Buy Walgreens Investment Grade Real Estate
Walgreens Boots Alliance is one of the largest pharmaceutical retail companies in the world, operating in over 25 countries. As a publicly traded company, its stock price and business outlook are of interest to investors and stakeholders. In this article, we will discuss the current stock price of Walgreens and its historical performance, as well as the company’s business outlook.
Current Stock Price
As of February 6th, 2023, the current stock price of Walgreens Boots Alliance is around $57. This is significantly higher than the stock’s 52-week low of $39. The stock price has been on a upward trend over the past year, reflecting the company’s improved financial performance and the overall positive sentiment in the stock market.
Historical Performance
Walgreens has a long history of stability and growth. Over the past decade, the company’s revenue has consistently increased, reaching over $140 billion in 2022. The company’s net income has also been relatively stable, although it has fluctuated slightly in recent years due to increased competition in the retail pharmacy industry and the impact of the COVID-19 pandemic.
In 2020, the COVID-19 pandemic had a significant impact on Walgreens’ financial performance. The company saw a surge in demand for its products and services, as well as increased costs due to measures taken to protect its employees and customers. However, the company was able to quickly adapt to the changing business environment and continue to serve its customers and communities.
Business Outlook
Looking ahead, Walgreens’ business outlook is positive. The company is well positioned to benefit from the growing demand for healthcare services, particularly as the population continues to age. Walgreens is also focused on expanding its digital capabilities, including its telehealth and home delivery services, to better serve its customers and meet their changing needs.
In addition, the company is actively pursuing strategic acquisitions and partnerships to expand its offerings and reach new customers. For example, in 2020, Walgreens acquired Rite Aid, one of the largest drugstore chains in the United States, which has helped the company to expand its retail footprint and reach new customers.
Walgreens Boots Alliance is a well-established and stable company with a positive business outlook. The company’s current stock price reflects its improved financial performance and the overall positive sentiment in the stock market. With its focus on expanding its offerings and reaching new customers, as well as its strong balance sheet and consistent revenue growth, Walgreens is well positioned for continued success in the future.
As of 2023, the current investment grade credit ratings for Walgreens are as follows:
– Standard & Poor’s (S&P): BBB
– Moody’s Investors Service: Baa2
– Fitch Ratings: BBB
S&P and Fitch Ratings have assigned Walgreens a “stable” outlook, indicating that the company’s credit rating is not expected to change in the near future. Moody’s, on the other hand, has assigned a “positive” outlook, indicating that the company’s credit rating could improve in the future.
These investment grade ratings indicate that Walgreens is considered to have a relatively low credit risk and a relatively high ability to repay its debt obligations. However, the ratings also indicate that the company’s financial profile is not as strong as companies with higher ratings, such as AAA-rated companies.
In recent years, Walgreens has faced several challenges, including increased competition in the retail pharmacy industry, changes in healthcare regulations, and the impact of the COVID-19 pandemic. However, the company has taken steps to improve its financial profile, such as reducing costs and increasing operational efficiency.
The current investment grade credit ratings for Walgreens indicate that the company is considered to have a relatively low credit risk, but its financial profile is not as strong as companies with higher ratings.
The company’s credit ratings are being monitored by the credit rating agencies, and its outlook could change in the future based on its financial performance and the economic environment.
Many Investors Prefer to Invest in Walgreens Real Estate
Net lease real estate refers to commercial properties where the tenant is responsible for paying a significant portion of the operating expenses, including property taxes, insurance, and maintenance. When a property has a well-established and financially stable tenant, such as Walgreens, it can offer several advantages for investors looking to invest in net lease real estate.
Advantages of Buying Net Lease Real Estate with Walgreens as a Tenant
1. Creditworthy Tenant: One of the most significant advantages of having Walgreens as a tenant is its strong financial position. As one of the largest pharmaceutical retail companies in the world, Walgreens has a proven track record of stability and growth, which is reflected in its investment grade credit rating. This stability and creditworthiness of the tenant helps to reduce the risk for investors and provides a more secure investment.
2. Long-Term Leases: Walgreens typically enters into long-term leases, which can provide investors with stable and predictable cash flow for several years. This is particularly important for net lease real estate, where the tenant is responsible for paying a significant portion of the operating expenses. With a long-term lease in place, investors can be confident in the stability of their cash flow and the reliability of their tenant.
3. Attractive Yields: Net lease real estate with a creditworthy tenant such as Walgreens can offer attractive yields compared to other investment opportunities. The yield is dependent on several factors, including the lease terms, the location of the property, and the creditworthiness of the tenant. However, with Walgreens as a tenant, investors can expect to receive competitive yields and a stable investment.
4. Strong Brand Recognition: Walgreens is a well-known and trusted brand, with a large customer base and a strong reputation for quality products and services. This strong brand recognition can provide benefits for the property, such as increased foot traffic and visibility, which can lead to higher rental income and more attractive lease terms.
5. Growing Demand for Healthcare: Walgreens operates in a growing industry, as the demand for healthcare services continues to increase. With its focus on expanding its offerings and reaching new customers, Walgreens is well positioned to benefit from this growing demand and continue to drive growth for its investors.
Buying Investment Grade Net Lease Real Estate with Walgreens as a tenant can offer several advantages for investors. With its strong financial position, long-term leases, attractive yields, strong brand recognition, and growing demand for healthcare, Walgreens provides a secure and stable investment opportunity for those looking to invest in net lease real estate.
Investment Grade Income Property, LP has a number of Walgreens net lease real estate properties for sale around the country. Email eli@investmentgradeincomeproperty.com for location, prices and cap rates. We can also assist sponsors with the creation of special purpose & multi owner investment group formation.