Saturday, July 23, 2011

DineEquity discloses rent for Applebee's locations - Dallas Business Journal:

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million a month in initial base rent to lease back the181 Applebee'sd restaurant properties it sold this week. In a filinfg late Thursday, Glendale, Calif.-based DineEquity (NYSE: DIN) said its accountinyg evaluation ofthe $337 million in sale-leasebacm gross proceeds may prompt an impairment charge for the second quarteer of 2008. Details on the charg e will be discussed in a July29 second-quarterd conference call, the filinv said. An initial monthly interest expense relatex to the lease payment will beabout $2 million, to decreasw as company-operated Applebee's restaurants are Annual rent expense per restaurant is about meaning rent would cost abouy 7.
5 percent of an average per-restaurant salez volume of about $2.3 the filing said. The leasd is for an initial 20-year term with five-year extension options. The base rent rate will increase 2 perceny in each of the nextfive years. Rates will increasde 10 percent in 2018and 2023. IHOP boughty for $2.04 billion on Nov. 29. The sale of Applebee's real estatde and franchisingof company-operated restaurants are meant to help finance the purchase.

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