EX-99.3 3 v332546_ex99-3.htm EXHIBIT 99.3

THE COMPANIES

American Realty Capital Properties, Inc. and Tiger Acquisition, LLC

American Realty Capital Properties, Inc., or ARCP, is a Maryland corporation incorporated in December 2010 that qualifies as a real estate investment trust, or REIT, commencing with its initial taxable year ended December 31, 2011. ARCP was formed to acquire and own single-tenant, freestanding commercial real estate primarily subject to medium-term net leases with high credit quality tenants. In July 2011, ARCP commenced an initial public offering on a “reasonable best efforts” basis, which closed on September 6, 2011. ARCP common stock began trading on the NASDAQ Capital Market under the symbol “ARCP” on September 7, 2011.

Substantially all of ARCP’s business is conducted through ARC Properties Operating Partnership, L.P., or the ARCP OP, of which ARCP is the sole general partner.

As of September 30, 2012, excluding one vacant property classified as held for sale, ARCP owned 124 properties consisting of 2.2 million square feet, 100% leased with a weighted average remaining lease term of 6.8 years. In constructing its portfolio, ARCP is committed to diversification (industry, tenant and geography). As of September 30, 2012, rental revenues derived from investment grade tenants and tenants affiliated with investment grade entities as determined by a major rating agency approximated 99% (the rating of each parent company has been attributed to its wholly owned subsidiary for purposes of this disclosure). ARCP’s strategy encompasses receiving the majority of its revenue from investment grade tenants as ARCP further acquires properties and enters into (or assumes) medium-term lease arrangements.

In connection with the merger, ARCP will internalize certain property level management and leasing services and accounting activities, and in connection with such internalization, American Realty Capital Advisors III, LLC, or the ARCT III Advisor, will sell to the ARCP OP certain furniture, fixtures, equipment and other assets used by the ARCT III Advisor in connection with managing the property-level business and operations and accounting functions of American Realty Capital Trust III, Inc., or ARCT III, and American Realty Capital Operating Partnership III, L.P., or the ARCT III OP.

ARCP’s principal executive offices are located at 405 Park Avenue, 15th Floor, New York, New York 10022, and its telephone number is (212) 415-6500.

The entity into which ARCT III will merge, or the Merger Sub, is a Delaware limited liability company and a direct wholly owned subsidiary of ARCP that was formed for the purpose of entering into the merger agreement.

American Realty Capital Trust III, Inc.

ARCT III is a Maryland corporation incorporated in October 2010 that qualifies as a REIT commencing with its initial taxable year ended December 31, 2011. ARCT III is a non-traded REIT. ARCT III was formed to acquire a diversified portfolio of commercial real estate, which consists primarily of freestanding single tenant properties net leased to credit worthy tenants. In March 2011, ARCT III commenced an initial public offering on a “reasonable best efforts” basis to sell up to 150.0 million shares of common stock, excluding 25.0 million shares issuable pursuant to a distribution reinvestment plan, offered at a price of $10.00 per share, subject to certain volume and other discounts, which we refer to as the ARCT III IPO. In September 2011, ARCT III commenced real estate operations. The ARCT III IPO closed in September 2012. As of September 30, 2012, ARCT III had 175.4 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to ARCT III’s distribution reinvestment plan.

Substantially all of ARCT III’s business is conducted through the ARCT III OP, of which ARCT III is the sole general partner.

As of September 30, 2012, ARCT III owned 382 properties comprised of 7.9 million square feet, which were 100% leased with a weighted average remaining lease term of 12.7 years. In constructing the portfolio, ARCT III has been committed to diversification by industry, tenant and geography.

ARCT III’s principal executive offices are located at 405 Park Avenue, 15th Floor, New York, New York 10022, and its telephone number is (212) 415-6500.

