The following tables present the combined impact of all changes, as described above, to the applicable line items in the consolidated financial statements to the Company’s previously reported consolidated financial statements for the years ended December 31, 2012 and 2013 (in thousands, except share amounts):

2012 Restated Consolidated Balance Sheet (Adjusted Line Items)


	December 31, 2012
	As Previously Reported ⁽¹⁾			Restatement Adjustments			As Restated
Accumulated deficit	$	(124,570	)	$	284		$	(124,286	)

Total stockholders’ equity	$	1,652,295		$	284		$	1,652,579
Non-controlling interests		16,465			(284	)		16,181

Total equity	$	1,668,760		$	—		$	1,668,760

(1)	These financial figures have been recast in applying the carryover basis of accounting to include the effects of the merger with ARCT IV.

2012 Restated Consolidated Statement of Operations (Adjusted Line Items)


	Year Ended December 31, 2012
	As Previously Reported ⁽¹⁾			Restatement Adjustments		As Restated
Loss from continuing operations	$	(41,492	)	$	—	$	(41,492	)
Net loss from continuing operations attributable to non-controlling interests		255			276		531

Net loss from continuing operations attributable to stockholders	$	(41,237	)	$	276	$	(40,961	)


Net loss from discontinued operations	$	(745	)	$	—	$	(745	)
Net loss from discontinued operations attributable to non-controlling interest		46			8		54

Net loss from discontinued operations attributable to stockholders	$	(699	)	$	8	$	(691	)


Net loss	$	(42,237	)	$	—	$	(42,237	)
Net loss attributable to non-controlling interests		301			284		585

Net loss attributable to stockholders	$	(41,936	)	$	284	$	(41,652	)

(1)	These financial figures have been recast in applying the carryover basis of accounting to include the effects of the merger with ARCT IV.

2013 Restated Consolidated Balance Sheet


	December 31, 2013
	As Previously Reported ⁽¹⁾			Reclassifications			Restatement Adjustments			As Restated
ASSETS
Real estate investments, at cost:
Land	$	1,379,453		$	—		$	855		$	1,380,308
Buildings, fixtures and improvements		5,291,031			—			6,369			5,297,400
Land and construction in progress		21,839			—			—			21,839
Acquired intangible lease assets		758,376			382			837			759,595

Total real estate investments, at cost		7,450,699			382			8,061			7,459,142
Less: accumulated depreciation and amortization		(267,352	)		(155	)		229			(267,278	)

Total real estate investments, net		7,183,347			227			8,290			7,191,864
Cash and cash equivalents		52,725			—			—			52,725
Investment in direct financing leases, net		66,112			—			—			66,112
Investment securities, at fair value		62,067			—			—			62,067
Loans held for investment, net		26,279			—			—			26,279
Derivative assets, at fair value		9,189			—			—			9,189
Restricted cash		35,921			—			—			35,921
Prepaid expenses and other assets ⁽²⁾		187,930			—			(1,204	)		186,726
Goodwill		102,419			—			(9,630	)		92,789
Deferred costs, net		81,311			(227	)		3,662			84,746
Assets held for sale		679			—			(14	)		665

Total assets	$	7,807,979		$	—		$	1,104		$	7,809,083


LIABILITIES AND EQUITY
Mortgage notes payable, net	$	1,301,114		$	—		$	—		$	1,301,114
Convertible debt, net		972,490			—			—			972,490
Senior corporate credit facilities		1,819,800			—			—			1,819,800
Secured credit facility		150,000			—			—			150,000
Other debt		104,804			—			—			104,804
Below-market lease liabilities, net		77,789			—			(620	)		77,169
Derivative liabilities, at fair value		18,455			—			—			18,455
Accounts payable and accrued expenses		808,900			—			(78,329	)		730,571
Deferred rent and other liabilities		21,816			—			—			21,816
Distributions payable		10,278			—			625			10,903
Due to affiliates ⁽³⁾		—			—			103,434			103,434

