Margins of Safety

Margins of Safety

Contract Quality
  • Approximately 75% investment-grade
  • Master Leases 89% of the time
  • Investments average 82% of replacement cost
  • Investment yields above NAV auction yields

Portfolio metrics
as of 6/30/18

Financial Strength
  • A highly protected dividend
  • High contract lease escalations
  • 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
  • 97% property-level financial statements
  • Every investment independently appraised
  • ~15% annual physical portfolio inspection

Portfolio metrics
as of 6/30/18

Portfolio Characteristics
  • Unparalleled direct investment origination platform, with 93% of our contracts prepared by us and approximately 80% of our customer relationships directly solicited
  • 2,084 profit-center properties leased to 412 tenants, across 49 states and 105 industries
  • A top exposure of 3.3% of rent and interest income, with top ten tenants at less than 20% and approximately 80% of our portfolio under 1%
  • Seasoned tenants with median annual revenues approximating $49 million and weighted average revenues of approximately $816 million

Portfolio metrics
as of 6/30/18

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