1

 
 

ARCT III and ARCP each were sponsored, directly or indirectly, by AR Capital, LLC, or ARC. The ARCT III Advisor is a Delaware limited liability company wholly owned by ARC. ARC Properties Advisors, LLC, or the ARCP Manager, is a Delaware limited liability company wholly owned by ARC and is ARCP’s external manager. ARC and its affiliates, including the ARCT III Advisor and ARCP Manager, provide investment, management and advisory services, as well as certain acquisition and debt capital services to ARCT III and ARCP, as applicable. ARCT III and ARCP pay management fees and certain other fees to, and reimburse certain expenses of, the ARCT III Advisor and ARCP Manager, respectively. Affiliates of ARC also provide similar services for American Realty Capital New York Recovery REIT, Inc., Phillips Edison — ARC Shopping Center REIT, Inc., American Realty Capital — Retail Centers of America, Inc., American Realty Capital Healthcare Trust, Inc., American Realty Capital Daily Net Asset Value Trust, Inc., American Realty Capital Global Trust, Inc., American Realty Capital Healthcare Trust II, Inc., a development stage REIT, and American Realty Capital Trust IV, Inc. Certain of these ARC-sponsored REITs have investment strategies substantially similar to those of ARCT III, ARCP and the combined company.

The Combined Company

ARCT III’s and ARCP’s properties consist primarily of freestanding single-tenant commercial properties leased to investment grade (as determined by major credit rating agencies) and other creditworthy tenants that are diversified by tenant, industry and geography. Both ARCP’s and ARCT III’s portfolios of real estate investment properties (excluding one vacant property held by ARCP) were 100% leased as of September 30, 2012. ARCT III’s portfolio focuses on entering into (or assuming) long-term lease arrangements and targets assets at or below replacement cost, while ARCP focuses on entering into (or assuming) medium-term leases and purchasing properties with vintage in-place rents at valuations significantly below replacement cost. As of September 30, 2012, ARCT III owned 382 properties consisting of 7.9 million square feet, which were 100% leased with a weighted average remaining lease term of 12.7 years. As of September 30, 2012, rental revenues derived by ARCT III from investment grade tenants and tenants affiliated with investment grade entities as determined by a major rating agency approximated 80% (the rating of each parent company has been attributed to its wholly owned subsidiary for purposes of this disclosure). As of September 30, 2012, excluding one vacant property classified as held for sale, ARCP owned 124 properties consisting of 2.2 million square feet, which were 100% leased with a weighted average remaining lease term of 6.8 years. As of September 30, 2012, rental revenues derived by ARCP from investment grade tenants and tenants affiliated with investment grade entities as determined by a major rating agency approximated 99% (the rating of each parent company has been attributed to its wholly owned subsidiary for purposes of this disclosure). The surviving entity in the merger will own a portfolio that that uniquely combines ARCT III’s portfolio of properties with stable income from high credit quality tenants, with ARCP’s portfolio, which has substantial growth opportunities. The long-term business plan for the combined company contemplates the combined portfolio consisting of approximately 70% long-term leases and 30% medium-term leases, with an average remaining lease term of 10 to 12 years. The combined portfolio is additionally expected to develop growth potential from below market leases.

After the consummation of the merger, the combined company will have access to up to $1.2 billion of financing, consisting of a $1.0 billion credit facility (under which ARCT III has obtained commitments for $650.0 million, and which contains an “accordion” feature to allow ARCT III, under certain circumstances, to increase the commitments thereunder by $350.0 million), borrowings under which will be subject to borrowing base availability, and a $200.0 million bridge facility (of which $200.0 million is committed but subject to reduction to the extent the committing lender provides a commitment under the credit facility described above).

2

 
 

Property Portfolio Information

At September 30, 2012, ARCP owned a diversified portfolio:

• of 124 properties, excluding one vacant property classified as held for sale;
• with an occupancy rate of 100%;
• leased to 14 different retail and other commercial enterprises doing business in 10 separate industries;
• located in 24 states;
• with approximately 2.2 million square feet of leasable space; and
• with an average leasable space per property of approximately 17,700 square feet.

At September 30, 2012, ARCT III owned a diversified portfolio:

• of 382 properties;
• with an occupancy rate of 100%;
• leased to 27 different retail and other commercial enterprises doing business in 14 separate industries;
• located in 42 states;
• with approximately 7.9 million square feet of leasable space; and
• with an average leasable space per property of approximately 20,600 square feet.

Combined Property Portfolio

As of September 30, 2012, ARCP and ARCT III, on a pro forma basis, owned a portfolio with the following characteristics:

• 506 properties, including 124 ARCP properties at September 30, 2012 and 382 ARCT III properties at September 30, 2012;
• occupancy rate of 100%;
• leased to 33 different retail and other commercial enterprises doing business in 17 separate industries;
• located in 43 states;
• approximately 10.1 million square feet of leasable space; and
• an average leasable space per property of approximately 19,900 square feet.

