10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission file number: 000-55198

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

(Exact name of registrant as specified in its charter) 

Maryland	27-3279039
(State or other  jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
405 Park Ave., 14th Floor, New York, NY	10022
(Address of principal executive offices)	(Zip Code)

(212) 415-6500

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web Site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

As of July 31, 2015, the registrant had 96,128,043 shares of common stock outstanding.

AMERICAN REALTY CAPITAL — RETAIL CENTERS OF AMERICA, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Balance Sheets as of June 30, 2015 (Unaudited) and December 31, 2014	3
Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2015 and 2014 (Unaudited)	4
Consolidated Statement of Changes in Stockholders' Equity for the Six Months Ended June 30, 2015 (Unaudited)	5
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2015 and 2014 (Unaudited)	6
Notes to Consolidated Financial Statements (Unaudited)	8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.	28
Item 3. Quantitative and Qualitative Disclosure About Market Risk.	44
Item 4. Controls and Procedures.	44
PART II — OTHER INFORMATION
Item 1. Legal Proceedings.	46
Item 1A. Risk Factors.	46
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	47
Item 3. Defaults Upon Senior Securities.	48
Item 4. Mine Safety Disclosures.	48
Item 5. Other Information.	48
Item 6. Exhibits.	48
Signatures	49

2

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERICAN REALTY CAPITAL — RETAIL CENTERS OF AMERICA, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	June 30, 2015			December 31, 2014
	(Unaudited)
ASSETS
Real estate investments, at cost:
Land	$	218,876		$	158,787
Buildings, fixtures and improvements	612,324			478,854
Acquired intangible lease assets	152,411			127,144
Total real estate investments, at cost	983,611			764,785
Less: accumulated depreciation and amortization	(39,728		)	(19,115		)
Total real estate investments, net	943,883			745,670
Cash and cash equivalents	47,639			170,963
Restricted cash	4,026			3,469
Prepaid expenses and other assets	14,450			7,591
Deferred costs, net	8,096			8,117
Land held for sale	500			—
Total assets	$	1,018,594		$	935,810
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable	$	86,750		$	86,931
Mortgage premium, net	275			292
Credit facility	70,000			—
Below-market lease liabilities, net	63,964			48,113
Derivatives, at fair value	475			332
Accounts payable and accrued expenses (including $827 and $1,769 due to affiliates as of June 30, 2015 and December 31, 2014, respectively)	18,939			10,329
Deferred rent and other liabilities	2,391			1,575
Distributions payable	5,064			5,138
Total liabilities	247,858			152,710
Preferred stock, $0.01 par value per share, 50,000,000 authorized, none issued or outstanding at June 30, 2015 and December 31, 2014	—			—
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 95,822,130 and 94,448,748 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	958			944
Additional paid-in capital	849,414			836,387
Accumulated other comprehensive loss	(469		)	(327		)
Accumulated deficit	(79,167		)	(53,904		)
Total stockholders' equity	770,736			783,100
Total liabilities and stockholders' equity	$	1,018,594		$	935,810

The accompanying notes are an integral part of these statements.

3

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except share and per share data)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Revenues:
Rental income	$	17,679		$	3,192		$	33,830		$	5,307
Operating expense reimbursements	4,969			1,086			9,913			1,770
Total revenues	22,648			4,278			43,743			7,077
Operating expenses:
Asset management fees to affiliate	1,457			—			1,457			—
Property operating	8,004			1,335			14,722			2,276
Impairment charges	4,434			—			4,434			—
Fair value adjustment to contingent purchase price consideration	(13,802		)	—			(13,802		)	—
Acquisition and transaction related	3,399			1,768			3,979			1,788
General and administrative	1,869			546			4,261			653
Depreciation and amortization	10,679			2,797			20,458			4,441
Total operating expenses, net	16,040			6,446			35,509			9,158
Operating income	6,608			(2,168		)	8,234			(2,081		)
Other (expense) income:
Interest expense	(1,613		)	(746		)	(3,197		)	(1,432		)
Loss on disposition of land	—			(19		)	—			(19		)
Other income	4			20			8			20
Total other expense, net	(1,609		)	(745		)	(3,189		)	(1,431		)
Net income (loss)	$	4,999		$	(2,913	)	$	5,045		$	(3,512	)
Other comprehensive income (loss):
Change in unrealized loss on derivative	134			(259		)	(142		)	(304		)
Comprehensive income (loss)	$	5,133		$	(3,172	)	$	4,903		$	(3,816	)
Basic net income (loss) per share	$	0.05		$	(0.10	)	$	0.05		$	(0.17	)
Diluted net income (loss) per share	$	0.05		$	(0.10	)	$	0.05		$	(0.17	)

The accompanying notes are an integral part of these statements.

4

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

For the Six Months Ended June 30, 2015

(In thousands, except share data)

(Unaudited)

	Common Stock
	Number of Shares		Par Value			Additional Paid-in Capital			Accumulated Other Comprehensive Loss			Accumulated Deficit			Total Stockholders' Equity
Balance, December 31, 2014	94,448,748		$	944		$	836,387		$	(327	)	$	(53,904	)	$	783,100
Change in offering costs	—		—			4			—			—			4
Common stock issued through distribution reinvestment plan	1,841,287		19			17,474			—			—			17,493
Common stock repurchases	(467,905	)	(5		)	(4,470		)	—			—			(4,475		)
Share-based compensation	—		—			19			—			—			19
Distributions declared	—		—			—			—			(30,308		)	(30,308		)
Net income	—		—			—			—			5,045			5,045
Other comprehensive loss	—		—			—			(142		)	—			(142		)
Balance, June 30, 2015	95,822,130		$	958		$	849,414		$	(469	)	$	(79,167	)	$	770,736

The accompanying notes are an integral part of this statement.

5

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2015			2014
Cash flows from operating activities:
Net income (loss)	$	5,045		$	(3,512	)
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	8,298			2,810
Amortization of in-place lease assets	12,114			1,614
Amortization of deferred costs	989			171
Amortization of mortgage premium	(17		)	—
(Accretion) amortization of market lease intangibles, net	(1,181		)	430
Bad debt expense	796			—
Fair value adjustment to contingent purchase price consideration	(13,802		)	—
Impairment charges	4,434			—
Loss on disposition of land	—			19
Share-based compensation	19			43
Ineffective portion of derivative	1			5
Changes in assets and liabilities:
Prepaid expenses and other assets	(7,333		)	(6,173		)
Accounts payable and accrued expenses	4,997			1,257
Deferred rent and other liabilities	816			97
Net cash provided by (used in) operating activities	15,176			(3,239		)
Cash flows from investing activities:
Investments in real estate and other assets	(202,022		)	(94,700		)
Deposits for real estate acquisitions	(456		)	(1,500		)
Proceeds from disposition of land	—			247
Proceeds from contingent purchase price consideration	13,187			—
Capital expenditures	(3,603		)	—
Net cash used in investing activities	(192,894		)	(95,953		)
Cash flows from financing activities:
Payments of mortgage notes payable	(181		)	—
Proceeds from credit facility	70,000			—
Payments of deferred financing costs	(37		)	(2,115		)
Proceeds from issuances of common stock	—			310,500
Common stock repurchases	(766		)	—
Payments of offering costs and fees related to stock issuances, net	(1,176		)	(33,130		)
Distributions paid	(12,889		)	(2,779		)
Payments to affiliate, net	—			(1,019		)
Restricted cash	(557		)	(209		)
Net cash provided by financing activities	54,394			271,248
Net change in cash and cash equivalents	(123,324		)	172,056
Cash and cash equivalents, beginning of period	170,963			13,295
Cash and cash equivalents, end of period	$	47,639		$	185,351

6

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2015			2014
Supplemental Disclosures:
Cash paid for interest	$	2,023		$	1,279
Cash paid for income taxes	$	73		$	36
Change in offering costs in accounts payable and accrued expenses	$	(1,180	)	$	(1,352	)
Change in accrued common stock repurchases	$	3,709		$	75
Change in capital improvements in accounts payable and accrued expenses	$	969		$	—
Non-Cash Investing and Financing Activities:
Common stock issued through distribution reinvestment plan	$	17,493		$	2,496
Mortgage notes payable released in connection with disposition of land	$	—		$	296

The accompanying notes are an integral part of these statements.

7

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

Note 1 — Organization

American Realty Capital — Retail Centers of America, Inc. (the "Company"), incorporated on July 29, 2010, is a Maryland corporation that qualified as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with the taxable year ended December 31, 2012. On March 17, 2011, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 150.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, pursuant to a registration statement on Form S-11, as amended (File No. 333-169355) (the "Registration Statement"), filed with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act"). The Registration Statement also covered up to 25.0 million shares available pursuant to a distribution reinvestment plan (the "DRIP") under which the Company's common stockholders were able to elect to have their distributions reinvested in additional shares of the Company's common stock at a price initially equal to $9.50 per share, which was 95.0% of the per share offering price in the IPO. On May 7, 2015, the Company filed a post-effective amendment to the Registration Statement to deregister the unsold shares registered under the Registration Statement.

On March 9, 2012, the Company raised proceeds sufficient to break escrow in connection with its IPO. On March 4, 2013, the Company's board of directors approved an extension of the termination date of the IPO from March 17, 2013 to March 17, 2014. On March 14, 2014, the Company filed a registration statement on Form S-11 (File No. 333-194586) (the "Follow-On Registration Statement") with the SEC to register a follow-on offering of up to 75.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, and 12.5 million shares of common stock pursuant to the DRIP. However, as permitted by Rule 415 under the Securities Act, the Company continued offering and selling shares in its IPO until September 12, 2014.

The IPO closed on September 12, 2014. On September 17, 2014, the Company withdrew its Follow-On Registration Statement, from which no securities were sold. On September 19, 2014, the Company registered an additional 25.0 million shares of common stock to be used under the DRIP (as amended to include a direct stock purchase component) pursuant to a registration statement on Form S-3D (File No. 333-198864).

As of June 30, 2015, the Company had 95.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, and had received total proceeds from the IPO and the DRIP of $951.2 million.

The Company has acquired and intends to acquire and own existing anchored, stabilized core retail properties, including power centers, lifestyle centers, grocery-anchored shopping centers (with a purchase price in excess of $20.0 million) and other need-based shopping centers which are located in the United States and at least 80.0% leased at the time of acquisition. All properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire first mortgage loans secured by real estate. The Company purchased its first property and commenced active operations in June 2012. As of June 30, 2015, the Company owned 28 properties with an aggregate purchase price of $903.7 million, comprised of 5.8 million rentable square feet which were 94.7% leased on a weighted-average basis.

Substantially all of the Company's business is conducted through American Realty Capital Retail Operating Partnership, L.P. (the "OP"), a Delaware limited partnership. The Company is the sole general partner and holds substantially all the units of limited partner interest in the OP ("OP Units"). The Company's external affiliated advisor, American Realty Capital Retail Advisor, LLC (the "Advisor"), a limited partner in the OP, holds 202 OP Units, which represents a nominal percentage of the aggregate OP ownership. After holding the OP Units for a period of one year, or upon liquidation of the OP or sale of substantially all of the assets of the OP, holders of OP Units have the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, in accordance with the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.

8

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

The Company has no direct employees. The Company has retained the Advisor to manage its affairs on a day-to-day basis. The Advisor has entered into a service agreement with an independent third party, Lincoln Retail REIT Services, LLC, a Delaware limited liability company ("Lincoln"), pursuant to which Lincoln has agreed to provide, subject to the Advisor's oversight, real estate-related services, including locating investments, negotiating financing, and providing property-level asset management services, property management services, leasing and construction oversight services and disposition services, as needed. Realty Capital Securities, LLC (the "Dealer Manager") served as the dealer manager of the IPO. The Advisor and the Dealer Manager are under common control with AR Capital, LLC (the "Parent of the Sponsor"), the parent of the Company's sponsor, American Realty Capital IV, LLC (the "Sponsor"), as a result of which they are related parties, and each of which has received or will receive compensation, fees and expense reimbursements for services related to the IPO and the investment and management of the Company's assets. Such entities have received or may receive, as applicable, fees during the offering, acquisition, operational and liquidation stages. The Advisor has paid and will continue to pay Lincoln a substantial portion of the fees payable to the Advisor for the performance of real estate-related services.

Note 2 — Summary of Significant Accounting Policies

The accompanying consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to this Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for these interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results for the entire year or any subsequent interim periods.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2014, which are included in the Company's Annual Report on Form 10-K filed with the SEC on April 15, 2015. There have been no significant changes to the Company's significant accounting policies during the six months ended June 30, 2015, other than the updates described below.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of the new guidance.

In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company has adopted the provisions of this guidance for the fiscal year ending December 31, 2015 and determined that there is no impact to its financial position, results of operations and cash flows.

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. If the Company decides to early adopt the revised guidance in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes the interim period. The Company is currently evaluating the impact of the new guidance.

9

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not previously been issued. If the Company decides to early adopt the revised guidance in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes the interim period. The Company is currently evaluating the impact of the new guidance.

Note 3 — Real Estate Investments

The Company owned 28 properties as of June 30, 2015. The rentable square feet or annualized rental income on a straight-line basis of the seven properties summarized below represented 5.0% or more of the Company's total portfolio's rentable square feet or annualized rental income on a straight-line basis as of June 30, 2015.

Tiffany Springs MarketCenter

On September 26, 2013, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Tiffany Springs MarketCenter, a power center located in Kansas City, Missouri ("Tiffany Springs MarketCenter"). The sellers had no preexisting relationship with the Company. The contract purchase price of Tiffany Springs MarketCenter was $53.5 million, exclusive of closing costs. The acquisition of Tiffany Springs MarketCenter was funded with proceeds from the Company's IPO and new mortgage debt secured by Tiffany Springs MarketCenter. The Company accounted for the purchase of Tiffany Springs MarketCenter as a business combination and incurred acquisition related costs of $0.9 million at acquisition.

Prairie Towne Center

On June 4, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Prairie Towne Center, a power center located in Schaumburg, Illinois ("Prairie Towne Center"). The seller had no preexisting relationship with the Company. The contract purchase price of Prairie Towne Center was $25.3 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of Prairie Towne Center as a business combination and incurred acquisition related costs of $0.4 million at acquisition.

Southroads Shopping Center

On October 29, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Southroads Shopping Center, a power center located in Tulsa, Oklahoma ("Southroads Shopping Center"). The seller had no preexisting relationship with the Company. The contract purchase price of Southroads Shopping Center was $57.8 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of Southroads Shopping Center as a business combination and incurred acquisition related costs of $1.0 million at acquisition.

Colonial Landing

On December 18, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the leasehold interest in Colonial Landing, a power center located in Orlando, Florida ("Colonial Landing"). The seller had no preexisting relationship with the Company. The contract purchase price of Colonial Landing was $37.3 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of Colonial Landing as a business combination and incurred acquisition related costs of $0.7 million at acquisition.

The Shops at West End

On December 23, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in The Shops at West End, a lifestyle center located in St. Louis Park, Minnesota ("The Shops at West End"). The seller had no preexisting relationship with the Company. The contract purchase price of The Shops at West End was $117.1 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of The Shops at West End as a business combination and incurred acquisition related costs of $1.9 million at acquisition.

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AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

The Company settled its contingent consideration arrangement associated with The Shops at West End during the quarter ended June 30, 2015. The settlement resulted in the Company recognizing a fair value adjustment to contingent purchase price of $13.8 million on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2015, of which the Company received $13.2 million as of June 30, 2015. Simultaneously, the Company impaired the contingent-related items that were ascribed value at acquisition, resulting in the Company recognizing impairment charges of $4.4 million on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2015.

Township Marketplace

On December 23, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Township Marketplace, a power center located in Monaca, Oklahoma ("Township Marketplace"). The seller had no preexisting relationship with the Company. The contract purchase price of Township Marketplace was $41.1 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of Township Marketplace as a business combination and incurred acquisition related costs of $1.2 million at acquisition.

Northpark Center

On June 29, 2015, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Northpark Center, a power center located in Huber Heights, Ohio ("Northpark Center"). The seller had no preexisting relationship with the Company. The contract purchase price of Northpark Center was $33.2 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO and borrowings under the Credit Facility. The Company accounted for the purchase of Northpark Center as a business combination and incurred acquisition related costs of $0.6 million at acquisition, which are reflected in acquisition and transaction related expenses of the consolidated statements of operations and comprehensive loss.

The following table presents the allocation of the assets acquired and liabilities assumed during the six months ended June 30, 2015 and 2014:

	Six Months Ended June 30,
(Dollar amounts in thousands)	2015			2014
Real estate investments, at cost (1):
Land	$	60,590		$	31,375
Buildings, fixtures and improvements	129,140			51,612
Total tangible assets	189,730			82,987
Acquired intangibles:
In-place leases (2)	27,005			11,713
Above-market lease assets (2)	3,905			—
Below-market lease liabilities (2)	(18,618		)	—
Total intangible real estate investments, net	12,292			11,713
Cash paid for acquired real estate investments	$	202,022		$	94,700
Number of properties purchased	8			3

_____________________

(1) Real estate investments, at cost, of $102.2 million acquired during the six months ended June 30, 2015 have been provisionally allocated pending receipt and review of final appraisals and/or other information on such assets prepared by third party specialists.

(2) Weighted-average remaining amortization periods for in-place leases, above-market lease assets and below-market lease liabilities acquired during the six months ended June 30, 2015 were 7.0, 21.6 and 20.8 years, respectively, as of the dates of acquisition.

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AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

The following table presents unaudited pro forma information as if the acquisition during the six months ended June 30, 2015 had been consummated on January 1, 2014. Additionally, the unaudited pro forma net income was adjusted to reclassify acquisition and transaction related expense of $4.0 million from the six months ended June 30, 2015 to the six months ended June 30, 2014:

	Six Months Ended June 30,
(In thousands)	2015 (1)		2014
Pro forma revenues	$	52,010	$	17,162
Pro forma net income (loss)	$	4,945	$	(1,445	)

_____________________

(1) For the six months ended June 30, 2015, aggregate revenues and net income derived from the Company's 2015 acquisition (for the Company's period of ownership) were $1.8 million and $0.7 million, respectively.

The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items:

(In thousands)	Future Minimum Base Rent Payments
July 1, 2015 to December 31, 2015	$	36,771
2016	71,981
2017	68,045
2018	56,099
2019	40,424
Thereafter	165,280
	$	438,600

The following table lists the tenants (including, for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis for all portfolio properties as of June 30, 2015 and 2014:

	June 30,
Tenant	2015	2014
AMC	*	10.7%

____________________________

* Tenant's annualized rental income on a straight-line basis was not greater than or equal to 10.0% of consolidated annualized rental income on a straight-line basis for all portfolio properties as of the date specified.

No other tenant represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2015 and 2014.

12

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2015 and 2014:

	June 30,
State	2015	2014
Texas	16.2%	43.0%
Minnesota	11.2%	*
Florida	10.8%	*
Oklahoma	10.5%	*
Missouri	*	24.9%
Ohio	*	19.0%
Illinois	*	13.1%

____________________________

* State's annualized rental income on a straight-line basis was not greater than or equal to 10.0% of consolidated annualized rental income for all portfolio properties as of the date specified.

The Company did not own properties in any other state that in total represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2015 and 2014.

Note 4 — Credit Facility

On June 11, 2014, the Company, through the OP, entered into a credit agreement (the "Credit Agreement") relating to a credit facility (the "Credit Facility") that provided for aggregate revolving loan borrowings of up to $100.0 million (subject to borrowing base availability), with a $25.0 million swingline subfacility (but not to exceed 10.0% of the commitments then in effect) and a $5.0 million letter of credit subfacility. Through an uncommitted "accordion feature," the OP, subject to certain conditions, was able to increase commitments under the Credit Facility to up to $250.0 million.

On December 2, 2014, the Company, through the OP and certain subsidiaries of the Company acting as guarantors, entered into an unsecured amended and restated credit agreement (the “Amended Credit Agreement”) relating to a revolving credit facility (the “Amended Credit Facility”), which amends and restates the Credit Agreement. The Amended Credit Facility provides for aggregate revolving loan borrowings of up to $325.0 million (subject to unencumbered asset pool availability), with a $25.0 million swingline subfacility and a $20.0 million letter of credit subfacility, subject to certain conditions. Through an uncommitted “accordion feature,” the OP, subject to certain conditions, may increase commitments under the Amended Credit Facility to up to $575.0 million. Borrowings under the Amended Credit Facility, along with cash on hand from the Company’s IPO, are expected to be used to finance portfolio acquisitions and for general corporate purposes. As of June 30, 2015, the Company's unused borrowing capacity was $255.0 million, based on the assets governed by the Amended Credit Facility. As of June 30, 2015, the Company had $70.0 million outstanding under the Amended Credit Facility. As of December 31, 2014, the Company had no outstanding borrowings under the Amended Credit Facility.

BMO Capital Markets acted as joint bookrunner and joint lead arranger for the Amended Credit Facility and its affiliate, BMO Harris Bank N.A., is the administrative agent, letter of credit issuer, swingline lender and a lender thereunder. Regions Capital Markets and SunTrust Robinson Humphrey acted as joint bookrunners and joint lead arrangers for the Amended Credit Facility and its affiliate, Regions Bank and SunTrust Bank are the syndication agents and are lenders thereunder.

Borrowings under the Amended Credit Facility bear interest, at the OP's election, at either (i) the base rate (which is defined in the Amended Credit Agreement as the greatest of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.50%, and (c) LIBOR for a one month interest period plus 1.0%) plus an applicable spread ranging from 0.35% to 1.00%, depending on the Company's consolidated leverage ratio, or (ii) LIBOR for the applicable interest period plus an applicable spread ranging from 1.35% to 2.00%, depending on the Company's consolidated leverage ratio.

The Credit Facility required the Company to pay an unused fee per annum of 0.35% and 0.25%, if the unused balance of the Credit Facility exceeded, or was equal to or less than, 50.0% of the available facility, respectively. The Amended Credit Facility requires the Company to pay an unused fee per annum of 0.25% and 0.15%, if the unused balance of the Amended Credit Facility exceeds, or is equal to or less than, 50.0% of the available facility, respectively.

13

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

The Amended Credit Facility provides for quarterly interest payments for each base rate loan and periodic interest payments for each LIBOR loan, based upon the applicable interest period (though no longer than three months) with respect to such LIBOR loan, with all principal outstanding being due on the maturity date. The Amended Credit Facility will mature on December 2, 2018, provided that the OP, subject to certain conditions, may elect to extend the maturity date one year to December 2, 2019. The Amended Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty. In the event of a default, the lenders have the right to terminate their obligations under the Amended Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Company, certain of its subsidiaries and certain subsidiaries of the OP will guarantee the obligations under the Amended Credit Facility.

The Amended Credit Facility requires the Company to meet certain financial covenants, including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. As of June 30, 2015, the Company was in compliance with the financial covenants under the Amended Credit Agreement.

Note 5 — Mortgage Notes Payable

The Company's mortgage notes payable as of June 30, 2015 and December 31, 2014 consist of the following:

		Outstanding Loan Amount as of				Effective Interest Rate as of
Portfolio	Encumbered Properties	June 30, 2015		December 31, 2014		June 30, 2015			December 31, 2014			Interest Rate		Maturity Date
		(In thousands)		(In thousands)
Liberty Crossing	1	$	11,000	$	11,000	4.66	%		4.66	%		Fixed		Jul. 2018
San Pedro Crossing (1)	1	17,985		17,985		3.79	%		3.79	%		Fixed		Jan. 2018
Tiffany Springs MarketCenter	1	33,802		33,802		3.92	%		3.92	%		Fixed	(2)	Oct. 2018
Shops at Shelby Crossing	1	23,963		24,144		4.97	%		4.97	%		Fixed		Mar. 2024
Total	4	$	86,750	$	86,931	4.28	%	(3)	4.28	%	(3)

_________________________________

(1) Payments and obligations pursuant to this mortgage agreement are guaranteed by the Parent of the Sponsor.

(2) Fixed as a result of entering into a swap agreement.

(3) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated.

The following table summarizes the scheduled aggregate principal payments for the Company's mortgage notes payable for the five years subsequent to June 30, 2015:

(In thousands)	Future Principal Payments
July 1, 2015 to December 31, 2015	$	182
2016	378
2017	400
2018	63,208
2019	443
Thereafter	22,139
	$	86,750

The Company's mortgage notes payable agreements require compliance with certain property-level financial covenants including debt service coverage ratios. As of June 30, 2015, the Company was in compliance with financial covenants under its mortgage notes payable agreements.

14

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

Note 6 — Fair Value of Financial Instruments

The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. This alternative approach also reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The guidance defines three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3 — Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

Although the Company has determined that the majority of the inputs used to value its derivative fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with this derivative utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparty. However, as of June 30, 2015 and December 31, 2014, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and has determined that the credit valuation adjustments are not significant to the overall valuation of the Company's derivative. As a result, the Company has determined that its derivative valuation in its entirety is classified in Level 2 of the fair value hierarchy.

The valuation of derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company's potential nonperformance risk and the performance risk of the counterparties.

The following table presents information about the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, aggregated by the level in the fair value hierarchy within which those instruments fall:

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3		Total
June 30, 2015
Interest rate swap	$	—	$	(475	)	$	—	$	(475	)
December 31, 2014
Interest rate swap	$	—	$	(332	)	$	—	$	(332	)

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets and liabilities. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2015.

15

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable and accrued expenses and distributions payable approximates their carrying value on the accompanying consolidated balance sheets due to their short-term nature. The fair values of the Company's remaining financial instruments that are not reported at fair value on the accompanying consolidated balance sheets are reported in the following table:

		Carrying Amount at		Fair Value at		Carrying Amount at		Fair Value at
(In thousands)	Level	June 30, 2015		June 30, 2015		December 31, 2014		December 31, 2014
Mortgage notes payable and premium, net	3	$	87,025	$	87,709	$	87,223	$	89,347
Credit Facility	3	$	70,000	$	70,000	$	—	$	—

The fair value of mortgage notes payable is estimated by an independent third party using a discounted cash flow analysis, based on management's estimates of market interest rates. Advances under the Credit Facility are considered to be reported at fair value, because its interest rate varies with changes in LIBOR.

16

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

Note 7 — Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships.

Cash Flow Hedges of Interest Rate Risk

The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and collars as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve the receipt of variable-rate amounts if interest rates rise above the cap strike rate on the contract and payments of variable-rate amounts if interest rates fall below the floor strike rate on the contract.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company uses such derivatives to hedge the variable cash flows associated with variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. During the next 12 months, the Company estimates that an additional $0.4 million will be reclassified from other comprehensive loss as an increase to interest expense.

