Item 2. Properties
Item 2. Properties
Between the closing of our initial public offering and December 31, 2020, we acquired 53 single-tenant retail net lease properties with an aggregate purchase price of $147.5 million. As of December 31, 2020, our diversified portfolio consisted of 203 single-tenant retail net leased properties spanning 38 states, with tenants representing 56 different brands or concepts across 23 retail sectors. As of December 31, 2020, our portfolio consisted of 3.7 million square feet and was 100% occupied.
As of December 31, 2020, our portfolio generated ABR of $41.8 million. As of December 31, 2020, our portfolio had a WALT of 10.5 years and consisted of approximately 70.0% and 8.0% of investment grade tenants and investment grade profile tenants, respectively, by ABR. As of December 31, 2020, none of our tenants represented more than 8.9% of our portfolio by ABR, and our top 10 largest tenants represented in aggregate 55.4% of our ABR. Nine of our top 10 tenants are publicly traded companies and nine have investment grade credit ratings, in addition to Ollie's Bargain Outlet, an investment grade profile tenant.
Tenant Diversification
As of December 31, 2020, our 203 properties were operated by 56 tenants, each representing a distinct brand or concept, with no one tenant representing more than 8.9% of our portfolio by ABR. The following table details information about our tenants as of December 31, 2020 (dollars in thousands):
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Tenant 1
Number of Properties Square Feet ABR 2
% of ABR ABR per Square Foot 2
Weighted Average Lease Term 3
7-Eleven, Inc. 15 63,461 $ 3,729 8.9 % $ 58.75 14.5
Lowe's Companies, Inc. 4 501,771 3,578 8.6 % 7.13 13.2
Advance Stores Company, Inc. (Advance Auto Parts) 33 235,244 3,193 7.6 % 13.57 10.5
Wal-Mart Stores, Inc. 4 651,301 2,720 6.5 % 4.18 8.5
CVS Health Corporation 12 131,535 2,221 5.3 % 16.89 14.0
Dollar General Corporation 21 195,309 1,991 4.8 % 10.19 8.7
Ollie's Bargain Outlet, Inc. 7 272,495 1,918 4.6 % 7.04 9.1
Walgreen Co. 4 60,725 1,329 3.2 % 21.89 10.9
Koninklijke Ahold Delhaize N.V. (Food Lion / Stop & Shop) 2 66,158 1,268 3.0 % 19.17 6.5
Home Depot U.S.A, Inc. 1 116,818 1,202 2.9 % 10.29 6.3
Kohl's Department Stores, Inc. 2 165,870 1,147 2.7 % 6.91 5.1
Tractor Supply Company 5 105,142 1,016 2.4 % 9.66 10.7
Burlington Coat Factory Warehouse Corporation 2 73,459 903 2.2 % 12.29 9.1
Best Buy Stores, L.P. 2 76,400 854 2.0 % 11.18 6.5
Floor & Décor Outlets of America, Inc. 1 84,177 815 2.0 % 9.69 9.1
Fresenius Medical Care Holdings, Inc. 3 22,647 787 1.9 % 34.75 10.4
Dollar Tree Stores, Inc. / Family Dollar Stores, Inc. 7 65,355 783 1.9 % 11.98 8.0
CWGS Group, Inc. (Camping World) 1 66,056 705 1.7 % 10.68 13.0
Branch Banking and Trust Company 5 15,388 660 1.6 % 42.87 8.0
Big Jack Holdings LP (Jack's) 4 12,289 656 1.6 % 53.35 15.0
Top 20 Subtotal 135 2,981,600 31,476 75.3 % 10.56 10.5
Other 68 751,462 10,328 24.7 % 13.74 10.6
Total / Weighted Average 3
203 3,733,062 $ 41,804 100 % $ 11.20 10.5
1 Represents tenant or guarantor.
2 ABR does not give effect to an aggregate $0.2 million of rent deferral and $0.7 million of rent abatement in the period from March 2020 through August 2020. The Company has not provided for any abatements or deferrals after August 2020.
