Auto Parts Retail Industry Report February 2018

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1 Auto Parts Retail Industry The Auto Parts retail industry is a $58B industry, which has historically experienced single digit growth year over year. Online auto part sales accounted for $8.89 billion of this revenue in 2017, posting a 16% increase over The top market share is led by AutoZone, Advance Auto Parts and O Reilly Auto Parts. The industry has low barriers of entry, few restrictive regulations, and an easily trainable workforce. Despite low barriers, high levels of competition exist making it difficult for new operators to succeed. The market is attractive with consistent growth over the years as more vehicles continue to age and car owners are keeping their vehicles vs. purchasing new. Brick and mortar auto part retailers have been traditionally focused on two types of customer: Do it Yourself (DIY) and Do it For Me (DIFM Professional Providers). The top three companies have had competitive advantages from the threat of disruptive online retailers primarily through relationship networks with professional DIFM providers, and efficiencies with fully scaled nationwide same-day delivery. This segment has been able to capitalize on larger profits on auto parts by up-selling different warranties on aftermarket parts. Over the years, stores have had consistent growth, however last year reported flat earnings. The DIY segment is the most vulnerable for retailers. Nearly three-quarters of AutoZone s revenue comes from do it yourself clients. Advance Auto Parts and O Reilly Auto Parts have no more than half of their revenue exposed to this segment. Amazon has been targeting this market with an aggressive pricing strategy with prices 22% lower than these retailers. They have also started rolling out same-day delivery in several major cities. Long term, Amazon has the ability and capital to get closer to customers and expand into the traditional retail customer sector as it navigates to solve quick on-time parts delivery. Senior Senior

2 AutoZone AutoZone operates 6,023 stores, across 49 states. Total revenues $11,010.0 (MM), +2.7% total revenue growth and employs 87,000. Cap rates for AutoZone increased 23 basis points in 2017 to 5.79%. In 2017, the company opened 168 stores in the U.S and added 15 net stores in Q AutoZone owns approximately 48% of its stores and in recent years has moved from build-to-suit leases to ground leases and land purchases. 35 Investment Assets Currently on Market Nationally Median Asking Cap Rate 5.25% Median Asking Price $1,828,570 $249.35/SF Advance Auto Parts Advance Auto Parts operates 5,230 stores in 49 states. Total revenues $9, (MM), -1.07% total revenue growth and employs 74,000. Cap rates for Advance Auto Parts decreased 2 basis points in 2017 to 6.64%. Advance Auto Parts leases 4,373 locations and opened 47 new stores in the first three quarters of 2017, closed 18 and consolidated 15 stores. It also converted 132 Carquest stores to Advance Auto Parts stores. New stores range from 6,000 SF 8,500 SF. 72 Investment Assets Currently on Market Nationally Median Asking Cap Rate 7.25, Median Asking Price $1,385,776 $196.16/SF O Reilly Auto Parts O Reilly Auto Parts operates 5,019 stores across 47 states with total revenues $8,593.1 (MM), +7.9% total revenue growth and employs 74,715. Cap rates for O Reilly Auto Parts increased 7 basis points in 2017 to 5.93%. O Reilly Auto Parts opened 198 stores and closed 8 stores in O Reilly Auto Parts owns 1,912 stores and leased 2, Investment Assets Currently on Market Nationally Median Asking Cap Rate 5.75% Median Asking Price $1,908,150 $241.63/SF Senior Senior

3 Company Comparison AutoZone Advance Auto Parts O'Reilly Auto Parts Avg CAP Rate 5.25% (12 mo avg w/ 10+ yr Lease Term) 5.96% (12 mo avg w/ 10+ yr Lease Term) 6.15% (12 mo avg w/ 10+ yr Lease Term) Avg $ Sale $2,281,500 $2,104,535 $1,768,535 NOI $119,779 $125,430 $108,765 $/SF $280 $250-$350 $230-$250 Building SF 7,000 6,000-8,000 7,000-7,500 Lot Size Acres Acres Acres Lease Term 15 Years 5-15 Years 20 Years Escalations 10% Every 5 Years & Options Varies 6-10% Every 5 Years Credit Rating S&P BBB S&P BBB- S&P BBB+ Moody's Baa1 Moody's Baa2 Moody's Baa1 Senior Senior

