Attached files
| file | filename |
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| 8-K/A - FORM 8-K/A - VEREIT, Inc. | v336600_8k-a.htm |
American Realty Capital Properties, Inc.
Quarterly Supplemental Information
Fourth 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 | |
| 2013 Earnings Guidance Summary | 11 | |
| Dividend Summary | 12 | |
| Portfolio Profile | 13 | |
| Lease Expirations | 14 | |
| Tenant Diversification | 15 | |
| Tenant Industry Diversification | 17 | |
| Property Geographic Diversification | 18 | |
| Definitions | 20 |
American Realty Capital Properties, Inc.
Introductory Notes
The financial 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, we do not undertake to and 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.
This supplemental information includes certain unaudited pro forma consolidated financial information. We use the terms “on a combined basis”, “pro forma” and “on a pro forma basis” throughout this supplemental report. The pro forma consolidated financial information combines the historical financial statements of ARCP and American Realty Capital Trust III, Inc. (“ARCT III”) after giving effect to the Merger, as described in further detail below, using the carryover basis of accounting as ARCP and ARCT III are considered to be entities under common control under United States generally accepted accounting principles (“U.S. GAAP”). The unaudited pro forma consolidated financial information should be read in conjunction with ARCP’s historical consolidated financial statements including the notes thereto, and the notes to the unaudited pro forma consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2012.
The unaudited pro forma consolidated financial information is presented for illustrative purposes only and does not purport to be indicative of the results that would actually have occurred if the Merger between ARCP and ARCT III had occurred as presented in such statements or that may be obtained in the future. In addition, future results may vary significantly from the results reflected in such statements.
Definitions of specialized terms can be found at the end of this presentation on page 20.
| 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 were formed to acquire and own single-tenant, freestanding commercial real estate primarily subject to medium-term and long-term net leases with high credit quality tenants. Following the merger with ARCT III discussed below, our long-term business plan will be to acquire a portfolio consisting of approximately 70% long-term leases and 30% medium-term leases, with an average remaining lease term of 10 to 12 years. We expect this investment strategy to develop growth potential from below market leases. Additionally, following the merger, we will own a portfolio that uniquely combines ARCT III's portfolio of properties with stable income from high credit quality tenants, with our portfolio, which has substantial growth opportunities. Prior to the consummation of the merger our common stock was listed on The NASDAQ Stock Market under the ticker symbol “ARCP”. On February 28, 2013, our common stock will be transferred to the NASDAQ Global Select Market.
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 intend to focus on composing a portfolio consisting of approximately 30% medium-term and approximately 70% long-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 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 and long 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 December 31, 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(1) | Board of Directors(2) | |
| 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., Lead Independent Director | ||
| Robin A. Ferracone, Independent Director | ||
| Leslie D. Michelson, Independent Director |
| (1) | Post-merger Brian D. Jones will be added to the senior management team as Executive Vice President and Chief Operating Officer. |
| (2) | Post-merger Edward M. Weil, Jr. will be President, Secretary, Treasurer and Director, William M. Kahane will be a Director, Scott J. Bowman and Governor Edward G. Rendell will be Independent Directors and Robin A. Ferracone will be no longer serve as a Director. |
Corporate Offices and Contact Information
405 Park Avenue, 12th Floor
New York, NY 10022
212-415-6500
www.americanrealtycapitalproperties.com (Post-merger: www.arcpreit.com)
Trading Symbol: ARCP
Stock Exchange Listing: NASDAQ Stock Market (Post-merger: NASDAQ Global Select 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
Fourth Quarter 2012
Merger Agreement with American Realty Capital Trust III
On December 14, 2012, ARCP and American Realty Capital Trust III (“ARCT III”) entered into an Agreement and Plan of Merger under which ARCP will acquire all of the outstanding shares of ARCT III in a transaction that would result in a combined company with $3.0 billion of enterprise value. This will increase ARCP’s enterprise value tenfold. Both companies’ board of directors have unanimously approved the agreement and on February 26, 2013, both companies stockholders voted ‘FOR’ the proposal to approve the merger. The transaction is expected to close on February 28, 2013. Under the terms of the agreement, each outstanding share of ARCT III will be converted into the right to receive, at the election of each stockholder, either 0.95 of a share of ARCP common stock or $12.00 in cash. Post closing, the combined company is anticipated to be comprised of a portfolio of over 692 properties that are net leased to investment grade and other credit tenants totaling approximately 16.4 million square feet and located in 44 states and Puerto Rico.
Fourth Quarter 2012 Operating Highlights (three months ended December 31, 2012)
| · | Revenues: $5.6 million, representing an increase of $0.8 million, or 15.8%, compared to the prior quarter. |
| · | Funds from operations: $2.2 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 $2.9 million, or $0.26. per share computed using weighted average basic shares outstanding (“basic”) and $0.24 per share computed using weighted average fully diluted shares outstanding (“fully diluted”). |
| · | Adjusted funds from operations: $3.4 million, or $0.31 per share basic and $0.28 per share fully diluted. |
| · | Total dividends paid to stockholders: $2.6 million, or $0.892 per share on an annualized basis. |
Year End 2012 Operating Highlights
| · | Revenues: $16.8 million. |
| · | Funds from operations: $5.2 million, which includes one-time net acquisition and transaction related expenses of $4.0 million. Core funds from operations (excluding the impact of acquisition and transaction related expenses) of $9.2 million, or $1.01 per share basic and $0.95 per share fully diluted. |
| · | Adjusted funds from operations: $10.5 million, or $1.15 per share basic and $1.08 per share fully diluted. |
| · | Total dividends paid to stockholders: $8.4 million, or $0.884 per share on an annualized basis. |
Property Portfolio Highlights as of December 31, 2012
| · | Operating portfolio occupancy: 100%. |
| · | Investment grade tenancy: 97% based on average rental income (We have attributed the rating of each parent company to its wholly owned subsidiary for purposes of this calculation.). |
| · | Acquisitions: Completed 58 property acquisitions for a base purchase price of $131.8 million, comprised of over 1.4 million square feet, at an average capitalization rate of 9.2% (annualized rental income on a straight-line basis, or annualized net operating income, divided by base purchase price). |
| 6 |
American Realty Capital Properties, Inc.