Total liabilities		5,285,446			—			25,110			5,310,556


Series D Preferred Stock, $0.01 par value, 21,735,008 shares authorized (part of 100,000,000 aggregate preferred shares authorized) and 21,735,008 shares issued and outstanding at December 31, 2013		269,299			—			—			269,299

Preferred stock (excluding Series D Preferred Stock), $0.01 par value, 100,000,000 shares authorized and 42,199,547 shares issued and outstanding at December 31, 2013		422			—			—			422
Common stock, $0.01 par value, 1,500,000,000 shares authorized and 239,234,725 issued and outstanding at December 31, 2013		2,392			—			—			2,392
Additional paid-in capital		2,939,287			—			1,620			2,940,907
Accumulated other comprehensive income (loss)		7,666			—			—			7,666
Accumulated deficit		(864,516	)		—			(13,441	)		(877,957	)

Total stockholders’ equity		2,085,251			—			(11,821	)		2,073,430
Non-controlling interests		167,983			—			(12,185	)		155,798

Total equity		2,253,234			—			(24,006	)		2,229,228

Total liabilities and equity	$	7,807,979		$	—		$	1,104		$	7,809,083

(1)	These financial statements have been recast in applying the carryover basis of accounting to include the effects of the merger with ARCT IV.

(2)

Certain line item captions have been updated since the recasted filing, which applied the carryover basis of accounting to include the effects of the merger with ARCT IV. This line item caption has been updated to prepaid expenses and other assets, net in the accompanying consolidated balance sheets.

(3)	This line item caption has been added and is included in the accompanying consolidated balance sheets.

2013 Restated Statement of Operations


	Year Ended December 31, 2013
	As Previously Reported ⁽¹⁾			Reclassifications			Restatement Adjustments			As Restated
Revenues:
Rental income	$	309,839		$	669		$	—		$	310,508
Direct financing lease income		2,244			—			—			2,244
Operating expense reimbursements		17,795			(669	)		(555	)		16,571

Total revenues		329,878			—			(555	)		329,323

Operating expenses:
Acquisition related		76,136			—			(23	)		76,113
Merger and other transaction related ⁽²⁾		278,319			—			(67,776	)		210,543
Property operating		23,616			—			—			23,616
Operating fees to affiliate ⁽³⁾		5,654			—			11,808			17,462
General and administrative		10,645			46			112,481			123,172
Equity-based compensation ⁽⁴⁾		34,962			—			(34,962	)		—
Depreciation and amortization		211,372			(46	)		(350	)		210,976
Impairment of real estate ⁽⁵⁾		—			—			3,346			3,346

Total operating expenses		640,704			—			24,524			665,228

Operating loss		(310,826	)		—			(25,079	)		(335,905	)

Other (expense) income:
Interest expense		(102,305	)		(977	)		(2,266	)		(105,548	)
Other income, net		2,847			977			—			3,824
Loss on derivative instruments, net		(67,946	)		—			—			(67,946	)
Loss on sale of investments in affiliates		(411	)		—			—			(411	)
Loss on sale of investments		(1,795	)		—			—			(1,795	)

Total other expenses, net		(169,610	)		—			(2,266	)		(171,876	)

Loss from continuing operations		(480,436	)		—			(27,345	)		(507,781	)
Net loss from continuing operations attributable to non-controlling interests		5,715			—			10,600			16,315

Net loss from continuing operations attributable to stockholders		(474,721	)		—			(16,745	)		(491,466	)


Discontinued operations:
Loss from operations of held for sale properties		(34	)		—			—			(34	)
Gain (loss) on held for sale properties ⁽⁶⁾		14			—			(14	)		—

Net loss from discontinued operations		(20	)		—			(14	)		(34	)
Net loss from discontinued operations attributable to non-controlling interest		1			—			—			1

Net loss from discontinued operations attributable to stockholders		(19	)		—			(14	)		(33	)


Net loss		(480,456	)		—			(27,359	)		(507,815	)
Net loss attributable to non-controlling interests		5,716			—			10,600			16,316

Net loss attributable to stockholders	$	(474,740	)	$	—		$	(16,759	)	$	(491,499	)


Basic and diluted net loss per share from continuing operations attributable to common stockholders	$	(2.33	)	$	—		$	(0.08	)	$	(2.41	)
Basic and diluted net loss per share from discontinued operations attributable to common shareholders	$	—		$	—		$	—		$	—
Basic and diluted net loss per share attributable to common stockholders	$	(2.33	)	$	—		$	(0.08	)	$	(2.41	)

(1)	These financial statements have been recast in applying the carryover basis of accounting to include the effects of the merger with ARCT IV.

