Attached files
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8-K - 8-K - VEREIT, Inc. | v765738_8k.htm |
EX-99.1 - EXHIBIT 99.1 - VEREIT, Inc. | v765738_ex99-1.htm |
American Realty Capital Properties, Inc.
Quarterly Supplemental Information
Third Quarter 2012
Table of Contents
Introductory Notes | 3 |
Company Information | 4 |
Summary of Financial Highlights | 6 |
Selected Financial Information | 7 |
Consolidated Balance Sheets | 8 |
Consolidated Statements of Operations | 9 |
Funds from Operations and Adjusted Funds from Operations | 10 |
2012 and 2013 Earnings Guidance Summary | 11 |
Dividend Summary | 12 |
Portfolio Profile | 13 |
Lease Expirations | 14 |
Tenant Diversification | 15 |
Tenant Industry Diversification | 16 |
Property Geographic Diversification | 17 |
Property Age | 18 |
Definitions | 19 |
American Realty Capital Properties, Inc.
Introductory Notes
The quarterly data and other information described in this Quarterly Supplement are as of the date this Supplement was filed or an earlier date where indicated. Future performance may not be consistent with past performance, and is subject to change with inherent risks and uncertainties.
This Quarterly Supplement contains certain statements that are the Company’s and Management’s hopes, intentions, beliefs, expectations, or projections of the future and might be considered to be forward-looking statements under Federal Securities laws. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve inherent risks and uncertainties. The Company’s actual future results may differ significantly from the matters discussed in these forward-looking statements, and we may not release revisions to these forward-looking statements to reflect changes after we have made the statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the Company’s filings with the Securities and Exchange Commission (“SEC”), including, but not limited to, the Company’s Annual Report on Form 10-K filed with the SEC, the Company’s quarterly reports on Form 10-Q filed with the SEC, as well as Company press releases filed with the SEC.
Definitions of specialized terms can be found at the end of this presentation on page 19.
3 |
American Realty Capital Properties, Inc.
Company Information
Company Profile
American Realty Capital Properties, Inc. ("ARCP" or the "Company") is a publicly traded real estate investment trust ("REIT") that acquires, owns and operates single tenant freestanding commercial properties. We are a net-leased REIT that focuses exclusively on corporate, and principally investment grade, tenants. Our diversified real estate portfolio is comprised of mostly recently constructed, modern facilities, net-leased medium-term, with primarily investment grade rated tenants. ARCP's primary goal is to provide durable, reliable income for our shareholders through the delivery of dependable monthly dividends.
We listed our common stock on The NASDAQ Capital Market under the ticker symbol “ARCP” on September 6, 2011.
Company Mission
Our mission is to preserve and protect investors' capital while providing dependable, monthly income through a professionally managed investment strategy. Our management team adheres to a strict code of industry best practices designed to align the interests of management with those of the shareholders in pursuit of several investment objectives. These objectives include:
· | Generate predictable, durable income |
· | Preserve capital |
· | Create capital appreciation potential |
· | Provide inflation protection |
Investment Strategy
We place a premium on stability of cash flow for shareholders, and accordingly focus on medium term net leases with corporate, and principally investment grade, tenants. Currently, we have less than 1% of lease expirations in our properties through 2014. We currently plan that our focus will be on expanding our portfolio of high-quality, well located net leased properties diversified by tenant, industry and geography. We also plan to continue to focus on medium term leases, acquiring properties with lease durations of 3 to 8 years, on average. We intend to pursue an investment strategy that maximizes cash flow and achieves sustainable long-term growth, in an effort to enhance total return for our shareholders.
· | Acquire single tenant, freestanding properties in strategic locations leased medium term to high quality tenants |
· | Manage the operating portfolio, including extending leases with existing tenants and re-leasing properties where a tenant may vacate |
· | Lease any potentially vacant properties to industry-leading investment grade and other creditworthy tenants (currently the portfolio is 100% occupied, excluding one property designated as held for sale as of September 30, 2012) |
· | Maximize cash flow through contractual rental growth and value-add expansion and repositioning of properties |
· | Sell properties on a selective, profitable basis, thereby mitigating exposure to certain tenants and markets |
4 |
American Realty Capital Properties, Inc.
Company Information
(Continued)
Senior Management | Board of Directors | |
Peter M. Budko, Executive Vice President and Chief Investment Officer | Nicholas S. Schorsch, Chairman and Chief Executive Officer | |
Brian S. Block, Executive Vice President and Chief Financial Officer | Edward M. Weil, Jr., President, Chief Operating Officer, Secretary, Treasurer and Director | |
Walter P. Lomax, Jr., M.D., Independent Director | ||
Robin A. Ferracone, Independent Director | ||
Leslie D. Michelson, Independent Director |
Corporate Offices and Contact Information | |
405 Park Avenue, 12th Floor | |
New York, NY 10022 | |
212-415-6500 | |
www.americanrealtycapitalproperties.com |
Trading Symbol
ARCP
Stock Exchange Listing
NASDAQ Capital Market
Transfer Agent
Computershare Trust Company, N.A.
