Investment income group LLC is a US-based private investment firm that focuses on acquiring and managing single-tenant net-leased properties across North America. The company was founded in 2003 and has over 15 years of experience in the net-lease real estate sector. Investment income group follows an investment strategy centered around long-term, recession-resistant net-leased properties with creditworthy tenants. The company has acquired and managed over $4 billion in net-leased real estate assets across various sectors like retail, healthcare, industrial, office, etc. Understanding the business model and investment strategies of investment income group can provide insights into the net-lease real estate investment niche.
Investment Income Group Focuses on Single-Tenant Net Lease Properties For Stable Cash Flows
Investment income group specializes in single-tenant net-leased properties, which refer to properties that are leased to a single tenant on a long-term basis. The tenant is responsible for most expenses like property taxes, building insurance, and maintenance, leading to predictable cash flows for the landlord. Investment income group looks for properties leased to tenants with strong credit ratings and healthy financials, often large corporations like Walgreens, Dollar General, FedEx, etc. The long lease terms of 10-25 years provide stable cash flows that are recession-resistant. By focusing on high-quality net lease properties, investment income group is able to generate consistent dividend income for investors.
Diversification Across Sectors and Geographic Locations Reduces Risk Profile
Investment income group diversifies its net lease property portfolio across different sectors like retail, healthcare, office, industrial, etc. This reduces dependence on any single sector. The company also invests across the US in properties located in various states, avoiding concentration risk. A well-diversified portfolio across sectors and geographic locations leads to a lower risk profile. Investment income group further mitigates risks by conducting rigorous due diligence on properties, analyzing tenant financials, lease terms, location, etc before acquisition.
Investment Vehicles Offered By Investment Income Group
Investment income group offers investors exposure to its net lease property portfolio through three main investment vehicles:
1. Public REIT – The company took its net lease division public through the launch of Broadstone Net Lease (BNL) REIT in 2018. BNL is listed on the NYSE.
2. Private REIT – Investment income group manages private REITs like IIG Net Lease Property Fund series for accredited investors seeking consistent passive income.
3. Individual 1031 Exchanges – The company assists investors executing 1031 tax-deferred exchanges to defer capital gains taxes by selling existing properties and investing the proceeds into net lease assets identified by investment income group.
Focus on Strong and Durable Cash Flows Has Led to a Track Record of Outperformance
Investment income group’s focus on acquiring and managing net lease properties leased to high-quality tenants on a long-term basis has allowed it to generate durable cash flows across market cycles. Through recessions, the company’s net lease investments have continued paying steady dividends. Investment income group has built a strong track record, outperforming stock market returns over the last 10 years. The company’s investments have delivered an annualized return of over 9% compared to 8% for the Nareit Equity REIT Index over the last decade. By following a disciplined investment strategy centered around high-quality net lease properties, investment income group has managed to produce consistent returns for its investors.
In summary, understanding investment income group’s business model focused on single-tenant net lease properties with strong tenants and long leases provides insights into its investment strategies and performance track record. The company has leveraged its expertise in the net lease sector to acquire a well-diversified portfolio generating predictable cash flows for over 15 years.