“You have exposure to the corporation paying the rent, so it’s not 100 percent certain,” Panagiotakopoulos says. “This isn’t senior secured debt, but that’s also why there’s a yield component. We’ve democratized the market’s ability to invest in a broad array of credits.”
He posits that the net-lease structure provides some stability during economic downturns.
“What makes net lease interesting is because they have 11-year leases, unless a company goes bankrupt or out of business, just because the S&P 500 is down 500 points doesn’t mean Starbucks or Taco Bell isn’t paying their rent,” Panagiotakopoulos says.