Leading position in the ownership of well-located real estate leased to large franchised auto dealership groups; Tenants are among the largest and most diverse in the industry and exhibit strong rent coverage with minimal near-term lease rollover; Unique zoning and franchise characteristics can provide some stability to CARS leases; The financial profile benefits from lower leverage and secured debt levels, and a long debt tenor. The properties are single-tenant and special-purpose in nature, and leased to less creditworthy tenants; The portfolio exhibits high tenant concentration, mitigated by brand and geographic diversity; The portfolio encumbrance level remains high despite recent secured debt repayments; Debt protection measures are adequate, but improving. The ratings assigned to CARS acknowledge the company's good quality portfolio
