VALVOLINE

INVESTMENT HIGHLIGHTS

LEASE HIGHLIGHTS:

• Absolute NNN Ground Lease: Tenant is responsible for the direct payment of all taxes, insurance, and maintenance associated with the property, providing the landlord with an absolute form of passive income.
• Corporate Guarantee: The lease is corporately guaranteed by Valvoline Inc (NYSE: VVV), providing a landlord with very secure guarantee backing the lease.
• 10% Rent Bumps Every 5 Years: The lease is includes 10% rent increases every 5 years and at each renewal option, enhancing returns and providing an owner with hedges against inflation.

LOCATION HIGHLIGHTS:

• Outparcel to Top Performing Walmart Supercenter: The site is positioned as an outparcel to a Walmart Supercenter, ensuring consistent customer exposure to Valvoline
• The Walmart behind the Valvoline ranks in the top 75th percentile nationally and top 80th percentile in the state of Indiana, per Alpha Maps
• Recent Construction: The Property was developed brand new from the ground up in 2020, providing an owner with a building that is of top-notch quality
• Tremendous Population Growth: Kokomo has experienced explosive growth in the last 10 years, seeing a 31.1% growth rate in population
• Prominent Retail Corridor: The Property benefits from other national retailers in the immediate surrounding area such as Walmart, Sam’s Club, Wendy’s, Meijer, Target, Hobby Lobby, McDonald’s, Verizon, Sonic, Walgreens, Verizon, Planet Fitness, Circle K, and several others.

TENANT HIGHLIGHTS:

• Industry Leading Tenant – Valvoline ranked #1 among all oil change and preventative automotive maintenance brands and 27th overall among the top 500 franchise brands.
• Rapid Revenue Growth – As of the end of 2023, Valvoline reported annual revenue of $1.444 billion, which was a 17% increase over the previous year in 2022.
• Active Growth – Valvoline is accelerating the growth of its retail footprint by aiming to add 250 new store locations by 2027, with 100 of those locations coming from franchisees.