Laying a whole lot of Tuyl
Just days after disclosing the planned opening of its 250th store, active net lease tenant BJ’s Wholesale Club Holdings (NYSE: BJ) announced the planned construction of a new 500,000 square foot distribution center in Commercial Point, OH.
The facility, sitting on 125 acres to allow for future expansion, will serve as a hub to replenish ambient-temperature grocery and general merchandise items in the BJ’s network.
VanTrust Real Estate, developer entity of car dealership magnate Larry Van Tuyl, has developed over 11.8 million square feet in Ohio since 2014 and is managing the development with its Columbus-based team.
With an expecting opening in early 2027, the property will include automated pallet storage, case-handling equipment and mixed-case pallet building for club-friendly replenishment. BJ’s operates eight warehouse clubs in Ohio.
REITSeek
In a single day, market darling NVIDIA (NASDAQ: NVDA) saw its market capitalization fall by $600 billion or 4x the value of the 25 net lease REIT covered by the Observer. Net lease REIT acted as a technology hedge for the day, with good old ‘sticks and bricks’ single tenant owners advancing across the board.
The six largest net lease REIT (by market cap) saw share price appreciation between 2.8% and 3.6%.
Although avoiding the day-to-day (and month-to-month or year-to-year) fluctuations of the market is always the Observer’s goal, yesterday was particularly noteworthy.
Run through the jungle
Full year 2024 earnings release season kick offs next week and will continue into March for the net lease REIT sector.
The Observer will take particular interest in any disclosures around (i) dry powder / capital raise needs for 2025; (ii) tenant credit trends and performance; (iii) commentary around pipelines and deal supply, and (iv) cost pressures (interest burden, property expenses, G&A) impacting investment spreads and earnings growth.
-Sean Hostert