EX-99.1 3 arcp12312013recast-ex991.htm 12.31.2013 RECASTED FINANCIAL STATEMENTS ARCP 12.31.2013 Recast - Ex. 99.1
Exhibit 99.1


AMERICAN REALTY CAPITAL PROPERTIES, INC.
For the fiscal year ended December 31, 2013



1

Forward-Looking Statements
Certain statements included herein are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of American Realty Capital Properties, Inc. 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. As used herein, the terms “ARCP,” “we,” “our” and “us” refer to American Realty Capital Properties, Inc., a Maryland corporation, together with our consolidated subsidiaries, including ARC Properties Operating Partnership, L.P., a Delaware limited partnership of which we are the sole general partner, which we refer to in herein as our “OP”; our “Former Manager” refers to ARC Properties Advisors, LLC, a Delaware limited liability company, our former external manager; “ARC” refers to AR Capital, LLC (formerly known as American Realty Capital II, LLC) and its affiliated companies, which was our sponsor; and “the Contributor” refers to ARC Real Estate Partners, LLC, an affiliate of ARC, which contributed its 100% indirect ownership interests in the properties contributed to our OP in the formation transactions related to our initial public offering, or our IPO, described elsewhere in herein, or the formation transactions. During the year ended December 31, 2013, we retained our Former Manager to manage our affairs on a day to day basis and, as a result, were generally externally managed, with the exception of certain acquisition, accounting and portfolio management services performed by our employees. Our board of directors determined that it is in the best interests of us and our stockholders to become self-managed, and we completed our transition to self-management on January 8, 2014. In connection with becoming self-managed and since the beginning of the third quarter of 2013, we terminated the existing management agreement with our Former Manager, entered into employment and incentive compensation arrangements with our executives and acquired from our Former Manager certain assets necessary for its operations.
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:
•
We have a limited operating history and limited experience operating a public company. This inexperience makes our future performance difficult to predict.
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The competition for the type of properties we desire to acquire may cause our dividends and the long-term returns of our investors to be lower than they otherwise would be.
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We may be unable to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all, which could have a material adverse effect on our financial condition, results of operations, cash flow, cash available for dividends to our stockholders, per share trading price of our common stock and our ability to satisfy our debt service obligations.
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We depend on tenants for our revenue, and, accordingly, our revenue is dependent upon the success and economic viability of our tenants.
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Failure by any major tenant with leases in multiple locations to make rental payments to us, because of a deterioration of its financial condition or otherwise, or the termination or non-renewal of a lease by a major tenant, would have a material adverse effect on us.
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We are subject to tenant industry concentrations that make us more susceptible to adverse events with respect to certain industries.
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Increases in interest rates could increase the amount of our debt payments and limit our ability to pay dividends to our stockholders.
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We may be unable to make scheduled payments on our debt obligations.
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We may not generate cash flows sufficient to pay our dividends to stockholders, and as such we may be forced to borrow at higher rates to fund our operations.
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We may be unable to pay or maintain cash dividends or increase dividends over time.
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We may be affected by the incurrence of additional secured or unsecured debt;
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We may be adversely affected by increases in interest rates or a failure to maintain our OP's credit rating.
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We may not be able to integrate the assets and businesses acquired in Recent Acquisitions (defined below) into our existing portfolio or with our business successfully, or may not realize the anticipated benefits within the expected timeframe or at all.
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We may not be able to effectively manage or dispose of assets acquired in connection with our Recent Acquisitions that do not fit within our target assets.

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•
We may not be able to effectively manage our expanded portfolio and operations following our Recent Acquisitions completed acquisitions.
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We may be affected by risks associated with current and future litigation.
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We may not be able to successfully acquire future properties on advantageous terms and the performance of such properties.
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We may not be able to achieve and maintain profitability.
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We are subject to risks associated with lease terminations, tenant defaults, bankruptcies and insolvencies and tenant credit, geographic and industry concentrations.
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We could be subject to unexpected costs or unexpected liabilities that may arise from our Recent Acquisitions.
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We may fail to qualify to be treated as a real estate investment trust for U.S. federal income tax purposes ("REIT").
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We may be deemed to be an investment company under the Investment Company Act of 1940, as amended, (the "Investment Company Act") and thus subject to regulation under the Investment Company Act.
•
Certain of our executive officers and the executive officers of the non-traded REITs advised by our private capital management business ("Cole Capital") acquired in the Cole Merger (as defined below) have obligations to, and financial interests in non-traded REITs and businesses sponsored by AR Capital, LLC and owned by RCS Capital Corporation, which may compete with our businesses; therefore, such individuals will be subject to conflicts of interest and may owe their time and attention to such competing businesses.
All forward-looking statements should be read in light of the risks identified in Part I, Item 1A of our Annual Report on Form 10-K filed with the SEC on February 27, 2014.
We use certain defined terms throughout this document that have the following meanings:
We use the term "net lease" throughout this document. Under a net lease, the tenant occupying the leased property (usually as a single tenant) does so in much the same manner as if the tenant were the owner of the property. There are various forms of net leases, most typically classified as triple net or double net. Triple net leases typically require the tenant to pay all costs associated with a property, including real estate taxes, insurance, utilities and routine maintenance in addition to the base rent. Double net leases typically require the tenant to pay all the costs as triple net leases, but hold the landlord responsible for capital expenditures, including the repair or replacement of specific structural and/or bearing components of a property, such as the roof or structure of the building. Accordingly, the owner receives the rent "net" of these expenses, rendering the cash flow associated with the lease predictable for the term of the lease. Under a net lease, the tenant generally agrees to lease the property for a significant term and agrees that it will either have no ability or only limited ability to terminate the lease or abate rent prior to the expiration of the term of the lease as a result of real estate driven events such as casualty, condemnation or failure by the landlord to fulfill its obligations under the lease.
We use the term "modified gross lease" throughout this document. Under a modified gross lease, the commercial enterprises occupying the leased property pay base rent plus a proportional share of some of the other costs associated with the property, such as property taxes, utilities, insurance and maintenance.
We use the term "credit tenant" throughout this document. When we refer to a "credit tenant," we mean a tenant that has entered into a lease that we determine is creditworthy and may include tenants with an investment grade or below investment grade credit rating, as determined by major credit rating agencies, or unrated tenants. To the extent we determine that a tenant is a "credit tenant" even though it does not have an investment grade credit rating, we do so based on our management's determination that a tenant should have the financial wherewithal to honor its obligations under its lease with us. This determination is based on our management's substantial experience closing net lease transactions and is made after evaluating all tenants' due diligence materials that are made available to us, including financial statements and operating data.
We use the term "annualized rental income" throughout this document. When we refer to "annualized rental income," we mean the rental income under our leases reflecting straight-line rent adjustments associated with contractual rent increases in the leases as required by U.S. GAAP, which includes the effect of tenant concessions such as free rent, as applicable. We also use the term annualized rental income/net operating income ("NOI") throughout this document. When we refer to "annualized rental income/NOI" for net leases, we mean rental income on a straight-line basis, which includes the effect of tenant concessions such as free rent as applicable. For modified gross leased properties, NOI is rental income on a straight-line basis, which includes the effect of tenant concessions such as free rent, as applicable, plus operating expense reimbursement revenue less property expenses.
When we refer to properties that are net leased on a "medium-term basis," we mean properties originally leased long term (10 years or longer) that are currently subject to net leases with remaining primary lease terms of generally three to eight years, on average. When we refer to properties that are net leased on a "long-term basis," we mean properties with remaining primary lease terms of generally 10 years or longer on average.

