Trustmark Corporation (TRMK) announced on September 3, 2026, that its wholly owned subsidiary, Trustmark Bank, has completed a sale-leaseback transaction involving 34 bank branch properties. The Bank sold the properties to entities affiliated with Blue Owl Real Estate Capital LLC for a total purchase price of $91.7 million. The properties, located in Mississippi, Florida, Tennessee, Alabama, and Texas, will be leased back by Trustmark Bank to continue operating as bank branches.
Under the terms of the transaction, Trustmark Bank entered into triple net lease agreements with Blue Owl. Each lease has an initial term of 15 years, with three consecutive renewal options of five years each. The initial aggregate annual rent payable by the Bank is $6.4 million, subject to a 1.5% annual rent escalation throughout the lease term. The company stated that no branches will be closed or markets exited as a result of this transaction.
Trustmark reported that the sale-leaseback transaction resulted in a pre-tax gain of approximately $61.5 million, after accounting for transaction-related expenses. To offset the cash proceeds from the sale, the company executed a restructuring of its investment securities portfolio. It sold approximately $629.9 million of lower-yielding investment securities with a weighted-average yield of 1.4% and purchased approximately $628.0 million of securities with a weighted-average yield of 5.0%. This portfolio adjustment resulted in a pre-tax loss of approximately $61.5 million, effectively neutralizing the gain from the real estate transaction.