3 Weighted by ABR.
Tenant Industry Diversification
The majority of our portfolio is comprised of properties leased to tenants operating in defensive retail industries, with 90.5% of our ABR as of December 31, 2020 coming from necessity, service-oriented, and/or discount industries. Necessity-based industries are those that are considered essential by consumers and include sectors such as home improvement, auto parts, drug stores, general retail, and grocers. Service-oriented industries consist of retailers that provide services rather than goods, including, for example, convenience stores, quick service and casual dining restaurants, and tire and auto services. Discount retailers offer a low price point and consist of off-price and dollar stores.
The following chart illustrates the percentage of our ABR attributable to defensive retail industries as of December 31, 2020:
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The breakdown of our necessity-based retail, service-oriented, discount-focused, and other, non-defensive retail industries by sector and by percentage of ABR as of December 31, 2020 is set forth below (dollars in thousands):
Annualized Base Rent 1
Gross Leasable Area
Tenant Industry and Sector Number of Leases Dollars % of Total Square Feet % of Total
Necessity-Based Retail
Home Improvement 15 6,737 16.1 % 786,181 21.1 %
Auto Parts 48 4,169 10.0 % 328,563 8.8 %
Drug Stores & Pharmacies 16 3,551 8.5 % 192,260 5.2 %
General Retail 4 2,658 6.4 % 666,846 17.9 %
Grocery 5 2,248 5.4 % 158,235 4.2 %
Farm Supplies 5 1,016 2.4 % 105,142 2.8 %
Healthcare 3 787 1.9 % 22,647 0.6 %
Wholesale Warehouse Club 1 417 1.0 % 110,858 3.0 %
Banking 5 660 1.6 % 15,388 0.4 %
Total Necessity-Based Retail 102 22,243 53.2 % 2,386,120 63.9 %
Service-Oriented Industry
Convenience Stores 17 4,161 10.0 % 74,640 2.0 %
Quick Service Restaurants 15 2,380 5.7 % 44,407 1.2 %
Casual Dining 5 904 2.2 % 25,886 0.7 %
Automotive Service 9 807 1.9 % 37,406 1.0 %
Total Service-Oriented Industry 46 8,251 19.7 % 182,338 4.9 %
Discount-Focused Industry
Discount Retail 13 4,576 10.9 % 590,297 15.8 %
Dollar Stores 28 2,774 6.6 % 260,664 7.0 %
Total Discount-Focused Industry 41 7,349 17.6 % 850,961 22.8 %
Defensive Retail Industries 189 37,844 90.5 % 3,419,419 91.6 %
Other, Non-Defensive Industries
Furniture Stores 2 872 2.1 % 47,101 1.3 %
Consumer Electronics 2 854 2.0 % 76,400 2.0 %
RV Sales 1 705 1.7 % 66,056 1.8 %
Apparel 4 506 1.2 % 39,126 1.0 %
Arts & Crafts 1 451 1.1 % 55,079 1.5 %
Equipment Rental and Leasing 2 237 0.6 % 17,687 0.5 %
Gift, Novelty, and Souvenir Shops 1 200 0.5 % 8,081 0.2 %
Home Furnishings 1 134 0.3 % 4,114 0.1 %
Total Other, Non-Defensive 14 3,960 9.5 % 313,644 8.4 %
Total, All Industries 203 41,804 100.0 % 3,733,062 100.0 %
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1 Certain figures in this table may not foot due to rounding.
Geographic Diversification
The following table presents ABR by state for our portfolio as of December 31, 2020 (dollars in thousands):
