portfolio // cvs/pharmacy
TRANSCRIPT
PORTFOLIO // CVS/PHARMACY*
*ALSO AVAILABLE INDIVIDUALLY
New Carlilse, OH
Alvarado, TX
LaGrange, GA
Introduction - DisclaimerThis Investment Offering Memorandum has been prepared
by Thomas Company and does not purport to provide a
necessarily accurate summary of the Property or any of
the documents related thereto, nor do they purport to
be all inclusive or to contain all of the information which
prospective investors may need or desire. All projections
have been developed by Seller, Thomas Company and
designated sources, and are based upon assumptions
relating to the general economy, competition and other
factors beyond the control of Seller, and therefore are
subject to variation. No representation is made by Seller or
Thomas Company as to the accuracy or completeness of the
information contained herein, and nothing contain herein,
is, or shall be relied on as a promise or representation
as to the future performance of the Property. Although
the information contained herein is believed to be correct,
Seller and its officers, directors and employees disclaim
any responsibility for inaccuracies and expect prospective
purchasers to exercise independent due diligence in
verifying all such information. Further, Thomas Company,
Seller and its officers, directors and employees disclaim
any and all liability for representations and warranties,
expressed and implied, contained in, or omission from the
Investment Offering Memorandum or any other written or
oral communication transmitted or made available to the
recipient. The Investment Offering Memorandum does
not constitute a representation that there has been a
change in the business or affairs of the Property or Seller
since the date of preparation of the Investment Offering
Memorandum. Analysis and verification of the information
contained in the Investment Offering Memorandum is
solely the responsibility of the prospective purchaser.
Seller and Thomas Company each expressly reserve
the right, at their sole discretion, to reject any and all
expressions of interest or offers regarding the Property
and/or terminate discussions with any entity at any
time with or without notice. Seller shall have no legal
commitment or obligation to sell the property to any
entity reviewing the Investment Offering Memorandum
or making an offer to purchase the Property unless and
until such offer is approved by Seller, a written agreement
for the purchase of the Property has been fully executed,
delivered and approved by Seller and its legal counsel and
any conditions to Seller’s obligations thereunder have been
satisfied or waived. This Investment Offering Memorandum
and the contents are of a confidential nature. By accepting
the Investment Offering Memorandum, you agree that you
will hold and treat it in the strictest confidence, that you
will not photocopy or duplicate it, that you will not disclose
the Investment Offering Memorandum or any of the
contents to any other entity (except to outside advisors
retained by you if necessary, for your determination of
whether or not to make a proposal and from whom you
have obtained an agreement of confidentiality) without
the prior written authorization of Seller, and that you will
not use the Investment Offering Memorandum or any of
the contents in any fashion or manner detrimental to the
interest of Seller or Thomas Company. If you do not have
an interest in the Property at this time, please return the
Investment Offering Memorandum forthwith.
© 2016 Thomas Company
Exclusively Marketed By
PLEASE CONTACT
JEFFREY S. THOMAS
THOMAS COMPANY
1420 Fifth Avenue
Suite 2200
Seattle, WA 98101
800.775.3350
THOMASCOMPANY.COM
Offered in coordination & conjunction with:
David Boerner - AR501.224.2160
David Perduk - CA800.878.2163
Jonathan Broadway - GA256.520.5000
Tim Flanagan - IL630.954.7310
Richard Kirschman - LA504.486.8964
CJ Blankenbeckler - MD804.232.5100
Levi Smith- MI248.262.1807
Ray Yung - MN952.240.5469
Steven Veal - MO314.477.9090
Jim Johnson - NC336.882.8780
Sean McMullan- NM505.821.1662
Homer Guren - OH216.514.1800
Patrick Coates - OK918.610.0700
Bailey Wiener, Jr - TN901.260.3259
Scott Haire - TX214.725.1110
Mark Gleischman - WI414.223.7801
Gillian Greenfield - WV540.974.3927
EXECUTIVE SUMMARY
The Offering ................................................................................................................4Investment Highlights ...................................................................................................4The Properties .............................................................................................................. 5The Lease .....................................................................................................................5
PORTFOLIO OVERVIEW
Property List ................................................................................................................. 6Map of Properties ........................................................................................................7Demographics ..............................................................................................................8
TENANT OVERVIEW
CVS Health ................................................................................................................ 10
Table of Contents Bristol, TN
Executive Summary
INVESTMENT HIGHLIGHTS Secure Cash Flow
CVS Health Corporation (S&P: BBB+, NYSE: CVS) together with its subsidiaries is one of the
largest pharmacy health providers in the United States operating more than 9,500 retail
drugstores in the United States, Puerto Rico and Brazil. CVS has the strongest credit profile
amongst the three largest drug stores (S&P Ratings for Walgreens and Rite Aid are BBB
and B respectively).
