Walgreens Pharmacy Milwaukee Metro

Walgreens Pharmacy

Milwaukee Metro

• Relocationofahighsalesvolumestore

• Greatcornerwithover53,000carsperday

• “Main&Main”locationwithgreatretailtradearea

• WestBendisarelativelyaffluentsuburb

• OfftheI-45,just20milesfromMilwaukee

• ImportantstrategiclocationforWalgreens

• Walgreenscorporateguarantee(NYSE:WAG)

• Investmentgradecredit(S&PA+;Moody’sAa3)

• Newconstruction,75yearNNNlease

• Zeromanagementresponsibilities

$5,700,000

6.50%CAPRate

DeerfieldPartnersJohn GiordaniArt Griffith(415)[email protected]

Walgreens Pharmacy

West Bend, Wisconsin

DeerfieldPartnersJohn GiordaniArt Griffith(415)685-3035

[email protected]

Price

CAP

AnnualIncome

RentIncreases

Debt

$5,700,000

6.50%

$370,000

None

Buyertoobtainnewdebtatmarket.Pleasecalltodiscussoptions.

Investment Summary

Property Details

Lease Summary

About This Investment Opportunity

Address

City

State

ThisnewWalgreenssitsonthecornerofParadiseandMainwhichbenefitsfromtrafficcountsofover50,000carsperday.Thisintersectionisgenerallyconsideredtobelocatedat“MainandMain”inWestBend,arelativelyaffluentsuburblocatedjust20milesfromMilwaukee.Acrossthestreetisanewlyrede-velopedPick’nSavegrocerystore,thepremiersupermarketchaininWisconsinwith93stores.

WalgreensopeneditsfirststoreinWestBendover20yearsago.Basedontheveryhighsalesvolumeandprofitabilityatthatsinglestore,Walgreensdecidedtoopentwobrandnewstorestoservethemar-ket.ThefactthatWalgreensmadethestrategicdecisiontoopentwobrandnewstores,andnotjustonenewstore,indicatesthatWalgreensanticipatesstrongsalesvolumesatbothnewlocations.InitialreportsfromWalgreensindicatesalesvolumesareup30%fromthepreviouslocation.

1921SouthMainSt.

WestBend

Wisconsin

Walgreens(NYSE:WAG)

June28,2010

None

75years

Startinginyear26Tenantmayterminateleasewith12monthsnotice.

None.Leaseistrulytriple-net(NNN).Zerolandlordcostexposure.

2010

14,754squarefeet

2.4acres

YearBuilt

BldgSize

LotSize

Tenant

RentStartDate

RentIncreases

LeaseTerm

Options

LandlordResponsibilities

Walgreens Pharmacy



[email protected]

DemographicSummary

RegionalMap/AboutWestBend,Wisconsin

1 Mile 3 Mile 5 Mile

Population 5,675 27,524 44,994

Avg. HH Income $81,088 $74,732 $78,974

Locatedjust20milesfromMilwaukeeand100milesnorthofChicago,WestBendisaverystable,wellesta-bilshed,andrelativelyaffluentmidwesternsuburb.

TheCityofWestBendislocatedinWashingtonCounty,theheartoftheKettleMoraineinSoutheasternWiscon-sin.WestBendishometoover30,000peopleandislessthananhour’sdrivenorthofMilwaukee.WestBendisclosetonumerouslakesandtheareasurroundingWestBendisasportsperson’sparadise.WestBendof-fersresidentsandvisitorssmalltownliving,withconve-nientaccesstoenjoythefastpaceofthegreatermetro-politanareasofMilwaukeeandChicago.

Thisisagreatcommunitywithverylittleriffrafforcrime.

