Tenant Credit Ratings
The following ratings and probability estimates provided for general information purposes only and should not be relied on without further verification.
| Tenant | Stock Symbol |
Standard & Poors |
Probability of Default (5 years) |
Moodys | Probability of Default (5 years) |
|---|---|---|---|---|---|
| 7-Eleven | SE | AA- | 0.20% | Baa3 | 4.00% |
| A&P | GAP | B- | 43.00% | Caa2 | 60.00% |
| Abercrombie & Fitch | ANF | - | - | - | - |
| Advance Auto | AAP | BBB- | 4.00% | Ba1 | 7.00% |
| Aeropostale | ARO | - | - | - | - |
| American Eagle | AEO | - | - | - | - |
| Ann Taylor | ANN | NR | - | - | - |
| Apple Inc. | AAPL | - | - | - | - |
| Ashland Inc | ASH | BB+ | 7.00% | Ba1 | 7.00% |
| AT&T | T | A | 0.60% | A2 | 0.60% |
| AutoZone | AZO | BBB | 2.00% | Baa2 | 2.00% |
| Babies "R" Us | - | - | - | - | |
| Bank of America | BAC | A | 0.60% | A2 | 0.60% |
| Barnes & Noble | BKS | NR | - | Ba2 | 9.00% |
| BB&T | A | 0.60% | A1 | 0.40% | |
| Bebe | BEBE | - | - | - | - |
| Bed, Bath & Beyond | BBBY | BBB | 2.00% | - | - |
| Benetton | BNGPY.PK | - | - | - | - |
| Best Buy | BBY | BB+ | 4.00% | Baa1 | 2.00% |
| Big 5 Sporting Goods Corp |
BGFV | NR | - | - | - |
| Big Lots Inc. | BIG | BBB- | 4.00% | - | - |
| BJsWholesaleClub | BJ | - | - | - | - |
| Blockbuster Entertainment |
BBI | CC | 60.00% | Caa3 | 60.00% |
| Books-A-Million | BAMM | - | - | - | - |
| Borders Group Inc | BGP | - | - | - | - |
| BP America | BP | AA- | 0.20% | Aa3 | 0.20% |
| Bridgestone / Firestone | BFNT | - | - | NR | - |
| Brinker Intemational | EAT | BBB- | 4.00% | Ba1 | 7.00% |
| Build-A-Bear Workshop |
BBW | - | - | - | - |
| Burger King Corp | BKC | B+ | 19.00% | Ba2 | 9.00% |
| Cache | CACH | - | - | - | - |
| California Pizza Kitchen |
CPKI | - | - | - | - |
| Capital One Financial Corp |
COF | BBB+ | 1.50% | Baa1 | 1.50% |
| Carrols Corp / Carrols Restaurant Group Inc |
TAST | B | 31.00% | - | - |
| Casual Male Corp | CMRG | NR | - | NR | - |
| CBRL Group | CBRL | BB- | 19.00% | Ba3 | 19.00% |
| Charlotte Russe | - | - | - | - | |
| Charming Shoppes | CHRS | B- | 43.00% | NR | - |
| Chase Bank | JPM | A+ | 0.20% | Aa1 | 0.15% |
| Cheesecake Factory | CAKE | - | - | - | - |
| Chevron Corp | CVX | AA | 0.20% | Aa1 | 0.15% |
| Chico's | CHS | - | - | - | - |
| Children's Place | PLCE | - | - | - | - |
| Circle K (Alimentation Couche-Tard) |
ANCUF | BBB | 7.00% | NR | - |
| Citibank | C | A+ | 0.40% | A1 | 0.40% |
| Citizens Bank | CRBC | NR | - | NR | - |
| CKE Restaurants | CKR | BB- | 19.00% | Ba3 | 19.00% |
| Coach | COH | NR | - | - | - |
| Coldwater Creek | CWTR | - | - | - | - |
| Cost Plus Inc. | CPWM | - | - | - | - |
| Costco Wholesale Corp | COST | A+ | 0.40% | A2 | 0.60% |
| CVS | CVS | BBB+ | 1.50% | Baa2 | 2.00% |
| Darden Restaurants | DRI | BBB | 2.00% | Baa3 | 4.00% |
| DaVita Inc | DVA | BB | 19.00% | Ba3 | 19.00% |
| Delhaize Group S.A. | DELB:BB | BBB- | 4.00% | Baa3 | 4.00% |
| Denny's Inc. | DENN | NR | - | Ba2 | 9.00% |
| Dillard's Inc. | DDS | B+ | 25.00% | B2 | 31.00% |
| DineEquity | DIN | - | - | - | - |
| Dollar General | DG | BBB | 9.00% | B1 | 25.00% |
| Dollar Tree | DLTR | - | - | - | - |
| Dress Barn | DBRN | - | - | - | - |
| DSW | DSW | - | - | - | - |
| Eddie Bauer | EBHI | NR | - | NR | - |
| Einstein Noah | BAGL | - | - | NR | - |
| Exxon Mobil | XOM | AAA | 0.15% | Aaa | 0.15% |
| Family Dollar | FDO | - | - | - | - |
