Walgreens Boots Alliance Walgreens Boots Alliance (Nasdaq: WBA) Is the First Global Pharmacy-Led, Health and Wellbeing Enterprise

Affluent Community -- $109,539 Avg HH Income

Walgreens Pharmacy #10750 Affluent Upstate New York

• True NNN lease with 14 years guaranteed rent $5,650,000 • 12 miles north of Syracuse University • Affluent community with $109,539 Average Household Income 6.00% • True hard corner location with easy access • No CVS in town; parking lot busier than Rite Aid CAP Rate • Modern prototype design with drive-thru • Full guarantee by Walgreens corporation

John Giordani Art Griffith DeerfieldPartners (888) 258-7605 [email protected] Walgreens Pharmacy #10750 Cicero, New York

Investment Summary Price $5,650,000 1 Mile 3 Mile 5 Mile CAP Rate 6.00% Population Annual Income $339,000 7,546 26,523 53,673 Years Guaranteed 14 years NNN Avg. HH Income $109,539 $95,774 $88,684

This modern prototype, freestanding Walgreens with drive-thru is well positioned on the true hard corner of Highway 31 and Thompson Road, just 12 miles north of Syracuse University. The four-way intersection is really “Main and Main” in the affluent town of Cicero. Walgreens is located caddy-corner to Rite Aid here, but the Walgreens parking lot is clearly busier than the Rite Aid. This is a small town, where Walgreens serves as “the corner store” as much as a pharmacy. New Walgreens leases are only 15 years guaranteed.

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

Property Details and Lease Summary Address 6189 State Route 31, Cicero, NY 13039 Year Built 2007 Building Size 14,748 Square Feet Lot Size 1.29 acres Tenant Walgreens (NASDAQ:WBA) Lease Start Date August 6, 2007 Lease End Date August 31, 2082 Termination Options Tenant may terminate as of 8/31/2032, with at least six (6) months prior written notice. (ROFR is 20 days)

Prototypical Storefront with Drive-Thru

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

About Cicero, New York

The Town of Cicero, a northern suburb of the City of Syracuse, is located in the northeast corner of Onondaga County and includes the eastern half of the Village of North Syracuse.

According to the United States Census Bureau, the town has a total area of 48.5 square miles. The north town line of Cicero, marked by the Oneida River, is the border of Oswego County. The east town line is the border of Madison County, marked by the Chittenango Creek.The population was 31,632 at the 2010 census.

At the Northern border of Cicero is Oneida Lake, one of the largest bodies of water located within New York State. Also within Cicero is a fairly large swamp named Cicero Swamp. Cicero consists of mainly wetland, forests, farms and a large and growing number of housing developments.

U.S. Route 11, Interstate 81, Interstate 481, and New York State Route 31 pass through Cicero. New York State Route 298 intersects NY-31 near the east town line. Michael Airfield, a single runway general aviation airport, is located within Cicero. The reconstructed Erie Canal follows the Oneida River along the north town line.

History of Cicero, New York

The original township of Cicero, named after the great Roman orator Marcus Tullius Cicero, included both the towns of Cicero and Clay. It was part of the great military tract that was surveyed in 1790 into 100 lots, each containing about 600 acres. These lots were reserved or drawn by soldiers for services in the Revolutionary War. The only soldier to become an actual resident in the Town of Cicero was Captain John Shepard. In 1827 the township was divided with the Town of Cicero having 50 lots – about 29,000 acres of land.

The first settler in Cicero was John Leach. His home, a log cabin, was located on the site of the old Legion Hall. The village was called Cody’s Corner until 1820. Isaac Cody ran a tavern, which was located on the southwest corner of Crabtree Lane and Route 11. Cody was the first Postmaster and his wife operated the first store. She used the barter system and brought goods from New York City by wagon. The building of the Erie Canal brought many settlers to this area. It was also used extensively to ship salt. The salt industry provided many people with jobs, either making barrels or in furnishing lumber. The business declined in the 1890s, while farming and the dairy industry became important. Cheese factories were built, including one right in the village along with a flour mill, stave and lumber mill, canning factory, wagon and carriage factory.

