BB&T Bank TENANT OVERVIEW
Pros
- Investment grade tenant
- Many locations are occupied as fee simple leases, allowing for depreciation versus the preferred ground lease scenario of most other bank brands
- Generally well located, in both urban and suburban settings
Cons
- Retail banking industry outlook on necessity of physical locations is evolving
Earnings Highlights
- Net income available to common shareholders was $754 M
- Net interest margin was 3.49 percent, up two basis points from the prior quarter
- Non-interest expense was $1.8Billion, up $42 M compared to the third quarter of 2018
Tenant Description
In February 2019, BB&T Corporation (NYSE: BBT) and SunTrust Banks, Inc. (NYSE: STI) announced a merger to become the sixth-largest U.S. bank based on assets and deposits. With 275 years of combined BB&T and SunTrust history, Truist (NYSE: TFC) offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending and wealth management. Headquartered in Charlotte, North Carolina, Truist serves approximately 12 million households with leading market share in many high-growth markets in the country.
BB&T continues to be a strong net lease asset to hold. While most banks tend to sign ground leases, BB&T typically signs NNN leases. While both leases place zero landlord responsibility on the investor, a NNN lease will carry higher rents than the ground leased counterparts.
Based in Winston-Salem, NC, the company operates more than 1,800 financial centers in 15 states and Washington, DC. BB&T offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services.
A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by the US Small Business Administration, Greenwich Associates and others. BB&T also has been named one of the World's Strongest Banks by Bloomberg Markets Magazine, one of the top three in the US and in the top 15 globally.
| Average Sale Price | $3,805,000 |
| NOI | $208,514 |
| $/Square Foot | $950 - $1,275 |
| Building SF | 3,000 - 4,000 |
| Lot Size | 0.5 - 2.0 Acres |
| Lease Term | 15 Years |
| Escalations | 1 - 2% Annually |
| Stock Symbol | N/A |
| Summerville, SC | 6.00% |
| Jacksonville, FL | 5.90% |
| Buford, GA | 5.50% |
