Observer Lite: 11/23/2025

Thank you for your support!
With the Thanksgiving holiday quickly approaching, I just wanted to say thank you to all subscribers. Hopefully, you continue to find value in the Net Lease Observer content. Today’s issue is released without a paywall to all subscribers, premium and free. Be kind to others and enjoy time with family and friends. - SH

Bonds, more bonds
A trio of listed net lease REIT announced new financings:

First, Realty Income (NYSE: O) amended and restated its term loan. The megacap REIT raised a £900 million Sterling-denominated facility with a ~2-year base term (plus a one-year extension option from the initial January 2028 maturity).

Proceeds from the loan “will be used to repay outstanding Sterling-denominated borrowings…effectively pre-funding the refinancing of [Realty’s] January 2026 multi-currency term loan...”

The facility specifies a borrowing rate of 80bps over the Sterling Overnight Index Average (SONIA) rate and the REIT executed two-year variable-to-fixed interest rate swaps (fixed weighted average per annum interest rate at 4.3%) - making 007 proud. During the first 3 quarters of the year, 71% of O’s investment volume was placed in Europe.

Second, Agree Realty (NYSE: ADC) closed a $350 million delayed draw term loan with a May-2031 maturity. The loan includes an accordion feature for an additional $150 million. ADC has yet to raise proceeds from the financing, which provides for a 12-month delayed draw feature. Utilizing forward swaps, ADC fixed the rate at 4.02%.

Third, Getty Realty (NYSE: GTY) entered into private placement agreements to issue $250 million of senior unsecured notes with a 10-year term and a fixed interest rate of 5.76%. Proceeds will paydown amounts outstanding under its revolver and to fund investment activity.

Sit start
New Mountain Net Lease Trust 3Q2025 earnings disclosures noted $83.4 million in quarterly acquisitions across 4 properties in Sterling, Virginia totaling 316,268 sq. ft. along with $37.7 million of equity capital raised via sales of common shares. The Virginia purchase represented the non-traded REIT’s first acquisition since 2022.

At 9/30, the REIT’s portfolio totaled 169 industrial properties leased to 34 tenants generating $90.1 million in annualized base rent. Subsequent to quarter-end, New Mountain acquired an advanced medical manufacturing asset (128,745 sq. ft.) in October for $43 million.

For its reported net asset value (NAV) calculation, the trust utilized a 6.4% weighted average cap rate. Recently acquired properties are carried at cost, which “approximates fair value”.

Adding chambers
Fortress Net Lease Trust 3Q2025 earnings disclosures noted $678.4 million in quarterly acquisitions (purchase price) across 35 properties along with $131.0 million of equity capital raised via sales of common shares.

At 9/30, the REIT’s portfolio totaled 105 industrial, 114 retail, 3 office, and 2 data center properties totaling 17.4 million sq. ft. with a gross asset cost of $2.6 billion along with $191.9 million in estimated remaining build-to-suit commitments. Most leases are 15-20-year initial term with 2.0-3.0% annual rental escalations.

After quarter-end, October activity included a 19-property retail portfolio sale/leaseback acquisition in Maine for $39 million and a $35 million deposit for the future purchase/leaseback of a distribution center in Brownsburg, IN.

For its reported net asset value (NAV) calculation, the REIT utilized weighted average cap rates of 7.3%, 8.4%, and 8.0% for industrial, retail, and office properties, respectively. Recently acquired properties are carried at cost, which “approximates fair value”.

Net lease north star
A little over 3 years since its acquisition of Stan Johnson Company, brokerage Northmarq announced the formation of a National Net Lease and Sale Leaseback Group. Led by Ryan Butler (Tulsa, OK), Isaiah Harf (Chicago, IL), and Anthony Cohen (Los Angeles, CA), the group includes 20 brokers.

Deal sheet
Alpine Income Property Trust (NYSE: PINE) acquired 3 separately parceled properties in Richmond, VA (177,441 sq. ft.), including a ground lease to Walmart and a 4-tenant building with TJ Maxx as the anchor lessee, for $20.7 million.

Via three discrete deals, Four Corners Property Trust (NYSE: FCPT) acquired (i) a Texas property leased to Caliber Collision with 5 years remaining at a 7.3% cap rate for $4.9 million; (ii) three Missouri automotive service properties via sale/leaseback to an undisclosed tenant at a 7.5% cap rate for $5.9 million; and (iii) a 5-property veterinary clinic portfolio leased to NVA, Banfield Pet, and Mission Pet with a weighted average 9 years remaining at a 7.3% cap rate for $13.8 million.

ExchangeRight announced the full subscription of its Net-Leased All-Cash 15 DST, a $25 million portfolio of unlevered net lease assets providing a current distribution rate of 5.2%. The 103,367 sq. ft. portfolio is leased to Hobby Lobby, Dollar Tree, Napa Auto Parts, and Dollar General (2 properties) with a weighted average lease term of 13.4 years.

Via two discrete deals, Royal Oak Realty Trust acquired (i) a 45,500 sq. ft. Amityville, NY property leased to Calico Cottage (manufacturer of premier finished fudge and fudge related products); and (ii) a 13,500 sq. ft. Tempe, AZ property leased to Foresight Finishing (provider of electroplating services specializing in gold, silver, nickel, copper, tin, and other similar finishes).

Under promise, over deliver
Brokerage CBRE released its 3Q2025 “U.S. Net-Lease Investments” report. Quarterly total market transaction volume was down 4% versus 2Q25 and 9% versus 3Q24. Aggregating nationwide net lease transaction data remains challenging and is likely vastly understated.

For example, Figure 6 of the report (Q3_2025_U.S._Net-Lease_Investments) notes total REIT volume of $766 million. This value is below the acquisition volume reported by just two listed net lease REIT (Agree Realty and Essential Properties) in recent quarterly disclosures. Add in ~20 other single tenant focused REIT, and the domestic value is north of $2 billion.

-Sean Hostert