EGM’s net lease funds are designed to provide high yield, inflation protected total returns and deliver the stable, predictable income, and security benefits of a fixed income strategy and the capital appreciation and total return benefits of an equity investment.
The net lease funds sponsored by EGM invest in business essential office, industrial, and retail properties leased to single corporate tenants on a long term basis where the tenant pays for all the operating costs of the property. The assets comprising the net lease funds are 100% leased to a single tenant at the time of acquisition. The corporate tenant typically carries an investment grade credit rating and guarantees the rent payment under the lease. The properties are critical to the operations of the underlying tenant and typically serve as the corporation’s regional distribution facility or warehouse, corporate headquarters, or significant retail outlet facility.
The net lease funds are typically structured as limited liability companies or real estate investment trusts (REITS). As a result of the net lease structure, the long term lease commitment and invest grade credit rating of the tenants, the cash flow from the investments in the net lease fund is predictable and secured by the guarantee of the tenant.
Additional information regarding Net Lease Funds and EGM: