NEW YORK, Feb. 24, 2021
/PRNewswire/ -- American Finance Trust, Inc. (Nasdaq: AFIN)
("AFIN" or the "Company"), a real estate investment trust focused
on acquiring and managing a diversified portfolio of primarily
service-oriented and traditional retail and distribution related
commercial real estate properties located primarily in the U.S.,
announced today its financial and operating results for the quarter
and year ended December 31, 2020.
Fourth Quarter 2020 and Subsequent Events
Highlights
- Revenue increased 1% to $77.2
million from $76.2 million in
the fourth quarter 2019
- Net loss attributable to common stockholders was $8.6 million, or $0.08 per diluted common share, compared to a net
loss of $4.8 million, or $0.04 per diluted common share for the fourth
quarter 2019
- Cash Net Operating income ("Cash NOI") grew by 2% to
$58.7 million as compared to
$57.7 million for the fourth quarter
2019
- Funds from Operations ("FFO") grew by 14% to $25.5 million, or $0.23 per diluted share, compared to $22.4 million, or $0.21 per diluted share, for the fourth quarter
2019
- Adjusted Funds from Operations ("AFFO") increased 3% to
$26.1 million, or $0.24 per diluted share, from $25.2 million, or $0.24 per diluted share, in the prior year fourth
quarter and increased 2.4% from $25.5
million, or $0.23 per share in
the third quarter 2020
- Raised gross proceeds of $88.4
million from a public offering of 7.375% Series C Cumulative
Redeemable Perpetual Preferred Stock
- Conservative Net Leverage1 of 40.2% and ample
Liquidity2 of $228.9
million at year end
- Closed on the acquisition of 35 properties for an aggregate
contract purchase price3 of $61.3
million at a weighted average capitalization rate of
9.2%4
- Collected over 96% of cash rent due in fourth quarter
20205, including 99% in single tenant portfolio, 88% in
the multi-tenant portfolio, and 99% among the top 20
tenants6
- Portfolio occupancy of 93.9%, including 99.4% in the single
tenant portfolio
- Executed occupancy7 of 88.2% in multi-tenant
portfolio, exceeding pre-COVID levels, giving effect to
approximately 215,000 square feet, net, of pipeline
leases8, expected to add $1.6
million of annual rent
- Subsequent to quarter end, January
2021 cash rent collection of 97% as of February 15, 2021 including 99% in the single
tenant portfolio and 92% in the multi-tenant portfolio
Full Year 2020 Highlights
- Acquired 107 properties for an aggregate contract purchase
price of $218.3 million at an 8.6%
weighted average capitalization rate with weighted average
remaining lease term of 14.3 years at closing
- Revenue increased 2% year-over-year to $305.2 million as compared to $299.7 million in prior year
- Net loss attributable to stockholders was $46.7 million, or $0.43 per diluted common share, compared to a net
loss of $3.1 million, or $0.03 per diluted common share in prior year
- Cash NOI was $227.3 million as
compared to $231.3 million in the
prior year
- FFO was $97.0 million, or
$0.90 per diluted share compared to
$98.6 million, or $0.93 per diluted share, in the prior year
- AFFO was $98.0 million, or
$0.90 per diluted common share
compared to $104.9 million, or
$0.99 per diluted common share, in
the prior year
- Dividends paid of $90.7
million
- High quality portfolio with 61.5% of tenants in single-tenant
portfolio and 70% of the top 20 tenants portfolio wide rated as
investment grade or implied investment grade9
- Annual rent escalators10 with a weighted-average of
1.3% per year in with 77.7% of leases providing contractually
embedded rent growth
- Executed lease extensions for the full year averaging 36 months
and totaling $43.8 million in net
additional rent in exchange for short-term rent deferrals or
credits
- Refinanced over $840.0 million of
near-term debt maturities, which contributed to a reduction in
interest expense of $1.0 million in
the fourth quarter of 2020, when compared to third quarter
2020
- Weighted average debt maturity increased to 4.8 years from 3.8
years at year end
- Weighted average interest rate improved to 3.8% from 4.3% as of
year end
CEO Comments
"We reported strong fourth quarter and full year results that
reflect substantial momentum in acquisitions, leasing, asset
management, and reducing our cost of capital" said Michael Weil, CEO of AFIN. "Our high-credit,
necessity focused retail portfolio has proven its value as we
navigated the challenges presented by the pandemic. We delivered on
the targets we set last February, including growing our portfolio,
improving dividend coverage, and de-risking our balance sheet by
successfully refinancing near-term debt maturities at excellent
rates that reduced interest expense by approximately
$1 million over last quarter. We produced consecutive quarters
of rent collection growth and executed lease extensions that added
$44 million in net additional rent. We believe we are well
positioned to continue to pursue accretive real estate, capital
market and financing transactions that will grow our portfolio and
further strengthen our balance sheet while continuing to execute
our proven investment strategy."
Financial Results
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
(In thousands,
except per share data)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue from
tenants
|
|
$
|
77,237
|
|
|
$
|
76,231
|
|
|
$
|
305,224
|
|
|
$
|
299,744
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common stockholders
|
|
$
|
(8,603)
|
|
|
$
|
(4,827)
|
|
|
$
|
(46,650)
|
|
|
$
|
(3,101)
|
|
Net loss per common
share (a)
|
|
$
|
(0.08)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.43)
|
|
|
$
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
FFO attributable to
common stockholders
|
|
$
|
25,481
|
|
|
$
|
22,412
|
|
|
$
|
97,035
|
|
|
$
|
98,584
|
|
FFO per common share
(a)
|
|
$
|
0.23
|
|
|
$
|
(0.21)
|
|
|
$
|
0.90
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
AFFO attributable to
common stockholders
|
|
$
|
26,073
|
|
|
$
|
25,220
|
|
|
$
|
97,969
|
|
|
$
|
104,888
|
|
AFFO per common share
(a)
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.90
|
|
|
$
|
0.99
|
|
|
|
(a)
|
All per share data
based on 108,436,329 and 107,286,620 diluted weighted-average
shares outstanding for the three months ended December 31,
2020 and 2019, respectively, and 108,404,093 and 106,397,296 for
the years ended December 31, 2020 and 2019,
respectively.