Walgreens Pharmacy



[email protected]

AerialofSiteandIntersection

Walgreens Pharmacy



[email protected]

StorePhotos

Walgreens Pharmacy



[email protected]

PhotosofSurroundingRetailers

Walgreens Pharmacy



[email protected]

SitePlan

Walgreens Pharmacy



[email protected]

AboutWalgreens

FinancialsinmillionsofUSD

Walgreensisthe#1pharmacyinAmericabyanymeasure.Foundedin1901,andtradedontheNewYorkStockExchange(NYSE:WAG),Walgreensoperates6,443storesin49states.Walgreensiswidelyregardedasthesafest,mostsecuresingle-tenantNNNleasedinvestmentpropertybecauseofitsstrongbalancesheetandmarketcapitalization.ForthefiscalyearendedAugust31,2008:• Saleswereover$59.03billion• Profitwasover$2.15billion• Networthwasover$12.86billion

IncomeStatementTotalRevenueGrossProfitOperatingIncomeNetIncome

63,335.0017,613.003,247.002,006.00

59,034.0016,643.003,441.002,157.00

53,762.0015,243.903,150.702,041.30

Annual2009 Annual2008 Annual2007

BalanceSheetTotalCurrentAssetsTotalAssetsTotalCurrentLiabilitiesTotalLiabilitiesTotalEquity

12,049.0025,142.006,769.0010,766.0014,376.00

10,433.0022,410.006,644.009,541.0012,869.00

9,510.5019,313.606,744.308,209.3011,104.30

CashFlowNetIncome/StatingLineCashfromOperatingActivitesCashfromInvestingActivitiesCashfromFinancialActivitiesNetChangeinCash

2,006.004,111.00-2,776.00309.00

1,644.00

2,157.003,039.00-2,818.00-33.00188.00

2,041.302,356.70-2,395.70-626.10-665.10

Walgreens Pharmacy



[email protected]

AboutWalgreens

Foundedin1901,Walgreensprovidesthemostconvenientaccesstoconsumergoodsandservices,andpharmacy,healthandwellnessservices,inAmerica.Thecompanyhasrecorded34consecutiveyearsofrecordsalesandearnings,atrackrecordmatchedbyonlyoneotherFortune500company.

Walgreensistakingstepstoensurethecompany’scontinuedsuccessinthefaceofaweakeningeconomy.Theyaretrans-formingintoamoreefficientandcustomer-focusedcompany,bothfordrugstorecustomersandforpatientsandpayorsseekingqualitypharmacy,healthandwellnessservicesthatareaccessibleandaffordable.

ManagingthroughdifficulteconomictimesWalgreensiscurrentlyconductingacompany-wideinitiativetoaligntheircosts,cultureandcapabilitiestotheirstrategyandtotherealitiesofthecurrenteconomicenvironment.Theyaretargetingapproximately$1billioninannualcostreductionsby2011throughmoreefficientprocesses,strategicsourcingandplanstoreducecorporateoverheadandworkthroughouttheirstores.

Inthepharmacy,theyareworkingtofillprescriptionsmoreefficiently.They’reintheearlystagesofrollingoutanewinitiativetotransform–andadvance–thepracticeofcommunitypharmacy.Currently,they’vefocusedontheirFloridastoreswherethey’vemovedtaskssuchasphonecalls,prescriptiondataentryandinsuranceverificationfromindividualstorestomoreefficientcentralprocessingfacilities.

AdjustingourorganicstoregrowthWalgreensremainsamongthefastestgrowingretailersinthecountry,evenwiththeirplannedslowdownoforganicgrowthfromthecurrent9percentratetoarateofbetween2.5and3percentby2011.Slowergrowthofferstwobigpositives:first,moretimetodeveloptheirmanagementranksandfocusonimprovingthecustomerexperience;andsecond,greaterflex-ibilitytoinvestinopportunitiesthatwillstrengthentheircoreretailbaseanddeliverattractivereturnstotheirshareholders.

