Truist Bank Tenant Overview


Truist Bank, Bank, Net Lease

Pros

  • Investment grade tenant
  • Many locations are occupied as fee simple leases, allowing for depreciation versus the preferred ground lease scenario of most other bank brands
  • Generally well located, in both urban and suburban settings

Cons

  • Retail banking industry outlook on necessity of physical locations is evolving

Tenant Description

In February 2019, BB&T Corporation (NYSE: BBT) and SunTrust Banks, Inc. (NYSE: STI) announced a merger to become the sixth-largest U.S. bank based on assets and deposits. With 275 years of combined BB&T and SunTrust history, Truist (NYSE: TFC) offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending and wealth management. Headquartered in Charlotte, North Carolina, Truist serves approximately 12 million households with leading market share in many high-growth markets in the country.

BB&T continues to be a strong net lease asset to hold. While most banks tend to sign ground leases, BB&T typically signs NNN leases. While both leases place zero landlord responsibility on the investor, a NNN lease will carry higher rents than the ground leased counterparts.

Based in Charlotte, NC, Truist operates more than 2,000 financial branches in 15 states and Washington, DC. BB&T offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services.

A Fortune 500 company, Truist is consistently recognized for outstanding client satisfaction by the US Small Business Administration, and executed nearly 23 Billion in revenue.

Average Cap Rate
5.92%
Trailing 12-month average
Average Property & Lease
Average Sale Price $2,359,483
NOI $136,271
$/Square Foot $590 - $786
Building SF 3,000 - 4,000
Lot Size 0.5 - 2.0 acres
Lease Term 15 Years
Escalations 1 - 2% annually
Stock Symbol TFC
Credit Rating
S&P A
Moody's A2
Average Cap Rate Trend
6.20%
2022
5.92%
2023
Rates reflect year-over-year comparison
Recent Sales Comps
Baxley, GA 6.40%
Vero Beach, FL 5.50%
Virginia Beach, VA 9.14%