As of June 30, 2015 and December 31, 2014, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

	June 30, 2015			December 31, 2014
Interest Rate Derivative	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
		(In thousands)			(In thousands)
Interest Rate Swap	1	$	34,098	1	$	34,098

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the accompanying consolidated balance sheets as of June 30, 2015 and December 31, 2014:

(In thousands)	Balance Sheet Location	June 30, 2015			December 31, 2014
Derivatives designated as hedging instruments:
Interest Rate Swap	Derivatives, at fair value	$	(475	)	$	(332	)

17

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

The table below details the location in the accompanying consolidated financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the six months ended June 30, 2015 and 2014.

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Amount of gain (loss) recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion)	$	10		$	(385	)	$	(389	)	$	(554	)
Amount of loss reclassified from accumulated other comprehensive loss into income as interest expense (effective portion)	$	(124	)	$	(126	)	$	(247	)	$	(250	)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing) *	$	1		$	(5	)	$	(1	)	$	(5	)

_________________________________

* The Company reclassified approximately $1,000 of other comprehensive income and $1,000 of other comprehensive loss to interest expense during the three and six months ended June 30, 2015, respectively, which represented the ineffective portion of the change in fair value of the derivative.

Offsetting Derivatives

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of June 30, 2015 and December 31, 2014. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the accompanying consolidated balance sheets:

									Gross Amounts Not Offset on the Balance Sheet
(In thousands)	Gross Amounts of Recognized Liabilities			Gross Amounts Offset on the Balance Sheet		Net Amounts of Liabilities presented on the Balance Sheet			Financial Instruments		Cash Collateral Received (Posted)		Net Amount
June 30, 2015	$	(475	)	$	—	$	(475	)	$	—	$	—	$	(475	)
December 31, 2014	$	(332	)	$	—	$	(332	)	$	—	$	—	$	(332	)

Derivatives Not Designated as Hedges

Derivatives not designated as hedges are not speculative. These derivatives may be used to manage the Company's exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements to be classified as hedging instruments. As of June 30, 2015 and December 31, 2014, the Company does not have any hedging instruments that do not qualify for hedge accounting.

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

As of June 30, 2015, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $0.5 million. As of June 30, 2015, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $0.5 million at June 30, 2015.

Note 8 — Common Stock

As of June 30, 2015 and December 31, 2014, the Company had 95.8 million and 94.4 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, and had received total proceeds from the IPO and the DRIP of $951.2 million and $938.7 million, respectively.

18

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

On September 19, 2011, the Company's board of directors authorized, and the Company declared, distributions payable to stockholders of record each day during the applicable period equal to $0.0017534247 per day, which is equivalent to $0.64 per annum, per share of common stock. Distributions began to accrue on June 8, 2012, the date of the Company's initial property acquisition. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

Share Repurchase Program

 The Company's board of directors has adopted a Share Repurchase Program ("SRP") that enables stockholders to sell their shares to the Company in limited circumstances. The SRP permits investors to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below.

Prior to the time that the Company's shares are listed on a national securities exchange and until the Company establishes an estimated value for the shares, the purchase price per share will depend on the length of time investors have held such shares as follows: after one year from the purchase date — the lower of $9.25 or 92.5% of the amount they actually paid for each share; after two years from the purchase date —the lower of $9.50 or 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $9.75 or 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $10.00 or 100.0% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations). The Company expects to begin establishing an estimated value for its shares based on the value of its real estate and real estate-related investments beginning 18 months after the close of its offering. Beginning 18 months after the completion of the Company's offering (excluding common shares issued under the DRIP), the board of directors will determine the value of the properties and the other assets based on such information as the board determines appropriate, which is expected to include independent valuations of properties or of the Company as a whole, prepared by third-party service providers.

The Company is only authorized to repurchase shares pursuant to the SRP up to the value of the shares issued under the DRIP and will limit the amount spent to repurchase shares in a given quarter to the value of the shares issued under the DRIP in that same quarter. In addition, the board of directors may reject a request for redemption, at any time. Due to these limitations, the Company cannot guarantee that it will be able to accommodate all repurchase requests. Purchases under the SRP by the Company will be limited in any calendar year to 5.0% of the weighted-average number of shares outstanding during the prior calendar year.

The Company's board of directors reserves the right, in its sole discretion, at any time and from time to time, to reject any request for repurchase, change the purchase price for repurchases or otherwise amend the terms of, suspend or terminate the SRP.

When a stockholder requests repurchases and the repurchases are approved by the Company's board of directors, it will reclassify such obligation from equity to a liability based on the settlement value of the obligation. The following table summarizes the repurchases of shares under the SRP cumulatively through June 30, 2015:

	Number of Requests	Number of Shares Repurchased	Weighted-Average Price per Share
Cumulative repurchases as of December 31, 2014	19	73,492	$	9.82
Six Months Ended June 30, 2015	39	467,905	9.56
Cumulative repurchases as of June 30, 2015 (1)	58	541,397	$	9.60

_____________________

(1) Includes 27 unfulfilled repurchase requests consisting of 423,428 shares with a weighted-average repurchase price per share of $9.53, which were approved for repurchase as of June 30, 2015 and were completed during the third quarter of 2015. This liability is included in accounts payable and accrued expenses on the Company's consolidated balance sheet as of June 30, 2015.

19

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

Distribution Reinvestment Plan

Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP.  Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the IPO. The board of directors may designate that certain cash or other distributions be excluded from the DRIP.  The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days' notice to participants. Shares issued under the DRIP are recorded to equity in the accompanying consolidated balance sheet in the period distributions are declared.  During the six months ended June 30, 2015, the Company issued 1.8 million shares of common stock with a value of $17.5 million and a par value per share of $0.01 pursuant to the DRIP.

Note 9 — Commitments and Contingencies

Future Minimum Ground Lease Payments

The Company entered into lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter:

(In thousands)	Future Minimum Base Rent Payments
July 1, 2015 to December 31, 2015	$	249
2016	504
2017	514
2018	524
2019	535
Thereafter	9,923
	$	12,249

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on its financial position or results of operations.

Note 10 —Related Party Transactions and Arrangements

The Sponsor and American Realty Capital Retail Special Limited Partnership, LLC, an entity controlled by the Sponsor, owned 242,222 shares of the Company's outstanding common stock as of June 30, 2015 and December 31, 2014. As of June 30, 2015 and December 31, 2014, the Advisor owned 202 OP Units.

20

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

Fees Paid in Connection with the IPO

During the IPO, the Dealer Manager was paid fees and compensation in connection with the sale of the Company's common stock. The Dealer Manager was paid a selling commission of up to 7.0% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Dealer Manager received up to 3.0% of the gross proceeds from the sale of common stock, before reallowance to participating broker-dealers, as a dealer manager fee. The Dealer Manager was entitled to reallow its dealer manager fee to participating broker-dealers, based on such factors as the volume of shares sold by respective participating broker-dealers and marketing support incurred as compared to those of other participating broker-dealers. The following table details total selling commissions and dealer manager fees incurred by the Company during the three and six months ended June 30, 2015 and 2014 and payable to the Dealer Manager as of June 30, 2015 and December 31, 2014:

	Three Months Ended June 30,				Six Months Ended June 30,				Payable as of
(In thousands)	2015		2014		2015		2014		June 30, 2015		December 31, 2014
Total commissions and fees to the Dealer Manager	$	—	$	16,685	$	—	$	29,632	$	—	$	—

The Advisor and its affiliates were paid compensation and received expense reimbursements for services relating to the IPO. The Company utilizes transfer agent services provided by an affiliate of the Dealer Manager. All offering costs relating to the IPO incurred by the Company or entities affiliated with the Advisor on behalf of the Company are charged to additional paid-in capital on the accompanying consolidated balance sheets. The following table details offering costs and reimbursements incurred during the three and six months ended June 30, 2015 and 2014 and payable to the Advisor and Dealer Manager as of June 30, 2015 and December 31, 2014:

	Three Months Ended June 30,				Six Months Ended June 30,				Payable (Receivable) as of
(In thousands)	2015		2014		2015		2014		June 30, 2015			December 31, 2014
Fees and expense reimbursements to the Advisor and Dealer Manager	$	—	$	590	$	—	$	1,012	$	(29	)	$	1,152

The Company was responsible for paying offering and related costs from the IPO, excluding commissions and dealer manager fees, up to a maximum of 1.5% of gross proceeds received from the IPO, measured at the end of the IPO. Offering costs in excess of the 1.5% cap as of the end of the IPO are the Advisor's responsibility. As of the close of the IPO, cumulative offering and related costs, excluding commissions and dealer manager fees, did not exceed the 1.5% threshold.

Fees and Participations Paid in Connection With the Operations of the Company

The Advisor is paid an acquisition fee equal to 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for any loan or other investment. The Advisor is also paid for services provided for which it incurs investment-related expenses, or insourced expenses. Such insourced expenses will be fixed initially at, and may not exceed, 0.5% of the contract purchase price and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company pays third party acquisition expenses. Once the proceeds from the IPO have been fully invested, the aggregate amount of acquisition fees and financing coordination fees (as described below) will not exceed 1.5% of the contract purchase price and the amount advanced for a loan or other investment, as applicable, for all the assets acquired. In no event will the total of all acquisition fees and acquisition expenses (including any financing coordination fees) payable with respect to the Company's portfolio of investments or reinvestments exceed 4.5% of the contract purchase price to be measured at the close of the acquisition phase or 4.5% of the amount advanced for all loans or other investments.

If the Advisor provides services in connection with the origination or refinancing of any debt that the Company obtains and uses to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, the Company will pay the Advisor a financing coordination fee equal to 1.0% of the amount available or outstanding under such financing, subject to certain limitations.

21

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

In connection with the asset management services provided by the Advisor, the Company issued to the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." Class B Units are intended to be profit interests which will vest, and no longer be subject to forfeiture, at such time as: (x) the value of the OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 7.0% cumulative, pre-tax, non-compounded annual return thereon (the "economic hurdle"); (y) any one of the following occurs: (1) the termination of the advisory agreement by an affirmative vote of a majority of the Company's independent directors without cause; (2) a listing of the Company's common stock on a national securities exchange; or (3) another liquidity event; and (z) the Advisor is still providing advisory services to the Company (the "performance condition"). Unvested Class B Units will be forfeited immediately if: (a) the advisory agreement is terminated other than by an affirmative vote of a majority of the Company's independent directors without cause; or (b) the advisory agreement is terminated by an affirmative vote of a majority of the Company's independent directors without cause before the economic hurdle has been met.

When and if approved by the board of directors, the Class B Units are issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter is equal to the cost of the Company's assets multiplied by 0.1875%, divided by the value of one share of common stock as of the last day of such calendar quarter, which is equal initially to $9.00 (the initial offering price in the IPO minus selling commissions and dealer manager fees). As of June 30, 2015, the Company cannot determine the probability of achieving the performance condition. The value of issued Class B Units will be determined and expensed when the Company deems the achievement of the performance condition to be probable. The Advisor receives distributions on the vested and unvested Class B Units it receives in connection with its asset management subordinated participation at the same rate as distributions received on the Company's common stock. Such distributions on issued Class B Units are included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss until the performance condition is considered probable to occur. As of June 30, 2015, the Company's board of directors has approved the issuance of and the OP has issued 479,802 Class B Units to the Advisor in connection with this arrangement on a cumulative basis.

Effective April 1, 2015:

i. for any period commencing on or after April 1, 2015, the Company pays the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee (as defined in the advisory agreement) equal to 0.75% per annum of the Cost of Assets (as defined in the advisory agreement);

ii. such Asset Management Fee will be payable monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor; and

iii. the Company shall not cause the OP to issue any Class B Units in respect of periods subsequent to March 31, 2015.

In connection with property management and leasing services, unless the Company contracts with a third party, the Company will pay to an affiliate of the Advisor a property management fee of 2.0% of gross revenues from the Company's stand-alone single-tenant net leased properties which are not part of a shopping center and 4.0% of gross revenues from all other types of properties. The Company will also reimburse the affiliate for property level expenses. If the Company contracts directly with third parties for such services, the Company will pay them customary market fees and, prior to January 28, 2014, would pay the Advisor an oversight fee of up to 1.0% of the gross revenues of the property managed. In no event would the Company pay the Advisor or any affiliate both a property management fee and an oversight fee with respect to any particular property. Effective January 28, 2014, the Advisor eliminated the oversight fee.

In connection with any construction, renovation or tenant finish-out on any property, the Company will pay the Advisor 6.0% of the hard costs of the construction, renovation and/or tenant finish-out, as applicable.

Effective March 1, 2013, the Company entered into an agreement with the Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. Strategic advisory fees were amortized over the estimated remaining term of the IPO and, as such, have been fully amortized as of June 30, 2015. These fees are included in general and administrative expenses in the accompanying consolidated statement of operations and comprehensive loss. The Dealer Manager and its affiliates also provide transfer agency services, as well as transaction management and other professional services. These fees are also included in general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss during the period the service was provided.

22

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

The following table details amounts incurred and forgiven during the three and six months ended June 30, 2015 and 2014 and amounts contractually due as of June 30, 2015 and December 31, 2014 in connection with the operations related services described above:

	Three Months Ended June 30,								Six Months Ended June 30,								Payable as of
	2015				2014				2015				2014				June 30, 2015		December 31, 2014
(In thousands)	Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven
One-time fees and reimbursements:
Acquisition fees and related cost reimbursements	$	2,644	$	—	$	1,420	$	—	$	3,038	$	—	$	1,420	$	—	$	—	$	—
Financing coordination fees (1)	—		—		1,000		—		—		—		1,000		—		—		—
Ongoing fees:
Asset management fees (2)	1,457		—		—		—		1,457		—		—		—		—		—
Transfer agent and other professional services	927		—		46		$	—	1,559		—		46		—		802		617
Strategic advisory fees	—		—		148		$	—	—		—		297		—		—		—
Distributions on Class B Units	68		—		6		$	—	95		—		7		—		25		—
Total related party operation fees and reimbursements	$	5,096	$	—	$	2,620	$	—	$	6,149	$	—	$	2,770	$	—	$	827	$	617

_________________________________

(1) These fees have been capitalized to deferred costs, net on the consolidated balance sheets.

(2) Effective April 1, 2015, the Company pays the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. From October 1, 2013 through March 31, 2015, the Company caused the OP to issue (subject to approval by the board of directors) to the Advisor restricted performance-based Class B Units for asset management services, which will be forfeited immediately if certain conditions occur.

The Company reimburses the Advisor's costs of providing administrative services, subject to the limitation that it will not reimburse the Advisor for any amount by which the Company's operating expenses (including the asset management fee, as applicable) at the end of the four preceding fiscal quarters exceeds the greater of (a) 2.0% of average invested assets, or (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash expenses and excluding any gain from the sale of assets for that period, unless the Company's independent directors determine that such excess was justified based on unusual and nonrecurring factors which they deem sufficient, in which case the excess amount may be reimbursed to the Advisor in subsequent periods. Additionally, the Company reimburses the Advisor for personnel costs in connection with other services during the operational stage; however, the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expenses or real estate commissions. The Company will not reimburse the Advisor for salaries and benefits paid to the Company's executive officers. No reimbursements were made to the Advisor for providing administrative services during the three and six months ended June 30, 2015 or 2014.

23

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to waive certain fees. Because the Advisor may waive certain fees, cash flows from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's general and administrative costs and/or property operating costs. No general and administrative costs were absorbed by the Advisor during the three months ended June 30, 2015 and 2014 and the six months ended June 30, 2015. The Advisor absorbed $0.3 million of general and administrative costs during the six months ended June 30, 2014. No property operating costs were absorbed by the Advisor during the three and six months ended June 30, 2015 and 2014. General and administrative expenses and property operating expenses are presented net of costs absorbed by the Advisor on the accompanying consolidated statements of operations and comprehensive loss.

Fees and Participations Paid in Connection with Liquidation or Listing

 The Company will pay a brokerage commission to the Advisor or its affiliates on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and one-half of the total brokerage commission paid, if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in light of the size, type and location of the property, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. No such fees were incurred during the three and six months ended June 30, 2015 and 2014.

The Company will pay the Advisor a subordinated participation in the net sales proceeds of the sale of real estate assets of 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of a 7.0% cumulative, pre-tax non-compounded annual return on the capital contributed by investors.  The Company cannot assure that it will provide this 7.0% annual return and the Advisor will not be entitled to the subordinated participation in net sale proceeds unless the Company's investors have received a 7.0% cumulative non-compounded annual return on their capital contributions plus the 100.0% repayment of capital committed by such investors. No such amounts were incurred during the three and six months ended June 30, 2015 or 2014.

If the Company's shares of common stock are listed on a national securities exchange, the Advisor will receive a subordinated incentive listing distribution from the OP of 15.0% of the amount by which the Company's market value plus distributions paid prior to listing exceeds the aggregate capital contributed by investors plus an amount equal to a 7.0% cumulative, pre-tax non-compounded annual return to investors.  The Company cannot assure that it will provide this 7.0% annual return and the Advisor will not be entitled to the subordinated incentive listing distribution unless investors have received a 7.0% cumulative, pre-tax non-compounded annual return on their capital contributions plus the 100.0% repayment of capital committed by such investors. No such distribution was incurred during the three and six months ended June 30, 2015 or 2014. Neither the Advisor nor any of its affiliates can earn both the subordinated participation in the net sales proceeds and the subordinated listing distribution.

Upon termination or non-renewal of the advisory agreement, the Advisor will receive distributions from the OP equal to 15.0% of the amount by which the sum of the Company's market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 7.0% cumulative, pre-tax non-compounded return to investors. The Advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs.

Note 11 — Economic Dependency

Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company's common stock available for issue, transfer agency services, as well as other administrative responsibilities for the Company including accounting services, transaction management services and investor relations.

As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

24

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

Note 12 — Share-Based Compensation

Stock Option Plan

The Company has a stock option plan (the "Plan") which authorizes the grant of nonqualified stock options to the Company's independent directors, officers, advisors, consultants and other personnel, subject to the absolute discretion of the board of directors and the applicable limitations of the Plan. The exercise price for all stock options granted under the Plan will be fixed at $10.00 per share until the termination of the IPO, and thereafter the exercise price for stock options granted to the independent directors will be equal to the fair market value of a share on the last business day preceding the annual meeting of stockholders. A total of 0.5 million shares have been authorized and reserved for issuance under the Plan. As of June 30, 2015 and December 31, 2014, no stock options were issued under the Plan.

Restricted Share Plan

The Company has an employee and director incentive restricted share plan (the "RSP"), which provides for the automatic grant of 3,000 restricted shares of common stock to each of the independent directors, without any further approval by the Company's board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholders' meeting. Restricted stock issued to independent directors will vest over a five-year period following the date of grant in increments of 20.0% per annum. The RSP provides the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. The total number of shares of common stock granted under the RSP may not exceed 5.0% of the Company's outstanding shares of common stock on a fully diluted basis at any time and in any event will not exceed 7.5 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

Restricted share awards entitle the recipient to receive shares of common stock from the Company under terms that provide for vesting over a specified period of time. Such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock will be subject to the same restrictions as the underlying restricted shares. The following table reflects restricted share award activity for the six months ended June 30, 2015:

	Number of Shares of Restricted Stock		Weighted-Average Issue Price Per Share
Unvested, December 31, 2014	15,600		$	9.08
Vested	(3,600	)	9.17
Unvested, June 30, 2015	12,000		$	9.05

As of June 30, 2015, the Company had $0.1 million of unrecognized compensation cost related to unvested restricted share awards granted under the Company's RSP. That cost is expected to be recognized over a weighted-average period of 3.6 years.

The fair value of the restricted shares is being expensed on a straight-line basis over the service period of five years. Compensation expense related to restricted stock was approximately $9,000 and $13,000 during the three months ended June 30, 2015 and 2014, respectively. Compensation expense related to restricted stock was approximately $19,000 and $24,000 during the six months ended June 30, 2015 and 2014, respectively.

Other Share-Based Compensation

The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors, at each director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. The following table reflects the shares of common stock issued to directors in lieu of cash compensation:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Shares issued in lieu of cash	—		1,611		—		2,111
Value of shares issued in lieu of cash (in thousands)	$	—	$	15	$	—	$	19

25

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

Note 13 — Net Income (Loss) Per Share

 The following is a summary of the basic and diluted net income (loss) per share computation for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30,							Six Months Ended June 30,
(In thousands, except share and per share amounts)	2015				2014			2015				2014
Computation of Basic Net Income (Loss) Per Share:
Basic net income (loss)	$	4,999			$	(2,913	)	$	5,045			$	(3,512	)
Basic weighted-average shares outstanding	95,915,695				29,000,403			95,480,309				21,033,404
Basic net income (loss) per share	$	0.05			$	(0.10	)	$	0.05			$	(0.17	)
Computation of Diluted Net Income (Loss) Per Share:
Basic net income (loss)	$	4,999			$	(2,913	)	$	5,045			$	(3,512	)
Adjustments to net income (loss) for common share equivalents	(101		)		—			(101		)		—
Diluted net income (loss)	$	4,898			$	(2,913	)	$	4,944			$	(3,512	)
Basic weighted-average shares outstanding	95,915,695				29,000,403			95,480,309				21,033,404
Shares of unvested restricted stock	14,051			(1)	—			14,771			(1)	—
OP Units	202				—			202				—
Class B Units (2)	—				—			—				—
Diluted weighted-average shares outstanding	95,929,948				29,000,403			95,495,282				21,033,404
Diluted net income (loss) per share	$	0.05			$	(0.10	)	$	0.05			$	(0.17	)

_____________________

(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 12,000 shares of unvested restricted stock outstanding as of June 30, 2015.

(2) Weighted-average number of issued and unvested Class B Units for the three months ended June 30, 2015 and 2014 and the six months ended June 30, 2015 and 2014 were 438,948, 35,771, 305,213 and 21,413, respectively. The Class B Units are subject to a performance vesting condition that the Company has not achieved as of June 30, 2015 and 2014, and as such, the weighted-average number of issued and unvested Class B Units are not included in the above calculations of diluted weighted-average shares outstanding for the periods presented. As of June 30, 2015 and 2014, the Company's board of directors had approved the issuance of 479,802 and 45,178 Class B Units, respectively.

Diluted net income (loss) per share assumes the conversion of all common stock equivalents into an equivalent number of common shares, unless the effect is antidilutive. The Company considers unvested restricted stock and OP Units to be common share equivalents. The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented:

	Three Months Ended June 30,		Six Months Ended June 30,
	2014		2014
Shares of unvested restricted stock	20,314	(1)	19,959	(1)
OP Units	202		202
Total common stock equivalents	20,516		20,161

_____________________

(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 24,600 shares of unvested restricted stock outstanding as of June 30, 2014.

26

AMERICAN REALTY CAPITAL – RETAIL CENTERS OF AMERICA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

Note 14 — Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have not been any events that have occurred that would require adjustments to, or disclosures in, the consolidated financial statements except for the following disclosures:

Acquisitions

From July 1, 2015 to August 12, 2015, the Company acquired one property with a contract purchase price of $28.2 million, exclusive of closing costs.

Sponsor Transactions

On August 6, 2015, the Parent of the Sponsor entered into a Transaction Agreement (the “Transaction Agreement”) with AMH Holdings (Cayman), L.P., a Cayman Islands exempted limited partnership (“AMH”), and an affiliate of Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”), and a newly formed entity, AR Global Investments, LLC, a Delaware limited liability company (“AR Global”). The Transaction Agreement provides that the Parent of the Sponsor will transfer to AR Global substantially all of the assets of its ongoing asset management business (including equity interests in its subsidiaries). AMH will contribute money and other assets to AR Global. Following the consummation of the transaction contemplated by the Transaction Agreement, AMH will hold a 60% interest in AR Global and the Parent of the Sponsor will hold a 40% interest in AR Global. The business and affairs of AR Global will be overseen by a board of managers comprised of ten members, six of which will be appointed by AMH and four of which will be appointed by the Parent of the Sponsor. The Advisor is currently owned indirectly by the Parent of the Sponsor and following the transaction will be owned indirectly by AR Global.

Also on August 6, 2015, RCS Capital Corporation (“RCS Capital”), the parent of the Dealer Manager and a company under common control with the Parent of the Sponsor, announced that it has entered into an agreement with an affiliate of Apollo to sell RCS Capital’s Wholesale Distribution division, including the Dealer Manager, and certain related entities (collectively, the "Transactions"). Upon completion of the transaction, the Dealer Manager will continue to operate as a stand-alone entity within AR Global. The current management team of the Dealer Manager, which is led by William E. Dwyer III, will continue to operate the day-to-day functions of the business.

The Transactions are subject to customary closing conditions and are expected to close in 2015. Upon consummation of the Transactions, the Sponsor and Advisor are expected to continue to serve in their respective capacities to the Company. The Company’s independent directors unanimously endorsed the Transactions.

27

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with the accompanying financial statements of American Realty Capital — Retail Centers of America, Inc. and the notes thereto. As used herein, the terms the "Company," "we," "our" and "us" refer to American Realty Capital — Retail Centers of America, Inc., a Maryland corporation, including, as required by context, American Realty Capital Retail Operating Partnership, L.P., a Delaware limited partnership, which we refer to as the "OP," and its subsidiaries. The Company is externally managed by American Realty Capital Retail Advisor, LLC (our "Advisor"), a Delaware limited liability company. Capitalized terms used herein but not otherwise defined have the meanings ascribed to those terms in "Part I — Financial Information" included in the notes to the consolidated financial statements and contained herein.

Forward-Looking Statements

Certain statements included in this Quarterly Report on Form 10-Q are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements:

• All of our executive officers are also officers, managers or holders of a direct or indirect controlling interest in American Realty Capital Retail Advisor, LLC, our external affiliated advisor (the "Advisor"), our dealer manager, Realty Capital Securities, LLC (the "Dealer Manager"), or other entities affiliated with AR Capital, LLC (the "Parent of our Sponsor"), the parent of our sponsor, American Realty Capital IV, LLC (the "Sponsor"). As a result, our executive officers, our Advisor and its affiliates face conflicts of interest, including significant conflicts created by our Advisor's and its affiliates' compensation arrangements with us and other investment programs advised by American Realty Capital affiliates and conflicts in allocating time among these investment programs and us. These conflicts could result in unanticipated actions.

• Lincoln Retail REIT Services, LLC, a Delaware limited liability company ("Lincoln"), and its affiliates may have conflicts of interest in determining which investment opportunities to recommend to our Advisor for presentation to us and to other programs for which they may provide these services.