The following table lists tenants whose annualized rental income on a straight-line basis represent greater than 10% of the total annualized rental income on a straight-line basis for the pro forma portfolio properties of ARCP and ARCT III as of September 30, 2012.

 
Tenant   September 30, 2012
Dollar General     17.2 %
FedEx     14.3 %
Citizens Bank     13.7 % 
     

3

 
 

Set forth below are summary financial statements of the parent of the lessee of the FedEx properties included in ARCP’s and ARCT III’s portfolio on a pro forma basis as described above. FedEx Corporation currently files its financial statements in reports filed with the U.S. Securities and Exchange Commission, or the Commission, and the following summary financial data regarding FedEx Corporation are taken from such filings:

       
  Six Months
Ended
November 30,
2012
(Unaudited)		   Year Ended
(Amounts in Millions)   May 31, 2012
(Audited)		   May 31, 2011
(Audited)		   May 31, 2010
(Audited)
Statements of Operations Data
                                    
Revenues   $ 21,899     $ 42,680     $ 39,304     $ 34,734  
Operating income     1,460       3,186       2,378       1,998  
Net income     897       2,032       1,452       1,894  

       
(Amounts in Millions)   November 30,
2012
(Unaudited)		   May 31,
2012
(Audited)		   May 31,
2011
(Audited)		   May 31,
2010
(Audited)
Consolidated Condensed Balance Sheets
                                    
Total assets   $ 31,312     $ 29,903     $ 27,385     $ 24,902  
Long-term debt     2,241       1,250       1,667       1,668  
Total common stockholders’ investment     15,543       14,727       15,220       13,811  

Set forth below are summary financial statements of the parent guarantor of the Dollar General properties included in ARCP's and ARCT III's portfolio on a pro forma basis as described above. Dollar General Corporation currently files its financial statements in reports filed with the Commission, and the following summary financial data regarding Dollar General Corporation are taken from such filings:

       
  For the 39
Weeks Ended
November 2,
2012
(Unaudited)		   Fiscal Year Ended
(Amounts in Thousands)   February 3,
2012
(Audited)		   January 28,
2011
(Audited)		   January 29,
2010
(Audited)
Consolidated Condensed Statements of Income
                                    
Net sales   $ 11,814,507     $ 14,807,188     $ 13,035,000     $ 11,796,380  
Operating profit     1,132,927       1,490,804       1,274,065       953,258  
Net income     635,240       766,685       627,857       339,442  

       
(Amounts in Thousands)   November 2,
2012
(Unaudited)		   February 3,
2012
(Audited)		   January 28,
2011
(Audited)		   January 29,
2010
(Audited)
Consolidated Condensed Balance Sheets
                                    
Total assets   $ 10,273,677     $ 9,688,520     $ 9,546,222     $ 8,863,519  
Long-term obligations     3,023,367       2,617,891       3,287,070       3,399,715  
Total liabilities     5,538,815       5,020,025       5,491,743       5,473,221  
Total shareholders’ equity     4,734,862       4,668,495       4,054,479       3,390,298  

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Set forth below are summary financial statements of the parent of the lessee of the Citizens Bank properties included in ARCP's and ARCT III's portfolio on a pro forma basis as described above. RBS Citizens, N.A. currently makes its financial statements available on the Federal Deposit Insurance Corporation website, and the following summary financial data regarding RBS Citizens, N.A. are taken from such filings:

       
  Nine Months
Ended
September 30,
2012
(Unaudited)		   Fiscal Year Ended
(Amounts in millions)   December 31,
2011
(Audited)		   December 31,
2010
(Audited)		   December 31,
2009
(Audited)
Consolidated Condensed Statements of Income
                                    
Total interest income   $ 4,873     $ 3,484     $ 4,008     $ 4,868  
Net interest income after provision for credit losses     3,523       1,230       1,289       494  
Net income (loss)     843       345       (39 )      (600 ) 