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PART I

Item 1. Business.
Overview
We were incorporated on December 2, 2010 as a Maryland corporation that qualified as a REIT for U.S. federal income tax purposes beginning in the year ended December 31, 2011. On September 6, 2011, we completed our initial public offering (our "IPO") and our shares of common stock began trading on the NASDAQ Global Select Market ("NASDAQ") under the symbol "ARCP" on September 7, 2011.
We are a self-managed and self-administered real estate company that acquires, owns and operates single-tenant, free-standing commercial real estate properties primarily subject to net leases with high credit quality tenants. We focus on investing in properties that are net leased to (i) credit tenants, which are generally large public companies with investment-grade ratings and other creditworthy tenants and (ii) governmental, quasi-governmental and not-for-profit entities. Our long-term business strategy is to acquire a diverse portfolio consisting of approximately 70% long-term leases and 30% medium-term leases, with an average remaining lease term of 10 to 12 years. We expect this investment strategy to provide for stable income from credit tenants and to provide for growth opportunities from re-leasing of current below market leases.
Substantially all of our business is conducted through the OP. We are the sole general partner and holder of 96.1% of the equity interests in the OP as of December 31, 2013. As of December 31, 2013, certain of our affiliates and certain unaffiliated investors are limited partners and owners of 3.3% and 0.6%, respectively, of the equity interests in the OP. Under the limited partnership agreement of the OP, after holding units of limited partner interests in the OP ("OP Units") for a period of one year, unless otherwise consented to by us, holders of OP Units have the right to redeem the OP Units for the cash value of a corresponding number of shares of our common stock or, at our option, as general partner of the OP, a corresponding number of shares of our common stock. The remaining rights of the holders of OP Units are limited, 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 advanced our investment objectives by growing our net lease portfolio through self-origination of property acquisitions and strategic mergers and acquisitions. See Note 2 to the consolidated financial statements.
As of December 31, 2013, excluding one vacant property classified as held for sale, we owned 2,559 properties consisting of 43.8 million square feet, which were 99% leased with a weighted-average remaining lease term of 9.4 years years. In constructing our portfolio, we are committed to diversification (by industry, tenant and geography). As of December 31, 2013, rental revenues derived from investment grade tenants and tenants affiliated with investment grade entities as determined by a major rating agency approximated 56% (we have attributed the rating of each parent company to its wholly owned subsidiary for purposes of this disclosure). Our strategy encompasses receiving the majority of our revenue from investment grade tenants as we further acquire properties and enter into (or assume) lease arrangements.
Completed Mergers and Major Acquisitions
The following summarizes mergers and portfolio acquisitions that have been consummated since January 1, 2013 (the "Recent Acquisitions"):
American Realty Capital Trust III, Inc. Merger
On December 14, 2012, we entered into an Agreement and Plan of Merger (the "ARCT III Merger Agreement") with American Realty Capital Trust III, Inc. ("ARCT III") and certain subsidiaries of each company. The ARCT III Merger Agreement provided for the merger of ARCT III (the "ARCT III Merger") with and into a subsidiary of ours. The ARCT III Merger was consummated on February 28, 2013. See Note 2 to the consolidated financial statements for further discussion of the ARCT III Merger.
Also in connection with the ARCT III Merger, we entered into an agreement with ARC and its affiliates to internalize certain functions performed by them prior to the ARCT III Merger, reduce certain fees paid to affiliates, purchase certain corporate assets and pay certain merger related fees. See Note 18 — Related Party Transactions and Arrangements for further discussion.
GE Capital Portfolio Acquisition
On June 27, 2013, we acquired, through subsidiaries of the OP, from certain affiliates of GE Capital Corp., the equity interests in the entities that own a real estate portfolio comprised of 447 properties, (the "GE Capital Portfolio") for a purchase price of $773.9 million, exclusive of closing costs, with no liabilities assumed. The 447 properties are subject to 409 property operating leases, as well as 38 direct financing leases.

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During the year ended December 31, 2013, ARCT IV (defined below) acquired, from certain affiliates of GE Capital Corp., the equity interests in the entities that own a real estate portfolio comprised of 924 properties (the "ARCT IV GE Capital Portfolio") for a purchase price of $1.4 billion, exclusive of closing costs, with no liabilities assumed. The 924 properties are subject to 912 property operating leases, as well as 12 direct financing leases.
CapLease, Inc. Merger
On May 28, 2013, we entered into an Agreement and Plan of Merger (the "CapLease Merger Agreement") with CapLease, Inc., a Maryland corporation ("CapLease"), and certain subsidiaries of each company. The CapLease Merger Agreement provided for the merger of CapLease with and into a subsidiary of ours (the "CapLease Merger"). On November 5, 2013, we completed the merger with CapLease based on the terms of the CapLease Merger Agreement. See Note 2 to the consolidated financial statements for further discussion of the CapLease Merger.
American Realty Capital Trust IV, Inc. Merger
On July 1, 2013, we entered into an Agreement and Plan of Merger, as amended on October 6, 2013 and October 11, 2013, (the "ARCT IV Merger Agreement") with American Realty Capital Trust IV, Inc., a Maryland corporation ("ARCT IV"), and certain subsidiaries of each company. The ARCT IV Merger Agreement provided for the merger of ARCT IV with and into a subsidiary of the OP (the "ARCT IV Merger"). We consummated the ARCT IV Merger on January 3, 2014. See Note 2 to the consolidated financial statements for further discussion of the ARCP IV Merger.
ARCP and ARCT IV, from inception to the ARCT IV Merger date, were considered to be entities under common control. Both entities' advisors were wholly owned subsidiaries of ARC. ARC and its related parties had ownership interests in us and in ARCT IV through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities were contractually eligible to receive potential fees for their services to both of the companies including asset management fees, incentive fees and other fees and had continued to receive fees from us prior to our transition to self-management, January 8, 2014. Due to the significance of these fees, the advisors and ultimately ARC were determined to have a significant economic interest in both companies in addition to having the power to direct the activities of the companies through advisory/management agreements, which qualified them as affiliated companies under common control in accordance with U.S. GAAP. The acquisition of an entity under common control is accounted for on the carryover basis of accounting, whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the ARCT IV Merger date. In addition, U.S. GAAP requires us to present historical financial information as if the entities were combined for each period presented. Therefore, the accompanying financial statements including the notes thereto are presented as if the ARCT IV Merger, including the impact of the equity transactions entered to consummate the merger, had occurred on January 1, 2011.
Fortress Portfolio Acquisition
On July 24, 2013, ARC and another related entity, on our behalf and certain other entities sponsored directly or indirectly by ARC, entered into a purchase and sale agreement with affiliates of funds managed by Fortress Investment Group LLC ("Fortress") for the purchase and sale of 196 properties owned by Fortress for an aggregate contract purchase price of $972.5 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs, which was allocated to us based on the pro rata fair value of the properties acquired by us relative to the fair value of all 196 properties to be acquired from Fortress. Of the 196 properties, 120 properties were allocated to us (the "Fortress Portfolio"). On October 1, 2013, we closed on 41 of the 120 properties with a total purchase price of $200.3 million, exclusive of closing costs. We closed the acquisition of the remaining 79 properties in the Fortress Portfolio on January 8, 2014, for an aggregate contract purchase price of $400.9 million, exclusive of closing costs. The total purchase price of the Fortress Portfolio was $601.2 million, exclusive of closing costs. See Note 2 to the consolidated financial statements for further discussion of Fortress Portfolio acquisition.
Cole Real Estate Investments, Inc. Merger
On October 22, 2013, we entered into an Agreement and Plan of Merger (the "Cole Merger Agreement") with Cole Real Estate Investments, Inc. ("Cole"), a Maryland corporation, and a wholly owned subsidiary of ours. The Cole Merger Agreement provided for the merger of Cole with and into a wholly owned subsidiary of ours (the "Cole Merger"). We consummated the Cole Merger on February 7, 2014 (the "Cole Acquisition Date"). See Note 2 to the consolidated financial statements for further discussion of the Cole Merger.