• Lincoln and its affiliates have to allocate their time between providing services to our Advisor and other real estate programs and other activities in which they are presently involved or may be involved in the future.

• Because investment opportunities that are suitable for us may also be suitable for other investment programs advised by affiliates of the Parent of our Sponsor, our Advisor and its affiliates face conflicts of interest relating to the purchase of properties and other investments and such conflicts may not be resolved in our favor, meaning that we could invest in less attractive assets, which could reduce the investment return to our stockholders.

• We depend on tenants for our revenue and, accordingly, our revenue is dependent upon the success and economic viability of our tenants.

• Our tenants may not achieve the rental rate incentives in certain lease agreements, which may impact our results of operations.

• Increases in interest rates could increase the amount of our debt payments and limit our ability to pay distributions to our stockholders.

• We may not generate cash flows sufficient to pay distributions to our stockholders, as such, we may be forced to borrow at unfavorable rates or depend on our Advisor to waive reimbursement of certain expenses and fees to fund our operations. There is no assurance that our Advisor will waive reimbursement of expenses or fees.

• We may be unable to pay or maintain cash distributions or increase distributions over time.

• If we and our Advisor are unable to find suitable investments, then we may not be able to achieve our investment objectives or pay distributions with cash flows from operations.

• We are obligated to pay fees, which may be substantial, to our Advisor and its affiliates, including fees upon the sale of properties.

• No public market currently exists, or may ever exist, for shares of our common stock and our shares are, and may continue to be, illiquid.

28

• Our organizational documents permit us to pay distributions from unlimited amounts of any source. There are no established limits on the amounts of borrowings that we may use to fund such distribution payments. Any distributions may reduce the amount of capital we ultimately invest in properties and other permitted investments and negatively impact the value of our stockholders' investment.

• We have not generated, and in the future may not generate, cash flows sufficient to cover our distributions to stockholders, and, as such, we may be forced to source distributions from borrowings, which may be at unfavorable rates, or depend on our Advisor to waive reimbursement of certain expenses and fees to fund our operations. There is no assurance that our Advisor will waive reimbursement of expenses or fees.

• We are subject to risks associated with any dislocation or liquidity disruptions that may exist or occur in the credit markets of the United States of America from time to time.

• We may fail to continue to qualify to be treated as a real estate investment trust for U.S. federal income tax purposes ("REIT"), which would result in higher taxes, may adversely affect our operations and would reduce the value of an investment in our common stock and the cash available for distributions.

• We may be deemed to be an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act"), and thus be subject to regulation under the Investment Company Act.

• We own 28 properties as of June 30, 2015.

Overview

We were incorporated on July 29, 2010 as a Maryland corporation and qualified as a REIT beginning with the taxable year ended December 31, 2012. On March 17, 2011, we commenced our initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 150.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, pursuant to a registration statement on Form S-11, as amended (File No. 333-169355) (the "Registration Statement"), filed with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act"). The Registration Statement also covered up to 25.0 million shares available pursuant to a distribution reinvestment plan (the "DRIP") under which our common stockholders were able to elect to have their distributions reinvested in additional shares of our common stock at a price initially equal to $9.50 per share, which was 95.0% of the per share offering price in the IPO. On May 7, 2015, we filed a post-effective amendment to the Registration Statement to deregister the unsold shares registered under the Registration Statement.

On March 9, 2012, we raised proceeds sufficient to break escrow in connection with our IPO. On March 4, 2013, our board of directors approved an extension of the termination date of the IPO from March 17, 2013 to March 17, 2014. On March 14, 2014, we filed a registration statement on Form S-11 (File No. 333-194586) (the "Follow-On Registration Statement") with the SEC to register a follow-on offering of up to 75.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, and 12.5 million shares of common stock pursuant to the DRIP. However, as permitted by Rule 415 under the Securities Act, we continued offering and selling shares in our IPO until September 12, 2014.

The IPO closed on September 12, 2014. On September 17, 2014, we withdrew our Follow-On Registration Statement, from which no securities were sold. On September 19, 2014, we registered an additional 25.0 million shares of common stock to be used under the DRIP (as amended to include a direct stock purchase component) pursuant to a registration statement on Form S-3D (File No. 333-198864).

As of June 30, 2015, we had 95.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, and had received total proceeds from the IPO and the DRIP of $951.2 million.

We have acquired and intend to acquire and own existing anchored, stabilized core retail properties, including power centers, lifestyle centers, grocery-anchored shopping centers (with a purchase price in excess of $20.0 million) and other need-based shopping centers which are located in the United States and at least 80.0% leased at the time of acquisition. All properties will be acquired and operated by us or acquired and operated by us jointly with another party. We may also originate or acquire first mortgage loans secured by real estate. We purchased our first property and commenced active operations in June 2012. As of June 30, 2015, we owned 28 properties with an aggregate purchase price of $903.7 million, comprised of 5.8 million rentable square feet which were 94.7% leased on a weighted-average basis.

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Substantially all of our business is conducted through American Realty Capital Retail Operating Partnership, L.P. (the "OP"), a Delaware limited partnership. We are the sole general partner and hold substantially all the units of limited partner interest in the OP ("OP Units"). Our Advisor, a limited partner in the OP, holds 202 OP Units, which represents a nominal percentage of the aggregate OP ownership. After holding the OP Units for a period of one year, or upon liquidation of the OP or sale of substantially all of the assets of the OP, holders of OP Units have the right to convert OP Units for the cash value of a corresponding number of shares of our common stock or, at the option of the OP, a corresponding number of shares of our common stock, in accordance with the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.

We have no direct employees. We have retained the Advisor to manage our affairs on a day-to-day basis. The Advisor has entered into a service agreement with Lincoln pursuant to which Lincoln has agreed to provide, subject to the Advisor's oversight, real estate-related services, including locating investments, negotiating financing, and providing property-level asset management services, property management services, leasing and construction oversight services and disposition services, as needed. Our Dealer Manager served as the dealer manager of the IPO. The Advisor and the Dealer Manager are under common control with the Parent of our Sponsor, as a result of which they are related parties, and each of which has received or will receive compensation, fees and expense reimbursements for services related to our IPO and the investment and management of our assets. Such entities have received or may receive, as applicable, fees during the offering, acquisition, operational and liquidation stages. The Advisor has paid and will continue to pay Lincoln a substantial portion of the fees payable to the Advisor for the performance of real estate-related services.

Significant Accounting Estimates and Critical Accounting Policies

 Set forth below is a summary of the significant accounting estimates and critical accounting policies that management believes are important to the preparation of our financial statements. Certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations and require the application of significant judgment by our management. As a result, these estimates are subject to a degree of uncertainty. These significant accounting estimates and critical accounting policies include:

Offering and Related Costs

Offering and related costs include all expenses incurred in connection with our IPO. Offering costs (other than selling commissions and the dealer manager fees) include costs that may be paid by the Advisor, the Dealer Manager or their affiliates on our behalf. These costs include but are not limited to (i) legal, accounting, printing, mailing, and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Dealer Manager for amounts it may pay to reimburse itemized and detailed due diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. We are obligated to reimburse the Advisor or its affiliates, as applicable, for organization and offering costs paid by them on our behalf, provided that the Advisor is obligated to reimburse us to the extent organization and offering costs (excluding selling commissions and the dealer manager fee) incurred by us in our IPO exceed 1.5% of gross offering proceeds from the IPO. As a result, these costs are only our liability to the extent aggregate selling commissions, dealer manager fees and other organization and offering costs do not exceed 11.5% of the gross proceeds determined at the end of our IPO. As of the close of the IPO, offering costs were less than 11.5% of the gross proceeds received in the IPO.

Revenue Recognition

Our revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Since many of our leases provide for rental increases at specified intervals, straight-line basis accounting requires us to record a receivable, and include in revenues, unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When we acquire a property, the terms of the existing leases are considered to commence as of the acquisition date for the purposes of this calculation. We defer the revenue related to lease payments received from tenants in advance of their due dates.

We own certain properties with leases that include provisions for the tenant to pay contingent rental income based on a percent of the tenant's sales upon the achievement of certain sales thresholds or other targets which may be monthly, quarterly or annual targets. As the lessor to the aforementioned leases, we defer the recognition of contingent rental income until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known. Contingent rental income is included in rental income on the accompanying consolidated statements of operations.

Cost recoveries from tenants are included in operating expense reimbursements on the accompanying consolidated statements of operations in the period the related costs are incurred, as applicable.

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We continually review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. If the collectability of a receivable is in doubt, we record an increase in our allowance for uncollectible accounts or record a direct write-off of the receivable in our consolidated statement of operations.

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

We evaluate the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive loss. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings, fixtures and tenant improvements. Intangible assets may include the value of in-place leases and above- and below- market leases. In addition, any assumed mortgages receivable or payable and any assumed or issued noncontrolling interests are recorded at their estimated fair values.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease, including any below-market fixed rate renewal options for below-market leases.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above or below-market interest rates.

In allocating non-controlling interests, amounts are recorded based on the fair value of units issued at the date of acquisition, as determined by the terms of the applicable agreement.

In making estimates of fair values for purposes of allocating purchase price, we utilize a number of sources, including real estate valuations, prepared by independent valuation firms. We also consider information and other factors including: market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e.: location, size, demographics, value and comparative rental rates, tenant credit profile, store profitability and the importance of the location of the real estate to the operations of the tenant’s business.

We are required to present the operations related to properties that have been sold or properties that are intended to be sold as discontinued operations in the consolidated statements of operations and comprehensive loss for all periods presented to the extent the disposal of a component represents a strategic shift that has or will have a major effect on our operations and financial results. Properties that are intended to be sold are to be designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Properties are no longer depreciated when they are classified as held for sale.

Depreciation and Amortization

We are required to make subjective assessments as to the useful lives of the components of our real estate investments for purposes of determining the amount of depreciation to record on an annual basis. These assessments have a direct impact on our net income because if we were to shorten the expected useful lives of our real estate investments, we would depreciate these investments over fewer years, resulting in more depreciation expense and lower net income on an annual basis.

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are amortized as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

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The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

Assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining terms of the respective mortgages.

Impairment of Long-Lived Assets

When circumstances indicate the carrying value of a property may not be recoverable, we review the property for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. We have not yet selected a transition method and are currently evaluating the impact of the new guidance.

In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We have adopted the provisions of this guidance for the fiscal year ending December 31, 2015 and determined that there is no impact to our financial position, results of operations and cash flows.

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. If we decide to early adopt the revised guidance in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes the interim period. We are currently evaluating the impact of the new guidance.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not previously been issued. If we decide to early adopt the revised guidance in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes the interim period. We are currently evaluating the impact of the new guidance.

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Properties

We acquire and operate retail properties. All such properties may be acquired and operated by us alone or jointly with another party. Our portfolio of real estate properties is comprised of the following properties as of June 30, 2015:

Property	Acquisition Date	Property Type	Rentable Square Feet	Occupancy	Remaining Lease Term (1)
Liberty Crossing	Jun. 2012	Power Center	105,970	93.8%	3.9
San Pedro Crossing	Dec. 2012	Power Center	201,965	100.0%	4.9
Tiffany Springs MarketCenter	Sep. 2013	Power Center	238,382	91.5%	6.2
The Streets of West Chester	Apr. 2014	Lifestyle Center	167,155	91.8%	3.8
Prairie Towne Center	Jun. 2014	Power Center	289,277	95.3%	8.8
Southway Shopping Center	Jun. 2014	Power Center	181,809	100.0%	3.3
Stirling Slidell Centre	Aug. 2014	Power Center	134,276	77.2%	5.1
Northwoods Marketplace	Aug. 2014	Power Center	236,078	97.1%	4.5
Centennial Plaza	Aug. 2014	Power Center	233,797	100.0%	3.9
Northlake Commons	Sep. 2014	Lifestyle Center	109,112	94.9%	4.6
Shops at Shelby Crossing	Sep. 2014	Power Center	236,081	89.3%	3.3
Shoppes of West Melbourne	Sep. 2014	Power Center	144,399	89.2%	5.9
The Centrum	Sep. 2014	Power Center	270,747	99.4%	4.1
Shoppes at Wyomissing	Oct. 2014	Lifestyle Center	103,064	94.7%	3.5
Southroads Shopping Center	Oct. 2014	Power Center	429,359	94.2%	5.5
Parkside Shopping Center	Nov. 2014	Power Center	172,622	95.1%	7.2
West Lake Crossing	Nov. 2014	Power Center	75,928	98.6%	5.8
Colonial Landing	Dec. 2014	Power Center	263,559	100.0%	4.8
The Shops at West End	Dec. 2014	Lifestyle Center	381,831	77.5%	9.3
Township Marketplace	Dec. 2014	Power Center	298,630	96.8%	3.8
Cross Pointe Centre	Mar. 2015	Power Center	226,089	98.7%	10.2
Towne Center Plaza	Apr. 2015	Power Center	94,096	100.0%	7.6
Harlingen Corners	May 2015	Power Center	217,772	94.8%	5.9
Bison Hollow	June 2015	Power Center	134,798	100.0%	7.3
Pine Ridge Plaza	June 2015	Power Center	239,492	95.2%	3.8
Village at Quail Springs	June 2015	Power Center	100,404	100.0%	3.7
Jefferson Commons	June 2015	Power Center	205,918	96.2%	10.6
Northpark Center	June 2015	Power Center	318,327	99.2%	4.9
Portfolio, June 30, 2015			5,810,937	94.7%	5.8

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(1) Remaining lease term in years as of June 30, 2015, calculated on a weighted-average basis.

Results of Operations

 We purchased our first property and commenced active operations in June 2012. As of June 30, 2015, we owned 28 properties with an aggregate base purchase price of $903.7 million, comprised of 5.8 million rentable square feet that were 94.7% leased on a weighted-average basis.

Comparison of the Three Months EndedJune 30, 2015 to Three Months EndedJune 30, 2014

As of April 1, 2014, we owned three properties (our "Three Month Same Store") with an aggregate base purchase price of $107.0 million, comprised of 0.5 million rentable square feet that were 94.4% leased on a weighted-average basis. We have acquired 25 properties since April 1, 2014 for an aggregate base purchase price of $796.7 million, comprised of $5.3 million rentable square feet that were 94.6% leased on a weighted-average basis as of June 30, 2015 (our "Three Month Acquisitions"). Accordingly, our results of operations for the three months ended June 30, 2015 as compared to the three months ended June 30, 2014 reflect significant increases in most categories.

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During the three months ended June 30, 2015, we entered into seven new leases comprising a total of 22,406 rentable square feet. These leases will generate annualized rental income on a straight-line basis of $0.5 million, representing average rent per square foot of $22.01. In addition, we executed renewals on 10 leases comprising a total of 64,004 rentable square feet. These leases will generate annualized rental income on a straight-line basis of $1.2 million, representing average rent per square foot of $18.32, excluding the impact of contingent rental income. Prior to the renewals, the average annualized rental income on a straight-line basis was $17.33 per square foot. The one-time cost of executing the leases and renewals, including leasing commissions, tenant improvement costs and tenant concessions, was $7.85 per square foot.

Rental Income

Rental income increased $14.5 million to $17.7 million for the three months ended June 30, 2015, compared to $3.2 million for the three months ended June 30, 2014. This increase in rental income was primarily due to our Three Month Acquisitions, which resulted in an increase in rental income of $14.3 million for the three months ended June 30, 2015. In addition, Three Month Same Store rental income increased by $0.2 million, primarily due to increased occupancy at Liberty Crossing and Tiffany Springs MarketCenter during the three months ended June 30, 2015 as compared to the three months ended June 30, 2014.

Operating Expense Reimbursements

Operating expense reimbursements from tenants increased $3.9 million to $5.0 million for the three months ended June 30, 2015, compared to $1.1 million for the three months ended June 30, 2014. This increase in operating expense reimbursements was primarily due to our Three Month Acquisitions, which resulted in a $3.8 million increase for the three months ended June 30, 2015. Three Month Same Store operating expense reimbursements increased $0.1 million for the three months ended June 30, 2015 primarily due to increased occupancy at Liberty Crossing and Tiffany Springs MarketCenter during the three months ended June 30, 2015 as compared to the three months ended June 30, 2014. Pursuant to many of our lease agreements, tenants are required to pay their pro rata share of property operating expenses, in addition to base rent.

Asset Management Fees to Affiliate

Asset management fees to affiliate for the three months ended June 30, 2015 of $1.5 million were related to services that we received from our Advisor in connection with the management of our assets. See Note 10 —Related Party Transactions and Arrangements for more information on fees payable to our Advisor pursuant to the advisory agreement. There were no asset management fees to affiliate incurred during the three months ended June 30, 2014 as we issued performance-based restricted, forfeitable partnership units of the OP ("Class B Units") for asset management services for the period.

Property Operating Expenses

Property operating expenses increased $6.7 million to $8.0 million for the three months ended June 30, 2015, compared to $1.3 million for the three months ended June 30, 2014. This increase in property operating expenses was primarily due to our Three Month Acquisitions, which resulted in a $6.5 million increase for the three months ended June 30, 2015. In addition, Three Month Same Store property operating expenses increased by $0.1 million, which primarily related to an increase in real estate taxes and repairs and maintenance costs. Property operating expenses primarily relate to the costs associated with maintaining our properties including property management fees incurred from Lincoln, real estate taxes, utilities, and repairs and maintenance.

Impairment Charges

We incurred $4.4 million of impairment charges during the three months ended June 30, 2015. These charges related to the write-off of intangible assets in connection with an unsuccessful contractual arrangement associated with the acquisition of The Shops at West End. No impairment charges were incurred during the three months ended June 30, 2014.

Fair Value Adjustment to Contingent Purchase Price Consideration

During the three months ended June 30, 2015, we recorded a $13.8 million fair value adjustment related to the write-off of contingent purchase price consideration in connection with an unsuccessful contractual arrangement associated with the acquisition of The Shops at West End. No such fair value adjustments were made during the three months ended June 30, 2014.

Acquisition and Transaction Related Expenses

Acquisition and transaction related expenses increased $1.6 million to $3.4 million for the three months ended June 30, 2015, compared to $1.8 million for the three months ended June 30, 2014. These expenses related to our acquisition of seven properties with an aggregate base purchase price of $175.8 million during the three months ended June 30, 2015. The $1.8 million in acquisition and transaction related expenses for the three months ended June 30, 2014 related to our acquisition of three properties with a base purchase price of $94.7 million.

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General and Administrative Expenses

General and administrative expenses increased $1.4 million to $1.9 million for the three months ended June 30, 2015, compared to $0.5 million for the three months ended June 30, 2014. This increase related to higher professional fees, state and local income taxes, directors and officers insurance costs and board member compensation to support our current real estate portfolio. No general and administrative costs were absorbed by the Advisor during the three months ended June 30, 2015 or 2014.

Depreciation and Amortization Expenses

Depreciation and amortization expenses increased $7.9 million to $10.7 million for the three months ended June 30, 2015, compared to $2.8 million for the three months ended June 30, 2014. This increase was primarily attributable to our Three Month Acquisitions, which resulted in an increase in depreciation and amortization expenses of $7.9 million for the three months ended June 30, 2015. This increase was partially offset by approximately $47,000 decrease in Three Month Same Store depreciation and amortization, primarily due to several tenants vacating the properties during the fourth quarter in 2014. The base purchase price of acquired properties is allocated to tangible and identifiable intangible assets and depreciated or amortized over their estimated useful lives.

Interest Expense

Interest expense increased $0.9 million to $1.6 million for the three months ended June 30, 2015, compared to $0.7 million for the three months ended June 30, 2014. Interest expense for the three months ended June 30, 2015 resulted from our mortgage notes payable, which had a weighted-average balance of $86.8 million and a weighted-average effective interest rate of 4.28%, our Credit Facility, which had weighted-average borrowings of $17.5 million and a weighted-average effective interest rate of 1.54%, as well as unused fees on our Amended Credit Facility and amortization of deferred financing costs. Interest expense for the three months ended June 30, 2014 resulted from our mortgage notes payable, which had a weighted-average balance of $63.0 million and a weighted-average interest rate of 4.01%, as well as unused fees on our Credit Facility and amortization of deferred financing costs.

Comparison of the Six Months EndedJune 30, 2015 to Six Months EndedJune 30, 2014

As of January 1, 2014, we owned three properties (our "Six Month Same Store") with an aggregate base purchase price of $107.0 million, comprised of 0.5 million rentable square feet that were 94.4% leased on a weighted-average basis. We have acquired 25 properties since January 1, 2014 for an aggregate base purchase price of $796.7 million, comprised of 5.3 million rentable square feet that were 94.6% leased on a weighted-average basis as of June 30, 2015 (our "Six Month Acquisitions"). Accordingly, our results of operations for the six months ended June 30, 2015 as compared to the six months ended June 30, 2014 reflect significant increases in most categories.

During the six months ended June 30, 2015, we entered into eleven new leases comprising a total of 41,214 rentable square feet. These leases will generate annualized rental income on a straight-line basis of $0.9 million, representing average rent per square foot of $21.46 In addition, we executed renewals on 30 leases comprising a total of 180,121 rentable square feet. These leases will generate annualized rental income on a straight-line basis of $3.2 million, representing average rent per square foot of $17.57, excluding the impact of contingent rental income. Prior to the renewals, the average annualized rental income on a straight-line basis was $17.31 per square foot. The one-time cost of executing the leases and renewals, including leasing commissions, tenant improvement costs and tenant concessions, was $6.82 per square foot.

Rental Income

Rental income increased $28.5 million to $33.8 million for the six months ended June 30, 2015, compared to $5.3 million for the six months ended June 30, 2014. This increase in rental income was primarily due to our Six Month Acquisitions, which resulted in an increase in rental income of $28.2 million for the six months ended June 30, 2015. In addition, Six Month Same Store rental income increased by $0.3 million, primarily due to increased occupancy at Liberty Crossing and Tiffany Springs MarketCenter during the six months ended June 30, 2015 as compared to the six months ended June 30, 2014.

Operating Expense Reimbursements

Operating expense reimbursements from tenants increased $8.1 million to $9.9 million for the six months ended June 30, 2015, compared to $1.8 million for the six months ended June 30, 2014. This increase in operating expense reimbursements was primarily due to our Six Month Acquisitions, which resulted in a $8.0 million increase for the six months ended June 30, 2015. Six Month Same Store operating expense reimbursements increased $0.1 million for the six months ended June 30, 2015 primarily due to increased occupancy at Liberty Crossing and Tiffany Springs MarketCenter during the six months ended June 30, 2015 as compared to the six months ended June 30, 2014. Pursuant to many of our lease agreements, tenants are required to pay their pro rata share of property operating expenses, in addition to base rent.

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Asset Management Fees to Affiliate

Asset management fees to affiliate for the six months ended June 30, 2015 of $1.5 million were related to services that we received from our Advisor in connection with the management of our assets. See Note 10 —Related Party Transactions and Arrangements for more information on fees payable to our Advisor pursuant to the advisory agreement. There were no asset management fees to affiliate incurred during the six months ended June 30, 2014 as we issued Class B Units for asset management services for the period.

Property Operating Expenses

Property operating expenses increased $12.4 million to $14.7 million for the six months ended June 30, 2015, compared to $2.3 million for the six months ended June 30, 2014. This increase in property operating expenses was primarily due to our Six Month Acquisitions, which resulted in a $12.2 million increase for the six months ended June 30, 2015. In addition, Six Month Same Store property operating expenses increased by $0.2 million, which primarily related to an increase in real estate taxes and repairs and maintenance costs. Property operating expenses primarily relate to the costs associated with maintaining our properties including property management fees incurred from Lincoln, real estate taxes, utilities, and repairs and maintenance.

Impairment Charges

We incurred $4.4 million of impairment charges during the six months ended June 30, 2015. These charges related to the write-off of intangible assets in connection with an unsuccessful contractual arrangement associated with the acquisition of The Shops at West End. No impairment charges were incurred during the six months ended June 30, 2014.

Fair Value Adjustment to Contingent Purchase Price Consideration

During the six months ended June 30, 2015, we recorded a $13.8 million fair value adjustment related to the write-off of contingent purchase price consideration in connection with an unsuccessful contractual arrangement associated with the acquisition of The Shops at West End. No such fair value adjustments were made during the six months ended June 30, 2014.

Acquisition and Transaction Related Expenses

Acquisition and transaction related expenses increased $2.2 million to $4.0 million for the six months ended June 30, 2015, compared to $1.8 million for the six months ended June 30, 2014. These expenses related to our acquisition of eight properties with an aggregate base purchase price of $201.9 million during the six months ended June 30, 2015. The $1.8 million in acquisition and transaction related expenses for the six months ended June 30, 2014 related to our acquisition of three properties with a base purchase price of $94.7 million.

General and Administrative Expenses

General and administrative expenses increased $3.6 million to $4.3 million for the six months ended June 30, 2015, compared to $0.7 million for the six months ended June 30, 2014. This increase related primarily to higher legal fees, audit fees, transfer agent fees and accounting fees to support our larger portfolio and increased number of stockholders.

Depreciation and Amortization Expenses

Depreciation and amortization expenses increased $16.1 million to $20.5 million for the six months ended June 30, 2015, compared to $4.4 million for the six months ended June 30, 2014. This increase was primarily attributable to our Six Month Acquisitions, which resulted in an increase in depreciation and amortization expenses of $16.3 million for the six months ended June 30, 2015. This increase was partially offset by a $0.2 million decrease in Six Month Same Store depreciation and amortization, primarily due to several tenants vacating the properties during the fourth quarter in 2014. The base purchase price of acquired properties is allocated to tangible and identifiable intangible assets and depreciated or amortized over their estimated useful lives.

Interest Expense

Interest expense increased $1.8 million to $3.2 million for the six months ended June 30, 2015, compared to $1.4 million for the six months ended June 30, 2014. Interest expense for the six months ended June 30, 2015 resulted from our mortgage notes payable, which had a weighted-average balance of $86.8 million and a weighted-average effective interest rate of 4.28%, our Credit Facility, which had weighted-average borrowings of $10.0 million and a weighted-average effective interest rate of 1.54%, as well as unused fees on our Amended Credit Facility and amortization of deferred financing costs. Interest expense for the six months ended June 30, 2014 resulted from our mortgage notes payable, which had a weighted-average balance of $63.1 million and a weighted-average interest rate of 4.01%, as well as unused fees on our Credit Facility and amortization of deferred financing costs.

