Margins of Safety

Margins of Safety

Contract Quality
  • More than 70% investment-grade
  • Master Leases 92% of the time
  • Investments average 81% of replacement cost
  • Investment yields above NAV auction yields

Portfolio metrics
as of 3/31/20

Financial Strength
  • A highly protected dividend
  • High contract lease escalations
  • AAA/A+ secured borrowing capability
  • Multiple investment-grade borrowing options; Baa2 by Moody’s, BBB by S&P and Fitch Ratings
  • Conservative leverage and flexible balance sheet
Portfolio Monitoring
  • Virtually all tenants provide financial statements
  • 98% property-level financial statements
  • Every investment independently appraised
  • ~15% annual physical portfolio inspection

Portfolio metrics
as of 3/31/20

Portfolio Characteristics
  • Unparalleled direct investment origination platform, with 96% of our contracts prepared by us and approximately 80% of our customer relationships directly solicited
  • 2,552 profit-center properties leased to 491 tenants, across 49 states and 113 industries
  • A top exposure of 2.8% of rent and interest income, with top ten tenants under 18% and over 75% of our portfolio under 1%
  • Seasoned tenants with median annual revenues approximating $55 million and weighted average revenues of approximately $857 million

Portfolio metrics
as of 3/31/20

Organizational Structure
  • Credit and closing silos
  • Management and Board Investment Committees