250 Royall Street
Canton, MA 02021
800-736-3001
5 |
American Realty Capital Properties, Inc.
Summary of Financial Highlights
Third Quarter 2012
Third Quarter 2012 Operating Highlights (three months ended September 30, 2012)
The Company commenced operations in September 2011 in conjunction with the closing of its IPO. Prior to that date, ARCP did not hold any real estate properties or have any sources of income or any expenses; the only activity of the Company was limited to organizational activities.
· | Revenues: $4.9 million, representing an increase of $1.5 million, or 46%, compared to the prior quarter. |
· | Funds from operations: $1.9 million, which includes one-time net acquisition and transaction related expenses of $0.7 million. Core funds from operations (excluding the impact of acquisition and transaction related expenses) of $2.6 million, or $0.24 per share computed using weighted average basic shares outstanding (“basic”) and $0.20 per share computed using weighted average fully diluted shares outstanding (“fully diluted”). |
· | Adjusted funds from operations: $3.1 million or $0.28 per share basic and $0.24 per share fully diluted. |
· | Total dividends paid to stockholders: $2.6 million, or $0.89 per share on an annualized basis. |
The third quarter results for FFO and AFFO are in line with our expectations and previously issued guidance for the full year ending December 31, 2012. The Company also reaffirms its previously issued 2013 guidance.
Year-to-Date 2012 Operating Highlights (nine months ended September 30, 2012)
· | Revenues: $11.2 million. |
· | Funds from operations: $2.7 million, which includes one-time net acquisition and transaction related expenses of $3.0 million. Core funds from operations (excluding the impact of acquisition and transaction related expenses) of $5.7 million, or $0.67 per share basic and $0.60 per share fully diluted. |
· | Adjusted funds from operations: $6.5 million, or $0.76 per share basic and $0.69 per share fully diluted. |
· | Total dividends paid to stockholders: $5.7 million, or $0.89 per share on an annualized basis. |
Property Portfolio Highlights as of September 30, 2012
· | Operating portfolio occupancy: 100%. |
· | Investment grade tenancy: 99% based on average rental income (includes properties leased to Home Depot USA, Inc., Bimbo Bakeries USA, Inc. and Iron Mountain Information Management, Inc., which are, respectively, unrated wholly owned subsidiaries of The Home Depot, Inc., Grupo Bimbo SAB de CV, and Iron Mountain Incorporated. The Company has attributed the rating of each parent company to its wholly owned subsidiary for purposes of this discussion.) |
· | Acquisitions: Completed 36 property acquisitions for a base purchase price of $98.9 million, comprised of over 1.2 million square feet, at an average capitalization rate (annualized rental income on a straight-line basis, or annualized net operating income, divided by base purchase price) of 9.5%. Increased credit diversification by adding 8 new tenants. |
Capital Markets Activities
· | Filed a Shelf Registration: On August 1, 2012, the Company filed a $500 million universal shelf registration statement and a resale registration statement with the SEC. This $500 million universal shelf registration will enable ARCP to grow its capital base over time while providing it flexibility to issue common stock, preferred stock or equity-linked securities. The shelf was sized to reflect our current expectation of growth over the next three years. |
· | Senior secured revolving credit facility: In September 2012, ARCP exercised the credit facility’s accordion feature, increasing availability under the revolver from $75 million to $110 million. The Company anticipates increasing the credit facility to the maximum commitment of $150 million by the first quarter of 2013. |
· | Issued additional common stock: Following a follow-on offering in which $30.3 million was raised in connection with the issuance of 3.25 million shares of common stock on June 18, 2012, an additional 487,500 shares of common stock were issued on July 9, 2012, pursuant to the underwriters’ exercise of the over-allotment option, resulting in additional net proceeds of approximately $4.6 million. |
· | Issued shares of preferred convertible stock: In July 2012, the Company issued approximately 0.3 million shares of Series B convertible preferred stock to an unaffiliated third-party investor for net proceeds of approximately $3.0 million. This followed an initial issuance in May 2012 of approximately 0.5 million shares of Series A convertible preferred stock to an unaffiliated third-party investor resulting in net proceeds of approximately $6.0 million. With generally comparable terms, the Series A and Series B shares of preferred stock have liquidation preferences of $10.60 and $11.00, respectively, per share and a dividend yield of 7.0%. |
· | Filed an “At The Market” offering: In October 2012, the Company launched an “At The Market” (“ATM”) offering pursuant to which it would be able to issue up to $60 million of its common stock on a commercially reasonable basis from time to time through a syndicate of agents comprised of Deutsche Bank Securities Inc., JMP Securities LLC, Ladenburg Thalmann & Co. Inc., RBS Securities Inc. and Robert W. Baird & Co. |
6 |
American Realty Capital Properties, Inc.