|
Real Estate Portfolio
The Company's portfolio consisted of 920 net lease properties
located in 46 states and the District of
Columbia and comprised of 19.3 million rentable square feet
as of December 31, 2020. Portfolio metrics include:
- 93.9% leased with 8.8 years weighted-average remaining lease
term
- 77.7% of leases have contractual rent increases of 1.3% on
average based on annualized straight-line rent
- 61.5% of single-tenant portfolio and 31.2% of multi-tenant
portfolio anchor tenant annualized straight-line rent derived from
investment grade or implied investment grade tenants
- 80% retail properties, 10% industrial and distribution
properties and 10% office properties (based on annualized
straight-line rent)
- 71.0% of the retail portfolio, based on straight line rent, is
focused on either service11 or experiential
retail12 giving the company strong alignment with
"e-commerce resistant" real estate
Property Acquisitions
During the three months ended December 31, 2020, the
Company acquired 35 properties for an aggregate contract purchase
price of $61.3 million at a weighted
average capitalization rate of 9.2%.
For the year ended December 31, 2020, AFIN acquired 107
properties for an aggregate contract purchase price of $218.3 million with a weighted-average cash
capitalization rate13 of 7.9% and a weighted-average
capitalization rate of 8.6%.
Capital Structure and Liquidity Resources
As of December 31, 2020, the Company had a total borrowing
capacity under its credit facility of $406.9
million. Of this amount, $280.9
million was outstanding under the credit facility as of
December 31, 2020 and $126.0
million remained available for future borrowing. As of
December 31, 2020, the Company had $102.9 million of cash and cash equivalents. The
Company's net debt14 to gross asset value15
was 40.2%, with net debt of $1.7
billion.
The Company's percentage of fixed rate debt was 82.6% as of
December 31, 2020. The Company's total combined debt had a
weighted-average interest rate cost of 3.8%16,
resulting in an interest coverage ratio of 3.0
times17.
During the fourth quarter of 2020, the Company completed a
public offering of 3,535,700 shares of 7.375% Series C Cumulative
Redeemable Perpetual Preferred Stock for gross proceeds of
$88.4 million. Also, during the year
ended December 31, 2020, the Company
sold 924,778 shares of Series A preferred stock, generating gross
proceeds of $23.3 million from sales
through the Company's "at the market" equity offering program for
its Series A preferred stock.
Footnotes/Definitions
1 Net Leverage represents net debt
divided by gross asset value shown as a percentage.
2 Liquidity includes the amount available for
future borrowings under the Company's credit facility of
$126.0 million and cash and cash
equivalents of $102.9 million. The
borrowing capacity and availability for future borrowings under the
Company's credit facility is based on the borrowing base
thereunder, which is the pool of eligible otherwise unencumbered
real estate assets as of December 31,
2020. The credit facility currently requires the Company to
maintain a combination of cash, cash equivalents, and amounts
available for future borrowings under the credit facility of not
less than $100.0 million, which could
limit the Company's ability to incur additional indebtedness and
use cash that would otherwise be available to the Company.
3 Represents the contract purchase price and
excludes acquisition costs which are capitalized per GAAP.
4 Capitalization rate is a rate of return on a
real estate investment property based on the expected, annualized
straight-lined rental income that the property will generate under
its existing lease. Capitalization rate is calculated by dividing
the annualized straight-lined rental income the property will
generate (before debt service and depreciation and after fixed
costs and variable costs) by the purchase price of the property.
The weighted-average capitalization rate is based upon square
feet.
5 This information may not be indicative
of any future period. The impact of the COVID-19 pandemic on the
Company's rental revenue for the first quarter of 2021 and
thereafter cannot be determined at present. The ultimate impact on
our future results of operations and liquidity will depend on the
overall length and severity of the COVID-19 pandemic, which
management is unable to predict. With respect to ongoing
negotiations of rent deferrals or credits, there can be no
assurance that these negotiations will be successful and will lead
to formal agreements on favorable terms, or at all. With respect to
the other remaining unpaid amounts, there can be no assurance the
Company will be successful in its efforts to collect or defer these
amounts on a timely basis, or at all.
6 Top 20 tenants based on fourth quarter 2020
cash rents.
7 Includes occupancy as of December 31, 2020 as well as all leases fully
executed by both parties as of December 31,
2020 where the tenants has yet to take possession as of such
date.
8 Includes (i) all leases fully executed
by both parties as of January 31,
2021, but after December 31,
2020, and (ii) all leases under negotiation with an executed
LOI by both parties as of January 31,
2020. Leasing pipeline includes six new leases totaling
approximately 220,000 square feet, net of one lease termination for
5,000 square feet during this period. There can be no assurance
that such leases will commence on their current terms, or at all.
Leasing pipeline should not be considered an indication of future
performance
9 As used herein, investment grade includes
both actual investment grade ratings of the tenant or guarantor, if
available, or implied investment grade. Implied investment grade
may include actual ratings of tenant parent, guarantor parent
(regardless of whether or not the parent has guaranteed the
tenant's obligation under the lease) or by using a proprietary
Moody's analytical tool, which generates an implied rating by
measuring a company's probability of default. The term "parent" for
these purposes includes any entity, including any governmental
entity, owning more than 50% of the voting stock in a tenant.
Ratings information is as of December 31, 2020. Single-tenant
portfolio tenants are 50.4% actual investment grade rated and 11.1%
implied investment grade rate. Anchor tenants in the multi-tenant
portfolio are 20.2% actual investment grade rated and 11.0% implied
investment grade rated.
10 Based on annualized straight-line rent as of
December 31, 2020. Contractual rent increases include fixed
percent or actual increases, or CPI-indexed increases.
11 Service retail is defined as single-tenant
retail properties leased to tenants in the retail banking,
restaurant, grocery, pharmacy, gas/convenience,
fitness, healthcare, and auto services sectors.
12 Experiential retail is defined as
multi-tenant properties leased to tenants in the restaurant,
discount retail, entertainment, salon/beauty, and grocery sectors,
among others.