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5 AUTO PARTS RETAIL REAL ESTATE SNAPSHOT Select Real Estate Sales Comps Current Sale Date Tenant City State SF Sale Price PSF Cap Rate Notes Aug-17 Advance Auto Parts Mobile AL 19,800 $3,667,548 $ % Sep-17 Advance Auto Parts Phoenix AZ 19,200 $2,660,000 $ % 1031 Exchange Jul-17 Advance Auto Parts Vero Beach FL 6,831 $2,254,540 $ % Oct-17 Advance Auto Parts Fort Myers FL 6,889 $2,250,000 $ % May-17 Advance Auto Parts Oakland Park FL 7,969 $1,665,000 $ % Jul-18 Advance Auto Parts Bogart GA 8,928 $2,200,000 $ % Feb-17 Advance Auto Parts Norcross GA 7,000 $2,083,970 $ % Sep-17 Advance Auto Parts Council Bluffs IA 11,905 $1,365,000 $ % 1031 Exchange Feb-17 Advance Auto Parts Sioux IA 6,889 $1,757,000 $ % Sep-17 Advance Auto Parts Aurora IL 7,440 $2,150,000 $ % Nov-17 Advance Auto Parts Chicago IL 61,245 $2,037,195 $ % Jan-17 Advance Auto Parts Harvard IL 7,000 $1,428,375 $ % Feb-17 Advance Auto Parts Mokena IL 6,831 $2,247,500 $ % May-17 Advance Auto Parts Normal IL 7,000 $1,200,000 $ Exchange Jan-17 Advance Auto Parts Louisville KY 5,525 $567,000 $ % Oct-17 Advance Auto Parts Paducah KY 7,478 $892,788 $ % Feb-17 Advance Auto Parts Alexandra LA 6,972 $1,500,000 $ Jul-17 Advance Auto Parts Jenison MI 7,000 $1,885,000 $ % Feb-17 Advance Auto Parts Elk River MN 4,840 $1,640,000 $ % Apr-17 Advance Auto Parts Saint Louis MO 7,600 $820,000 $ % Sep-17 Advance Auto Parts Fayetteville NC 8,658 $1,274,000 $ % Jun-17 Advance Auto Parts Williamstown NJ 6,895 $2,260,000 $ % Mar-17 Advance Auto Parts Albuquerque NM 6,889 $2,635,000 $ % Jun-17 Advance Auto Parts Valley Stream NY 10,000 $4,600,000 $ % Jan-17 Advance Auto Parts Cincinnati OH 6,720 $1,810,000 $ % Aug-17 Advance Auto Parts Dayton OH 8,000 $1,450,000 $ % May-17 Advance Auto Parts Tulsa OK 6,928 $1,917,280 $ % 1031 Exchange Feb-17 Advance Auto Parts Lionville PA 6,889 $3,336,198 $ Bulk/Portfolio Sale Jan-17 Advance Auto Parts Mount Pleasant SC 8,064 $2,557,460 $ % 1031 Exchange/Portfolio Sale Feb-17 Advance Auto Parts Smyrna TN 7,000 $1,500,000 $ Feb-17 Advance Auto Parts Austin TX 6,694 $2,450,000 $ % 1031 Exchange Mar-17 Advance Auto Parts Dallas TX 6,800 $2,957,130 $ % 1031 Exchange Sep-17 Advance Auto Parts Quinton VA 6,889 $2,092,508 $ % Aug-17 Advance Auto Parts Aylett VA 6,889 $1,975,250 $ % Apr-18 Advance Auto Parts Auburn WA 6,889 $2,683,183 $ % 1031 Exchange Feb-17 Advance Auto Parts Sheboygan WI 11,000 $1,975,000 $ % AVERAGE 8,393 $1,959,021 $ % MEDIAN 7,000 $1,933,640 $ % Sale Date Tenant City State SF Sale Price PSF Cap Rate Notes Feb-18 AutoZone Phoenix AZ 7,250 $1,350,000 $ % Jun-17 AutoZone Goodyear AZ 6,172 $1,592,000 $ % Ground Lease / Leasehold Oct-17 AutoZone Sacramento CA 9,800 $2,259,000 $ % Oct-17 AutoZone Citrus Heights CA 3,750 $1,200,000 $ % 1031 Exchange Jun-17 AutoZone Tamarac FL 6,890 $1,675,000 $ % 1031 Exchange Nov-17 AutoZone Atlanta GA 10,908 $2,800,000 $ % Aug-17 AutoZone Sioux City IA 7,000 $1,560,000 $ % 1031 Exchange Sep-17 AutoZone Gardner KS 6,840 $1,960,000 $ % Senior Senior