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Cash Flows for the Six Months EndedJune 30, 2015

During the six months ended June 30, 2015, net cash provided by operating activities was $15.2 million. The level of cash flows provided by or used in operating activities is affected by the volume of acquisition activity, timing of interest payments and the amount of borrowings outstanding during the period, as well as the receipt of scheduled rent payments. Cash flows from operating activities during the six months ended June 30, 2015 included $4.0 million of acquisition and transaction related costs. Cash inflows primarily related to net income adjusted for non-cash items of $16.7 million (net income of approximately $5.0 million adjusted for depreciation and amortization of tangible and intangible real estate assets, impairment charges, amortization of deferred costs, share-based compensation and the ineffective portion of derivative partially offset by fair value adjustment to contingent purchase price obligation and amortization of mortgage premium totaling $11.7 million), an increase in accounts payable and accrued expenses of $5.0 million and an increase in deferred rent and other liabilities of $0.8 million due to the timing of the receipt of rental payments and payment of our expenses. Cash inflows were partially offset by an increase in prepaid expenses and other assets of $7.3 million resulting from rent receivables and unbilled rent receivables recorded in accordance with straight-line basis accounting, prepaid insurance and accrued income for real estate tax reimbursements.

Net cash used in investing activities during the six months ended June 30, 2015 of $192.9 million included $202.0 million related to our Six Month Acquisitions, $3.6 million related to capital expenditures and $0.5 million related to deposits for future real estate acquisitions. Cash outflows were partially offset by proceeds from contingent consideration of $13.2 million.

Net cash provided by financing activities during the six months ended June 30, 2015 of $54.4 million primarily related to proceeds from our credit facility of $70.0 million, partially offset by cash distributions of $12.9 million, payments related to offering costs of $1.2 million, common stock repurchases of $0.8 million and restricted cash of $0.6 million.

Cash Flows for the Six Months EndedJune 30, 2014

During the six months ended June 30, 2014, net cash used in operating activities was $3.2 million. The level of cash flows provided by or used in operating activities is affected by the volume of acquisition activity, timing of interest payments and the amount of borrowings outstanding during the period, as well as the receipt of scheduled rent payments. Cash flows used in operating activities during the six months ended June 30, 2014 include $1.8 million of acquisition and transaction related costs. Cash outflows primarily related to an increase in prepaid expenses and other assets of $6.2 million, resulting from rent receivables and unbilled rent receivables recorded in accordance with straight-line basis accounting, prepaid insurance and accrued income for real estate tax reimbursements. Cash outflows were partially offset by cash inflows, including a net loss adjusted for non-cash items of $1.6 million (net loss of $3.5 million adjusted for depreciation and amortization of tangible and intangible real estate assets, amortization of deferred costs, loss on disposition of land, share-based compensation and loss on derivative instrument totaling $5.1 million) and a decrease of $1.3 million in accounts payable and accrued expenses.

Net cash used in investing activities during the six months ended June 30, 2014 of $96.0 million included $94.7 million related to our acquisition of three properties and $1.5 million related to deposits for future real estate acquisitions.

Net cash provided by financing activities during the six months ended June 30, 2014 of $271.2 million related to proceeds from the issuance of common stock of $310.5 million. These inflows were partially offset by payments related to offering costs of $33.1 million, cash distributions of $2.8 million, payments of deferred financing costs of $2.1 million and payments to affiliates, net of $1.0 million.

Liquidity and Capital Resources

In March 2012, we raised proceeds sufficient to break escrow in connection with our IPO.  We received and accepted aggregate subscriptions in excess of the $2.0 million minimum and issued shares of common stock to our initial investors who were simultaneously admitted as stockholders. We continued offering and selling shares in our IPO until September 12, 2014. Our IPO closed on September 12, 2014. On September 17, 2014, we withdrew our Follow-On Registration Statement, from which no securities were sold. On September 19, 2014, we registered an additional 25.0 million shares of common stock to be used under the DRIP (as amended to include a direct stock purchase component) pursuant to a registration statement on Form S-3D (File No. 333-198864). As of June 30, 2015, we had 95.8 million shares of common stock outstanding, including unvested restricted stock and shares issued pursuant to the DRIP, and had received total proceeds from the IPO and the DRIP of $951.2 million. We purchased our first property and commenced active operations in June 2012.

As of June 30, 2015, we had cash and cash equivalents of $47.6 million. Our principal demands for funds will continue to be for property acquisitions, either directly or through investment interests, for the payment of operating expenses, distributions to our stockholders and for the payment of principal and interest on our outstanding indebtedness. Generally, capital needs for property acquisitions are met through net proceeds received from our IPO, as well as proceeds from secured financings. We may also from time to time enter into other agreements with third parties whereby third parties will make equity investments in specific properties or groups of properties that we acquire. Expenditures other than property acquisitions are expected to be met from cash flows from operations.

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We expect to meet our future short-term operating liquidity requirements through a combination of cash on hand, net cash provided by our current property operations, the operations of properties to be acquired in the future and proceeds from our Credit Facility.  Management expects that in the future, as our portfolio matures, cash flows from our properties will be sufficient to fund operating expenses and the payment of our monthly distribution. Other potential future sources of capital include proceeds from public and private offerings, proceeds from the sale of properties and undistributed funds from operations.

We also expect to use proceeds from secured and unsecured financings from banks or other lenders as a source of capital. Under our charter, the maximum amount of our total indebtedness may not exceed 300% of our total "net assets" (as defined by our charter) as of the date of any borrowing, which is equal to 75% of the cost of our investments. We may exceed that limit if approved by a majority of our independent directors and disclosed to stockholders in our next quarterly report following such borrowing along with justification for exceeding such limit. This charter limitation, however, does not apply to individual real estate assets or investments. In addition, it is currently our intention to limit our aggregate borrowings to approximately 50% of the aggregate fair market value of our assets, unless borrowing a greater amount is approved by a majority of our independent directors and disclosed to stockholders in our next quarterly report following such borrowing along with justification for borrowing such a greater amount. This limitation will not apply to individual real estate assets or investments. At the date of acquisition of each asset, we anticipate that the cost of investment for such asset will be substantially similar to its fair market value, which will enable us to satisfy our requirements under our charter. However, subsequent events, including changes in the fair market value of our assets, could result in our exceeding these limits.

On June 11, 2014, we, through the OP, entered into a credit agreement (the "Credit Agreement") relating to a credit facility that provided for aggregate revolving loan borrowings of up to $100.0 million (subject to borrowing base availability), with a $25.0 million swingline subfacility (but not to exceed 10.0% of the commitments then in effect) and a $5.0 million letter of credit subfacility. On December 2, 2014, we, through the OP and certain of our subsidiaries acting as guarantors, entered into an unsecured amended and restated credit agreement (the “Amended Credit Agreement”) relating to a revolving credit facility (the “Amended Credit Facility”), which amends and restates the Credit Agreement. The Amended Credit Facility provides for aggregate revolving loan borrowings of up to $325.0 million (subject to unencumbered asset pool availability), with a $25.0 million swingline subfacility and a $20.0 million letter of credit subfacility, subject to certain conditions. Through an uncommitted “accordion feature,” the OP, subject to certain conditions, may increase commitments under the Amended Credit Facility to up to $575.0 million. Borrowings under the Amended Credit Facility, along with cash on hand from our IPO, are expected to be used to finance portfolio acquisitions and for general corporate purposes. As of June 30, 2015, our unused borrowing capacity was $255.0 million, based on the assets governed by the Amended Credit Facility. As of June 30, 2015, we had $70.0 million outstanding under the Amended Credit Facility.

The Amended Credit Facility provides for quarterly interest payments for each base rate loan and periodic interest payments for each LIBOR loan, based upon the applicable interest period (though no longer than three months) with respect to such LIBOR loan, with all principal outstanding being due on the maturity date. The Amended Credit Facility will mature on December 2, 2018, provided that the OP, subject to certain conditions, may elect to extend the maturity date one year to December 2, 2019. The Amended Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty. In the event of a default, the lenders have the right to terminate their obligations under the Amended Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans. We, certain of our subsidiaries and certain subsidiaries of the OP will guarantee the obligations under the Amended Credit Facility.

Our board of directors has adopted a Share Repurchase Program ("SRP") that enables our stockholders to sell their shares to us under limited circumstances. At the time a stockholder requests a repurchase, we may, subject to certain conditions, repurchase the shares presented for repurchase for cash to the extent we have sufficient funds available to fund such repurchase. There are limits on the number of shares we may repurchase under this program during any 12-month period. Further, we are only authorized to repurchase shares using the proceeds secured from the DRIP in any given quarter.

The following table summarizes the repurchases of shares under the SRP cumulatively through June 30, 2015:

	Number of Requests	Number of Shares Repurchased	Weighted-Average Price per Share
Cumulative repurchase requests as of December 31, 2014	19	73,492	$	9.82
Three months ended June 30, 2015	39	467,905	9.56
Cumulative repurchase requests as of June 30, 2015 (1)	58	541,397	$	9.60

_____________________

(1) Includes 27 unfulfilled repurchase requests consisting of 423,428 shares with a weighted-average repurchase price per share of $9.53, which were approved for repurchase as of June 30, 2015 and were completed during the third quarter of 2015. This liability is included in accounts payable and accrued expenses on our consolidated balance sheet as of June 30, 2015.

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Acquisitions

Our Advisor, with the assistance of Lincoln, evaluates potential acquisitions of real estate and real estate related assets and engages in negotiations with sellers and borrowers on our behalf. As of August 12, 2015, we owned 29 properties. We currently have $121.3 million of assets under contract. Pursuant to the terms of the purchase and sale agreements, our obligation to close upon these acquisitions is subject to certain conditions customary to closing, including the successful completion of due diligence and fully negotiated binding agreements. There can be no assurance that we will complete these acquisitions.

Funds from Operations and Modified Funds from Operations

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as funds from operations ("FFO"), which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of real estate and asset impairment writedowns, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO. Our FFO calculation complies with NAREIT's policy described above.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or expected by lessees for operational purposes in order to maintain the value disclosed. We believe that, since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may not be fully informative. Additionally, we believe it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indicators exist and if the carrying, or book, value exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described above, because impairments are based on estimated undiscounted future cash flows and the relatively limited term of our operations, it could be difficult to recover any impairment charges.

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 and impairments, 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. However, FFO and modified funds from operations ("MFFO"), as described below, 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 FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

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There have been changes in the accounting and reporting promulgations under GAAP that were put into effect in 2009 subsequent to the establishment of NAREIT's definition of FFO, such as the change to expense as incurred rather than capitalize and depreciate acquisition fees and expenses incurred for business combinations. Management believes these fees and expenses do not affect our overall long-term operating performance. Publicly registered, non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation, but have a limited and defined acquisition period. Due to the above factors and other unique features of publicly registered, non-listed REITs, the Investment Program Association (the "IPA"), an industry trade group, has standardized a measure known as MFFO, which the IPA has recommended as a supplemental measure for publicly registered non-listed REITs and which we believe to be another appropriate supplemental measure to reflect the operating performance of a non-listed REIT having the characteristics described above. MFFO is not equivalent to our net income or loss as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we purchase a significant amount of new assets. We believe that, because MFFO excludes costs that we consider more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that affect operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring properties and once our portfolio is stabilized. By providing MFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance after our portfolio has been stabilized. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry.

We define MFFO, a non-GAAP measure, consistent with the IPA's Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the "Practice Guideline") issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to straight-line rent and amortization of above- and below-market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; mark-to-market adjustments included in net income; gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized.

Our MFFO calculation complies with the IPA's Practice Guideline described above. In calculating MFFO, we exclude acquisition and transaction-related expenses, amortization of above- and below-market leases, fair value adjustments of derivative financial instruments, straight-line rent and the adjustments of such items related to non-controlling interests. Under GAAP, acquisition and transaction-related fees and expenses are characterized as operating expenses in determining operating net income during the period in which the asset is acquired. These expenses are paid in cash by us, and therefore such funds will not be available to invest in other assets, pay operating expenses or fund distributions. MFFO that excludes such costs and expenses would only be comparable to that of non-listed REITs that have completed their acquisition activities and have similar operating characteristics as us. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income in determining cash flow from operating activities. In addition, we view fair value adjustments of derivatives as items which are unrealized. We view both gains and losses from dispositions of assets and fair value adjustments of derivatives as items which are not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. While we are responsible for managing interest rate, hedge and foreign exchange risk, we will retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such gains and losses in calculating MFFO, as such gains and losses are not reflective of ongoing operations. The purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our business plan to generate operational income and cash flows in order to make distributions to investors.

We believe that management's use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to non-listed REITs, which have defined acquisition periods and targeted exit strategies, and allow us to evaluate our performance against other non-listed REITs. For example, acquisition and transaction-related costs may be funded from the proceeds of our IPO and other financing sources and not from operations. By excluding expensed acquisition costs, the use of MFFO provides information consistent with management's analysis of the operating performance of the properties.

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Presentation of this information is intended to provide useful information to investors as they compare the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and MFFO the same way. Accordingly, comparisons with other REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations, as an indication of our performance, as an alternative to cash flows from operations as an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with GAAP measurements as an indication of our performance.

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO.

The below table reflects the items deducted or added to net income in our calculation of FFO and MFFO for the periods presented:

	Three Months Ended						Six Months Ended
(In thousands)	March 31, 2015			June 30, 2015			June 30, 2015
Net income (in accordance with GAAP)	$	46		$	4,999		$	5,045
Impairment charges	—			4,434			4,434
Depreciation and amortization	9,779			10,679			20,458
FFO	9,825			20,112			29,937
Acquisition fees and expenses	580			3,399			3,979
Amortization of mortgage premium	(9		)	(8		)	(17		)
Accretion of market lease intangibles, net	(557		)	(624		)	(1,181		)
Mark-to-market adjustments	2			(1		)	1
Straight-line rent	(867		)	(279		)	(1,146		)
Fair value adjustment to contingent purchase price obligation	—			(13,802		)	(13,802		)
MFFO	$	8,974		$	8,797		$	17,771

Distributions

On September 19, 2011, our board of directors authorized, and we declared, distributions payable to stockholders of record each day during the applicable period equal to $0.0017534247 per day, which is equivalent to $0.64 per annum, per share of common stock. Distributions began to accrue to stockholders of record on June 8, 2012, the date of our initial property acquisition. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month.

The amount of distributions payable to our stockholders is determined by our board of directors and is dependent on a number of factors, including funds available for distribution, our financial condition, capital expenditure requirements, as applicable, requirements of Maryland law and annual distribution requirements needed to qualify and maintain our status as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). Our board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

During the six months ended June 30, 2015, distributions paid to common stockholders totaled $30.4 million, inclusive of $17.5 million of distributions reinvested pursuant to the DRIP. During the six months ended June 30, 2015, cash used to pay distributions was generated from cash flows from operations and offering proceeds reinvested in common stock issued pursuant to our DRIP.

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The following table shows the sources for the payment of distributions to common stockholders, including distributions on unvested restricted stock, for the period indicated:

	Three Months Ended								Six Months Ended
	March 31, 2015				June 30, 2015				June 30, 2015
(In thousands)			Percentage of Distributions				Percentage of Distributions				Percentage of Distributions
Distributions to stockholders	$	14,954			$	15,428			$	30,382
Source of distribution coverage:
Cash flows provided by operations (1)	$	6,630	44.3	%	$	7,352	47.7	%	$	13,982	46.0	%
Offering proceeds from issuances of common stock	—		—	%	—		—	%	—		—	%
Offering proceeds reinvested in common stock issued under the DRIP	8,324		55.7	%	8,076		52.3	%	16,400		54.0	%
Proceeds from financings	—		—	%	—		—	%	—		—	%
Total source of distribution coverage	$	14,954	100.0	%	$	15,428	100.0	%	$	30,382	100.0	%
Cash flows provided by operations (GAAP basis)	$	9,998			$	5,178			$	15,176
Net income (in accordance with GAAP)	$	46			$	4,999			$	5,045

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(1) Cash flows provided by operations for the three months ended March 31, 2015 and the three and six months ended June 30, 2015 include acquisition and transaction related expenses of $0.6 million, $3.4 million and $4.0 million, respectively.

For the six months ended June 30, 2015, cash flows provided by operations were $15.2 million. As shown in the table above, we funded distributions with cash flows from operations and offering proceeds reinvested in common stock issued pursuant to our DRIP. To the extent we pay distributions in excess of cash flows provided by operations, your investment may be adversely impacted. Since inception, our cumulative distributions have exceeded our cumulative FFO. See “Risk Factors - Distributions paid from sources other than our cash flows from operations will reduce the funds available for the acquisition of properties and other real estate-related investments and may dilute our stockholders' interests in us, which may adversely affect our ability to fund future distributions with cash flows from operations and may adversely affect our stockholders' overall return.” under Item 1A in this Quarterly Report on Form 10-Q.

The following table compares cumulative distributions paid, including distributions related to unvested restricted shares, to cumulative net loss and cumulative cash flows provided by operations (in accordance with GAAP) and cumulative FFO for the period from July 29, 2010 (date of inception) through June 30, 2015:

(In thousands)	Period from July 29, 2010 (date of inception) to June 30, 2015
Total distributions paid	$	58,577
Reconciliation of net loss:
Revenues	$	80,279
Acquisition and transaction related	(17,835		)
Depreciation and amortization	(40,848		)
Other operating expenses	(25,635		)
Other non-operating expenses	(10,767		)
Net loss (in accordance with GAAP) (1)	$	(14,806	)
Cash flows provided by operations	$	18,361
FFO	$	30,680

_____________________

(1) Net loss as defined by GAAP includes the non-cash impact of depreciation and amortization expense as well as costs incurred relating to acquisitions and related transactions.

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Loan Obligations

The payment terms of certain of our mortgage loan obligations require principal and interest payments monthly, with all unpaid principal and interest due at maturity. Our loan agreements require us to comply with specific reporting covenants. As of June 30, 2015, we were in compliance with the financial covenants under our loan agreements.

Our Advisor may, with approval from our independent board of directors, seek to borrow short-term capital that, combined with secured mortgage financing, exceeds our targeted leverage ratio. Such short-term borrowings may be obtained from third parties on a case-by-case basis as acquisition opportunities present themselves. We view the use of short-term borrowings as an efficient and accretive means of acquiring real estate. As of June 30, 2015, our secured debt leverage ratio (total secured debt divided by the base purchase price of acquired real estate investments) and leverage ratio (total debt divided by total assets) approximated 9.6% and 15.4%, respectively.

Contractual Obligations

The following table reflects contractual debt obligations under our mortgage notes payable and Amended Credit Facility over the next five years and thereafter as of June 30, 2015:

			July 1, 2015 to December 31, 2015		Years Ended December 31,
(In thousands)	Total				2016-2017		2018-2019		Thereafter
Principal on mortgage notes payable	$	86,750	$	182	$	778	$	63,651	$	22,139
Interest on mortgage notes payable	17,404		1,860		7,382		3,701		4,461
Credit facility	70,000		—		—		70,000		—
Interest on credit facility	5,954		876		3,479		1,599		—
Ground lease rental payments due	12,249		249		1,018		1,059		9,923
	$	192,357	$	3,167	$	12,657	$	140,010	$	36,523

Election as a REIT

We elected and qualified to be taxed as a REIT under Sections 856 through 860 of the Code, effective for our taxable year ended December 31, 2012. We believe that, commencing with such taxable year, we are organized and operate in such a manner as to qualify for taxation as a REIT under the Code. We intend to continue to operate in such a manner to qualify for taxation as a REIT, but no assurance can be given that we will operate in a manner so as to qualify or remain qualified for taxation as a REIT. In order to qualify and continue to qualify for taxation as a REIT, we must, among other things, distribute annually at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP) determined without regard to the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organizational and operational requirements. If we continue to qualify for taxation as a REIT, we generally will not be subject to federal corporate income tax on that portion of our REIT taxable income that we distribute to our stockholders. Even if we continue to qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and properties, as well as federal income and excise taxes on our undistributed income.

Inflation

Some of our leases with our tenants contain provisions designed to mitigate the adverse impact of inflation. These provisions generally increase rental rates during the term of the leases either at fixed rates or indexed escalations (based on the Consumer Price Index or other measures). We may be adversely impacted by inflation on the leases that do not contain indexed escalation provisions. However, our net leases require the tenant to pay its allocable share of operating expenses, which may include common area maintenance costs, real estate taxes and insurance. This may reduce our exposure to increases in costs and operating expenses resulting from inflation.

Related-Party Transactions and Agreements

We have entered into agreements with affiliates of our Sponsor, under which we have paid or may in the future pay certain fees or reimbursements to our Advisor, its affiliates and entities under common control with our Advisor in connection with items such as acquisition and financing activities, sales and maintenance of common stock under our IPO, transfer agency services, asset and property management services and reimbursement of operating and offering related costs. See Note 10 —Related Party Transactions and Arrangements to our consolidated financial statements included in this Quarterly Report on Form 10-Q for a discussion of the various related party transactions, agreements and fees.

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In addition, the limited partnership agreement of the OP provides for a special allocation, solely for tax purposes, of excess depreciation deductions of up to $10.0 million to our Advisor, a limited partner of the OP.  In connection with this special allocation, our Advisor has agreed to restore a deficit balance in its capital account in the event of a liquidation of the OP and has agreed to provide a guaranty or indemnity of indebtedness of the OP. Our Advisor is directly or indirectly controlled by certain of our officers and directors.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse changes in market prices or interest rates. Our long-term debt, which consists of secured financings, bears interest at fixed rates. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars, and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. We would not hold or issue these derivative contracts for trading or speculative purposes. We do not have any foreign operations and thus we are not exposed to foreign currency fluctuations.

As of June 30, 2015, our debt consisted of fixed-rate secured mortgage financings with a carrying value of $87.0 million and a fair value of $87.7 million. Changes in market interest rates on our fixed-rate debt impacts its fair value, but it has no impact on interest incurred or cash flow. For instance, if interest rates rise 100 basis points and our fixed rate debt balance remains constant, we expect the fair value of our obligation to decrease, the same way the price of a bond declines as interest rates rise. The sensitivity analysis related to our fixed–rate debt assumes an immediate 100 basis point move in interest rates from their June 30, 2015 levels, with all other variables held constant. A 100 basis point increase in market interest rates would result in a decrease in the fair value of our fixed-rate debt by $2.3 million. A 100 basis point decrease in market interest rates would result in an increase in the fair value of our fixed-rate debt by $2.4 million.

As of June 30, 2015 our variable-rate Credit Facility had a carrying and fair value of $70.0 million. Interest rate volatility associated with this variable-rate Credit Facility affects interest expense incurred and cash flow. The sensitivity analysis related to our variable-rate debt assumes an immediate 100 basis point move in interest rates from their June 30, 2015 levels with all other variables held constant. A 100 basis point increase or decrease in variable rates on our variable-rate Credit Facility would increase or decrease our interest expense by $0.7 million.

These amounts were determined by considering the impact of hypothetical interest rates changes on our borrowing costs, and assuming no other changes in our capital structure. The information presented above includes only those exposures that existed as of June 30, 2015 and does not consider exposures or positions arising after that date. The information represented herein has limited predictive value. Future actual realized gains or losses with respect to interest rate fluctuations will depend on cumulative exposures, hedging strategies employed and the magnitude of the fluctuations.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 promulgated under the Exchange Act, we are required to establish and maintain disclosure controls and procedures as defined in subparagraph (e) of that rule. We are required to evaluate, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures as of the end of each fiscal quarter. Management previously concluded that our disclosure controls and procedures were not effective as of December 31, 2014 or March 31, 2015 due to the material weakness in internal control over financial reporting described in our Annual Report on Form 10-K filed with the SEC on April 15, 2015. As described below, a remediation plan has been implemented and, as of June 30, 2015, management deems the material weaknesses previously identified to be remediated and our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

During our most recent fiscal quarter, we executed our remediation plan, as further described below.  In connection with the evaluation required by Rule 13a-15(d), we identified the execution of this remediation plan as having materially affected, or reasonably likely to materially affect, our internal control over financial reporting.  Other than the execution of the remediation plan, there were no other changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

44

Remediation of Material Weaknesses

We, with the concurrence and oversight of the Audit Committee of our Board of Directors, executed our remediation plan described in our Annual Report on Form 10-K filed with the SEC on April 15, 2015, during the quarter ended June 30, 2015. As part of the remediation plan, management:

• Enhanced information technology system access controls supporting the general ledger and accounts payable system applications to address appropriate segregation of duties and to restrict IT and financial users’ access to the underlying entities and IT functions and data commensurate with their job responsibilities;

• Implemented appropriate end-user controls over the use of significant Excel spreadsheets supporting the financial reporting process; and

• Implemented appropriate controls over the authorization of manual journal entries made to the general ledger.

Management verified that the aforementioned controls were appropriately designed and implemented as of June 30, 2015, and will continue to monitor and test, as applicable, the ongoing operating effectiveness of its’ new and enhanced controls.

Our internal controls over financial reporting are designed to provide reasonable assurance of achieving the desired control objectives. We recognize that any control system, no matter how well designed and operated, is based upon certain judgments and assumptions and cannot provide absolute assurance that its objectives will be met. Similarly, an evaluation of controls cannot provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected.

45

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

We are not a party to, and none of our properties are subject to, any material pending legal proceedings.

Item 1A. Risk Factors.

There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014, except as set forth below:

Distributions paid from sources other than our cash flows from operations will reduce the funds available for the acquisition of properties and other real estate-related investments and may dilute our stockholders' interests in us, which may adversely affect our ability to fund future distributions with cash flows from operations and may adversely affect stockholders' overall return.

Our cash flows provided by operations for the six months ended June 30, 2015 were $15.2 million. During the six months ended June 30, 2015, we paid distributions of $30.4 million, of which $16.4 million, or 54.0%, was funded from offering proceeds reinvested in common stock issued pursuant to our DRIP and $14.0 million, or 46.0%, was funded from cash flows from operations. We may in the future pay distributions from sources other than from our cash flows from operations.

We may not generate sufficient cash flows from operations to pay future distributions. Moreover, our board of directors may change our distribution policy, in its sole discretion, at any time. In accordance with our organizational documents and Maryland law, we may not make distributions that would: (1) cause us to be unable to pay our debts as they become due in the usual course of business; (2) cause our total assets to be less than the sum of our total liabilities plus senior liquidation preferences, if any; or (3) jeopardize our ability to qualify as a REIT.

