Net Lease Credit Rating Report
A tenant's credit rating plays a key role when evaluating a net lease property. High credit tenants such as Walgreens, CVS and McDonald's have for a long time been the gold standard of the net lease community. Likewise, national bank tenants like BB&T and PNC have always been viewed as secure investments. This security is paramount to many net lease investors, who often intend on the income stream generated to bolster a retirement or leave to an heir. For this reason, credit ratings have been the quickest and easiest way of assessing the secuirty of the tenant.†
However, there are many unrated tenants which are almost considered to be de-facto credit worthy. Tenants like Wawa and Chic-fil-A, which are both private, draw heavy investor interest and can trade at cap rates as low as high credit rated tenants. It's important to have as much information about potential investment options as possible.†
To view current credit ratings & metrics for both rated and unrated net lease tenants, check out our Quarterly Credit Rating Report.