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Net Lease Profile: Rite Aid

Rite Aid has been taking steps to strengthen its balance sheet and improve its overall business.

By Jonathan Hipp | Updated on October 24, 2013

The nation’s 3rd largest drugstore operator has not performed as well as sector leaders, Walgreens and CVS. Rite Aid has been taking steps to strengthen its balance sheet and improve its overall business. Accordingly, if you own or would like to own Rite Aid net lease properties then you must consider the risk-reward outcomes and accept higher risk compared to CVS and Walgreens. However, Rite Aid offers the opportunity for a higher return than its competitors in the net lease Pharmacy Sector. 

Corporate Rite Aid currently faces a number of challenges yet they have long been a popular asset in the net lease market due to strong fundamentals: highly demanded corner locations and long-term NNN leases. The overall stability of the pharmacy sector also creates interest and demand for Rite Aid net lease properties. With their acquisition of pharmacy chains Brooks in the northeast and Eckerd’s in the Carolina’s and Georgia, Rite Aid has been able to remain as one of the largest pharmacy chains in the nation in regards to market presence. 

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