Funding distributions from borrowings could restrict the amount we can borrow for investments, which may affect our profitability. Funding distributions with the sale of assets may affect our ability to generate additional operating cash flows. Funding distributions from the sale of additional securities could dilute our stockholders interest in us if we sell shares of our common stock or securities convertible or exercisable into shares of our common stock to third party investors. Payment of distributions from the mentioned sources could restrict our ability to generate sufficient cash flows from operations, affect our profitability and/or affect the distributions payable to our stockholders upon a liquidity event, any or all of which may have an adverse effect on their investment.

We are subject to tenant geographic concentrations that make us more susceptible to adverse events with respect to certain geographic areas.

As of June 30, 2015, the following states had concentrations of properties where annualized rental income on a straight-line basis represented 5.0% or greater of our consolidated annualized rental income on a straight-line basis:

State	June 30, 2015
Texas	16.2%
Minnesota	11.2%
Florida	10.8%
Oklahoma	10.5%
North Carolina	9.9%
Ohio	7.7%
Pennsylvania	7.4%
Kentucky	7.2%
Missouri	5.7%

46

Any adverse situation that disproportionately affects the states listed above may have a magnified adverse effect on our portfolio. Factors that may negatively affect economic conditions in these states include:

• business layoffs or downsizing;

• industry slowdowns;

• relocations of businesses;

• changing demographics;

• a shift to e-commerce;

• infrastructure quality;

• any oversupply of, or reduced demand for, real estate;

• concessions or reduced rental rates under new leases for properties where tenants defaulted; and

• increased insurance premiums.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of Registered Securities.

Recent Sale of Unregistered Securities

We did not sell any equity securities that were not registered under the Securities Act during the six months ended June 30, 2015.

Use of Proceeds from Sales of Registered Securities

On March 17, 2011, we commenced our IPO on a "reasonable best efforts" basis of up to 150.0 million shares of common stock, $0.01 par value per share at a price of $10.00 per share, subject to certain volume and other discounts, pursuant to our Registration Statement (File No. 333-169355), filed with the SEC under the Securities Act. The Registration Statement also covered up to 25.0 million shares available pursuant to the DRIP under which our common stockholders were able to elect to have their distributions reinvested in additional shares of our common stock. On March 4, 2013, our board of directors approved an extension of the termination date of our IPO from March 17, 2013 to March 17, 2014. On March 14, 2014, we filed the Follow-On Registration Statement with the SEC to register a follow-on offering of up to 75.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, and 12.5 million shares of common stock pursuant to the DRIP. However, as permitted by Rule 415 under the Securities Act, we continued offering and selling shares in our IPO until September 12, 2014. The IPO closed on September 12, 2014. On September 17, 2014, we withdrew our Follow-On Registration Statement, from which no securities were sold. On September 19, 2014, we registered an additional 25.0 million shares of common stock to be used under the DRIP (as amended to include a direct stock purchase component) pursuant to a registration statement on Form S-3D (File No. 333-198864). As of June 30, 2015, we had 95.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, and had received total gross proceeds from the IPO and the DRIP of $951.2 million. On May 7, 2015 we filed a post-effective amendment to the Registration Statement to deregister the unsold shares registered under the Registration Statement.

We used substantially all of the net proceeds from our IPO, net of cumulative offering costs of $101.4 million, to acquire existing anchored, stabilized core retail properties, including lifestyle centers and power centers. As of June 30, 2015, we have used the net proceeds from our IPO and debt financings to purchase 28 properties with an aggregate base purchase price of $903.7 million.

The following table reflects the offering costs associated with issuances of common stock:

(In thousands)	Period from July 29, 2010 (date of inception) to June 30, 2015
Selling commissions and dealer manager fees	$	88,000
Other offering costs	13,360
Total offering costs	$	101,360

47

The Dealer Manager reallowed the selling commissions and a portion of the dealer manager fees to participating broker-dealers. The following table details the selling commissions incurred and reallowed related to the sale of shares of common stock:

(In thousands)	Period from July 29, 2010 (date of inception) to June 30, 2015
Total commissions paid to the Dealer Manager	$	88,000
Less:
Commissions to participating broker-dealers	(60,322		)
Reallowance to participating broker-dealers	(9,849		)
Net to the Dealer Manager	$	17,829

As of June 30, 2015, cumulative offering costs included $7.7 million incurred from the Advisor and Dealer Manager. We are responsible for offering and related costs from our IPO, excluding selling commissions and dealer manager fees, up to a maximum of 1.5% of gross proceeds received from our IPO, measured at the end of the IPO. Offering costs, excluding selling commissions and dealer manager fees, in excess of the 1.5% cap as of the end of our IPO are the Advisor's responsibility. As of the close of our IPO, cumulative offering and related costs, excluding commissions and dealer manager fees, did not exceed the 1.5% threshold.

Issuer Purchases of Equity Securities

Our board of directors adopted the SRP that enables our stockholders to sell their shares to us under limited circumstances. At the time a stockholder requests a repurchase, we may, subject to certain conditions, repurchase the shares presented for repurchase for cash to the extent we have sufficient funds available.

The following table summarizes the repurchases of shares under the SRP cumulatively through June 30, 2015:

	Number of Requests	Number of Shares Repurchased	Weighted-Average Price per Share
Cumulative repurchase requests as of December 31, 2014	19	73,492	$	9.82
Three months ended June 30, 2015	39	467,905	9.56
Cumulative repurchase requests as of June 30, 2015 (1)	58	541,397	$	9.60

_____________________

(1) Includes 27 unfulfilled repurchase requests consisting of 423,428 shares with a weighted-average repurchase price per share of $9.53, which were approved for repurchase as of June 30, 2015 and were completed during the third quarter of 2015. This liability is included in accounts payable and accrued expenses on our consolidated balance sheet as of June 30, 2015.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item5. Other Information.

None.

Item6. Exhibits.

The exhibits listed on the Exhibit Index (following the signatures section of this report) are included, or incorporated by reference, in this Quarterly Report on Form 10-Q.

48

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMERICAN REALTY CAPITAL — RETAIL CENTERS OF AMERICA, INC.
By:	/s/ William M. Kahane
	William M. Kahane
	Chief Executive Officer, President and Chairman of the Board of Directors (Principal Executive Officer)
By:	/s/ Patrick Goulding
	Patrick Goulding
	Chief Financial Officer and Secretary (Principal Financial Officer and Principal Accounting Officer)

Dated: August 12, 2015

49

EXHIBITS INDEX

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (and are numbered in accordance with Item 601 of Regulation S-K).

Exhibit No.	Description
4.2 (1)	First Amendment to the Second Amended and Restated Agreement of Limited Partnership of American Realty Capital Retail Operating Partnership, L.P., dated as of April 15, 2015, among the Company and American Realty Capital Retail Advisor, LLC, Lincoln Retail REIT Services, LLC and other Limited Partners
4.3 *	Second Amendment to the Second Amended and Restated Agreement of Limited Partnership of American Realty Capital Retail Operating Partnership, L.P., dated as of June 30, 2015, among the Company and American Realty Capital Retail Advisor, LLC, Lincoln Retail REIT Services, LLC and other Limited Partners
10.1 (2)	Third Amended and Restated Advisory Agreement by and among American Realty Capital - Retail Centers of America, Inc., American Realty Capital Retail Operating Partnership, L.P. and American Realty Capital Retail Advisor, LLC dated as of June 30, 2015
31.1 *	Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 *	Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32 *	Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101 *	XBRL (eXtensible Business Reporting Language). The following materials from American Realty Capital — Retail Centers of America, Inc.'s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2015, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Loss, (iii) the Consolidated Statement of Changes in Stockholders' Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements. As provided in Rule 406T of Regulation S-T, this information in furnished and not filed for purpose of Sections 11 and 12 of the Securities Act and Section 18 of the Exchange Act

_____________________________

* Filed herewith.

(1) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 filed with the SEC on May 14, 2015.

(2) Filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on July 2, 2015.

50

EX-4.3

Exhibit 4.3

SECOND AMENDMENT

TO

SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

OF

AMERICAN REALTY CAPITAL RETAIL OPERATING PARTNERSHIP, L.P.

This SECOND AMENDMENT TO SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF AMERICAN REALTY CAPITAL RETAIL OPERATING PARTNERSHIP, L.P. (this “Amendment”), is made as of June 30, 2015 by American Realty Capital - Retail Centers of America, Inc., a Maryland corporation, in its capacity as the general partner (the “General Partner”) of American Realty Capital Retail Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”). Capitalized terms used but not otherwise defined in this Amendment shall have the meanings given to such terms in the Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of October 24, 2014, as amended (the “Partnership Agreement”).

RECITALS:

WHEREAS, the General Partner desires to amend the Partnership Agreement to amend Section 16.1(a) of the Partnership Agreement relating to the issuance of the Class B Units; and

WHEREAS, pursuant to Section 14.1(a) of the Partnership Agreement, the General Partner has the power to amend Section 16.1(a) of the Partnership Agreement without the consent of the Limited Partners or the Special Limited Partner.

NOW THEREFORE, in consideration of the premises made hereunder, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1. Effective as of April 1, 2015, Section 16.1(a) of the Partnership Agreement is hereby deleted in its entirety and the following new Section 16.1(a) is substituted in its place:

“16.1Designation and Number

(a) A series of Partnership Units in the Partnership, designated as the “Class B Units,” is hereby established. Except as set forth in this Article 16, Class B Units shall have the same rights, privileges and preferences as the OP Units. Subject to the provisions of this Article 16 and the special provisions of subparagraph 1(c)(ii) of Exhibit B, Class B Units shall be treated as Partnership Units, with all of the rights, privileges and obligations attendant thereto.”

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date and year first aforesaid.

GENERAL PARTNER:

AMERICAN REALTY CAPITAL - RETAIL CENTERS OF AMERICA, INC.

By: _/s/ William M. Kahane________

Name:William M. Kahane

Title: Chief Executive Officer and President

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, William M. Kahane, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Realty Capital – Retail Centers of America, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 12th day of August, 2015	/s/ William M. Kahane
	William M. Kahane
	Chief Executive Officer, President and Chairman of the Board of Directors
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Patrick Goulding, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Realty Capital – Retail Centers of America, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 12th day of August, 2015	/s/ Patrick Goulding
	Patrick Goulding
	Chief Financial Officer and Secretary
	(Principal Financial Officer and Principal Accounting Officer)

EX-32

Exhibit 32

SECTION 1350 CERTIFICATIONS

This Certificate is being delivered pursuant to the requirements of Section 1350 of Chapter 63 (Mail Fraud) of Title 18 (Crimes and Criminal Procedures) of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

The undersigned, who are the Chief Executive Officer and Chief Financial Officer of American Realty Capital – Retail Centers of America, Inc. (the “Company”), each hereby certify as follows:

The Quarterly Report on Form 10-Q of the Company, which accompanies this Certificate, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and all information contained in this quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 12th day of August, 2015

/s/ William M. Kahane

William M. Kahane

Chief Executive Officer, President and Chairman of the Board of Directors

(Principal Executive Officer)

/s/ Patrick Goulding

Patrick Goulding

Chief Financial Officer and Secretary

(Principal Financial Officer and Principal Accounting Officer)

XML

Mortgage Notes Payable (Schedule of Mortgage Notes Payable) (Details) $ in Thousands		Jun. 30, 2015 USD ($) property	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Outstanding Loan Amount		$ 86,750	$ 86,931
Mortgage notes payable and premium, net
Debt Instrument [Line Items]
Encumbered Properties | property		4
Outstanding Loan Amount		$ 86,750	$ 86,931
Effective Interest Rate	[1]	4.28%	4.28%
Mortgage notes payable and premium, net | Tiffany Springs
Debt Instrument [Line Items]
Encumbered Properties | property		1
Outstanding Loan Amount		$ 33,802	$ 33,802
Effective Interest Rate		3.92%	3.92%
Mortgage notes payable and premium, net | Shops at Shelby Crossing
Debt Instrument [Line Items]
Encumbered Properties | property		1
Outstanding Loan Amount		$ 23,963	$ 24,144
Effective Interest Rate		4.97%	4.97%
Senior Loans | Mortgage notes payable and premium, net | San Pedro Crossing - Senior Loan
Debt Instrument [Line Items]
Encumbered Properties | property	[2]	1
Outstanding Loan Amount	[2]	$ 17,985	$ 17,985
Effective Interest Rate	[2]	3.79%	3.79%
Refinanced Loan | Mortgage notes payable and premium, net | Liberty Crossing - Refinanced Loan
Debt Instrument [Line Items]
Encumbered Properties | property		1
Outstanding Loan Amount		$ 11,000	$ 11,000
Effective Interest Rate		4.66%	4.66%

[1] Calculated on a weighted-average basis for all mortgages outstanding as of

[2] Payments and obligations pursuant to this mortgage agreement are guaranteed by the Parent of the Sponsor.

XML

Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Options | Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, fixed exercise price (in dollars per share)	$ 10		$ 10
Number of shares authorized (in shares)	500,000.0		500,000.0
Restricted Stock | Restricted Share Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	7,500,000.0		7,500,000.0
Shares granted automatically upon election to board of directors (in shares)	3,000		3,000
Vesting period			5 years
Periodic vesting percentage	20.00%		20.00%
Maximum authorized amount as a percentage of shares authorized			5.00%
Unrecognized compensation cost	$ 100		$ 100
Unrecognized compensation cost period			3 years 6 months 25 days
Share based compensation	$ 9	$ 13	$ 19	$ 24

XML

Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended		53 Months Ended	59 Months Ended
	Sep. 19, 2011	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Jun. 30, 2015
Class of Stock [Line Items]
Common stock, outstanding (in shares)		95,822,130		94,448,748	95,822,130
Proceeds from Issuance of stock				$ 938,700	$ 951,200
Dividends declared per day (in dollars per share)	$ 0.0017534247
Dividends declared (in dollars per share)	$ 0.64
Annual authorized amount as a percentage		5.00%			5.00%
Common stock issued through distribution reinvestment plan		$ 17,493	$ 2,496
Common stock, par value (in dollars per share)		$ 0.01		$ 0.01	$ 0.01
One Year | Maximum
Class of Stock [Line Items]
Repurchase Price (in dollars per share)		$ 9.25			$ 9.25
Repurchase price percentage of value of capital paid		92.50%			92.50%
Two Years | Maximum
Class of Stock [Line Items]
Repurchase Price (in dollars per share)		$ 9.50			$ 9.50
Repurchase price percentage of value of capital paid		95.00%			95.00%
Three Years | Maximum
Class of Stock [Line Items]
Repurchase Price (in dollars per share)		$ 9.75			$ 9.75
Repurchase price percentage of value of capital paid		97.50%			97.50%
Four Years | Maximum
Class of Stock [Line Items]
Repurchase Price (in dollars per share)		$ 10			$ 10
Repurchase price percentage of value of capital paid		100.00%			100.00%
Common Stock
Class of Stock [Line Items]
Common stock issued through distribution reinvestment plan (in shares)		1,841,287
Common stock issued through distribution reinvestment plan		$ 19

XML

Share-Based Compensation (Restricted Stock Activity) (Details) - 6 months ended Jun. 30, 2015 - Restricted Share Plan - Restricted Stock - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward]
Beginning Balance (in shares)	15,600
Vested (in shares)	(3,600)
Ending Balance (in shares)	12,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Beginning Balance (in dollars per share)	$ 9.08
Vested (in dollars per share)	9.17
Ending Balance (in dollars per share)	$ 9.05

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Derivatives and Hedging Activities (Derivative Instruments, Gain (Loss)) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion)		$ 134	$ (259)	$ (142)	$ (304)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)				(1)	(5)
Interest rate swap | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion)		10	(385)	(389)	(554)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)	[1]	1	(5)	(1)	(5)
Interest rate swap | Interest Expense | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) reclassified from accumulated other comprehensive loss into income as interest expense (effective portion)		$ (124)	$ (126)	$ (247)	$ (250)

[1] The Company reclassified approximately $1,000 of other comprehensive income and $1,000 of other comprehensive loss to interest expense during the three and six months ended June 30, 2015, respectively, which represented the ineffective portion of the change in fair value of the derivative.

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Real Estate Investments (Schedule of Real Estate Properties) (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) property	Jun. 30, 2014 USD ($) property
Business Acquisition [Line Items]
Land	[1]			$ 60,590	$ 31,375
Buildings, fixtures and improvements	[1]			129,140	51,612
Total tangible assets	[1]			189,730	82,987
Acquired intangibles:	[1]			12,292	11,713
Below-market lease liabilities (2)	[1],[2]			(18,618)	0
Cash paid for acquired real estate investments				$ 202,022	$ 94,700
Number of properties purchased | property				8	3
Acquisition and transaction related		$ 3,399	$ 1,768	$ 3,979	$ 1,788
In-place leases
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Remaining Amortization Period				6 years 11 months 13 days
Acquired intangibles:	[1],[2]			$ 27,005	11,713
Above-market lease assets
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Remaining Amortization Period				21 years 7 months 18 days
Acquired intangibles:	[1],[2]			$ 3,905	$ 0
Below-market lease liabilities
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Remaining Amortization Period				20 years 9 months 18 days

[1] Real estate investments, at cost, of $102.2 million acquired during the six months ended June 30, 2015 have been provisionally allocated pending receipt and review of final appraisals and/or other information on such assets prepared by third party specialists.

[2] Weighted-average remaining amortization periods for in-place leases, above-market lease assets and below-market lease liabilities acquired during the six months ended June 30, 2015 were 7.0, 21.6 and 20.8 years, respectively, as of the dates of acquisition.

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Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended			6 Months Ended
		Jun. 30, 2015		Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014	Dec. 31, 2014
Earnings Per Share, Basic, Two Class Method [Abstract]
Net loss attributable to stockholders		$ 4,999		$ (2,913)	$ 5,045		$ (3,512)
Basic weighted-average shares outstanding (in shares)		95,915,695		29,000,403	95,480,309		21,033,404
Basic net income (loss) per share (in dollars per share)		$ 0.05		$ (0.10)	$ 0.05		$ (0.17)
Earnings Per Share, Diluted, Two Class Method [Abstract]
Adjustments to net income (loss) for common share equivalents		$ (101)		$ 0	$ (101)		$ 0
Net Income (Loss) Attributable to Parent, Diluted		$ 4,898		$ (2,913)	$ 4,944		$ (3,512)
Shares of unvested restricted stock		14,051	[1]	0	14,771	[1]	0
OP Units		202		0	202		0
Class B Units	[2]	0		0	0		0
Diluted weighted-average shares outstanding (in shares)		95,929,948		29,000,403	95,495,282		21,033,404
Diluted net income (loss) per share (in dollars per share)		$ 0.05		$ (0.10)	$ 0.05		$ (0.17)
Antidilutive securities excluded from computation of earnings per share (in shares)				20,516			20,161
Shares of unvested restricted stock
Earnings Per Share, Diluted, Two Class Method [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	[3]			20,314			19,959
OP Units
Earnings Per Share, Diluted, Two Class Method [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)				202			202
Class B Units
Earnings Per Share, Diluted, Two Class Method [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)		438,948		35,771	305,213		21,413
Restricted Stock | Restricted Share Plan
Earnings Per Share, Diluted, Two Class Method [Abstract]
Shares outstanding (in shares)		12,000		24,600	12,000		24,600	15,600
Advisor | Contract Purchase Price | American Realty Capital Retail Advisor, LLC | Class B Units
Earnings Per Share, Diluted, Two Class Method [Abstract]
Common stock, authorized (in shares)					479,802		45,178

[1] Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 12,000 shares of unvested restricted stock outstanding as of June 30, 2015.

[2] Weighted-average number of issued and unvested Class B Units for the three months ended June 30, 2015 and 2014 and the six months ended June 30, 2015 and 2014 were 438,948, 35,771, 305,213 and 21,413, respectively. The Class B Units are subject to a performance vesting condition that the Company has not achieved as of June 30, 2015 and 2014, and as such, the weighted-average number of issued and unvested Class B Units are not included in the above calculations of diluted weighted-average shares outstanding for the periods presented. As of June 30, 2015 and 2014, the Company's board of directors had approved the issuance of 479,802 and 45,178 Class B Units, respectively.

[3] Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 24,600 shares of unvested restricted stock outstanding as of June 30, 2014.

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

As of June 30, 2015 and December 31, 2014, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

	June 30, 2015			December 31, 2014
Interest Rate Derivative	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
		(In thousands)			(In thousands)
Interest Rate Swap	1	$	34,098	1	$	34,098

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the accompanying consolidated balance sheets as of June 30, 2015 and December 31, 2014:

(In thousands)	Balance Sheet Location	June 30, 2015			December 31, 2014
Derivatives designated as hedging instruments:
Interest Rate Swap	Derivatives, at fair value	$	(475	)	$	(332	)

Schedule of Interest Rate Derivatives

The table below details the location in the accompanying consolidated financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the six months ended June 30, 2015 and 2014.

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Amount of gain (loss) recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion)	$	10		$	(385	)	$	(389	)	$	(554	)
Amount of loss reclassified from accumulated other comprehensive loss into income as interest expense (effective portion)	$	(124	)	$	(126	)	$	(247	)	$	(250	)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing) *	$	1		$	(5	)	$	(1	)	$	(5	)

_________________________________

* The Company reclassified approximately $1,000 of other comprehensive income and $1,000 of other comprehensive loss to interest expense during the three and six months ended June 30, 2015, respectively, which represented the ineffective portion of the change in fair value of the derivative.

Offsetting Assets

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of June 30, 2015 and December 31, 2014. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the accompanying consolidated balance sheets:

									Gross Amounts Not Offset on the Balance Sheet
(In thousands)	Gross Amounts of Recognized Liabilities			Gross Amounts Offset on the Balance Sheet		Net Amounts of Liabilities presented on the Balance Sheet			Financial Instruments		Cash Collateral Received (Posted)		Net Amount
June 30, 2015	$	(475	)	$	—	$	(475	)	$	—	$	—	$	(475	)
December 31, 2014	$	(332	)	$	—	$	(332	)	$	—	$	—	$	(332	)

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Commitments and Contingencies (Future Minimum Ground Lease Payments) (Details) $ in Thousands	Jun. 30, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
July 1, 2015 to December 31, 2015	$ 249
2016	504
2017	514
2018	524
2019	535
Thereafter	9,923
Total	$ 12,249

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Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - Significant Unobservable Inputs Level 3 - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Mortgage notes payable and premium, net | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, fair value	$ 87,025	$ 87,223
Mortgage notes payable and premium, net | Total
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, fair value	87,709	89,347
Credit Facility | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, fair value	70,000	0
Credit Facility | Total
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, fair value	$ 70,000	$ 0

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Real Estate Investments (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographic Areas) (Details)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Texas
Revenues from External Customers and Long-Lived Assets [Line Items]
Entity wide revenue, major state, percentage	16.20%	43.00%
Minnesota
Revenues from External Customers and Long-Lived Assets [Line Items]
Entity wide revenue, major state, percentage	11.20%
Florida
Revenues from External Customers and Long-Lived Assets [Line Items]
Entity wide revenue, major state, percentage	10.80%
Oklahoma
Revenues from External Customers and Long-Lived Assets [Line Items]
Entity wide revenue, major state, percentage	10.50%
Missouri
Revenues from External Customers and Long-Lived Assets [Line Items]
Entity wide revenue, major state, percentage		24.90%
Ohio
Revenues from External Customers and Long-Lived Assets [Line Items]
Entity wide revenue, major state, percentage		19.00%
Illinois
Revenues from External Customers and Long-Lived Assets [Line Items]
Entity wide revenue, major state, percentage		13.10%

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Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Total commissions and fees from the Dealer Manager | Realty Capital Securities, LLC | Dealer Manager
Related Party Transaction [Line Items]
Fees paid to related parties	$ 0	$ 16,685	$ 0	$ 29,632
Payable (Receivable)	0		0		$ 0
Fees and expense reimbursements from the Advisor and Dealer Manager | American Realty Capital Retail Advisor, LLC and Realty Capital Securities LLC | Advisor and Dealer Manager
Related Party Transaction [Line Items]
Fees paid to related parties	0	$ 590	0	$ 1,012
Payable (Receivable)	$ (29)		$ (29)		$ 1,152

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Derivatives and Hedging Activities (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Liabilities	$ (475)	$ (332)
Gross Amounts Offset on the Balance Sheet	0	0
Net Amounts of Liabilities presented on the Balance Sheet	(475)	(332)
Financial Instruments	0	0
Cash Collateral Received (Posted)	0	0
Net Amount	$ (475)	$ (332)

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Real Estate Investments

6 Months Ended

Jun. 30, 2015

Real Estate [Abstract]

Real Estate Investments

Real Estate Investments

The Company owned 28 properties as of June 30, 2015. The rentable square feet or annualized rental income on a straight-line basis of the seven properties summarized below represented 5.0% or more of the Company's total portfolio's rentable square feet or annualized rental income on a straight-line basis as of June 30, 2015.

Tiffany Springs MarketCenter

On September 26, 2013, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Tiffany Springs MarketCenter, a power center located in Kansas City, Missouri ("Tiffany Springs MarketCenter"). The sellers had no preexisting relationship with the Company. The contract purchase price of Tiffany Springs MarketCenter was $53.5 million, exclusive of closing costs. The acquisition of Tiffany Springs MarketCenter was funded with proceeds from the Company's IPO and new mortgage debt secured by Tiffany Springs MarketCenter. The Company accounted for the purchase of Tiffany Springs MarketCenter as a business combination and incurred acquisition related costs of $0.9 million at acquisition.

Prairie Towne Center

On June 4, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Prairie Towne Center, a power center located in Schaumburg, Illinois ("Prairie Towne Center"). The seller had no preexisting relationship with the Company. The contract purchase price of Prairie Towne Center was $25.3 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of Prairie Towne Center as a business combination and incurred acquisition related costs of $0.4 million at acquisition.

Southroads Shopping Center

On October 29, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Southroads Shopping Center, a power center located in Tulsa, Oklahoma ("Southroads Shopping Center"). The seller had no preexisting relationship with the Company. The contract purchase price of Southroads Shopping Center was $57.8 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of Southroads Shopping Center as a business combination and incurred acquisition related costs of $1.0 million at acquisition.

Colonial Landing

On December 18, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the leasehold interest in Colonial Landing, a power center located in Orlando, Florida ("Colonial Landing"). The seller had no preexisting relationship with the Company. The contract purchase price of Colonial Landing was $37.3 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of Colonial Landing as a business combination and incurred acquisition related costs of $0.7 million at acquisition.

The Shops at West End

On December 23, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in The Shops at West End, a lifestyle center located in St. Louis Park, Minnesota ("The Shops at West End"). The seller had no preexisting relationship with the Company. The contract purchase price of The Shops at West End was $117.1 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of The Shops at West End as a business combination and incurred acquisition related costs of $1.9 million at acquisition.

