CVS recently reported an increase of $24.4 billion in revenue for 2021, an increase of over 8.7% from 2020. While front store sales have declined over the last few years, CVS reported a huge $8.9 billion growth increase in retail sales, of which 45% can be attributed to Covid vaccines and testing. With 55% of the revenue not (directly) tied to Covid, it is clear that CVS has generated new and repeat customers during the pandemic.

Over the last year, ACA has sold 24 CVS stores with remaining lease terms ranging from 1 to 19 years. The CVS market has attracted a diverse buyer pool including REITs, private funds, and individual investors. This has created additional competition for these assets which has in turn driven cap rates down.

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