6 AUTO PARTS RETAIL REAL ESTATE SNAPSHOT Select Real Estate Sales Comps Current Jan-17 AutoZone Mount Pleasant MI 16,000 $1,455,000 $ % Jul-17 AutoZone Chesterfield MO 6,000 $1,250,000 $ % May-17 AutoZone Gladstone MO 7,370 $2,250,000 $ % Oct-17 AutoZone Boone NC 9,467 $3,100,000 $ % Dec-17 AutoZone Toledo OH 9,761 $1,410,000 $ % May-17 AutoZone Chesterland OH 7,370 $1,420,000 $ % Mar-17 AutoZone Folsom PA 7,000 $2,272,500 $ % Ground Lease / Leasehold Dec-17 AutoZone Irmo SC 7,556 $1,830,000 $ % Dec-17 AutoZone Aberdeen SD 6,124 $1,200,000 $ % Mar-17 AutoZone Etowah TN 6,786 $975,000 $ % May-17 AutoZone Killeen TX 6,000 $915,000 $ % Apr-17 AutoZone Channelview TX 6,486 $1,650,000 $ % Jan-18 AutoZone Clearfield UT 6,842 $2,156,000 $ % Dec-17 AutoZone Seattle WA 6,864 $2,150,000 $ % Portfolio Sale Mar-17 AutoZone Lakewood WA 5,400 $1,556,267 $ Dec-17 AutoZone Puyallup WA 6,145 $2,144,000 $ % 1031 Exchange Sale Date Tenant City State SF Sale Price PSF Cap Rate Notes Dec-17 O'Reilly Auto Parts Jonesboro AR 6,400 $760,000 $ % Dec-17 O'Reilly Auto Parts Phoenix AZ 6,500 $2,640,000 $ % Feb-17 O'Reilly Auto Parts Redding CA 6,000 $2,175,000 $ % 1031 Exchange Jul-17 O'Reilly Auto Parts Newark CA 12,384 $5,000,000 $ % Feb-17 O'Reilly Auto Parts Dublin CA 12,384 $3,000,000 $ % Nov-17 O'Reilly Auto Parts Brighton CO 6,000 $1,698,113 $ % 1031 Exchange May-17 O'Reilly Auto Parts Wheat Ridge CO 7,224 $1,560,000 $ % 1031 Exchange Sep-17 O'Reilly Auto Parts Waterbury CT 7,225 $2,485,000 $ % Mar-17 O'Reilly Auto Parts Tallahassee FL 8,241 $2,026,000 $ % Aug-17 O'Reilly Auto Parts Sarasota FL 7,000 $2,400,000 $ % May-17 O'Reilly Auto Parts Cape Coral FL 7,225 $2,000,000 $ % Feb-17 O'Reilly Auto Parts Lakeland FL 7,225 $2,098,000 $ % Oct-17 O'Reilly Auto Parts Athens GA 7,385 $1,755,000 $ % Mar-17 O'Reilly Auto Parts Macon GA 7,000 $1,470,000 $ % 1031 Exchange Aug-17 O'Reilly Auto Parts Rome GA 8,000 $935,000 $ % Jul-17 O'Reilly Auto Parts Chicago IL 20,332 $4,075,000 $ % Multi-Tenant Ctr Sep-17 O'Reilly Auto Parts Lake Zurich IL 6,000 $732,589 $ Multi-Property Sale / Allocated Sale Price May-17 O'Reilly Auto Parts Indianapolis IN 7,280 $1,525,000 $ % Debt Assumption Nov-17 O'Reilly Auto Parts Mooresville IN 7,453 $2,153,000 $ % Under Contract O'Reilly Auto Parts Alexandria KY 7,225 $1,709,000 $ % Built in 2017 Nov-17 O'Reilly Auto Parts Battle Creek MI 7,200 $1,477,073 $ % Jan-17 O'Reilly Auto Parts Saint Peters MO 6,375 $1,055,000 $ % Feb-18 O'Reilly Auto Parts Reno NV 5,744 $1,891,000 $ % 1031 Exchange Nov-17 O'Reilly Auto Parts Norwalk OH 7,225 $1,687,590 $ % Jan-17 O'Reilly Auto Parts Lexington SC 7,225 $1,910,000 $ % 1031 Exchange / Portfolio Sale Sep-17 O'Reilly Auto Parts Yankton SD 7,048 $1,365,000 $ % Sep-17 O'Reilly Auto Parts Atoka TN 6,487 $1,658,181 $ Nov-17 O'Reilly Auto Parts Knoxville TN 7,500 $1,752,260 $ % Nov-17 O'Reilly Auto Parts Houston TX 6,800 $1,545,216 $ % Mar-17 O'Reilly Auto Parts Lehi UT 7,100 $1,495,000 $ % Jul-17 O'Reilly Auto Parts Seattle WA 11,880 $3,134,000 $ % Feb-17 O'Reilly Auto Parts Everett WA 14,976 $3,250,000 $ % 1031 Exchange Nov-17 O'Reilly Auto Parts Milwaukee WI 6,600 $840,000 $ % AVERAGE 8,429 $2,022,510 $ % MEDIAN 7,225 $1,900,500 $ % Senior Senior