Selected Financial Information
(in 000’s except share and per share data)
Nine Months | Quarter Ended | Quarter Ended | ||||||||||||||||||
Ended | December 31, | |||||||||||||||||||
September 30, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | 2011 | ||||||||||||||||
Total revenues | $ | 11,172 | $ | 4,880 | $ | 3,348 | $ | 2,944 | $ | 2,599 | ||||||||||
Net loss attributable to stockholders | (3,474 | ) | (804 | ) | (2,040 | ) | (630 | ) | (1,925 | ) | ||||||||||
Net loss from continuing operations attributable to common stockholders per share, basic and diluted | (0.38 | ) | (0.08 | ) | (0.27 | ) | (0.04 | ) | (0.17 | ) | ||||||||||
Net loss per share attributable to common stockholders, basic and diluted | (0.43 | ) | (0.09 | ) | (0.28 | ) | (0.09 | ) | (0.29 | ) | ||||||||||
Funds from operations (FFO) | 2,671 | 1,851 | (314 | ) | 1,134 | 78 | ||||||||||||||
FFO per weighted average share, basic | 0.31 | 0.17 | (0.04 | ) | 0.16 | 0.01 | ||||||||||||||
FFO per weighted average share, fully diluted (1) | 0.28 | 0.15 | (0.04 | ) | 0.15 | 0.01 | ||||||||||||||
Adjusted funds from operations (AFFO) | 6,515 | 3,066 | 1,881 | 1,568 | 1,491 | |||||||||||||||
AFFO per weighted average share, basic | 0.76 | 0.28 | 0.25 | 0.22 | 0.23 | |||||||||||||||
AFFO per weighted average share, fully diluted (1) | 0.69 | 0.24 | 0.22 | 0.21 | 0.22 | |||||||||||||||
General and administrative expenses | 1,530 | 617 | 495 | 418 | 340 | |||||||||||||||
Interest expense | (2,873 | ) | (1,136 | ) | (883 | ) | (854 | ) | (739 | ) | ||||||||||
Straight-line revenue adjustment | (555 | ) | (218 | ) | (166 | ) | (171 | ) | - | |||||||||||
Dividends paid | 5,554 | 2,413 | 1,575 | 1,566 | 1,450 | |||||||||||||||
Weighted average shares, basic | 8,543,365 | 10,846,432 | 7,653,170 | 7,174,934 | 6,596,908 | |||||||||||||||
Weighted average shares, diluted | 9,486,273 | 12,618,798 | 8,367,463 | 7,493,934 | 6,915,908 | |||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2012 | June 30, 2012 | March 31, 2012 | 2011 | |||||||||||||||||
Total real estate investments, at cost | $ | 235,723 | $ | 210,023 | $ | 145,501 | $ | 136,873 | ||||||||||||
Total assets | 226,579 | 201,166 | 136,392 | 131,581 | ||||||||||||||||
Total debt, excluding premiums and discounts | 126,850 | 105,153 | 79,859 | 72,667 | ||||||||||||||||
Total equity | 97,650 | 93,662 | 55,189 | 57,332 | ||||||||||||||||
Common shares outstanding | 11,163,617 | 10,676,117 | 7,323,434 | 7,323,434 |
7 |
American Realty Capital Properties, Inc.
Consolidated Balance Sheets
(in 000’s)
December 31, | ||||||||||||||||
September 30, 2012 | June 30, 2012 | March 31, 2012 | 2011 | |||||||||||||
ASSETS | ||||||||||||||||
Real estate investments, at cost: | ||||||||||||||||
Land | $ | 28,717 | $ | 25,831 | $ | 20,000 | $ | 18,489 | ||||||||
Buildings, fixtures and improvements | 182,700 | 163,897 | 113,383 | 107,340 | ||||||||||||
Acquired intangible lease assets | 24,306 | 20,295 | 12,118 | 11,044 | ||||||||||||
Total real estate investments, at cost | 235,723 | 210,023 | 145,501 | 136,873 | ||||||||||||
Less: accumulated depreciation and amortization | (20,954 | ) | (18,092 | ) | (16,348 | ) | (14,841 | ) | ||||||||
Total real estate investments, net | 214,769 | 191,931 | 129,153 | 122,032 | ||||||||||||
Cash and cash equivalents | 3,779 | 2,107 | 768 | 3,148 | ||||||||||||
Prepaid expenses and other assets | 3,015 | 2,501 | 2,196 | 1,798 | ||||||||||||
Deferred costs, net | 4,204 | 3,215 | 2,780 | 2,785 | ||||||||||||
Assets held for sale | 812 | 1,412 | 1,495 | 1,818 | ||||||||||||
Total assets | $ | 226,579 | $ | 201,166 | $ | 136,392 | $ | 131,581 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
Mortgage notes payable | $ | 35,760 | $ | 30,260 | $ | 30,260 | $ | 30,260 | ||||||||
Senior secured revolving credit facility | 91,090 | 74,893 | 49,599 | 42,407 | ||||||||||||
Accounts payable and accrued expenses | 1,276 | 1,656 | 741 | 858 | ||||||||||||
Deferred rent and other liabilities | 803 | 695 | 603 | 724 | ||||||||||||
Total liabilities | 128,929 | 107,504 | 81,203 | 74,249 | ||||||||||||
Preferred stock | 8 | 5 | - | - | ||||||||||||
Common stock | 112 | 107 | 73 | 73 | ||||||||||||
Additional paid-in capital | 101,325 | 93,703 | 57,719 | 57,582 | ||||||||||||
Accumulated other comprehensive income (loss) | (13 | ) | (13 | ) | - | - | ||||||||||
Accumulated deficit | (13,295 | ) | (9,915 | ) | (6,223 | ) | (4,025 | ) | ||||||||
Total stockholders’ equity | 88,137 | 83,887 | 51,569 | 53,630 | ||||||||||||
Non-controlling interests | 9,513 | 9,775 | 3,620 | 3,702 | ||||||||||||
Total equity | 97,650 | 93,662 | 55,189 | 57,332 | ||||||||||||
Total liabilities and equity | $ | 226,579 | $ | 201,166 | $ | 136,392 | $ | 131,581 |
8 |
American Realty Capital Properties, Inc.