Selected Financial Information
(in 000’s except share and per share data)
| Quarter Ended | Quarter Ended | |||||||||||||||||||
| December 31, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | December 31, 2011 | ||||||||||||||||
| Total revenues | $ | 5,650 | $ | 4,880 | $ | 3,348 | $ | 2,944 | $ | 2,599 | ||||||||||
| Net loss attributable to stockholders | (3,804 | ) | (805 | ) | (2,039 | ) | (630 | ) | (1,925 | ) | ||||||||||
| Net loss from continuing operations attributable to common stockholders per share, basic and diluted | (0.34 | ) | (0.08 | ) | (0.27 | ) | (0.04 | ) | (0.17 | ) | ||||||||||
| Net loss per share attributable to common stockholders, basic and diluted | (0.36 | ) | (0.09 | ) | (0.28 | ) | (0.09 | ) | (0.29 | ) | ||||||||||
| Funds from operations (FFO) | 2,156 | 2,059 | (180 | ) | 1,212 | 78 | ||||||||||||||
| FFO per weighted average share, basic | 0.20 | 0.19 | (0.02 | ) | 0.17 | 0.01 | ||||||||||||||
| FFO per weighted average share, fully diluted | 0.18 | 0.18 | (0.02 | ) | 0.17 | 0.01 | ||||||||||||||
| Adjusted funds from operations (AFFO) | 3,375 | 3,373 | 2,096 | 1,653 | 1,491 | |||||||||||||||
| AFFO per weighted average share, basic | 0.31 | 0.31 | 0.27 | 0.23 | 0.23 | |||||||||||||||
| AFFO per weighted average share, fully diluted | 0.28 | 0.29 | 0.27 | 0.23 | 0.22 | |||||||||||||||
| General and administrative expenses | 731 | 617 | 495 | 418 | 340 | |||||||||||||||
| Interest expense | (1,483 | ) | (1,136 | ) | (883 | ) | (854 | ) | (739 | ) | ||||||||||
| Straight-line revenue adjustment | (207 | ) | (236 | ) | (175 | ) | (179 | ) | - | |||||||||||
| Dividends paid | 2,428 | 2,413 | 1,575 | 1,566 | 1,450 | |||||||||||||||
| Weighted average shares, basic | 10,959,840 | 10,846,432 | 7,653,170 | 7,147,934 | 6,596,908 | |||||||||||||||
| Weighted average shares, diluted | 11,987,280 | 11,732,422 | 7,833,215 | 7,156,034 | 6,915,908 | |||||||||||||||
| December 31, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | December 31, 2011 | ||||||||||||||||
| Total real estate investments, at cost | $ | 268,679 | $ | 235,723 | $ | 210,023 | $ | 145,501 | $ | 136,873 | ||||||||||
| Total assets | 256,069 | 226,579 | 201,166 | 136,392 | 131,581 | |||||||||||||||
| Total debt, excluding premiums and discounts | 160,362 | 126,850 | 105,153 | 79,859 | 72,667 | |||||||||||||||
| Total equity | 91,162 | 97,650 | 93,662 | 55,189 | 57,332 | |||||||||||||||
| Common shares outstanding | 11,157,643 | 11,163,617 | 10,676,117 | 7,323,434 | 7,323,434 | |||||||||||||||
| 7 |
American Realty Capital Properties, Inc.
Consolidated Balance Sheets
(in 000’s)
| ARCP Pro Forma | December 31, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | December 31, 2011 | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Real estate investments, at cost: | ||||||||||||||||||||||||
| Land | $ | 313,744 | $ | 34,345 | $ | 28,717 | $ | 25,831 | $ | 20,000 | $ | 18,489 | ||||||||||||
| Buildings, fixtures and improvements | 1,661,142 | 205,930 | 182,700 | 163,897 | 113,383 | 107,340 | ||||||||||||||||||
| Acquired intangible lease assets | 264,304 | 28,404 | 24,306 | 20,295 | 12,118 | 11,044 | ||||||||||||||||||
| Total real estate investments, at cost | 2,239,190 | 268,679 | 235,723 | 210,023 | 145,501 | 136,873 | ||||||||||||||||||
| Less: accumulated depreciation and amortization | (56,110 | ) | (24,233 | ) | (20,954 | ) | (18,092 | ) | (16,348 | ) | (14,841 | ) | ||||||||||||
| Total real estate investments, net | 2,183,080 | 244,446 | 214,769 | 191,931 | 129,153 | 122,032 | ||||||||||||||||||
| Cash and cash equivalents | 39,088 | 2,748 | 3,779 | 2,107 | 768 | 3,148 | ||||||||||||||||||
| Investment securities, at fair value | 41,654 | - | - | - | - | - | ||||||||||||||||||
| Restricted cash | 1,108 | - | - | - | - | - | ||||||||||||||||||
| Prepaid expenses and other assets | 9,501 | 3,219 | 3,015 | 2,501 | 2,196 | 1,798 | ||||||||||||||||||
| Deferred costs, net | 15,356 | 4,991 | 4,204 | 3,215 | 2,780 | 2,785 | ||||||||||||||||||
| Assets held for sale | 665 | 665 | 812 | 1,412 | 1,495 | 1,818 | ||||||||||||||||||
| Total assets | $ | 2,290,452 | $ | 256,069 | $ | 226,579 | $ | 201,166 | $ | 136,392 | $ | 131,581 | ||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||||||
| Mortgage notes payable | 265,118 | $ | 35,758 | $ | 35,760 | $ | 30,260 | $ | 30,260 | $ | 30,260 | |||||||||||||
| Derivatives, at fair value | 3,830 | - | - | - | - | - | ||||||||||||||||||
| Senior secured revolving credit facility | - | 124,604 | 91,090 | 74,893 | 49,599 | 42,407 | ||||||||||||||||||
| Unsecured credit facility | 780,068 | - | - | - | - | - | ||||||||||||||||||
| Accounts payable and accrued expenses | 9,459 | 3,782 | 1,276 | 1,656 | 741 | 858 | ||||||||||||||||||
