ARCTRUST Inc., a private real estate investment trust focused on single-tenant net lease properties, has been assigned an investment grade credit rating of BBB from Egan-Jones Rating Company.
“An investment grade rating is a significant accomplishment for any private REIT, and this enhances ARCTRUST’s ability to increase shareholder value by opening new doors for both product and capital,” said Robert Ambrosi, chairman of ARCTRUST.
According to ARCTRUST, net lease properties are general purpose buildings leased to one or more nationally or regionally recognized tenants. “The assets are secured by both the tenant guarantee, as well as the underlying real estate value,” the company said. “These investments combine the cash flow features of a corporate bond with the potential appreciation inherent in real estate.”
Egan-Jones reportedly evaluated the quality of ARCTRUST’s tenants, its lease terms, property locations, management track record, product type and transparency of the portfolio.
Egan-Jones is an SEC-designated nationally recognized statistical rating organization recognized by the National Association of Insurance Commissioners, as well as the European Securities and Markets Authority.
ARCTRUST specializes in the development, acquisition, and joint-venture lending of single-tenant net lease properties. The company’s geographic focus is in the New York to Washington, D.C. corridor and Florida. During the past 30 years, ARCTRUST and its affiliates have been responsible for more than 500 transactions with an aggregate value in excess of $5 billion.