| FedEx | FDX | BBB | 2.00% | Baa2 | 2.00% |
| Fifth Third Bancorp | FITB | BBB | 2.00% | - | - |
| Finish Line | FINL | - | - | - | - |
| Food Lion (DelhaizeAmerica) |
DEG | BBB- | 4.00% | Baa3 | 4.00% |
| Foot Locker | FL | B+ | 25.00% | Ba3 | 19.00% |
| Fred's | FRED | - | - | - | - |
| Fresenius Medical Care AG |
FMS | BBB- | 9.00% | Ba1 | 7.00% |
| Fresh & Easy | TSCO | A- | 0.60% | A3 | 0.60% |
| Frisch's Restaurants |
FRS | - | - | - | - |
| Gamestop Corp | GME | BB+ | 7.00% | Ba1 | 7.00% |
| Goodyear Tire & Rubber Company |
GT | BB- | 19.00% | Ba3 | 19.00% |
| Gottschalks | GOTTQ:OTC | - | - | - | - |
| Guess | GES | - | - | NR | - |
| Gymboree | GYMB | - | - | - | - |
| Hhgregg | HGG | B+ | 25.00% | Ba3 | 19.00% |
| HibbettSports | HIBB | - | - | - | - |
| Home Depot | HD | BBB+ | 1.50% | Baa1 | 1.50% |
| Hot Topic | HOTT | - | - | - | - |
| Ingles Markets Inc | IMKTA | BB- | 19.00% | Ba3 | 19.00% |
| J.Crew | JCG | BB+ | 7.00% | NR | - |
| J.P. Morgan Chase & Co. |
JPM | A+ | 0.40% | Aa3 | 0.20% |
| Jack in The Box | JBX | BB- | 19.00% | Ba3 | 19.00% |
| JC Penney | JCP | BB+ | 7.00% | Ba1 | 7.00% |
| Jos A. Bank | JOSB | - | - | - | - |
| Kenneth Cole | KCP | - | - | - | - |
| Key Bank | KEY | BBB+ | 1.50% | Baa1 | 1.50% |
| KinderCare (Knowledge Learning Corporation) |
KLC | NR | - | B1 | 25.00% |
| Kohl's Corp. | KSS | BBB | 1.50% | Baa1 | 1.50% |
| KoninkIijke AhoId N.V. |
AHONY.PK | BBB | 2.00% | Baa3 | 4.00% |
| Kroger | KR | BBB | 2.00% | Baa2 | 2.00% |
| Landry's Restaurants | LNY | - | - | B2 | 31.00% |
| Limited | LTD | BB | 9.00% | Ba2 | 9.00% |
| Liz Claibome | LIZ | B- | 43.00% | B3 | 43.00% |
| Longs Drugs/CVS | CVS | - | - | - | - |
| Lowe's | LOW | A- | 0.40% | A | 0.40% |
| Luxxotica | LUX | - | - | - | - |
| Macy's Inc. | M | BB+ | 7.00% | Ba1 | 7.00% |
| Max & Erma's | MAXE | - | - | - | - |
| McCormick & Schmick's | MSSR | - | - | - | - |
| McDonalds Corp. | MCD | BBB+ | 0.60% | A3 | 0.60% |
| Men's Wearhouse | MW | - | - | - | - |
| Morton's Restaurant Group | MRT | - | - | NR | - |
| Mothers Work Inc | DEST | B | 31.00% | B2 | 31.00% |
| NationsBank of Texas | NB | NR | - | - | - |
| NewYork& Co. | NWY | - | - | - | - |
| Nordstrom | JWN | BBB+ | 1.50% | Baa2 | 2.00% |
| Office Depot | ODP | B | 31.00% | B2 | 31.00% |
| Office Max | OMX | B- | 43.00% | B1 | 25.00% |
| O'Reilly Auto Parts | ORLY | BBB+ | - | - | - |
| Osco Drug | SVU | see Supervalu | - | - | - |
| Owens Corning | OC | BBB- | 4.00% | Ba1 | 7.00% |
| Pacific Sunwear | PSUN | - | - | - | - |
| Panera | PNRA | - | - | - | - |
| Payless Shoe Source | PSS | B+ | 25.00% | B1 | 25.00% |
| Pep Boys | PBY | BBB- | 43.00% | B2 | 31.00% |
| Petsmart | PETM | BB | 9.00% | NR | - |
| PF Chang's China bistro | PFCB | - | - | - | - |
| Pier 1 Imports | PIR | - | - | NR | - |
| PNC Bank | PNC | A | 0.40% | A1 | 0.40% |
| Polo Ralph Lauren | RL | BBB+ | 1.50% | Baa1 | 1.50% |
| Publix | A | 0.60% | - | - | |
| Raytheon Company | RTN | A- | 0.60% | Baa1 | 1.50% |
| Radio Shack | RSH | BB | 9.00% | Ba1 | 7.00% |
| RBC Bank | RY | A- | 0.60% | A1 | 0.40% |
| Red Robin Gourmet Burgers | RRGB | - | - | - | - |
| Regal Entertainment Group | RGC | B+ | 25.00% | NR | - |
| Regis Corporation | RGS | - | - | - | - |
| Rite-Aid | RAD | B | 43.00% | Caa2 | 60.00% |
| Ross Stores | ROST | BBB | 2.00% | - | - |
| Rubio's Restaurants | RUBO | - | - | - | - |
| Ruth's Hospitality Group | RUTH | - | - | - | - |