Consolidated Statements of Operations
(in 000’s except per share data)
Nine Months | Quarter Ended | Quarter Ended | ||||||||||||||||||
Ended | December 31, | |||||||||||||||||||
September 30, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | 2011 | ||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental income | $ | 10,997 | $ | 4,791 | $ | 3,304 | $ | 2,902 | $ | 2,446 | ||||||||||
Operating expense reimbursements | 175 | 89 | 44 | 42 | 153 | |||||||||||||||
Total revenues | 11,172 | 4,880 | 3,348 | 2,944 | 2,599 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Acquisition and transaction related | 3,297 | 819 | 2,136 | 342 | 1,271 | |||||||||||||||
Property operating | 555 | 315 | 121 | 119 | 153 | |||||||||||||||
General and administrative | 1,530 | 617 | 495 | 418 | 340 | |||||||||||||||
Depreciation and amortization | 6,092 | 2,818 | 1,755 | 1,519 | 1,249 | |||||||||||||||
Total operating expenses | 11,474 | 4,569 | 4,507 | 2,398 | 3,013 | |||||||||||||||
Operating income | (302 | ) | 311 | (1,159 | ) | 546 | (414 | ) | ||||||||||||
Other expenses: | ||||||||||||||||||||
Interest expense | (2,873 | ) | (1,136 | ) | (883 | ) | (854 | ) | (739 | ) | ||||||||||
Loss from continuing operations | (3,175 | ) | (825 | ) | (2,042 | ) | (308 | ) | (1,153 | ) | ||||||||||
Net income from continuing operations attributable to non-controlling interests | 141 | 62 | 79 | - | - | |||||||||||||||
Net loss from continuing operations attributable to stockholders | (3,034 | ) | (763 | ) | (1,963 | ) | (308 | ) | (1,153 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||||||
Loss from operations of held for sale properties | (12 | ) | 3 | (2 | ) | (13 | ) | (29 | ) | |||||||||||
Loss on held for sale properties | (452 | ) | (47 | ) | (82 | ) | (323 | ) | (815 | ) | ||||||||||
Loss from discontinued operations | (464 | ) | (44 | ) | (84 | ) | (336 | ) | (844 | ) | ||||||||||
Income from discontinued operations attributable to non-controlling interests | 24 | 3 | 7 | 14 | 70 | |||||||||||||||
Loss from discontinued operations attributable to stockholders | (440 | ) | (41 | ) | (77 | ) | (322 | ) | (774 | ) | ||||||||||
Other income (expenses): | ||||||||||||||||||||
Other income (loss), net | - | - | - | - | 1 | |||||||||||||||
Total other expenses, net | - | - | - | - | 1 | |||||||||||||||
Net loss | (3,639 | ) | (869 | ) | (2,126 | ) | (644 | ) | (1,996 | ) | ||||||||||
Net income attributable to non-controlling interests | 165 | 65 | 86 | 14 | 71 | |||||||||||||||
Net loss attributable to stockholders | $ | (3,474 | ) | $ | (804 | ) | $ | (2,040 | ) | $ | (630 | ) | $ | (1,925 | ) | |||||
Net loss from continuing operations attributable to common stockholders per share, basic and diluted | $ | (0.38 | ) | $ | (0.08 | ) | $ | (0.27 | ) | $ | (0.04 | ) | $ | (0.17 | ) | |||||
Net loss per share to common stockholders, basic and diluted | $ | (0.43 | ) | $ | (0.09 | ) | $ | (0.28 | ) | $ | (0.09 | ) | $ | (0.29 | ) |
9 |
American Realty Capital Properties, Inc.