GrowingourhealthclinicsandspecialtypharmacybusinessThey’regrowingtheirhealthclinicsandspecialtypharmacybusinesstocomplementtheirdrugstores.Theynowoperatemorethan680healthandwellnessclinicsintheirstoresandonemployerworksites.Sinceacquiringtwoworksitehealthcentercompanieslastspring,they’veintegratedtheseservicesintotheirnewHealthandWellnessdivision,whichplanstoexpandto800sitesbytheendoffiscal2009.Theirhealthcentersonornearemployercampusesofferdiverseservicesincludingprimaryandacutecare;wellness,pharmacyanddiseasemanagementservices;andhealthandfitnessprogram-ming.Employersrecognizethesignificantvalueandcostsavingsthesecenterscanprovide.

Boththeirretailhealthclinicsandworksitefacilitieswillpositionthemasoneofthenation’sforemostprovidersofhealthandwellnessservices.TheyarehighlycomplementarytotheirretailpharmaciesandincreaseawarenessoftheirWalgreensbrand.

Walgreens Pharmacy



[email protected]

Rankings&Ratings

FortunemagazineAmerica’sMostAdmiredCompaniespublishedMarch17,2008Walgreensrankedfifthamongfoodanddrugstoresandislistedforthe15thconsecutiveyear.

FortunemagazineGlobalMostAdmiredCompaniespublishedMarch17,2008WalgreensrankedseventhamongfoodanddrugstoresandNo.36amongthe50mostadmiredcompanies.

Fortunemagazine500LargestU.S.-BasedCompaniespublishedMay5,2008Walgreensranked40thoverallinrevenue,thirdamongfoodanddrugstores.

Fortunemagazine40BestStocksToRetireOnpublishedJune23,2008WalgreensmadethelistofrecommendedBargainGrowthstocks.

FortunemagazineGlobal500LargestCompaniespublishedJuly21,2008Walgreensranked125thoverallinrevenue.

ForbesPlatinum400ListpublishedJanuary12,2009WalgreensagainmadethislistofthebestperformingbigcompaniesintheUnitedStates

ForbesGlobal2000publishedApril21,2008Walgreensranked250thonthislistofthe2000largestpubliccompaniesworldwide.

Moody’sWalgreenscurrentratingisA2.

StandardandPoor’sWalgreenscurrentratingisA+.

Walgreens Pharmacy



[email protected]

StoresNationwide

TotalDrugstores-7,162TotalLocations-7,665*

Through Jan. 31, 2009Includes 49 states, the District of Columbia and Puerto Rico

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

94

3

242

59

565

154

83

62

809

189

9

35

563

199

66

64

92

137

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

NewHampshire

NewJersey

NewMexico

NewYork

NorthCarolina

NorthDakota

Ohio

7

51

149

221

132

67

191

11

55

75

30

153

60

198

164

1

250

Oklahoma

Oregon

Pennsylvania

RhodeIsland

SouthCarolina

SouthDakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

WestVirginia

Wisconsin

Wyoming

PuertoRico

WashingtonD.C.

100

62

111

26

100

14

241

659

42

2

104

121

12

217

9

101

1

*Inadditiontoitsdrugstores,Walgreensalsooperatesworksitehealthcenters,homecarefacilitiesandspecialty,institutionalandmailservicephar-

macies.ItsTakeCareHealthSystemssubsidiarymanagesmorethan700convenientcareclinicsatWalgreensdrugstoresandhealthandwellness

centersonthecampusesoflargeemployers.

Walgreens Pharmacy



[email protected]

Sales&Earnings

Walgreenshasrecorded34consecutiveyearsofrecordsalesandearnings.

FiscalYearEndedAug.31

FiscalYear

FiscalYearEndedAug.31

200920082007200620052004

NewStoresAcquisitionsClosings

NetStoreOpeningsTotalStores

200920082007200620052004

SalesinBillions

20082009

EarningsPerShare

$63.3$59.0$53.8$47.4$42.2$37.5

60289129562

7,496

60842394937

6,934

$2.02$2.17$2.03$1.72$1.52$1.31

PercentIncrease

2007

PercentIncrease

7.3%9.8%13.4%12.3%12.5%14.3%

50112085536

5,997

-6.9%6.9%18.0%13.2%16.0%15.8%

EarningsinBillions

2006

$2.01$2.16$2.04$1.75$1.56$1.35

4759594476

5,461

PercentIncrease

2005 2004

-7.0%5.7%16.6%12.3%15.5%15.7%

436468372

4,985

4291482361

4,613

Walgreens Pharmacy



[email protected]

