The company went public in 2008 in a non-traded capacity, Kahane says. Within the last 54 months, ARCT has compiled 485 properties in its portfolio, which are anchored with corporate investment-grade tenants.

“During the course of that four-year-and-a-half year period, we raised, in a non-traded context, blind-pool capital and we consistently deployed that capital by buying real estate in that strategy,” he says, noting that almost 72% of the rents derived from the ARCT portfolio are paid by tenants who are invested or are rated investment-grade.

Due to the high-quality nature of the tenants—including CVS, Walgreens and other national brands—lease terms average at 13.4 years in the portfolio, Kahane explains, noting that companies lease space for longer durations of time.

“We have virtually no lease expiration for the next five years,” he says. “The security of knowing that those rents will continue to be paid, and in fact, on average, those rents will grow in that portfolio by one, one-and-a-quarter, one-and-a-half percent annually. So that’s subject to a little bit of leverage and gives us a little bit of inflation hedge as well.”

In evaluating the company strategy given the economic slowdown, Schorsch says ARCT focuses on diversity of tenants, industry and geographic location. “What’s good for real estate is slow and metered recovery,” he says, noting that he looks for strong yield, characteristics of durability and stable growth. “Fast, crazy growth is not necessarily good for real estate.”

And focusing on the real estate and the investors has paid off. Since going from non-traded to listing in four years, ARCT is internalizing its advisor and waiving all fees, which represents millions in savings to shareholders.

“It’s developed for the investor a distribution where we a dividend, now that we are public and traded, that is durable, that is sustainable and that we can grow over time as a function of the growth of the underlying rents,” Kahane says.

As of Thursday's close, ARCT’s stock traded at 4.9 million shares, with a closing price of $10.49 per share. Schorsch expects demand will continue to stay high due to the tightening of the market.

“Our whole focus is shareholder value,” he says. “We have eliminated internalization fees, we’ve shortened the life of an illiquid asset moving toward liquidity. We have 40,000 investors that now have a liquid asset that’s no longer an alternative. That’s a very rare occurrence, and we’ve done it in a very short period of time, and that’s trading price is higher than what they paid for. So they made money. And that’s all that matters.”