(2)	This line item caption has been updated to merger and other non-routine transactions in the accompanying consolidated statements of operations.

(3)	This line item caption has been updated to management fees to affiliates in the accompanying consolidated statements of operations.

(4)	As disclosed above, this line item has been reclassified into general and administrative in the accompanying consolidated statements of operations.

(5)	As disclosed above, this line item has been added and is included in the accompanying consolidated statements of operations.

(6)	This line item caption has been updated to loss on held for sale properties in the accompanying consolidated statements of operations.

2013 Restated Statement of Comprehensive Loss ⁽¹⁾


	Year Ended December 31, 2013
	As Previously Reported ⁽²⁾			Restatement Adjustments			As Restated
Net loss ⁽³⁾	$	(480,456	)	$	(27,359	)	$	(507,815	)

Other comprehensive income (loss):
Designated derivatives, fair value adjustments		11,480			1			11,481
Change in unrealized gain/loss on investment securities ⁽⁴⁾		119			—			119

Total other comprehensive income (loss) ⁽⁵⁾		11,599			1			11,600

Total comprehensive loss ⁽⁶⁾		(468,857	)		(27,358	)		(496,215	)
Comprehensive loss attributable to non-controlling interests		5,716			10,600			16,316

Total comprehensive loss attributable to stockholders	$	(463,141	)	$	(16,758	)	$	(479,899	)

(1)	The statement of comprehensive loss was originally included within the consolidated statement of operations in the recasted filing, which applied the carryover basis of accounting to include the effects of the merger with ARCT IV; it is now presented as a standalone financial statement.

(2)	These financial statements have been recast in applying the carryover basis of accounting to include the effects of the merger with ARCT IV.

(3)	The statement of comprehensive loss previously began with net loss attributable to common stockholders . The statement has been updated to begin with net loss to properly show the total comprehensive loss.

(4)	This line item has been updated to unrealized gain (loss) on investment securities in the accompanying statements of comprehensive loss.

(5)	The total other comprehensive income (loss) line item has been added and included in the accompanying statements of comprehensive loss.

(6)	This line item caption has been updated to total comprehensive loss in the accompanying statements of comprehensive loss.

2013 Restated Statement of Cash Flows


	December 31, 2013
	As Previously Reported ⁽¹⁾			Reclassifications			Restatement Adjustments			As Restated
Cash flows from operating activities:
Net loss	$	(480,456	)	$	—		$	(27,359	)	$	(507,815	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Issuance of OP Units for ARCT III Merger		108,247			—			(476	)		107,771
Depreciation ⁽²⁾		162,027			74,364			1,916			238,307
Amortization of intangible lease assets ⁽²⁾		49,345			(49,345	)		—			—
Amortization of deferred costs ⁽²⁾		26,895			(26,895	)		—			—
Amortization of above- and below-market lease asset ⁽²⁾		(176	)		176			—			—
Amortization of discounts and premiums ⁽²⁾		(1,700	)		1,700			—			—
Loss on held for sale properties ⁽³⁾		(14	)		—			14			—
Impairment of real estate ⁽⁴⁾		—			—			3,346			3,346
Equity-based compensation		43,565			—			56,696			100,261
Unrealized gain on derivative instruments		(1,739	)		—			—			(1,739	)
Loss on sale of investments, net		2,206			—			—			2,206
Loss in extinguishment of Series C Stock		13,749			—			—			13,749
Changes in assets and liabilities:
Investment in direct financing leases		2,505			—			—			2,505
Prepaid expenses and other assets		(20,406	)		—			555			(19,851	)
Accounts payable and accrued expenses		100,166			—			(79,377	)		20,789
Deferred rent and other liabilities		8,555			—			—			8,555
Due to affiliates ⁽⁵⁾		—			—			43,834			43,834