| Deferred rent and other liabilities | 4,337 | 763 | 803 | 695 | 603 | 724 | ||||||||||||||||||
| Distributions payable | 9,946 | - | - | - | - | - | ||||||||||||||||||
| Total liabilities | 1,072,758 | 164,907 | 128,929 | 107,504 | 81,203 | 74,249 | ||||||||||||||||||
| Preferred stock | 8 | 8 | 8 | 5 | - | - | ||||||||||||||||||
| Common stock | 1,538 | 112 | 112 | 107 | 73 | 73 | ||||||||||||||||||
| Additional paid-in capital | 1,225,986 | 101,548 | 101,325 | 93,703 | 57,719 | 57,582 | ||||||||||||||||||
| Accumulated other comprehensive income (loss) | (3,934 | ) | (11 | ) | (13 | ) | (13 | ) | - | - | ||||||||||||||
| Accumulated deficit | (120,072 | ) | (19,705 | ) | (13,295 | ) | (9,915 | ) | (6,223 | ) | (4,025 | ) | ||||||||||||
| Total stockholders’ equity | 1,103,526 | 81,952 | 88,137 | 83,887 | 51,569 | 53,630 | ||||||||||||||||||
| Non-controlling interests | 114,168 | 9,210 | 9,513 | 9,775 | 3,620 | 3,702 | ||||||||||||||||||
| Total equity | 1,217,694 | 91,162 | 97,650 | 93,662 | 55,189 | 57,332 | ||||||||||||||||||
| Total liabilities and equity | $ | 2,290,452 | $ | 256,069 | $ | 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)
| ARCP
Pro Forma | Quarter Ended | Quarter Ended | ||||||||||||||||||||||
Year Ended December 31, 2012 | December 31, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | December 31, 2011 | |||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Rental income | $ | 178,999 | $ | 5,337 | $ | 4,791 | $ | 3,304 | $ | 2,902 | $ | 2,446 | ||||||||||||
| Operating expense reimbursements | 2,002 | 313 | 89 | 44 | 42 | 153 | ||||||||||||||||||
| Total revenues | 181,001 | 5,650 | 4,880 | 3,348 | 2,944 | 2,599 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Acquisition and related | 13,631 | 711 | 820 | 2,115 | 342 | 1,271 | ||||||||||||||||||
| Merger and other transaction related | - | 2,583 | - | 20 | - | - | ||||||||||||||||||
| Property operating | 3,484 | 543 | 315 | 121 | 119 | 153 | ||||||||||||||||||
| Operating fees to affiliates | 11,196 | |||||||||||||||||||||||
| General and administrative | 5,092 | 731 | 617 | 495 | 418 | 340 | ||||||||||||||||||
| Depreciation and amortization | 111,245 | 3,230 | 2,818 | 1,755 | 1,519 | 1,249 | ||||||||||||||||||
| Total operating expenses | 144,648 | 7,798 | 4,570 | 4,506 | 2,398 | 3,013 | ||||||||||||||||||
| Operating income | 36,353 | (2,148 | ) | 310 | (1,158 | ) | 546 | (414 | ) | |||||||||||||||
| Other expenses: | ||||||||||||||||||||||||
| Interest expense | (30,579 | ) | (1,483 | ) | (1,136 | ) | (883 | ) | (854 | ) | (739 | ) | ||||||||||||
| Other income | 960 | 2 | - | - | - | 1 | ||||||||||||||||||
| Total other expenses, net | (29,619 | ) | (1,481 | ) | (1,136 | ) | (883 | ) | (854 | ) | (738 | ) | ||||||||||||
| Loss from continuing operations | 6,734 | (3,629 | ) | (826 | ) | (2,041 | ) | (308 | ) | (1,152 | ) | |||||||||||||
| Net income from continuing operations attributable to non-controlling interests | 377 | 84 | 62 | 79 | - | - | ||||||||||||||||||
| Net loss from continuing operations attributable to stockholders | 7,111 | (3,545 | ) | (764 | ) | (1,962 | ) | (308 | ) | (1,152 | ) | |||||||||||||
| Discontinued operations: | ||||||||||||||||||||||||
| Loss from operations of held for sale properties | (145 | ) | (133 | ) | 3 | (2 | ) | (13 | ) | (29 | ) | |||||||||||||
| Loss on held for sale properties | (600 | ) | (148 | ) | (47 | ) | (82 | ) | (323 | ) | (815 | ) | ||||||||||||
| Loss from discontinued operations | (745 | ) | (281 | ) | (44 | ) | (84 | ) | (336 | ) | (844 | ) | ||||||||||||
| Income from discontinued operations attributable to non-controlling interests | 46 | 22 | 3 | 7 | 14 | 70 | ||||||||||||||||||
| Loss from discontinued operations attributable to stockholders | (699 | ) | (259 | ) | (41 | ) | (77 | ) | (322 | ) | (774 | ) | ||||||||||||
| Net loss | 5,989 | (3,910 | ) | (870 | ) | (2,125 | ) | (644 | ) | (1,996 | ) | |||||||||||||
| Net income attributable to non-controlling interests | (585 | ) | 106 | 65 | 86 | 14 | 70 | |||||||||||||||||
| Net loss attributable to stockholders | $ | 5,404 | $ | (3,804 | ) | $ | (805 | ) | $ | (2,039 | ) | $ | (630 | ) | $ | (1,926 | ) | |||||||
| Net loss from continuing operations attributable to common stockholders per share, basic and diluted | $ | 0.04 | $ | (0.34 | ) | $ | (0.08 | ) | $ | (0.27 | ) | $ | (0.04 | ) | $ | (0.17 | ) | |||||||
| Net loss per share to common stockholders, basic and diluted | $ | 0.03 | $ | (0.36 | ) | $ | (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)
| ARCP
Pro Forma | Quarter Ended | Quarter Ended | ||||||||||||||||||||||||||
| Year
Ended December 31, 2012 | Year
Ended December 31, 2012 | December
31, 2012 | September
30, 2012 | June 30, 2012 | March 31, 2012 | December
31, 2011 | ||||||||||||||||||||||