       
(Amounts in millions)   September 30,
2012
(Unaudited)		   December 31,
2011
(Audited)		   December 31,
2010
(Audited)		   December 31,
2009
(Audited)
Consolidated Condensed Balance Sheets
                                    
Total assets   $ 107,214     $ 106,941     $ 107,836     $ 116,921  
Total liabilities     88,455       88,830       90,920       100,321  
Total shareholders’ equity     18,759       18,111       16,916       16,600  

All of the following property portfolio information is provided to illustrate the combined property portfolio of ARCP and ARCT III post-merger. This information includes an illustration of the combined portfolio by industry, property type and geography, as well as a combined lease expiration schedule. The ARCP information represents quarterly information for the 124 properties owned at September 30, 2012. The ARCT III information represents quarterly information for the 382 properties owned at September 30, 2012.

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Industry Diversification

The following table sets forth certain information regarding the property portfolios classified according to the business of the respective tenants, expressed as a percentage of total rental revenue:

Percentage of Rental Revenue

     
Industries   ARCP(1)   ARCT III(2)   Combined Total
Auto Retail     2.3 %      2.6 %      2.5 % 
Auto Services     —       0.6 %      0.5 % 
Consumer Goods     7.9 %      —       1.7 % 
Consumer Products     —       19.7 %      15.6 % 
Discount Retail     8.0 %      23.2 %      20.0 % 
Freight     5.5 %      16.7 %      14.3 % 
Gas/Convenience     —       1.2 %      0.9 % 
Government Services     11.4 %      3.1 %      4.8 % 
Healthcare     —       4.5 %      3.5 % 
Home Maintenance     11.2 %      —       2.4 % 
Medical Office     —       1.9 %      1.5 % 
Pharmacy     5.3 %      9.6 %      8.7 % 
Restaurant     —       5.0 %      4.0 % 
Retail Banking     33.6 %      8.4 %      13.8 % 
Specialty Retail     12.6 %      2.3 %      4.4 % 
Storage Facility     2.2 %      —       0.5 % 
Supermarket     —       1.2 %      0.9 % 
Totals     100.0 %      100.0 %      100.0 % 

(1) Includes annualized rental revenue for all properties owned by ARCP at September 30, 2012.
(2) Includes annualized rental revenue for all properties owned by ARCT III at September 30, 2012.

Property Type Diversification

The following table sets forth certain property type information regarding the property portfolios (dollars in thousands):

ARCP

       
Property Type   Number of Properties   Approximate Leasable Square Feet   Quarterly Rental Revenue(1)   Percentage of Rental Revenue
Retail     108       749,800     $ 2,520       50.1 % 
Distribution     10       1,218,500       1,826       36.3  
Office     5       103,900       573       11.4  
Storage     1       126,700       111       2.2  
Totals     124       2,198,900     $ 5,030       100.0 % 

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ARCT III

       
Property Type   Number of Properties(2)   Approximate Leasable Square Feet   Quarterly Rental Revenue(2)   Percentage of Rental Revenue
Retail     343       2,732,800     $ 9,929       53.4 % 
Distribution     24       4,886,500       7,657       41.1  
Office     15       239,800       1,024       5.5  
Totals     382       7,859,100     $ 18,610       100.0 % 

Combined

       
Property Type   Number of Properties(2)   Approximate Leasable Square Feet   Total Quarterly Rental Revenue   Percentage of Total Quarterly Rental Revenue
Retail     451       3,482,600     $ 12,449       52.7 % 
Distribution     34       6,105,000       9,483       40.1  
Office     20       343,700       1,597       6.7  
Storage     1       126,700       111       0.5  
Totals     506       10,058,000     $ 23,640       100.0 % 

(1) Includes quarterly rental revenue for all properties owned by ARCP at September 30, 2012.
(2) Includes quarterly rental revenue for all properties owned by ARCT III at September 30, 2012.

