Medium-sized REIT in the highly fragmented and niche automotive retail real estate market; Tenants' profitability is driven mainly by providing parts, services, and financing to customers, which support strong underlying fundamentals and a cushion to the declining forecast of new vehicle sales; and The triple-net lease structure and relatively long-weighted average lease term support cash flow stability. The balance sheet will likely remain highly leveraged, with adjusted debt to EBITDA projected to be in the high-12x area for 2018 and 2019; The covenant cushion level on the first-lien leverage ratio remains somewhat thin at approximately 12%; and The rising interest rate environment can adversely affect coverage ratios since about half of the company's debt is floating rate, although there is
