Here are 15 reasons why we believe Walgreens to be an ideal tenant:

  1. In 2013 Walgreen bought Alliance Boots, a chain of pharmacies in the UK that also sold health and beauty products in 11 countries. This drastically increased Walgreens product offering, supply chain, and market capitalization in the pharmaceutical industry.
  2. Walgreens Boots Alliance ranked 35 on the Fortune 1000 list.
  3. Walgreens has 13,100 stores in over 11 countries, which makes it the largest retail pharmacy in the U.S. and Europe.
  4. Revenue during Walgreen’s fiscal year in 2015 was 103,444 million. On the Fortune 500 list it was ranked #114 in revenue.
  5. The company has a S&P rating of BBB and Moody’s rating of Baa2.
  6. Walgreens received a perfect business credit rating of A+ from credit.net.
  7. Walgreens Boots Alliance was the 5th most admired food and drug store in 2015 according to Fortune magazine.
  8. Walgreens Boots Alliance has been ranked among Fortune’s “World’s Most Admired Companies” for the past 22 consecutive years.
  9. Walgreens Boots Alliance’s official website reports that it has over 8,100 Walgreens stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Approximately 76% of Americans live within 5 miles of a Walgreens store as of August 2015.
  10. Every day Walgreens interacts with about 8 million customers in its stores and online.
  11. Walgreens filled approximately 894 million prescriptions in fiscal 2015.
  12. American’s health care spending is expected to significantly increase in the next decade. In 2014, 17% of the nations gross domestic product was spent in the health care industry. An aging population and new health care initiatives are expected to help increase this proportion to 20% by 2020. Walgreens Boots Alliance projects this will bring 30 million more people into the health care system.
  13. Walgreens has increased the dividend given to shareholders for 40 consecutive years.
  14. According to a poll conducted by Civics Science, 49% of customers make all of their household purchases at Walgreens.
  15. In January 2016 Walgreens announced it plans to acquire RiteAid within the year. This will dramatically increase its market penetration and further strengthen its supply chain.

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References

  1. OneSource database
  2. Walgreens Newsroom- http://news.walgreens.com/fact-sheets/rankings-ratings.htm
  3. Insider monkey- http://www.insidermonkey.com/blog/walgreens-boots-alliance-inc-wba-40-consecutive-years-of-dividend-growth-counting-460792/
  4. Civic Science- https://civicscience.com/ourinsights/insightreports/insight-report-researching-the-personas-of-cvs-rite-aid-and-walgreens-fans/
  5. Drug Store News- http://www.drugstorenews.com/article/walgreens-boots-alliance-names–initiatives-shareholders-meeting-will-fuel-growth?nocache=1
  6. Minyanville: http://www.minyanville.com/trading-and-investing/stocks/articles/Why-Walgreens-Is-A-Good-Buy/5/13/2013/id/49784#ixzz4CGClSA6d
  7. The Street http://realmoney.thestreet.com/articles/04/11/2016/walgreens-rite-aid-deal-depends-selling-stores

About Kay Properties and www.kpi1031.com 

Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market.  Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over 15 Billion of DST 1031 investments.

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