Wells Fargo Tenant Overview



Pros

  • Investment grade tenant
  • NNN leases eliminate landlord responsibilities
  • Essential Retail

Cons

  • Retail banking industry outlook on the number of physical locations required is evolving
  • Low cap rates

Earnings Highlights

Earnings Summary
  • Criticized loans in the commercial portfolio were $29.0 billion at June 30, 2023, compared with $25.0 billion at December 31, 2022, primarily driven by an increase in criticized commercial real estate loans in the office property type
  • Total revenue increased due to higher net interest income and higher noninterest income in 2023
  • The allowance for credit losses (ACL) for loans of $14.8 billion at June 30, 2023, increased $1.2 billion from

Tenant Description

Wells Fargo (NYSE: WFC) is one of the largest retail banks in the US.

Wells Fargo’s stability and strength are a huge draw for net lease investors. Wells Fargo has strong investment grade credit, rated A- by S&P and Aa2 by Moody’s. The Wells Fargo leases typically do not require any landlord responsibilities, making it a passive investment. Most leases have rental increases built in during the primary term, during option periods, or both to provide a hedge against inflation.

Wells Fargo was found in 1852 by Henry Wells and William Fargo in the Gold Rush port of San Francisco. Today, Wells Fargo has a very large reach across the nation with over 7,000 locations and 13,000 ATMs. Wells Fargo has offices in 42 countries and serves one in three households in the US. Ranking 3rd in assets and in market value, Wells Fargo is a massive bank which offers many services to customers all over the world.

Average Cap Rate
5.58%
Trailing 12-month average
Average Property & Lease
Average Sale Price $3,311,908
NOI $183,420
$/Square Foot $662 -$1,104
Building SF 3,000 - 5,000
Lot Size 0.75 - 1.5 acres
Lease Term 10 - 20 years
Escalations Varies
Stock Symbol WFC
Credit Rating
S&P A+
Moody's Aa2
Average Cap Rate Trend
5.44%
2022
5.58%
2023
Rates reflect year-over-year comparison
Recent Sales Comps
Baytown, TX 5.00%
Las Vegas, NV 5.80%
Woodbridge, VA 6.00%