13 Cash capitalization rate is calculated
by dividing the annualized cash rental income the property is
expected to generate and the purchase price of the property. For
acquisitions, cash capitalization rate is a rate of return on a
real estate investment property based on the expected, annualized
cash rental income during the first year of ownership that the
property will generate under its existing lease. Weighted average
cash capitalization rate is based upon square feet.
14 Total debt of $1.8
billion less cash and cash equivalents of $102.9 million as of December 31, 2020.
Excludes the effect of
deferred financing costs, net, mortgage premiums, net
and includes the effect of cash and cash equivalents.
15 Defined as the carrying value of total
assets plus accumulated depreciation and amortization as of
December 31, 2020.
16
Weighted based on the outstanding principal balance of the debt.
17 The interest coverage ratio is
calculated by dividing adjusted EBITDA by cash paid for interest
(interest expense) less amortization of deferred financing
costs, net, and change in accrued
interest and amortization of mortgage premiums
on borrowings) for the quarter ended December 31, 2020.
Webcast and Conference Call
AFIN will host a webcast and call on February 25, 2021 at 11:00
a.m. ET to discuss its financial and operating results. This
webcast will be broadcast live over the Internet and can be
accessed by all interested parties through the AFIN website,
www.americanfinancetrust.com, in the "Investor Relations"
section.
Dial-in instructions for the conference call and the replay are
outlined below.
To listen to the live call, please go to AFIN's "Investor
Relations" section of the website at least 15 minutes prior to the
start of the call to register and download any necessary audio
software. For those who are not able to listen to the live
broadcast, a replay will be available shortly after the call on the
AFIN website at www.americanfinancetrust.com.
Live Call
Dial-In (Toll Free): 1-888-317-6003
International Dial-In: 1-412-317-6061
Canada Dial-In (Toll Free): 1-866-605-3851
Participant Elite Entry Number: 3679967
Conference Replay*
Domestic Dial-In (Toll Free):
1-877-344-7529
International Dial-In: 1-412-317-0088
Canada Dial-In (Toll Free): 1-855-669-9658
Conference Number: 10151999
*Available one hour after the end of the conference call through
May 25, 2021.
About American Finance Trust, Inc.
American Finance Trust, Inc. (Nasdaq: AFIN) is a publicly traded
real estate investment trust listed on the Nasdaq focused on
acquiring and managing a diversified portfolio of primarily
service-oriented and traditional retail and distribution related
commercial real estate properties in the U.S. Additional
information about AFIN can be found on its website at
www.americanfinancetrust.com.
Supplemental Schedules
The Company will file supplemental information packages with the
Securities and Exchange Commission (the "SEC") to provide
additional disclosure and financial information. Once posted, the
supplemental package can be found under the "Presentations" tab in
the Investor Relations section of AFIN's website at
www.americanfinancetrust.com and on the SEC website at
www.sec.gov.
Important Notice
The statements in this press release that are not historical
facts may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause actual
results or events to be materially different. The words
"anticipates," "believes," "expects," "estimates," "projects,"
"plans," "intends," "may," "will," "would" and similar expressions
are intended to identify forward-looking statements, although not
all forward-looking statements contain these identifying words.
These forward-looking statements are subject to risks,
uncertainties and other factors, many of which are outside of the
Company's control, which could cause actual results to differ
materially from the results contemplated by the forward-looking
statements. These risks and uncertainties include the potential
adverse effects of the ongoing global COVID-19 pandemic, including
actions taken to contain or treat COVID-19, on the Company, the
Company's tenants and the global economy and financial markets and
that any potential future acquisition is subject to market
conditions and capital availability and may not be identified or
completed on favorable terms, or at all, as well as those risks and
uncertainties set forth in the Risk Factors section of the
Company's Annual Report on Form 10-K for the year ended
December 31, 2019 filed on
February 27, 2020 and all other
filings with the SEC after that date, as such risks, uncertainties
and other important factors may be updated from time to time in the
Company's subsequent reports. Further, forward looking statements
speak only as of the date they are made, and the Company undertakes
no obligation to update or revise any forward-looking statement to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results, unless required to do so by
law.
Accounting Treatment of Rent Deferrals/Abatements
The majority of the concessions granted to the Company's tenants
as a result of the COVID-19 pandemic are rent deferrals or
temporary rent abatements with the original lease term unchanged
and collection of deferred rent deemed probable. The Company's
revenue recognition policy requires that it must be probable that
the Company will collect virtually all of the lease payments due
and does not provide for partial reserves, or the ability to assume
partial recovery. In light of the COVID-19 pandemic, the FASB and
SEC agreed that for leases where the total lease cash flows will
remain substantially the same or less than those after the COVID-19
related effects, companies may choose to forgo the evaluation of
the enforceable rights and obligations of the original lease
contract as a practical expedient and account for rent concessions
as if they were part of the enforceable rights and obligations of
the parties under the existing lease contract. As a result, rental
revenue used to calculate Net Income and NAREIT FFO has not been,
and the Company does not expect it to be, significantly impacted by
these types of deferrals. In addition, since the Company currently
believes that these deferral amounts are collectable, they have
been excluded from the increase in straight-line rent for AFFO
purposes the amounts recognized under GAAP relating to these types
of rent deferrals. Conversely, for abatements where contractual
rent has been reduced, the reduction is reflected over the
remaining lease term for accounting purposes but represents a
permanent reduction and the Company has, accordingly, reduced its
AFFO.
