Aaron’s

Aaron’s, Inc. operates an omnichannel provider of lease-purchase solutions. It operates through five segments: Sales and Lease Ownership, Progressive, DAMI, Franchise, and Manufacturing. The company engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories. As of February 17, 2017, it operated approximately 1,860 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform.

Aaron’s, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia. The company focuses on leases and retail sales of furniture, electronics, appliances, and computers. In 2014, Aaron’s completed the acquisition Progressive Finance, increasing their market share in both the traditional rent-to-own (RTO) industry and the emerging virtual rent-to-own (RTO) space. The acquisition supports the Company’s strategy to address credit-challenged customers’ changing needs for acquiring home furniture, electronics and appliances as the consumer population leans more toward a multi-channel acquisition of goods and services. As of 31 December 2016, Aaron’s, Inc. has 1,864 stores: 1,165 Company-operated stores and 699 independently owned and operated franchised stores in 48 states, the District of Columbia, and Canada

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S&P Rating: N/R
Moody Rating: N/R

Typical Lease Characteristics

Lease Term: 10-15 Years Years

Lease Type: NN (Landlord responsbible for roof and structure

Lease Increases: 10% bumps every 5 Years

Lease Extensions: 2-3 (5) Year Options

Lease Guarantor: Corporate

Tenant Overview

Headquartered in Atlanta, Aaron’s, Inc. (NYSE: AAN) is a leader in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories, and currently has more than 2,000 Company-operated and franchised stores in 47 states and Canada. Progressive Leasing, a leading virtual lease-to-own company, provides lease-purchase solutions through approximately 17,000 retail locations in 46 states. Dent-A-Med, Inc. (DAMI), d/b/a the HELPcard®, provides a variety of second-look credit products that are originated through a federally insured bank. Aaron’s was founded in 1955, has been publicly traded since 1982 and owns the Aarons.com, ShopHomeSmart.com, ProgLeasing.com, and HELPcard.com brands.

Given it’s unique sales model and niche market, Aason’s Net investments remain relatively attractive despite trends in ecommerce. The NN lease structures however do pose additional risk to these investments.

Positives:

  • Public Company
  • Nationwide presence with high brand recognition
  • Unique business offering

Negatives:

  • Unique buildout and large spaces make it more challenging to re-tenant
  • Prone to Economic Pressures
  • Faces pressures from E-Commerce & Online Retailers

Market Snapshots:

On Market Ranges:

# of Properties in set: 11

Price: $195,000 - $2,708,428Average: $988,962

PPSF: $13 - $189Average: $116

Year Built: 1940 - 2014Average: 1989

CAP Rate Range: 6.00% - 10.00%Average: 7.45%

Size range: 4,400 sq ft - 17,000 sq ft Average: 8,527 sq ft

Last 12 Month Range:

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Aaron’s Company Profile

Headquarters Information

Atlanta, Georgia

Founded in 1955

Company type: Public

Stock Ticker: AAN

Sector: Rental & Leasing Services

Industry: Furniture

# of Employees: 115,000

S&P Rating: N/R
S&P Rating: N/R

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Aaron’s Stock Keys

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