Long-Term Leases
Each store has a 25-year lease in place that recently commenced, providing the Landlord
with consistent management-free cash flow during that time. There is no rent holiday in any
of the leases.
THE OFFERING Thomas Company is pleased to offer for sale a portfolio of unlevered CVS stores located in Arkansas, California, Georgia, Illinois, Louisiana, Maryland, Michigan, Minnesota, Missouri, New Mexico,
North Carolina, Ohio, Oklahoma, Tennesee, Texas, Wisconsin and West Virginia. The properties are offered free and clear of debt. Each of the stores has a newly executed, 25-year triple-net lease
in place with no landlord responsibilities and no rent holidays. These assets may be sold individually or as a portfolio.
Recently Constructed
Each of the stores was recently constructed, ranging from June 2011 to August 2015. New
25-year leases were just executed for each location, providing an investor the opportunity to
take possession with a full 25-year lease term in place.
Passive Ownership
The Tenant has executed triple-net (NNN) leases with no Landlord responsibilities. The Tenant
is responsible for all maintenance and repair, including the roof and structure.
Bowie, MD
4
THE LEASES
THE PORTFOLIO
Executive Summary
Actual Location
Price
NOI
$176,078,272
Ownership
Property Type
Year Built
Retail
Fee Simple
Tenant
Guarantor
Lease Term Remaining
CVS Health Corporation
Various CVS Corporate Subsidiaries
Lease Commencement
Lease Expiration
Lease Structure Triple-Net (NNN)
Landlord Responsibilities
Rent Holiday
Options to Extend
None. There is no rent holiday.
Option Rent
10 5-Year Options to Extend.
The Tenant is responsible for all repair and
maintenance of the property, including the
roof and structure.
The rent for the first two five-year option periods remains
fixed at 100% of the primary term rent. The rent for each of
the remaining eight five-year option periods is equal to 100%
of Fair Market Rent as determined by an appraiser.
+/- 25 Years
10/16/15
1/31/41
$8,744,178
2011 - 2015
Kingsport, TN
(Assets are available individually or as a portfolio)
S&P: BBB+
5
Portfolio Overview
StoreNumber Address City State
In Service Date Lease Term Size Annual Rent Price Cap Rate Status
10519 2001 S. Thompson Street Springdale AR 4/25/15 25 Years 13,225 $233,402 $4,668,040 5.00% Available10199 26059 Mission Blvd Hayward CA 1/25/15 25 Years 14,500 $416,507 $9,255,711 4.50% Available10360 474 Winton Pkwy Livingston CA 4/26/15 25 Years 16,500 $255,684 $5,382,821 4.75% Available4540 1802 Roanoke Rd LaGrange GA 12/7/14 25 Years 14,600 $254,730 $5,094,600 5.00% Available6829 401 North Webster St. Taylorville IL 3/17/13 25 Years 13,225 $236,159 $4,723,180 5.00% Available4501 1204 Elton Road Jennings LA 8/9/15 25 Years 13,225 $237,506 $4,750,120 5.00% Available1454 1910 Crain Hwy Bowie MD 5/10/15 25 Years 13,225 $471,359 $9,427,180 5.00% Available10626 101 North Euclid Ave. Bay City MI 7/11/15 