Contacts:
Investors and Media:
Email: investorrelations@americanfinancetrust.com
Phone: (866) 902-0063
American Finance
Trust, Inc.
|
Consolidated
Balance Sheets
|
(In thousands.
except share and per share data)
|
|
|
December
31,
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Real estate
investments, at cost:
|
|
|
|
Land
|
$
|
723,316
|
|
|
$
|
685,889
|
|
Buildings, fixtures
and improvements
|
2,830,508
|
|
|
2,681,485
|
|
Acquired intangible
lease assets
|
454,245
|
|
|
448,175
|
|
Total real estate
investments, at cost
|
4,008,069
|
|
|
3,815,549
|
|
Less: accumulated
depreciation and amortization
|
(639,367)
|
|
|
(529,052)
|
|
Total real
estate investments, net
|
3,368,702
|
|
|
3,286,497
|
|
Cash and cash
equivalents
|
102,860
|
|
|
81,898
|
|
Restricted
cash
|
10,537
|
|
|
17,942
|
|
Deposits for real
estate investments
|
137
|
|
|
85
|
|
Deferred costs,
net
|
16,663
|
|
|
17,467
|
|
Straight-line rent
receivable
|
66,581
|
|
|
46,976
|
|
Operating lease
right-of-use assets
|
18,546
|
|
|
18,959
|
|
Prepaid expenses and
other assets (including $1,939 and $503 due from related parties as
of
December 31, 2020 and 2019,
respectively)
|
23,941
|
|
|
19,188
|
|
Assets held for
sale
|
—
|
|
|
1,176
|
|
Total
assets
|
$
|
3,607,967
|
|
|
$
|
3,490,188
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Mortgage notes
payable, net
|
$
|
1,490,798
|
|
|
$
|
1,310,943
|
|
Credit
facility
|
280,857
|
|
|
333,147
|
|
Below-market lease
liabilities, net
|
78,674
|
|
|
84,041
|
|
Accounts payable and
accrued expenses (including $273 and $1,153 due to related parties
as of
December 31, 2020 and 2019,
respectively)
|
25,210
|
|
|
26,817
|
|
Operating lease
liabilities
|
19,237
|
|
|
19,318
|
|
Derivative
liabilities, at fair value
|
123
|
|
|
—
|
|
Deferred rent and
other liabilities
|
9,794
|
|
|
10,392
|
|
Dividends
payable
|
3,675
|
|
|
3,300
|
|
Total
liabilities
|
1,908,368
|
|
|
1,787,958
|
|
|
|
|
|
7.50% Series A
cumulative redeemable perpetual preferred stock, $0.01 par value,
liquidation
preference $25.00 per share,
8,796,000 shares authorized, 7,842,008 and 6,917,230 issued
and
outstanding as of December 31,
2020 and 2019, respectively
|
79
|
|
|
69
|
|
7.375% Series C
cumulative redeemable perpetual preferred stock, $0.01 par value,
liquidation
preference $25.00 per share,
3,680,000 shares authorized and 3,535,700 issued and
outstanding
as of December 31, 2020 and none
authorized, issued, or outstanding as of December 31,
2019
|
35
|
|
|
—
|
|
Common stock, $0.01
par value per share, 300,000,000 shares authorized, 108,837,209
and
108,475,266 shares issued and
outstanding as of December 31, 2020 and 2019,
respectively
|
1,088
|
|
|
1,085
|
|
Additional paid-in
capital
|
2,723,678
|
|
|
2,615,089
|
|
Accumulated other
comprehensive loss
|
(123)
|
|
|
—
|
|
Distributions in
excess of accumulated earnings
|
(1,055,680)
|
|
|
(932,912)
|
|
Total stockholders'
equity
|
1,669,077
|
|
|
1,683,331
|
|
Non-controlling
interests
|
30,522
|
|
|
18,899
|
|
Total
equity
|
1,699,599
|
|
|
1,702,230
|
|
Total liabilities
and equity
|
$
|
3,607,967
|
|
|
$
|
3,490,188
|
|
American Finance
Trust, Inc.
|
Consolidated
Statements of Operations
|
(In thousands,
except share and per share data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Revenue from
tenants
|
$
|
77,237
|
|
|
$
|
76,231
|
|
|
$
|
305,224
|
|
|
$
|
299,744
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Asset management fees
to related party
|
7,088
|
|
|
6,777
|
|
|
27,829
|
|
|
25,695
|
|
Property operating
expense
|
13,247
|
|
|
14,344
|
|
|
52,296
|
|
|
52,715
|
|
Impairment of real
estate investments
|
1,408
|
|
|
—
|
|
|
12,910
|
|
|
827
|
|
Acquisition,
transaction and other costs [1]
|
241
|
|
|
3,022
|
|
|
2,921
|
|
|
6,257
|
|
Equity-based
compensation [2]
|
3,343
|
|
|
3,211
|
|
|
13,036
|
|
|
12,717
|
|
General and
administrative
|
4,179
|
|
|
4,300
|
|
|
19,683
|
|
|
20,375
|
|
Depreciation and
amortization
|
32,730
|
|
|
31,802
|
|
|
137,459
|
|
|
124,713
|
|
Goodwill
impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
1,605
|
|
Total operating
expenses
|
62,236
|
|
|
63,456
|
|
|
266,134
|
|
|
244,904
|
|
Operating income
before gain on sale of real
estate investments
|
15,001
|
|
|
12,775
|
|
|
39,090
|
|
|
54,840
|
|
Gain on sale/exchange
of real estate
investments
|
—
|
|
|
4,519
|
|
|
6,456
|
|
|
23,690
|
|
Operating
income
|
15,001
|
|
|
17,294
|
|
|
45,546
|
|
|
78,530
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(19,689)
|
|
|
(18,990)
|
|
|
(78,467)
|
|
|
(77,994)
|
|
Other
income
|
20
|
|
|
367
|
|
|
1,024
|
|
|
3,627
|
|
Loss on non-designated
derivatives
|
(9)
|
|
|
—
|
|
|
(9)
|
|
|
—
|
|
Total other expense,
net
|
(19,678)
|
|
|
(18,623)
|
|
|
(77,452)
|
|
|
(74,367)
|
|
Net (loss)
income
|
(4,677)
|
|
|
(1,329)
|
|
|
(31,906)
|
|
|
4,163
|
|
Net loss (income)
attributable to non-
controlling interests
|
5
|
|
|
(1)
|
|
|
44
|
|
|
(16)
|
|
Allocation for
preferred stock
|
(3,931)
|
|
|
(3,497)
|
|
|
(14,788)
|
|
|
(7,248)
|
|
Net loss
attributable to common
stockholders
|
$
|
(8,603)
|
|
|
$
|
(4,827)
|
|
|
$
|
(46,650)
|
|
|
$
|
(3,101)
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
Net Loss Per Share:
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding — Basic
and Diluted
|
108,436,329
|
|
|
107,286,620
|
|
|
108,404,093
|
|
|
106,397,296
|
|
Net loss per share
attributable to common
stockholders — Basic and
Diluted
|
$
|
(0.08)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.43)
|
|
|
$
|
(0.03)
|
|
|
______
|
|
[1]
|
For the three months
and year ended December 31, 2020, includes litigation costs related
to AFIN's 2017 merger with American Realty Capital - Retail Centers
of America, Inc. (the "Merger") of $0.1 million and $0.8 million,
respectively. For the three months and year ended
December 31, 2019, includes litigation costs related to the Merger
of $0.7 million and $1.3 million, respectively.