Funds From Operations and Adjusted Funds From Operations
(in 000’s except share and per share data)
Nine Months | Quarter Ended | Quarter Ended | ||||||||||||||||||
Ended | December 31, | |||||||||||||||||||
September 30, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | 2011 | ||||||||||||||||
Funds from operations (1): | ||||||||||||||||||||
Net loss attributable to stockholders | $ | (3,474 | ) | $ | (804 | ) | $ | (2,040 | ) | $ | (630 | ) | $ | (1,925 | ) | |||||
Loss on held for sale properties | 428 | 44 | 75 | 309 | 808 | |||||||||||||||
Depreciation and amortization | 5,717 | 2,611 | 1,651 | 1,455 | 1,195 | |||||||||||||||
Funds from operations | 2,671 | 1,851 | (314 | ) | 1,134 | 78 | ||||||||||||||
Adjusted funds from operations(1): | ||||||||||||||||||||
Acquisition and transaction related | 3,060 | 707 | 2,025 | 328 | 1,231 | |||||||||||||||
Amortization of above-market lease asset | 52 | 52 | - | - | - | |||||||||||||||
Amortization of deferred financing costs | 495 | 202 | 153 | 140 | - | |||||||||||||||
Straight-line rent | (555 | ) | (218 | ) | (166 | ) | (171 | ) | - | |||||||||||
Non-cash equity compensation expense | 792 | 472 | 183 | 137 | 182 | |||||||||||||||
Adjusted funds from operations | $ | 6,515 | $ | 3,066 | $ | 1,881 | $ | 1,568 | $ | 1,491 | ||||||||||
Weighted average shares, basic | 8,543,365 | 10,846,432 | 7,653,170 | 7,174,934 | 6,596,908 | |||||||||||||||
Weighted average shares, fully diluted | 9,486,273 | 12,618,798 | 8,367,463 | 7,493,934 | 6,915,908 | |||||||||||||||
Distribution coverage from AFFO | 117.3 | % | 127.1 | % | 119.4 | % | 100.1 | % | 102.8 | % | ||||||||||
Distributions paid | $ | 5,554 | $ | 2,413 | $ | 1,575 | $ | 1,566 | $ | 1,450 | ||||||||||
Per share data: | ||||||||||||||||||||
Funds from operations, basic | $ | 0.313 | $ | 0.171 | $ | (0.041 | ) | $ | 0.158 | $ | 0.012 | |||||||||
Funds from operations, fully diluted | $ | 0.282 | $ | 0.147 | $ | (0.038 | ) | $ | 0.151 | $ | 0.011 | |||||||||
Adjusted funds from operations, basic | $ | 0.763 | $ | 0.283 | $ | 0.246 | $ | 0.219 | $ | 0.226 | ||||||||||
Adjusted funds from operations, fully diluted | $ | 0.687 | $ | 0.243 | $ | 0.225 | $ | 0.209 | $ | 0.216 |
(1) | Adjustments are shown net of non-controlling interests where applicable. |
10 |
American Realty Capital Properties, Inc.
2012 and 2013 Earnings Guidance Summary
Guidance (using basic | ||||||||||||||||
shares oustanding) | ||||||||||||||||
12 Months Ending | 12 Months Ending | |||||||||||||||
December 31, 2012 | December 31, 2013 | |||||||||||||||
Low | High | Low | High | |||||||||||||
Net income (loss) attributable to ARCP | $ | (0.308 | ) | $ | (0.278 | ) | $ | (0.256 | ) | $ | (0.225 | ) | ||||
Funds from operations | ||||||||||||||||
Add: Loss on held for sale properties | 0.044 | 0.044 | - | - | ||||||||||||
Add: Depreciation and amortization | 0.965 | 0.965 | 1.090 | 1.089 | ||||||||||||
Funds from operations | 0.701 | 0.731 | 0.834 | 0.864 | ||||||||||||
Core funds from operations | ||||||||||||||||
Add: Acquisition expenses | 0.305 | 0.305 | 0.290 | 0.290 | ||||||||||||
Core funds from operations | 1.006 | 1.036 | 1.124 | 1.154 | ||||||||||||
Adjusted funds from operations | ||||||||||||||||
Less: Amortization of below-market leases | - | - | - | - | ||||||||||||
Add: Amortization of deferred financing costs | 0.081 | 0.081 | 0.078 | 0.078 | ||||||||||||
Less: Straight-line rent | (0.046 | ) | (0.046 | ) | (0.014 | ) | (0.014 | ) | ||||||||
Add: Non-cash compensation | 0.093 | 0.093 | 0.062 | 0.062 | ||||||||||||
Adjusted funds from operations | $ | 1.134 | $ | 1.164 | $ | 1.250 | $ | 1.280 |
11 |
American Realty Capital Properties, Inc.