25 Years 11,945 $225,778 $4,515,560 5.00% Available6691 1215 E. Superior St. Duluth MN 10/19/14 25 Years 13,600 $455,712 $9,114,240 5.00% Available10152 1501 E. Ohio Street Clinton MO 4/13/13 25 Years 13,225 $234,789 $4,695,780 5.00% Available10471 101 E. Karsch Blvd Farmington MO 7/26/15 25 Years 13,225 $316,877 $6,337,540 5.00% Available10193 1550 Wentzville Parkway Wentzville MO 9/15/13 25 Years 13,225 $248,285 $4,965,700 5.00% Available7344 103 Catawba Road Havelock NC 11/9/14 25 Years 11,945 $233,431 $4,668,620 5.00% Available10149 940 N. Main Street Las Cruces NM 1/11/15 25 Years 14,500 $377,116 $7,542,320 5.00% Available3457 201 South Main St New Carlisle OH 9/21/14 25 Years 13,225 $189,572 $3,791,440 5.00% Available6271 68501 Addie Way St. Clairsville OH 10/12/14 25 Years 13,225 $223,050 $4,461,000 5.00% Available10520 2107 NW Cache Road Lawton OK 11/15/14 25 Years 13,225 $350,638 $7,012,760 5.00% Available10012 11223 E. 31st Street South Tulsa OK 6/22/14 25 Years 13,225 $274,503 $5,490,060 5.00% Available10561 6116 S. Lewis Ave Tulsa OK 1/25/15 25 Years 12,900 $326,893 $6,537,860 5.00% Available7714 308 E. Cedar St. Bristol TN 7/19/15 25 Years 11,945 $236,986 $4,739,720 5.00% Available4240 4400 W. Stone Street Kingsport TN 8/16/15 25 Years 11,945 $229,651 $4,593,020 5.00% Available10335 6941 E. Hwy 67 Alvarado TX 4/12/15 25 Years 11,945 $238,165 $4,763,300 5.00% Available5935 1454 Central Blvd Brownsville TX 6/5/11 25 Years 13,190 $241,841 $4,836,820 5.00% Available10356 409 Veterans Boulevard Del Rio TX 6/21/15 25 Years 13,225 $241,199 $4,823,980 5.00% Available10405 103 W. Monte Cristo Road Edinburg TX 6/27/15 25 Years 13,225 $259,816 $5,196,320 5.00% Available10585 3300 W. Stan Schlueter Loop Killeen TX 5/10/15 25 Years 13,225 $225,495 $4,509,900 5.00% Available10598 204 Newman Road La Marque TX 8/2/15 25 Years 14,600 $202,918 $4,058,360 5.00% Available4715 5315 Briarwood Ave Midland TX 12/7/14 25 Years 13,225 $229,165 $4,583,300 5.00% Available10549 1410 Erie Ave Sheboygan WI 9/6/15 25 Years 13,225 $288,583 $5,771,660 5.00% Available2148 885 Oakwood Road Charleston WV 1/4/15 25 Years 13,225 $269,989 $5,399,780 5.00% Available3475 300 Fairmont Ave Fairmont WV 1/4/15 25 Years 13,225 $312,166 $6,243,320 5.00% Available10566 278 East Main Street Milton WV 1/3/15 25 Years 11,945 $206,213 $4,124,260 5.00% Available
Total 424,110 $8,744,178 $176,078,272
PROPERTY LIST (Assets are available individually or as a portfolio)
6
Portfolio OverviewPROPERTY LOCATIONS
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8
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14
20
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1. 26059 Mission Blvd, Hayward, CA2. 474 Winton Parkway, Livingston, CA3. 940 N. Main Street, Las Cruces, NM4. 5315 Briarwood Ave, Midland, TX5. 409 Veterans Blvd, Del Rio, TX6. 103 W. Monte Cristo Rd, Edinburg, TX7. 1454 Central Blvd, Brownsville, TX8. 3300 W. Stan Schlueter Loop, Killeen, TX9. 6941 E Hwy 67, Alvarado, TX10. 204 Newman Rd, La Marque, TX11. 2107 NW Cache Rd, Lawton, OK
