This is similar to what Eddie Lampert did to Sears' stores.
> 200 Sears locations were sold to a REIT and leased back to the retailer.
https://therealdeal.com/national/2021/10/21/the-man-who-raid...
> 200 Sears locations were sold to a REIT and leased back to the retailer.
https://therealdeal.com/national/2021/10/21/the-man-who-raid...
I understand they're currently liquidating it, TBD if the common stock investors see anything left after BH gets paid back (and then preferred stock holders, currently trading pretty close to par)
edit: REIT has been converted into a C-Corp, possibly to carry-forward losses better as it becomes not-a-Sears-property owner? https://therealdeal.com/new-york/2022/07/08/seritage-growth-...
Most retailers, banks, and companies realized that owning realestate is not part of their core competency. Canadian tire rolled their realestate into a REIT and then rents the locations back.
There's no double dealing or anything nefarious about it. Heck there is a huge company called Brookfield that has made a living out of buying commercial realestate from companies and renting it back to them while spining the realestate out into a REIT.
That's just smart business for the company who gets money upfront and a stable knowing rental price.
Most commercial tenants are still resonsibile for maintenance, which is the primary ongoing expertise.
It can be a useful way to free up capital, but only useful if it's used to expand the business and deliver a greater return.
Too often it's used to artificially increase the share price or pay out dividend. In these cases the company commits to never ending rent payments for no actual benefit.
There are whole bunch of businesses who have bucked this MBA trend, kept their freeholds and have ended up with a more resilient business better able to weather a change of economic circumstances.