Do you think the REIT is a risky investment if there is a great dependence on one key tenant such as Walmart ?
I always appreciate your insight.
WMT accounts for 25% of revenue but we do not have an income breakdown. Customer concentration can be a risk, but if you are going to have a significant customer it might as well be one of the largest and strongest retailers in the world. We would not see it as a detriment in owning the shares. The units are cheap at 11X cash flow, and it has held up better than many in the sector. Retail exposure in general is a risk, of course, but we would not worry about Walmart as a tenant.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in WMT.