21 22
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25
2829
30
32
23. 201 South Main St, New Carlisle, OH24. 68501 Addie Way, St. Clairsville, OH25. 1802 Roanoke Rd, LaGrange, GA26. 4400 W Stone St, Kingsport, TN27. 308 E. Cedar St, Bristol, TN28. 278 Main St, Milton, WV29. 885 Oakwood Rd, Charleston, WV30. 300 Fairmont Ave, Fairmont, WV31. 1910 Crain Hwy, Bowie, MD32. 103 Catawba Rd, Havelock, NC
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26/27
12. 11223 E. 31st St, Tulsa, OK13. 6116 S. Lewis Ave, Tulsa, OK14. 1204 Elton Rd, Jennings LA15. 2001 S. Thompson St, Springdale, AR 16. 1501 E. Ohio St, Clinton, MO17. 101 E. Karsch Blvd, Farmington, MO18. 1550 Wentzville Pkwy, Wentzville, MO19. 1215 E. Superior St, Duluth, MN20. 401 North Webster St, Taylorville, IL21. 1410 Erie Ave, Sheboygan, WI22. 101 North Euclid Ave, Bay City, MI
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7
Portfolio OverviewPORTFOLIO DEMOGRAPHICS
Location Notes
1 Mi 3 Mi 5 Mi 7 Mi 10 Mi 1 Mi 3 Mi 5 Mi 7 Mi 10 Mi 1 Mi 3 Mi 5 Mi 7 Mi 10 Mi 1 Mi 3 Mi 5 Mi 7 Mi 10 Mi 1 Mi 3 Mi 5 Mi 7 Mi 10 Mi
Springdale, AR 9,655 67,590 100,146 150,280 222,712 $44,655 $53,644 $62,361 $63,050 $66,024 15% 18% 19% 19% 19% 25% 47% 49% 45% 53% 6% 7% 8% 9% 10%
• Immediately adjacent to Executive Inn & Suites• Nearby retailers: Aldi, Dollar Tree, Wendy's, Papa John's, Burger King and Sonic• 1 mi to Northwest Medical Center
Hayward, CA 26,668 179,965 346,867 485,078 808,581 $66,372 $79,083 $86,875 $93,258 $97,847 17% 23% 25% 25% 25% 3% 5% 6% 7% 7% 5% 5% 5% 5% 5%
• Hard signalized intersection•1.5 mi to California State University East Bay (enrollment: 14,900)• 2.5 mi to Interstate 880
Livingston, CA 5,824 16,007 30,668 52,759 121,199 $68,016 $60,132 $61,189 $59,885 $62,184 18% 18% 17% 19% 21% 45% 21% 29% 21% 18% 2% 2% 3% 3% 2%
• Hard signalized intersection• Nearby retailers: Starbucks, McDonald's, Chevron, Popeye's, Carl's Jr, Auto Zone, Subway, Taco Bell
LaGrange, GA 2,502 20,037 39,353 49,136 57,234 $46,841 $52,749 $55,134 $56,677 $57,626 36% 28% 27% 26% 27% 16% 7% 14% 17% 18% 5% 2% 4% 4% 3%
• Hard signalized intersection• Nearby retailers: Circle K, Burger King, Piggly Wiggly, Domino's Pizza, McDonald's, Subway• Less than 1 mi to Vernon Woods Retirement Community
Taylorville, IL 8,922 11,825 15,509 17,484 22,380 $52,374 $55,257 $59,192 $59,082 $59,819 32% 33% 33% 33% 32% -‐7% -‐5% -‐2% -‐2% -‐2% -‐3% -‐2% -‐2% -‐2% -‐1%
• Hard signalized intersection• Half a mile to Taylorville Memorial Hospital• Nearby retailers: McDonald's, Circle K, Domino's Pizza, KFC, Family Dollar, Taco Bell
Jennings, LA 5,125 10,973 13,454 16,852 25,410 $52,027 $50,007 $53,643 $57,516 $58,077 31% 31% 30% 29% 28% -‐4% -‐7% -‐4% -‐1% 1% 0% 0% 0% 1% 2%• Hard signalized intersection• .7 mi to Jennings American Legion Hospital• 1 mi to Interstate 10
