 participants.  The cost to NRTA members in good standing is $25 and $50 to non-members.  This fee is non-refundable.  All webinar reservations must be made using the online registration form and the credit card only option provided (no checks accepted).

To reserve your spot click here.

Buying Leases Out of Bankruptcy:
An Opportunity for Strong Tenants

With retail bankruptcies skyrocketing, real estate opportunities exist for retailers with solid balance sheets and the willingness to take risks. A well-positioned tenant may be able to acquire a below-market rate lease or a favorable retail location by purchasing a lease out of a bankrupt retailer's bankruptcy estate. Read more

The NRTA extends a warm welcome to the following NEW companies who have joined the growing ranks of NRTA Membership since May 1, 2009.