Barclay Jones on the Net Lease Market

Net Lease Market News Q: How do you view the net lease market today? A: The net lease market today continues to be pretty strong, and demand for income product generally remains high. The net lease market does distinguish between the quality of income streams and leverage levels are very sensitive to credit quality. Certain product types have stronger demand characteristics as well, with a general preference for well-located industrial. Q: How do you view the net lease market in 6-12 months? A: Over the next 6-12 months, I expect rates to stay low and the market to continue to have demand for yield product. Hopefully, the recovery will begin to gain strength and we will see continued recovery in the housing market as well. With continued recovery, I expect that eventually rates will firm up in anticipation of a stronger economy. Cap rates should rise slightly as well, but I expect the net lease market to continue to be vibrant. Q: What important factors should people be watching for? A: Caution is warranted with the experience of the European real estate and debt markets. Relatively modest vacancy and performance downturn have been met with serious market disruption due to the sovereign debt crisis and ensuing bank recapitalization issues. The US securitization market continues to recover, but this bears a close watch. Q: What trends do you see carrying on into the future? A: The demand for yield product and below long term trend economic growth appear to be trends that will carry into the near term future. Technology and the internet will continue to effect real estate markets as the world evolves with the web. Major metropolitan areas continue to benefit from the tech concentrations and the employment concentrations they create. www.calkain.com

National Retail Properties, Inc. Announces New and Expanded $450 Million Unsecured Credit Facility

Net Lease Market News

National Retail Properties announces new and expanded $450 million unsecured credit facility Co announces the closing of a new $450 million unsecured credit facility, replacing its existing $400 million credit facility. The new facility matures May 2015, with an option to extend maturity to May 2016. The facility is priced at LIBOR plus 150 basis points. The new facility also includes an accordion feature to increase the facility size to $650 million.

Calkain Research provides a variety of reports on all aspects of the net lease market. Our coverage includes: retail, industrial, urban, QSR, banks, pharmacy and more. We present a comprehensive and detailed picture of the market; providing investors with the information they need.
Briefing.com is the leading Internet provider of live market analysis for U.S. Stock, U.S. Bond, and world FX market participants.
National Retail Properties (NYSE: NNN), a real estate investment trust, invests in single-tenant retail properties generally subject to long-term, net leases.
As one of only 114 out of the more than 10,000 publicly-traded companies that have increased annual dividends for 21 or more consecutive years, we are a powerful partner for our retail customers and a proven investment for our shareholders. The average annual total return to shareholders has been 13.6% over the past 15 years.
http://money.msn.com/business

The Wawa Net Lease Market

As a relative newcomer to the net lease market, Wawa convenient store gas stations are one of the hottest sought after triple net lease investment properties in the net lease market today. With an implied credit rating of BBB- / outlook Stable, most investors understand the credit-worthiness of
this privately owned company, which is considered one of the strongest convenient store operators in the country. In 2009, Wawa was ranked No. 55 in Forbes’ America’s Largest Private Companies list. Wawa currently operates more than 570 convenient stores throughout the mid-Atlantic, 270+ of which include gasMost Wawa net leases properties offer an investor long-term security and absolutely no management responsibilities in the form of a 20-year primary term nnn ground lease. These ground leases provide additional investment security given the nature of the real estate investment made by Wawa’s real estate team, including the Wawa Engineering and Construction Department which is responsible for the design, engineering and construction of all new stores and remodels. As with any ground lease investment, a landlord should be comforted by the fact that the tenant, in this case Wawa, has made a significant capital investment in the construction of the building, which at the end of the lease will become property of the ground lease owner.
Also driving the demand and value of Wawa net lease properties is the strong real estate fundamentals of the property sites. Wawa’s real estate team has specific site select criteria, which focus on key trade area location characteristics. Wawa net lease properties are typically located at signalized corners and out-parcel/pads of shopping centers with good visibility and ingress/egress. Ideal trade area characteristics include adequate population and minimum traffic counts of at least 25,000 vehicles per day. Sites should be located on high-volume intersections near other commercial traffic generators.

Wawa's namesake is a Native American word for the Canada Goose in flight, which is also incorporated into the company's logo. Wawa owns and operates convenience stores and gasoline stations in Pennsylvania, New Jersey, Delaware, Maryland, and Virginia. These stores offer a fresh food selection under the Wawa brand including deli products, wraps, breakfast sandwiches, bakery products, fresh produce, and dairy products. The first Wawa store opened in April 1964 in Folsom, Pennsylvania.