Bowie, MD 5,955 33,589 80,338 176,405 391,595 $121,808 $129,213 $137,701 $129,629 $112,336 27% 25% 28% 28% 27% 3% 18% 28% 22% 16% 1% 4% 5% 4% 4%
• 20 minutes to Washington DC• Nearby retailers: Walmart, Home Depot, Chick-‐fil-‐A, Lowe's• 6 schools in less than 2 mile radius
Bay City, MI 9,713 51,199 71,868 82,273 103,388 $50,021 $50,785 $54,296 $55,203 $56,146 31% 31% 33% 32% 32% -‐3% -‐3% -‐4% -‐2% -‐1% -‐1% -‐1% -‐1% -‐1% -‐1%
• Hard signalized intersection• Half a mile to Bay Special Care Hospital • Nearby retailers: Mcdonald's, Taco Bell, Wendy's, Little Caesars Pizza, Kroger
Duluth, MN 14,992 44,183 74,112 109,452 130,038 $40,496 $54,735 $58,871 $58,171 $58,954 19% 25% 27% 28% 28% 1% 2% 1% 1% 1% 2% 1% 1% 1% 1%
• 2 mi to University of Minnesota Duluth (enrollment: 10,000)• 2 mi to College of St Scholastica (enrollment: 4000)• 1 mi to Edgewater Hotel & Waterpark
Clinton, MO 2,606 9,633 10,770 11,426 14,242 $63,315 $51,689 $52,848 $53,258 $53,799 41% 35% 36% 36% 37% 7% -‐1% 1% 2% 3% 2% 1% 1% 1% 1%
• Hard signalized intersection• Nearby retailers: McDonald's, Wendy's, Subway, Taco Bell, Golden Corral, Ace Hardware• Adjacent to Westbridge Inn and Suites
Farmington, MO 7,773 19,933 24,157 33,471 47,527 $44,359 $49,011 $51,206 $48,998 $48,984 33% 28% 29% 28% 29% 13% 20% 23% 22% 17% 4% 4% 4% 3% 3%• Nearby retailers: Lowe's, McDonald's, Pizza Hut, Enterprise, Auto Zone, Burger King• Less than 1 mile to Midwest Health Group
Wentzville, MO 5,909 27,718 47,150 70,978 151,320 $89,814 $85,851 $90,655 $91,376 $87,760 17% 20% 21% 22% 23% 381% 178% 161% 127% 87% 9% 8% 9% 8% 7%
• Hard signalized intersection• Half a mile to SSM Health St Joseph Hospital• Nearby retailers: Target, Lowe's, Walmart, Home Depot, Sam's Club
Havelock, NC 4,230 14,650 25,224 28,757 44,590 $55,410 $55,805 $56,590 $58,536 $60,272 12% 12% 14% 16% 21% 8% -‐11% -‐3% 2% 13% 0% 0% 0% 1% 2%
• Less than 3 miles to Marine Corps Air Station (work force: 13,765)• Nearby businesses: Walmart, McDonald's, Dollar General, Dollar Tree, Quality Inn
Las Cruces, NM 12,260 75,651 115,206 130,533 142,631 $35,812 $46,453 $52,601 $53,890 $54,529 29% 25% 27% 27% 27% 2% 16% 24% 26% 28% 0% 1% 2% 2% 2%
• Hard signalized intersection• Immediately next to Las Cruces Fire Department• Adjacent to Las Cruces City Hall and District Court
New Carlisle, OH 4,732 10,205 22,446 46,936 142,843 $54,392 $61,067 $62,024 $67,138 $65,594 30% 32% 33% 33% 32% -‐2% -‐2% 0% 1% -‐1% 0% 0% 1% 1% 0%• Hard signalized intersection• Located in the historic downtown • 1 block from Belle Manor Nursing Home
2015 Total Population (Estimate) 2015 Average Household Income (Estimate) Percentage of Population 55+ (Estimate) Population Growth 2000-‐2015 (Esitmate) Population Growth 2015-‐2020 (Estimate)
8
Portfolio OverviewPORTFOLIO DEMOGRAPHICS (CONT'D)
Location Notes
1 Mi 3 Mi 5 Mi 7 Mi 10 Mi 1 Mi 3 Mi 5 Mi 7 Mi 10 Mi 1 Mi 3 Mi 5 Mi 7 Mi 10 Mi 1 Mi 3 Mi 5 Mi 7 Mi 10 Mi 1 Mi 3 Mi 5 Mi 7 Mi 10 Mi
