“Kohlsing time”
Department store retailer Kohl’s (NYSE: KSS) announced it will close 27 underperforming retail stores by April as well as its 970,000 square foot San Bernardino e-commerce fulfillment center upon lease expiration in May.

The company noted efficiency gains from technology advancements and the increased ability of retail stores to fulfill customer orders as justification for the San Bernardino closing. Check out Standing on hot Kohl’s from the January 7th issue of the Net Lease Observer for a timely review of the retailer’s past challenges and potential future path.

Touting trust transactions
Several more listed net lease REIT disclosed 2024 transaction activity updates to end the first full week of the year:

W.P. Carey (NYSE: WPC)
2024 investment activity totaling $1.6 billion, priced at a 7.5% average initial cap rate and 9.0% GAAP cap rate, including:

  • 60% warehouse/industrial, 30% retail, 10% other

  • 75% in North America and 25% in Europe

  • 4Q2024 investment activity of $845 million including $200 million across 106 Dollar General retail stores (14-year WALT), a 1.1 million sq. ft., $100 million industrial facility in Shelbyville, KY leased to Canadian Solar, a $100 million, 5-building manufacturing/industrial campus sale/leaseback in Monterrey, Mexico subject to a 25-year master lease, and a $100 million Centersquare-leased data center in Weehawken, NJ (209,000 sq. ft.).

4Q2024 represented record activity for on-balance sheet investments. The company ultimately reached its original annual investment guidance of $1.5-2.0 billion despite reducing the range to $1.25-1.75 billion during its 2Q2024 earnings release.

FrontView REIT (NYSE: FVR)
4Q2024 acquisition activity totaling $103.4 million including:

  • 7.9% initial cash yield; 11-year weighted average lease term

  • 29 properties located in 16 states and leased to 17 tenants (12 new tenants for FVR) across 7 industries

2025 Pipeline (closed or under contract) of $55 million.

Drew down $200 million delayed-draw term loan (adjusted SOFR+1.2%) to repay its $253 million ABS notes.

Global Net Lease (NYSE: GNL)
2024 closed dispositions of $835 million including:

  • $709.4 million from 121 occupied assets sold at a 7.1% cap rate (4.9-year weighted average lease term)

  • $126.0 million from 57 vacant assets

  • 4Q2024 dispositions included 34 Fresenius dialysis centers ($98.3 million), one Home Depot property ($72.8 million), 35 Pizza Hut restaurants ($34.4 million), and 5 Mister Car Wash sites ($24.3 million)

Net Lease Office Properties (NYSE: NLOP)
Closed dispositions in Nov/Dec 2024 of $43.3 million across five office assets in five states (4 occupied; 1 vacant). Total sale proceeds from dispositions completed during 2024 of $364 million (occupied sales of $319 million at a weighted-average cap rate of 10.5%).

-Sean Hostert