| Funds from operations: | ||||||||||||||||||||||||||||
| Net loss attributable to stockholders | $ | 5,404 | $ | (7,278 | ) | (3,804 | ) | $ | (805 | ) | $ | (2,039 | ) | $ | (630 | ) | $ | (1,925 | ) | |||||||||
| Merger and other transaction costs | - | 2,603 | 2,583 | - | 20 | - | ||||||||||||||||||||||
| Loss on held for sale properties | 600 | 600 | 147 | 47 | 83 | 323 | 808 | |||||||||||||||||||||
| Depreciation and amortization | 111,245 | 9,322 | 3,230 | 2,817 | 1,756 | 1,519 | 1,195 | |||||||||||||||||||||
| Funds from operations | 117,249 | 5,247 | 2,156 | 2,059 | (180 | ) | 1,212 | 78 | ||||||||||||||||||||
| Adjusted funds from operations: | ||||||||||||||||||||||||||||
| Acquisition related | 13,631 | 3,988 | 711 | 820 | 2,115 | 342 | 1,231 | |||||||||||||||||||||
| Amortization of above-market lease asset | 202 | 117 | 61 | 56 | - | - | - | |||||||||||||||||||||
| Amortization of deferred financing costs | 1,523 | 771 | 276 | 201 | 153 | 141 | - | |||||||||||||||||||||
| Straight-line rent | (7,597 | ) | (797 | ) | (207 | ) | (236 | ) | (175 | ) | (179 | ) | - | |||||||||||||||
| Non-cash equity compensation expense | 1,191 | 1,170 | 378 | 473 | 183 | 137 | 182 | |||||||||||||||||||||
| Adjusted funds from operations | $ | 126,199 | $ | 10,496 | $ | 3,375 | $ | 3,373 | $ | 2,096 | $ | 1,653 | $ | 1,491 | ||||||||||||||
| Weighted average shares, basic | 151,733,529 | 9,150,785 | 10,959,840 | 10,846,432 | 7,653,170 | 7,147,934 | 6,596,908 | |||||||||||||||||||||
| Weighted average shares, fully diluted(1) | 152,289,310 | 9,689,165 | 11,987,280 | 11,732,422 | 7,833,215 | 7,156,034 | 6,915,908 | |||||||||||||||||||||
| Distribution coverage from AFFO | 131.5 | % | 138.6 | % | 139.8 | % | 133.1 | % | 105.5 | % | 103.0 | % | ||||||||||||||||
| Distributions paid | $ | 7,982 | $ | 2,428 | $ | 2,413 | $ | 1,575 | $ | 1,566 | $ | 1,448 | ||||||||||||||||
| Per share data: | ||||||||||||||||||||||||||||
| Funds from operations, basic | $ | 0.773 | $ | 0.573 | $ | 0.197 | $ | 0.190 | $ | (0.024 | ) | $ | 0.170 | $ | 0.012 | |||||||||||||
| Funds from operations, fully diluted | $ | 0.770 | $ | 0.542 | $ | 0.180 | $ | 0.175 | $ | (0.023 | ) | $ | 0.169 | $ | 0.011 | |||||||||||||
| Adjusted funds from operations, basic | $ | 0.832 | $ | 1.147 | $ | 0.307 | $ | 0.311 | $ | 0.274 | $ | 0.231 | $ | 0.226 | ||||||||||||||
| Adjusted funds from operations, fully diluted | $ | 0.829 | $ | 1.083 | $ | 0.281 | $ | 0.287 | $ | 0.268 | $ | 0.231 | $ | 0.216 | ||||||||||||||
| (1) | Excludes the effect of OP Units. |
| 10 |
American Realty Capital Properties, Inc.
Affirming 2013 Earnings Guidance
| Low | High | |||||||
| AFFO/Share Fully diluted(1) | $ | 0.91 | $ | 0.95 | ||||
| (1) | On a pro forma basis including the effect of the merger of ARCP with ARCT III. |
| 11 |
American Realty Capital Properties, Inc.
Dividend Summary
(in 000’s except per share data)
| Month | Total
Common Stock Dividends (1) | Dividends
per share (annualized) (2) | ||||||
| Dec-12 | $ | 812,183 | 0.895 | |||||
| Nov-12 | 807,718 | 0.890 | ||||||
| Oct-12 | 807,718 | 0.890 | ||||||
| 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 | ||||||
| Total 2012 | 7,981,714 | |||||||
| 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)
| December 31, 2012 | ||||||||
| ARCP | Pro Forma Combined ARCT III and ARCP | |||||||
| Base purchase price of properties acquired | $ | 268,625 | $ | 1,798,434 | ||||
| Number of properties | 146 | 653 | ||||||
| Square footage | 2,412,104 | 15,424,665 | ||||||
| Number of states | 26 | 44 | ||||||
| Number of tenants | 17 | 44 | ||||||
| Number of tenant industries | 11 | 19 | ||||||
| Average remaining lease term (in years) | 6.7 | 11.4 | ||||||
| Occupancy | 100.0 | % | 100.0 | % | ||||
| Investment grade tenants (based on annualized rental income) | 97.1 | % | 78.4 | % | ||||
| Average capitalization rate (annualized rental income/purchase price) | 8.5 | % | 8.0 | % | ||||
| Top three tenants, percentage of total annualized rent | 50.3 | % | 34.3 | % | ||||
| Acquisitions YTD December 31, 2012: | ||||||||
| Number of properties | 58 | 524 | ||||||
| Square footage of acquisitons | 1,416,092 | 13,998,624 | ||||||
| Cost of acquisitions (000's) (2) | $ | 131,752 | $ | 1,589,110 | ||||
| Average capitalization rate of acquisitions | 9.2 | % | 8.0 | % | ||||
| Acquisitions QTD December 31, 2012: | ||||||||
| Number of properties | 22 | 125 | ||||||
| Square footage of acquisitons | 212,666 | 5,150,188 | ||||||
| Cost of acquisitions (000's) (2) | $ | 32,902 | $ | 584,111 | ||||
| Average capitalization rate of acquisitions | 9.0 | % | 7.9 | % | ||||
| (1) | Excludes one vacant propery classified as held for sale. |
| (2) | Excludes acquisition and transaction related costs. |
| 13 |
American Realty Capital Properties, Inc.
