Conservative Real Estate Investors continue to be attracted to the long term stability being offered by having corporate tenants in their investment properties. Corporate tenant income properties have always been a favorite of institutions but now we are seeing more and more regular investors moving out of residential and multi family properties and into single tenant commercial properties with corporate tenants.
With leases ranging from 5 years to 20 years on investment grade tenants offer investors the long term security they desire. One of the big benefits of these long term triple net lease is that the Tenant and not the property owners are responsible for things like property reapirs and property taxes. With a true triple net corporate lease your income property behaves more like an annuity. The best part is that is requires almost no management on the real estate investors end.
ATTENTION INVESTORS: Need help analyzing, funding and acquiring an income property with a corporate tenant?
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Corporate Tenant Ratings Report
If you are considering investing in real estate with corporate tenants you must first understand both their credit ratings by S&P & Moody’s and their outlook. The corporations credit rating will be a direct driver in the Cap Rate or Cash on Cash Return you will properties will be trading at. Corporate Tenants with A Ratings are typically trading at Cash on Cash Returns in the 5% – 7% Range and B Rated Corporate Tenants typically trade in the 7% – 10 % Range.
Drug Store Corporate Tenant Ratings
Company | S&P Rating | Moody’s Rating | Outlook
CVS Caremark Corporation | BBB+ | Baa2 | Stable
Longs Drug Stores Corp. | N/A | N/A
Rite Aid | B‐ | Caa2 | Stable
Walgreen Co. | A | A2 | Stable
Discount Retailer Corporate Tenant Ratings
Company | S&P Rating | Moody’s Rating | Outlook
99 Cents Only Stores, Inc. | N/A | N/A
Big Lots | BBB | N/A
Costco Wholesale Corp. | A+ | A2 | Stable
Dollar General | BB | Ba3 | Positive
Dollar Tree Stores, Inc. | N/A | N/A
Family Dollar Stores, Inc. | N/A | Baa3 | Stable
Ross Stores Inc. | BBB | N/A
TJ Maxx Companies, Inc. | A | N/A
Grocery Store Corporate Tenant Ratings
Company | S&P Rating | Moody’s Rating | Outlook
Delhaize Group | N/A | Baa3 | Stable
Ingles | BB‐ | Ba3 | Possible Downgrade
Kroger Company | BBB | Baa2 | Stable
Safeway, Inc. | BBB | Baa2 | Stable
Smart & Final | N/A | B3 | Stable
SuperValu, Inc. | B+ | B1 Stable
Tesco, PLC | A‐ A3 | Negative
Wal‐Mart Stores, Inc. | AA | Aa2 | Stable
Weis Markets, Inc. | N/A | N/A
Whole Foods Market, Inc. | BB | Ba2 | Positive
Winn Dixie | N/A | Ratings Withdrawn
Financial Institutions & Banks Corporate Tenant Ratings
Company | S&P Rating | Moody’s Rating | Outlook
Bank of America | A | A2 | Negative
Bank of New York Mellon | AA | Aaa | Stable
BB & T | A | A2 | Stable
Capital One | BBB | A3 | Stable
Citigroup | A | A3 | Negative
Comerica | A | A1 | Negative
Compass Bank | A | A3 | Negative
HSBC Bank USA | AA | Aa3 | Negative
JP Morgan/Chase | A+ | Aa3 | Negative
National City Bank | A+ | A2 | Positive
Northern Trust Corporation | AA‐ | A1 | Stable
Suntrust Bank | BBB | Baa1 | Stable
Union Bank | N/A | A2 | Negative
US Bank | A+ | A1 | Negative
Wachovia | N/A | Aa2 | Negative
Wells Fargo Bank | AA | Aa2 | Stable
Zion’s Bancorp | BBB‐ | B2 | Positive
Retailer Corporate Tenant Ratings
Company | S&P Rating | Moody’s Rating | Outlook
Advance Auto Parts | BBB‐ | Baa3 | Stable
AT&T | N/A | A2 | Stable
AutoZone, Inc. | BBB | Baa2 | Stable
Bally’s Total Fitness | N/A | N/A
Barnes & Noble, Inc. | N/A | Ratings Withdrawn
Bed Bath & Beyond, Inc. | BBB | N/A
Best Buy Company, Inc. | BBB‐ | Baa2 | Possible Downgrade
Big 5 Sporting Goods | N/A | Ratings Withdrawn
Borders Group, Inc. | N/A | N/A
