March 31, 2014 and December 31, 2013 Restated Consolidated Balance Sheets


	March 31, 2014												December 31, 2013
	As Previously Reported			Reclassifications			Restatement Adjustments			As Restated			As Previously Reported ⁽¹⁾			Reclassifications			Restatement Adjustments			As Restated
ASSETS
Real estate investments, at cost:
Land	$	3,226,615		$	—		$	(2,358	)	$	3,224,257		$	1,379,453		$	—		$	855		$	1,380,308
Buildings, fixtures and improvements		11,841,722			(3,565	)		(1,502	)		11,836,655			5,291,031			—			6,369			5,297,400
Land and construction in progress		40,459			—			—			40,459			21,839			—			—			21,839
Acquired intangible lease assets		2,209,747			382			(227	)		2,209,902			758,376			382			837			759,595

Total real estate investments, at cost		17,318,543			(3,183	)		(4,087	)		17,311,273			7,450,699			382			8,061			7,459,142
Less: accumulated depreciation and amortization		(422,355	)		(167	)		(6,044	)		(428,566	)		(267,352	)		(155	)		229			(267,278	)

Total real estate investments, net		16,896,188			(3,350	)		(10,131	)		16,882,707			7,183,347			227			8,290			7,191,864
Investment in unconsolidated entities		105,775			—			—			105,775			—			—			—			—
Investment in direct financing leases, net		65,723			—			—			65,723			66,112			—			—			66,112
Investment securities, at fair value		213,803			—			—			213,803			62,067			—			—			62,067
Loans held for investment, net		98,185			—			—			98,185			26,279			—			—			26,279
Cash and cash equivalents		83,067			—			149			83,216			52,725			—			—			52,725
Derivative assets, at fair value ⁽²⁾		—			—			—			—			9,189			(9,189	)		—			—
Restricted cash		55,559			—			—			55,559			35,921			—			—			35,921
Intangible assets, net		371,634			—			—			371,634			—			—			—			—
Deferred costs and other assets, net		294,694			3,350			6,053			304,097			—			281,326			—			281,326
Prepaid expenses and other assets, net ⁽²⁾		—			—			—			—			187,930			(186,726	)		(1,204	)		—
Goodwill		2,287,122			—			11,555			2,298,677			102,419			—			(9,630	)		92,789
Due from affiliates		8,550			—			169			8,719			—			—			—			—
Deferred costs, net ⁽²⁾		—			—			—			—			81,311			(84,973	)		3,662			—
Assets held for sale		—			—			—			—			679			(665	)		(14	)		—

Total assets	$	20,480,300		$	—		$	7,795		$	20,488,095		$	7,807,979		$	—		$	1,104		$	7,809,083

LIABILITIES AND EQUITY
Mortgage notes payable, net	$	4,234,668		$	—		$	(594	)	$	4,234,074		$	1,301,114		$	—		$	—		$	1,301,114
Corporate bonds, net		2,545,884			—			—			2,545,884			—			—			—			—
Convertible debt, net		973,737			—			—			973,737			972,490			—			—			972,490
Senior corporate credit facilities ⁽³⁾		—			—			—			—			1,819,800			(1,819,800	)		—			—
Secured credit facility ⁽³⁾		—			—			—			—			150,000			(150,000	)		—			—
Credit facilities		2,415,800			—			—			2,415,800			—			1,969,800			—			1,969,800
Other debt, net		148,809			—			—			148,809			104,804			—			—			104,804
Below-market lease liabilities, net		287,199			—			(620	)		286,579			77,789			—			(620	)		77,169
Derivative liabilities, at fair value ⁽⁴⁾		—			—			—			—			18,455			(18,455	)		—			—
Accounts payable and accrued expenses		143,860			—			5,682			149,542			808,900						(78,329	)		730,571
Deferred rent, derivative and other liabilities		195,826			—			10,279			206,105			21,816			18,455			—			40,271
Distributions payable		4,414			—			6,819			11,233			10,278			—			625			10,903
Due to affiliates		217			—			2,397			2,614			—						103,434			103,434

Total liabilities		10,950,414			—			23,963			10,974,377			5,285,446			—			25,110			5,310,556