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Geographic Diversification

The following table sets forth certain state-by-state information regarding the property portfolios (dollars in thousands):

ARCP

         
State   Number of Properties   Percent Leased   Approximate Leasable Square Feet   Quarterly Rental Revenue (1)   Percentage of Rental Revenue
Alabama     1       100 %      39,500     $ 151       3.0 % 
Alaska     —       —       —       —       —  
Arizona     —       —       —       —       —  
Arkansas     5       100       43,800       45       0.9  
California     —       —       —       —       —  
Colorado     —       —       —       —       —  
Connecticut     2       100       5,600       31       0.6  
Delaware     1       100       4,600       23       0.4  
Florida     1       100       8,900       14       0.3  
Georgia     2       100       20,900       83       1.7  
Hawaii     —       —       —       —       —  
Idaho     —       —       —       —       —  
Illinois     10       100       77,900       302       6.0  
Indiana     1       100       20,200       85       1.7  
Iowa     1       100       553,000       588       11.7  
Kansas     1       100       7,500       7       0.1  
Kentucky     1       100       12,100       30       0.6  
Louisiana     —       —       —       —       —  
Maine     —       —       —       —       —  
Maryland     —       —       —       —       —  
Massachusetts     —       —       —       —       —  
Michigan     22       100       125,000       712       14.2  
Minnesota     —       —       —       —       —  
Mississippi     —       —       —       —       —  
Missouri     26       100       224,500       304       6.0  
Montana     —       —       —       —       —  
Nebraska     —       —       —       —       —  
Nevada     —       —       —       —       —  
New Hampshire     2       100       6,900       28       0.5  
New Jersey     1       100       32,000       241       4.8  
New Mexico     —       —       —       —       —  
New York     13       100       87,000       526       10.5  
North Carolina     —       —       —       —       —  
North Dakota     —       —       —       —       —  
Ohio     18       100       220,800       595       11.8  
Oklahoma     2       100       18,000       19       0.4  
Oregon     —       —       —       —       —  
Pennsylvania     5       100       62,600       266       5.3  
Rhode Island     —       —       —       —       —  
South Carolina     2       100       480,000       626       12.4  
South Dakota     —       —       —       —       —  
Tennessee     1       100       10,700       37       0.7  
Texas     2       100       113,600       204       4.1  
Utah     —       —       —       —       —  
Vermont     3       100       12,500       59       1.2  
Virginia     1       100       11,300       54       1.1  
Washington     —       —       —       —       —  
West Virginia     —       —       —       —       —  
Wisconsin     —       —       —       —       —  
Wyoming     —       —       —       —       —  
Totals/Average     124       100 %      2,198,900     $ 5,030       100.0 % 

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ARCT III

         
State   Number of Properties   Percent Leased   Approximate Leasable Square Feet   Quarterly Rental Revenue(2)   Percentage of Rental Revenue
Alabama     12       100 %      91,500     $ 378       2.0 % 
Alaska     —       —       —       —       —  
Arizona     2       100       23,700       102       0.6  
Arkansas     3       100       19,100       137       0.7  
California     2       100       1,050,700       1,261       6.8  
Colorado     3       100       189,800       736       4.0  
Connecticut     7       100       28,700       238       1.3  
Delaware     2       100       4,300       28       0.2  
Florida     9       100       58,600       317       1.7  
Georgia     11       100       35,200       324       1.7  
Hawaii     —       —       —       —       —  
Idaho     2       100       43,300       165       0.9  
Illinois     13       100       471,700       1,042       5.6  
Indiana     6       100       110,600       320       1.7  
Iowa     4       100       39,300       88       0.5  
Kansas     13       100       769,200       679       3.7  
Kentucky     4       100       71,600       231       1.2  
Louisiana     18       100       181,600       521       2.8  
Maine     —       —       —       —       —  
Maryland     —       —       —       —       —  
Massachusetts     13       100       107,700       472       2.5  
Michigan     18       100       234,900       844       4.5  
Minnesota     1       100       9,000       21       0.1  
Mississippi     26       100       1,305,300       1,649       8.9  
Missouri     38       100       579,700       1,693       9.1  
Montana     1       100       45,800       174       0.9  
Nebraska     1       100       8,100       20       0.1  
Nevada     6       100       59,900       342       1.8  
New Hampshire     4       100       16,100       108       0.6  
New Jersey     5       100       47,700       378       2.0  
New Mexico     3       100       22,500       81       0.4  
New York     3       100       195,600       1,089       5.9  
North Carolina     15       100       175,000       577       3.1  
North Dakota     3       100       26,400       72       0.4  
Ohio     21       100       704,500       944       5.1  
Oklahoma     10       100       215,600       397       2.1  
Oregon     —       —       —       —       —  
Pennsylvania     30       100       111,900       697       3.8  
Rhode Island     4       100       14,700       112       0.6  
South Carolina     9       100       86,000       488       2.6  
South Dakota     1       100       9,200       22       0.1  
Tennessee     8       100       148,500       345       1.9  
Texas     39       100       418,200       1,092       5.9  
Utah     —       —       —       —       —  
Vermont     —       —       —       —       —  
Virginia     6       100       61,800       192       1.0  
Washington     2       100       25,100       96       0.5  
West Virginia     1       100       13,300       82       0.4  
Wisconsin     3       100       27,700       56       0.3  
Wyoming     —       —       —       —       —  
Totals/Average     382       100 %      7,859,100     $ 18,610       100.0 % 

