Lease Risk

Lease risk remains well-controlled with average remaining lease term of 8.4 years and only a small share of the portfolio expiring in the next two years. Historical renewal rate provides strong baseline for retention projections. Industrial and medical portfolios show strongest fundamentals with minimal expiration risk and positive demand trends. Retail pharmacy cohort represents primary watch area with elevated 2026-2027 expiration clustering, though credit quality of major operators (CVS, Walgreens) remains satisfactory. Office portfolio carries modest risk from general office market softness, but triple-net protection limits landlord exposure. Vacancy remains low, which demonstrates strong leasing execution.

Lease risk is a weighted function of four inputs: remaining lease term, which counts the most; expiration clustering; tenant renewal history; and property-level vacancy. Remaining term is weighted toward properties with less than five years left, which score as higher risk. Expiration clustering penalizes a pile of expirations in the same twelve-month window. Renewal assumptions follow the tenant's history and credit. Vacancy is read at the property and then rolled up.

The data, risk scores, and analysis on this page are for informational and educational purposes only. They do not constitute investment advice, credit analysis, or a recommendation to buy or sell any security. Risk scores are illustrative estimates based on publicly available information and should not be relied upon as the sole basis for investment decisions. Credit ratings referenced are sourced from public company filings and may not reflect the most current agency ratings. Company names are used for illustrative purposes; their inclusion does not imply any specific investment recommendation or prediction of financial distress. Always consult licensed financial professionals and primary data sources (S&P Global, Moody's, Fitch, SEC EDGAR) before making investment decisions.