Lease Expirations
| Year of Expiration | Number of Leases Expiring | Average Annual Rent (in 000's) | % of Portfolio Average Annual Rent Expiring | Leased Rentable Square Feet | % of Portfolio Rentable Square Feet Expiring | |||||||||||||||
| 2012 | — | $ | — | — | — | — | ||||||||||||||
| 2013 | — | — | — | — | — | |||||||||||||||
| 2014 | 3 | 91 | 0.4 | % | 23,778 | 1.0 | % | |||||||||||||
| 2015 | 14 | 823 | 3.6 | % | 130,726 | 5.4 | % | |||||||||||||
| 2016 | 8 | 680 | 2.9 | % | 74,926 | 3.1 | % | |||||||||||||
| 2017 | 38 | 5,182 | 22.0 | % | 470,392 | 19.5 | % | |||||||||||||
| 2018 | 35 | 7,605 | 33.0 | % | 881,510 | 36.5 | % | |||||||||||||
| 2019 | 21 | 3,946 | 16.8 | % | 146,034 | 6.0 | % | |||||||||||||
| 2020 | 6 | 804 | 3.5 | % | 54,044 | 2.2 | % | |||||||||||||
| 2021 | 8 | 1,167 | 5.1 | % | 64,874 | 2.7 | % | |||||||||||||
| 2022 | 6 | 522 | 2.3 | % | 46,340 | 1.9 | % | |||||||||||||
| Total | 139 | 20,820 | 88.5 | % | 1,892,624 | 78.3 | % | |||||||||||||
Pro Forma for ARCP and ARCT III Combined
| Year of Expiration | Number of Leases Expiring | Average Annual Rent (in 000's) | % of Portfolio Average Annual Rent Expiring | Leased Rentable Square Feet | % of Portfolio Rentable Square Feet Expiring | |||||||||||||||
| 2012 | — | $ | — | — | — | — | ||||||||||||||
| 2013 | — | — | — | — | — | |||||||||||||||
| 2014 | 4 | 314 | 0.2 | % | 26,957 | 0.2 | % | |||||||||||||
| 2015 | 14 | 823 | 0.6 | % | 130,726 | 0.9 | % | |||||||||||||
| 2016 | 8 | 680 | 0.5 | % | 74,926 | 0.5 | % | |||||||||||||
| 2017 | 38 | 5,182 | 3.6 | % | 470,392 | 3.1 | % | |||||||||||||
| 2018 | 49 | 9,349 | 6.5 | % | 955,089 | 6.2 | % | |||||||||||||
| 2019 | 24 | 4,226 | 2.9 | % | 169,299 | 1.1 | % | |||||||||||||
| 2020 | 25 | 3,390 | 2.4 | % | 153,003 | 1.0 | % | |||||||||||||
| 2021 | 31 | 9,540 | 6.6 | % | 798,418 | 5.2 | % | |||||||||||||
| 2022 | 93 | 20,294 | 14.1 | % | 3,901,523 | 25.3 | % | |||||||||||||
| Total | 286 | $ | 53,798 | 37.4 | % | 6,680,333 | 43.5 | % | ||||||||||||
| 14 |
American Realty Capital Properties, Inc.
Tenant Diversification (1)
| Tenant | Number of Properties | Square Feet | Square Feet as a % of Total Portfolio | Average Remaining Lease Term (2) | Industry | Average Annual Rent (in 000's) | Average Annual Rent as a % of Total Portfolio | |||||||||||||||||||
| Advance Auto | 20 | 149,577 | 6.2 | % | 7.8 | Auto Retail | 1,699 | 7.2 | % | |||||||||||||||||
| Citizens Bank | 59 | 291,920 | 12.1 | % | 5.2 | Retail Banking | $ | 6,726 | 28.6 | % | ||||||||||||||||
| Community Bank | 1 | 4,410 | 0.2 | % | 3.6 | Retail Banking | 36 | 0.2 | % | |||||||||||||||||
| CVS | 3 | 31,620 | 1.3 | % | 4.4 | Pharmacy | 481 | 2.0 | % | |||||||||||||||||
| Dollar General | 36 | 311,770 | 12.9 | % | 5.7 | Discount Retail | 1,607 | 6.8 | % | |||||||||||||||||
| Family Dollar | 3 | 25,265 | 1.0 | % | 9.4 | Discount Retail | 310 | 1.3 | % | |||||||||||||||||
| FedEx | 7 | 135,365 | 5.6 | % | 4.7 | Freight | 1,387 | 5.9 | % | |||||||||||||||||
| Fresenius | 1 | 6,402 | 0.3 | % | 5.6 | Healthcare | 168 | 0.7 | % | |||||||||||||||||
| GSA | 5 | 103,907 | 4.3 | % | 5.2 | Government Services | 2,736 | 11.6 | % | |||||||||||||||||
| Home Depot | 1 | 465,600 | 19.3 | % | 16.9 | Home Maintenance | 2,258 | 9.6 | % | |||||||||||||||||
| Iron Mountain | 1 | 126,664 | 5.3 | % | 5.0 | Storage Facility | 443 | 1.9 | % | |||||||||||||||||
| John Deere | 1 | 552,960 | 22.9 | % | 5.1 | Specialty Retail | 2,353 | 10.0 | % | |||||||||||||||||
| Mrs. Bairds | 1 | 75,050 | 3.1 | % | 4.4 | Consumer Goods | 631 | 2.7 | % | |||||||||||||||||
| Reckitt Benckiser | 1 | 32,000 | 1.3 | % | 5.3 | Consumer Goods | 964 | 4.1 | % | |||||||||||||||||
| Synovus Bank | 1 | 3,744 | 0.2 | % | 8.5 | Retail Banking | 335 | 1.4 | % | |||||||||||||||||
| Tractor Supply Co. | 1 | 38,507 | 1.6 | % | 5.8 | Specialty Retail | 183 | 0.8 | % | |||||||||||||||||
| Walgreen's | 4 | 57,344 | 2.4 | % | 7.2 | Pharmacy | 1,195 | 5.1 | % | |||||||||||||||||
| Total | 146 | 2,412,104 | 100.0 | % | 6.7 | $ | 23,512 | 100.0 | % | |||||||||||||||||
| (1) | Excludes one vacant propery classified as held for sale. |
| (2) | Remaining lease term in years as of December 31, 2012. |
| 15 |
American Realty Capital Properties, Inc.