St. Clairsville, OH 5,112 9,818 17,897 27,276 61,928 $65,941 $65,850 $63,188 $59,568 $49,455 43% 43% 35% 36% 36% 3% 7% 11% 8% -‐3% -‐1% 0% 1% 1% 0%
• Adjacent to Ohio Valley Mall • Nearby businesses: Toys"R"Us, McDonald's, KFC, Cracker Barrel, Bob Evans, Chipotle, Fairfield Inn & Suites, Doctors Urgent Care
Lawton, OK 13,929 59,162 88,968 97,177 105,516 $44,849 $44,436 $52,059 $53,893 $54,945 24% 20% 20% 20% 21% 0% 10% 8% 7% 7% -‐2% -‐1% 0% 0% 0%• Nearby retailers: Walmart Supercenter, Whataburger, Chick-‐fil-‐A, Bank of America • Across the street from Hampton Inn
Tulsa, OK 18,880 83,159 189,228 347,211 517,969 $48,462 $49,696 $57,600 $66,442 $68,818 17% 21% 25% 25% 26% 8% 9% 11% 10% 11% 2% 4% 6% 5% 5%
• Hard signalized intersection• Less than half a mile to Access Medical • Nearby retailers: Walmart, Little Caesars Pizza, Papa John's Pizza, Bank of America
Tulsa, OK 12,459 81,691 199,765 340,962 544,956 $53,678 $69,294 $73,258 $71,900 $69,043 31% 31% 31% 28% 26% -‐4% -‐1% 2% 7% 10% 4% 5% 5% 5% 5%
• Hard signalized intersection• Nearby retailers: Chase Bank, Ace Hardware, Dollar General• Half a mile to Villages at Southern Hills Retirement Community
Bristol, TN 7,763 35,461 54,013 66,736 85,856 $40,456 $47,188 $49,650 $51,041 $51,504 32% 33% 35% 35% 35% -‐3% 2% 2% 3% 3% -‐1% 0% 0% 0% 0%
• Area recently zoned commercial• Recent improvements to adjacent intersection• Relocation store, tenant is committed to area
Kingsport, TN 3,278 18,360 46,157 75,158 113,558 $57,843 $58,094 $48,801 $49,038 $54,178 33% 34% 34% 36% 36% -‐7% 3% 3% 3% 3% -‐1% 0% 0% 0% 1%
• Hard signalized intersection• Nearby retailers: Pizza Hut, Wendy's, Taco Bell, McDonald's, Burger King• Near 250 acre business and technology park under development
Alvarado, TX 1,813 7,566 16,874 36,820 87,110 $59,107 $61,335 $65,260 $68,086 $73,996 24% 27% 27% 28% 27% 26% 12% 15% 12% 21% 6% 6% 5% 5% 6%
• Across the street from Holiday Inn Express, Comfort Inn, Days Inn and La Quinta Inn • Nearby retailers: McDonald's, Taco Bell, Domino's Pizza, Whataburger, Dairy Queen
Brownsville, TX 13,638 86,442 162,966 204,679 221,514 $43,594 $43,151 $43,981 $44,122 $44,593 27% 23% 21% 20% 20% -‐5% 14% 24% 30% 33% 2% 4% 5% 6% 6%• .5 mi to Valley Baptist Medical Center• Nearby retailers: McDonald's, Burger King, Dairy Queen, Little Caesars Pizza, Dollar Tree
Del Rio, TX 10,948 34,535 43,803 46,772 48,258 $40,573 $50,114 $51,447 $51,653 $52,030 28% 26% 24% 23% 23% -‐7% 1% 10% 8% 10% -‐2% -‐1% 0% 0% 0%
• Nearby retailers: Advance Auto Parts, Family Dollar, Sonic, Little Caesars Pizza• Less than a mile to Val Verde Regional Medical Center
Edinburg, TX 5,124 43,963 102,170 167,834 333,484 $46,776 $43,201 $53,440 $59,044 $55,769 12% 14% 16% 15% 17% 128% 56% 62% 67% 51% 7% 8% 9% 9% 9%
• Across street from Edinburg North High School (enrollment: 2,600)• 4 mi from The University of Texas Rio Grande Valley (enrollment: 29,000)