|
|
|
[2]
|
For the three months
and year ended December 31, 2020, includes expense related to the
Company's restricted common shares of $0.4 million and $1.2
million, respectively, that was previously classified as general
and administrative expenses. For the three months and year ended
December 31, 2019, includes expense related to the Company's
restricted common shares of $0.3 million and $1.2 million,
respectively.
|
American Finance
Trust, Inc.
|
Quarterly
Reconciliation of Non-GAAP Measures (Unaudited)
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
Year Ended
December 31,
2020
|
|
|
March 31,
2020
|
|
June 30,
2020
|
|
September 30,
2020
|
|
December 31,
2020
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,543)
|
|
|
$
|
(18,204)
|
|
|
$
|
(3,482)
|
|
|
$
|
(4,677)
|
|
|
$
|
(31,906)
|
|
Depreciation and
amortization
|
|
34,335
|
|
|
35,443
|
|
|
34,951
|
|
|
32,730
|
|
|
137,459
|
|
Interest
expense
|
|
19,106
|
|
|
18,801
|
|
|
20,871
|
|
|
19,689
|
|
|
78,467
|
|
EBITDA
|
|
47,898
|
|
|
36,040
|
|
|
52,340
|
|
|
47,742
|
|
|
184,020
|
|
Impairment of real
estate assets
|
|
—
|
|
|
11,502
|
|
|
—
|
|
|
1,408
|
|
|
12,910
|
|
Acquisition,
transaction and other
costs [1]
|
|
452
|
|
|
721
|
|
|
1,507
|
|
|
241
|
|
|
2,921
|
|
Equity-based
compensation [2]
|
|
3,211
|
|
|
3,247
|
|
|
3,235
|
|
|
3,343
|
|
|
13,036
|
|
Gain on sale of real
estate investments
|
|
(1,440)
|
|
|
(2,838)
|
|
|
(2,178)
|
|
|
—
|
|
|
(6,456)
|
|
Other
income
|
|
(72)
|
|
|
(61)
|
|
|
(871)
|
|
|
(20)
|
|
|
(1,024)
|
|
Loss on non-designated
derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
Adjusted
EBITDA
|
|
50,049
|
|
|
48,611
|
|
|
54,033
|
|
|
52,723
|
|
|
205,416
|
|
Asset management
fees to related party
|
|
6,905
|
|
|
6,918
|
|
|
6,918
|
|
|
7,088
|
|
|
27,829
|
|
General and
administrative
|
|
5,328
|
|
|
6,864
|
|
|
3,312
|
|
|
4,179
|
|
|
19,683
|
|
NOI
|
|
62,282
|
|
|
62,393
|
|
|
64,263
|
|
|
63,990
|
|
|
252,928
|
|
Amortization of
market lease and
other intangibles, net
|
|
(992)
|
|
|
(2,289)
|
|
|
(1,652)
|
|
|
(1,216)
|
|
|
(6,149)
|
|
Straight-line
rent
|
|
(2,265)
|
|
|
(5,442)
|
|
|
(7,743)
|
|
|
(4,060)
|
|
|
(19,510)
|
|
Cash
NOI
|
|
$
|
59,025
|
|
|
$
|
54,662
|
|
|
$
|
54,868
|
|
|
$
|
58,714
|
|
|
$
|
227,269
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Paid for
Interest:
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
$
|
19,106
|
|
|
$
|
18,801
|
|
|
$
|
20,871
|
|
|
$
|
19,689
|
|
|
$
|
78,467
|
|
Amortization of deferred financing costs,
net and change in accrued
interest
|
|
(1,712)
|
|
|
(990)
|
|
|
(2,782)
|
|
|
(2,362)
|
|
|
(7,846)
|
|
Amortization of mortgage premiums
and discounts on
borrowings
|
|
560
|
|
|
589
|
|
|
521
|
|
|
456
|
|
|
2,126
|
|
Total
cash paid for interest
|
|
$
|
17,954
|
|
|
$
|
18,400
|
|
|
$
|
18,610
|
|
|
$
|
17,783
|
|
|
$
|
72,747
|
|
|
——
|
|
|
[1]
|
For the three months
ended March 31, 2020, June 30, 2020, September 30, 2020 and
December 31, 2020, includes litigation costs related to the Merger
of $0.3 million, $0.3 million, $0.2 million and $0.1 million
respectively.
|
|
|
[2]
|
Includes expense
related to the amortization of the Company's restricted common
shares and LTIP Units.
|
American Finance
Trust, Inc.