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Inland Portfolio Acquisition
On August 8, 2013, ARC entered into a purchase and sale agreement with Inland American Real Estate Trust, Inc. ("Inland") for the purchase and sale of the equity interests of 67 companies owned by Inland for an aggregate contract purchase price of $2.3 billion, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs. Of the 67 companies, the equity interests of ten companies (the "Inland Portfolio") will be acquired, in total, by us from Inland for a purchase price of $501.0 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs, which was allocated to us based on the pro rata fair value of the Inland Portfolio relative to the fair value of all 67 companies to be acquired from Inland by us and the other entities sponsored directly or indirectly by ARC. The Inland Portfolio is comprised of 33 properties. As of December 31, 2013, we had closed on five of the 33 properties for a total purchase price of $56.4 million, exclusive of closing costs. We closed the acquisition of 27 additional properties in the Inland Portfolio subsequent to December 31, 2013. We do not consider it probable that we will close on the remaining property.
Transition to Self-Management
During the year ended December 31, 2013, we retained our Former Manager, a wholly owned subsidiary of ARC, to manage our affairs on a day-to-day basis and, as a result, we were generally externally managed, with the exception of certain acquisition, accounting and portfolio management services performed by our employees. In August 2013, our board of directors determined that it is in the best interests of us and our stockholders to become self-managed, and we completed our transition to self-management on January 8, 2014. In connection with becoming self-managed, we terminated the existing management agreement with our Former Manager, entered into employment and incentive compensation arrangements with our executives and acquired from the Former Manager certain assets necessary for our operations.
Under the termination agreement, the Former Manager agreed to provide services previously provided under the Management Agreement, to the extent required by ARCP, for a tail period of 60 days following January 8, 2014 and received a payment in the amount of $10.0 million for providing such services. In addition, pursuant to a separate transition services agreement, affiliates of the Former Manager agreed to provide certain transition services, including accounting support, acquisition support, investor relations support, public relations support, human resources and administration, general human resources duties, payroll services, benefits services, treasury, insurance and risk management, information technology, telecommunications and Internet and services relating to office supplies for a 60 day term, which may be extended by ARCP. For additional services that were required by ARCP, ARCP paid an hourly rate or flat rate to be agreed on, that did not exceed market rate. An affiliate of the Former Manager also transferred to us furniture, fixtures and equipment used by the Former Manager in connection with our business, and we paid the Former Manager $10.0 million for the furniture, fixtures and equipment and certain unreimbursed expenses. See Note 23 — Subsequent Events for further discussion.
Investment Policies
Our primary business objective is to generate dependable monthly cash dividends from a consistent and predictable level of funds from operations ("FFO") and adjusted funds from operations ("AFFO") per share and capital appreciation associated with extending expiring leases or repositioning our properties for lease to new credit tenants upon the expiration of a net lease. Upon consummation of the mergers and acquisitions discussed above, we will own a portfolio that uniquely combines all entities' portfolio of properties with stable income from high credit quality tenants, with our portfolio, which has substantial growth opportunities. Our long-term business strategy is to acquire a diverse portfolio consisting of approximately 70% long-term leases and 30% medium-term leases, with an average remaining lease term of 10 to 12 years. We expect this investment strategy to provide for stable income from credit tenants and to provide for growth opportunities from the re-leasing of properties that are currently subject to below market leases. We intend to pursue an investment strategy that maximizes current cash flow and achieves sustainable long-term growth. We expect to achieve these objectives by acquiring net leased properties that either (a) have in-place rental rates below current average asking rents in the applicable sub-market and are located in sub-markets with stable or improving market fundamentals or (b) provide an essential location or infrastructure that is essential to the business operations of the tenant, which we believe will give incentive to the existing tenant or a new credit tenant to re-lease the property at a higher rental rate upon the expiration of the existing lease.

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Primary Investment Focus
We focus on investing in properties that are net leased to (i) credit tenants, which are generally large public companies with investment grade or below investment grade ratings and (ii) governmental, quasi-governmental and not-for-profit entities. We intend to invest in properties with tenants that reflect a diversity of industries, geographies and sizes. A significant majority of our net lease investments have been and will continue to be in properties net leased to investment grade tenants, although at any particular time our portfolio may not reflect this. Our properties are primarily located in ''Main & Main'' locations in markets that we believe exhibit demographic trends that will support growth. We believe the diversification of our portfolio reduces the risks associated with potential adverse events that may impact any one tenant, industry, asset type or location. We believe our scale will enable us to continue to make significant acquisitions without exposing ourselves to excessive concentration risk. Our strategy encompasses receiving the majority of our revenue from investment grade tenants as we further acquire properties and enter into (or assume) lease arrangements.
Under net lease arrangements, tenants enter into long-term leases and pay most of the costs associated with the property and limited day-to-day property management by us is required. As a result, net lease companies are generally able to increase their size and scale with minimal incremental expense. This enables us to take advantage of economies of scale resulting in significant operational efficiencies as we grow. We believe that our focus on net leases has also enabled us to achieve greater tenant and geographic diversification, more stable cash flows, increased liquidity and lower cost of capital .
Investing in Real Property
We invest, and expect to continue to invest, in primarily freestanding, single-tenant retail properties net-leased to investment grade and other creditworthy tenants. When evaluating prospective investments in real property, our management will consider relevant real estate and financial factors, including the location of the property, the leases and other agreements affecting the property, the creditworthiness of major tenants, its income-producing capacity, its physical condition, its prospects for appreciation, its prospects for liquidity, tax considerations and other factors. In this regard, our management will have substantial discretion with respect to the selection of specific investments, subject to approval of our board of directors.
As of December 31, 2013, after giving effect to the properties owned by ARCT IV which we acquired on January 3, 2014, we owned nearly 2,559 double and triple-net lease assets across property types. As a percentage of rental income, as of December 31, 2013, retail properties represented 54%, office properties represented 27% and distribution properties represented 19% of our total portfolio. Our portfolio is located across 49 states, the District of Columbia and Puerto Rico. Our tenant base is comprised of approximately 500 tenants, which include well-known national as well as regional companies across 53 industries.
The following table lists the tenants whose annualized rental income, on a straight-line basis, represented greater than 10% of consolidated annualized rental income on a straight-line basis as of December 31, 2013 and 2012:
Tenant
 
2013
 
2012
Citizens Bank
 
*
 
13.8%
Dollar General
 
*
 
12.3%
FedEx
 
*
 
10.2%
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* The tenants' annualized rental income was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.
The following table lists the states where we have concentrations of properties where annual rental income, on a straight-line basis, represented greater than 10% of consolidated annualized rental income, on a straight-line basis, as of December 31, 2013 and 2012:
State
 
2013
 
2012
Texas
 
10.7%
 
*
Illinois
 
*
 
11.2%
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* The state's annualized rental income was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.
We do not have any specific policy as to the amount or percentage of our assets which will be invested in any specific property, other than the requirements under REIT qualification rules. We currently anticipate that our real estate investments will continue to be diversified in multiple net leased single tenant properties and in multiple geographic markets.


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Purchase and Sale of Investments
We may deliberately and strategically dispose of properties in the future and redeploy funds into new acquisitions that align with our strategic objectives. Further, on a limited and opportunistic basis, we intend to acquire and promptly resell medium-term net lease assets for immediate gain. To the extent we engage in these activities, to avoid adverse U.S. federal income tax consequences, we generally must do so through a taxable REIT subsidiary ("TRS"). In general, a TRS is treated as a regular "C corporation" and therefore must pay corporate-level taxes on its taxable income. Thus, our yield on such activities will be reduced by such taxes borne by the TRS. Our two vacant properties will be held in a TRS because we are contemplating various strategies including selling them as a means of maximizing our value from those properties.
Investments in Real Estate Mortgages
While our current portfolio consists of, and our business objectives emphasize, equity investments in real estate, we may, at the discretion of our board of directors and without a vote of our stockholders, invest in mortgages and other types of real estate interests consistent with our qualification as a REIT. We acquired $97.5 million of mortgage loans and $211.9 million of collateralized mortgage backed securities, or CMBS, pursuant to the Cole merger and the CapLease merger. Investments in real estate mortgages run the risk that one or more borrowers may default under the mortgages and that the collateral securing those mortgages may not be sufficient to enable us to recoup our full investment. Investments in mortgages are also subject to our policy not to be treated as an "investment company" under the Investment Company Act.
Securities of or Interests in Persons Primarily Engaged in Real Estate Activities and Other Issuers
Subject to the asset tests and income tests necessary for REIT qualification, we may invest in securities of other REITs, other entities engaged in real estate activities or securities of other issuers (including partnership interests, limited liability company interests, common stock and preferred stock), where such investment would be consistent with our investment objectives, including for the purpose of exercising control over such entities. There are no limitations on the amount or percentage of our total assets that may be invested in any one issuer, other than those imposed by the gross asset tests we must meet in order to qualify as a REIT under the Internal Revenue Code of 1986, as amended ("the Code"). We do not intend that our investments in securities will require us to register as an "investment company" under the Investment Company Act, and we would generally divest appropriate securities before any such registration would be required.
Build-to-Suit and Properties under Development
We are also expanding our investment activities beyond the traditional investment in completed properties with tenants in occupancy and paying rents by continuing the build-to-suit program and acquisition of properties under the development of Cole and CapLease. These programs involve acquisition of properties that are not yet developed or are under development. Through the build-to-suit program and acquisition of properties under development or that require substantial refurbishment or renovation, we seek to source investments at higher rates of return relative to completed projects. We believe that by entering into projects with established developer partners, we can provide the capital needed to get projects built, while at the same time, securing long-term investment assets for our company at yields significantly higher than those available for completed properties.
Cole Capital
We acquired Cole Capital as part of our acquisition of Cole. Cole Capital sponsors and manages direct investment programs, which primarily includes five publicly registered, non-traded REITs. Cole Capital is responsible for managing the day-to-day affairs of the non-traded REITs, identifying and making acquisitions and investments on behalf of the non-traded REITs, and recommending to each of the respective board of directors of the non-traded REITs an approach for providing investors with liquidity. Cole Capital also develops new non-traded REIT offerings, distributes the shares of common stock for the non-traded REITs and advises them regarding offerings, manages relationships with participating broker-dealers and financial advisors and provides assistance in connection with compliance matters relating to the offerings.
Joint Ventures
We may acquire or enter into joint ventures from time to time, if we determine that doing so would be the most cost-effective and efficient means of raising capital. Equity investments may be subject to existing mortgage financing and other indebtedness or such financing or indebtedness may be incurred in connection with acquiring investments. Any such financing or indebtedness will have priority over our equity interest in such property.
Financing Policies
We rely on leverage to allow us to invest in a greater number of assets and enhance our asset returns. We expect our leverage levels to decrease over time, as a result of one or more of the following factors: scheduled principal amortization on our debt and lower leverage on new asset acquisitions. We expect to continue to strengthen our balance sheet through debt repayment or repurchase and also opportunistically grow our portfolio through new property acquisitions.

