Sherwin-Williams TENANT OVERVIEW
Updated: September 8, 2020
Pros
- Investment grade tenant
- Corporate guaranty
- Low price point
Cons
- Short-term leases
- Some NN leases holds landlord responsible for roof and structure
Earnings Highlights
Earnings Summary
- Consolidated net sales decreased 5.6% in the quarter to $4.60 B
- Adjusted EBITDA increased 6.2% in the quarter to $979M or 21.3% of sales
- Net Operating cash increased 42% year-to-date to $1.07 B or 12.3% of sales
Tenant Description
Sherwin-Williams is best known as retailer of paints and primers.
Sherwin-Williams is an attractive net lease asset for many investors who are seeking a lower price point but still want a high credit grade tenant.
The Sherwin-Williams Company, founded by Henry Sherwin and Edward Williams in 1866. Today, the company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America with additional operations in the Caribbean region, Europe and Asia.
The Company manufactures products under well-known brands such as Sherwin-Williams®, Dutch Boy®, Krylon®, Minwax®, Thompson's® Water Seal® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through over 4,696 paint stores.
Average Cap Rate
5.54%
12 mo avg with 10+ yr lease term
Average Property & Lease
| Average Sale Price |
$1,703,250 |
| NOI |
$93,701 |
| $/Square Foot |
$283 - $425 |
| Building SF |
4,000 - 6,000 |
| Lot Size |
0.5 - 1.0 Acres |
| Lease Term |
10 Years |
| Escalations |
8-12% in Options |
| Stock Symbol |
SHW |
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
| Summerville, SC |
5.58% |
| Raleigh, NC |
5.43% |
| Richfield, MN |
5.60% |
| Boise, ID |
5.41% |
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