Trustmark sold bank branch properties to Blue Owl for $91.7 million and leased them back for continued banking operations, with annual rent starting at $6.4 million. Investors also have to weigh an approximately $61.5 million pre-tax gain against an equal securities repositioning loss, while Investment yields moved from approximately 1.4% to 5.0%.

Key Highlights

  • Annual rent under the Lease agreements starts at $6.4 million and rises by 1.5% each year.
  • The bank will keep operating the branches and will not close any branch or leave any market.
  • Trustmark sold 34 branch properties in Mississippi, Florida, Tennessee, Alabama and Texas.

TRUSTMARK CORP (NASDAQ: TRMK) sold bank branch properties to Blue Owl for $91.7 million and leased the locations back for continued branch operations. The completed sale-leaseback produced an approximately $61.5 million pre-tax gain after transaction-related expenses, while a separate securities repositioning generated an offsetting loss.

Branch Properties Move Into Long-Term Leaseback

Under the related triple net leases, annual rent begins at $6.4 million and increases by 1.5% each year during the initial term and renewal terms if exercised. Trustmark Bank will continue operating the locations, with no branch closures or market exits tied to the transaction.

Securities Repositioning Offsets Real Estate Gain

Following the property transaction, Trustmark reclassified securities held to Maturity as securities available for sale.