Its strategy is to produce increasing, reliable rental revenue by expanding its portfolio and leasing its healthcare facilities to operators under long-term triple-net leases.
The company said it had signed a purchase contract to buy a 27,280 sq ft cardiac clinic on 5 June 2017 and that it was going to sign a new, 12-year, triple-net lease with the Lubbock Heart Hospital.
The newly originated absolute
triple-net leases, which include a corporate guaranty, each have an initial term of 15 years and include annual rent increases.
Properties with triple-net leases can be quite attractive to real estate investors, but they aren't as straightforward as they might seem.
Triple-net leases are used for a variety of properties, such as office, industrial and retail.
CPA(R):16 - Global expects to purchase properties under long-term,
triple-net leases, which can offer tenants control of the properties lasting up to 40 years including renewal options.
With full occupancy and long-term,
triple-net leases in place with prominent tenants at all six buildings, these properties will be very attractive to investors," said Britvan.
According to the company, the
triple-net leases have a blended initial cash yield of 9.
Fitch's `BBB-` senior unsecured rating continues to reflect positively on NNN's well diversified asset base (375 properties in 40 states), moderate tenant concentration with the five largest representing 31% of base rents, a history of stable investment performance under long-term
triple-net leases, and a manageable use of debt leverage at 44% of undepreciated book capital as of Nov.
Fitch's `BBB' senior unsecured rating continues to reflect positively on CNL's well diversified asset base (pro forma 381 properties in 40 states), moderate tenant concentration with the five largest representing 31% of base rents (pro forma), history of stable investment performance under long-term
triple-net leases, and manageable use of debt leverage at 46% of undepreciated book capital as of March 31, 2001.
The properties were sold subject to long-term,
triple-net leases with Kmart Corporation.
Correctional Properties Trust is dedicated to ownership of correctional facilities under long-term,
triple-net leases without occupancy risk or development risk.