Caterpillar | A | A2 | Stable
Cinemark | B+ | B1 |Stable
Cost Plus | N/A | N/A
CSK Automotive Corp | N/A | N/A
Dell Inc. | A‐ | A2 | Stable
Dick’s Sporting Goods | N/A | N/A
Disney Stores | A | N/A
Estee Lauder | A | A2 | Stable
Federal Express | BBB | Baa2 | Stable
H&R Block | BBB | N/A
Harley Davidson Inc | N/A | Ratings Withdrawn
Home Depot, Inc. | BBB+ |Baa1 | Stable
Krispy Kreme | B‐ | B3
L.A. Fitness | N/A | N/A
La‐Z‐Boy, Inc. | N/A | N/A
Lowe’s Companies, Inc. | A | A1 | Stable
Nike | A+ | A1 | Stable
Office Depot, Inc. | B | B2 | Negative
OfficeMax | B | N/A
Pep Boys | B | B1 | Stable
PetSmart Inc. | BB | Ratings Withdrawn
RadioShack | BB | Ba1 | Stable
Regal Entertainment Group | B+ | B3 | Stable
Rent‐A Center Inc. | BB | Ba2 | Stable
Seven‐ 11 Japan Co LTD | AA‐ | N/A
Sherwin‐Williams Company | A | A3 | Stable
Sprint‐ Nextel Corp | BB‐ | Ba2 | Possible Downgrade
Staples | BBB | Baa2 | Stable
Staples, Inc. | BBB | Baa2 | Stable
Tiffany & Co | N/A | Ratings Withdrawn
Verizon | A‐ | A3 | Stable
Restaurants (Corporate Backed) Tenant Ratings
Company | S&P Rating | Moody’s Rating | Outlook
Brinker International | BBB‐ | Ba1 | Stable
Burger King Corporation | N/A | B2 | Stable
California Pizza Kitchen | N/A | N/A
Chipotle | N/A | N/A
CKE Restaurants | B | B2 | Negative
Dairy Queen | N/A | N/A
Darden Restaurants, Inc. | BBB | Baa2 | Stable
Denny’s Corp | B+ | B2 | Stable
DineEquity, Inc | B | B2 | Stable
Domino’s Pizza | N/A | Ratings Withdrawn
Einstein Noah Restrnt Group | N/A | Ratings Withdrawn
El Pollo Loco | CCC | Caa2 | Negative
Jack In The Box, Inc. | N/A | Ba3 | Negative
Landry’s Restaurants | B | B3 | Negative
McDonald’s Corporation | A | A2 | Stable
P. F. Chang’s China Bistro | N/A | N/A
Panera Bread Company | N/A | N/A
Papa John’s International Inc | N/A | N/A
Perkins & Marie Calendar’s | N/A | Caa3 | Negative
Red Robin Gourmet Burgers | N/A | N/A
Rubio’s Restaurants | N/A | N/A
Starbucks Corporation | BBB+ | Baa3 | Positive
Texas Roadhouse, Inc | N/A | N/A
The Cheesecake Factory | N/A | N/A
Wendy’s/Arby’s Group | B+ | B2 | Developing
Yum! Brand’s | BBB‐ | Baa3 | Stable
Department Stores & Apparel Retailers Corporate Tenant Ratings
Company | S&P Rating | Moody’s Rating | Outlook
American Apparel | N/A | N/A
Bebe | N/A | N/A
Charming Shops Inc | B| Ratings Withdrawn
Collective Brands Inc | B+ | B1 | Stable
Dillard’s Inc | BB | B2 | Positive
Eddie Bauer Corp. | N/A | Ratings Withdrawn
Gap, Inc. | BB+ | Ratings Withdrawn
Guess | N/A | Ratings Withdrawn
J. Crew | B | B2 | Stable
JC Penney | BB+ | Ba1 | Stable
Jo‐Ann Stores, Inc. | B | B2 | Stable
Jos.A.Bank | N/A | N/A
Kenneth Cole | N/A | N/A
Kohl’s Corporation | BBB+ | Baa1 | Stable
Macy’s, Inc. | BB+ | Ba1 | Stable
Men’s Wearhouse, Inc. | N/A | N/A
New York & Co | N/A | N/A
Nordstrom Inc. | A‐ | Baa1 | Stable
Polo Ralph Lauren | A‐ | A3 | Stable
Retail Ventures Inc | N/A | N/A
Saks Inc. | BB‐ | B1 | Positive
Sears Holdings | BB‐ | Ba2 | Positive
Shoe Carnival | N/A | N/A
Shoe Pavilion | N/A | N/A
Talbot’s, Inc. | N/A | N/A
Target Corporation | A+ | A2 | Stable
The Bon Ton | B | N/A
Urban Outfitters | N/A | N/A
Disclaimer: Corporate Tenant Ratings are continually being assessed by both Moody’s & Standard & Poors. The Buyers Utopia netwrok does our best to maintain updates to credit rankings however investors are encouraged to verify rankings directly with Moddy’s & Standard & Poor’s for most up to date credit tenant ratings.
ATTENTION INVESTORS: Need help analyzing, funding and acquiring an income property with a corporate tenant?
[iphorm_popup id=1 name=”Contact Form”]Yes, I would like to learn about investing in properties with long term corporate tenants ![/iphorm_popup] We specialize in income properties with corporate tenants nationwide.