ExchangeRight Net Leased Portfolio 18 DST is a portfolio of 17 single-tenant, long-term net-leased retail assets that are 100% occupied and operated by Advance Auto Parts, CVS Pharmacy, Dollar General, Fresenius Medical Care, Hobby Lobby, NAPA Auto Parts, Tractor Supply, and Walgreens. The portfolio is composed of high-quality tenants with strong credit and provides the investor with access to a diversified portfolio. First-year net perating income is diversified as follows:
- 43.0% Pharmaceutical (CVS, Walgreens)
- 18.0% Discount Necessity Retail (Dollar General)
- 13.9% Necessity Farming (Tractor Supply)
- 10.9% Other Discount Retail (Hobby Lobby)
- 8.0% Discount Automotive (NAPA, Advance Auto)
- 6.2% Necessity Health Care (Fresenius Medical Care)
Annual Income Forecast
The Offering’s projected cash flow as a percentage of equity
for each year throughout the hold period is as follows:
6.62%, 6.64%, 6.65%, 6.67%, 6.68%, 6.90%, 6.94%,
6.96%, 6.98%, 7.02%.
We designed our exit strategy with the goal of providing investors stable cash flow and value-added returns. We believe this is best achieved by aggregating our net-leased portfolios together to be sold, acquired, or listed in the public markets. Combining portfolios helps mitigate lease and debt rollover risk through scale and diversification. Bringing the larger, aggregated portfolio to the public markets aims to capitalize on the premium typically paid for liquidity, diversification, and convenience. This strategy is anticipated to provide investors with the opportunity to sell and perform another 1031 exchange or exchange their DST interests for ownership in a REIT under IRC section 721 in a REIT sale, merger, IPO, or public listing.