Series D preferred stock, $0.01 par value, 21,735,008 shares (part of 100,000,000 aggregate preferred shares authorized) issued and outstanding at March 31, 2014 and December 31, 2013, respectively	$	269,299		$	—		$	—		$	269,299		$	269,299		$	—		$	—		$	269,299
Preferred stock (excluding Series D Preferred Stock), $0.01 par value, 100,000,000 shares authorized and 42,654,919 and 42,199,547 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively		427			—			—			427			422			—			—			422
Common stock, $0.01 par value, 1,500,000,000 and 750,000,000 shares authorized and 769,931,938 and 239,234,725 issued and outstanding at March 31, 2014 and December 31, 2013, respectively		7,699			—			—			7,699			2,392			—			—			2,392
Additional paid-in capital		10,305,815			(4,437	)		790			10,302,168			2,939,287			—			1,620			2,940,907
Accumulated other comprehensive income		13,397			—			(4,934	)		8,463			7,666			—			—			7,666
Accumulated deficit		(1,365,467	)		269			6,455			(1,358,743	)		(864,516	)		—			(13,441	)		(877,957	)

Total stockholders’ equity		8,961,871			(4,168	)		2,311			8,960,014			2,085,251			—			(11,821	)		2,073,430
Non-controlling interests		298,716			4,168			(18,479	)		284,405			167,983			—			(12,185	)		155,798

Total equity		9,260,587			—			(16,168	)		9,244,419			2,253,234			—			(24,006	)		2,229,228

Total liabilities and equity	$	20,480,300		$	—		$	7,795		$	20,488,095		$	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)

This line item caption has been reclassified and included within deferred costs and other assets, net in the accompanying consolidated balance sheets for the period ended March 31, 2014.

(3)

This line item caption has been reclassified and included within credit facilities in the accompanying consolidated balance sheets for the period ended March 31, 2014.

(4)

This line item caption has been reclassified and included within deferred rent, derivative and other liabilities in the accompanying consolidated balance sheets for the period ended March 31, 2014.

March 31, 2013 Restated Consolidated Balance Sheet


	March 31, 2013
	As Previously Reported			ARCT IV Adjustments ⁽¹⁾			Reclassifications			Restatement Adjustments			As Restated
ASSETS
Real estate investments, at cost:
Land	$	298,280		$	39,326		$	—		$	—		$	337,606
Buildings, fixtures and improvements		1,521,505			161,868			—			—			1,683,373
Land and construction in progress		—			—			—			—			—
Acquired intangible lease assets		241,501			24,875			347			—			266,723

Total real estate investments, at cost		2,061,286			226,069			347			—			2,287,702
Less: accumulated depreciation and amortization		(81,207	)		(1,954	)		(121	)					(83,282	)

Total real estate investments, net		1,980,079			224,115			226			—			2,204,420
Investment securities, at fair value		4			61,600			—			—			61,604
Cash and cash equivalents		52,412			1,067,095			—			—			1,119,507
Restricted cash		1,287			—			—			—			1,287
Deferred costs and other assets, net		—			—			229,320			(698	)		228,622
Prepaid expenses and other assets, net		15,397			6,129			(21,526	)		—			—
Receivable for issuances of common stock		—			169,097			(169,097	)		—			—
Deferred costs, net		38,244			—			(38,244	)		—			—
Assets held for sale		679			—			(679	)		—			—

Total assets	$	2,088,102		$	1,528,036		$	—		$	(698	)	$	3,615,440

LIABILITIES AND EQUITY
Mortgage notes payable, net	$	265,118		$	—		$	—		$	—		$	265,118
Senior corporate credit facilities		640,000			—			—			—			640,000
Derivative liabilities, at fair value		5,012			—			—			—			5,012
Accounts payable and accrued expenses		6,589			641,094			(138	)		(484	)		647,061
Deferred rent and other liabilities		5,270			148			138			—			5,556
Distributions payable		92			6,619			—			62			6,773
Due to affiliates		—			—			—			1,569			1,569

Total liabilities		922,081			647,861			—			1,147			1,571,089

Series A convertible preferred stock, $0.01 par value, 545,454 shares (liquidation preference $11.00 per share) authorized, issued and outstanding at March 31, 2013		5			—			(5	)		—			—
Series B convertible preferred stock, $0.01 par value, 283,018 shares (liquidation preference $10.60 per share) authorized, issued and outstanding at March 31, 2013		3			—			(3	)		—			—
Preferred stock (excluding Series D Preferred Stock), $0.01 par value, 100,000,000 shares authorized and 35,863,711 shares issued and outstanding at March 31, 2013		—			412			8			—			420
Common stock, $0.01 par value, 240,000,000 shares authorized, 154,322,183 issued and outstanding at March 31, 2013		1,543			361			—			—			1,904
Additional paid-in capital		1,335,863			898,056			(615	)		3,035			2,236,339
Accumulated other comprehensive income		(5,018	)		335			—			—			(4,683	)
Accumulated deficit		(290,484	)		(18,989	)		—			(2,433	)		(311,906	)