Demographics-1MileRadius

Demographic and Income Profile1921 S Main St, West Bend, WI 53095-5206 Prepared by John GiordaniDeerfield PartnersRing: 1 mile radius Latitude: 43.397197

Longitude: -88.18079

AreaStateUSA

Trends 2010-2015

Population Households Families Owner HHs Median HH Income

Annual

Rat

e (i

n p

erce

nt)

3

2.5

2

1.5

1

0.5

0

20102015

Population by Age

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

Perc

ent

14131211109876

543210

2010 Household Income

$200K+5.4%

$150K - $199K3.8%

$100K - $149K14.2%

$75K - $99K17.1%

$50K - $74K21.4%

$35K - $49K15.5%

$25K - $34K10.7%

$15K - $24K4.8%

< $15K7.1%

2010 Population by Race

White Black Am. Ind. Asian Pacific Other Two+

Perc

ent

90

80

70

60

50

40

30

20

10

0

2010 Percent Hispanic Origin: 3.9%

June 24, 2011

©2010 Esri Page 2 of 6

Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. Esri forecasts for 2010 and 2015.

Walgreens Pharmacy



[email protected]


Demographic and Income Profile1921 S Main St, West Bend, WI 53095-5206 Prepared by John GiordaniDeerfield PartnersRing: 1 mile radius Latitude: 43.397197


Summary 2000 2010 2015Population 5,155 5,675 5,851Households 2,178 2,502 2,601Families 1,464 1,667 1,726Average Household Size 2.36 2.26 2.24Owner Occupied Housing Units 1,295 1,493 1,555Renter Occupied Housing Units 883 1,009 1,046Median Age 36.3 38.3 38.9

Trends: 2010 - 2015 Annual Rate Area State NationalPopulation 0.61% 0.47% 0.76%Households 0.78% 0.59% 0.78%Families 0.70% 0.51% 0.64%Owner HHs 0.82% 0.61% 0.82%Median Household Income 3.45% 2.55% 2.36%

2000 2010 2015 Households by Income Number Percent Number Percent Number Percent

<$15,000 189 8.7% 178 7.1% 140 5.4%$15,000 - $24,999 177 8.1% 120 4.8% 97 3.7%$25,000 - $34,999 325 14.9% 268 10.7% 194 7.5%$35,000 - $49,999 362 16.6% 389 15.5% 274 10.5%$50,000 - $74,999 591 27.0% 535 21.4% 579 22.3%$75,000 - $99,999 211 9.7% 427 17.1% 425 16.3%$100,000 - $149,999 187 8.6% 356 14.2% 556 21.4%$150,000 - $199,999 66 3.0% 94 3.8% 176 6.8%$200,000+ 77 3.5% 136 5.4% 161 6.2%

Median Household Income $51,197 $63,926 $75,723Average Household Income $63,376 $81,088 $93,603Per Capita Income $26,495 $34,974 $40,708

2000 2010 2015 Population by Age Number Percent Number Percent Number Percent

0 - 4 344 6.7% 388 6.8% 397 6.8%5 - 9 353 6.8% 372 6.6% 386 6.6%10 - 14 377 7.3% 363 6.4% 385 6.6%15 - 19 342 6.6% 348 6.1% 343 5.9%20 - 24 317 6.1% 328 5.8% 317 5.4%25 - 34 746 14.5% 764 13.5% 775 13.2%35 - 44 756 14.7% 810 14.3% 847 14.5%45 - 54 693 13.4% 790 13.9% 767 13.1%55 - 64 436 8.5% 677 11.9% 733 12.5%65 - 74 406 7.9% 388 6.8% 492 8.4%75 - 84 305 5.9% 301 5.3% 258 4.4%85+ 80 1.6% 145 2.6% 150 2.6%

