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INVESTMENT HIGHLIGHTS
Best-in-Class Tenant with Investment Grade Parent Company The leases are guaranteed by Family Dollar Stores, Inc., a wholly owned subsidiary of Dollar Tree, Inc (NASDAQ: DLTR). Dollar Tree is the nation’s largest single price point retailer and holds an investment grade S&P credit rating of BBB/Stable. In FY2023, Dollar Tree reported revenues of $28.3 billion and a net income of $1.61 billion.
New Combo Store Concept In March 2021, Dollar Tree announced the development of a new store format combining Family Dollar and Dollar Tree into one store. These new combo stores leverage the strengths of the Dollar Tree and Family Dollar brands under one roof and the company ended fiscal 2023 with approximately 1,200 combo stores and plan to add hundreds more in the coming years.
10-Year NN Leases with Increases | Recent Construction All three Family Dollar | Dollar Trees are operating under 10-year NN leases with five (5), five (5) year extension options. The leases commenced in 2022 and feature $0.50/SF rent escalations at each option, providing investors with a significant hedge against inflation.
Excellent Visibility | Frontage Along Main Thoroughfares Each Property benefits from frontage along the main thoroughfares through their respective cities and proximity to major highways and interstates, which provides ultimate visibility to the Properties. The Tipton location is situated along State Highway 50 (5,500), the McKenney location is just 0.50 miles from the on-off ramps of Interstate 85 (24,500 VPD) and the Van Buren store is two minutes from US Hwy 60 (5,700 VPD).
