SIGNIFICANT CONCENTRATIONS OF CREDIT RISK

12 Months Ended

Sep. 30, 2019

Risks and Uncertainties [Abstract]

SIGNIFICANT CONCENTRATIONS OF CREDIT RISK

NOTE 5 – SIGNIFICANT CONCENTRATIONS OF CREDIT RISK

As of September 30, 2019, we had 22.3 million square feet of property, of which 10.4 million square feet, or 47%, consisting of 60 separate stand-alone leases, were leased to FedEx Corporation (FDX) and its subsidiaries, (5% to FDX and 42% to FDX subsidiaries). These properties are located in 25 different states. As of September 30, 2019, the 60 separate stand-alone leases that are leased to FDX and FDX subsidiaries had a weighted average lease maturity of 8.7 years. None of our properties are subject to a master lease or any cross-collateralization agreements. As of September 30, 2019, the only tenants that leased 5% or more of our total square footage were FDX and its subsidiaries.

The tenants that leased more than 5% of total rentable square footage as of September 30, 2019, 2018, and 2017 were as follows: 

	2019	2018	2017
FDX and Subsidiaries	47%	48%	50%
Milwaukee Electric Tool Corporation (lease commenced fiscal 2013, expanded fiscal 2016)	<5%	<5%	5%

During fiscal 2019, the only tenant that accounted for 5% or more of our rental and reimbursement revenue was FDX (including its subsidiaries). Our rental and reimbursement revenue from FDX and its subsidiaries for the fiscal years ended September 30, 2019, 2018 and 2017, respectively, totaled $94.9 million, $80.7 million and $68.2 million, or as a percentage of total rent and reimbursement revenues, 60% (5% from FDX and 55% from FDX subsidiaries), 58% (7% from FDX and 51% from FDX subsidiaries) and 59% (7% from FDX and 52% from FDX subsidiaries). No other tenant accounted for 5% or more of our total Rental and Reimbursement revenue for the fiscal years ended September 30, 2019, 2018 and 2017.

As noted previously, subsequent to fiscal yearend 2019, on October 10, 2019, we purchased a newly constructed 616,000 square foot industrial building, net-leased to Amazon.com Services, Inc. which is guaranteed by Amazon.com, Inc. As a result of this recent purchase, we currently we have 22.9 million total leasable square feet, of which 1.4 million square feet, or 6% of our total leasable square feet, consisting of four separate stand-alone leases are leased to Amazon.com Services, Inc. These properties are located in four different states. We estimate that our rental and reimbursement revenue from Amazon.com Services, Inc. will be approximately 7% of our total rent and reimbursement revenues in fiscal 2020.