2000 2010 2015 Race and Ethnicity Number Percent Number Percent Number Percent

White Alone 4,989 96.8% 5,341 94.1% 5,454 93.2%Black Alone 25 0.5% 85 1.5% 104 1.8%American Indian Alone 23 0.4% 30 0.5% 32 0.5%Asian Alone 34 0.7% 66 1.2% 80 1.4%Pacific Islander Alone 2 0.0% 2 0.0% 2 0.0%Some Other Race Alone 42 0.8% 80 1.4% 94 1.6%Two or More Races 40 0.8% 71 1.3% 85 1.5%Hispanic Origin (Any Race) 114 2.2% 220 3.9% 276 4.7%

Data Note: Income is expressed in current dollars

June 24, 2011



Walgreens Pharmacy



[email protected]


Demographic and Income Profile1921 S Main St, West Bend, WI 53095-5206 Prepared by John GiordaniDeerfield PartnersRing: 3 miles radius Latitude: 43.397197


AreaStateUSA

Trends 2010-2015


Annual

Rat

e (i

n p

erce

nt)

3

2.5

2

1.5

1

0.5

0

20102015

Population by Age

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

Perc

ent

141312

1110987654

3210


$200K+3.0%

$150K - $199K3.0%

$100K - $149K16.8%

$75K - $99K17.2%

$50K - $74K22.3%

$35K - $49K14.8%

$25K - $34K8.9%

$15K - $24K7.7%

< $15K6.4%



Perc

ent

90

80

70

60

50

40

30

20

10

0


June 24, 2011



Walgreens Pharmacy



[email protected]




Summary 2000 2010 2015Population 25,625 27,524 28,183Households 10,445 11,723 12,107Families 6,944 7,797 8,039Average Household Size 2.41 2.31 2.29Owner Occupied Housing Units 6,806 7,695 7,968Renter Occupied Housing Units 3,639 4,028 4,139Median Age 37.3 39.6 40.0



<$15,000 906 8.7% 752 6.4% 568 4.7%$15,000 - $24,999 1,160 11.1% 897 7.7% 725 6.0%$25,000 - $34,999 1,423 13.6% 1,047 8.9% 759 6.3%$35,000 - $49,999 1,812 17.3% 1,731 14.8% 1,253 10.3%$50,000 - $74,999 2,745 26.3% 2,610 22.3% 2,810 23.2%$75,000 - $99,999 1,183 11.3% 2,019 17.2% 1,961 16.2%$100,000 - $149,999 827 7.9% 1,969 16.8% 3,008 24.8%$150,000 - $199,999 188 1.8% 350 3.0% 593 4.9%$200,000+ 203 1.9% 348 3.0% 431 3.6%



0 - 4 1,663 6.5% 1,796 6.5% 1,801 6.4%5 - 9 1,673 6.5% 1,738 6.3% 1,782 6.3%10 - 14 1,802 7.0% 1,712 6.2% 1,789 6.3%15 - 19 1,748 6.8% 1,629 5.9% 1,629 5.8%20 - 24 1,442 5.6% 1,543 5.6% 1,476 5.2%25 - 34 3,561 13.9% 3,638 13.2% 3,718 13.2%35 - 44 3,955 15.4% 3,775 13.7% 3,764 13.4%45 - 54 3,496 13.6% 3,978 14.5% 3,825 13.6%55 - 64 2,227 8.7% 3,341 12.1% 3,522 12.5%65 - 74 1,810 7.1% 1,972 7.2% 2,544 9.0%75 - 84 1,633 6.4% 1,461 5.3% 1,404 5.0%85+ 617 2.4% 940 3.4% 927 3.3%