| Safeway | SWY | BBB | 2.00% | Baa2 | 2.00% |
| Saks Inc. | SKS | B+ | 25.00% | B2 | 31.00% |
| Sears Holdings | SHLD | BB- | 19.00% | Ba2 | 9.00% |
| Shell Oil | RDS.A | AA | 0.20% | Aa2 | 0.20% |
| Sherwin-Williams | SHW | A | 0.60% | A3 | 0.60% |
| Shoe Carnival | SCVL | - | - | - | - |
| Shoe Pavilion | SHOEQ | - | - | - | - |
| Skechers | SKX | - | - | - | - |
| Sonic Corporation | SONC | - | - | NR | |
| Staples | SPLS | BBB | 2.00% | Baa2 | 2.00% |
| Starbucks | SBUX | A- | 1.50% | Baa3 | 4.00% |
| Stein Mart, Inc. | SMRT | - | - | - | - |
| Steve Madden | SHOO | - | - | - | - |
| Supervalu | SVU | BB- | 19.00% | Ba3 | 19.00% |
| Syms | SYMS | - | - | - | - |
| Talbot's | TLB | - | - | - | - |
| Target | TGT | A+ | 0.40% | A2 | 0.60% |
| The Bon Ton Stores Inc | BONT | B | 31.00% | B3 | 43.00% |
| The Buckle, Inc. | BKE | - | - | - | - |
| The Cato Corporation | CATO | - | - | - | - |
| The Cheesecake Factory | CAKE | - | - | - | - |
| The Gap, Inc. | GPS | BB+ | 7.00% | NR | - |
| Tiffany & Co. | TIF | - | - | NR | - |
| TJ. Maxx/Marshalls/ Home Goods (TJX Cos Inc) |
TJX | A | 0.60% | A3 | 0.60% |
| T-Mobile USA (Deutsche Telekom) |
DT | BBB+ | 1.50% | Baa1 | 1.50% |
| Tractor Supply Company | TSCO | - | - | - | - |
| Triarc Companies | TRY | NR | - | NR | - |
| True Religion | TRLG | - | - | - | - |
| Urban Ouffitters | URBN | - | - | - | - |
| US Bancorp | USB | A+ | 0.40% | Aa3 | 0.20% |
| VCA Veterinary Hospital | WOOF | BB | 9.00% | Ba2 | 9.00% |
| Verizon | VZ | BBB+ | 0.60% | A3 | 0.60% |
| Wachovia Corp | WB | NR | - | A1 | 0.40% |
| Walgreen Co | WAG | BBB | 0.60% | A2 | 0.60% |
| Wal-Mart | WMT | AA | 0.20% | Aa2 | 0.20% |
| Walt Disney CO | DIS | A | 0.60% | - | - |
| Weis Markets | WMK | - | - | - | - |
| Wells Fargo | WFC | AA- | 0.20% | A1 | 0.40% |
| Wendy's/Arby's Group | WEN | B | 25.00% | B2 | 31.00% |
| West Marine | WMAR | - | - | - | - |
| Whole Foods | WFMI | BBB- | 19.00% | Ba3 | 19.00% |
| Williams-Sonoma | WSM | - | - | - | - |
| Wilson's | WLSN | - | - | NR | - |
| Winn-Dixie | WIN | NR | - | NR | - |
| Yum! Brands | YUM | BB | 4.00% | Baa3 | 4.00% |
| Zale CP | ZLC | NR | - | NR | - |
What is a NNN Lease?
In a triple-net lease (NNN), the tenant pays all the operating expenses, property taxes, utilities, insurance premiums, maintenance and repairs. The landlord gets to collect monthly net rental income just as he or she would with a traditional real estate investment. Such a lease usually extends over the long term, with a financially strong corporate entity guaranteeing a lease anywhere from 10-25 years.
Example:
Wendy’s is your tenant for a guaranteed 20-year period. The tenant is responsible for all costs to operate and maintain the property, this is sometimes referred to as an “absolute” Triple-Net lease because the only management required is paying the mortgage (if there is one) and receiving the rent checks. Triple-Net lease ownership is great for first-time real estate investors as well as for long time investors seeking purchase or trade into less complicated real estate investments. In many cases, when the lease expires, you will own the property free and clear.
The price range for a NNN lease property is generally between $1 million - $7 million. The fast food restaurants and auto stores and are the most affordable, while drugstores are on the higher end. Big box retailers such as Home Depot, Lowe’s, and Publix can bring from $15 million to $25 million.