(Spirit Realty Capital, Inc.) |
(Spirit Realty Capital, Inc.) |
(Spirit Realty, L.P.) |
(Spirit Realty, L.P.) | |||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Registrant |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | |||
Spirit Realty Capital, Inc. |
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Spirit Realty Capital, Inc. |
Spirit Realty Capital, Inc. |
Emerging growth company | |
Spirit Realty, L.P. |
Emerging growth company |
Spirit Realty Capital, Inc. |
Spirit Realty, L.P. |
Item 8.01. |
Other Events. |
• | industry and economic conditions; |
• | volatility and uncertainty in the financial markets, including potential fluctuations in the consumer price index; |
• | our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate, integrate and manage diversifying acquisitions or investments; |
• | the financial performance of our retail tenants and the demand for retail space, particularly with respect to challenges being experienced by general merchandise retailers; |
• | our ability to diversify our tenant base; |
• | the nature and extent of future competition; |
• | increases in our costs of borrowing as a result of changes in interest rates and other factors; |
• | our ability to access debt and equity capital markets; |
• | our ability to pay down, refinance, restructure and/or extend our indebtedness as it becomes due; |
• | our ability and willingness to renew our leases upon expiration and to reposition our properties on the same or better terms upon expiration in the event such properties are not renewed by tenants or we exercise our rights to replace existing tenants upon default; |
• | the impact of any financial, accounting, legal or regulatory issues or litigation that may affect us or our major tenants; |
• | our ability to manage our expanded operations; |
• | our ability and willingness to maintain our qualification as a real estate investment trust; |
• | our ability to manage and liquidate the remaining SMTA Liquidating Trust assets; |
• | the impact on our business and those of our tenants from epidemics, pandemics or other outbreaks of illness, disease or virus (such as the strain of coronavirus known as COVID-19); and |
• | other risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, illiquidity of real estate investments and potential damages from natural disasters. |
Item 9.01 |
Financial Statements and Exhibits. |
No. |
Description | |
99.1 | Certain Company information | |
104 | Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document). |
SPIRIT REALTY CAPITAL, INC. | ||
By: |
/s/ Michael Hughes | |
Michael Hughes | ||
Executive Vice President and Chief Financial Officer | ||
SPIRIT REALTY, L.P., | ||
By: Spirit General OP Holdings, LLC, as general partner of Spirit Realty, L.P. | ||
By: |
/s/ Michael Hughes | |
Michael Hughes | ||
Executive Vice President and Chief Financial Officer |
Exhibit 99.1 RENT COLLECTION UPDATE July 2020 Collection Q2 2020 Collection 75% 85% 1 1 of Q2 Base Rent of July Base Rent Entire Portfolio Top 10 Tenants Top 20 Tenants Public April 77.6 % 100.0 % 92.7 % 89.2 % May 70.7 % 78.3 % 78.8 % 89.1 % June 76.7 % 84.8 % 81.9 % 89.6 % 1 Q2 75.0 % 87.7 % 84.5 % 89.3 % 1 July 85.0 % 100.0 % 95.0 % 92.6 % Note: All ratios represent percentage of total Base Rent for such period and such category collected. Percentages may include immaterial rounding in certain instances. All tenant updates are based on available information as of July 27, 2020. 1 Base Rent in Q2 and July 2020 is $117.4M and $39.3M, respectively. Included in July collections of 85.0% is 0.2% of Base Rent which we expect to collect. Base Rent collected in Q2 and July 2020 includes 0.4% and 1.9%, respectively, of collections from tenants that are in default for failure to pay prior months and are currently not subject to deferral or abatement arrangements. Including 1 mortgage payments, cash collected was 75.7% and 86.7% for Q2 and July 2020, respectively. Please see the back of this presentation for Reporting Definitions and Explanations.Exhibit 99.1 RENT COLLECTION UPDATE July 2020 Collection Q2 2020 Collection 75% 85% 1 1 of Q2 Base Rent of July Base Rent Entire Portfolio Top 10 Tenants Top 20 Tenants Public April 77.6 % 100.0 % 92.7 % 89.2 % May 70.7 % 78.3 % 78.8 % 89.1 % June 76.7 % 84.8 % 81.9 % 89.6 % 1 Q2 75.0 % 87.7 % 84.5 % 89.3 % 1 July 85.0 % 100.0 % 95.0 % 92.6 % Note: All ratios represent percentage of total Base Rent for such period and such category collected. Percentages may include immaterial rounding in certain instances. All tenant updates are based on available information as of July 27, 2020. 1 Base Rent in Q2 and July 2020 is $117.4M and $39.3M, respectively. Included in July collections of 85.0% is 0.2% of Base Rent which we expect to collect. Base Rent collected in Q2 and July 2020 includes 0.4% and 1.9%, respectively, of collections from tenants that are in default for failure to pay prior months and are currently not subject to deferral or abatement arrangements. Including 1 mortgage payments, cash collected was 75.7% and 86.7% for Q2 and July 2020, respectively. Please see the back of this presentation for Reporting Definitions and Explanations.
