Who should own Investment Grade Net Leased Property and Why?
Investment grade, net leased properties are ideal investment vehicles for people with a need for secure, predictable investment performance without foregoing the potential for capital gains. Compared to “fixed-income” instruments such as corporate or U.S. Treasury bonds, the current income is comparable or superior. However, there are some tax benefits that can improve the “after-tax” current return to surpass bond rates. Additionally, the retirement of indebtedness, or amortization of the financing, provides a secondary- and reliable – benefit. Although one cannot predict future values – especially when the investment horizon can be for 15 to 25 years – property values have historically shown a tendency to increase. This combination of benefits makes investment grade, net leased properties an excellent choice for people who have clear financial goals because the structure of the investment can be modified to achieve their objectives including, but not limited to, retirement income, fu