Net lease glossary
Credit Tenant Lease (CTL)
A lease to a creditworthy tenant, typically financed with a loan sized primarily on the tenant's credit and the rent stream rather than on property value.
Credit tenant lease financing is a loan secured by a net leased property and underwritten largely on the tenant's credit rating and the lease cash flow. Loans are often structured to fully amortize over the lease term, sometimes reaching very high loan-to-value ratios for strong, bondable leases. CTL lenders usually require an absolute or near-absolute net lease, and may require insurance policies covering landlord risks such as casualty or condemnation.