The present Route 11 was for many years a series of Indian trails north and south through Cicero from Pennsylvania to the Thousand Islands. Part of it was called the Salt Road in 1812. In 1846 the first toll plank road in the United States was built. It was 16.5 miles long and went from Central Square to Syracuse right through Cicero. The stage was the only means of transportation until replaced by the trolley line built in 1909. The trolley to South Bay brought prosperity to the area around Oneida Lake, and the hotel business flourished. Regular excursion boats met the trolley for trips around the lake. Frenchman’s Island was a popular vacation spot. The trolley was used until 1932. The tracks were torn up and South Bay Road built over the same route.

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

Regional Map

Distances to Nearby Cities

Syracuse, NY 10 miles

Rochester, NY 91 miles

Buffalo, NY 156 miles

New York, NY 258 miles

Boston, MA 311 miles

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

Corner Aerial for Site Orientation

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

About Walgreens Boots Alliance Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise. The Company’s heritage of trusted healthcare services through community pharmacy care and pharmaceutical wholesaling dates back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the U.S. and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25* countries and employ more than 385,000* people. The Company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has more than 13,200* stores in 11* countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with more than 390* distribution centers delivering to more than 230,000** pharmacies, doctors, health centers and hospitals each year in more than 20* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products. The Company’s size, scale, and expertise will help us to expand the supply of, and address the rising cost of, prescription drugs in the U.S. and worldwide.

Walgreens Boots Alliance is included in Fortune magazine’s 2018 list of the World’s Most Admired Companies. This is the 25th consecutive year that Walgreens Boots Alliance or its predecessor company, Walgreen Co., has been named to the list.

* As of 31 August 2017, using publicly available information for AmerisourceBergen. **For 12 months ending 31 August 2017, using publicly available information for AmerisourceBergen.

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

Walgreens Income Statements Trailing 5 Years

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

WalgreensWalgreens Boots Alliance Boots Alliance-- Segment – Segment Structure Structure

A leading global A leading drugstore chain The largest retail pharmacy pharmaceutical wholesaler in the USA chain in Europe and distributor

The first global pharmacy-led, health and wellbeing enterprise in the world

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

Walgreens Boots Alliance -- Retail Pharmacy USA Division Our Retail Pharmacy USA Division’s principal retail pharmacy brands are Walgreens and Duane Reade. Together, they form one of the largest drugstore chains in the U.S., operating 8,100* drugstores in 50* states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. As of August 2017, approximately 76 percent of the population of the U.S. lives within five miles of a Walgreens or Duane Reade.

We sell prescription and non-prescription drugs, as well as general merchandise, including household items, convenience and fresh foods, personal care, beauty care, photofinishing and candy. We offer our products and services through drugstores, as well as through mail, telephone and online. We also provide specialty pharmacy and respiratory services, and operate retail clinics.

Our services help improve health outcomes for patients and manage costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Our stores sell branded and own brand general merchandise. In addition, Walgreens has approximately 400 in-store clinic locations throughout the U.S., some of which are operated by the Company and some of which are operated by health system partners.

Prescription drugs account for 69 percent† of sales, while retail products are 31 percent.

Overall, we filled approximately 764 million† prescriptions in fiscal 2017. Adjusted to 30-day equivalents, we filled approximately 990 million† prescriptions in fiscal 2017. Third party sales, where reimbursement is received from managed care organizations, government and private insurance, were approximately 98 percent† of prescription sales.

We utilize our extensive retail network as a channel to provide affordable quality health and wellness services to our customers and patients, as illustrated by our ability to play a significant oler in providing flu vaccines and other immunizations.

We have more than 78,000* healthcare service providers, including pharmacists, pharmacy technicians, nurse practitioners and other health related professionals. Through them we expect to continue to play a growing role in government and employer efforts to control escalating healthcare costs.

Our loyalty program, Balance® Rewards, is designed to reward our most valuable customers and encourage shopping in stores and online and allows customers the opportunity to earn points for purchasing select merchandise in addition to receiving special pricing on select products when shopping with a rewards card. Customers have the ability to instantly redeem rewards at our stores or through Walgreens.com. We had 88 million Balance® Rewards active members as of August 2017.

The Division’s strategy is designed to further transform our traditional drugstore by offering ultimate convenience, driving the best customer loyalty and delivering extraordinary customer and patient care. We seek to expand our product and service offerings across new channels and markets where, in addition to our stores, customers and patients can utilize our health system pharmacies, Walgreens.com, mobile applications and social media sites.