Total stockholders’ equity		1,041,912			880,175			(615	)		602			1,922,074
Non-controlling interests		124,109			—			615			(2,447	)		122,277

Total equity	$	1,166,021		$	880,175		$	—		$	(1,845	)	$	2,044,351

Total liabilities and equity	$	2,088,102		$	1,528,036		$	—		$	(698	)	$	3,615,440

(1)	Adjustments to financial statements in order to apply the carryover basis of accounting to include the effects of the merger with ARCT IV.

Restated Consolidated Statements of Operations


	March 31, 2014												March 31, 2013
	As Previously Reported			Reclassifications			Restatement Adjustments			As Restated			As Previously Reported			Reclassifications			Restatement Adjustments			As Restated
Revenues:
Rental income	$	244,445		$	—		$	(30	)	$	244,415		$	40,987		$	—		$	—		$	40,987
Direct financing lease income		1,006			—			—			1,006			—			—			—			—
Operating expense reimbursements		21,096			—			380			21,476			1,910			—			—			1,910
Cole Capital revenue		54,067			190			—			54,257			—			—			—			—

Total revenues		320,614			190			350			321,154			42,897			—			—			42,897

Operating expenses:
Cole Capital reallowed fees and commissions		34,436			—			—			34,436			—			—			—			—
Acquisition related		11,884			—			1,533			13,417			10,327			—			—			10,327
Merger and other transaction related ⁽¹⁾		222,192			—			(61,894	)		160,298			137,769			—			(14,201	)		123,568
Property operating		29,627			31			97			29,755			2,549			—			—			2,549
Operating fees to affiliate ⁽²⁾		—			—			13,888			13,888			—			—			12,493			12,493
General and administrative		26,839			(31	)		29,684			56,492			1,454			—			6,318			7,772
Equity-based compensation ⁽³⁾		22,510			—			(22,510	)		—			881			—			(881	)		—
Depreciation and amortization		165,363			—			8,479			173,842			26,753			—			—			26,753

Total operating expenses		512,851			—			(30,723	)		482,128			179,733			—			3,729			183,462

Operating loss		(192,237	)		190			31,073			(160,974	)		(136,836	)		—			(3,729	)		(140,565	)

Other (expense) income:
Interest expense, net		(116,712	)		(3,653	)		(586	)		(120,951	)		(6,056	)		(146	)		(599	)		(6,801	)
Extinguishment of debt, net ⁽⁴⁾		—			—			(9,399	)		(9,399	)		—			—			—			—
Other income, net		5,512			3,463			1,235			10,210			853			146			—			999
Loss on derivative instruments, net		(20,197	)		—			13,076			(7,121	)		(5	)		—			—			(5	)
Gain on disposition of properties, net ⁽⁵⁾		2,979			—			(20,584	)		(17,605	)		—			—			—			—
Gain on sale of investments		—			—			—			—			451			—			—			451

Total other expenses, net		(128,418	)		(190	)		(16,258	)		(144,866	)		(4,757	)		—			(599	)		(5,356	)

Net loss from continuing operations		(320,655	)		—			14,815			(305,840	)		(141,593	)		—			(4,328	)		(145,921	)

Discontinued operations:
Loss from operations of held for sale properties		—			—			—			—			(16	)		—			—			(16	)
Gain on held for sale properties		—			—			—			—			14			—			(14	)		—

Net loss from discontinued operations		—			—			—			—			(2	)		—			(14	)		(16	)
Net loss		(320,655	)		—			14,815			(305,840	)		(141,595	)		—			(4,342	)		(145,937	)
Net loss attributable to non-controlling interest		11,974			—			2,422			14,396			432			—			1,625			2,057

Net loss attributable to the Company	$	(308,681	)	$	—		$	17,237		$	(291,444	)	$	(141,163	)	$	—		$	(2,717	)	$	(143,880	)

Basic and diluted net loss per share attributable to common stockholders	$	(0.61	)	$	—		$	0.03		$	(0.58	)	$	(0.84	)	$	—		$	(0.02	)	$	(0.86	)

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

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

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

(4)	This line item caption has been added and is included in the accompanying consolidated statements of operations for the period ended March 31, 2014.

(5)	This line item caption has been updated to loss on disposition of properties, net in the accompanying consolidated statements of operations.