Tenant Diversification (1)
Pro Forma for ARCP and ARCT III Combined
| Number of Properties | Square Feet | Square Feet as a % of Total Portfolio | Average Remaining Lease Term (2) | Industry | Average Annual Rent (in 000's) | Average Annual Rent as a % of Total Portfolio | ||||||||||||||||||||
| 7-Eleven | 4 | 10,526 | 0.1 | % | 6.9 | Gas/Convenience | 411,301 | 0.28 | % | |||||||||||||||||
| Academy Sports | 1 | 71,680 | 0.5 | % | 15.1 | Specialty Retail | 846,822 | 0.58 | % | |||||||||||||||||
| Advance Auto | 39 | 276,940 | 1.8 | % | 9.3 | Auto Retail | 3,994,836 | 2.76 | % | |||||||||||||||||
| AON Corporation | 1 | 818,686 | 5.3 | % | 12.0 | Insurance | 10,821,371 | 7.47 | % | |||||||||||||||||
| Bed Bath & Beyond | 1 | 1,035,840 | 6.7 | % | 12 | Consumer Products | 4,716,895 | 3.26 | % | |||||||||||||||||
| Bojangles | 12 | 44,032 | 0.3 | % | 12.5 | Restaurant | 1,672,889 | 1.16 | % | |||||||||||||||||
| Circle K | 3 | 9,460 | 0.1 | % | 11.0 | Gas/Convenience | 416,011 | 0.29 | % | |||||||||||||||||
| Citizens Bank | 153 | 687,088 | 4.5 | % | 8.7 | Retail Banking | 17,086,810 | 11.80 | % | |||||||||||||||||
| Community Bank | 1 | 4,410 | 0.0 | % | 3.6 | Retail Banking | 36,428 | 0.03 | % | |||||||||||||||||
| Cracker Barrel | 5 | 50,479 | 0.3 | % | 16.6 | Restaurant | 1,605,245 | 1.11 | % | |||||||||||||||||
| CVS | 8 | 86,256 | 0.6 | % | 13.3 | Pharmacy | 1,748,397 | 1.21 | % | |||||||||||||||||
| DaVita Dialysis | 3 | 205,543 | 1.3 | % | 10.9 | Healthcare | 2,833,894 | 1.96 | % | |||||||||||||||||
| Dollar General | 221 | 2,038,938 | 13.2 | % | 13.5 | Discount Retail | 17,795,263 | 12.29 | % | |||||||||||||||||
| Express Scripts | 1 | 227,467 | 1.5 | % | 9.0 | Healthcare | 3,347,011 | 2.31 | % | |||||||||||||||||
| Family Dollar | 40 | 331,382 | 2.1 | % | 9.5 | Discount Retail | 3,719,447 | 2.57 | % | |||||||||||||||||
| FedEx | 25 | 1,285,418 | 8.3 | % | 10.1 | Freight | 14,813,378 | 10.23 | % | |||||||||||||||||
| Fresenius | 8 | 57,805 | 0.4 | % | 9.6 | Medical Office | 1,551,477 | 1.07 | % | |||||||||||||||||
| GE Aviation | 1 | 303,035 | 2.0 | % | 11.9 | Aerospace | 2,511,174 | 1.73 | % | |||||||||||||||||
| General Mills | 2 | 1,872,112 | 12.1 | % | 10.3 | Consumer Products | 6,670,164 | 4.61 | % | |||||||||||||||||
| GSA | 12 | 217,615 | 1.4 | % | 7.5 | Government Services | 5,833,101 | 4.03 | % | |||||||||||||||||
| Home Depot | 1 | 465,600 | 3.0 | % | 16.9 | Home Maintenance | 2,257,998 | 1.56 | % | |||||||||||||||||
| Hanesbrands | 1 | 758,463 | 4.9 | % | 11.7 | Consumer Products | 2,366,133 | 1.63 | % | |||||||||||||||||
| Iron Mountain | 1 | 126,664 | 0.8 | % | 5.0 | Storage Facility | 443,324 | 0.31 | % | |||||||||||||||||
| John Deere | 1 | 552,960 | 3.6 | % | 5.1 | Specialty Retail | 2,353,461 | 1.62 | % | |||||||||||||||||
| Krystal | 23 | 50,447 | 0.3 | % | 19.8 | Restaurant | 2,584,188 | 1.78 | % | |||||||||||||||||
| Kum & Go | 11 | 50,099 | 0.3 | % | 18.9 | Gas/Convenience | 2,479,717 | 1.71 | % | |||||||||||||||||
| Mattress Firm | 5 | 43,941 | 0.3 | % | 10.2 | Specialty Retail | 695,208 | 0.48 | % | |||||||||||||||||
| Mrs. Baird's | 1 | 75,050 | 0.5 | % | 4.4 | Consumer Goods | 630,660 | 0.44 | % | |||||||||||||||||
| NTB | 1 | 12,244 | 0.1 | % | 10.9 | Auto Services | 145,996 | 0.10 | % | |||||||||||||||||
| NTW & Big O Tires | 2 | 17,159 | 0.1 | % | 11.1 | Auto Services | 311,701 | 0.22 | % | |||||||||||||||||
| O'Reilly Auto | 2 | 12,084 | 0.1 | % | 14.6 | Auto Retail | 166,329 | 0.11 | % | |||||||||||||||||
| Pantry Gas & Convenience | 11 | 32,393 | 0.2 | % | 9.3 | Gas/Convenience | 2,745,570 | 1.90 | % | |||||||||||||||||
| Price Rite | 1 | 42,100 | 0.3 | % | 15.2 | Supermarket | 353,583 | 0.24 | % | |||||||||||||||||
| Reckitt Benckiser | 1 | 32,000 | 0.2 | % | 5.3 | Consumer Products | 964,369 | 0.67 | % | |||||||||||||||||
| Rite Aid | 10 | 142,233 | 0.9 | % | 15.0 | Pharmacy | 3,502,974 | 2.42 | % | |||||||||||||||||
| Rubbermaid | 2 | 1,160,820 | 7.5 | % | 9.9 | Consumer Products | 3,135,094 | 2.16 | % | |||||||||||||||||
| Scotts Company | 3 | 551,249 | 3.6 | % | 10.0 | Consumer Products | 1,511,763 | 1.04 | % | |||||||||||||||||
| Shaw's Supermarkets | 1 | 59,766 | 0.4 | % | 8.2 | Supermarket | 513,116 | 0.35 | % | |||||||||||||||||
| Synovus Bank | 1 | 3,744 | 0.0 | % | 8.5 | Retail Banking | 335,379 | 0.23 | % | |||||||||||||||||
| Tire Kingdom | 1 | 6,656 | 0.0 | % | 10.7 | Auto Services | 155,146 | 0.11 | % | |||||||||||||||||
| Tractor Supply | 5 | 110,895 | 0.7 | % | 11.8 | Specialty Retail | 1,374,544 | 0.95 | % | |||||||||||||||||
| Walgreens | 25 | 357,906 | 2.3 | % | 15.5 | Pharmacy | 8,917,692 | 6.16 | % | |||||||||||||||||
| West Marine | 1 | 15,404 | 0.1 | % | 9.5 | Specialty Retail | 276,918 | 0.19 | % | |||||||||||||||||
| Williams Sonoma | 1 | 1,106,876 | 7.2 | % | 10.0 | Consumer Products | 4,178,655 | 2.89 | % | |||||||||||||||||
| Total | 653 | 15,421,465 | 100 | % | 11.4 | 144,831,432 | 100.0 | % | ||||||||||||||||||
| (1) | Excludes one vacant propery classified as held for sale. |
| (2) | Remaining lease term in years as of December 31, 2012. |
| 16 |
American Realty Capital Properties, Inc.
