Net Lease Advisor Tenant SunTrust Bank


  • Investment grade tenant
  • Leases afford rental increases throughout the primary term, many with annual rental increases
  • Generally well located, either as out parcel to grocery anchored shopping center
  • Many locations are occupied as fee simple leases, allowing for depreciation versus the preferred ground lease scenario of most other bank brands


  • Retail banking industry outlook on necessity of physical locations is evolving
  • Mainly an east coast bank

Earnings Highlights

Q4 Summary
  • Net income available to common shareholders was $632 M, or $1.40 per average common diluted share
  • Total revenue was up 3%

Tenant Description

SunTrust Bank is one of the largest banks in the US.

SunTrust, like most banks, is an attractive net lease asset. Banks tend to build their reputation on longevity and trust. These factors lead to a low risk and long term tenant.

SunTrust Bank is a diversified financial services holding company whose businesses provide a range of financial services to consumer and corporate clients. The Company operates in three segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. Through its principal subsidiary, SunTrust Bank, the company offers a full line of financial services for consumers and businesses including deposit, credit, and trust and investment services. Additional subsidiaries provide mortgage banking, asset management, securities brokerage, and capital market services. SunTrust operates primarily within Florida, Georgia, Virginia, Maryland, and North Carolina. SunTrust provides clients with a selection of branch-based and technology-based banking channels, including the Internet, ATMs, and twenty-four hour telebanking.

SunTrust Banks, Inc., is an American bank holding company. The largest subsidiary is SunTrust Bank. SunTrust Bank's most direct corporate parent was established in 1891 in Atlanta, where its headquarters remain. In addition, SunTrust provides clients with a full selection of technology-based banking channels including online, state-of-the-art customer services centers, and through the latest mobile devices.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,360,630
NOI $112,602
$/Square Foot $475 - $600
Building SF 4,000 - 5,000
Lot Size 0.5 - 1.5 Acres
Lease Term 15 - 20 Years
Escalations Varies
Stock Symbol STI
Credit Rating
S&P A-
Moody's Baa1
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Clearwater, FL 4.50%
Atlanta, GA 4.77%
Hendersonville, TN 5.20%