Triple-Net Lease Sector Starting Growth Phase, Spirit Realty CEO Says

Thomas Nolan, chairman and CEO of triple-net lease REIT Spirit Realty Capital (NYSE: SRC), joined REIT.com for a CEO Spotlight video interview at REITWorld 2016: NAREIT’s Annual Convention for All Things REIT at the JW Marriott Phoenix Desert Ridge.

Nolan said Spirit has now achieved its goal of becoming an investment-grade company. Access to the unsecured debt market allows Spirit to run its balance sheet and the entire company more efficiently, he added.

Nolan stressed that recognition by the credit ratings agencies is particularly useful given the company’s active acquisitions pace. Spirit Realty made 100 acquisitions in the third quarter alone.

“We did see a significant supply of really good property in good industries, and they were available at good prices. Those situations aren’t always available,” Nolan said.

Looking ahead, Nolan said he expects to see more companies coming under the triple-net umbrella.

“The triple-net sector is really at the beginning of the growth phase. It’s much more institutionally accepted now, and there are hundreds of billions of dollars of property in the hands of owners who have other uses for their capital,” he observed.

“I think there will be a terrific transference of real estate ownership in a truly win-win type of arrangement,” Nolan added.