Dividend Summary
(in 000’s except per share data)
Total Common Share | Dividends per share | |||||||
Month | Dividends (1) | (annualized) (2) | ||||||
Sep-12 | $ | 807,584 | 0.890 | |||||
Aug-12 | 803,011 | 0.885 | ||||||
Jul-12 | 802,734 | 0.885 | ||||||
Jun-12 | 527,094 | 0.885 | ||||||
May-12 | 523,878 | 0.880 | ||||||
Apr-12 | 523,878 | 0.880 | ||||||
Mar-12 | 523,878 | 0.880 | ||||||
Feb-12 | 521,019 | 0.875 | ||||||
Jan-12 | 521,019 | 0.875 | ||||||
2012 to date | 5,554,095 | |||||||
Dec-11 | 521,019 | 0.875 | ||||||
Nov-11 | 521,019 | 0.875 | ||||||
Oct-11 | 406,354 | 0.875 | ||||||
Sep-11 | - | |||||||
Total 2011 | 1,448,392 |
(1) Excludes dividends paid on unvested restricted shares, dividends paid on OP Units to limited partners and dividends paid on Series A and Series B Preferred Stock.
(2) Paid monthly.
12 |
American Realty Capital Properties, Inc.
Portfolio Profile (1)
September 30, 2012 | ||||
Base purchase price of properties acquired | $ | 235,723 | ||
Number of properties | 124 | |||
Square footage | 2,198,877 | |||
Number of states | 24 | |||
Number of tenants | 14 | |||
Number of tenant industries | 10 | |||
Average remaining lease term (in years) | 6.8 | |||
Occupancy | 100.0 | % | ||
Investment grade tenants (based on annualized rental income) (2) | 99.1 | % | ||
Average capitalization rate (annualized rental income/purchase price) | 8.5 | % | ||
Top three tenants percentage of total annualized rent | 56.5 | % | ||
Acquisitions YTD September 30, 2012: | ||||
Number of properties | 36 | |||
Square footage of acquisitons | 1,202,865 | |||
Cost of acquisitions (000's) (3) | $ | 98,850 | ||
Average capitalization rate of acquisitions | 9.5 | % | ||
Acquisitions QTD September 30, 2012: | ||||
Number of properties | 6 | |||
Square footage of acquisitons | 265,334 | |||
Cost of acquisitions (000's) (3) | $ | 25,700 | ||
Average capitalization rate of acquisitions | 9.8 | % |
(1) Excludes one vacant propery classified as held for sale.
(2) Includes a property leased to Home Depot USA, Inc., Bimbo Bakeries USA, Inc. and Iron Mountain Information Management, Inc., which are unrated wholly owned subsidiaries of the Home Depot, Inc., Grupo Bimbo SAB de CV and Iron Mountain Incorporated, respectively. For purposes of this presentation, we have attributed the rating of the parent company to its wholly owned subsidiary.
(3) Excludes acquisition and transaction related costs.
13 |
American Realty Capital Properties, Inc.
Lease Expirations
% of Portfolio | % of Portfolio | |||||||||||||||||||
Number of Leases | Average Annual | Average Annual | Leased Rentable | Rentable Square | ||||||||||||||||
Year of Expiration | Expiring | Rent (in 000's) | Rent Expiring | Square Feet | Feet Expiring | |||||||||||||||
2012 | - | $ | - | 0.0 | % | - | 0.0 | % | ||||||||||||
2013 | - | - | 0.0 | % | - | 0.0 | % | |||||||||||||
2014 | 3 | 91 | 0.5 | % | 23,778 | 1.1 | % | |||||||||||||
2015 | 14 | 823 | 4.1 | % | 130,726 | 5.9 | % | |||||||||||||
2016 | 8 | 680 | 3.4 | % | 74,926 | 3.4 | % | |||||||||||||
2017 | 38 | 4,873 | 24.2 | % | 470,392 | 21.4 | % | |||||||||||||
2018 | 28 | 6,789 | 33.7 | % | 794,531 | 36.1 | % | |||||||||||||
2019 | 20 | 3,432 | 17.1 | % | 132,129 | 6.0 | % | |||||||||||||
2020 | 2 | 248 | 1.2 | % | 19,139 | 0.9 | % | |||||||||||||
2021 | 5 | 566 | 2.8 | % | 42,414 | 1.9 | % | |||||||||||||
Total | 118 | $ | 17,502 | 87.0 | % | 1,688,035 | 76.7 | % |
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American Realty Capital Properties, Inc.