|
Quarterly
Reconciliation of Non-GAAP Measures (Unaudited)
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
Year Ended
December 31,
2020
|
|
|
March 31,
2020
|
|
June 30,
2020
|
|
September 30,
2020
|
|
December 31,
2020
|
|
Net loss attributable
to common
stockholders (in accordance
with
GAAP)
|
|
$
|
(9,153)
|
|
|
$
|
(21,803)
|
|
|
$
|
(7,091)
|
|
|
$
|
(8,603)
|
|
|
$
|
(46,650)
|
|
Impairment of real
estate investments
|
|
—
|
|
|
11,502
|
|
|
—
|
|
|
1,408
|
|
|
12,910
|
|
Depreciation and
amortization
|
|
34,335
|
|
|
35,443
|
|
|
34,951
|
|
|
32,730
|
|
|
137,459
|
|
Gain on sale/exchange
of real estate
investments
|
|
(1,440)
|
|
|
(2,838)
|
|
|
(2,178)
|
|
|
—
|
|
|
(6,456)
|
|
Proportionate share
of adjustments for
non-controlling interests to arrive
at
FFO
|
|
(52)
|
|
|
(71)
|
|
|
(51)
|
|
|
(54)
|
|
|
(228)
|
|
FFO attributable
to common
stockholders
|
|
23,690
|
|
|
22,233
|
|
|
25,631
|
|
|
25,481
|
|
|
97,035
|
|
Acquisition,
transaction and other costs [1]
|
|
452
|
|
|
721
|
|
|
1,507
|
|
|
241
|
|
|
2,921
|
|
Litigation cost
reimbursements related to
the Merger [2]
|
|
(9)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
Legal fees and
expenses — COVID-19
lease disputes
[3]
|
|
—
|
|
|
242
|
|
|
16
|
|
|
11
|
|
|
269
|
|
Amortization of
market lease and other
intangibles, net
|
|
(992)
|
|
|
(2,289)
|
|
|
(1,652)
|
|
|
(1,216)
|
|
|
(6,149)
|
|
Straight-line
rent
|
|
(2,265)
|
|
|
(5,442)
|
|
|
(7,743)
|
|
|
(4,060)
|
|
|
(19,510)
|
|
Straight-line rent
(rent deferral
agreements) [4]
|
|
—
|
|
|
2,082
|
|
|
2,209
|
|
|
358
|
|
|
4,649
|
|
Amortization of
mortgage premiums and
discounts on borrowings
|
|
(560)
|
|
|
(589)
|
|
|
(521)
|
|
|
(456)
|
|
|
(2,126)
|
|
Loss on
non-designated derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
Equity-based
compensation [5]
|
|
3,211
|
|
|
3,247
|
|
|
3,235
|
|
|
3,343
|
|
|
13,036
|
|
Amortization of
deferred financing costs,
net and change in accrued
interest
|
|
1,712
|
|
|
990
|
|
|
2,782
|
|
|
2,362
|
|
|
7,846
|
|
Proportionate share
of adjustments for
non-controlling interests to arrive
at
AFFO
|
|
(2)
|
|
|
(1)
|
|
|
1
|
|
|
—
|
|
|
(2)
|
|
AFFO attributable
to common
stockholders
[1]
|
|
$
|
25,237
|
|
|
$
|
21,194
|
|
|
$
|
25,465
|
|
|
$
|
26,073
|
|
|
$
|
97,969
|
|
|
______
|
|
|
[1]
|
Includes primarily
prepayment costs incurred in connection with early debt
extinguishment as well as litigation costs related to the
Merger.
|
[2]
|
Included in "Other
income" in the Company's consolidated statement of operations and
comprehensive loss.
|
[3]
|
Reflects legal costs
incurred related to disputes with tenants due to store closures or
other challenges resulting from COVID-19. The tenants involved in
these disputes had not recently defaulted on their rent and, prior
to the second and third quarters of 2020, had recently exhibited a
pattern of regular payment. Based on the tenants involved in these
matters, their history of rent payments, and the impact of the
pandemic on current economic conditions, the Company views these
costs as COVID-19-related and separable from our ordinary general
and administrative expenses related to tenant defaults. The Company
engaged counsel in connection with these issues separate and
distinct from counsel the Company typically engages for tenant
defaults. The amount reflects what the Company believes to be only
those incremental legal costs above what the Company typically
incurs for tenant-related dispute issues. The Company may continue
to incur these COVID-19 related legal costs in the
future.
|
[4]
|
Represents the amount
of deferred rent pursuant to lease negotiations which qualify for
FASB relief for which rent was deferred but not reduced. These
amounts are included in the straight-line rent receivable on the
Company's consolidated balance sheet but are considered to be
earned revenue attributed to the current period for purposes of
AFFO as they are expected to be collected. For rent abatements
(including those qualified for FASB relief), where contractual rent
has been reduced, the reduction is reflected over the remaining
lease term for accounting purposes but represents a permanent
reduction and the Company has, accordingly reduced its
AFFO.
|
[5]
|
Includes expense
related to the amortization of the Company's restricted common
shares and LTIP Units related to its multi-year outperformance
agreement for all periods presented.
|
American Finance
Trust, Inc.
|
Quarterly
Reconciliation of Non-GAAP Measures (Unaudited)
|
(In
thousands)
|
|
|
|
Three Months
Ended
December 31,
2019
|
|
Year Ended
December 31,
2019
|
Net loss attributable
to stockholders (in accordance with GAAP)
|
|
$
|
(4,827)
|
|
|
$
|
(3,101)
|
|
Impairment of real
estate investments
|
|
—
|
|
|
827
|
|
Depreciation and
amortization
|
|
31,802
|
|
|
124,713
|
|
Gain on sale of real
estate investments
|
|
(4,519)
|
|
|
(23,690)
|
|
Proportionate share
of adjustments for non-controlling interests to arrive at
FFO
|
|
(44)
|
|
|
(165)
|
|
FFO attributable
to stockholders
|
|
22,412
|
|
|
98,584
|
|
Acquisition,
transaction and other costs
|
|
3,022
|
|
|
6,257
|
|
Litigation cost
reimbursements related to the Merger
|
|
(316)
|
|
|
(2,264)
|
|
Amortization of
market lease and other intangibles, net
|
|
(1,307)
|
|
|
(7,372)
|
|
Straight-line
rent
|
|
(2,847)
|
|
|
(8,325)
|
|
Amortization of
mortgage premiums and discounts on borrowings
|
|
(1,344)
|
|
|
(3,816)
|
|
Equity-based
compensation
|
|
3,211
|
|
|
12,717
|
|
Amortization of
deferred financing costs, net and change in accrued
interest
|
|
2,394
|
|
|
7,510
|
|
Goodwill
impairment
|
|
—
|
|
|
1,605
|
|
Proportionate share
of adjustments for non-controlling interest to
arrive at
AFFO
|
|
(5)
|
|
|
(8)
|
|
AFFO attributable
to stockholders
|
|
$
|
25,220
|
|
|
$
|
104,888
|
|
American Finance
Trust, Inc.