Tenant Industry Diversification (1)
| Industry | Number of Properties | Square Feet | Square Feet as a % of Total Portfolio | Average Annual Rent (in 000's) | Average Annual Rent as a % of Total Portfolio | |||||||||||||||
| Retail Banking | 61 | 300,074 | 12.4 | % | $ | 7,097 | 30.2 | % | ||||||||||||
| Government Services | 5 | 103,907 | 4.3 | % | 2,736 | 11.6 | % | |||||||||||||
| Specialty Retail | 2 | 591,467 | 24.5 | % | 2,536 | 10.8 | % | |||||||||||||
| Home Maintenance | 1 | 465,600 | 19.3 | % | 2,258 | 9.6 | % | |||||||||||||
| Discount Retail | 39 | 337,035 | 14.0 | % | 1,917 | 8.2 | % | |||||||||||||
| Auto Retail | 20 | 149,577 | 6.2 | % | 1,699 | 7.2 | % | |||||||||||||
| Pharmacy | 7 | 88,963 | 3.7 | % | 1,676 | 7.1 | % | |||||||||||||
| Consumer Goods | 2 | 107,050 | 4.4 | % | 1,595 | 6.8 | % | |||||||||||||
| Freight | 7 | 35,365 | 5.6 | % | 1,387 | 5.9 | % | |||||||||||||
| Storage Facility | 1 | 126,664 | 5.3 | % | 443 | 1.9 | % | |||||||||||||
| Healthcare | 1 | 6,402 | 0.3 | % | 168 | 0.7 | % | |||||||||||||
| Total | 146 | 2,412,104 | 100.0 | % | $ | 23,512 | 100.0 | % | ||||||||||||
Pro Forma for ARCP and ARCT III Combined
| Industry | Number of Properties | Square Feet | Square Feet as a % of Total Portfolio | Average Annual Rent (in 000's) | Average Annual Rent as a % of Total Portfolio | |||||||||||||||
| Auto Retail | 41 | 289,024 | 1.9 | % | 4,161 | 2.9 | % | |||||||||||||
| Auto Services | 4 | 36,059 | 0.2 | % | 613 | 0.4 | % | |||||||||||||
| Consumer Products | 11 | 6,517,360 | 42.3 | % | 23,543 | 16.3 | % | |||||||||||||
| Freight | 25 | 1,285,418 | 8.3 | % | 14,813 | 10.2 | % | |||||||||||||
| Healthcare | 4 | 433,010 | 2.8 | % | 6,181 | 4.3 | % | |||||||||||||
| Home Maintenance | 1 | 465,600 | 3.0 | % | 2,258 | 1.6 | % | |||||||||||||
| Pharmacy | 43 | 586,395 | 3.8 | % | 14,169 | 9.8 | % | |||||||||||||
| Restaurant | 40 | 144,958 | 0.9 | % | 5,862 | 4.0 | % | |||||||||||||
| Retail Banking | 155 | 695,242 | 4.5 | % | 17,459 | 12.1 | % | |||||||||||||
| Specialty Retail | 13 | 794,880 | 5.2 | % | 5,547 | 3.8 | % | |||||||||||||
| Discount Retail | 261 | 2,370,320 | 15.4 | % | 21,515 | 14.9 | % | |||||||||||||
| Supermarket | 2 | 101,866 | 0.7 | % | 867 | 0.6 | % | |||||||||||||
| Gas/Convenience | 29 | 102,478 | 0.7 | % | 6,053 | 4.2 | % | |||||||||||||
| Medical Office | 8 | 57,805 | 0.4 | % | 1,551 | 1.1 | % | |||||||||||||
| Government Services | 12 | 217,615 | 1.4 | % | 5,833 | 4.0 | % | |||||||||||||
| Consumer Goods | 1 | 75,050 | 0.5 | % | 631 | 0.4 | % | |||||||||||||
| Aerospace | 1 | 303,035 | 2.0 | % | 2,511 | 1.7 | % | |||||||||||||
| Insurance | 1 | 818,686 | 5.3 | % | 10,821 | 7.5 | % | |||||||||||||
| Storage Facility | 1 | 126,664 | 0.8 | % | 443 | 0.3 | % | |||||||||||||
| 653 | 15,421,465 | 100.0 | % | 144,831 | 100.0 | % | ||||||||||||||
| (1) | Excludes one vacant propery classified as held for sale. |
| 17 |
American Realty Capital Properties, Inc.
