Margins of Safety

Margins of Safety

Contract Quality
  • Approximately 75% investment-grade
  • Master Leases 91% of the time
  • Investments average 81% of replacement cost
  • Investment yields above NAV auction yields

Portfolio metrics
as of 3/31/19

Financial Strength
  • A highly protected dividend
  • High contract lease escalations
  • AAA/A+ secured borrowing capability
  • Multiple investment-grade borrowing options; Baa2 / Stable outlook by Moody’s, BBB / Stable outlook 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 3/31/19

Portfolio Characteristics
  • Unparalleled direct investment origination platform, with 94% of our contracts prepared by us and approximately 80% of our customer relationships directly solicited
  • 2,334 profit-center properties leased to 447 tenants, across all 50 states and 109 industries
  • A top exposure of 2.7% of rent and interest income, with top ten tenants at less than 18% and approximately 80% of our portfolio under 1%
  • Seasoned tenants with median annual revenues approximating $53 million and weighted average revenues of approximately $867 million

Portfolio metrics
as of 3/31/19

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