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We intend to finance future acquisitions with the most advantageous source of capital available to us at the time of the transaction, which may include a combination of public and private offerings of our equity and debt securities, secured and unsecured corporate-level debt, property-level debt and mortgage financing and other public, private or bank debt. In addition, we may acquire properties in exchange for the issuance of common stock or OP Units and in many cases we may acquire properties subject to existing mortgage indebtedness.
In February 2014, we, through our OP, raised $2.55 billion in unsecured senior notes, and simultaneously with that financing, our credit agreement, which previously had been secured by pledges of interests in property-owning entities was modified to eliminate these pledges. We intend to continue to emphasize unsecured corporate- or OP-level debt in our financing and seek to reduce the percentage of our assets which are secured by mortgage loans.
When we use mortgage financing, we generally seek to finance our properties with, or acquire properties subject to, long-term, fixed-rate, non-recourse debt, effectively locking in the spread we expect to generate on our properties and isolating the default risk to solely the properties financed. Through non-recourse debt, we seek to limit the overall company exposure in the event we default on the debt to the amount we have invested in the asset or assets financed. We seek to finance our assets with "match-funded" or substantially "match-funded" debt, meaning that we seek to obtain debt whose maturity matches as closely as possible the lease maturity of the asset financed. We expect that over time the leverage on net leased properties with medium-term remaining lease durations will be approximately 45% to 55% of the property value. At December 31, 2013, our corporate leverage ratio (total debt outstanding less on-hand cash and cash equivalents divided by base purchase price of acquired properties) was 58.1%.
We also may obtain secured or unsecured debt to acquire properties, and we expect that our financing sources will include banks, institutional investment firms, including asset managers, and life insurance companies. Although we intend to maintain a conservative capital structure, with limited reliance on debt financing, our charter does not contain a specific limitation on the amount of debt we may incur and our board of directors may implement or change target debt levels at any time without the approval of our stockholders.
Lending Policies
We do not have a policy limiting our ability to make loans to other persons, although we may be so limited by applicable law, such as the Sarbanes-Oxley Act. Subject to REIT qualification rules, we may make loans to unaffiliated third parties. For example, we may consider offering purchase money financing in connection with the disposition of properties in instances where the provision of that financing would increase the value to be received by us for the property sold. We do not expect to engage in any significant lending in the future. We may choose to guarantee debt of certain joint ventures with third parties. Consideration for those guarantees may include, but is not limited to, fees, long-term management contracts, options to acquire additional ownership interests and promoted equity positions. Our board of directors may, in the future, adopt a formal lending policy without notice to or consent of our stockholders.
Dividend Policy
We intend to pay regular monthly dividends to holders of our common stock, Series D cumulative convertible preferred stock, Series F cumulative redeemable preferred stock and the units of ownership in the OP. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its REIT taxable income.
In September 2011, our board of directors authorized, and we began paying dividends in October 2011, on the fifteenth day of each month to common stockholders of record at the close of business on the eighth day of such month. Since October 2011, the board of directors has authorized the following increases in our common stock dividends:

9

Declaration date
 
Annualized dividend per share
 
Distribution date
 
Record date
September 7, 2011
 
$
0.875

 
10/15/2011
 
10/8/2011
February 27, 2012
 
$
0.880

 
3/15/2012
 
3/8/2012
March 16, 2012
 
$
0.885

 
6/15/2012
 
6/8/2012
June 27, 2012
 
$
0.890

 
9/15/2012
 
9/8/2012
September 30, 2012
 
$
0.895

 
11/15/2012
 
11/8/2012
November 29, 2012
 
$
0.900

 
2/15/2013
 
2/8/2013
March 17, 2013
 
$
0.910

 
6/15/2013
 
6/8/2013
May 28, 2013
 
$
0.940

 
12/13/2013
 
12/6/2013
October 23, 2013*
 
$
1.000

 
2/15/2014
 
2/7/2014
_______________________________________________
* The dividend increase was contingent upon, and became effective with, the close of the Cole merger, which was consummated on February 7, 2014.
Commencing on May 31, 2012, we had been paying cumulative dividends on the Series A convertible preferred stock monthly in arrears at the annualized rate of $0.77 per share. Commencing on August 15, 2012, we had been paying cumulative dividends on the Series B convertible preferred stock monthly in arrears at an annualized rate of $0.74 per share. These dividends were discontinued when the Series A and B convertible preferred stock were converted to common stock in August 2013. Commencing in June 2013, we have been paying cumulative dividends on the Series C cumulative convertible preferred stock monthly in arrears at the annualized rate of $0.9104 per share. These dividends were discontinued when the Series C cumulative convertible preferred stock was converted to common stock and cash in November 2013. Commencing in November 2013, we have been paying cumulative dividends on the Series D cumulative preferred stock monthly in arrears at the annualized rate of $0.7896 per share.
We have the ability to fund dividends from any source, including borrowing funds and using the proceeds of equity and debt offerings. Dividends made by us will be authorized by our board of directors in its sole discretion out of funds legally available therefor and will be dependent upon a number of factors, including restrictions under applicable law and our capital requirements.
We and our board of directors share a similar philosophy with respect to paying our dividend. The dividend should principally be derived from cash flows generated from real estate operations. The management agreement with our Former Manager, prior to the amendment thereof in connection with the ARCT III Merger, provided for payment of the asset management fee only if the full amount of the dividends declared by us in respect of our OP Units for the six immediately preceding months is equal to or greater than the amount of our AFFO. This condition has been satisfied. Prior to when it was satisfied, our Former Manager waived such portion of its management fee that, when added to our AFFO, without regard to the waiver of the management fee, increased our AFFO so that it equaled the dividends declared by us in respect of our OP Units for the prior six months. For the year ended December 31, 2013, $14.0 million in asset management fees were incurred while $6.1 million of these fees were waived by our Former Manager. Subsequent to December 31, 2013, the management agreement was terminated as a result of our transition to self-management. See Note 23 — Subsequent Events for further discussion.
As our real estate portfolio matures and one-time acquisition and transaction expenses are significantly reduced, we expect cash flows from operations to cover a more significant portion of our dividends and over time to cover dividends.
Tax Status
We elected to be taxed as a REIT under Sections 856 through 860 of the Code, effective for our taxable year ended December 31, 2011. We believe that 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 as a REIT. Pursuant to our charter, our board of directors has the authority to make any tax elections on our behalf that, in their sole judgment, are in our best interest. This authority includes the ability to elect not to qualify as a REIT for U.S. federal income tax purposes or, after qualifying as a REIT, to revoke or otherwise terminate our status as a REIT. Our board of directors has the authority under our charter to make these elections without the necessity of obtaining the approval of our stockholders. In addition, our board of directors has the authority to waive any restrictions and limitations contained in our charter that are intended to preserve our status as a REIT during any period in which our board of directors has determined not to pursue or preserve our status as a REIT.