|
Quarterly
Reconciliation of Non-GAAP Measures (Unaudited)
|
(In
thousands)
|
|
|
|
Three Months
Ended
December 31,
2019
|
|
Year Ended
December 31,
2019
|
Adjusted
EBITDA
|
|
|
|
|
Net (loss)
income
|
|
$
|
(1,329)
|
|
|
$
|
4,163
|
|
Depreciation and
amortization
|
|
31,802
|
|
|
124,713
|
|
Interest
expense
|
|
18,990
|
|
|
77,994
|
|
Impairment of real
estate assets
|
|
—
|
|
|
827
|
|
Acquisition,
transaction and other costs
|
|
3,022
|
|
|
6,257
|
|
Equity-based
compensation
|
|
3,211
|
|
|
12,717
|
|
Gain on sale of real
estate investments
|
|
(4,519)
|
|
|
(23,690)
|
|
Other
income
|
|
(367)
|
|
|
(3,627)
|
|
Goodwill
impairment
|
|
—
|
|
|
1,605
|
|
Adjusted
EBITDA
|
|
50,810
|
|
|
200,959
|
|
Asset management
fees to related party
|
|
6,777
|
|
|
25,695
|
|
General and
administrative
|
|
4,300
|
|
|
20,375
|
|
NOI
|
|
61,887
|
|
|
247,029
|
|
Amortization of market
lease and other intangibles, net
|
|
(1,307)
|
|
|
(7,372)
|
|
Straight-line
rent
|
|
(2,847)
|
|
|
(8,325)
|
|
Cash
NOI
|
|
$
|
57,733
|
|
|
$
|
231,332
|
|
Non-GAAP Financial Measures
This release discusses the non-GAAP financial measures we use to
evaluate our performance, including Funds from Operations ("FFO"),
Adjusted Funds from Operations ("AFFO"), Adjusted Earnings before
Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA"),
Net Operating Income ("NOI") and Cash Net Operating Income ("Cash
NOI"). While NOI is a property-level measure, AFFO is based on our
total performance and therefore reflects the impact of other items
not specifically associated with NOI such as, interest expense,
general and administrative expenses and operating fees to related
parties. Additionally, NOI as defined herein, does not reflect an
adjustment for straight-line rent but AFFO does. A description of
these non-GAAP measures and reconciliations to the most directly
comparable GAAP measure, which is net income, is provided below.
Adjustments for unconsolidated partnerships and joint ventures are
calculated to exclude the proportionate share of the
non-controlling interest to arrive at FFO, AFFO and NOI
attributable to stockholders.
Caution on Use of Non-GAAP Measures
FFO, AFFO, Adjusted EBITDA, NOI and Cash NOI should not be
construed to be more relevant or accurate than the current GAAP
methodology in calculating net income or in its applicability in
evaluating our operating performance. The method utilized to
evaluate the value and performance of real estate under GAAP should
be construed as a more relevant measure of operational performance
and considered more prominently than the non-GAAP measures.
Other REITs may not define FFO in accordance with the current
National Association of Real Estate Investment Trusts ("NAREIT"),
an industry trade group, definition (as we do), or may interpret
the current NAREIT definition differently than we do, or may
calculate AFFO differently than we do. Consequently, our
presentation of FFO and AFFO may not be comparable to other
similarly titled measures presented by other REITs.
We consider FFO and AFFO useful indicators of our performance.
Because FFO and AFFO 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), FFO and AFFO
presentations facilitate comparisons of operating performance
between periods and between other REITs in our peer group.
As a result, we believe that the use of FFO and AFFO, together
with the required GAAP presentations, provide a more complete
understanding of our performance, including relative to our peers
and a more informed and appropriate basis on which to make
decisions involving operating, financing, and investing activities.
However, FFO and AFFO are not indicative of cash available to fund
ongoing cash needs, including the ability to pay cash dividends.
Investors are cautioned that FFO and AFFO should only be used to
assess the sustainability of our operating performance excluding
these activities, as they exclude certain costs that have a
negative effect on our operating performance during the periods in
which these costs are incurred.
Funds from Operations and Adjusted Funds from
Operations
Funds from Operations
Due to certain unique operating characteristics of real estate
companies, as discussed below, the NAREIT, an industry trade group,
has promulgated a performance measure known as FFO, which we
believe to be an appropriate supplemental measure to reflect the
operating performance of a REIT. FFO is not equivalent to net
income or loss as determined under GAAP.
We calculate FFO, a non-GAAP measure, consistent with the
standards established over time by the Board of Governors of
NAREIT, as restated in a White Paper and approved by the Board of
Governors of NAREIT effective in December
2018 (the "White Paper"). The White Paper defines FFO as net
income or loss computed in accordance with GAAP, excluding
depreciation and amortization related to real estate, gains and
losses from sales of certain real estate assets, gain and losses
from change in control and impairment write-downs of certain real
estate assets and investments in entities when the impairment is
directly attributable to decreases in the value of depreciable real
estate held by the entity. Adjustments for consolidated
partially-owned entities (including our Operating Partnership) and
equity in earnings of unconsolidated affiliates are made to arrive
at our proportionate share of FFO attributable to our stockholders.
Our FFO calculation complies with NAREIT's definition.
The historical accounting convention used for real estate assets
requires straight-line depreciation of buildings and improvements,
and straight-line amortization of intangibles. We believe that,
because real estate values historically rise and fall with market
conditions, including inflation, interest rates, unemployment and
consumer spending, presentations of operating results for a REIT
using historical accounting for depreciation and certain other
items may be less informative. Historical accounting for real
estate involves the use of GAAP. Any other method of accounting for
real estate such as the fair value method cannot be construed to be
any more accurate or relevant than the comparable methodologies of
real estate valuation found in GAAP. Nevertheless, we believe that
the use of FFO, which excludes the impact of real estate related
depreciation and amortization, among other things, provides a more
complete understanding of our performance to investors and to
management, and when compared year over year, reflects the impact
on our operations from trends in occupancy rates, rental rates,
operating costs, general and administrative expenses, and interest
costs, which may not be immediately apparent from net income.
