Wednesday, May 18, 2011

Net Lease Profile: Fedex

Fedex can write the textbook on global logistics – pioneering the just-in-time supply chain. Its unparalleled tracking systems allow customers around the world to see every detail of a package's movement from the moment the label is prepared until it is delivered to its final destination – anywhere in the world. It's $38 billion in annual revenues generated by over 290,000 employees.

With the help of its innovative information technology and its continued network expansion and accelerated transit times, they have opened new hubs, relocated more than 500 local facilities and are now delivering 50% of their packages in two days or less and 80% in three days or less. Their average daily package volume is now 3.5 million in FY10.

Investing in a Fedex distribution and staging facility means an investment in a Credit Tenant Lease, investment grade quality, which is the core to the Fedex ground business. Leases are typically long term and the locations are strategically located near important air and ground hubs.


  • Strong Credit Tenant
  • Strong Real Estate fundamentals in hub selection
  • Continued focus on network expansion and accelerated transit times
  • Proven business model and management team
  • Most locations have Landlord responsibilities, such as roof and structure limits
  • Impact of higher fuel costs on cash flow and margins
  • Real estate is designed for their specific use, which could impact the releasing to other tenants

For more, read the full profile.

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