Oct 28, 2023Liked by Tiago Dias

Thanks for sharing your concern! Another one that bothers me is that some of their top tenants are currently struggling too (Walgreens, Dollar General and CVS for example make up +/- 10% of Realty Income annual rent). All 3 feel like "too big to fail", but their situation keep worsening.

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What about lease contracts maturing in the same timeline?

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There isn't a "huge" cliff there, but until 2027 a cumulative 27% of their outstanding leases will be cycled through. 35% by 2028.

The question is do they have the pricing power to raise their rates above the interest expense increase? I doubt it.

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