Sherwin-Williams Tenant Overview
Updated: November 14, 2023
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
- Q2 Net income totaled $648.6 million, or $2.42 per share, up from $595.5 million, or $2.16 per share, last year
- Adjusted Q2 EPS of $2.65 missed the FactSet consensus of $2.67
- Q2 Sales of $5.380 billion were up from $4.604 billion and also missed the FactSet consensus for $5.388 billion
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
5.41%
Trailing 12-month average
Average Property & Lease
| Average Sale Price |
$1,833,738 |
| NOI |
$93,463 |
| $/Square Foot |
$306 -$458 |
| 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 year-over-year comparison
Recent Sales Comps
| Kingsport, TN |
5.45% |
| Spring Hill, FL |
6.07% |
| Fort Wayne, IN |
6.50% |
Featured Tenant Profiles
Sector: Pharmacy
Avg. Cap Rate: 6.18%
Sector: Automotive
Avg. Cap Rate: 5.29%
Sector: Casual Dining
Avg. Cap Rate: 6.58%