Tenant Diversification (1)
Average | ||||||||||||||||||||||||||
Square Feet | Average | Average | Annual Rent | |||||||||||||||||||||||
Number of | as a % of Total | Remaining | Annual Rent | as a % of Total | ||||||||||||||||||||||
Tenant | Properties | Square Feet | Portfolio | Lease Term (2) | Industry | (in 000's) | Portfolio | |||||||||||||||||||
Citizens Bank | 59 | 291,920 | 13.3 | % | 5.4 | Retail Banking | $ | 6,726 | 33.4 | % | ||||||||||||||||
John Deere | 1 | 552,960 | 25.1 | % | 5.3 | Specialty Retail | 2,353 | 11.7 | % | |||||||||||||||||
GSA | 5 | 103,907 | 4.7 | % | 5.5 | Government Services | 2,292 | 11.4 | % | |||||||||||||||||
Home Depot | 1 | 465,600 | 21.2 | % | 17.2 | Home Maintenance | 2,258 | 11.2 | % | |||||||||||||||||
Dollar General | 36 | 311,770 | 14.2 | % | 6.0 | Discount Retail | 1,607 | 8.0 | % | |||||||||||||||||
FedEx | 6 | 92,935 | 4.2 | % | 4.2 | Freight | 1,099 | 5.5 | % | |||||||||||||||||
Reckitt Benckiser | 1 | 32,000 | 1.5 | % | 5.6 | Consumer Goods | 964 | 4.8 | % | |||||||||||||||||
Mrs. Bairds | 1 | 75,050 | 3.4 | % | 4.7 | Consumer Goods | 631 | 3.1 | % | |||||||||||||||||
Walgreen's | 2 | 29,534 | 1.3 | % | 7.7 | Pharmacy | 591 | 2.9 | % | |||||||||||||||||
CVS | 3 | 31,620 | 1.4 | % | 4.7 | Pharmacy | 481 | 2.4 | % | |||||||||||||||||
Advance Auto | 6 | 42,000 | 1.9 | % | 7.1 | Auto Retail | 457 | 2.3 | % | |||||||||||||||||
Iron Mountain | 1 | 126,664 | 5.8 | % | 5.3 | Storage Facility | 443 | 2.2 | % | |||||||||||||||||
Tractor Supply Co. | 1 | 38,507 | 1.8 | % | 6.1 | Specialty Retail | 183 | 0.9 | % | |||||||||||||||||
Community Bank | 1 | 4,410 | 0.2 | % | 3.8 | Retail Banking | 36 | 0.2 | % | |||||||||||||||||
Total | 124 | 2,198,877 | 100.0 | % | 6.8 | $ | 20,121 | 100.0 | % |
(1) Excludes one vacant propery classified as held for sale.
(2) Remaining lease term in years as of September 30, 2012.
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American Realty Capital Properties, Inc.
Tenant Industry Diversification (1)
Square Feet as a | Average Annual | |||||||||||||||||||
Number of | % of Total | Average Annual | Rent as a % of Total | |||||||||||||||||
Industry | Properties | Square Feet | Portfolio | Rent (in 000's) | Portfolio | |||||||||||||||
Retail Banking | 60 | 296,330 | 13.5 | % | $ | 6,762 | 33.6 | % | ||||||||||||
Specialty Retail | 2 | 591,467 | 26.9 | % | 2,536 | 12.6 | % | |||||||||||||
Government Services | 5 | 103,907 | 4.7 | % | 2,292 | 11.4 | % | |||||||||||||
Home Maintenance | 1 | 465,600 | 21.2 | % | 2,258 | 11.2 | % | |||||||||||||
Discount Retail | 36 | 311,770 | 14.2 | % | 1,607 | 8.0 | % | |||||||||||||
Consumer Goods | 2 | 107,050 | 4.9 | % | 1,595 | 7.9 | % | |||||||||||||
Freight | 6 | 92,935 | 4.2 | % | 1,099 | 5.5 | % | |||||||||||||
Pharmacy | 5 | 61,154 | 2.8 | % | 1,072 | 5.3 | % | |||||||||||||
Auto Retail | 6 | 42,000 | 1.9 | % | 457 | 2.3 | % | |||||||||||||
Storage Facility | 1 | 126,664 | 5.8 | % | 443 | 2.2 | % | |||||||||||||
Total | 124 | 2,198,877 | 100.0 | % | $ | 20,121 | 100.0 | % |
(1) Excludes one vacant propery classified as held for sale.
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American Realty Capital Properties, Inc.