10

Competition
We are subject to competition in the acquisition of properties and intense competition in the leasing of our properties. We compete with a number of developers, owners and operators of retail, restaurant, industrial and office real estate, many of which own properties similar to ours in the same markets in which our properties are located, in the leasing of our properties. We also may face new competitors and, due to our focus on single-tenant properties located throughout the United States, and because many of our competitors are locally or regionally focused, we will not encounter the same competitors in each region of the United States.
Many of our competitors have greater financial and other resources and may have other advantages over our company. Our competitors may be willing to accept lower returns on their investments and may succeed in buying the properties that we have targeted for acquisition. We may also incur costs on unsuccessful acquisitions that we will not be able to recover.
Regulations
Our investments are subject to various federal, state, local and foreign laws, ordinances and regulations, including, among other things, zoning regulations, land use controls, environmental controls relating to air and water quality, noise pollution and indirect environmental impacts such as increased motor vehicle activity. We believe that we have all permits and approvals necessary under current law to operate our investments.
Environmental Matters
Under various federal, state and local environmental laws, a current owner of real estate may be required to investigate and clean up contaminated property. Under these laws, courts and government agencies have the authority to impose cleanup responsibility and liability even if the owner did not know of and was not responsible for the contamination. For example, liability can be imposed upon us based on the activities of our tenants or a prior owner. In addition to the cost of the cleanup, environmental contamination on a property may adversely affect the value of the property and our ability to sell, rent or finance the property, and may adversely impact our investment in that property.
Prior to acquisition of a property, we will obtain Phase I environmental reports, or will rely on recent Phase I environmental reports. These reports will be prepared in accordance with an appropriate level of due diligence based on our standards and generally include a physical site inspection, a review of relevant federal, state and local environmental and health agency database records, one or more interviews with appropriate site-related personnel, review of the property's chain of title and review of historic aerial photographs and other information on past uses of the property and nearby or adjoining properties. We may also obtain a Phase II investigation which may include limited subsurface investigations and tests for substances of concern where the results of the Phase I environmental reports or other information indicates possible contamination or where our consultants recommend such procedures.
Employees
As of December 31, 2013, we had 12 employees. On January 8, 2014, we successfully completed our transition to self-management. In connection with becoming self-managed, ARCP terminated its management agreement with its external manager and certain former executives and employees of our Former Manager became our employees. Subsequent to our transition to self-management on January 8, 2014 and including employees from the consummation of the Cole Merger, we had approximately 400 employees.
Financial Information About Industry Segments
Our current business consists of owning, managing, operating, leasing, acquiring, investing in and disposing of real estate assets. All of our consolidated revenues are from our consolidated real estate properties. We internally evaluate operating performance on an individual property level and view all of our real estate assets as one industry segment, and accordingly, all of our properties are aggregated into one reportable segment. Please see Part IV, Item 15 — Exhibits and Financial Statement Schedules included elsewhere in this annual report for more detailed financial information.
Available Information
We electronically file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports, and proxy statements, with the SEC. You may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, D.C. 20549, or you may obtain information by calling the SEC at 1-800-SEC-0330. The SEC maintains an internet address at http://www.sec.gov that contains reports, proxy statements and information statements, and other information, which you may obtain free of charge. In addition, copies of our filings with the SEC may be obtained from the website maintained for us at www.arcpreit.com.

11

Item 2. Properties
General
As of December 31, 2013, after giving effect to the properties owned by ARCT IV which we acquired on January 3, 2014 and are included in ARCP's recasted financial statements filed as part of this Form 8-K, we owned 2,559 properties, comprised of 43.8 million square feet and located in 49 states, the District of Columbia and Puerto Rico, excluding one vacant property classified as held for sale. Our properties were 99% occupied with a weighted-average remaining lease term of 9.4 years years as of December 31, 2013.
Industry Distribution
The following table details the industry distribution of our portfolio as of December 31, 2013 (dollars in thousands):
Industry
 
Number of Leases
 
Square Feet
 
Square Feet as a % of Total Portfolio
 
Annualized Rental Income
 
Annualized Rental Income as a % of Total Portfolio
Administrative & Support Services - Employment & Office Maintenance
 
