BMO Harris Bank Tenant Overview
Pros
- Investment grade tenant
- NNN lease eliminates landlord responsibilities
- Increases in base term on most leases
- Several lease extensions of five years each
Cons
- Relatively low cap rates
- Most leases are 10-year fee simple
Earnings Highlights
- Q4 2022 Net income of $4,483 million, compared with Q4 2021 $2,159 million; adjusted Q4 2022 net income of $2,136 million, compared with Q4 2021 $2,226 million
- Q4 2022 Reported earnings per share (EPS)2 of $6.51, compared with Q4 2021 $3.23; adjusted Q4 2022 EPS of $3.04, compared with Q4 2021 $3.33
Tenant Description
Established in 1817 as the Bank of Montreal, BMO Financial Group has grown into one of the largest diversified financial services providers in North America.
BMO Harris, along with most other banks, has built a reputation based on trust, stability, and longevity. These are attractive qualities when looking a net leased asset. The stability and longevity that banks provide ensure that BMO Harris Bank will be a tenant at any property for a long time to come.
On July 5, 2011, BMO announced that it had completed the acquisition of Milwaukee-based Marshall & Ilsley Corporation (M&I). M&I merged with Harris Bank to form BMO Harris Bank N.A., part of BMO Financial Group (TSX, NYSE: BMO.) This integration was completed on October 8, 2012, and all branches now operate under the name BMO Harris Bank. This acquisition has helped BMO Harris grow their holdings to $688 million in assets.
BMO Harris Bank has grown to become one of the largest banks in the Midwest serving personal, commercial and affluent customers. BMO Harris Bank provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. These include solutions for everyday banking, financing, investing, as well as a full suite of integrated commercial and financial advisory services.
BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the US. They partner closely with BMO Private Bank who serve a full range of client segments, from mainstream to ultra-high net worth, with a broad offering of wealth management products and solutions offered through offices across the United States.
| Average Sale Price | $2,100,000 |
| NOI | $120,748 |
| $/Square Foot | $350 |
| Building SF | 6,000 |
| Lot Size | 1.25-1.75 |
| Lease Term | 10 Years |
| Escalations | 1.5% Annually |
| Stock Symbol | BMO |
| Martinsville, IN | 5.82% |
| Scottsdale, AZ | 4.62% |
| Palatine, IL | 4.71% |
| Elm Grove, WI | 5.68% |
