TRACTOR SUPPLY

INVESTMENT HIGHLIGHTS

• Extended Corporate Guaranty with Rent Increases and Minimal Landlord Responsibilities – This longer-term NN lease was extended with now ±11 years remaining on the base term, is corporately guaranteed by Tractor Supply Company and includes a 5% rent increase in 2030 and 7.50% increases every 5 years in the option periods, providing a hedge against inflation, improving the overall return, and providing a reliable and growing source of income.
• Best in Class – Strong Fortune 500 Tenant – Ranked #291 on the Fortune 500 list, TSC is one of the fastest-rising companies, with their continued impressive growth trajectory, boasting a ±$32.5 billion market cap, and over 2,500 location in 49 states including their 205 Petsense stores.
• Broken Arrow, OK (Tulsa MSA) – Broken Arrow is the 4th largest city in Oklahoma, just East of Tulsa that has seen significant growth of well over 15% in the last decade. This is in large part because of a lot of new development, low crime, high quality schools, and employment numbers that outpace the rest of the state.
• Strong Demographics – There are near 100,000 people and just under $100,000 in average household incomes within a 5 mile radius. Just down the road is a Walmart Supercenter with new developments including a retail strip center, O’Reilly Auto Parts, Casey’s, Take 5, and other self storage/industrial property, with likely more to come.
• TSC Company Growth and E-Commerce Proof – Tractor Supply serves as the industry leader for its ability to adapt and thrive amongst the presence of e-commerce. TSC reported net sales increased 20.7% to $4.01 billion in the 4th quarter of 2022 from $3.32 billion in the 4th quarter of 2021. This is due in large part to TSC’s investment in their bricks-and-mortar locations and new initiatives such as a buy online pick-up, in-store (curbside pickup), and offering customers same-day delivery from 100% of their stores (the nation’s first general merchandise retailer to do so).
• Pandemic Proof Essential Retailer – Tractor Supply proved its resiliency through the COVID-19 pandemic, reporting record financial and operating results in 2020 including a 53% increase in sales since pre-pandemic levels.