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Combined

         
State   Number of Properties   Percent Leased   Approximate Leasable Square Feet   Total Quarterly Rental Revenue(1)(2)   Percentage of Total Rental Revenue
Alabama     13       100 %      131,000     $ 529       2.2 % 
Alaska     —       —       —       —       —  
Arizona     2       100       23,700       102       0.4  
Arkansas     8       100       62,900       182       0.8  
California     2       100       1,050,700       1,261       5.3  
Colorado     3       100       189,800       736       3.1  
Connecticut     9       100       34,300       269       1.1  
Delaware     3       100       8,900       51       0.2  
Florida     10       100       67,500       331       1.4  
Georgia     13       100       56,100       407       1.7  
Hawaii     —       —       —       —       —  
Idaho     2       100       43,300       165       0.7  
Illinois     23       100       549,600       1,344       5.7  
Indiana     7       100       130,800       405       1.7  
Iowa     5       100       592,300       676       2.9  
Kansas     14       100       776,700       686       2.9  
Kentucky     5       100       83,700       261       1.1  
Louisiana     18       100       181,600       521       2.2  
Maine     —       —       —       —       —  
Maryland     —       —       —       —       —  
Massachusetts     13       100       107,700       472       2.0  
Michigan     40       100       359,900       1,556       6.6  
Minnesota     1       100       9,000       21       0.1  
Mississippi     26       100       1,305,300       1,649       7.0  
Missouri     64       100       804,200       1,997       8.4  
Montana     1       100       45,800       174       0.7  
Nebraska     1       100       8,100       20       0.1  
Nevada     6       100       59,900       342       1.5  
New Hampshire     6       100       23,000       136       0.6  
New Jersey     6       100       79,700       619       2.6  
New Mexico     3       100       22,500       81       0.4  
New York     16       100       282,600       1,615       6.8  
North Carolina     15       100       175,000       577       2.4  
North Dakota     3       100       26,400       72       0.3  
Ohio     39       100       925,300       1,539       6.5  
Oklahoma     12       100       233,600       416       1.8  
Oregon     —       —       —       —       —  
Pennsylvania     35       100       174,500       963       4.1  
Rhode Island     4       100       14,700       112       0.5  
South Carolina     11       100       566,000       1,114       4.7  
South Dakota     1       100       9,200       22       0.1  
Tennessee     9       100       159,200       382       1.6  
Texas     41       100       531,800       1,296       5.5  
Utah     —       —       —       —       —  
Vermont     3       100       12,500       59       0.3  
Virginia     7       100       73,100       246       1.0  
Washington     2       100       25,100       96       0.4  
West Virginia     1       100       13,300       82       0.4  
Wisconsin     3       100       27,700       56       0.2  
Wyoming     —       —       —       —       —  
Totals/Average     506       100 %      10,058,000     $ 23,640       100.0 % 

(1) Includes quarterly rental revenue for all properties owned by ARCP at September 30, 2012.
(2) Includes quarterly rental revenue for all properties owned by ARCT III at September 30, 2012.

