While stocks and bonds are subject to the volatility of the market, and fixed income investments offer little return, Net Leases provide the stability of long-term occupancy, the strength of a corporate guarantee and the tangible value of the underlying real estate. Net leased properties provide investors an advantageous tax structure vis-a-vis depreciation, a hedge against inflation via increases in rent , and an overall appreciation in the value of the asset over time.
Long-term predictability of cash flow
Inflation protection via contractual increases in rent
Investors benefit from property appreciation and tax benefits associated with real estate ownership
Net leased properties offer a safe way to access real estate without taking on the typical management and operating costs
Potential for credit enhancements and future cap rate compression in the net leased marketplace
Both the strength of the tenant and the real estate protect the properties downside, allowing investors to capitalize on historically inexpensive debt and attractive spreads to Treasury rates