Q2’20 AND JULY BASE RENT DETAIL 1 1 Q2 Base Rent July Base Rent Deferrals Deferrals 2 2 Recognized Recognized 19.1% 11.0% Deferrals Deferrals Base Rent 2 2 Unrecognized Base Rent Unrecognized Base Rent Base Rent Uncollected Collected Collected Uncollected 25% 0.3% 0.2% 15% 85% 75% Abatement Abatement 2.0% 1.6% Lost Rent Lost Rent 3.6% 2.2% Lost Rent Detail Lost Rent Detail 3 3 Restructure Bankruptcy Other Restructure Bankruptcy Other 0.9% 0.4% 2.3% 0.8% 0.2% 1.2% $4.6 million of rent will be deferred in 2H 2020, subject to $1.3 million of rent will be abated in 2H 2020; Spirit received percentage rent arrangements, with weighted average deferral extended lease term on the vast majority of leases where rent 4 period of 6.0 months was abated $5.1 million of rent will be deferred in 2H 2020, excluding tenants We have executed one deferral extension and 36 tenants have subject to percentage rent arrangements, with weighted average retracted their deferrals and paid full rent April through July deferral periods of 1.8 months Note: All ratios represent percentage of total Base Rent for such period. Percentages may include immaterial rounding in certain instances. All tenant updates are based on available information as of July 27, 2020. 1 Base Rent in Q2 and July 2020 is $117.4M and $39.3M, respectively. Included in July collections of 85.0% is 0.2% of Base Rent which we expect to collect. Base Rent collected in Q2 and July 2020 includes 0.4% and 1.9%, respectively, of collections from tenants that are in default for failure to pay prior months and are currently not subject to deferral or abatement arrangements. 2 Deferrals recognized are included in revenue in our income statement whereas deferrals unrecognized are recognized on a cash basis and are not included in revenue during the deferral period. July 2020 Deferrals Recognized includes 1.1% of expected deferrals that are not yet approved or executed. 3 Other rent consists of tenants that are delinquent on the payment of Base Rent and thus rental revenue is recognized on a cash basis. 4 Includes certain tenants within the movie theater and entertainment sectors. Generally, under these agreements, we will receive rent through year-end, calculated as a percentage of sales, with 2 any aggregate short-falls to base rent becoming payable in the future. Please see the back of this presentation for Reporting Definitions and Explanations.Q2’20 AND JULY BASE RENT DETAIL 1 1 Q2 Base Rent July Base Rent Deferrals Deferrals 2 2 Recognized Recognized 19.1% 11.0% Deferrals Deferrals Base Rent 2 2 Unrecognized Base Rent Unrecognized Base Rent Base Rent Uncollected Collected Collected Uncollected 25% 0.3% 0.2% 15% 85% 75% Abatement Abatement 2.0% 1.6% Lost Rent Lost Rent 3.6% 2.2% Lost Rent Detail Lost Rent Detail 3 3 Restructure Bankruptcy Other Restructure Bankruptcy Other 0.9% 0.4% 2.3% 0.8% 0.2% 1.2% $4.6 million of rent will be deferred in 2H 2020, subject to $1.3 million of rent will be abated in 2H 2020; Spirit received percentage rent arrangements, with weighted average deferral extended lease term on the vast majority of leases where rent 4 period of 6.0 months was abated $5.1 million of rent will be deferred in 2H 2020, excluding tenants We have executed one deferral extension and 36 tenants have subject to percentage rent arrangements, with weighted average retracted their deferrals and paid full rent April through July deferral periods of 1.8 months Note: All ratios represent percentage of total Base Rent for such period. Percentages may include immaterial rounding in certain instances. All tenant updates are based on available information as of July 27, 2020. 