I keep reading about various land purchases that Disney has made. I'm curious whether anyone knows more about the corporate structure of Disney and might be able to shed some light on this.
Specifically, I know there are companies that regularly purchase (and sell) real estate of various forms as an investment. GE is one such company (I know someone who used to work in their RE section), and I expect other conglomerates might be similar. These companies buy land/office space/etc. as long-term investments and for rental. Maybe some will be used by the corporation, but that's not the main intention.
I wonder if there could be a basis for all the reports of land purchase (i.e. Disney really is buying all this land), even though there are no plans to develop it or use it themselves. Many of the places I hear about are areas where land is currently relatively cheap and population is growing rapidly (e.g. Texas) - i.e. where it might make sense as investment property.
If this is the case, It might have to be reported (though maybe rather buried) in the annual report somewhere...
Specifically, I know there are companies that regularly purchase (and sell) real estate of various forms as an investment. GE is one such company (I know someone who used to work in their RE section), and I expect other conglomerates might be similar. These companies buy land/office space/etc. as long-term investments and for rental. Maybe some will be used by the corporation, but that's not the main intention.
I wonder if there could be a basis for all the reports of land purchase (i.e. Disney really is buying all this land), even though there are no plans to develop it or use it themselves. Many of the places I hear about are areas where land is currently relatively cheap and population is growing rapidly (e.g. Texas) - i.e. where it might make sense as investment property.
If this is the case, It might have to be reported (though maybe rather buried) in the annual report somewhere...
