Spirit’s approach to credit and underwriting has remained consistent, while our focus has become refined based on our time-tested strategy.

Our credit and underwriting team conducts in-depth research and analysis to support Spirit’s investment policy. We analyze several credit risk factors including financial statements, unit-level economics, corporate credit, real estate fundamentals, property and environmental risk, along with several other risk factors. Our bottom-up approach begins with analyzing unit-level profitability: 

Unit-level Profitability.  

Property-level cash flows are the primary source of repayment and a key measure of risk, both in terms of default probability and long-term real estate value; if units are profitable, the likelihood of default or relocation is minimized.

Real Estate Fundamentals.

We evaluate and monitor value by assessing if new acquisition rents and purchase price are at or below market rent and replacement costs. We focus on operationally essential real estate which minimizes a tenant’s decision to relocate from “profitable” locations, especially if replacement cost and rent increases significantly. 

Industry Expertise.

We evaluate past performance to understand future industry trends, in addition to utilizing our time-tested strategy and expertise of understanding the risk profiles of each sector.

Corporate Credit.

Our team performs credit reviews to evaluate financial flexibility and capacity to service a lease. Master lease structures enhance the credit profile.

Bill Totherow
Bill Totherow
Bill Totherow Senior Vice President, Head of Credit & Underwriting

Bill Totherow is senior vice president and head of credit and underwriting at Spirit. In this role, he is responsible for supporting Spirit’s investment policy through in-depth research and risk analysis of Spirit’s investments. In addition, Mr. Totherow serves on the company’s Investment Committee and Management Operating Committee that monitors business activities and defines company strategy. He has served in various leadership roles since joining Spirit in March 2014, including most recently as senior vice president of acquisitions and prior to that as vice president of asset management. 

Mr. Totherow is a highly-experienced executive with over 20 years in the commercial lending industry. Prior to joining Spirit, Mr. Totherow served in various leadership roles, including managing director of acquisitions at STORE Capital, principal at X Factor Consulting, vice president of business development at MainStreet Lender, and vice president at GE Capital. Mr. Totherow earned a B.S. in Finance and Accounting from the University of Arizona.