1 Base Rent in Q2 and July 2020 is $117.4M and $39.3M, respectively. Included in July collections of 85.0% is 0.2% of Base Rent which we expect to collect. Base Rent collected in Q2 and July 2020 includes 0.4% and 1.9%, respectively, of collections from tenants that are in default for failure to pay prior months and are currently not subject to deferral or abatement arrangements. 2 Deferrals recognized are included in revenue in our income statement whereas deferrals unrecognized are recognized on a cash basis and are not included in revenue during the deferral period. July 2020 Deferrals Recognized includes 1.1% of expected deferrals that are not yet approved or executed. 3 Other rent consists of tenants that are delinquent on the payment of Base Rent and thus rental revenue is recognized on a cash basis. 4 Includes certain tenants within the movie theater and entertainment sectors. Generally, under these agreements, we will receive rent through year-end, calculated as a percentage of sales, with 2 any aggregate short-falls to base rent becoming payable in the future. Please see the back of this presentation for Reporting Definitions and Explanations.
RENT COLLECTION BY INDUSTRY July Q2 2020 April May June July Deferred/ INDUSTRY 1 2 2 2 2 ABR Collection Collection Collection Collection Expected 3 Deferrals Convenience Stores 8.4 % 95.5 % 95.5 % 100.0 % 95.6 % 0.0 % Restaurants - Quick Service 7.0 % 98.2 % 56.8 % 78.8 % 100.0 % 0.0 % 4 Health and Fitness 6.9 % 49.7 % 6.2 % 22.4 % 67.8 % 19.3 % Restaurants - Casual Dining 6.1 % 33.8 % 47.9 % 49.6 % 63.6 % 25.0 % Movie Theaters 5.7 % 20.8 % 2.0 % 2.0 % 7.2 % 75.0 % Drug Stores / Pharmacies 5.0 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Grocery 3.8 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Entertainment 3.7 % 12.7 % 18.2 % 18.2 % 54.4 % 45.6 % Car Washes 3.4 % 64.0 % 64.0 % 100.0 % 100.0 % 0.0 % Dealerships 3.2 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Home Improvement 3.1 % 100.0 % 97.4 % 97.4 % 100.0 % 0.0 % Dollar Stores 3.1 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Home Décor 2.7 % 95.5 % 83.6 % 83.5 % 100.0 % 0.0 % Specialty Retail 2.5 % 88.8 % 97.3 % 100.0 % 88.8 % 0.0 % Warehouse Club and Supercenters 2.4 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Automotive Service 2.3 % 56.1 % 68.2 % 95.8 % 100.0 % 0.0 % Department Stores 2.0 % 84.5 % 66.6 % 48.6 % 35.5 % 64.5 % Home Furnishings 1.9 % 56.6 % 7.0 % 41.2 % 66.3 % 21.5 % Sporting Goods 1.7 % 96.4 % 92.9 % 92.9 % 92.9 % 0.0 % Education 1.7 % 13.7 % 28.1 % 32.7 % 92.6 % 7.4 % Automotive Parts 1.2 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Office Supplies 0.8 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Other 0.7 % 87.2 % 92.7 % 99.5 % 100.0 % 0.0 % Medical Office 0.6 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Pet Supplies & Service 0.5 % 100.0 % 98.2 % 100.0 % 100.0 % 0.0 % Apparel 0.3 % 48.0 % 48.0 % 48.1 % 60.0 % 20.6 % RETAIL 80.7 % 73.4 % 64.8 % 71.9 % 82.1 % 13.3 % Distribution 7.5 % 97.9 % 97.8 % 100.0 % 100.0 % 0.0 % Manufacturing 4.1 % 88.0 % 95.1 % 100.0 % 95.3 % 4.7 % INDUSTRIAL 11.6 % 94.6 % 96.8 % 100.0 % 98.4 % 1.6 % Professional Office 3.1 % 95.6 % 100.0 % 95.6 % 100.0 % 0.0 % Medical Office 2.7 % 93.4 % 100.0 % 98.2 % 91.5 % 1.8 % Data Center 1.3 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Hotel 0.6 % 100.0 % 19.7 % 39.4 % 59.1 % 40.9 % OFFICE & OTHER 7.7 % 96.0 % 93.3 % 92.5 % 93.7 % 4.0 % TOTAL 100.0 % 77.6 % 70.7 % 76.7 % 85.0 % 11.2 % 1 Represents percentage of Annualized Base Rent (ABR) for such period attributable to such industry. 