Killeen, TX 15,113 65,845 128,843 185,397 245,128 $60,027 $58,088 $54,238 $57,567 $61,286 6% 9% 10% 12% 14% 454% 107% 41% 40% 37% 9% 10% 8% 8% 7%
• 6.5 mi to Fort Hood Military Base (pop: 34,000)• Nearby retailers: Walmart Supercenter, Church's Chicken, Dollar General, Shell
La Marque, TX 7,417 32,846 56,754 99,050 169,520 $55,752 $57,543 $59,351 $63,699 $72,774 34% 30% 29% 29% 26% 19% 20% 16% 13% 37% 9% 7% 7% 7% 10%
• Nearby retailers: Dollar General, Sonic, Chevron, Domino's Pizza, Texaco• 1.5 mi to College of the Mainland (enrollment: 5,000)
Midland, TX 8,394 52,885 98,567 130,333 141,618 $97,529 $97,082 $93,058 $83,365 $82,740 19% 26% 25% 24% 24% 72% 30% 27% 29% 31% 11% 9% 9% 10% 11%
• Hard signalized intersection• Nearby businesses: Baskin Robbins, Chevron, Bush Tennis Center• Adjacent to Meridian Apartment Homes
Sheboygan, WI 15,631 48,702 63,461 72,804 80,039 $44,984 $54,002 $59,232 $61,019 $62,371 23% 28% 29% 29% 30% -‐9% -‐4% -‐1% 1% 2% -‐1% -‐1% -‐1% 0% 0%• Hard signalized intersection• Less than a mile to Vollrath (employees: 1,200)
Charleston, WV 8,075 44,439 77,028 94,127 141,651 $102,587 $72,653 $69,462 $68,017 $65,531 33% 33% 34% 35% 35% -‐2% -‐6% -‐5% -‐5% -‐4% -‐2% 0% -‐1% -‐1% 0%• .2 miles to Living Well Medical Center• Nearby businesses: 7-‐Eleven, Exxon, Wes Banco Mortgage, Midtown Dental Lab
Fairmont, WV 9,569 27,988 39,747 48,607 63,244 $41,682 $51,872 $54,758 $56,738 $58,699 26% 32% 33% 33% 33% -‐4% -‐1% 2% 3% 3% 0% 2% 2% 2% 3%
• Hard signalized intersection• 1 mi to Fairmont State University (enrollment: 4,500)• 1 mi to Fairmont General Hospital
Milton, WV 2,145 6,988 16,222 30,018 58,411 $48,936 $56,594 $63,840 $66,701 $71,327 36% 36% 33% 32% 32% 3% 10% 11% 16% 14% 1% 4% 6% 6% 4%• Located in downtown Milton • Nearby businesses: Piggly Wiggly, Save-‐A-‐Lot, Wendy's, McDonald's, Goodwill, Pizza Hut
2015 Total Population (Estimate) 2015 Average Household Income (Estimate) Percentage of Population 55+ (Estimate) Population Growth 2000-‐2015 (Esitmate) Population Growth 2015-‐2020 (Estimate)
9
Tenant Overview
CVS HEALTH CORPORATION (NYSE: CVS; S&P: BBB+)
BUSINESS OVERVIEW
CVS Health Corporation (formerly CVS Caremark Corp.) together with its
subsidiaries is one of the largest pharmacy health care providers in the United
States; with integrated offerings across the entire spectrum of pharmacy care. CVS
is unique among the big three retail drugstore chains (Walgreen's, Rite Aid, CVS),
in that it operates its own pharmacy benefit management ("PBM"), and is thus,
an integrated pharmacy health care provider. CVS's offerings include pharmacy
benefit management services; mail order, retail and specialty pharmacy; disease
management programs; and retail clinics. CVS operates drugstores throughout
the U.S., the District of Columbia, Puerto Rico and Brazil.
The company has launched assertive growth plans in recent quarters. In June
