Buying high quality, income-producing properties is a key factor in creating a diversified portfolio
of mission critical real estate assets. In addition, executing on a disciplined leasing strategy with
creditworthy tenants is also critically important to the long-term success of the portfolio. CVMC REIT
II intends to employ a long-term, net lease strategy in order to help mitigate risk, provide greater
certainty of rental income and maximize value for fund shareholders.1
A “net lease” is a lease structure that generally passes responsibility and expense risk of taxes,
insurance and common area maintenance to the tenant which helps provide a more predictable
rental income stream over time.
Long Term Leases
Long term leases (expected to average approximately 10+ years) help provide stable rental
income over time and also help mitigate cyclical market risk by reducing the need to reset lease
CVMC REIT II is focused on acquiring properties leased to established, creditworthy tenants with
high operating incomes which we believe will help provide greater certainty of lease payments and
more stabilized occupancy over time.
Contractual Rent Escalators
Contractual rent escalators are generally built into the lease structure such that a tenant’s rent will
increase by a certain percentage each year, thus providing greater income to CVMC REIT II as time
goes on, as well as a hedge against potential inflation.