1

 
126,664

 
0.3
%
 
$
443,000

 
0.1
%
Agricultural - Crop Farming
 
1

 
107,520

 
0.2
%
 
770

 
0.1
%
Billboard
 
5

 
—

 
—
%
 
46

 
—
%
Education - Other
 
1

 
194,665

 
0.4
%
 
1,734

 
0.3
%
Entertainment & Recreation - Fitness
 
1

 
45,906

 
0.1
%
 
1,319

 
0.2
%
Finance - Banking
 
263

 
1,643,951

 
3.8
%
 
38,717

 
7.0
%
Finance - Credit Card & Consumer Lending
 
6

 
350,948

 
0.8
%
 
5,424

 
1.0
%
Finance - Investment, Securities & Commodity
 
5

 
552,570

 
1.3
%
 
9,866

 
1.8
%
Government & Public Services - Other
 
21

 
663,031

 
1.5
%
 
18,544

 
3.4
%
Healthcare - Dental
 
2

 
5,834

 
—
%
 
100

 
—
%
Healthcare - Emergency & Medical Centers
 
38

 
496,645

 
1.2
%
 
9,091

 
1.6
%
Healthcare - Labratories & Diagnostics
 
2

 
243,117

 
0.6
%
 
3,077

 
0.6
%
Healthcare - Medical
 
1

 
22,708

 
0.1
%
 
506

 
0.1
%
Healthcare - Other
 
1

 
227,467

 
0.5
%
 
3,347

 
0.6
%
Information & Communications - Telecommunications
 
5

 
399,653

 
0.9
%
 
6,915

 
1.2
%
Insurance - Life
 
1

 
122,605

 
0.3
%
 
2,047

 
0.4
%
Insurance - Medical
 
1

 
100,352

 
0.2
%
 
4,233

 
0.8
%
Insurance - Property
 
10

 
977,675

 
2.2
%
 
13,787

 
2.5
%
Logistics - Packaging
 
1

 
221,035

 
0.5
%
 
1,480

 
0.3
%
Logistics - Postal & Delivery Services
 
42

 
2,465,312

 
5.6
%
 
24,074

 
4.4
%
Manufacturing - Aircraft & Aerospace
 
5

 
875,083

 
2.0
%
 
14,694

 
2.6
%
Manufacturing - Consumer Products
 
10

 
4,440,909

 
10.1
%
 
13,755

 
2.5
%
Manufacturing - Food
 
6

 
3,892,811

 
8.9
%
 
18,986

 
3.4
%
Manufacturing - Machinery & Heavy Equipment
 
1

 
552,960

 
1.3
%
 
2,353

 
0.4
%
Manufacturing - Medical
 
4

 
409,051

 
0.9
%
 
7,453

 
1.3
%
Manufacturing - Motor Vehicle
 
2

 
957,042

 
2.2
%
 
3,828

 
0.7
%
Manufacturing - Other
 
1

 
307,275

 
0.7
%
 
2,340

 
0.4
%
Mining & Natural Resources - Petroleum, Gas & Coal
 
1

 
308,586

 
0.7
%
 
5,338

 
1.0
%
Other Services - Automotive
 
2

 
11,518

 
—
%
 
234

 
—
%
Other Services - Beauty Salons & Spas
 
1

 
1,288

 
—
%
 
21

 
—
%
Other Services - Non-Profit Organizations
 
1

 
9,513

 
—
%
 
228

 
—
%
Other Services - Other
 
1

 
150,000

 
0.3
%
 
1,056

 
0.2
%

12

Industry
 
Number of Leases
 
Square Feet
 
Square Feet as a % of Total Portfolio
 
Annualized Rental Income
 
Annualized Rental Income as a % of Total Portfolio
Parking
 
1

 
8,400

 
—
%
 
1

 
—
%
Professional Services - Administrative & Management Consulting
 
6

 
1,458,581

 
3.4
%
 
20,638

 
3.8
%
Professional Services - Advertising
 
16

 
558,036

 
1.3
%
 
6,236

 
1.1
%
Professional Services - Media
 
2

 
216,285

 
0.5
%
 
2,817

 
0.5
%
Professional Services - Research & Development
 
1

 
223,912

 
0.5
%
 
695

 
0.1
%
Restaurants - Casual Dining
 
214

 
1,395,247

 
3.2
%
 
39,584

 
7.1
%
Restaurants - Family Dining
 
104

 
543,271

 
1.2
%
 
13,022

 
2.3
%
Restaurants - Premium Dining
 
1

 
9,354

 
—
%
 
98

 
—
%
Restaurants - Quick Service Restaurant
 
1,095

 
3,427,178

 
7.8
%
 
98,262

 
17.7
%
Retail - Apparel & Jewelry
 
3

 
1,324,855

 
3.1
%
 
12,843

 
2.3
%
Retail - Automotive
 
68

 
516,771

 
1.2
%
 
7,809

 
1.4
%
Retail - Department Stores
 
1

 
88,408

 
0.2
%
 
858

 
0.2
%
Retail - Discount
 
425

 
4,850,625

 
11.1
%
 
41,806

 
7.5
%
Retail - Gas & Convenience
 
37

 
160,850

 
0.4
%
 
8,553

 
1.5
%
Retail - Grocery & Supermarket
 
17

 
2,112,054

 
4.8
%
 
15,831

 
2.9
%
Retail - Home & Garden
 
18

 
3,247,129

 
7.4
%
 
20,707

 
3.7
%
Retail - Home Furnishings
 
22

 
136,396

 
0.3
%
 
3,896

 
0.7
%
Retail - Pharmacy
 
109

 
1,457,596

 
3.3
%
 
36,000

 
6.5
%
Retail - Specialty (Other)
 
2

 
315,230

 
0.7
%
 
1,920

 
0.3
%
Retail - Sporting Goods
 
5

 
292,645

 
0.7
%
 
3,459

 
0.7
%
Retail - Warehouse Clubs
 
1

 
108,532

 
0.2
%
 
883

 
0.2
%
Vacant
 
—

 
499,444

 
1.1
%
 
3,266

 
0.6
%
 
 
2,591

 
43,834,493

 
100.0
%
 
$
554,990

 
100.0
%
Geographical Distribution
The following table details the geographic distribution of our portfolio as of December 31, 2013 (dollars in thousands):
State/Possession
 
Number of Properties
 
Square Feet
 
Square Feet as a % of Total Portfolio
 
Annualized Rental Income
 
Annualized Rental Income as a % of Total Portfolio
Alabama
 
100

 
985,161

 
2.2
%
 
$
20,873

 
3.8
%
Alaska
 
1

 
2,805

 
—
%
 
121

 
—
%
Arizona
 
30

 
196,128

 
0.4
%
 
4,481

 
0.8
%
Arkansas
 
71

 
506,813

 
1.2
%
 
5,142

 
0.9
%
California
 
37

 
2,931,471

 
6.7
%
 
28,769

 
5.2
%
Colorado
 
29

 
738,801

 
1.7
%
 
13,923

 
2.5
%
Connecticut
 
15

 
60,437

 
0.1
%
 
1,922

 
0.3
%
Delaware
 
4

 
12,369

 
—
%
 
286

 
0.1
%
District of Columbia
 
1

 
3,210

 
—
%
 
44

 
—
%
Florida
 
149

 
2,209,983

 
5.0
%
 
32,125

 
5.8
%
Georgia
 
133

 
980,469

 
2.2
%
 
17,263

 
3.1
%
Idaho
 
14

 
101,853

 
0.2
%
 
3,429

 
0.6
%
Illinois
 
100

 
2,285,588

 
5.2
%
 
35,092

 
6.3
%
Indiana
 
69

 
3,994,003

 
9.1
%
 
24,799

 
4.5
%
Iowa
 
32

 
824,716

 
1.9
%
 
6,278

 
1.1
%

13

State/Possession
 
Number of Properties
 
Square Feet
 
Square Feet as a % of Total Portfolio
 
Annualized Rental Income
 
Annualized Rental Income as a % of Total Portfolio
Kansas
 
34

 
1,654,772

 
3.8
%
 
11,094

 
2.0
%
Kentucky
 
56

 
1,260,977

 
2.9
%
 
11,625

 
2.1
%
Louisiana
 
60

 
492,457

 
1.1
%
 
9,507

 
1.7
%
Maine
 
5

 
298,114

 
0.7
%
 
3,909

 
0.7
%
Maryland
 
15

 
502,064

 
1.1
%
 
3,775

 
0.7
%
Massachusetts
 
29

 
1,148,866

 
2.6
%
 
11,722

 
2.1
%
Michigan
 
121

 
1,100,961

 
2.5
%
 
19,636

 
3.5
%
Minnesota
 
24

 
300,507

 
0.7
%
 
2,643

 
0.5
%
Mississippi
 
51

 
1,423,664

 
3.2
%
 
9,965

 
1.8
%
Missouri
 
115

 
1,128,639

 
2.6
%
 
13,616

 
2.5
%
Montana
 
5

 
55,377

 
0.1
%
 
795

 
0.1
%
Nebraska
 
12

 
650,154

 
1.5
%
 
6,494

 
1.2
%
Nevada
 
14

 
116,743

 
0.3
%
 
2,628

 
0.5
%
New Hampshire
 
13

 
94,237

 
0.2
%
 
1,885

 
0.3
%
New Jersey
 
14

 
615,352

 
1.4
%
 
12,653

 
2.3
%
New Mexico
 
26

 
161,456

 
0.4
%
 
4,295

 
0.8
%
New York
 
56

 
555,634

 
1.3
%
 
12,619

 
2.3
%
North Carolina
 
110

 
1,616,820

 
3.7
%
 
20,004

 
3.6
%
North Dakota
 
5

 
39,248

 
0.1
%
 
1,052

 
0.2
%
Ohio
 
145

 
2,933,976

 
6.7
%
 
22,740

 
4.1
%
Oklahoma
 
37

 
769,462

 
1.8
%
 
9,829

 
1.8
%
Oregon
 
12

 
54,677

 
0.1
%
 
679

 
0.1
%
Pennsylvania
 
111

 
3,098,552

 
7.1
%
 
34,789

 
6.3
%
Puerto Rico
 
3

 
87,550

 
0.2
%
 
2,429

 
0.4
%
Rhode Island
 
13

 
161,642

 
0.4
%
 
3,260

 
0.6
%
South Carolina
 
78

 
812,541

 
1.9
%
 
10,749

 
1.9
%
South Dakota
 
5

 
84,414

 
0.2
%
 
781

 
0.1
%
Tennessee
 
95

 
787,940

 
1.8
%
 
13,933

 
2.5
%
Texas
 
312

 
3,795,939

 
8.7
%
 
59,481

 
10.7
%
Utah
 
6

 
23,527

 
0.1
%
 
692

 
0.1
%
Vermont
 
4

 
15,432

 
—
%
 
336

 
0.1
%
Virginia
 
73

 
1,011,320

 
2.3
%
 
18,842

 
3.4
%
Washington
 
13

 
405,633

 
0.9
%
 
8,660

 
1.6
%
West Virginia
 
33

 
167,244

 
0.4
%
 
3,440

 
0.6
%
Wisconsin
 
60

 
516,631

 
1.2
%
 
8,735

 
1.6
%
Wyoming
 
9

 
58,164

 
0.1
%
 
1,151

 
0.2
%
 
 
2,559

 
43,834,493

 
100.0
%
 
$
554,990

 
100.0
%

14

Property Type
The following table details the property type of our portfolio as of December 31, 2013 (dollars in thousands):
Property Type
 
Number of Properties
 
Square Feet
 
Square Feet as a % of Total Portfolio
 
Annualized Rental Income
 
Annualized Rental Income as a % of Total Portfolio
Retail
 
2,381

 
15,026,368

 
34.3
%
 
$
301,524

 
54.3
%
Office
 
102

 
9,006,915

 
20.6
%
 
145,060

 
26.1
%
Distribution
 
66

 
19,561,645

 
44.6
%
 
106,830

 
19.3
%
Parking Lot
 
1

 
8,400

 
—
%
 
1

 
—
%
Billboard
 
5

 
—

 
—
%
 
48

 
—
%
Industrial
 
4

 
231,165

 
0.5
%
 
1,527

 
0.3
%
 
 
2,559

 
43,834,493

 
100.0
%
 
$
554,990

 
100.0
%
Property Financing
Our mortgage notes payable consist of the following as of December 31, 2013 and 2012 (dollar amounts in thousands):
 