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Lease Expirations

The following table sets forth certain information regarding the property portfolios and the timing of the lease term expirations (excluding rights to extend a lease at the option of the tenant) on net leased, single-tenant properties (dollars in thousands):

           
  ARCP(1)
Year   Number of Leases Expiring   Approx. Leasable
Sq. Feet		   Quarterly
Rental
Revenue		   Percentage of Quarterly Rental Revenue   Annualized Rental Revenue(3)   Percentage of Annualized Rental Revenue
2012     —       —     $ —       — %    $ —       — % 
2013     —       —       —       —       —       —  
2014     3       23,800       23       0.5       91       0.5  
2015     14       130,700       206       4.1       823       4.1  
2016     8       74,900       170       3.4       680       3.4  
2017     38       470,400       1,218       24.2       4,873       24.2  
2018     28       794,500       1,697       33.7       6,789       33.7  
2019     20       132,100       858       17.1       3,432       17.1  
2020     2       19,100       62       1.2       248       1.2  
2021     5       42,400       141       2.8       566       2.8  
2022     —       —       —       —       —       —  
2023     —       —       —       —       —       —  
2024     2       18,100       36       0.7       144       0.7  
2025     3       27,300       54       1.1       216       1.1  
2026     —       —       —       —       —       —  
2027 – 2038     1       465,000       565       11.2       2,258       11.2  
Totals     124       2,198,900     $ 5,030       100.0 %    $ 20,120       100.0 % 

           
  ARCT III(2)
Year   Number of Leases Expiring   Approx. Leasable
Sq. Feet		   Quarterly
Rental
Revenue		   Percentage of Quarterly Rental Revenue   Annualized Rental Revenue(3)   Percentage of Annualized Rental Revenue
2012     —       —     $ —       — %    $ —       — % 
2013     —       —       —       —       —       —  
2014     —       —       —       —       —       —  
2015     —       —       —       —       —       —  
2016     —       —       —       —       —       —  
2017     —       —       —       —       —       —  
2018     2       11,400       50       0.3       200       0.3  
2019     3       23,300       70       0.4       280       0.4  
2020     12       76,500       479       2.6       1,916       2.6  
2021     22       726,500       2,060       11.1       8,240       11.1  
2022     64       1,739,200       2,547       13.7       10,187       13.7  
2023     15       1,748,700       2,763       14.8       11,051       14.8  
2024     17       1,178,500       1,881       10.1       7,525       10.1  
2025     65       473,400       1,714       9.2       6,856       9.2  
2026     50       511,000       1,511       8.1       6,046       8.1  
2027 – 2038     132       1,370,600       5,535       29.7       22,139       29.7  
Totals     382       7,859,100     $ 18,610       100.0 %    $ 74,440       100.0 % 

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  Combined(1)(2)
Year   Number of Leases Expiring   Approx. Leasable
Sq. Feet		   Quarterly
Rental
Revenue		   Percentage of Quarterly Rental Revenue   Annualized Rental Revenue(3)   Percentage of Annualized Rental Revenue
2012     —       —     $ —       — %    $ —       — % 
2013     —       —       —       —       —       —  
2014     3       23,800       23       0.1       91       0.1  
2015     14       130,700       206       0.9       823       0.9  
2016     8       74,900       170       0.7       680       0.7  
2017     38       470,400       1,218       5.1       4,873       5.1  
2018     30       805,900       1,747       7.4       6,989       7.4  
2019     23       155,400       928       3.9       3,712       3.9  
2020     14       95,600       541       2.3       2,164       2.3  
2021     27       768,900       2,201       9.3       8,806       9.3  
2022     64       1,739,200       2,547       10.8       10,187       10.8  
2023     15       1,748,700       2,763       11.7       11,051       11.7  
2024     19       1,196,600       1,917       8.1       7,669       8.1  
2025     68       500,700       1,768       7.5       7,072       7.5  
2026     50       511,000       1,511       6.4       6,046       6.4  
2027 – 2038     133       1,836,200       6,100       25.8       24,397       25.8  
Totals     506       10,058,000     $ 23,640       100.0 %    $ 94,560       100.0 % 

(1) The ARCP information represents rental revenue for the properties owned at September 30, 2012.
(2) The ARCT III information represents rental revenue for the properties owned at September 30, 2012.
(3) Annualized rental revenue for net leases is rental revenue annualized on a straight-line basis for properties held as of September 30, 2012, which includes the effect of tenant concessions such as free rent, as applicable. For modified gross leased properties, the amount is rental income on a straight-line basis as of September 30, 2012, which includes the effect of tenant concessions such as free rent, as applicable, plus operating expense reimbursement revenue less property operating expenses.

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