By John DeCouto, Lee & Associates Atlanta

With the competition for triple-net-leased facilities heating up, can a buyer be sure that the credit analysis done today will not be impaired by the lease accounting changes in the pipeline?

By John Decouto, Lee & Associates

Beginning in 2013, under the proposed FAS 13 changes, operating leases are to be reported on the balance sheet. The new lease accounting rules will capitalize operating lease obligations differently than the process credit rating agencies and lenders currently use. While these agencies are aware of the differences and prepared for the changes, many parties in a net lease transaction may not be aware of how the new rules could affect credit analysis.