 
Encumbered Properties
 
Outstanding Loan Amount
 
Weighted-Average
Effective Interest Rate (1)
 
Weighted-Average Maturity (2)
December 31, 2013
 
177

 
$
1,258,661

 
3.42
%
 
3.41
December 31, 2012
 
164

 
$
265,118

 
4.28
%
 
5.51
_______________________________________________
(1)
Mortgage notes payable have fixed rates or are fixed by way of interest rate swap arrangements. Effective interest rates range from 1.83% to 6.28% at December 31, 2013 and 3.32% to 6.13% at December 31, 2012.
(2)
Weighted-average remaining years until maturity as of December 31, 2013 and 2012, respectively.
As part of the CapLease Merger, we assumed a secured credit facility with Wells Fargo, National Association (the "Secured Credit Facility"), which had commitments of up to $150.0 million at December 31, 2013. The Secured Credit Facility was fully drawn with $150.0 million outstanding at December 31, 2013.
The borrowings under the Secured Credit Facility bear interest at an annual rate of one-month LIBOR or LIBOR based on an interest period of one, three or six months, at our election, plus an applicable margin of 2.75%, payable quarterly in arrears. The Secured Credit Facility matures on December 31, 2014 and may be prepaid, in whole or in part, without premium or penalty, at our option, at any time.
In addition, we have financing, which is not secured by interests in real property, which is described under Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

15

Future Minimum Lease Payments
The following table presents future minimum base rental cash payments due to us over the next 10 years. 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 (amounts in thousands):
 
 
Future Minimum Base Rent Payments
2014
 
$
527,965

2015
 
517,861

2016
 
501,637

2017
 
464,615

2018
 
428,389

2019
 
399,486

2020
 
378,893

2021
 
347,657

2022
 
318,967

2023
 
263,388

Thereafter
 
1,036,460

 
 
$
5,185,318

Future Lease Expirations
The following is a summary of lease expirations for the next 10 years at the properties we own as of December 31, 2013 (dollar amounts in thousands):
Year of Expiration
 
Number of Leases Expiring
 
Square Feet
 
Square Feet as a % of Total Portfolio
 
Annualized Rental Income Expiring
 
Annualized Rental Income Expiring as a % of Total Portfolio
2014
 
95

 
1,312,901

 
3.00
%
 
$
13,519

 
2.44
%
2015
 
134

 
1,949,644

 
4.45
%
 
22,094

 
3.98
%
2016
 
122

 
1,798,220

 
4.10
%
 
27,373

 
4.93
%
2017
 
225

 
4,363,294

 
9.95
%
 
51,443

 
9.27
%
2018
 
189

 
1,842,608

 
4.20
%
 
28,955

 
5.22
%
2019
 
115

 
970,126

 
2.21
%
 
23,806

 
4.29
%
2020
 
128

 
1,511,798

 
3.45
%
 
26,845

 
4.84
%
2021
 
103

 
3,204,582

 
7.31
%
 
30,108

 
5.42
%
2022
 
181

 
6,786,771

 
15.48
%
 
52,309

 
9.44
%
2023
 
132

 
3,726,446

 
8.50
%
 
40,485

 
7.29
%
 
 
1,424

 
27,466,390

 
62.65
%
 
$
316,937

 
57.12
%

16

PART II

Item 6. Selected Financial Data.
The following selected financial data should be read in conjunction with the accompanying consolidated financial statements and related notes thereto and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" below.
Balance sheet data (amounts in thousands):
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
Total real estate investments, at cost
 
$
7,450,699

 
$
1,875,268

 
$
209,326

 
$
—

Total assets
 
7,807,979

 
2,182,195

 
221,578

 
279

Mortgage notes payable, net
 
1,301,114

 
265,118

 
35,320

 
—

Senior secured revolving credit facility
 
—

 
124,604

 
42,407

 
—

Senior corporate credit facilities
 
1,819,800

 
—

 
—

 
 
Convertible debt, net
 
972,490

 
—

 
—

 
—

Other debt
 
254,804

 
—

 
—

 
—

Total liabilities
 
5,285,446

 
513,435

 
80,790

 
279

Total equity
 
2,253,234

 
1,668,760

 
140,788

 
—


17

Operating data (amounts in thousands except share and per share data):
 
 
Year ended December 31,
 
Period from December 2, 2010 (Date of Inception) to December 31, 2010
 
 
2013
 
2012
 
2011
 
Revenues:
 
 
 
 
 
 
 
 
Rental income
 
$
309,839

 
$
65,187

 
$
3,762

 
$
—

Direct financing lease income
 
2,244

 
—

 
—

 
—

Operating expense reimbursements
 
17,795

 
2,020

 
208

 
—

Total revenues
 
329,878

 
67,207

 
3,970

 
—

 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
Acquisition related
 
76,136

 
45,070

 
3,898

 
—

Merger and other transaction related
 
278,319

 
2,603

 
—

 
—

Property operating
 
23,616

 
3,522

 
220

 
—

Operating fees to affiliates
 
5,654

 
212

 
—

 
—

General and administrative
 
10,645

 
4,215

 
735

 
—

Equity-based compensation
 
34,962

 
1,197

 
—

 
—

Depreciation and amortization
 
211,372

 
41,003

 
2,111

 
—

Total operating expenses
 
640,704

 
97,822

 
6,964

 
—

Operating income (loss)
 
(310,826
)
 
(30,615
)
 
(2,994
)
 
—

Other (expense) income:
 
 
 
 
 
 
 
 
Interest expense
 
(102,305
)
 
(11,856
)
 
(960
)
 
—

Loss on derivative instruments, net
 
(67,946
)
 
—

 
—

 
—

Other (expense) income, net
 
641

 
979

 
2

 
—

Total other expenses, net
 
(169,610
)
 
(10,877
)
 
(958
)
 
—

Income (loss) from continuing operations
 
(480,436
)
 
(41,492
)
 
(3,952
)
 
—

Income (loss) from discontinued operations attributable to stockholders
 
(20
)
 
(745
)
 
(852
)
 
—

Net loss
 
(480,456
)
 
(42,237
)
 
(4,804
)
 
—

Net loss (income) attributable to non-controlling interest
 
5,716

 
301

 
105

 
—

Net loss attributable to stockholders
 
$
(474,740
)
 
$
(41,936
)
 
$
(4,699
)
 
$
—

 
 
 
 
 
 
 
 
 
Other data:
 
 
 
 
 
 
 
 
Cash flows provided (used in) by operating activities
 
$
12,769

 
$
9,440

 
$
(257
)
 
$
—

Cash flows used in investing activities
 
$
(4,542,759
)
 
$
(1,701,422
)
 
$
(89,981
)
 
$
—

Cash flows provided by financing activities
 
$
4,290,140

 
$
1,965,226

 
$
109,569

 
$
—

Per share data:
 
 
 
 
 
 
 
 
Basic net income (loss) per share from continuing operations attributable to stockholders
 
$
(2.33
)
 
$
(0.40
)
 
$
(1.04
)
 
$
—

Diluted net income (loss) per share attributable to stockholders
 
$
(2.33
)
 
$
(0.41
)
 
$
(1.26
)
 
$
—

Annualized distributions declared per common share
 
$
0.910

 
$
0.884

 
$
0.875

 
$
—

Weighted-average number of common shares outstanding, basic
 
205,341,431

 
103,306,366

 
3,720,351

 
—

Weighted-average number of common shares outstanding, fully diluted(1)
 
205,341,431

 
103,306,366

 
3,720,351

 
—

______________________________
(1) For the years ended December 31, 2013, 2012, 2011 and the period ended December 31, 2010, the effect of dilutive shares were excluded from the weighted-average share calculation as the effect would be anti-dilutive.


