Independent Tenant Credit Risk Analysis
Independent tenant credit analysis for net lease investors, like REITs, private equity firms, commercial real estate owners, and brokers.
Evaluate tenant credit risk across public and private companies, particularly where conventional ratings are unavailable or don’t tell the full story.
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THE CREDIT GAP
For private and unrated tenants, the credit view often relies on financial information that may be unaudited, incomplete, inconsistent, or unavailable, supplemented by standardized qualitative inputs. Public-company ratings can provide a useful starting point, but they do not always address the credit considerations specific to a particular lease.
Established starting point
▪ Rated issuer or issuance(s)
▪ Publicly filed financials
▪ Market and earnings disclosures
Ratings and public information can inform the analysis but may not answer lease-specific credit questions.
DEEPER ANALYSIS REQUIRED
▪ Financial statements
▪ Legal entity and ownership
▪ Transaction type — acquisition/sale, lease event, SLB, etc.
▪ Lease obligor and guarantor
▪ Industry context and company developments
When no conventional rating exists, the credit view is built from the underlying financial and company information.
An independent view of the credit risk supporting the lease, whether the tenant is public or private.
When Alphaporting Helps
ACQUISITION
Assess the tenant strength behind the lease as part of acquisition underwriting and diligence.
Leasing
Evaluate credit when negotiating a new lease or restructuring.
Portfolio Management
Reassess tenant credit in a portfolio context, standardized risk qualification for investor reporting, or other ongoing asset-management decisions.
Monitoring
Track material quantitative and qualitative parameters, company, industry, or rating developments that may change the credit picture and warrant a closer look (horizontal & vertical).
Actionable Credit Insight
Credit analysis can affect how a transaction is priced, structured and protected, not simply whether the tenant passes or fails.
Probability of Default + Key Credit Considerations
Credit findings can provide valuable insights for price negotiations, helping establish a risk-adjusted transaction price.
Tenant credit strength may influence the need for security deposits, guarantees, letters of credit, or other protections.
A tenant's risk profile can guide the type and frequency of financial information required throughout the lease term.
Credit considerations may influence lease structure through duration, renewal rights, rent mechanics, and other negotiated provisions.
The Deliverable
An independent assessment focused on the credit questions that matter to the lease and the transaction.
The exact scope can vary with the tenant, available information and the decision being evaluated.
▪ Credit view
The overall assessment of the tenant’s credit profile, financial capacity, and default risk.
▪ Key drivers
Standardized financial, business, ownership, and industry factors materially supporting or weakening that assessment.
▪ Credit concerns
The risks, vulnerabilities, or developments that warrant particular attention (e.g. event risks) or ongoing monitoring.
▪ Transaction considerations
Credit-related factors that may inform pricing, lease structure, protections, reporting requirements, or other negotiated terms.
The Analysis
Alphaporting focuses on the information that materially affects tenant credit risk and distills complex analysis into a clear credit view.
The objective isn’t a larger report. It’s clarity about what matters to the decision.
The analysis brings together
01
Financials
Performance, liquidity, leverage, and cash flow.
02
Company & Ownership
Business model, ownership, counterparties, trends, and operating profile.
03
Industry Context
Sector dynamics, competitive position, and relevant external developments.
04
Credit Judgment
Independent synthesis of the factors shaping the tenant’s credit profile and default risk.
The Result
A concise perspective on the tenant’s ability to meet its lease obligations.
How Clients Use Alphaporting
FLEXIBLE CREDIT SUPPORT
Bring in Alphaporting for tenant credit work when needed.
OVERFLOW CAPACITY
Scale support during acquisition cycles, leasing activity, or periods of elevated workload.
SECOND OPINION
Consider a separate perspective to difficult, unusual, or judgment-intensive tenant situations.
BROKER SUPPORT
Help clients understand tenant risk, anticipate credit questions, and communicate the credit story more clearly.Engage Alphaporting transaction by transaction, or as a flexible extension of your credit function.
Founder
Johannes Schmidt leads Alphaporting’s tenant credit work, bringing institutional credit-risk experience to commercial real estate decisions. As the founder, he remains directly involved in each engagement, combining rigorous analysis with practical judgment.
Credit Risk
Institutional credit-risk experience at Deutsche Bank, including corporate credit assessment and lending structures.
Commercial Real Estate
Experience at Newmark applying corporate credit analysis to commercial real estate investment decisions.
Investment Perspective
Experience spanning banking, investment management and commercial real estate.
Founder-Led
Direct senior involvement in the analysis, focused on the issues most relevant to the decision.
Research + Perspective
Risk & Investment
May 2025
Independent Credit View
Get an independent view of the credit risk behind the lease.
