May 24, 2022 – Deal demonstrated value of unlocking capital and material impact on book value; market conditions for sale leasebacks favorable for well-capitalized banks
SLB Capital Advisors (“SLB”) successfully advised Ponce Financial Group (the “Company” or “Ponce Bank”) on the sale of its corporate headquarters in the Bronx and certain bank branches in the New York metro area. Concurrent with the transactions, Ponce entered into long-term leases for the properties with the new owners.
“The sale leasebacks unlocked significant book value and provided capital for us to redeploy, which allowed us in turn to put funds to work and support our communities,” said Ponce Bank CEO Carlos Naudon. “The sale leaseback contributed materially to the increase in book value in 2021, approximately $0.89 / share, and allowed us the ability to lend an additional $160 million.”
“Ponce is a top-tier Minority Depository Institution and Community Development Financial Institution,” noted SLB Capital Advisors Principal, Stewart Riggs, “Those designations, combined with leading credit metrics, resonated with both public and private sale leaseback buyers.”
Riggs continued, “Sale leasebacks of branches and other owned property enable corporations to re-allocate capital from real estate toward their core businesses.”
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