2 Represents percentage of total Base Rent for such period and such industry collected. Percentages may include immaterial rounding in certain instances. Included in July collections of 85.0% is 0.2% of Base Rent which we expect to collect. Base Rent collected in Q2 and July 2020 includes 0.4% and 1.9%, respectively, of collections from tenants that are in default for failure to pay prior months and are currently not subject to deferral or abatement arrangements. 3 Represents executed deferral agreements, as well as advanced negotiations with tenants in which we expect to reach deferral agreements with. 4 Base Rent collected in the health and fitness industry in July 2020 includes 23.2% from tenants that are in default for failure to pay prior months and are currently not subject to deferral or abatement 3 arrangements. Please see the back of this presentation for Reporting Definitions and Explanations.RENT COLLECTION BY INDUSTRY July Q2 2020 April May June July Deferred/ INDUSTRY 1 2 2 2 2 ABR Collection Collection Collection Collection Expected 3 Deferrals Convenience Stores 8.4 % 95.5 % 95.5 % 100.0 % 95.6 % 0.0 % Restaurants - Quick Service 7.0 % 98.2 % 56.8 % 78.8 % 100.0 % 0.0 % 4 Health and Fitness 6.9 % 49.7 % 6.2 % 22.4 % 67.8 % 19.3 % Restaurants - Casual Dining 6.1 % 33.8 % 47.9 % 49.6 % 63.6 % 25.0 % Movie Theaters 5.7 % 20.8 % 2.0 % 2.0 % 7.2 % 75.0 % Drug Stores / Pharmacies 5.0 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Grocery 3.8 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Entertainment 3.7 % 12.7 % 18.2 % 18.2 % 54.4 % 45.6 % Car Washes 3.4 % 64.0 % 64.0 % 100.0 % 100.0 % 0.0 % Dealerships 3.2 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Home Improvement 3.1 % 100.0 % 97.4 % 97.4 % 100.0 % 0.0 % Dollar Stores 3.1 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Home Décor 2.7 % 95.5 % 83.6 % 83.5 % 100.0 % 0.0 % Specialty Retail 2.5 % 88.8 % 97.3 % 100.0 % 88.8 % 0.0 % Warehouse Club and Supercenters 2.4 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Automotive Service 2.3 % 56.1 % 68.2 % 95.8 % 100.0 % 0.0 % Department Stores 2.0 % 84.5 % 66.6 % 48.6 % 35.5 % 64.5 % Home Furnishings 1.9 % 56.6 % 7.0 % 41.2 % 66.3 % 21.5 % Sporting Goods 1.7 % 96.4 % 92.9 % 92.9 % 92.9 % 0.0 % Education 1.7 % 13.7 % 28.1 % 32.7 % 92.6 % 7.4 % Automotive Parts 1.2 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Office Supplies 0.8 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Other 0.7 % 87.2 % 92.7 % 99.5 % 100.0 % 0.0 % Medical Office 0.6 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Pet Supplies & Service 0.5 % 100.0 % 98.2 % 100.0 % 100.0 % 0.0 % Apparel 0.3 % 48.0 % 48.0 % 48.1 % 60.0 % 20.6 % RETAIL 80.7 % 73.4 % 64.8 % 71.9 % 82.1 % 13.3 % Distribution 7.5 % 97.9 % 97.8 % 100.0 % 100.0 % 0.0 % Manufacturing 4.1 % 88.0 % 95.1 % 100.0 % 95.3 % 4.7 % INDUSTRIAL 11.6 % 94.6 % 96.8 % 100.0 % 98.4 % 1.6 % Professional Office 3.1 % 95.6 % 100.0 % 95.6 % 100.0 % 0.0 % Medical Office 2.7 % 93.4 % 100.0 % 98.2 % 91.5 % 1.8 % Data Center 1.3 % 100.0 % 100.0 % 100.0 % 100.0 % 0.0 % Hotel 0.6 % 100.0 % 19.7 % 39.4 % 59.1 % 40.9 % OFFICE & OTHER 7.7 % 96.0 % 93.3 % 92.5 % 93.7 % 4.0 % TOTAL 100.0 % 77.6 % 70.7 % 76.7 % 85.0 % 11.2 % 1 Represents percentage of Annualized Base Rent (ABR) for such period attributable to such industry. 