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

Walgreens Drugstores Nationwide by State

John Giordani Art Griffith Call: (888) 258-7605 DeerfieldPartners Email: [email protected] Walgreens Pharmacy #10750 Cicero, New York

Demographics - 1 Mile Radius

Demographic and Income Profile

6189 State Route 31, Cicero, New York, 13039 Prepared by Esri Ring: 1 mile radius Latitude: 43.17667 Longitude: -76.09309

Trends 2018-2023 ) t

n 2.5 e c r e 2 p

n i ( 1.5 e t a R

l 1 a

u Area n 0.5 State A n USA 0 Population Households Families Owner HHs Median HH Income

Population by Age 16

t 10 n e c

r 8 e P 6

4 2018 2 2023

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

2018 Household Income 2018 Population by Race

$50K - $74K 90 15.5% $35K - $49K 8.3% 80 $25K - $34K 5.2% 70 $75K - $99K $15K - $24K 15.7% 3.7% 60

<$15K t n

3.1% e 50 c r e

P 40

$200K+ 30 7.7% 20

$150K - $199K 10 $100K - $149K 10.4% 30.4% 0 White Black Am. Ind. Asian Pacific Other Two+

2018 Percent Hispanic Origin: 2.3%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

Demographics - 1 Mile Radius

Demographic and Income Profile

6189 State Route 31, Cicero, New York, 13039 Prepared by Esri Ring: 1 mile radius Latitude: 43.17667 Longitude: -76.09309

Summary Census 2010 2018 2023 Population 7,398 7,546 7,610 Households 2,662 2,704 2,722 Families 2,031 2,045 2,052 Average Household Size 2.78 2.79 2.80 Owner Occupied Housing Units 2,411 2,457 2,504 Renter Occupied Housing Units 251 248 218 Median Age 37.9 39.3 39.8 Trends: 2018 - 2023 Annual Rate Area State National Population 0.17% 0.38% 0.83% Households 0.13% 0.33% 0.79% Families 0.07% 0.21% 0.71% Owner HHs 0.38% 0.92% 1.16% Median Household Income 1.44% 2.99% 2.50% 2018 2023 Households by Income Number Percent Number Percent <$15,000 83 3.1% 75 2.8% $15,000 - $24,999 100 3.7% 86 3.2% $25,000 - $34,999 140 5.2% 120 4.4% $35,000 - $49,999 225 8.3% 198 7.3% $50,000 - $74,999 420 15.5% 367 13.5% $75,000 - $99,999 425 15.7% 395 14.5% $100,000 - $149,999 821 30.4% 854 31.4% $150,000 - $199,999 281 10.4% 338 12.4% $200,000+ 209 7.7% 289 10.6%

Median Household Income $96,894 $104,067 Average Household Income $109,539 $126,725 Per Capita Income $39,919 $46,138 Census 2010 2018 2023 Population by Age Number Percent Number Percent Number Percent 0 - 4 451 6.1% 430 5.7% 426 5.6% 5 - 9 557 7.5% 476 6.3% 462 6.1% 10 - 14 660 8.9% 539 7.1% 516 6.8% 15 - 19 573 7.7% 515 6.8% 470 6.2% 20 - 24 330 4.5% 444 5.9% 356 4.7% 25 - 34 791 10.7% 945 12.5% 1,052 13.8% 35 - 44 1,237 16.7% 1,000 13.3% 1,048 13.8% 45 - 54 1,345 18.2% 1,228 16.3% 1,076 14.1% 55 - 64 823 11.1% 1,056 14.0% 1,077 14.2% 65 - 74 382 5.2% 590 7.8% 708 9.3% 75 - 84 192 2.6% 244 3.2% 327 4.3% 85+ 55 0.7% 80 1.1% 92 1.2% Census 2010 2018 2023 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 7,020 94.9% 7,062 93.6% 7,025 92.3% Black Alone 134 1.8% 164 2.2% 188 2.5% American Indian Alone 14 0.2% 15 0.2% 15 0.2% Asian Alone 100 1.4% 137 1.8% 177 2.3% Pacific Islander Alone 5 0.1% 8 0.1% 10 0.1% Some Other Race Alone 24 0.3% 29 0.4% 34 0.4% Two or More Races 99 1.3% 131 1.7% 161 2.1%

Hispanic Origin (Any Race) 126 1.7% 170 2.3% 216 2.8% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

August 15, 2018

Demographics - 3 Mile Radius

Demographic and Income Profile

6189 State Route 31, Cicero, New York, 13039 Prepared by Esri Ring: 3 mile radius Latitude: 43.17667 Longitude: -76.09309

