TENANT PROFILE JUNE 2019

Tenant Description Ever since opened its doors in Arabi, Louisiana in For marketing purposes, Popeyes will usually advertise their 1972 as “Chicken on the Run,” Popeyes has developed into New Orleans heritage, which can especially be seen around a major player in the quick service industry. Known for Mardi Gras time. With an aggressive plan to add more sites, we see Popeyes making a serious push for growth in the their spicy chicken, Popeyes currently operates over 2,700 sector. Additionally, as part of the site selection process, restaurants in the US and around the world. Popeyes is a Popeyes will look for space that can make them easy to find. subsidiary of Restaurant Brands International. Typically, Popeyes locations will come as a NNN investment, meaning the tenant will pay for all expenses including Net Lease Overview maintaining the structure allowing the owner to passively Popeyes is able to promote itself as a positive investment for receive rent income. These leases also typically incorporate a few different reasons. Developing a cult following, Popeyes rent increases to help protect against inflation. The has grown into one of the largest chicken specialty fast ownership group, Restaurant Brands International, currently restaurants in the country, with a plan to continue growing. has a credit rating of BB-, with a positive outlook.

Average Cap RatesCap Rate Over the10+ YearsPast 12 Months

7.00% Cap Rate 10+ Years

7.00%6.00% 6.08%6.07% 5.00% 5.76% 5.72%5.61% 6.00% 5.32% 5.54% 5.15% 6.08%6.07% 5.00%4.00% 5.76%5.54% 5.72%5.61% 5.15%5.32% 4.29%4.30% 4.00%3.00% 4.29%4.30% 3.00%2.00% 2.00%1.00% 1.00%0.00% Raising Cane's QSR Popeye's Chich-Fil-A 0.00% Looking at cap ratesRaising from Cane's the past 12 months,Bojangles we can see that PopeyesQSR cap rates are morePopeye's in-line with QSR sectorChich-Fil-A averages.

[email protected] CALKAIN.COM $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000TENANT PROFILE $500,000JUNE 2019 $0 Popeyes AverageBojangles' Sales Chick-Fil-APer Location KFC Church's Sales Per Restaurant Average $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Popeyes Bojangles' Chick-Fil-A KFC Church's

Sales Per Restaurant Average Popeyes locations have the third highest sales per location, showing that they are a major player in the sector.

Popeyes vs STNL Average in the Past 12 Months

6.60%

6.40% 6.41% 6.20%

6.00% 6.07% 5.80%

5.60% 5.72% 5.61% 5.40%

5.20% Cap Rates 10+ Years

Popeyes STNL Average

Popeyes deals in the past 12 months, for all sales and deals that have 10+ years remaining, possess significantly lower cap rates than the STNL Average. This demonstrates the strength of the tenant and their ability to “hold their own” in the sector.

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DISCLOSURES: As part of our market research, we collect sales price, cap rate, and lease years remaining for all publicly advertised and sold CALKAIN|Research STNL properties. a) We are not able to capture 100% of the off-market transactions that occur; however the nature of off-market typically 12930 Worldgate Dr | Suite 150 limits their value as true market comps. b) Sources include public records, sales announcements, Calkain sales, and appraiser obtained sales amongst others. c) Our collection process, while thorough, is not all encompassing and there may be biases in the data as it relates Herndon, VA 20170 to geography, tenancy, or brokers involved in the transaction. d) Public records often lag behind when transactions actually close, months in some cases. e) In sectors with a skew of greater than |2|, we have replaced the mean with the median to better describe these sectors. 703.787.4714 Consequently the data supplied here for any given quarter is likely to miss a material amount of transactions that actually closed in it.

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