White Alone 25,018 97.6% 26,372 95.8% 26,830 95.2%Black Alone 82 0.3% 256 0.9% 308 1.1%American Indian Alone 89 0.3% 116 0.4% 124 0.4%Asian Alone 122 0.5% 235 0.9% 284 1.0%Pacific Islander Alone 5 0.0% 4 0.0% 4 0.0%Some Other Race Alone 125 0.5% 236 0.9% 274 1.0%Two or More Races 185 0.7% 304 1.1% 359 1.3%Hispanic Origin (Any Race) 407 1.6% 783 2.8% 986 3.5%


June 24, 2011



Walgreens Pharmacy



[email protected]




AreaStateUSA

Trends 2010-2015


Annual

Rat

e (i

n p

erce

nt)

32.82.62.42.2

21.81.61.41.2

10.80.60.40.2

0

20102015

Population by Age

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

Perc

ent

1514131211109876543210


$200K+3.0%

$150K - $199K3.7%

$100K - $149K19.0%

$75K - $99K18.3%

$50K - $74K23.3%

$35K - $49K13.4%

$25K - $34K7.8%

$15K - $24K6.2%

< $15K5.3%



Perc

ent

90

80

70

60

50

40

30

20

10

0


June 24, 2011



Walgreens Pharmacy



[email protected]




Summary 2000 2010 2015Population 41,461 44,994 46,436Households 16,013 18,145 18,886Families 11,248 12,723 13,220Average Household Size 2.54 2.43 2.41Owner Occupied Housing Units 11,145 12,667 13,228Renter Occupied Housing Units 4,868 5,478 5,658Median Age 36.8 39.0 39.2



<$15,000 1,156 7.2% 968 5.3% 717 3.8%$15,000 - $24,999 1,563 9.7% 1,126 6.2% 903 4.8%$25,000 - $34,999 1,947 12.1% 1,417 7.8% 1,014 5.4%$35,000 - $49,999 2,861 17.8% 2,429 13.4% 1,725 9.1%$50,000 - $74,999 4,441 27.7% 4,232 23.3% 4,452 23.6%$75,000 - $99,999 1,980 12.3% 3,323 18.3% 3,183 16.9%$100,000 - $149,999 1,517 9.5% 3,445 19.0% 5,152 27.3%$150,000 - $199,999 300 1.9% 665 3.7% 1,059 5.6%$200,000+ 287 1.8% 540 3.0% 681 3.6%



0 - 4 2,764 6.7% 3,039 6.8% 3,058 6.6%5 - 9 2,878 6.9% 2,961 6.6% 3,057 6.6%10 - 14 3,092 7.5% 2,913 6.5% 3,067 6.6%15 - 19 2,916 7.0% 2,736 6.1% 2,722 5.9%20 - 24 2,180 5.3% 2,417 5.4% 2,339 5.0%25 - 34 5,649 13.6% 6,001 13.3% 6,235 13.4%35 - 44 6,878 16.6% 6,252 13.9% 6,248 13.5%45 - 54 5,745 13.9% 6,796 15.1% 6,524 14.0%55 - 64 3,546 8.6% 5,393 12.0% 5,795 12.5%65 - 74 2,629 6.3% 3,060 6.8% 3,969 8.5%75 - 84 2,219 5.4% 2,076 4.6% 2,076 4.5%85+ 968 2.3% 1,350 3.0% 1,345 2.9%


White Alone 40,532 97.8% 43,249 96.1% 44,373 95.6%Black Alone 110 0.3% 344 0.8% 415 0.9%American Indian Alone 144 0.3% 187 0.4% 201 0.4%Asian Alone 172 0.4% 332 0.7% 405 0.9%Pacific Islander Alone 8 0.0% 8 0.0% 8 0.0%Some Other Race Alone 199 0.5% 377 0.8% 441 1.0%Two or More Races 296 0.7% 498 1.1% 594 1.3%Hispanic Origin (Any Race) 636 1.5% 1,237 2.7% 1,571 3.4%


June 24, 2011



Walgreens Pharmacy Milwaukee Metro

Documents

Transcript of Walgreens Pharmacy Milwaukee Metro