Property Geographic Diversification (1)
| State/Possesion | Number of Properties | Square Feet | Square Feet as a % of Total Portfolio | Average Annual Rent (in 000's) | Average Annual Rent as a % of Total Portfolio | |||||||||||||||
| Michigan | 25 | 162,024 | 6.7 | % | $ | 3,581 | 15.2 | % | ||||||||||||
| Ohio | 19 | 232,691 | 9.6 | % | 2,533 | 10.8 | % | |||||||||||||
| South Carolina | 2 | 480,014 | 19.9 | % | 2,503 | 10.6 | % | |||||||||||||
| Iowa | 1 | 552,960 | 22.9 | % | 2,353 | 10.0 | % | |||||||||||||
| New York | 13 | 87,024 | 3.6 | % | 2,237 | 9.5 | % | |||||||||||||
| Missouri | 26 | 224,509 | 9.3 | % | 1,215 | 5.2 | % | |||||||||||||
| Illinois | 10 | 77,777 | 3.4 | % | 1,209 | 5.1 | % | |||||||||||||
| Pennsylvania | 5 | 62,682 | 2.6 | % | 1,065 | 4.5 | % | |||||||||||||
| Alabama | 3 | 54,104 | 2.2 | % | 1,007 | 4.3 | % | |||||||||||||
| New Jersey | 1 | 32,000 | 1.3 | % | 964 | 4.1 | % | |||||||||||||
| Texas | 3 | 120,457 | 5.0 | % | 925 | 3.9 | % | |||||||||||||
| Georgia | 9 | 75,122 | 3.1 | % | 838 | 3.6 | % | |||||||||||||
| Kentucky | 5 | 40,625 | 1.7 | % | 543 | 2.3 | % | |||||||||||||
| Indiana | 2 | 28,285 | 1.2 | % | 426 | 1.8 | % | |||||||||||||
| Florida | 2 | 12,644 | 0.5 | % | 392 | 1.7 | % | |||||||||||||
| California | 1 | 41,868 | 1.7 | % | 288 | 1.2 | % | |||||||||||||
| Virginia | 1 | 11,281 | 0.5 | % | 264 | 1.1 | % | |||||||||||||
| Vermont | 3 | 12,492 | 0.5 | % | 237 | 1.0 | % | |||||||||||||
| Arkansas | 5 | 43,786 | 1.8 | % | 181 | 0.8 | % | |||||||||||||
| North Carolina | 1 | 6,402 | 0.3 | % | 168 | 0.7 | % | |||||||||||||
| Tennessee | 1 | 10,722 | 0.4 | % | 150 | 0.6 | % | |||||||||||||
| Connecticut | 2 | 5,592 | 0.2 | % | 124 | 0.5 | % | |||||||||||||
| New Hampshire | 2 | 6,872 | 0.3 | % | 112 | 0.5 | % | |||||||||||||
| Delaware | 1 | 4,610 | 0.2 | % | 91 | 0.4 | % | |||||||||||||
| Oklahoma | 2 | 18,044 | 0.7 | % | 76 | 0.3 | % | |||||||||||||
| Kansas | 1 | 7,517 | 0.3 | % | 30 | 0.1 | % | |||||||||||||
| Total | 146 | 2,412,104 | 100.0 | % | $ | 23,512 | 100.0 | % | ||||||||||||
| (1) | Excludes one vacant propery classified as held for sale. |
| 18 |
American Realty Capital Properties, Inc.
Property Geographic Diversification (1)
Pro Forma for ARCP and ARCT III Combined
| State/Possesion | Number of Properties | Square Feet | Square Feet as a % of Total Portfolio | Average Annual Rent (in 000's) | Average Annual Rent as a % of Total Portfolio | |||||||||||||||
| Iowa | 8 | 610,065 | 4.0 | % | $ | 3,215 | 2.20 | % | ||||||||||||
| Kansas | 15 | 1,276,763 | 8.3 | % | 4,096 | 2.80 | % | |||||||||||||
| Kentucky | 14 | 185,034 | 1.2 | % | 3,128 | 2.20 | % | |||||||||||||
| Louisiana | 19 | 190,646 | 1.2 | % | 2,167 | 1.50 | % | |||||||||||||
| Massachusetts | 15 | 115,996 | 0.8 | % | 2,148 | 1.50 | % | |||||||||||||
| Michigan | 46 | 430,397 | 2.8 | % | 7,695 | 5.30 | % | |||||||||||||
| Minnesota | 5 | 167,582 | 1.1 | % | 1,150 | 0.80 | % | |||||||||||||
| Mississippi | 29 | 1,335,566 | 8.6 | % | 7,104 | 4.90 | % | |||||||||||||
| Missouri | 69 | 852,021 | 5.5 | % | 8,760 | 6.00 | % | |||||||||||||
| Montana | 1 | 45,832 | 0.3 | % | 697 | 0.50 | % | |||||||||||||
| Nebraska | 1 | 8,050 | 0.1 | % | 82 | 0.10 | % | |||||||||||||
| Nevada | 6 | 59,903 | 0.4 | % | 1,366 | 0.90 | % | |||||||||||||
| New Hampshire | 10 | 65,328 | 0.4 | % | 1,349 | 0.90 | % | |||||||||||||
| New Jersey | 6 | 79,719 | 0.5 | % | 2,475 | 1.70 | % | |||||||||||||
| New Mexico | 3 | 22,506 | 0.1 | % | 325 | 0.20 | % | |||||||||||||
| New York | 17 | 292,768 | 1.9 | % | 6,766 | 4.70 | % | |||||||||||||
| North Carolina | 28 | 980,732 | 6.4 | % | 7,549 | 5.20 | % | |||||||||||||
| North Dakota | 4 | 31,318 | 0.2 | % | 572 | 0.40 | % | |||||||||||||
| Ohio | 46 | 1,004,986 | 6.4 | % | 7,872 | 5.40 | % | |||||||||||||
| Oklahoma | 12 | 233,639 | 1.5 | % | 1,663 | 1.10 | % | |||||||||||||
| Pennsylvania | 57 | 293,139 | 1.9 | % | 6,775 | 4.70 | % | |||||||||||||
| Rhode Island | 5 | 23,488 | 0.2 | % | 636 | 0.40 | % | |||||||||||||
| South Carolina | 15 | 579,067 | 3.8 | % | 5,180 | 3.60 | % | |||||||||||||
| South Dakota | 1 | 9,180 | 0.1 | % | 90 | 0.10 | % | |||||||||||||
| Tennessee | 12 | 194,719 | 1.3 | % | 2,167 | 1.50 | % | |||||||||||||
| Texas | 53 | 634,743 | 4.1 | % | 6,547 | 4.50 | % | |||||||||||||
| Vermont | 4 | 15,432 | 0.1 | % | 335 | 0.20 | % | |||||||||||||
| Virginia | 12 | 100,591 | 0.7 | % | 1,833 | 1.30 | % | |||||||||||||
| Washington | 3 | 212,756 | 1.4 | % | 2,834 | 2.00 | % | |||||||||||||
| West Virginia | 3 | 31,491 | 0.2 | % | 790 | 0.50 | % | |||||||||||||
| Wisconsin | 3 | 27,724 | 0.2 | % | 226 | 0.20 | % | |||||||||||||
| Wyoming | 2 | 11,958 | 0.1 | % | 361 | 0.40 | % | |||||||||||||
| 653 | 15,421,465 | 100.0 | % | $ | 144,831 | 100.0 | % | |||||||||||||
| (1) | 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 is 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 certain 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 certain 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.
FFO and AFFO are not in accordance with, or a substitute for, measures prepared in accordance with U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, FFO and AFFO are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures such as FFO of AFFO have limitations that they do not reflect all of the amounts associated with ARCP’s and ARCT III’s results of operations that would be reflected in measures determined in accordance with U.S. GAAP. These measures should only be used to evaluate ARCP’s and ARCT III’s performance in conjunction with the corresponding U.S. GAAP measures.
Investment grade - a determination made by major credit rating agencies.
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