NNN Lease Investors Remain Enamored With Walgreens & CVS Caremark

NNN Lease Market News

NNN Lease Investors Remain Enamored With Walgreens & CVS Caremark

Net lease investors can’t seem to get enough of the drugstore sector with sales today being driven by a desire among both lenders and buyers for low risk assets with a steady income stream.

According to a report on the second-half outlook for net lease properties from Marcus & Millichap Real Estate Investment Services, drugstore sales were up 10 percent, supporting a 3 percent rise in the median price for the sector to $334 per square foot.

http://retailtrafficmag.com/

CVS $25 Billion Benefit Looms With Caremark Breakup

NNN Lease Market News

CVS Caremark Corp. (CVS), created in a takeover four years ago that has left investors with underperforming stock, could be worth $25 billion more if the company split itself up.
Shareholders SunAmerica Asset Management Corp. and Cambiar Investors LLC say Chief Executive Officer Larry Merlo, 55, may have to separate CVS Caremark’s drugstore and pharmacy-benefits units if the largest U.S. provider of prescription drugs doesn’t lift profit growth. Merlo last month replaced Thomas Ryan, 58, who orchestrated the purchase of Caremark RX Inc. in March 2007. Since then, the stock gained just 3.4 percent through yesterday, trailing a 14 percent advance for companies in the Standard & Poor’s 500 Index that sell consumer staples.

http://www.bloomberg.com/news