First Oxford Corporation monitors and expects strict compliance by its tenants with their Lease obligations.   Additionally, we look at both internal and external factors that could affect the financial performance of each property. The Company reviews, on a periodic basis, the financial statements of each of its tenants.  We also believe regular physical inspections of the condition and maintenance of our properties is a critical element of success. Finally, First Oxford monitors real estate market conditions, including market rents and occupancy trends in the area where its properties are located. We endeavor to respond to changes in market conditions as appropriate, including negotiating a lease term extension or selling the property subject to the existing lease.

First Oxford’s leases are typically triple net with tenants responsible for all operating and capital expenses relating to the properties they occupy, including real estate taxes, utilities, insurance, maintenance and capital improvement. As a result, our operating costs are lower than would be the case if it invested in net lease properties.

Consistent with our investment policies, First Oxford employs leverage, when financially prudent, in connection with funding/purchase transactions and acquiring net leased properties. By borrowing on favorable terms, First Oxford believes it will provide a net return above the cost of the debt.

First Oxford consistently re-evaluate its financing policies and decreases or increases its ratio of debt to total capitalization from time to time in response to economic conditions, our relative costs of debt and equity capital, growth and acquisition opportunities and other facts and circumstances.