ACQUISITION CRITERIA

Net Lease Holdings (NLH) intends to target the acquisition of freestanding, single tenant, triple-net (NNN) leased properties throughout the United States with purchase prices below $8 Million and that are critical to the tenants' businesses.

Transaction Size (Purchase Price):
• $1 Million to $10 Million

Geography:
• United States of America
• Preference for the Midwest Region

Occupancy / Structure / Term:
     • Single Tenant
     • Absolute Triple-Net (NNN) Lease
     • [10] - 25 Year Lease Terms (with shorter terms considered)

Tenant Credit Profile:
     • Investment Grade or Unrated Private Companies
     • Earnings Growth and Momentum
     • Middle-Market Companies with Revenue > $10 Million

Property Type:
     • Industrial & Manufacturing
     • Warehouse / Distribution
     • Flex / Office
     • Healthcare & Medical
     • Retail
     • Some Special Use Assets

Industry Focus:
• Generalist (any or all industries)

Closing Timeframe (per Acquisition Process):
• Typically 45 to 60 Days from LOI Engagement

Lease Treatment:
• Operating Lease per FAS 13
• Off - Balance Sheet

	NLH Acquisition Criteria Rationale:
		NLH believes our focus on owning and expanding a portfolio of such properties outlined above will generate returns for our shareholders that are attractive in light of the risks associated with these returns because:

	•	Properties valued between $1mm - $10mm often seem to be "under the radar" from the institutionally-funded, sale-leaseback buyers; meaning less competitive bidding situations.
	•	Single tenant NNN leased properties require less expenditure for leasing, operating and capital costs per property and offer a more stable and predictable stream of rental income as compared to traditional multi-tenant properties.
	•	Tenants in our target properties are required to fully manage their properties (NNN Lease), which allows NLH to grow our portfolio without substantially increasing the size of our asset management infrastructure.
	•	Long-term leases provide increased stability to an investor's portfolio and our leases almost always have escalators ("bumps") throughout the lease term for protection from inflation and a rising interest rate environment.
	•	Private companies tend to have higher current returns and lower volatility than investment grade rated properties.

HELPFUL LINKS FOR

Private Equity Groups