Trends 2018-2023 ) t

n 2.5 e c r

e 2 p

n i ( 1.5 e t a R

l 1 a

u Area n 0.5 State A n USA 0 Population Households Families Owner HHs Median HH Income

Population by Age

10 t n e

c 8 r e

P 6

4 2018 2 2023

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

2018 Household Income 2018 Population by Race $35K - $49K 90 10.6% 80 $50K - $74K $25K - $34K 18.2% 6.8% 70 $15K - $24K 5.4% 60 <$15K t

5.0% n 50 e c r

e 40 P $200K+ $75K - $99K 5.4% 30 15.3% 20 $150K - $199K 9.6% 10

$100K - $149K 0 23.6% White Black Am. Ind. Asian Pacific Other Two+

2018 Percent Hispanic Origin: 2.7%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

Demographics - 3 Mile Radius

Demographic and Income Profile

6189 State Route 31, Cicero, New York, 13039 Prepared by Esri Ring: 3 mile radius Latitude: 43.17667 Longitude: -76.09309

Summary Census 2010 2018 2023 Population 26,323 26,523 26,635 Households 9,807 9,860 9,884 Families 7,261 7,231 7,223 Average Household Size 2.68 2.69 2.69 Owner Occupied Housing Units 8,372 8,450 8,605 Renter Occupied Housing Units 1,435 1,411 1,279 Median Age 38.6 40.1 41.0 Trends: 2018 - 2023 Annual Rate Area State National Population 0.08% 0.38% 0.83% Households 0.05% 0.33% 0.79% Families -0.02% 0.21% 0.71% Owner HHs 0.36% 0.92% 1.16% Median Household Income 2.08% 2.99% 2.50% 2018 2023 Households by Income Number Percent Number Percent <$15,000 496 5.0% 443 4.5% $15,000 - $24,999 533 5.4% 452 4.6% $25,000 - $34,999 674 6.8% 594 6.0% $35,000 - $49,999 1,047 10.6% 948 9.6% $50,000 - $74,999 1,797 18.2% 1,620 16.4% $75,000 - $99,999 1,505 15.3% 1,433 14.5% $100,000 - $149,999 2,327 23.6% 2,480 25.1% $150,000 - $199,999 950 9.6% 1,165 11.8% $200,000+ 532 5.4% 748 7.6%

Median Household Income $80,014 $88,702 Average Household Income $95,774 $111,059 Per Capita Income $35,814 $41,456 Census 2010 2018 2023 Population by Age Number Percent Number Percent Number Percent 0 - 4 1,696 6.4% 1,567 5.9% 1,518 5.7% 5 - 9 1,901 7.2% 1,711 6.5% 1,625 6.1% 10 - 14 2,098 8.0% 1,846 7.0% 1,807 6.8% 15 - 19 1,893 7.2% 1,680 6.3% 1,653 6.2% 20 - 24 1,165 4.4% 1,472 5.5% 1,224 4.6% 25 - 34 3,053 11.6% 3,212 12.1% 3,392 12.7% 35 - 44 4,158 15.8% 3,472 13.1% 3,511 13.2% 45 - 54 4,471 17.0% 4,112 15.5% 3,616 13.6% 55 - 64 3,122 11.9% 3,659 13.8% 3,779 14.2% 65 - 74 1,640 6.2% 2,397 9.0% 2,732 10.3% 75 - 84 849 3.2% 1,028 3.9% 1,384 5.2% 85+ 277 1.1% 368 1.4% 393 1.5% Census 2010 2018 2023 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 24,341 92.5% 23,980 90.4% 23,613 88.7% Black Alone 868 3.3% 1,046 3.9% 1,183 4.4% American Indian Alone 91 0.3% 100 0.4% 108 0.4% Asian Alone 452 1.7% 641 2.4% 817 3.1% Pacific Islander Alone 15 0.1% 22 0.1% 27 0.1% Some Other Race Alone 137 0.5% 181 0.7% 219 0.8% Two or More Races 419 1.6% 554 2.1% 668 2.5%

Hispanic Origin (Any Race) 511 1.9% 704 2.7% 885 3.3% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

August 15, 2018

Demographics - 5 Mile Radius

Demographic and Income Profile

6189 State Route 31, Cicero, New York, 13039 Prepared by Esri Ring: 5 mile radius Latitude: 43.17667 Longitude: -76.09309

