Cantor Fitzgerald Income Trust, Inc. Extends Lease Term on Seven Walgreens Locations
NEW YORK, March 31, 2021 /PRNewswire/ -- Cantor Fitzgerald Income Trust, Inc. (CF Income Trust) today announced that it, through its indirect wholly-owned subsidiary, CF Net Lease Portfolio IV, DST (DST IV), has entered into an agreement with Walgreens Co. (Walgreens) to extend the lease term on seven Walgreens locations with strong historical performance owned by DST IV. The agreement confirms Walgreens' waiver of a termination option thereby extending the first-term lease maturity dates by five years to November 30, 2036, which CF Income Trust expects to be accretive to the value of the Walgreens assets.
Under the terms of the agreement, Walgreens received $2.7 million from CF Income Trust in exchange for the waiver of a termination right by the tenant. The Walgreens assets are currently encumbered by a single CMBS loan with an anticipated repayment date of December 31, 2026 leaving nearly ten years of lease term beyond the stated loan maturity.
"This transaction underscores the proactive management approach and deep relationships of our real estate team working together to advance the interests of our stockholders, while also demonstrating the quality of the real estate in our portfolio," said Chris Milner, President of CF Income Trust.
In addition, the lease extensions increase the weighted average lease term of CF Income Trust's net lease assets from 10.4 years to 12.0 years (using annualized rental income as of December 31, 2020). "As an additional benefit to our stockholders, this transaction enhances our ability to refinance the existing loan in the future due to the lease term extending beyond the anticipated loan repayment date," said Roger Shreero, Managing Director of Cantor Fitzgerald.
About Cantor Fitzgerald, L.P.
Cantor Fitzgerald, with over 12,000 employees, is a leading global financial services group at the forefront of financial and technological innovation and has been a proven and resilient leader for over 75 years. Cantor Fitzgerald & Co. is a preeminent investment bank serving more than 5,000 institutional clients around the world, recognized for its strengths in fixed income and equity capital markets, investment banking, SPAC underwriting and PIPE placements, prime brokerage and commercial real estate, and for its global distribution platform. Cantor Fitzgerald & Co. is one of the 24 primary dealers authorized to transact business with the Federal Reserve Bank of New York. Cantor Fitzgerald is a leading SPAC sponsor, having completed multiple initial public offerings and announced multiple business combinations through its CF Acquisition platform. For more information, please visit:cantor.com.
About Cantor Fitzgerald Income Trust, Inc.
Cantor Fitzgerald Income Trust, Inc. is a publicly registered, non-traded, monthly-valued perpetual real estate investment trust ("REIT")1 designed to deliver tax-advantaged distributions2 and structured for transparency and an alignment of interests with investors.3 For more information, please visit: cfincometrust.com.
1 We elected to be taxed as a Real Estate Investment Trust ("REIT") beginning in the taxable year ending December 31, 2017. Our failure to qualify as a REIT would result in higher taxes, may adversely affect our operations, would reduce the amount of income available for distribution and would limit our ability to make distributions to our shareholders.
2 There is no guarantee of distributions. Distributions have and may continue to be paid from other sources other than cash flow from operations, including offering proceeds, which reduce investor's overall return. Distributions paid with respect to Class D Shares, T Shares and Class S Shares will be reduced by the ongoing distribution fee payable with respect to such classes of shares.
3 All of our executive officers, some of our directors and other key real estate professionals are also officers, directors, managers and key professionals of our advisor, our dealer manager or other entities affiliated with Cantor and as a result face significant conflicts of interest.
Disclaimer
This press release is prepared for general information purposes only. It is only current as of its date, has not been independently verified and may be subject to change without notice. CF Income Trust and its manager make no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to, the fairness and completeness of the content hereof. Each recipient will be solely responsible for its own investigation, assessment and analysis of CF Income Trust.
This press release contains forward-looking statements based on the currently held beliefs, opinions and assumptions of CF Income Trust's manager. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of CF Income Trust, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this press release are cautioned not to place undue reliance on these forward-looking statements. CF Income Trust's manager disclaims any obligation to update these forward-looking statements to reflect future events or developments or the impact of events which cannot currently be ascertained. In addition to statements which are forward looking by reason of context, the words 'may', 'will', 'should', 'expects', 'plans', 'intends', 'anticipates', 'believes', 'estimates', 'predicts', 'potential' or 'continue' and similar expressions identify forward-looking statements.
SOURCE Cantor Fitzgerald, L.P.