Yes we know that TA pays rent. Walmart pays rent too. So do most food stores and most retailers. They pay rent to REITS.... I might add that most commercial real estate users have been lessees rather than owners. There are reasons to not like TA, Management interlocking boards, etc,. But what your suggest is down the list........ And I might add that because of the recession the business declined, but is NOW looking much better.
We have two leases with HPT, the TA Lease for 145 travel centers, which became effective on January 31, 2007, and the Petro Lease for 40 Petro travel centers, which became effective on May 30, 2007. Two of our subsidiaries are the tenants under the leases, and we, and in the case of our TA Lease certain of our subsidiaries, guarantee the tenants' obligations under the leases.
Term. The TA Lease expires on December 31, 2022. The Petro Lease expires on June 30, 2024, and may be extended by us for up to two additional periods of 15 years each.