The Company settled its contingent consideration arrangement associated with The Shops at West End during the quarter ended June 30, 2015. The settlement resulted in the Company recognizing a fair value adjustment to contingent purchase price of $13.8 million on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2015, of which the Company received $13.2 million as of June 30, 2015. Simultaneously, the Company impaired the contingent-related items that were ascribed value at acquisition, resulting in the Company recognizing impairment charges of $4.4 million on the consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2015.

Township Marketplace

On December 23, 2014, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Township Marketplace, a power center located in Monaca, Oklahoma ("Township Marketplace"). The seller had no preexisting relationship with the Company. The contract purchase price of Township Marketplace was $41.1 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO. The Company accounted for the purchase of Township Marketplace as a business combination and incurred acquisition related costs of $1.2 million at acquisition.

Northpark Center

On June 29, 2015, the Company, through an indirect wholly-owned subsidiary of the OP, closed its acquisition of the fee simple interest in Northpark Center, a power center located in Huber Heights, Ohio ("Northpark Center"). The seller had no preexisting relationship with the Company. The contract purchase price of Northpark Center was $33.2 million, exclusive of closing costs, and was funded with proceeds from the Company's IPO and borrowings under the Credit Facility. The Company accounted for the purchase of Northpark Center as a business combination and incurred acquisition related costs of $0.6 million at acquisition, which are reflected in acquisition and transaction related expenses of the consolidated statements of operations and comprehensive loss.

The following table presents the allocation of the assets acquired and liabilities assumed during the six months ended June 30, 2015 and 2014:

	Six Months Ended June 30,
(Dollar amounts in thousands)	2015			2014
Real estate investments, at cost (1):
Land	$	60,590		$	31,375
Buildings, fixtures and improvements	129,140			51,612
Total tangible assets	189,730			82,987
Acquired intangibles:
In-place leases (2)	27,005			11,713
Above-market lease assets (2)	3,905			—
Below-market lease liabilities (2)	(18,618		)	—
Total intangible real estate investments, net	12,292			11,713
Cash paid for acquired real estate investments	$	202,022		$	94,700
Number of properties purchased	8			3

_____________________

(1) Real estate investments, at cost, of $102.2 million acquired during the six months ended June 30, 2015 have been provisionally allocated pending receipt and review of final appraisals and/or other information on such assets prepared by third party specialists.

(2) Weighted-average remaining amortization periods for in-place leases, above-market lease assets and below-market lease liabilities acquired during the six months ended June 30, 2015 were 7.0, 21.6 and 20.8 years, respectively, as of the dates of acquisition.

The following table presents unaudited pro forma information as if the acquisition during the six months ended June 30, 2015 had been consummated on January 1, 2014. Additionally, the unaudited pro forma net income was adjusted to reclassify acquisition and transaction related expense of $4.0 million from the six months ended June 30, 2015 to the six months ended June 30, 2014:

	Six Months Ended June 30,
(In thousands)	2015 (1)		2014
Pro forma revenues	$	52,010	$	17,162
Pro forma net income (loss)	$	4,945	$	(1,445	)

_____________________

(1) For the six months ended June 30, 2015, aggregate revenues and net income derived from the Company's 2015 acquisition (for the Company's period of ownership) were $1.8 million and $0.7 million, respectively.

The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items:

(In thousands)	Future Minimum Base Rent Payments
July 1, 2015 to December 31, 2015	$	36,771
2016	71,981
2017	68,045
2018	56,099
2019	40,424
Thereafter	165,280
	$	438,600

The following table lists the tenants (including, for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis for all portfolio properties as of June 30, 2015 and 2014:

	June 30,
Tenant	2015	2014
AMC	*	10.7%

____________________________

* Tenant's annualized rental income on a straight-line basis was not greater than or equal to 10.0% of consolidated annualized rental income on a straight-line basis for all portfolio properties as of the date specified.

No other tenant represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2015 and 2014.

The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2015 and 2014:

	June 30,
State	2015	2014
Texas	16.2%	43.0%
Minnesota	11.2%	*
Florida	10.8%	*
Oklahoma	10.5%	*
Missouri	*	24.9%
Ohio	*	19.0%
Illinois	*	13.1%

____________________________

* State's annualized rental income on a straight-line basis was not greater than or equal to 10.0% of consolidated annualized rental income for all portfolio properties as of the date specified.

The Company did not own properties in any other state that in total represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2015 and 2014.

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Derivatives and Hedging Activities (Narrative) (Details) - Jun. 30, 2015 - USD ($) $ in Millions	Total
Derivative [Line Items]
Interest rate derivatives, at fair value, including adjustments for nonperformance risk	$ 0.5
Designated as Hedging Instrument | Interest Expense | Cash Flow Hedging | Interest rate swap
Derivative [Line Items]
Reclassification estimated of time to transfer	12 months
Reclassified amount from AOCI to income	$ 0.4
Interest rate swap | Designated as Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Assets needed for immediate settlement	$ 0.5

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

The following table reflects restricted share award activity for the six months ended June 30, 2015:

	Number of Shares of Restricted Stock		Weighted-Average Issue Price Per Share
Unvested, December 31, 2014	15,600		$	9.08
Vested	(3,600	)	9.17
Unvested, June 30, 2015	12,000		$	9.05

Schedule of Share-based Compensation, Activity for Services

The following table reflects the shares of common stock issued to directors in lieu of cash compensation:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Shares issued in lieu of cash	—		1,611		—		2,111
Value of shares issued in lieu of cash (in thousands)	$	—	$	15	$	—	$	19

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Related Party Transactions and Arrangements (Tables)

6 Months Ended

Jun. 30, 2015

Related Party Transactions [Abstract]

Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate

The following table details total selling commissions and dealer manager fees incurred by the Company during the three and six months ended June 30, 2015 and 2014 and payable to the Dealer Manager as of June 30, 2015 and December 31, 2014:

	Three Months Ended June 30,				Six Months Ended June 30,				Payable as of
(In thousands)	2015		2014		2015		2014		June 30, 2015		December 31, 2014
Total commissions and fees to the Dealer Manager	$	—	$	16,685	$	—	$	29,632	$	—	$	—

Schedule Of Offering Costs Reimbursements to Related Party

The following table details offering costs and reimbursements incurred during the three and six months ended June 30, 2015 and 2014 and payable to the Advisor and Dealer Manager as of June 30, 2015 and December 31, 2014:

	Three Months Ended June 30,				Six Months Ended June 30,				Payable (Receivable) as of
(In thousands)	2015		2014		2015		2014		June 30, 2015			December 31, 2014
Fees and expense reimbursements to the Advisor and Dealer Manager	$	—	$	590	$	—	$	1,012	$	(29	)	$	1,152

Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services

The following table details amounts incurred and forgiven during the three and six months ended June 30, 2015 and 2014 and amounts contractually due as of June 30, 2015 and December 31, 2014 in connection with the operations related services described above:

	Three Months Ended June 30,								Six Months Ended June 30,								Payable as of
	2015				2014				2015				2014				June 30, 2015		December 31, 2014
(In thousands)	Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven
One-time fees and reimbursements:
Acquisition fees and related cost reimbursements	$	2,644	$	—	$	1,420	$	—	$	3,038	$	—	$	1,420	$	—	$	—	$	—
Financing coordination fees (1)	—		—		1,000		—		—		—		1,000		—		—		—
Ongoing fees:
Asset management fees (2)	1,457		—		—		—		1,457		—		—		—		—		—
Transfer agent and other professional services	927		—		46		$	—	1,559		—		46		—		802		617
Strategic advisory fees	—		—		148		$	—	—		—		297		—		—		—
Distributions on Class B Units	68		—		6		$	—	95		—		7		—		25		—
Total related party operation fees and reimbursements	$	5,096	$	—	$	2,620	$	—	$	6,149	$	—	$	2,770	$	—	$	827	$	617

_________________________________

(1) These fees have been capitalized to deferred costs, net on the consolidated balance sheets.

(2) Effective April 1, 2015, the Company pays the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. From October 1, 2013 through March 31, 2015, the Company caused the OP to issue (subject to approval by the board of directors) to the Advisor restricted performance-based Class B Units for asset management services, which will be forfeited immediately if certain conditions occur.

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Share-Based Compensation (Other Share Based Compensation) (Details) - Common Stock - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in lieu of cash (in shares)	0	1,611	0	2,111
Value of shares issued in lieu of cash (in thousands)	$ 0	$ 15	$ 0	$ 19

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Derivatives and Hedging Activities (Schedule of Interest Rate Derivatives) (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest Rate Swap $ in Thousands	Jun. 30, 2015 USD ($) derivative	Dec. 31, 2014 USD ($) derivative
Derivative [Line Items]
Number of Instruments	1	1
Notional Amount | $	$ 34,098	$ 34,098

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Net Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a summary of the basic and diluted net income (loss) per share computation for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30,							Six Months Ended June 30,
(In thousands, except share and per share amounts)	2015				2014			2015				2014
Computation of Basic Net Income (Loss) Per Share:
Basic net income (loss)	$	4,999			$	(2,913	)	$	5,045			$	(3,512	)
Basic weighted-average shares outstanding	95,915,695				29,000,403			95,480,309				21,033,404
Basic net income (loss) per share	$	0.05			$	(0.10	)	$	0.05			$	(0.17	)
Computation of Diluted Net Income (Loss) Per Share:
Basic net income (loss)	$	4,999			$	(2,913	)	$	5,045			$	(3,512	)
Adjustments to net income (loss) for common share equivalents	(101		)		—			(101		)		—
Diluted net income (loss)	$	4,898			$	(2,913	)	$	4,944			$	(3,512	)
Basic weighted-average shares outstanding	95,915,695				29,000,403			95,480,309				21,033,404
Shares of unvested restricted stock	14,051			(1)	—			14,771			(1)	—
OP Units	202				—			202				—
Class B Units (2)	—				—			—				—
Diluted weighted-average shares outstanding	95,929,948				29,000,403			95,495,282				21,033,404
Diluted net income (loss) per share	$	0.05			$	(0.10	)	$	0.05			$	(0.17	)

_____________________

(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 12,000 shares of unvested restricted stock outstanding as of June 30, 2015.

(2) Weighted-average number of issued and unvested Class B Units for the three months ended June 30, 2015 and 2014 and the six months ended June 30, 2015 and 2014 were 438,948, 35,771, 305,213 and 21,413, respectively. The Class B Units are subject to a performance vesting condition that the Company has not achieved as of June 30, 2015 and 2014, and as such, the weighted-average number of issued and unvested Class B Units are not included in the above calculations of diluted weighted-average shares outstanding for the periods presented. As of June 30, 2015 and 2014, the Company's board of directors had approved the issuance of 479,802 and 45,178 Class B Units, respectively.

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented:

	Three Months Ended June 30,		Six Months Ended June 30,
	2014		2014
Shares of unvested restricted stock	20,314	(1)	19,959	(1)
OP Units	202		202
Total common stock equivalents	20,516		20,161

_____________________

(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 24,600 shares of unvested restricted stock outstanding as of June 30, 2014.

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Organization (Narrative) (Details) $ / shares in Units, ft² in Millions	53 Months Ended	59 Months Ended
	Dec. 31, 2014 USD ($) $ / shares shares	Jun. 30, 2015 USD ($) ft² property $ / shares shares	Sep. 19, 2014 USD ($)	Mar. 14, 2014 $ / shares shares	Mar. 17, 2011 $ / shares shares
Operations [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01
Common stock, authorized (in shares)	300,000,000	300,000,000		75,000,000
Maximum amount of offering from universal shelf registration statement | $			$ 25,000,000
Common stock, outstanding (in shares)	94,448,748	95,822,130
Proceeds from Issuance of stock | $	$ 938,700,000	$ 951,200,000
Total real estate investments, at cost | $		$ 903,700,000
Number of real estate properties | property		28
Square Feet | ft²		5.8
Real estate property, occupancy rate		94.70%
Advisor | American Realty Capital Retail Advisor, LLC
Operations [Line Items]
OP units held (in shares)	202	202
Minimum
Operations [Line Items]
Total real estate investments, at cost | $		$ 20,000,000
Required occupancy rate for acquisition targets		80.00%
Common Stock
Operations [Line Items]
Shares available for issuance under initial public offering (in shares)					150,000,000
Common stock, par value (in dollars per share) | $ / shares				$ 0.01	$ 0.01
Shares issued or available for issuance under initial public offering (in dollars per share) | $ / shares				$ 10	$ 10
Shares available for issuance under a distribution reinvestment plan (in shares)				12,500,000.0	25,000,000
Common Stock | Minimum
Operations [Line Items]
Shares issued or available for issuance under a distribution reinvestment plan (in dollars per share) | $ / shares					$ 9.50
Percent of estimated value of a share of common stock					95.00%

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The accompanying consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to this Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for these interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results for the entire year or any subsequent interim periods.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2014, which are included in the Company's Annual Report on Form 10-K filed with the SEC on April 15, 2015. There have been no significant changes to the Company's significant accounting policies during the six months ended June 30, 2015, other than the updates described below.

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of the new guidance.

In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company has adopted the provisions of this guidance for the fiscal year ending December 31, 2015 and determined that there is no impact to its financial position, results of operations and cash flows.

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. If the Company decides to early adopt the revised guidance in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes the interim period. The Company is currently evaluating the impact of the new guidance.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not previously been issued. If the Company decides to early adopt the revised guidance in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes the interim period. The Company is currently evaluating the impact of the new guidance.

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Real Estate Investments (Narrative) (Details) $ in Thousands							3 Months Ended		6 Months Ended
	Jun. 29, 2015 USD ($)	Dec. 23, 2014 USD ($)	Dec. 18, 2014 USD ($)	Oct. 29, 2014 USD ($)	Jun. 04, 2014 USD ($)	Sep. 26, 2013 USD ($)	Jun. 30, 2015 USD ($) property	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) property	Jun. 30, 2014 USD ($)
Business Acquisition [Line Items]
Number of real estate properties | property							28		28
Number of properties representing more than 5% of total portfolio | property							7		7
Acquisition and transaction related							$ 3,399	$ 1,768	$ 3,979	$ 1,788
Real estate investments, provisionally allocated									102,200
Fair value adjustment to contingent purchase price							13,802	$ 0	13,802	0
Proceeds received from contingent consideration arrangement									(13,187)	$ 0
Tiffany Springs MarketCenter
Business Acquisition [Line Items]
Cash paid for acquired real estate investments						$ 53,500
Prairie Towne Center
Business Acquisition [Line Items]
Cash paid for acquired real estate investments					$ 25,300
Southroads Shopping Center
Business Acquisition [Line Items]
Cash paid for acquired real estate investments				$ 57,800
Colonial Landing
Business Acquisition [Line Items]
Cash paid for acquired real estate investments			$ 37,300
The Shops at West End
Business Acquisition [Line Items]
Cash paid for acquired real estate investments		$ 117,100
Fair value adjustment to contingent purchase price							13,800		13,800
Proceeds received from contingent consideration arrangement									13,200
Impairment of contingent-related items							$ 4,400		$ 4,400
Township Marketplace
Business Acquisition [Line Items]
Cash paid for acquired real estate investments		41,100
Northpark Center
Business Acquisition [Line Items]
Cash paid for acquired real estate investments	$ 33,200
Acquisition and Transaction Related Line Items | Tiffany Springs MarketCenter
Business Acquisition [Line Items]
Acquisition and transaction related						$ 900
Acquisition and Transaction Related Line Items | Prairie Towne Center
Business Acquisition [Line Items]
Acquisition and transaction related					$ 400
Acquisition and Transaction Related Line Items | Southroads Shopping Center
Business Acquisition [Line Items]
Acquisition and transaction related				$ 1,000
Acquisition and Transaction Related Line Items | Colonial Landing
Business Acquisition [Line Items]
Acquisition and transaction related			$ 700
Acquisition and Transaction Related Line Items | The Shops at West End
Business Acquisition [Line Items]
Acquisition and transaction related		1,900
Acquisition and Transaction Related Line Items | Township Marketplace
Business Acquisition [Line Items]
Acquisition and transaction related		$ 1,200
Acquisition and Transaction Related Line Items | Northpark Center
Business Acquisition [Line Items]
Acquisition and transaction related	$ 600

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Mortgage Notes Payable (Schedule Of Aggregate Future Principal Payments On Mortgage Notes Payable) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total	$ 86,750	$ 86,931
Mortgage notes payable and premium, net
Debt Instrument [Line Items]
July 1, 2015 to December 31, 2015	182
2016	378
2017	400
2018	63,208
2019	443
Thereafter	22,139
Total	$ 86,750	$ 86,931

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Related Party Transactions and Arrangements (Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Acquisition fees and related cost reimbursements | One-time fees and reimbursements:
Related Party Transaction [Line Items]
Payable (Receivable)		$ 0		$ 0		$ 0
Acquisition fees and related cost reimbursements | Incurred | One-time fees and reimbursements:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		2,644	$ 1,420	3,038	$ 1,420
Acquisition fees and related cost reimbursements | Forgiven | One-time fees and reimbursements:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		0	0	0	0
Financing coordination fees | One-time fees and reimbursements:
Related Party Transaction [Line Items]
Payable (Receivable)	[1]	0		0		0
Financing coordination fees | Incurred | One-time fees and reimbursements:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	[1]	0	1,000	0	1,000
Financing coordination fees | Forgiven | One-time fees and reimbursements:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	[1]	0	0	0	0
Asset management fees | Ongoing fees:
Related Party Transaction [Line Items]
Payable (Receivable)	[2]	0		0		0
Asset management fees | Incurred | Ongoing fees:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	[2]	1,457	0	1,457	0
Asset management fees | Forgiven | Ongoing fees:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	[2]	0	0	0	0
Other Expense Reimbursements | Ongoing fees:
Related Party Transaction [Line Items]
Payable (Receivable)		802		802		617
Other Expense Reimbursements | Incurred | Ongoing fees:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		927	46	1,559	46
Other Expense Reimbursements | Forgiven | Ongoing fees:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		0	0	0	0
Strategic advisory fees | Ongoing fees:
Related Party Transaction [Line Items]
Payable (Receivable)		0		0		0
Strategic advisory fees | Incurred | Ongoing fees:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		0	148	0	297
Strategic advisory fees | Forgiven | Ongoing fees:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		0	0	0	0
Distributions on Class B Units | Ongoing fees:
Related Party Transaction [Line Items]
Payable (Receivable)		25		25		0
Distributions on Class B Units | Incurred | Ongoing fees:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		68	6	95	7
Distributions on Class B Units | Forgiven | Ongoing fees:
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		0	0	0	0
Total related party operation fees and reimbursements
Related Party Transaction [Line Items]
Payable (Receivable)		827		827		$ 617
Total related party operation fees and reimbursements | Incurred
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		5,096	2,620	6,149	2,770
Total related party operation fees and reimbursements | Forgiven
Related Party Transaction [Line Items]
Related party operation fees and reimbursements		$ 0	$ 0	$ 0	$ 0

[1] These fees have been capitalized to deferred costs, net on the consolidated balance sheets.

[2] Effective April 1, 2015, the Company pays the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. From October 1, 2013 through March 31, 2015, the Company caused the OP to issue (subject to approval by the board of directors) to the Advisor restricted performance-based Class B Units for asset management services, which will be forfeited immediately if certain conditions occur.

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Real estate investments, at cost:
Land	$ 218,876	$ 158,787
Buildings, fixtures and improvements	612,324	478,854
Acquired intangible lease assets	152,411	127,144
Total real estate investments, at cost	983,611	764,785
Less: accumulated depreciation and amortization	(39,728)	(19,115)
Total real estate investments, net	943,883	745,670
Cash and cash equivalents	47,639	170,963
Restricted cash	4,026	3,469
Prepaid expenses and other assets	14,450	7,591
Deferred costs, net	8,096	8,117
Land held for sale	500	0
Total assets	1,018,594	935,810
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable	86,750	86,931
Mortgage premium, net	275	292
Credit facility	70,000	0
Below-market lease liabilities, net	63,964	48,113
Derivatives, at fair value	475	332
Accounts payable and accrued expenses	18,939	10,329
Deferred rent and other liabilities	2,391	1,575
Distributions payable	5,064	5,138
Total liabilities	247,858	152,710
Preferred stock, $0.01 par value per share, 50,000,000 authorized, none issued or outstanding at June 30, 2015 and December 31, 2014	0	0
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 95,822,130 and 94,448,748 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	958	944
Additional paid-in capital	849,414	836,387
Accumulated other comprehensive loss	(469)	(327)
Accumulated deficit	(79,167)	(53,904)
Total stockholders' equity	770,736	783,100
Total liabilities and stockholders' equity	$ 1,018,594	$ 935,810

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Derivatives and Hedging Activities (Schedule of Derivative Instruments in Statement of Financial Position) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Derivatives, at fair value | Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap
Derivative [Line Items]
Interest Rate Derivative Liabilities, at Fair Value	$ (475)	$ (332)

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ 5,045	$ (3,512)
Adjustment to reconcile net loss to net cash provided by operating activities:
Depreciation	8,298	2,810
Amortization of in-place lease assets	12,114	1,614
Amortization (including accelerated write-off) of deferred costs	989	171
Amortization of mortgage premium	(17)	0
(Accretion) amortization of market lease intangibles, net	(1,181)	430
Bad debt expense	796	0
Fair value adjustment to contingent purchase price consideration	(13,802)	0
Impairment charges	4,434	0
Loss on disposition of land	0	19
Share-based compensation	19	43
Ineffective portion of derivative	1	5
Changes in assets and liabilities:
Prepaid expenses and other assets	(7,333)	(6,173)
Accounts payable and accrued expenses	4,997	1,257
Deferred rent and other liabilities	816	97
Net cash provided by operating activities	15,176	(3,239)
Cash flows from investing activities:
Investment in real estate and other assets	(202,022)	(94,700)
Deposits for real estate acquisitions	(456)	(1,500)
Proceeds from disposition of land	0	247
Proceeds from contingent purchase price consideration	13,187	0
Capital expenditures	(3,603)	0
Net cash used in investing activities	(192,894)	(95,953)
Cash flows from financing activities:
Payments of mortgage notes payable	(181)	0
Proceeds from credit facility	70,000	0
Payments of deferred financing costs	(37)	(2,115)
Proceeds from issuances of common stock	0	310,500
Common stock repurchases	(766)	0
Payments of offering costs and fees related to stock issuances, net	(1,176)	(33,130)
Distributions paid	(12,889)	(2,779)
Payments to affiliate, net	0	(1,019)
Restricted cash	(557)	(209)
Net cash provided by financing activities	54,394	271,248
Net change in cash and cash equivalents	(123,324)	172,056
Cash and cash equivalents, beginning of period	170,963	13,295
Cash and cash equivalents, end of period	47,639	185,351
Supplemental Disclosures:
Cash paid for interest	2,023	1,279
Cash paid for income taxes	73	36
Change in offering costs in accounts payable and accrued expenses	(1,180)	(1,352)
Change in accrued common stock repurchases	3,709	75
Change in capital improvements in accounts payable and accrued expenses	969	0
Non-Cash Financing Activities:
Common stock issued through distribution reinvestment plan	17,493	2,496
Mortgage notes payable released in connection with disposition of land	$ 0	$ 296

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Real Estate Investments (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands	Jun. 30, 2015 USD ($)
Real Estate [Abstract]
July 1, 2015 to December 31, 2015	$ 36,771
2016	71,981
2017	68,045
2018	56,099
2019	40,424
Thereafter	165,280
Total	$ 438,600

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Real Estate Investments (Tables)

6 Months Ended

Jun. 30, 2015

Real Estate [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table presents the allocation of the assets acquired and liabilities assumed during the six months ended June 30, 2015 and 2014:

	Six Months Ended June 30,
(Dollar amounts in thousands)	2015			2014
Real estate investments, at cost (1):
Land	$	60,590		$	31,375
Buildings, fixtures and improvements	129,140			51,612
Total tangible assets	189,730			82,987
Acquired intangibles:
In-place leases (2)	27,005			11,713
Above-market lease assets (2)	3,905			—
Below-market lease liabilities (2)	(18,618		)	—
Total intangible real estate investments, net	12,292			11,713
Cash paid for acquired real estate investments	$	202,022		$	94,700
Number of properties purchased	8			3

_____________________

(1) Real estate investments, at cost, of $102.2 million acquired during the six months ended June 30, 2015 have been provisionally allocated pending receipt and review of final appraisals and/or other information on such assets prepared by third party specialists.

(2) Weighted-average remaining amortization periods for in-place leases, above-market lease assets and below-market lease liabilities acquired during the six months ended June 30, 2015 were 7.0, 21.6 and 20.8 years, respectively, as of the dates of acquisition.

Business Acquisition, Pro Forma Information

The following table presents unaudited pro forma information as if the acquisition during the six months ended June 30, 2015 had been consummated on January 1, 2014. Additionally, the unaudited pro forma net income was adjusted to reclassify acquisition and transaction related expense of $4.0 million from the six months ended June 30, 2015 to the six months ended June 30, 2014:

	Six Months Ended June 30,
(In thousands)	2015 (1)		2014
Pro forma revenues	$	52,010	$	17,162
Pro forma net income (loss)	$	4,945	$	(1,445	)

_____________________

(1) For the six months ended June 30, 2015, aggregate revenues and net income derived from the Company's 2015 acquisition (for the Company's period of ownership) were $1.8 million and $0.7 million, respectively.

Schedule of Future Minimum Rental Payments for Operating Leases

The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items:

(In thousands)	Future Minimum Base Rent Payments
July 1, 2015 to December 31, 2015	$	36,771
2016	71,981
2017	68,045
2018	56,099
2019	40,424
Thereafter	165,280
	$	438,600

Schedule of Annualized Rental Income by Major Tenants

The following table lists the tenants (including, for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis for all portfolio properties as of June 30, 2015 and 2014:

	June 30,
Tenant	2015	2014
AMC	*	10.7%

____________________________

* Tenant's annualized rental income on a straight-line basis was not greater than or equal to 10.0% of consolidated annualized rental income on a straight-line basis for all portfolio properties as of the date specified.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2015 and 2014:

	June 30,
State	2015	2014
Texas	16.2%	43.0%
Minnesota	11.2%	*
Florida	10.8%	*
Oklahoma	10.5%	*
Missouri	*	24.9%
Ohio	*	19.0%
Illinois	*	13.1%

____________________________

* State's annualized rental income on a straight-line basis was not greater than or equal to 10.0% of consolidated annualized rental income for all portfolio properties as of the date specified.