Annualized Base Rent Gross Leasable Area
Tenant State Number of Leases Dollars % of Total Square Feet % of Total
Texas 31 6,933 16.6 % 349,397 9.4 %
Georgia 13 3,365 8.0 % 470,421 12.6 %
Virginia 4 2,551 6.1 % 170,494 4.6 %
Mississippi 12 2,324 5.6 % 383,089 10.3 %
Ohio 11 2,271 5.4 % 222,300 6.0 %
Florida 12 1,803 4.3 % 77,318 2.1 %
Illinois 5 1,761 4.2 % 145,692 3.9 %
Pennsylvania 13 1,748 4.2 % 116,906 3.1 %
New York 4 1,681 4.0 % 207,131 5.5 %
Alabama 11 1,633 3.9 % 91,682 2.5 %
Indiana 7 1,508 3.6 % 137,079 3.7 %
Michigan 4 1,383 3.3 % 138,199 3.7 %
Tennessee 5 1,249 3.0 % 91,970 2.5 %
Arkansas 7 1,182 2.8 % 46,275 1.2 %
Minnesota 4 1,151 2.8 % 92,535 2.5 %
Missouri 5 960 2.3 % 114,252 3.1 %
California 1 815 2.0 % 84,177 2.3 %
New Jersey 6 780 1.9 % 26,740 0.7 %
New Mexico 2 583 1.4 % 25,869 0.7 %
Wisconsin 7 545 1.3 % 36,208 1.0 %
Other 1
39 5,576 13.3 % 705,328 18.9 %
Total 203 41,804 100.0 % 3,733,062 100.0 %
1 Includes 18 states generating less than 1.25% of annualized base rent.
Lease Terms and Expirations
Our leases typically have initial lease terms of at least 10 years and contain two or more options for the tenant to extend the lease term, most often for additional five-year periods. All of our tenants are subject to net lease agreements. More than 83% of the leases in our portfolio are triple-net, with the remaining leases double-net. Under a triple-net lease, the tenant is generally responsible for materially all property operating expenses, including property taxes, insurance, and property maintenance and repairs; however as is common for triple-net leases, the landlord may be responsible for maintenance of the roof and parking lot. Under a double-net lease, the tenant is generally responsible for materially all property expenses, including property taxes and insurance, but excluding property maintenance and repairs. In addition, as of December 31, 2020, approximately 42% of our investment grade tenants and 98% of our sub-investment grade tenants were subject to future rent increases based on fixed amounts, increases in the consumer price index or other stipulated reference rate, or provide for additional rent calculated as a percentage of the tenants’ gross sales above a specified level. The leases in our portfolio as of December 31, 2020 provided for an average 0.79% increase in ABR.
As of December 31, 2020, the leases in our portfolio had a WALT of 10.5 years, with no lease expiring prior to June 2023. The following table illustrates contractual lease expirations within the Company's portfolio as of December 31, 2020, assuming no exercise of contractual extension options (dollars in thousands):
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Annualized Base Rent 1
Gross Leasable Area
Year Number of Leases Dollars % of Total Square Feet % of Total
2021 — — — % — — %
2022 — — — % — — %
2023 3 267 0.6 % 25,820 0.7 %
2024 1 92 0.2 % 4,000 0.1 %
2025 6 2,280 5.5 % 308,998 8.3 %
2026 7 1,816 4.3 % 203,975 5.5 %
2027 8 2,740 6.6 % 231,473 6.2 %
2028 20 3,114 7.4 % 304,557 8.2 %
2029 22 3,335 8.0 % 273,787 7.3 %
2030 26 6,074 14.5 % 709,983 19.0 %
2031 30 4,868 11.6 % 332,423 8.9 %
2032 13 3,329 8.0 % 617,989 16.6 %
2033 20 2,687 6.4 % 210,288 5.6 %
2034 9 1,165 2.8 % 32,365 0.9 %
2035 23 7,570 18.1 % 375,057 10.0 %
Thereafter 15 2,467 5.9 % 102,349 2.7 %
Total 203 41,804 100.0 % 3,733,062 100.0 %
1 Certain figures in this table may not foot due to rounding.
Developments
During the fourth quarter of 2020, construction was completed on a build-to-suit project with rent scheduled to commence in January 2021. Total cost of the project was $1.6 million.
During the second quarter of 2020, construction was completed on a build-to-suit project with rent commencing in July 2020. Total cost of the project was $0.8 million.
Tenant Land Acquired Location Lease Structure Lease Term Actual or Anticipated Rent Commencement Status
Circle K 1/14/2020 North Little Rock, AR Build-to-Suit 20 years 7/1/2020 Complete
Circle K 4/3/2020 North Little Rock, AR Build-to-Suit 20 years 1/1/2021 Complete
Item 3. Legal Proceedings
From time to time, we may be party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. We are not currently subject to any lawsuits, claims or other legal proceedings.
Item 4. Mine Safety Disclosures
Not applicable.
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PART II — OTHER INFORMATION