BENA Capital is pleased to announce the Premier Fund’s first acquisition of a 9,014 sq ft stand-alone single tenant retail site tenanted with Dollar General located in Hornell, NY. The property was built in 2005 specifically for Dollar General, which has been a tenant continuously since construction. Dollar General renewed their lease for an additional 5-year term expiring June 2025, with three subsequent 5-year options, showing a strong commitment to the site.

Since Dollar General is an essential business, it has done well during the COVID-19 pandemic and continues to be one of the few retailers to remain open for people to buy groceries and daily supplies during these trying times. Dollar General Corp has announced that they will pay front-line employees to get the COVID-19 vaccine, making it one of the first U.S. companies to incentivize its workers to get immunized.

Dollar General is one of the most sought after tenants for retail sites such as this. It is publicly traded (NYSE: DG), is a growing business, and provides a corporate guarantee to its lease. It just crossed 17,000 stores in operation in November 2020,and in 2019, DG opened 975 new stores, remodeled 1,024 stores and relocated 100 stores. Its business is also strong with same store sales increasing 3.9% and net sales increasing 8.3% to $27.8 billion. Operating profit increased 8.8% to $2.3 billion, net income grew to $1.7 billion, and diluted earnings per share increased 11.2% to $6.64. Cash flows from operations were $2.2 billion, and DG returned $1.5 billion to shareholders through share repurchases and dividends.

Three-quarters of U.S. residents now live within five miles of a Dollar General store. DG also shows strength in weak economic environments, providing downside risk protection during recessions. As such, BENA Capital is excited for this first acquisition for the fund in providing reliable cash flows and long-term price appreciation.