2 Represents percentage of total Base Rent for such period and such industry collected. Percentages may include immaterial rounding in certain instances. Included in July collections of 85.0% is 0.2% of Base Rent which we expect to collect. Base Rent collected in Q2 and July 2020 includes 0.4% and 1.9%, respectively, of collections from tenants that are in default for failure to pay prior months and are currently not subject to deferral or abatement arrangements. 3 Represents executed deferral agreements, as well as advanced negotiations with tenants in which we expect to reach deferral agreements with. 4 Base Rent collected in the health and fitness industry in July 2020 includes 23.2% from tenants that are in default for failure to pay prior months and are currently not subject to deferral or abatement 3 arrangements. Please see the back of this presentation for Reporting Definitions and Explanations.
PROPERTY STATUS BY INDUSTRY Over 90% of Spirit’s portfolio is open or partially open Industry Fully Open Partially Open Closed 100.0 % 0.0 % 0.0 % Convenience Stores Restaurants - Quick Service 4.3 % 95.7 % 0.0 % Health and Fitness 85.4 % 0.0 % 14.6 % Restaurants - Casual Dining 94.1 % 2.4 % 3.5 % Movie Theaters 0.0 % 0.0 % 100.0 % Drug Stores / Pharmacies 100.0 % 0.0 % 0.0 % Grocery 100.0 % 0.0 % 0.0 % Entertainment 80.0 % 0.0 % 20.0 % Car Washes 100.0 % 0.0 % 0.0 % Dealerships 100.0 % 0.0 % 0.0 % Home Improvement 100.0 % 0.0 % 0.0 % Dollar Stores 100.0 % 0.0 % 0.0 % Home Décor 100.0 % 0.0 % 0.0 % Specialty Retail 100.0 % 0.0 % 0.0 % Warehouse Club and Supercenters 100.0 % 0.0 % 0.0 % Automotive Service 100.0 % 0.0 % 0.0 % Department Stores 100.0 % 0.0 % 0.0 % 100.0 % 0.0 % 0.0 % Home Furnishings Sporting Goods 100.0 % 0.0 % 0.0 % Education 100.0 % 0.0 % 0.0 % 100.0 % 0.0 % 0.0 % Automotive Parts Office Supplies 100.0 % 0.0 % 0.0 % Other 98.1 % 0.0 % 1.9 % Medical Office 100.0 % 0.0 % 0.0 % Pet Supplies & Service 100.0 % 0.0 % 0.0 % Apparel 100.0 % 0.0 % 0.0 % RETAIL 82.0 % 8.5 % 9.5 % Distribution 100.0 % 0.0 % 0.0 % Manufacturing 100.0 % 0.0 % 0.0 % INDUSTRIAL 100.0 % 0.0 % 0.0 % Professional Office 100.0 % 0.0 % 0.0 % Medical Office 100.0 % 0.0 % 0.0 % Data Center 100.0 % 0.0 % 0.0 % Hotel 100.0 % 0.0 % 0.0 % OFFICE & OTHER 100.0 % 0.0 % 0.0 % TOTAL 85.6 % 6.8 % 7.6 % Note: Based on information available as of July 27, 2020. Represents percentage of Base Rent from such industry where the property is considered fully open” or “partially open. A property is considered fully open when inside sales exist. It is considered partially open if sales are limited to outside of the store (i.e. curbside, drive-thru or takeout). Percentages may 4 include immaterial rounding in certain instances. Please see the back of this presentation for Reporting Definitions and Explanations.PROPERTY STATUS BY INDUSTRY Over 90% of Spirit’s portfolio is open or partially open Industry Fully Open Partially Open Closed 100.0 % 0.0 % 0.0 % Convenience Stores Restaurants - Quick Service 4.3 % 95.7 % 0.0 % Health and Fitness 85.4 % 0.0 % 14.6 % Restaurants - Casual Dining 94.1 % 2.4 % 3.5 % Movie Theaters 0.0 % 0.0 % 100.0 % Drug Stores / Pharmacies 100.0 % 0.0 % 0.0 % Grocery 100.0 % 0.0 % 0.0 % Entertainment 80.0 % 0.0 % 20.0 % Car Washes 100.0 % 0.0 % 0.0 % Dealerships 100.0 % 0.0 % 0.0 % Home Improvement 100.0 % 0.0 % 0.0 % Dollar Stores 100.0 % 0.0 % 0.0 % Home Décor 100.0 % 0.0 % 0.0 % Specialty Retail 100.0 % 0.0 % 0.0 % Warehouse Club and Supercenters 100.0 % 0.0 % 0.0 % Automotive Service 100.0 % 0.0 % 0.0 % Department Stores 100.0 % 0.0 % 0.0 % 100.0 % 0.0 % 0.0 % Home Furnishings Sporting Goods 100.0 % 0.0 % 0.0 % Education 100.0 % 0.0 % 0.0 % 100.0 % 0.0 % 0.0 % Automotive Parts Office Supplies 100.0 % 0.0 % 0.0 % Other 98.1 % 0.0 % 1.9 % Medical Office 100.0 % 0.0 % 0.0 % Pet Supplies & Service 100.0 % 0.0 % 0.0 % Apparel 100.0 % 0.0 % 0.0 % RETAIL 82.0 % 8.5 % 9.5 % Distribution 100.0 % 0.0 % 0.0 % Manufacturing 100.0 % 0.0 % 0.0 % INDUSTRIAL 100.0 % 0.0 % 0.0 % Professional Office 100.0 % 0.0 % 0.0 % Medical Office 100.0 % 0.0 % 0.0 % Data Center 100.0 % 0.0 % 0.0 % Hotel 100.0 % 0.0 % 0.0 % OFFICE & OTHER 100.0 % 0.0 % 0.0 % TOTAL 85.6 % 6.8 % 7.6 % Note: Based on information available as of July 27, 2020. Represents percentage of Base Rent from such industry where the property is considered fully open” or “partially open. A property is considered fully open when inside sales exist. It is considered partially open if sales are limited to outside of the store (i.e. curbside, drive-thru or takeout). Percentages may 4 include immaterial rounding in certain instances. Please see the back of this presentation for Reporting Definitions and Explanations.
REPORTING DEFINITIONS AND EXPLANATIONS Annualized Base Rent (ABR) represents Base Rent and earned income from direct financing leases from the final month of the reporting period, adjusted to exclude amounts from properties sold during that period and to include a full month of rental income for properties acquired during that period. The total is then multiplied by 12. We use ABR when calculating certain metrics that are useful to evaluate portfolio credit and diversification and to manage risk. Base Rent represents rental income for the period, including amounts deferred or abated and excluding percentage rents, from our owned properties recognized during the month. We use Base Rent to monitor cash collection and to evaluate past due receivables. Lost Rent is calculated as Base Rent reserved due to uncollectability divided by Base Rent for the period. 5REPORTING DEFINITIONS AND EXPLANATIONS Annualized Base Rent (ABR) represents Base Rent and earned income from direct financing leases from the final month of the reporting period, adjusted to exclude amounts from properties sold during that period and to include a full month of rental income for properties acquired during that period. The total is then multiplied by 12. We use ABR when calculating certain metrics that are useful to evaluate portfolio credit and diversification and to manage risk. Base Rent represents rental income for the period, including amounts deferred or abated and excluding percentage rents, from our owned properties recognized during the month. We use Base Rent to monitor cash collection and to evaluate past due receivables. Lost Rent is calculated as Base Rent reserved due to uncollectability divided by Base Rent for the period. 5
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