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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2014-03-31 00:00:00",
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  "notes": "Uses a simple additive equation to illustrate the 'rent subsidy' concept.",
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      "text": "Almost half of New Red Lobster's cash flow may be due to its rent \"subsidy\".",
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      "text": "New Red Lobster LTM EBITDA: Operating Business ($132) + Rent Subsidy ($106) = Reported EBITDA ($238)",
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      "text": "Therefore, a material portion of New Red Lobster's earnings and cash flow will actually be attributable not to the operating earnings of the restaurant business, but rather to the rent that New Red Lobster does not pay (an effective rent subsidy), which is equivalent to the rental income that a REIT could earn on those properties.",
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      "text": "Because Red Lobster represents a substantial portion of Darden's owned real estate assets, Red Lobster pays substantially less in rent than a typical restaurant company that leases its properties.",
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      "text": "A substantial portion of New Red Lobster's income will be attributable to its real estate ownership, rather than its operating business.",
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      "text": "Source: Green Street Advisors and Company filings.",
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      "text": "Allowing the real estate to reside within New Red Lobster is inefficient from a valuation and tax standpoint",
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