Restated Statements of Comprehensive Loss


	March 31, 2014											March 31, 2013
	As Previously Reported			Reclassifications		Restatement Adjustments			As Restated			As Previously Reported			Reclassifications		Restatement Adjustments			As Restated
Net loss ⁽¹⁾	$	(320,655	)	$	—	$	14,815		$	(305,840	)	$	(141,595	)	$	—	$	(4,342	)	$	(145,937	)
Other comprehensive income (loss):
Designated derivatives, fair value adjustments		2,636			—		(4,934	)		(2,298	)		(1,177	)		—		—			(1,177	)
Unrealized gain (loss) on investment securities		3,095			—		—			3,095			428			—		—			428

Total other comprehensive income (loss)		5,731			—		(4,934	)		797			(749	)		—		—			(749	)

Total comprehensive loss		(314,924	)		—		9,881			(305,043	)		(142,344	)		—		(4,342	)		(146,686	)
Comprehensive loss attributable to non-controlling interests		11,974			—		2,422			14,396			432			—		1,625			2,057

Total comprehensive income attributable to the Company ⁽²⁾	$	(302,950	)	$	—	$	12,303		$	(290,647	)	$	(141,912	)	$	—	$	(2,717	)	$	(144,629	)

(1)	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.

(2)	This line item caption has been added and is included in the accompanying statement of comprehensive loss for the period ended March 31, 2014.

Restated Statements of Cash Flows


	March 31, 2014												March 31, 2013
	As Previously Reported			Reclassifications			Restatement Adjustments			As Restated			As Previously Reported			Reclassifications		Restatement Adjustments			As Restated
Cash flows from operating activities:
Net loss	$	(320,655	)	$	—		$	14,815		$	(305,840	)	$	(141,595	)	$	—	$	(4,342	)	$	(145,937	)
Adjustments to reconcile net loss to net cash used in operating activities:
Issuance of OP Units		153,884			—			(61,000	)		92,884			108,247			—		(476	)		107,771
Depreciation and amortization ⁽¹⁾		—			185,177			28,863			214,040			—			—		—			—
Depreciation ⁽¹⁾		111,015			(111,015	)		—			—			21,474			—		599			22,073
Amortization of intangible lease assets ⁽¹⁾		40,159			(40,159	)		—			—			5,279			—		—			5,279
Amortization of deferred costs ⁽¹⁾		38,064			(38,064	)		—			—			1,222			—		—			1,222
Amortization of above- and below-market lease asset ⁽¹⁾		358			(358	)		—			—			68			—		—			68
Amortization of intangible assets ⁽¹⁾		13,992			(13,992	)		—			—			—			—		—			—
Amortization of discounts and premiums ⁽¹⁾		(18,411	)		18,411			—			—			—			—		—			—
Gain (loss) on disposition of properties		(2,979	)		—			20,584			17,605			(14	)		—		14			—
Equity-based compensation	$	22,510		$	—		$	(936	)	$	21,574		$	3,260		$	—	$	73		$	3,333
Equity in income of unconsolidated entities		(251	)		—			—			(251	)		—			—		—			—
Distributions from unconsolidated entities⁽²⁾		—			—			941			941			—			—		—			—
Net direct financing lease adjustments ⁽³⁾		—			—			—			—			—			—		—			—
Loss (gain) on derivative instruments		8,048			—			(927	)		7,121			5			—		—			5
Loss (gain) on sale of investments, net		—			—			—			—			(451	)		—		—			(451	)
Loss on extinguishment of debt		15,681			—			(35,309	)		(19,628	)		—			—		—			—
Changes in assets and liabilities:
Investment in direct financing leases		(3,104	)		—			3,493			389			—			—		—			—
Deferred costs and other assets		3,348			—			4,597			7,945			(4,710	)		—		—			(4,710	)
Due from affiliates		(8,349	)		—			31			(8,318	)		—			—		—			—
Accounts payable and accrued expenses		(148,052	)		—			74,657			(73,395	)		(1,960	)		—		(484	)		(2,444	)
Deferred rent and other liabilities		(12,365	)		—			(24,266	)		(36,631	)		1,024			—		—			1,024
Due to affiliates		981			—			(42,245	)		(41,264	)		—			—		1,569			1,569

Net cash used in operating activities		(106,126	)		—			(16,702	)		(122,828	)		(8,151	)		—		(3,047	)		(11,198	)