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Real Estate Investments (Schedule of Annualized Rental Income by Major Tenants) (Details)	6 Months Ended
	Jun. 30, 2014
AMC
Revenue, Major Customer [Line Items]
Major tenant rental income, as a percentage of total annualized rental income	10.70%

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The following table presents information about the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, aggregated by the level in the fair value hierarchy within which those instruments fall:

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3		Total
June 30, 2015
Interest rate swap	$	—	$	(475	)	$	—	$	(475	)
December 31, 2014
Interest rate swap	$	—	$	(332	)	$	—	$	(332	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The fair values of the Company's remaining financial instruments that are not reported at fair value on the accompanying consolidated balance sheets are reported in the following table:

		Carrying Amount at		Fair Value at		Carrying Amount at		Fair Value at
(In thousands)	Level	June 30, 2015		June 30, 2015		December 31, 2014		December 31, 2014
Mortgage notes payable and premium, net	3	$	87,025	$	87,709	$	87,223	$	89,347
Credit Facility	3	$	70,000	$	70,000	$	—	$	—

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Organization

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

American Realty Capital — Retail Centers of America, Inc. (the "Company"), incorporated on July 29, 2010, is a Maryland corporation that qualified as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with the taxable year ended December 31, 2012. On March 17, 2011, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 150.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, pursuant to a registration statement on Form S-11, as amended (File No. 333-169355) (the "Registration Statement"), filed with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act"). The Registration Statement also covered up to 25.0 million shares available pursuant to a distribution reinvestment plan (the "DRIP") under which the Company's common stockholders were able to elect to have their distributions reinvested in additional shares of the Company's common stock at a price initially equal to $9.50 per share, which was 95.0% of the per share offering price in the IPO. On May 7, 2015, the Company filed a post-effective amendment to the Registration Statement to deregister the unsold shares registered under the Registration Statement.

On March 9, 2012, the Company raised proceeds sufficient to break escrow in connection with its IPO. On March 4, 2013, the Company's board of directors approved an extension of the termination date of the IPO from March 17, 2013 to March 17, 2014. On March 14, 2014, the Company filed a registration statement on Form S-11 (File No. 333-194586) (the "Follow-On Registration Statement") with the SEC to register a follow-on offering of up to 75.0 million shares of common stock, $0.01 par value per share, at a price of $10.00 per share, subject to certain volume and other discounts, and 12.5 million shares of common stock pursuant to the DRIP. However, as permitted by Rule 415 under the Securities Act, the Company continued offering and selling shares in its IPO until September 12, 2014.

The IPO closed on September 12, 2014. On September 17, 2014, the Company withdrew its Follow-On Registration Statement, from which no securities were sold. On September 19, 2014, the Company registered an additional 25.0 million shares of common stock to be used under the DRIP (as amended to include a direct stock purchase component) pursuant to a registration statement on Form S-3D (File No. 333-198864).

As of June 30, 2015, the Company had 95.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, and had received total proceeds from the IPO and the DRIP of $951.2 million.

The Company has acquired and intends to acquire and own existing anchored, stabilized core retail properties, including power centers, lifestyle centers, grocery-anchored shopping centers (with a purchase price in excess of $20.0 million) and other need-based shopping centers which are located in the United States and at least 80.0% leased at the time of acquisition. All properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire first mortgage loans secured by real estate. The Company purchased its first property and commenced active operations in June 2012. As of June 30, 2015, the Company owned 28 properties with an aggregate purchase price of $903.7 million, comprised of 5.8 million rentable square feet which were 94.7% leased on a weighted-average basis.

Substantially all of the Company's business is conducted through American Realty Capital Retail Operating Partnership, L.P. (the "OP"), a Delaware limited partnership. The Company is the sole general partner and holds substantially all the units of limited partner interest in the OP ("OP Units"). The Company's external affiliated advisor, American Realty Capital Retail Advisor, LLC (the "Advisor"), a limited partner in the OP, holds 202 OP Units, which represents a nominal percentage of the aggregate OP ownership. After holding the OP Units for a period of one year, or upon liquidation of the OP or sale of substantially all of the assets of the OP, holders of OP Units have the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, in accordance with the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.

The Company has no direct employees. The Company has retained the Advisor to manage its affairs on a day-to-day basis. The Advisor has entered into a service agreement with an independent third party, Lincoln Retail REIT Services, LLC, a Delaware limited liability company ("Lincoln"), pursuant to which Lincoln has agreed to provide, subject to the Advisor's oversight, real estate-related services, including locating investments, negotiating financing, and providing property-level asset management services, property management services, leasing and construction oversight services and disposition services, as needed. Realty Capital Securities, LLC (the "Dealer Manager") served as the dealer manager of the IPO. The Advisor and the Dealer Manager are under common control with AR Capital, LLC (the "Parent of the Sponsor"), the parent of the Company's sponsor, American Realty Capital IV, LLC (the "Sponsor"), as a result of which they are related parties, and each of which has received or will receive compensation, fees and expense reimbursements for services related to the IPO and the investment and management of the Company's assets. Such entities have received or may receive, as applicable, fees during the offering, acquisition, operational and liquidation stages. The Advisor has paid and will continue to pay Lincoln a substantial portion of the fees payable to the Advisor for the performance of real estate-related services.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	95,822,130	94,448,748
Common stock, outstanding (in shares)	95,822,130	94,448,748
Due to Affiliates	$ 827	$ 1,769

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Economic Dependency

6 Months Ended

Jun. 30, 2015

Economic Dependency [Abstract]

Economic Dependency

Economic Dependency

Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company's common stock available for issue, transfer agency services, as well as other administrative responsibilities for the Company including accounting services, transaction management services and investor relations.

As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN REALTY CAPITAL - RETAIL CENTERS OF AMERICA, INC.
Entity Central Index Key	0001500554
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		96,128,043

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Share-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

Stock Option Plan

The Company has a stock option plan (the "Plan") which authorizes the grant of nonqualified stock options to the Company's independent directors, officers, advisors, consultants and other personnel, subject to the absolute discretion of the board of directors and the applicable limitations of the Plan. The exercise price for all stock options granted under the Plan will be fixed at $10.00 per share until the termination of the IPO, and thereafter the exercise price for stock options granted to the independent directors will be equal to the fair market value of a share on the last business day preceding the annual meeting of stockholders. A total of 0.5 million shares have been authorized and reserved for issuance under the Plan. As of June 30, 2015 and December 31, 2014, no stock options were issued under the Plan.

Restricted Share Plan

The Company has an employee and director incentive restricted share plan (the "RSP"), which provides for the automatic grant of 3,000 restricted shares of common stock to each of the independent directors, without any further approval by the Company's board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholders' meeting. Restricted stock issued to independent directors will vest over a five-year period following the date of grant in increments of 20.0% per annum. The RSP provides the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. The total number of shares of common stock granted under the RSP may not exceed 5.0% of the Company's outstanding shares of common stock on a fully diluted basis at any time and in any event will not exceed 7.5 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

Restricted share awards entitle the recipient to receive shares of common stock from the Company under terms that provide for vesting over a specified period of time. Such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock will be subject to the same restrictions as the underlying restricted shares. The following table reflects restricted share award activity for the six months ended June 30, 2015:

	Number of Shares of Restricted Stock		Weighted-Average Issue Price Per Share
Unvested, December 31, 2014	15,600		$	9.08
Vested	(3,600	)	9.17
Unvested, June 30, 2015	12,000		$	9.05

As of June 30, 2015, the Company had $0.1 million of unrecognized compensation cost related to unvested restricted share awards granted under the Company's RSP. That cost is expected to be recognized over a weighted-average period of 3.6 years.

The fair value of the restricted shares is being expensed on a straight-line basis over the service period of five years. Compensation expense related to restricted stock was approximately $9,000 and $13,000 during the three months ended June 30, 2015 and 2014, respectively. Compensation expense related to restricted stock was approximately $19,000 and $24,000 during the six months ended June 30, 2015 and 2014, respectively.

Other Share-Based Compensation

The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors, at each director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. The following table reflects the shares of common stock issued to directors in lieu of cash compensation:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Shares issued in lieu of cash	—		1,611		—		2,111
Value of shares issued in lieu of cash (in thousands)	$	—	$	15	$	—	$	19

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Rental income	$ 17,679	$ 3,192	$ 33,830	$ 5,307
Operating expense reimbursements	4,969	1,086	9,913	1,770
Total revenues	22,648	4,278	43,743	7,077
Operating expenses:
Asset management fees to affiliate	1,457	0	1,457	0
Property operating	8,004	1,335	14,722	2,276
Impairment charges	4,434	0	4,434	0
Fair value adjustment to contingent purchase price obligation	(13,802)	0	(13,802)	0
Acquisition and transaction related	3,399	1,768	3,979	1,788
General and administrative	1,869	546	4,261	653
Depreciation and amortization	10,679	2,797	20,458	4,441
Total operating expenses	16,040	6,446	35,509	9,158
Operating loss	6,608	(2,168)	8,234	(2,081)
Other (expense) income:
Interest expense	(1,613)	(746)	(3,197)	(1,432)
Loss on disposition of land	0	(19)	0	(19)
Other income	4	20	8	20
Total other expense, net	(1,609)	(745)	(3,189)	(1,431)
Net income (loss)	4,999	(2,913)	5,045	(3,512)
Other comprehensive income (loss):
Change in unrealized loss on derivative	134	(259)	(142)	(304)
Comprehensive income (loss)	$ 5,133	$ (3,172)	$ 4,903	$ (3,816)
Basic net income (loss) per share (in dollars per share)	$ 0.05	$ (0.10)	$ 0.05	$ (0.17)
Diluted net income (loss) per share (in dollars per share)	$ 0.05	$ (0.10)	$ 0.05	$ (0.17)

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. This alternative approach also reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The guidance defines three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3 — Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

Although the Company has determined that the majority of the inputs used to value its derivative fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with this derivative utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparty. However, as of June 30, 2015 and December 31, 2014, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and has determined that the credit valuation adjustments are not significant to the overall valuation of the Company's derivative. As a result, the Company has determined that its derivative valuation in its entirety is classified in Level 2 of the fair value hierarchy.

The valuation of derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company's potential nonperformance risk and the performance risk of the counterparties.

The following table presents information about the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, aggregated by the level in the fair value hierarchy within which those instruments fall:

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3		Total
June 30, 2015
Interest rate swap	$	—	$	(475	)	$	—	$	(475	)
December 31, 2014
Interest rate swap	$	—	$	(332	)	$	—	$	(332	)

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets and liabilities. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2015.

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable and accrued expenses and distributions payable approximates their carrying value on the accompanying consolidated balance sheets due to their short-term nature. The fair values of the Company's remaining financial instruments that are not reported at fair value on the accompanying consolidated balance sheets are reported in the following table:

		Carrying Amount at		Fair Value at		Carrying Amount at		Fair Value at
(In thousands)	Level	June 30, 2015		June 30, 2015		December 31, 2014		December 31, 2014
Mortgage notes payable and premium, net	3	$	87,025	$	87,709	$	87,223	$	89,347
Credit Facility	3	$	70,000	$	70,000	$	—	$	—

The fair value of mortgage notes payable is estimated by an independent third party using a discounted cash flow analysis, based on management's estimates of market interest rates. Advances under the Credit Facility are considered to be reported at fair value, because its interest rate varies with changes in LIBOR.

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Mortgage Notes Payable

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Mortgage Note Payable

Mortgage Notes Payable

The Company's mortgage notes payable as of June 30, 2015 and December 31, 2014 consist of the following:

		Outstanding Loan Amount as of				Effective Interest Rate as of
Portfolio	Encumbered Properties	June 30, 2015		December 31, 2014		June 30, 2015			December 31, 2014			Interest Rate		Maturity Date
		(In thousands)		(In thousands)
Liberty Crossing	1	$	11,000	$	11,000	4.66	%		4.66	%		Fixed		Jul. 2018
San Pedro Crossing (1)	1	17,985		17,985		3.79	%		3.79	%		Fixed		Jan. 2018
Tiffany Springs MarketCenter	1	33,802		33,802		3.92	%		3.92	%		Fixed	(2)	Oct. 2018
Shops at Shelby Crossing	1	23,963		24,144		4.97	%		4.97	%		Fixed		Mar. 2024
Total	4	$	86,750	$	86,931	4.28	%	(3)	4.28	%	(3)

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(1) Payments and obligations pursuant to this mortgage agreement are guaranteed by the Parent of the Sponsor.

(2) Fixed as a result of entering into a swap agreement.

(3) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated.

The following table summarizes the scheduled aggregate principal payments for the Company's mortgage notes payable for the five years subsequent to June 30, 2015:

(In thousands)	Future Principal Payments
July 1, 2015 to December 31, 2015	$	182
2016	378
2017	400
2018	63,208
2019	443
Thereafter	22,139
	$	86,750

The Company's mortgage notes payable agreements require compliance with certain property-level financial covenants including debt service coverage ratios. As of June 30, 2015, the Company was in compliance with financial covenants under its mortgage notes payable agreements.

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Mortgage Notes Payable (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The Company's mortgage notes payable as of June 30, 2015 and December 31, 2014 consist of the following:

		Outstanding Loan Amount as of				Effective Interest Rate as of
Portfolio	Encumbered Properties	June 30, 2015		December 31, 2014		June 30, 2015			December 31, 2014			Interest Rate		Maturity Date
		(In thousands)		(In thousands)
Liberty Crossing	1	$	11,000	$	11,000	4.66	%		4.66	%		Fixed		Jul. 2018
San Pedro Crossing (1)	1	17,985		17,985		3.79	%		3.79	%		Fixed		Jan. 2018
Tiffany Springs MarketCenter	1	33,802		33,802		3.92	%		3.92	%		Fixed	(2)	Oct. 2018
Shops at Shelby Crossing	1	23,963		24,144		4.97	%		4.97	%		Fixed		Mar. 2024
Total	4	$	86,750	$	86,931	4.28	%	(3)	4.28	%	(3)

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(1) Payments and obligations pursuant to this mortgage agreement are guaranteed by the Parent of the Sponsor.

(2) Fixed as a result of entering into a swap agreement.

(3) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated.

Schedule of Maturities of Long-term Debt

The following table summarizes the scheduled aggregate principal payments for the Company's mortgage notes payable for the five years subsequent to June 30, 2015:

(In thousands)	Future Principal Payments
July 1, 2015 to December 31, 2015	$	182
2016	378
2017	400
2018	63,208
2019	443
Thereafter	22,139
	$	86,750

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Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Net Income (Loss) Per Share

 The following is a summary of the basic and diluted net income (loss) per share computation for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30,							Six Months Ended June 30,
(In thousands, except share and per share amounts)	2015				2014			2015				2014
Computation of Basic Net Income (Loss) Per Share:
Basic net income (loss)	$	4,999			$	(2,913	)	$	5,045			$	(3,512	)
Basic weighted-average shares outstanding	95,915,695				29,000,403			95,480,309				21,033,404
Basic net income (loss) per share	$	0.05			$	(0.10	)	$	0.05			$	(0.17	)
Computation of Diluted Net Income (Loss) Per Share:
Basic net income (loss)	$	4,999			$	(2,913	)	$	5,045			$	(3,512	)
Adjustments to net income (loss) for common share equivalents	(101		)		—			(101		)		—
Diluted net income (loss)	$	4,898			$	(2,913	)	$	4,944			$	(3,512	)
Basic weighted-average shares outstanding	95,915,695				29,000,403			95,480,309				21,033,404
Shares of unvested restricted stock	14,051			(1)	—			14,771			(1)	—
OP Units	202				—			202				—
Class B Units (2)	—				—			—				—
Diluted weighted-average shares outstanding	95,929,948				29,000,403			95,495,282				21,033,404
Diluted net income (loss) per share	$	0.05			$	(0.10	)	$	0.05			$	(0.17	)

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(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 12,000 shares of unvested restricted stock outstanding as of June 30, 2015.

(2) Weighted-average number of issued and unvested Class B Units for the three months ended June 30, 2015 and 2014 and the six months ended June 30, 2015 and 2014 were 438,948, 35,771, 305,213 and 21,413, respectively. The Class B Units are subject to a performance vesting condition that the Company has not achieved as of June 30, 2015 and 2014, and as such, the weighted-average number of issued and unvested Class B Units are not included in the above calculations of diluted weighted-average shares outstanding for the periods presented. As of June 30, 2015 and 2014, the Company's board of directors had approved the issuance of 479,802 and 45,178 Class B Units, respectively.

Diluted net income (loss) per share assumes the conversion of all common stock equivalents into an equivalent number of common shares, unless the effect is antidilutive. The Company considers unvested restricted stock and OP Units to be common share equivalents. The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented:

	Three Months Ended June 30,		Six Months Ended June 30,
	2014		2014
Shares of unvested restricted stock	20,314	(1)	19,959	(1)
OP Units	202		202
Total common stock equivalents	20,516		20,161

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(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 24,600 shares of unvested restricted stock outstanding as of June 30, 2014.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Future Minimum Ground Lease Payments

The Company entered into lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter:

(In thousands)	Future Minimum Base Rent Payments
July 1, 2015 to December 31, 2015	$	249
2016	504
2017	514
2018	524
2019	535
Thereafter	9,923
	$	12,249

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on its financial position or results of operations.

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships.

Cash Flow Hedges of Interest Rate Risk

The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and collars as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve the receipt of variable-rate amounts if interest rates rise above the cap strike rate on the contract and payments of variable-rate amounts if interest rates fall below the floor strike rate on the contract.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company uses such derivatives to hedge the variable cash flows associated with variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. During the next 12 months, the Company estimates that an additional $0.4 million will be reclassified from other comprehensive loss as an increase to interest expense.

As of June 30, 2015 and December 31, 2014, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

	June 30, 2015			December 31, 2014
Interest Rate Derivative	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
		(In thousands)			(In thousands)
Interest Rate Swap	1	$	34,098	1	$	34,098

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the accompanying consolidated balance sheets as of June 30, 2015 and December 31, 2014:

(In thousands)	Balance Sheet Location	June 30, 2015			December 31, 2014
Derivatives designated as hedging instruments:
Interest Rate Swap	Derivatives, at fair value	$	(475	)	$	(332	)

The table below details the location in the accompanying consolidated financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the six months ended June 30, 2015 and 2014.

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Amount of gain (loss) recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion)	$	10		$	(385	)	$	(389	)	$	(554	)
Amount of loss reclassified from accumulated other comprehensive loss into income as interest expense (effective portion)	$	(124	)	$	(126	)	$	(247	)	$	(250	)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing) *	$	1		$	(5	)	$	(1	)	$	(5	)

_________________________________

* The Company reclassified approximately $1,000 of other comprehensive income and $1,000 of other comprehensive loss to interest expense during the three and six months ended June 30, 2015, respectively, which represented the ineffective portion of the change in fair value of the derivative.

Offsetting Derivatives

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of June 30, 2015 and December 31, 2014. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the accompanying consolidated balance sheets:

									Gross Amounts Not Offset on the Balance Sheet
(In thousands)	Gross Amounts of Recognized Liabilities			Gross Amounts Offset on the Balance Sheet		Net Amounts of Liabilities presented on the Balance Sheet			Financial Instruments		Cash Collateral Received (Posted)		Net Amount
June 30, 2015	$	(475	)	$	—	$	(475	)	$	—	$	—	$	(475	)
December 31, 2014	$	(332	)	$	—	$	(332	)	$	—	$	—	$	(332	)

Derivatives Not Designated as Hedges

Derivatives not designated as hedges are not speculative. These derivatives may be used to manage the Company's exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements to be classified as hedging instruments. As of June 30, 2015 and December 31, 2014, the Company does not have any hedging instruments that do not qualify for hedge accounting.

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

As of June 30, 2015, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $0.5 million. As of June 30, 2015, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $0.5 million at June 30, 2015.

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Common Stock

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Common Stock

Common Stock

As of June 30, 2015 and December 31, 2014, the Company had 95.8 million and 94.4 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, and had received total proceeds from the IPO and the DRIP of $951.2 million and $938.7 million, respectively.

On September 19, 2011, the Company's board of directors authorized, and the Company declared, distributions payable to stockholders of record each day during the applicable period equal to $0.0017534247 per day, which is equivalent to $0.64 per annum, per share of common stock. Distributions began to accrue on June 8, 2012, the date of the Company's initial property acquisition. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

Share Repurchase Program

 The Company's board of directors has adopted a Share Repurchase Program ("SRP") that enables stockholders to sell their shares to the Company in limited circumstances. The SRP permits investors to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below.

Prior to the time that the Company's shares are listed on a national securities exchange and until the Company establishes an estimated value for the shares, the purchase price per share will depend on the length of time investors have held such shares as follows: after one year from the purchase date — the lower of $9.25 or 92.5% of the amount they actually paid for each share; after two years from the purchase date —the lower of $9.50 or 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $9.75 or 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $10.00 or 100.0% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations). The Company expects to begin establishing an estimated value for its shares based on the value of its real estate and real estate-related investments beginning 18 months after the close of its offering. Beginning 18 months after the completion of the Company's offering (excluding common shares issued under the DRIP), the board of directors will determine the value of the properties and the other assets based on such information as the board determines appropriate, which is expected to include independent valuations of properties or of the Company as a whole, prepared by third-party service providers.

The Company is only authorized to repurchase shares pursuant to the SRP up to the value of the shares issued under the DRIP and will limit the amount spent to repurchase shares in a given quarter to the value of the shares issued under the DRIP in that same quarter. In addition, the board of directors may reject a request for redemption, at any time. Due to these limitations, the Company cannot guarantee that it will be able to accommodate all repurchase requests. Purchases under the SRP by the Company will be limited in any calendar year to 5.0% of the weighted-average number of shares outstanding during the prior calendar year.

The Company's board of directors reserves the right, in its sole discretion, at any time and from time to time, to reject any request for repurchase, change the purchase price for repurchases or otherwise amend the terms of, suspend or terminate the SRP.

When a stockholder requests repurchases and the repurchases are approved by the Company's board of directors, it will reclassify such obligation from equity to a liability based on the settlement value of the obligation. The following table summarizes the repurchases of shares under the SRP cumulatively through June 30, 2015:

	Number of Requests	Number of Shares Repurchased	Weighted-Average Price per Share
Cumulative repurchases as of December 31, 2014	19	73,492	$	9.82
Six Months Ended June 30, 2015	39	467,905	9.56
Cumulative repurchases as of June 30, 2015 (1)	58	541,397	$	9.60

_____________________

(1) Includes 27 unfulfilled repurchase requests consisting of 423,428 shares with a weighted-average repurchase price per share of $9.53, which were approved for repurchase as of June 30, 2015 and were completed during the third quarter of 2015. This liability is included in accounts payable and accrued expenses on the Company's consolidated balance sheet as of June 30, 2015.

Distribution Reinvestment Plan

Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP.  Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the IPO. The board of directors may designate that certain cash or other distributions be excluded from the DRIP.  The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days' notice to participants. Shares issued under the DRIP are recorded to equity in the accompanying consolidated balance sheet in the period distributions are declared.  During the six months ended June 30, 2015, the Company issued 1.8 million shares of common stock with a value of $17.5 million and a par value per share of $0.01 pursuant to the DRIP.

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Related Party Transactions and Arrangements

6 Months Ended

Jun. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions and Arrangements

Related Party Transactions and Arrangements

The Sponsor and American Realty Capital Retail Special Limited Partnership, LLC, an entity controlled by the Sponsor, owned 242,222 shares of the Company's outstanding common stock as of June 30, 2015 and December 31, 2014. As of June 30, 2015 and December 31, 2014, the Advisor owned 202 OP Units.

Fees Paid in Connection with the IPO

During the IPO, the Dealer Manager was paid fees and compensation in connection with the sale of the Company's common stock. The Dealer Manager was paid a selling commission of up to 7.0% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Dealer Manager received up to 3.0% of the gross proceeds from the sale of common stock, before reallowance to participating broker-dealers, as a dealer manager fee. The Dealer Manager was entitled to reallow its dealer manager fee to participating broker-dealers, based on such factors as the volume of shares sold by respective participating broker-dealers and marketing support incurred as compared to those of other participating broker-dealers. The following table details total selling commissions and dealer manager fees incurred by the Company during the three and six months ended June 30, 2015 and 2014 and payable to the Dealer Manager as of June 30, 2015 and December 31, 2014:

	Three Months Ended June 30,				Six Months Ended June 30,				Payable as of
(In thousands)	2015		2014		2015		2014		June 30, 2015		December 31, 2014
Total commissions and fees to the Dealer Manager	$	—	$	16,685	$	—	$	29,632	$	—	$	—

The Advisor and its affiliates were paid compensation and received expense reimbursements for services relating to the IPO. The Company utilizes transfer agent services provided by an affiliate of the Dealer Manager. All offering costs relating to the IPO incurred by the Company or entities affiliated with the Advisor on behalf of the Company are charged to additional paid-in capital on the accompanying consolidated balance sheets. The following table details offering costs and reimbursements incurred during the three and six months ended June 30, 2015 and 2014 and payable to the Advisor and Dealer Manager as of June 30, 2015 and December 31, 2014:

	Three Months Ended June 30,				Six Months Ended June 30,				Payable (Receivable) as of
(In thousands)	2015		2014		2015		2014		June 30, 2015			December 31, 2014
Fees and expense reimbursements to the Advisor and Dealer Manager	$	—	$	590	$	—	$	1,012	$	(29	)	$	1,152

The Company was responsible for paying offering and related costs from the IPO, excluding commissions and dealer manager fees, up to a maximum of 1.5% of gross proceeds received from the IPO, measured at the end of the IPO. Offering costs in excess of the 1.5% cap as of the end of the IPO are the Advisor's responsibility. As of the close of the IPO, cumulative offering and related costs, excluding commissions and dealer manager fees, did not exceed the 1.5% threshold.

Fees and Participations Paid in Connection With the Operations of the Company

The Advisor is paid an acquisition fee equal to 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for any loan or other investment. The Advisor is also paid for services provided for which it incurs investment-related expenses, or insourced expenses. Such insourced expenses will be fixed initially at, and may not exceed, 0.5% of the contract purchase price and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company pays third party acquisition expenses. Once the proceeds from the IPO have been fully invested, the aggregate amount of acquisition fees and financing coordination fees (as described below) will not exceed 1.5% of the contract purchase price and the amount advanced for a loan or other investment, as applicable, for all the assets acquired. In no event will the total of all acquisition fees and acquisition expenses (including any financing coordination fees) payable with respect to the Company's portfolio of investments or reinvestments exceed 4.5% of the contract purchase price to be measured at the close of the acquisition phase or 4.5% of the amount advanced for all loans or other investments.