Property Geographic Diversification (1)
Square Feet as a | Average Annual | |||||||||||||||||||
Number of | % of Total | Average Annual | Rent as a % of Total | |||||||||||||||||
State/ Possesion | Properties | Square Feet | Portfolio | Rent (in 000's) | Portfolio | |||||||||||||||
Michigan | 22 | 125,034 | 5.7 | % | $ | 2,847 | 14.1 | % | ||||||||||||
South Carolina | 2 | 480,014 | 21.8 | % | 2,503 | 12.4 | % | |||||||||||||
Ohio | 18 | 220,810 | 10.0 | % | 2,379 | 11.8 | % | |||||||||||||
Iowa | 1 | 552,960 | 25.1 | % | 2,353 | 11.7 | % | |||||||||||||
New York | 13 | 87,024 | 4.0 | % | 2,102 | 10.4 | % | |||||||||||||
Missouri | 26 | 224,509 | 10.2 | % | 1,215 | 6.0 | % | |||||||||||||
Illinois | 10 | 77,895 | 3.5 | % | 1,209 | 6.0 | % | |||||||||||||
Pennsylvania | 5 | 62,552 | 2.8 | % | 1,065 | 5.3 | % | |||||||||||||
New Jersey | 1 | 32,000 | 1.5 | % | 964 | 4.8 | % | |||||||||||||
Texas | 2 | 113,557 | 5.2 | % | 814 | 4.0 | % | |||||||||||||
Alabama | 1 | 39,468 | 1.8 | % | 604 | 3.0 | % | |||||||||||||
Indiana | 1 | 20,200 | 0.9 | % | 339 | 1.7 | % | |||||||||||||
Georgia | 2 | 20,898 | 1.0 | % | 331 | 1.6 | % | |||||||||||||
Vermont | 3 | 12,492 | 0.6 | % | 237 | 1.2 | % | |||||||||||||
Virginia | 1 | 11,281 | 0.5 | % | 217 | 1.1 | % | |||||||||||||
Arkansas | 5 | 43,786 | 2.0 | % | 181 | 0.9 | % | |||||||||||||
Tennessee | 1 | 10,722 | 0.5 | % | 150 | 0.7 | % | |||||||||||||
Connecticut | 2 | 5,592 | 0.3 | % | 124 | 0.6 | % | |||||||||||||
Kentucky | 1 | 12,140 | 0.6 | % | 122 | 0.6 | % | |||||||||||||
New Hampshire | 2 | 6,872 | 0.3 | % | 112 | 0.6 | % | |||||||||||||
Delaware | 1 | 4,610 | 0.2 | % | 91 | 0.5 | % | |||||||||||||
Oklahoma | 2 | 18,044 | 0.8 | % | 76 | 0.4 | % | |||||||||||||
Florida | 1 | 8,900 | 0.4 | % | 56 | 0.3 | % | |||||||||||||
Kansas | 1 | 7,517 | 0.3 | % | 30 | 0.1 | % | |||||||||||||
Total | 124 | 2,198,877 | 100.0 | % | $ | 20,121 | 100.0 | % |
(1) Excludes one vacant propery classified as held for sale.
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American Realty Capital Properties, Inc.
Property Age (2)
Age: | ||||
0 – 5 yrs. | 16 | |||
6 – 10 yrs. | 28 | |||
11 – 39 yrs. | 49 | |||
Historic (1) | 31 | |||
124 |
(1) | Historic properties are properties that are 40 years or older and are comprised of certain retail bank branches where the tenant has maintained certain features of the historic nature of the building. |
(2) | Excludes one vacant propery classified as held for sale. |
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American Realty Capital Properties, Inc.
Definitions
Average annual rent is annualized rental income or Net Operating Income under our leases reflecting straight-line rent adjustments associated with contractual rent increases in the leases as required by GAAP, as further adjusted to reflect the effect of (i) tenant concessions and abatements such as free rent, and (ii) in respect of our modified gross leased properties, the effect of operating expense reimbursement revenue less property operating expenses.
Creditworthy tenants as determined by us based on our own assessment of the tenant’s financial condition based on our underwriting criteria.
Funds from operations and adjusted funds from operations (FFO/AFFO) - the Company considers funds from operations, or FFO, and FFO, as adjusted to exclude acquisition-related fees and expenses, amortization of above-market lease assets and liabilities, amortization of deferred financing costs, straight-line rent, non-cash mark-to-market adjustments, amortization of restricted stock, non-cash compensation and non-recurring gains and losses, or AFFO, useful indicators of the performance of a REIT. Because FFO calculations exclude such factors as depreciation and amortization of real estate assets and gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), they facilitate comparisons of operating performance between periods and between other REITs in our peer group. Accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.
Additionally, the Company believes that AFFO, by excluding acquisition-related fees and expenses, amortization of above-market lease assets and liabilities, amortization of deferred financing costs, straight-line rent, non-cash mark-to-market adjustments, amortization of restricted stock, non-cash compensation and non-recurring gains and losses, provides information consistent with management's analysis of the operating performance of the properties. By providing AFFO, ARCP believes it is presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance. Further, ARCP believes AFFO is useful in comparing the sustainability of our operating performance with the sustainability of the operating performance of other real estate companies, including exchange-traded and non-traded REITs.
As a result, the Company believes that the use of FFO and AFFO, together with the required GAAP presentations, provide a more complete understanding of our performance relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities.
Investment grade - a determination made by major credit rating agencies.
Listing - On September 6, 2011, the Company listed its common stock on The NASDAQ Capital Market under the symbol “ARCP.”
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