We purchase commercial real estate for cash leased to tenants that have a good business and operating track record. The leases are typically for 10 to 20 years, which provides us with dependable lease payments each month that are used to support monthly dividend payments to our shareholders.
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We own over 4,200 properties, diversified across 47 industries and 228 companies, located throughout 49 states in the US and Puerto Rico.Typical Property Types
The majority of our tenants fall into the retail industry category as they generally operate retail stores providing non-discretionary goods and services. In terms of the highest percentage of lease revenue generated from our properties, distribution centers are number one, followed by health and fitness, drug store, and dollar store locations. Investment grade-rated tenants account for approximately 38% of our total rental revenue.
The leases with our tenants are usually net leases, which means that besides paying us rent every month, the tenant is responsible for the majority of the property's operating expenses (taxes, maintenance and/or insurance). This reduces the risk to us of rising property operating expenses and frees up more of the rent to pay monthly dividends.
We generally increase our earnings in two primary ways:
When we became a public company in 1994, we elected to be taxed as a "real estate investment trust" (or REIT, pronounced "reet") because; 1.) our primary assets are the properties that we own, and 2.) and because the REIT tax status provides us with a tax treatment favorable to the payment of dividends.
As long as we meet certain operating metrics and pay out 90% of our taxable income as dividends to shareholders, we pay no federal income tax. This eliminates the "double taxation" of the dividends our shareholders receive.
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