Trends 2018-2023 ) t

n 2.5 e c r e 2 p

n i ( 1.5 e t a R

l 1 a

u Area n 0.5 State A n USA 0 Population Households Families Owner HHs Median HH Income

Population by Age

10 t n

e 8 c r e

P 6

4 2018 2 2023

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

2018 Household Income 2018 Population by Race 90 $35K - $49K 11.6% $25K - $34K 8.1% 80 $15K - $24K 6.5% 70 $50K - $74K 18.3% <$15K 60

7.2% t n

e 50 c r

e 40 P $200K+ 5.1% 30

$75K - $99K $150K - $199K 20 15.4% 7.6% 10

$100K - $149K 0 20.3% White Black Am. Ind. Asian Pacific Other Two+

2018 Percent Hispanic Origin: 2.7%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023. John Giordani August 15, 2018

Demographics - 5 Mile Radius

Demographic and Income Profile

6189 State Route 31, Cicero, New York, 13039 Prepared by Esri Ring: 5 mile radius Latitude: 43.17667 Longitude: -76.09309

Summary Census 2010 2018 2023 Population 52,887 53,673 54,093 Households 20,703 20,979 21,109 Families 14,554 14,597 14,633 Average Household Size 2.55 2.56 2.56 Owner Occupied Housing Units 16,750 17,068 17,547 Renter Occupied Housing Units 3,953 3,910 3,562 Median Age 39.5 41.0 41.7 Trends: 2018 - 2023 Annual Rate Area State National Population 0.16% 0.38% 0.83% Households 0.12% 0.33% 0.79% Families 0.05% 0.21% 0.71% Owner HHs 0.56% 0.92% 1.16% Median Household Income 2.13% 2.99% 2.50% 2018 2023 Households by Income Number Percent Number Percent <$15,000 1,505 7.2% 1,360 6.4% $15,000 - $24,999 1,363 6.5% 1,160 5.5% $25,000 - $34,999 1,706 8.1% 1,519 7.2% $35,000 - $49,999 2,425 11.6% 2,218 10.5% $50,000 - $74,999 3,831 18.3% 3,512 16.6% $75,000 - $99,999 3,230 15.4% 3,149 14.9% $100,000 - $149,999 4,255 20.3% 4,649 22.0% $150,000 - $199,999 1,584 7.6% 1,980 9.4% $200,000+ 1,080 5.1% 1,561 7.4%

Median Household Income $71,931 $79,912 Average Household Income $88,684 $103,787 Per Capita Income $34,676 $40,514 Census 2010 2018 2023 Population by Age Number Percent Number Percent Number Percent 0 - 4 3,285 6.2% 3,047 5.7% 2,984 5.5% 5 - 9 3,571 6.8% 3,315 6.2% 3,182 5.9% 10 - 14 3,863 7.3% 3,547 6.6% 3,522 6.5% 15 - 19 3,647 6.9% 3,218 6.0% 3,251 6.0% 20 - 24 2,572 4.9% 2,931 5.5% 2,486 4.6% 25 - 34 6,201 11.7% 6,637 12.4% 6,901 12.8% 35 - 44 7,923 15.0% 6,842 12.7% 7,052 13.0% 45 - 54 8,783 16.6% 8,037 15.0% 7,107 13.1% 55 - 64 6,445 12.2% 7,651 14.3% 7,713 14.3% 65 - 74 3,611 6.8% 5,071 9.4% 5,888 10.9% 75 - 84 2,197 4.2% 2,379 4.4% 2,995 5.5% 85+ 787 1.5% 998 1.9% 1,012 1.9% Census 2010 2018 2023 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 49,216 93.1% 48,898 91.1% 48,373 89.4% Black Alone 1,458 2.8% 1,768 3.3% 2,008 3.7% American Indian Alone 224 0.4% 255 0.5% 277 0.5% Asian Alone 815 1.5% 1,171 2.2% 1,501 2.8% Pacific Islander Alone 22 0.0% 30 0.1% 37 0.1% Some Other Race Alone 266 0.5% 361 0.7% 446 0.8% Two or More Races 885 1.7% 1,190 2.2% 1,450 2.7%

Hispanic Origin (Any Race) 1,026 1.9% 1,440 2.7% 1,834 3.4% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

August 15, 2018