Adjusted Funds from Operations
In calculating AFFO, we start with FFO, then we exclude certain
income or expense items from AFFO that we consider to be more
reflective of investing activities, such as fees related to the
Listing, non-cash income and expense items and the income and
expense effects of other activities that are not a fundamental
attribute of our day to day operating business plan, such as
amounts related to litigation arising out of the Merger. These
amounts include legal costs incurred as a result of the litigation,
portions of which have been and may in the future be reimbursed
under insurance policies maintained by us. Insurance
reimbursements are deducted from AFFO in the period of
reimbursement. We believe that excluding the litigation costs and
subsequent insurance reimbursements related to litigation arising
out of the Merger helps to provide a better understanding of the
operating performance of our business. Other income and expense
items also include early extinguishment of debt and unrealized
gains and losses, which may not ultimately be realized, such as
gains or losses on derivative instruments and gains and losses on
investments. In addition, by excluding non-cash income and expense
items such as amortization of above-market and below-market leases
intangibles, amortization of deferred financing costs,
straight-line rent, vesting and conversion of the Class B Units and
share-based compensation related to restricted shares and the 2018
OPP from AFFO, we believe we provide useful information regarding
those income and expense items which have a direct impact on our
ongoing operating performance.
In calculating AFFO, we exclude certain expenses which under
GAAP are characterized as operating expenses in determining
operating net income (loss). All paid and accrued merger,
acquisition and transaction related fees and certain other expenses
negatively impact our operating performance during the period in
which expenses are incurred or properties are acquired will also
have negative effects on returns to investors but are not
reflective of our on-going performance. In addition, legal fees and
expense associated with COVID-19-related lease disputes involving
certain tenants negatively impact our operating performance but are
not reflective of our on-going performance. Further, under
GAAP, certain contemplated non-cash fair value and other non-cash
adjustments are considered operating non-cash adjustments to net
income (loss). In addition, as discussed above, we view gains and
losses from fair value adjustments as items which are unrealized
and may not ultimately be realized and not reflective of ongoing
operations and are therefore typically adjusted for when assessing
operating performance. Excluding income and expense items detailed
above from our calculation of AFFO provides information consistent
with management's analysis of our operating performance.
Additionally, fair value adjustments, which are based on the impact
of current market fluctuations and underlying assessments of
general market conditions but can also result from operational
factors such as rental and occupancy rates, may not be directly
related or attributable to our current operating performance. By
excluding such changes that may reflect anticipated and unrealized
gains or losses, we believe AFFO provides useful supplemental
information. By providing AFFO, we believe we are presenting useful
information that can be used to better assess the sustainability of
our ongoing operating performance without the impact of
transactions or other items that are not related to the ongoing
performance of our portfolio of properties. AFFO presented by us
may not be comparable to AFFO reported by other REITs that define
AFFO differently. Furthermore, we believe that in order to
facilitate a clear understanding of our operating results, AFFO
should be examined in conjunction with net income (loss) as
presented in our consolidated financial statements.
AFFO should not be considered as an alternative to net income
(loss) as an indication of our performance or to cash flows as a
measure of our liquidity or ability to pay dividends.
Adjusted Earnings before Interest, Taxes, Depreciation and
Amortization, Net Operating Income and Cash Net Operating
Income.
We believe that Adjusted EBITDA, which is defined as earnings
before interest, taxes, depreciation and amortization adjusted for
acquisition and transaction-related expenses, fees related to the
Listing, other non-cash items such as the vesting and conversion of
the Class B Units, expense related to our multi-year outperformance
agreement with the Advisor and including our pro-rata share from
unconsolidated joint ventures, is an appropriate measure of our
ability to incur and service debt. Adjusted EBITDA should not be
considered as an alternative to cash flows from operating
activities, as a measure of our liquidity or as an alternative to
net income as an indicator of our operating activities. Other REITs
may calculate Adjusted EBITDA differently and our calculation
should not be compared to that of other REITs.
NOI is a non-GAAP financial measure used by us to evaluate the
operating performance of our real estate. NOI is equal to total
revenues, excluding contingent purchase price consideration, less
property operating and maintenance expense. NOI excludes all other
items of expense and income included in the financial statements in
calculating net income (loss). We believe NOI provides useful and
relevant information because it reflects only those income and
expense items that are incurred at the property level and presents
such items on an unleveraged basis. We use NOI to assess and
compare property level performance and to make decisions concerning
the operations of the properties. Further, we believe NOI is useful
to investors as a performance measure because, when compared across
periods, NOI reflects the impact on operations from trends in
occupancy rates, rental rates, operating expenses and acquisition
activity on an unleveraged basis, providing perspective not
immediately apparent from net income (loss). NOI excludes certain
items included in calculating net income (loss) in order to provide
results that are more closely related to a property's results of
operations. For example, interest expense is not necessarily linked
to the operating performance of a real estate asset. In addition,
depreciation and amortization, because of historical cost
accounting and useful life estimates, may distort operating
performance at the property level. NOI presented by us may not be
comparable to NOI reported by other REITs that define NOI
differently. We believe that in order to facilitate a clear
understanding of our operating results, NOI should be examined in
conjunction with net income (loss) as presented in our consolidated
financial statements. NOI should not be considered as an
alternative to net income (loss) as an indication of our
performance or to cash flows as a measure of our liquidity or our
ability to pay dividends.
Cash NOI, is a non-GAAP financial measure that is intended to
reflect the performance of our properties. We define Cash NOI as
NOI excluding amortization of above/below market lease intangibles
and straight-line adjustments that are included in GAAP lease
revenues. We believe that Cash NOI is a helpful measure that both
investors and management can use to evaluate the current financial
performance of our properties and it allows for comparison of our
operating performance between periods and to other REITs. Cash NOI
should not be considered as an alternative to net income, as an
indication of our financial performance, or to cash flows as a
measure of liquidity or our ability to fund all needs. The method
by which we calculate and present Cash NOI may not be directly
comparable to the way other REITs present Cash NOI.
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SOURCE American Finance Trust, Inc.