What were the gains on sale-leaseback transactions for Christian Brothers Automotive in 2022?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
gs on leased properties. The Company defers real estate gains during for recognition in future periods. This deferred amount is recognized into income over the life of each respective lease. Gains recognized in the 2023 and 2022 consolidated statements of income related to the amortization of deferred gain on real estate were approximately $2,256,000 and $921,000, resp
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, gains recognized in the 2022 consolidated statements of income related to the amortization of deferred gain on real estate were approximately $921,000, which is included in gains on sale-leaseback transactions.
Christian Brothers Automotive engages in sale-leaseback transactions, where they sell the real estate and facilities of their franchise locations to third parties and then lease the properties back. The company defers recognizing the real estate gains immediately. Instead, this deferred amount is recognized as income over the life of the respective lease.
For a prospective franchisee, this indicates that Christian Brothers Automotive actively manages its real estate portfolio and generates income from these transactions. The deferred gain on sale of real estate at December 31, 2022, was approximately $9,198,000. The gains recognized in 2022 represent a portion of this deferred amount being recognized as income during that year.