Investment Highlights
Executive Summary
? Starbucks recently signed a new 10-year lease with 6 (5-year) options to extend, demonstrating their long-term commitment to the site? 2023 construction which features high-quality materials, high-level finishes, and distinct Starbucks design elements? The lease is corporate signed by Starbucks, an investment grade (S&P: BBB+), nationally recognized, and established firm with over 38,000 stores? The lease features 5% rental increases at the beginning of each option, generating NOI and providing an adequate hedge against inflation? Tenant pays for taxes, insurance and maintains most aspects of the premises? Limited landlord responsibilities to roof, structure, foundation, and electrical systems? Ideal, low-management investment for a passive investor? Starbucks is ideally located at the signalized intersection of US Highway 321 and 2nd Avenue NW averaging a combined 52,300 VPD? The immediate trade area is supported by surrounding retailers such as McDonald?s, Dunkin?, Walmart Neighborhood Center, Wendy?s, and more? The site is equipped with a double drive-thru lane, allowing for Starbucks to maximize efficiency and productivity at this location? For Q4 2023, net revenues were up 11% to a record $9.4B, while comparable store sales were up 8% globally, 8% in North America, and 5% internationally? The company opened 816 net new stores in Q4 2023, ending the period with 38,038 stores: 52% company-operated and 48% licensed? Starbucks? CEO said, ?We finished our fourth quarter and full fiscal year strong, delivering on the higher end of our full-year guidance.?? Fiscal year 2023:? Global comparable store sales increased 8%, driven by a 5% increase in average ticket and 3% increase in comparable transactions? North America and U.S. comparable store sales increased 9%, driven by a6% increase in average ticket and 3% increase in comparable transactions? International comparable store sales increased 5%, driven by a 5% increase in comparable transactions? More than 67,000 residents and 56,000 employees support trade area? $82,530 average household income