If the Advisor provides services in connection with the origination or refinancing of any debt that the Company obtains and uses to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, the Company will pay the Advisor a financing coordination fee equal to 1.0% of the amount available or outstanding under such financing, subject to certain limitations.

In connection with the asset management services provided by the Advisor, the Company issued to the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." Class B Units are intended to be profit interests which will vest, and no longer be subject to forfeiture, at such time as: (x) the value of the OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 7.0% cumulative, pre-tax, non-compounded annual return thereon (the "economic hurdle"); (y) any one of the following occurs: (1) the termination of the advisory agreement by an affirmative vote of a majority of the Company's independent directors without cause; (2) a listing of the Company's common stock on a national securities exchange; or (3) another liquidity event; and (z) the Advisor is still providing advisory services to the Company (the "performance condition"). Unvested Class B Units will be forfeited immediately if: (a) the advisory agreement is terminated other than by an affirmative vote of a majority of the Company's independent directors without cause; or (b) the advisory agreement is terminated by an affirmative vote of a majority of the Company's independent directors without cause before the economic hurdle has been met.

When and if approved by the board of directors, the Class B Units are issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter is equal to the cost of the Company's assets multiplied by 0.1875%, divided by the value of one share of common stock as of the last day of such calendar quarter, which is equal initially to $9.00 (the initial offering price in the IPO minus selling commissions and dealer manager fees). As of June 30, 2015, the Company cannot determine the probability of achieving the performance condition. The value of issued Class B Units will be determined and expensed when the Company deems the achievement of the performance condition to be probable. The Advisor receives distributions on the vested and unvested Class B Units it receives in connection with its asset management subordinated participation at the same rate as distributions received on the Company's common stock. Such distributions on issued Class B Units are included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss until the performance condition is considered probable to occur. As of June 30, 2015, the Company's board of directors has approved the issuance of and the OP has issued 479,802 Class B Units to the Advisor in connection with this arrangement on a cumulative basis.

Effective April 1, 2015:

i. for any period commencing on or after April 1, 2015, the Company pays the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee (as defined in the advisory agreement) equal to 0.75% per annum of the Cost of Assets (as defined in the advisory agreement);

ii. such Asset Management Fee will be payable monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor; and

iii. the Company shall not cause the OP to issue any Class B Units in respect of periods subsequent to March 31, 2015.

In connection with property management and leasing services, unless the Company contracts with a third party, the Company will pay to an affiliate of the Advisor a property management fee of 2.0% of gross revenues from the Company's stand-alone single-tenant net leased properties which are not part of a shopping center and 4.0% of gross revenues from all other types of properties. The Company will also reimburse the affiliate for property level expenses. If the Company contracts directly with third parties for such services, the Company will pay them customary market fees and, prior to January 28, 2014, would pay the Advisor an oversight fee of up to 1.0% of the gross revenues of the property managed. In no event would the Company pay the Advisor or any affiliate both a property management fee and an oversight fee with respect to any particular property. Effective January 28, 2014, the Advisor eliminated the oversight fee.

In connection with any construction, renovation or tenant finish-out on any property, the Company will pay the Advisor 6.0% of the hard costs of the construction, renovation and/or tenant finish-out, as applicable.

Effective March 1, 2013, the Company entered into an agreement with the Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. Strategic advisory fees were amortized over the estimated remaining term of the IPO and, as such, have been fully amortized as of June 30, 2015. These fees are included in general and administrative expenses in the accompanying consolidated statement of operations and comprehensive loss. The Dealer Manager and its affiliates also provide transfer agency services, as well as transaction management and other professional services. These fees are also included in general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss during the period the service was provided.

The following table details amounts incurred and forgiven during the three and six months ended June 30, 2015 and 2014 and amounts contractually due as of June 30, 2015 and December 31, 2014 in connection with the operations related services described above:

	Three Months Ended June 30,								Six Months Ended June 30,								Payable as of
	2015				2014				2015				2014				June 30, 2015		December 31, 2014
(In thousands)	Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven
One-time fees and reimbursements:
Acquisition fees and related cost reimbursements	$	2,644	$	—	$	1,420	$	—	$	3,038	$	—	$	1,420	$	—	$	—	$	—
Financing coordination fees (1)	—		—		1,000		—		—		—		1,000		—		—		—
Ongoing fees:
Asset management fees (2)	1,457		—		—		—		1,457		—		—		—		—		—
Transfer agent and other professional services	927		—		46		$	—	1,559		—		46		—		802		617
Strategic advisory fees	—		—		148		$	—	—		—		297		—		—		—
Distributions on Class B Units	68		—		6		$	—	95		—		7		—		25		—
Total related party operation fees and reimbursements	$	5,096	$	—	$	2,620	$	—	$	6,149	$	—	$	2,770	$	—	$	827	$	617

_________________________________

(1) These fees have been capitalized to deferred costs, net on the consolidated balance sheets.

(2) Effective April 1, 2015, the Company pays the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. From October 1, 2013 through March 31, 2015, the Company caused the OP to issue (subject to approval by the board of directors) to the Advisor restricted performance-based Class B Units for asset management services, which will be forfeited immediately if certain conditions occur.

The Company reimburses the Advisor's costs of providing administrative services, subject to the limitation that it will not reimburse the Advisor for any amount by which the Company's operating expenses (including the asset management fee, as applicable) at the end of the four preceding fiscal quarters exceeds the greater of (a) 2.0% of average invested assets, or (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash expenses and excluding any gain from the sale of assets for that period, unless the Company's independent directors determine that such excess was justified based on unusual and nonrecurring factors which they deem sufficient, in which case the excess amount may be reimbursed to the Advisor in subsequent periods. Additionally, the Company reimburses the Advisor for personnel costs in connection with other services during the operational stage; however, the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expenses or real estate commissions. The Company will not reimburse the Advisor for salaries and benefits paid to the Company's executive officers. No reimbursements were made to the Advisor for providing administrative services during the three and six months ended June 30, 2015 or 2014.

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to waive certain fees. Because the Advisor may waive certain fees, cash flows from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's general and administrative costs and/or property operating costs. No general and administrative costs were absorbed by the Advisor during the three months ended June 30, 2015 and 2014 and the six months ended June 30, 2015. The Advisor absorbed $0.3 million of general and administrative costs during the six months ended June 30, 2014. No property operating costs were absorbed by the Advisor during the three and six months ended June 30, 2015 and 2014. General and administrative expenses and property operating expenses are presented net of costs absorbed by the Advisor on the accompanying consolidated statements of operations and comprehensive loss.

Fees and Participations Paid in Connection with Liquidation or Listing

 The Company will pay a brokerage commission to the Advisor or its affiliates on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and one-half of the total brokerage commission paid, if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in light of the size, type and location of the property, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. No such fees were incurred during the three and six months ended June 30, 2015 and 2014.

The Company will pay the Advisor a subordinated participation in the net sales proceeds of the sale of real estate assets of 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of a 7.0% cumulative, pre-tax non-compounded annual return on the capital contributed by investors.  The Company cannot assure that it will provide this 7.0% annual return and the Advisor will not be entitled to the subordinated participation in net sale proceeds unless the Company's investors have received a 7.0% cumulative non-compounded annual return on their capital contributions plus the 100.0% repayment of capital committed by such investors. No such amounts were incurred during the three and six months ended June 30, 2015 or 2014.

If the Company's shares of common stock are listed on a national securities exchange, the Advisor will receive a subordinated incentive listing distribution from the OP of 15.0% of the amount by which the Company's market value plus distributions paid prior to listing exceeds the aggregate capital contributed by investors plus an amount equal to a 7.0% cumulative, pre-tax non-compounded annual return to investors.  The Company cannot assure that it will provide this 7.0% annual return and the Advisor will not be entitled to the subordinated incentive listing distribution unless investors have received a 7.0% cumulative, pre-tax non-compounded annual return on their capital contributions plus the 100.0% repayment of capital committed by such investors. No such distribution was incurred during the three and six months ended June 30, 2015 or 2014. Neither the Advisor nor any of its affiliates can earn both the subordinated participation in the net sales proceeds and the subordinated listing distribution.

Upon termination or non-renewal of the advisory agreement, the Advisor will receive distributions from the OP equal to 15.0% of the amount by which the sum of the Company's market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 7.0% cumulative, pre-tax non-compounded return to investors. The Advisor may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs.

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Real Estate Investments (Pro-Forma) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Pro forma revenues			$ 52,010	[1]	$ 17,162
Pro forma net loss			4,945	[1]	(1,445)
Revenues	$ 22,648	$ 4,278	43,743		7,077
Net income (loss)	$ 4,999	$ (2,913)	5,045		$ (3,512)
2014 Acquisitions [Member]
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenues			1,800
Net income (loss)			$ 700

[1] For the six months ended June 30, 2015, aggregate revenues and net income derived from the Company's 2015 acquisition (for the Company's period of ownership) were $1.8 million and $0.7 million, respectively.

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Related Party Transactions and Arrangements (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Maximum
Related Party Transaction [Line Items]
Liability for offering and related costs from IPO	1.50%
Total commissions and fees from the Dealer Manager
Related Party Transaction [Line Items]
Share price net (in dollars per share)	$ 9.00
Sponsor and Entity Wholly Owned by Sponsor | American Realty Capital IV, LLC and American Realty Capital Retail Special Limited Partnership, LLC
Related Party Transaction [Line Items]
Operating partnership units held by related party (in shares)	242,222		242,222
Advisor | American Realty Capital Retail Advisor, LLC
Related Party Transaction [Line Items]
OP units held (in shares)	202		202
Advisor | American Realty Capital Retail Advisor, LLC | Contract Purchase Price
Related Party Transaction [Line Items]
Acquisition fees as a percentage of benchmark	1.00%
Expected third party acquisition costs	0.50%
Quarterly asset management fee	0.1875%
Advisor | American Realty Capital Retail Advisor, LLC | Advance on Loan or Other Investment
Related Party Transaction [Line Items]
Financing advance fees as a percentage of benchmark	1.00%
Expected third party acquisition costs	0.50%
Advisor | American Realty Capital Retail Advisor, LLC | Contract Purchase Price, All Assets Acquired | Maximum
Related Party Transaction [Line Items]
Acquisition and financing coordination fees as a percentage of benchmark	1.50%
Aggregate acquisition fees and acquisition related expenses as a percentage of benchmark	4.50%
Advisor | American Realty Capital Retail Advisor, LLC | Advances On All Loans Or Other Investments | Maximum
Related Party Transaction [Line Items]
Aggregate acquisition fees and acquisition related expenses as a percentage of benchmark	4.50%
Advisor | American Realty Capital Retail Advisor, LLC | Amount Available or Outstanding Under Financing Arrangement
Related Party Transaction [Line Items]
Financing coordination fee	1.00%
Advisor | American Realty Capital Retail Advisor, LLC | Average Invested Assets | Maximum | Greater Of
Related Party Transaction [Line Items]
Operating expenses as a percentage of benchmark	2.00%
Advisor | American Realty Capital Retail Advisor, LLC | Gross Revenue, Stand-alone Single-tenant Net Leased Properties
Related Party Transaction [Line Items]
Property management fees as a percentage of benchmark	2.00%
Advisor | American Realty Capital Retail Advisor, LLC | Gross Revenue, Excluding Stand-alone Single-tenant Net Leased Properties
Related Party Transaction [Line Items]
Property management fees as a percentage of benchmark	4.00%
Advisor | American Realty Capital Retail Advisor, LLC | Gross Revenue, Managed Properties | Maximum
Related Party Transaction [Line Items]
Oversight fees as a percentage of benchmark	1.00%
Advisor | American Realty Capital Retail Advisor, LLC | Hard Costs Of Construction, Renovation and/or Tenant Finish-out
Related Party Transaction [Line Items]
Construction, renovation or tenant finish-out as a percentage of benchmark	6.00%
Advisor | American Realty Capital Retail Advisor, LLC | Net Income, Excluding Additions to Non-cash Reserves and Gains on Sales of Assets | Maximum | Greater Of
Related Party Transaction [Line Items]
Operating expenses as a percentage of benchmark	25.00%
Advisor | American Realty Capital Retail Advisor, LLC | Net Sale Proceeds, after Return of Capital Contributions and Annual Targeted Investor Return
Related Party Transaction [Line Items]
Subordinated participation fee earned	15.00%
Advisor | American Realty Capital Retail Advisor, LLC | Excess of Adjusted Market Value of Real Estate Assets Plus Distributions Over Aggregate Contributed Investor Capita
Related Party Transaction [Line Items]
Subordinated incentive listing distribution as a percentage of the benchmark	15.00%
Distribution upon nonrenewal of advisory agreement	15.00%
Advisor | American Realty Capital Retail II Advisor, LLC [Member] | Contract Purchase Price
Related Party Transaction [Line Items]
Quarterly asset management fee	0.75%
Advisor | Absorbed General and Administrative Expenses | American Realty Capital Retail Advisor, LLC
Related Party Transaction [Line Items]
General and administrative costs	$ 0	$ 300,000
Advisor | Brokerage Commission Fees | American Realty Capital Retail Advisor, LLC | Contract Sales Price | Maximum
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	2.00%
Advisor | Real Estate Commissions | American Realty Capital Retail Advisor, LLC | Contract Sales Price
Related Party Transaction [Line Items]
Asset management fee		$ 0
Advisor | Real Estate Commissions | American Realty Capital Retail Advisor, LLC | Contract Sales Price | Maximum
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	6.00%
Advisor | Annual Targeted Investor Return | American Realty Capital Retail Advisor, LLC | Pre-tax Non-compounded Return on Capital Contribution
Related Party Transaction [Line Items]
Cumulative capital investment return to investors as a percentage of benchmark	7.00%
Repayment of capital committed	100.00%
Dealer Manager | Realty Capital Securities, LLC | Gross Proceeds, Initial Public Offering | Maximum
Related Party Transaction [Line Items]
Commission of gross offering proceeds	7.00%
Dealer Manager | Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Maximum
Related Party Transaction [Line Items]
Sales commissions as a percentage of benchmark	3.00%
Class B Units | Advisor | American Realty Capital Retail Advisor, LLC | Contract Purchase Price
Related Party Transaction [Line Items]
Common stock, authorized (in shares)	479,802	45,178

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of the new guidance.

In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company has adopted the provisions of this guidance for the fiscal year ending December 31, 2015 and determined that there is no impact to its financial position, results of operations and cash flows.

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. If the Company decides to early adopt the revised guidance in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes the interim period. The Company is currently evaluating the impact of the new guidance.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not previously been issued. If the Company decides to early adopt the revised guidance in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes the interim period. The Company is currently evaluating the impact of the new guidance.

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Common Stock (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Class of Treasury Stock

The following table summarizes the repurchases of shares under the SRP cumulatively through June 30, 2015:

	Number of Requests	Number of Shares Repurchased	Weighted-Average Price per Share
Cumulative repurchases as of December 31, 2014	19	73,492	$	9.82
Six Months Ended June 30, 2015	39	467,905	9.56
Cumulative repurchases as of June 30, 2015 (1)	58	541,397	$	9.60

_____________________

(1) Includes 27 unfulfilled repurchase requests consisting of 423,428 shares with a weighted-average repurchase price per share of $9.53, which were approved for repurchase as of June 30, 2015 and were completed during the third quarter of 2015. This liability is included in accounts payable and accrued expenses on the Company's consolidated balance sheet as of June 30, 2015.

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Common Stock (Stock Repurchases) (Details)	6 Months Ended	53 Months Ended	59 Months Ended
	Jun. 30, 2015 request $ / shares shares	Dec. 31, 2014 request $ / shares shares	Jun. 30, 2015 request $ / shares shares
Class of Stock [Line Items]
Number of Requests | request	39	19	58	[1]
Number of Shares Repurchased (in shares)	467,905	73,492	541,397	[1]
Weighted-Average Price per Share (in dollars per share) | $ / shares	$ 9.56	$ 9.82	$ 9.60	[1]
Unfunded
Class of Stock [Line Items]
Number of Requests | request	27
Weighted-Average Price per Share (in dollars per share) | $ / shares	$ 9.53
Number of Shares Repurchased (in shares)	423,428		423,428

[1] Includes 27 unfulfilled repurchase requests consisting of 423,428 shares with a weighted-average repurchase price per share of $9.53, which were approved for repurchase as of June 30, 2015 and were completed during the third quarter of 2015. This liability is included in accounts payable and accrued expenses on the Company's consolidated balance sheet as of June 30, 2015.

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Fair Value of Financial Instruments (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Liability	$ (475)	$ (332)
Fair Value, Measurements, Recurring | Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Liability	(475)	(332)
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets Level 1 | Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Liability	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs Level 2 | Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Liability	(475)	(332)
Fair Value, Measurements, Recurring | Significant Unobservable Inputs Level 3 | Interest rate swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Liability	$ 0	$ 0

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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total Stockholders' Equity
Balance, beginning of period (in shares) at Dec. 31, 2014		94,448,748.000
Balance, beginning of period at Dec. 31, 2014		$ 944	$ 836,387	$ (327)	$ (53,904)	$ 783,100
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in offering costs			4			4
Common stock issued through distribution reinvestment plan (in shares)		1,841,287
Common stock issued through distribution reinvestment plan	$ 17,493	$ 19	17,474			17,493
Common stock repurchases (in shares)	(467,905)	(467,905)
Common stock repurchases		$ (5)	(4,470)			(4,475)
Share-based compensation			19			19
Distributions declared					(30,308)	(30,308)
Net income	$ 5,045				5,045	5,045
Other comprehensive loss				(142)		(142)
Balance, end of period (in shares) at Jun. 30, 2015		95,822,130.00
Balance, end of period at Jun. 30, 2015		$ 958	$ 849,414	$ (469)	$ (79,167)	$ 770,736

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Credit Facility

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Credit Facility

Credit Facility

On June 11, 2014, the Company, through the OP, entered into a credit agreement (the "Credit Agreement") relating to a credit facility (the "Credit Facility") that provided for aggregate revolving loan borrowings of up to $100.0 million (subject to borrowing base availability), with a $25.0 million swingline subfacility (but not to exceed 10.0% of the commitments then in effect) and a $5.0 million letter of credit subfacility. Through an uncommitted "accordion feature," the OP, subject to certain conditions, was able to increase commitments under the Credit Facility to up to $250.0 million.

On December 2, 2014, the Company, through the OP and certain subsidiaries of the Company acting as guarantors, entered into an unsecured amended and restated credit agreement (the “Amended Credit Agreement”) relating to a revolving credit facility (the “Amended Credit Facility”), which amends and restates the Credit Agreement. The Amended Credit Facility provides for aggregate revolving loan borrowings of up to $325.0 million (subject to unencumbered asset pool availability), with a $25.0 million swingline subfacility and a $20.0 million letter of credit subfacility, subject to certain conditions. Through an uncommitted “accordion feature,” the OP, subject to certain conditions, may increase commitments under the Amended Credit Facility to up to $575.0 million. Borrowings under the Amended Credit Facility, along with cash on hand from the Company’s IPO, are expected to be used to finance portfolio acquisitions and for general corporate purposes. As of June 30, 2015, the Company's unused borrowing capacity was $255.0 million, based on the assets governed by the Amended Credit Facility. As of June 30, 2015, the Company had $70.0 million outstanding under the Amended Credit Facility. As of December 31, 2014, the Company had no outstanding borrowings under the Amended Credit Facility.

BMO Capital Markets acted as joint bookrunner and joint lead arranger for the Amended Credit Facility and its affiliate, BMO Harris Bank N.A., is the administrative agent, letter of credit issuer, swingline lender and a lender thereunder. Regions Capital Markets and SunTrust Robinson Humphrey acted as joint bookrunners and joint lead arrangers for the Amended Credit Facility and its affiliate, Regions Bank and SunTrust Bank are the syndication agents and are lenders thereunder.

Borrowings under the Amended Credit Facility bear interest, at the OP's election, at either (i) the base rate (which is defined in the Amended Credit Agreement as the greatest of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.50%, and (c) LIBOR for a one month interest period plus 1.0%) plus an applicable spread ranging from 0.35% to 1.00%, depending on the Company's consolidated leverage ratio, or (ii) LIBOR for the applicable interest period plus an applicable spread ranging from 1.35% to 2.00%, depending on the Company's consolidated leverage ratio.

The Credit Facility required the Company to pay an unused fee per annum of 0.35% and 0.25%, if the unused balance of the Credit Facility exceeded, or was equal to or less than, 50.0% of the available facility, respectively. The Amended Credit Facility requires the Company to pay an unused fee per annum of 0.25% and 0.15%, if the unused balance of the Amended Credit Facility exceeds, or is equal to or less than, 50.0% of the available facility, respectively.

The Amended Credit Facility provides for quarterly interest payments for each base rate loan and periodic interest payments for each LIBOR loan, based upon the applicable interest period (though no longer than three months) with respect to such LIBOR loan, with all principal outstanding being due on the maturity date. The Amended Credit Facility will mature on December 2, 2018, provided that the OP, subject to certain conditions, may elect to extend the maturity date one year to December 2, 2019. The Amended Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty. In the event of a default, the lenders have the right to terminate their obligations under the Amended Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Company, certain of its subsidiaries and certain subsidiaries of the OP will guarantee the obligations under the Amended Credit Facility.

The Amended Credit Facility requires the Company to meet certain financial covenants, including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. As of June 30, 2015, the Company was in compliance with the financial covenants under the Amended Credit Agreement

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Subsequent Events (Narrative) (Details) $ in Millions	1 Months Ended	6 Months Ended
	Aug. 07, 2015 USD ($) property	Jun. 30, 2015 property	Jun. 30, 2014 property	Aug. 06, 2015
Subsequent Event [Line Items]
Number of properties purchased		8	3
Subsequent Event
Subsequent Event [Line Items]
Number of properties purchased	1
Contract purchase price | $	$ 28.2
Ownership interest in ARC Global				40.00%
AMH Holdings | Subsequent Event
Subsequent Event [Line Items]
Ownership interest in ARC Global				60.00%

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

The Company entered into lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter:

(In thousands)	Future Minimum Base Rent Payments
July 1, 2015 to December 31, 2015	$	249
2016	504
2017	514
2018	524
2019	535
Thereafter	9,923
	$	12,249

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Credit Facility (Narrative) (Details) - USD ($)			3 Months Ended
	Dec. 02, 2014	Jun. 11, 2014	Jun. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Credit facility				$ 70,000,000	$ 0
Operating Partnership
Line of Credit Facility [Line Items]
Additional borrowing capacity		$ 250,000,000
Unused capacity commitment fee		0.35%
Unused capacity commitment fee percentage less than 50%		0.25%
Operating Partnership | Swing Line
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 25,000,000
Maximum amount of swing line commitment of total commitment		10.00%
Operating Partnership | Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 100,000,000
Operating Partnership | Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 5,000,000
Operating Partnership Amended Credit Facility
Line of Credit Facility [Line Items]
Additional borrowing capacity	$ 575,000,000
Unused borrowing capacity amount				$ 255,000,000
Credit facility					$ 0
Minimum use percentage	50.00%	50.00%
Unused borrowing capacity fee			$ 19,000
Operating Partnership Amended Credit Facility | Net Worth Greater Than $500 Million
Line of Credit Facility [Line Items]
Unused capacity commitment fee	0.25%
Unused capacity commitment fee percentage less than 50%	0.15%
Operating Partnership Amended Credit Facility | Line of Credit Facility, Interest Rate, Option One | Federal Funds Effective Rate
Line of Credit Facility [Line Items]
Variable interest rate	0.50%
Operating Partnership Amended Credit Facility | Line of Credit Facility, Interest Rate, Option One | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	1.00%
Operating Partnership Amended Credit Facility | Minimum | Line of Credit Facility, Interest Rate, Option One | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	0.35%
Operating Partnership Amended Credit Facility | Minimum | Line of Credit Facility, Interest Rate, Option Two | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	1.35%
Operating Partnership Amended Credit Facility | Maximum | Line of Credit Facility, Interest Rate, Option One | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	1.00%
Operating Partnership Amended Credit Facility | Maximum | Line of Credit Facility, Interest Rate, Option Two | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	2.00%
Operating Partnership Amended Credit Facility | Swing Line
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 25,000,000
Operating Partnership Amended Credit Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	325,000,000.0
Operating Partnership Amended Credit Facility | Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 20,000,000

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Subsequent Events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have not been any events that have occurred that would require adjustments to, or disclosures in, the consolidated financial statements except for the following disclosures:

Acquisitions

From July 1, 2015 to August 12, 2015, the Company acquired one property with a contract purchase price of $28.2 million, exclusive of closing costs.

Sponsor Transactions

On August 6, 2015, the Parent of the Sponsor entered into a Transaction Agreement (the “Transaction Agreement”) with AMH Holdings (Cayman), L.P., a Cayman Islands exempted limited partnership (“AMH”), and an affiliate of Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”), and a newly formed entity, AR Global Investments, LLC, a Delaware limited liability company (“AR Global”). The Transaction Agreement provides that the Parent of the Sponsor will transfer to AR Global substantially all of the assets of its ongoing asset management business (including equity interests in its subsidiaries). AMH will contribute money and other assets to AR Global. Following the consummation of the transaction contemplated by the Transaction Agreement, AMH will hold a 60% interest in AR Global and the Parent of the Sponsor will hold a 40% interest in AR Global. The business and affairs of AR Global will be overseen by a board of managers comprised of ten members, six of which will be appointed by AMH and four of which will be appointed by the Parent of the Sponsor. The Advisor is currently owned indirectly by the Parent of the Sponsor and following the transaction will be owned indirectly by AR Global.

Also on August 6, 2015, RCS Capital Corporation (“RCS Capital”), the parent of the Dealer Manager and a company under common control with the Parent of the Sponsor, announced that it has entered into an agreement with an affiliate of Apollo to sell RCS Capital’s Wholesale Distribution division, including the Dealer Manager, and certain related entities (collectively, the "Transactions"). Upon completion of the transaction, the Dealer Manager will continue to operate as a stand-alone entity within AR Global. The current management team of the Dealer Manager, which is led by William E. Dwyer III, will continue to operate the day-to-day functions of the business.

The Transactions are subject to customary closing conditions and are expected to close in 2015. Upon consummation of the Transactions, the Sponsor and Advisor are expected to continue to serve in their respective capacities to the Company. The Company’s independent directors unanimously endorsed the Transactions.