During 4Q16, $O invested $786MM in 279 properties located in 27
states at an average initial cash cap rate of 6.1% and with a weighted average
lease term of 14.3 years. On a revenue basis, approx. 84% of total acquisitions
are from investment grade tenants. 94% of revenues are generated from retail
and 6% are from industrial.
rent rose 0.9% during 4Q16 and 1.2% in 2016. Approx. 75% of the company’s
investment grade leases have rental rate growth that averages about 1.3%. At
the end of 4Q16, $O’s properties were leased to 248 commercial tenants, 47
different industries located in 49 states and Puerto Rico. 79% of rental
revenue is from retail properties.
$APA expects the overall North American production to continue to decline into 2Q17 before shifting to a strong growth trend. During 2017, the company expects to average 15 rigs in the Permian Basin and drill approx. 250 wells.
For 4Q16, $O’s occupancy based on number of properties was 98.3%.
The company expects occupancy to remain at approx. 98% in 2017. During 2016, $O
re-leased 186 properties to existing and new tenants recapturing 105% of the
expiring rent which is well above the company’s long term average.