Net cash provided by operating activities		12,769			—			(851	)		11,918

Cash flows from investing activities:
Investments in real estate and other assets		(3,520,412	)		—			—			(3,520,412	)
Acquisition of a real estate business, net of cash acquired of $41,779		(878,898	)		—			—			(878,898	)
Investment in direct financing leases		(68,617	)		—			—			(68,617	)
Capital expenditures		(9,755	)		—			—			(9,755	)
Principal repayments received from borrowers		442			—			—			442
Purchase of assets from Manager ⁽⁶⁾		(1,584	)		—			1,041			(543	)
Deposits for real estate investments		(101,887	)		—			—			(101,887	)
Purchases of investment securities		(81,590	)		—			—			(81,590	)
Proceeds from sale of investment securities		119,542			—			—			119,542

Net cash used in investing activities		(4,542,759	)		—			1,041			(4,541,718	)

Cash flows from financing activities:
Proceeds from mortgage notes payable		6,924			—			—			6,924
Payments on mortgage notes payable		(5,711	)		—			—			(5,711	)
Payments on other debt		(9,368	)		—			—			(9,368	)
Payments on senior secured revolving credit facility		(124,604	)		—			—			(124,604	)
Proceeds from senior corporate credit facility		1,889,800			—			—			1,889,800
Payments on senior corporate credit facility		(830,000	)		—			—			(830,000	)
Proceeds from secured credit facility		789,000			—			—			789,000

The 2013 restated consolidated statement of cash flows continues onto the next page.


	December 31, 2013
	As Previously Reported ⁽¹⁾			Reclassifications		Restatement Adjustments			As Restated
Payments of deferred financing costs	$	(95,268	)	$	—	$	(5,928	)	$	(101,196	)
Proceeds from issuance of convertible debt		967,786			—		—			967,786
Common stock repurchases		(359,193	)		—		—			(359,193	)
Proceeds from issuance of Series C Stock		445,000			—		—			445,000
Cash payment on settlement of Series C Stock		(441,353	)		—		—			(441,353	)
Proceeds from issuance of Series D Preferred Stock		287,991			—		—			287,991
Proceeds from issuance of common stock		2,158,486			—		—			2,158,486
Payments of offering costs and fees related to stock issuances		(165,327	)		—		—			(165,327	)
Consideration to Former Manager for internalization		(5,738	)		—		5,738			—
Contributions from non-controlling interest holders		30,861			—		—			30,861
Distributions to non-controlling interest holders		(8,219	)		—		—			(8,219	)
Distributions paid		(234,897	)		—		—			(234,897	)
Advances from affiliates, net		(376	)		—		—			(376	)
Change in restricted cash		(5,654	)		—		—			(5,654	)

Net cash provided by financing activities		4,290,140			—		(190	)		4,289,950

Net change in cash and cash equivalents		(239,850	)		—		—			(239,850	)
Cash and cash equivalents, beginning of period		292,575			—		—			292,575

Cash and cash equivalents, end of period	$	52,725		$	—	$	—		$	52,725

(1)	These financial statements have been recast in applying the carryover basis of accounting to include the effects of the merger with ARCT IV.

(2)	These five depreciation and amortization line items have been consolidated into one line item named depreciation and amortization in the accompanying consolidated statements of cash flows.

(3)	This line item caption has been updated to loss on held for sale properties in the accompanying consolidated statements of cash flows.

(4)	As disclosed above, this line item has been added and is included in the accompanying consolidated statements of cash flows.

(5)	This line item caption has been added and is included in the accompanying consolidated statements of cash flows.

(6)	This line item caption has been updated to investments in other assets in the accompanying consolidated statements of cash flows.