STIFEL: Triple-Net - Triple-Net REIT Comp Sheets 9/5/2016

FULL REPORT

riple-Net REIT Comp Sheets 9/5/2016

• REITs Rally On Job Report, Sector Underperforms. The overall REIT sector gained 180 bps this past week and is +14.7% YTD. The triple-net sector underperformed, +130 bps for the week and is +32.8% YTD.

• Dividend Yield. Triple-net REITs are trading at 16.8x 2017E FFO as compared to equity REITs trading at 18.0x. The current dividend yield for the sector is 4.58% vs. the REIT sector dividend yield of 3.65%. The 93 bps spread is 70 bps below the long-term average spread of 163 bps.

• Real Estate Receives Its Own GICS Classification. As of the close on August 31, the real estate sector was separated from financials and became the 11th Global Industry Classification Standard (GICS) by S&P and MSCI. The changes will be implemented on September 16th.

• GPT Announces More Transactions. Gramercy Property Trust (GPT, $9.64, Buy) announced they have sold three more single-tenant office buildings in Princeton, New Jersey, Burlington, Massachusetts, and Bloomington, Minnesota as well as a single-tenant industrial property in Phoenix, Arizona for $206.7 million or a 7.4% forward cash cap rate. The properties had a weighted average lease term of 10.1 years. The company has $158.6 million of assets under contract with an additional $117.8 million being marketed. If those sales close, total dispositions would be $1.5 billion at a 6.8% cap rate, over 12 months ahead of the anticipated schedule. The company also announced two more acquisitions in the Chicago MSA for $60.2 million or a 6.6% cash cap rate with a weighted average lease term of 17.2 years. An additional $342.6 million of assets are under contract/LOI at a 6.75% cap rate with a weighted average lease term of 12.2 years. Total acquisitions are $905.5 million at a 7.0% cap rate with a 12.4 year weighted average lease term.

• STOR receives Investment Grade Credit Rating From S&P. Store Capital Corporation (STOR, $29.64, Buy) received a BBB- credit rating from S&P with a positive outlook. STOR already obtained an investment grade rating from Fitch last November.

Priced as of close 9-2-2016.

STIFEL: Triple-Net - Triple-Net REIT Comp Sheets

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Triple-Net REIT Comp Sheets 8/14/2016
REITs Slightly Pullback, Sector Outperforms. The overall REIT sector pulled back 20 bps this past week and is +15.5% YTD. The triple-net sector outperformed, +50 bps for the week and is +35.5% YTD.

Dividend Yield. Triple-net REITs are trading at 17.2x 2017E FFO as compared to equity REITs trading at 18.0x. The current dividend yield for the sector is 4.50% vs. the REIT sector dividend yield of 3.61%. The 89 bps spread is 74 bps below the long-term average spread of 163 bps.
 
GNL Reports 2Q Results. Global Net Lease (GNL, $8.55, Not Covered) reported 2Q16 AFFO of $0.19/share. The portfolio is 100% leased with a weighted average lease term of 10.8 years with 60.9% of NOI generated in the U.S. and 39.1% from Europe.

Merging With ARC Global II. GNL also announced that the company is merging with American Realty Capital Global Trust II, Inc. for $648.0 million. This combined company will have 345 properties (23 million sf) in 7 countries with an EV of $3.3 billion. The transaction will close in 4Q.

SRC Privately Places Bonds. Spirit Realty Capital, Inc. (SRC, $13.40, Not Rated) privately placed $300 million of 10-Year 4.450% senior notes. Proceeds will be used to pay down the term loan and revolving credit facility.
Priced as of close 8-12-2016.