2015, it announced the $1.9 billion purchase of Target’s pharmacy business, a
deal which brings the total store count to 9,500 and adds sites in west coast metro
areas CVS hadn’t previously serviced—including Portland, Seattle, Denver, and Salt
Lake City. In May 2015 the company bid $12 billion for pharmacy services firm
Omnicare, which helps manage specialty pharmaceutical distribution to long-term
care facilities, among other medical environments. Wall Street analysts expect FTC
clearance of the deal.
As of December 2015 CVS operated 9,500 retail locations in the U.S. and Brazil.
Its stores sell prescription drugs, as well as other products such as nonprescription
medications, health and beauty aids, and cosmetics. The company also operates
the nation’s largest medical care clinic, with 1000 MinuteClinic® health care
clinics throughout the country. MinuteClinics are staffed by nurse practitioners
and physician assistants, who utilize nationally recognized protocols to diagnose
and treat minor health conditions, perform health screenings, monitor chronic
conditions, and deliver vaccinations. CVS expects to grow MinuteClinic® to 1,500
locations in more than 35 states by 2017.
STRATEGY
Formerly known as CVS Caremark, the company rebranded as CVS Health in
2014—and in so doing announced it was eliminating the sale of tobacco products
that year across its network of stores, in keeping with the “health” side of its
corporate mission. CVS has four divisions—pharmacy, Caremark (pharmacy
benefits management and mail service pharmacy), Minuteclinic walk-in clinics, and
specialty pharmacy management. The company acquired Caremark in 2007, and
now serves 65 million plan members and 2,000 clients via that division.
STORE PROFILE
As of December 2015, CVS operated 9,500 retail stores in 47 states, the District of
Columbia, Puerto Rico, and Brazil under the CVS pharmacy name. CVS/pharmacy
stores sell prescription drugs and a wide assortment of general merchandise—
front-end products. Typical retail stores range in size from approximately 5,000
to 25,000 square feet, although most new stores range in size from approximately
8,000 to 13,000 square feet and typically include a drive-thru pharmacy. In 2014,
CVS filled or managed 1.7 billion prescriptions, representing the capture of one
third of all U.S. prescription growth since 2008.
FINANCIAL SUMMARY
Total revenue for 2014 increased 9.9% to a record $139.4 billion, up from $126.9
billion in the year prior, while operating profit in 2014 rose 9.5% to $8.8 billion.
Adjusted earnings per share from continuing operations rose by more than 5% to
$4.22 from $4.00. CVS generated USD $6.5 billion in free cash flow in 2014, and
the company’s dividends per share rose in 2014 to $1.10 from $0.90.
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THOMAS COMPANY
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Seattle, WA 98101
800.775.3350
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