Cash flows from investing activities:
Investments in real estate and other assets		(672,856	)		—			38,315			(634,541	)		(412,628	)		—		1,041			(411,587	)
Acquisition of a real estate business, net of cash acquired		(681,510	)		—			(1,730	)		(683,240	)		—			—		—			—
Capital expenditures		(4,796	)		—			1,684			(3,112	)		—			—		—			—
Real estate developments ⁽²⁾		—			—			(13,044	)		(13,044	)		—			—		—			—
Return of investment from unconsolidated entities ⁽³⁾		941			—			(941	)		—						—		—			—
Principal repayments received from borrowers		3,062			—			—			3,062			—			—		—			—
Investments in unconsolidated entities		(2,500	)		—			—			(2,500	)		—			—		—			—
Proceeds from disposition of properties		60,036			—			749			60,785			—			—		—			—
Investment in intangible assets		(258	)		—			—			(258	)		—			—		—			—
Deposits for real estate investments		(55,029	)		—			16,816			(38,213	)		(7,769	)		—		—			(7,769	)
Uses and refunds of deposits for real estate investments		137,688			—			—			137,688			—			—		—			—
Purchases of investment securities		—			—			—			—			(63,269	)		—		—			(63,269	)
Line of credit advances to affiliates		(36,000	)		—			35,000			(1,000	)		—			—		—			—
Line of credit repayments from affiliates		39,100			—			(35,200	)		3,900			—			—		—			—
Proceeds from sale of investment securities		—			—			—			—			44,198			—		—			44,198
Change in restricted cash		—			—			(3,934	)		(3,934	)		—			—		—			—

Net cash used in investing activities		(1,212,122	)		—			37,715			(1,174,407	)		(439,468	)		—		1,041			(438,427	)

Cash flows from financing activities:
Proceeds from mortgage notes payable	$	669,336		$	—		$	—		$	669,336		$	—		$	—	$	—		$	—
Payments on mortgage notes payable		(739,087	)		—			(593	)		(739,680	)		—			—		—			—
Payments on other debt		(4,938	)		—			—			(4,938	)		—			—		—			—
Proceeds from credit facilities		2,131,000			—			—			2,131,000			675,000			—		—			675,000
Payments on credit facilities		(2,994,000	)		—			—			(2,994,000	)		(159,604	)		—		—			(159,604	)
Proceeds from corporate bonds		2,545,760			—			—			2,545,760			—			—		—			—
Payments of deferred financing costs		(43,037	)		—			(23,797	)		(66,834	)		(24,587	)		—		(956	)		(25,543	)
Common stock repurchases		—			—			—			—			(350,522	)		—		—			(350,522	)
Proceeds from issuances of common stock		—			—			—			—			1,317,389			—		—			1,317,389
Payments of offering costs and fees related to stock issuances		(1,715	)		—			(418	)		(2,133	)		(138,578	)		—		(73	)		(138,651	)
Consideration to Former Manager for internalization		—			—			—			—			(3,035	)		—		3,035			—
Contributions from non-controlling interest holders		279			—			—			279			750			—		—			750
Distributions to non-controlling interest holders		(9,589	)		—			101			(9,488	)		(921	)		—		—			(921	)
Distributions paid		(201,485	)		—			(91	)		(201,576	)		(40,636	)		—		—			(40,636	)
Payments to affiliates, net		—			—			—			—			(526	)		—		—			(526	)
Change in restricted cash		(3,934	)		—			3,934			—			(179	)		—		—			(179	)

Net cash provided by financing activities		1,348,590			—			(20,864	)		1,327,726			1,274,551			—		2,006			1,276,557

Net change in cash and cash equivalents		30,342			—			149			30,491			826,932			—		—			826,932
Cash and cash equivalents, beginning of period		52,725			—			—			52,725			292,575			—		—			292,575

Cash and cash equivalents, end of period	$	83,067		$	—		$	149		$	83,216		$	1,119,507		$	—	$	—		$	1,119,507

Supplemental Disclosures:
Cash paid for interest	$	52,518		$	—		$	(186	)	$	52,332		$	1,363		$	—	$	—		$	1,363
Cash paid for income taxes	$	—		$	—		$	7,616		$	7,616		$	222		$	—	$	—		$	222

Non-cash investing and financing activities:
Common stock issued through distribution reinvestment plan	$	—		$	—		$	—		$	—		$	7,498		$	—	$	—		$	7,498

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

(2)	This line item caption has been added and is included in the accompanying consolidated statements of cash flows for the period ended March 31, 2014.

(3)	This line item has been removed from the accompanying consolidated statements of cash flows for the period ended March 31, 2014.