18

Item 7. 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 Properties, Inc. (the "Company" or "ARCP") and the notes thereto. As used herein, the terms "we," "our" and "us" refer to American Realty Capital Properties, Inc., a Maryland corporation, and, as required by context, to ARC Properties Operating Partnership, L.P. (the "OP"), a Delaware limited partnership and its subsidiaries. As of December 31, 2013, American Realty Capital Properties, Inc. was still externally managed by ARC Properties Advisors, LLC (our "Former Manager"), a Delaware limited liability company and a wholly owned subsidiary of AR Capital, LLC ("ARC").
Overview
We were incorporated on December 2, 2010, as a Maryland corporation that qualified as a real estate investment trust for U.S. federal income tax purposes beginning in the year ended December 31, 2011. On September 6, 2011, we completed our IPO and our shares of common stock began trading on the NASDAQ Global Select Market ("NASDAQ") under the symbol "ARCP".
We acquire, own and operate single-tenant, freestanding commercial real estate properties, primarily subject to net leases with high credit quality tenants. We focus on investing in properties that are net leased to (i) credit tenants, which are generally large public companies with investment-grade ratings and other creditworthy tenants and (ii) governmental, quasi-governmental and not-for-profit entities. Our long-term business strategy is to acquire a diverse portfolio consisting of approximately 70% long-term leases and 30% medium-term leases, with an average remaining lease term of 10 to 12 years. We expect this investment strategy to provide for stable income from credit tenants and to provide for growth opportunities from re-leasing of current below market leases.
We have advanced our investment objectives by growing our net lease portfolio through strategic mergers and acquisitions. See Note 2 to the consolidated financial statements.
Substantially all of our business is conducted through our OP. We are the sole general partner and holder of 96.1% of the equity interest in the OP as of December 31, 2013. Certain affiliates of ours and certain unaffiliated investors are limited partners and owners of 3.3% and 0.6%, respectively, of the equity interest in our OP. After holding units of limited partner interests in our OP ("OP Units") for a period of one year, holders of OP Units have the right to convert limited partner interest in the OP for the cash value of a corresponding number of shares of our common stock or, at the option of our OP, a corresponding number of shares of our common stock, as allowed by the limited partnership agreement of our OP. The remaining rights of the holders of OP Units are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of our OP's assets.
During the year ended December 31, 2013, we retained our Former Manager to manage our affairs on a day-to-day basis and, as a result, were generally externally managed, with the exception of certain acquisition, accounting and portfolio management services performed by our employees. In August 2013, our board of directors determined that it was in the best interests of us and our stockholders to become self-managed, and we completed our transition to self-management on January 8, 2014. In connection with becoming self-managed, we terminated the existing management agreement with our Former Manager, entered into employment and incentive compensation arrangements with our executives and acquired from our Former Manager certain assets necessary for our operations. See Note 23 — Subsequent Events for further discussion.
As of December 31, 2013, excluding one vacant property classified as held for sale, we owned 2,559 properties consisting of 43.8 million square feet that were 99% leased with a weighted-average remaining lease term of 9.4 years. In constructing our portfolio, we are committed to diversification (industry, tenant and geography). As of December 31, 2013, rental revenues derived from investment grade tenants and tenants affiliated with investment grade entities, as determined by major credit rating agencies, approximated 56% (we have attributed the rating of each parent company to its wholly owned subsidiary for purposes of this disclosure). Our strategy encompasses receiving the majority of our revenue from investment grade tenants as we further acquire properties and enter into (or assume) lease arrangements.
Completed Mergers and Major Acquisitions
American Realty Capital Trust III, Inc. Merger
On December 14, 2012, we entered into the ARCT III Merger Agreement with ARCT III and certain subsidiaries of each company. The ARCT III Merger Agreement provided for the merger of ARCT III with and into a subsidiary of ours. The ARCT III Merger was consummated on February 28, 2013.
Pursuant to the terms and subject to the conditions set forth in the ARCT III Merger Agreement, each outstanding share of common stock of ARCT III, including restricted shares which became vested, was converted into the right to receive (i) 0.95 of a share of our common stock, or (ii) $12.00 in cash. In addition, each outstanding unit of equity ownership of the ARCT III OP was converted into the right to receive 0.95 of the same class of unit of equity ownership in our OP.

19

Upon the closing of the ARCT III Merger, on February 28, 2013, 29.2 million shares, or 16.5% of the then outstanding shares of ARCT III's common stock were received in cash consideration at $12.00 per share, which is equivalent to 27.7 million shares of our common stock based on the ARCT III Exchange Ratio. In addition, 148.1 million shares of ARCT III's common stock were converted to shares of our common stock at the Exchange Ratio, resulting in an additional 140.7 million shares of our common stock outstanding after the exchange.
Upon the consummation of the ARCT III Merger, American Realty Capital Trust III Special Limited Partner, LLC, the holder of the special limited partner interest in the ARCT III OP, was entitled to subordinated distributions of net sales proceeds from ARCT III OP which resulted in the issuance of units of limited partner interests in the ARCT III OP, when after applying the Exchange Ratio, resulted in the issuance of an additional 7.3 million OP Units to affiliates of our Former Manager. The parties had agreed that such OP Units would be subject to a minimum one-year holding period before being exchangeable into our common stock.
Also in connection with the ARCT III Merger, we entered into an agreement with ARC and its affiliates to internalize certain functions performed by them prior to the ARCT III Merger, reduce certain fees paid to affiliates, purchase certain corporate assets and pay certain merger related fees. See Note 18 — Related Party Transactions and Arrangements.
Accounting Treatment of the ARCT III Merger
We and ARCT III, from inception to the ARCT III Merger date, were considered to be entities under common control. Both entities' advisors were wholly owned subsidiaries of ARC. ARC and its related parties had significant ownership interests in us and had significant ownership of ARCT III through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities were contractually eligible to charge potential fees for their services to both of the companies including asset management fees, incentive fees and other fees and continue to charge fees to us. Due to the significance of these fees, the advisors and ultimately ARC was determined to have a significant economic interest in both companies in addition to having the power to direct the significant activities of the companies through advisory/management agreements, which qualified them as affiliated companies under common control in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the ARCT III Merger date. In addition, U.S. GAAP requires us to present historical financial information as if the merger had occurred as of the beginning of the earliest period presented. Therefore, the accompanying financial statements including the notes thereto are presented as if the ARCT III Merger had occurred on January 1, 2011.
GE Capital Portfolio Acquisition
On June 27, 2013, we, through subsidiaries of the OP, acquired, from certain affiliates of GE Capital Corp., the equity interests in the entities that own a real estate portfolio comprised of 447 properties, (the "GE Capital Portfolio") for a purchase price of $773.9 million exclusive of closing costs. The 447 properties are subject to 409 property operating leases, as well as 38 direct financing leases.
During the year ended December 31, 2013, ARCT IV acquired, from certain affiliates of GE Capital Corp., the equity interests in the entities that own a real estate portfolio comprised of 924 properties (the "ARCT IV GE Capital Portfolio") for a purchase price of $1.4 billion, exclusive of closing costs, with no liabilities assumed. The 924 properties are subject to 912 property operating leases, as well as 12 direct financing leases.
CapLease, Inc. Merger
On May 28, 2013, we entered into the CapLease Merger Agreement with CapLease and certain subsidiaries of each company. The CapLease Merger Agreement provided for the merger of CapLease with and into a subsidiary of ours.
On November 5, 2013, we completed the merger with CapLease based on the terms of the CapLease Merger Agreement. Pursuant to the terms set forth in the CapLease Merger Agreement, at the effective time of the CapLease Merger, each outstanding share of common stock of CapLease, other than shares owned by us, CapLease or any of their respective wholly owned subsidiaries, was converted into the right to receive $8.50. Each outstanding share of preferred stock of CapLease, other than shares owned by us, CapLease or any of their respective wholly owned subsidiaries, was converted into the right to receive an amount in cash, equal to the sum of $25.00 plus all accrued and unpaid dividends on such shares of preferred stock. In addition, in connection with the merger of CapLease, LP with and into the OP (the "CapLease Partnership Merger"), each outstanding unit of equity ownership of CapLease's operating partnership other than units owned by CapLease or any wholly owned subsidiary of CapLease was converted into the right to receive $8.50. Shares of CapLease's outstanding restricted stock were accelerated and became fully vested, and restricted stock and any outstanding performance shares were fully earned and received $8.50 per share. In total, cash consideration of $920.7 million was paid to the common and preferred stockholders of CapLease.

20

Accounting Treatment for the CapLease Merger
The CapLease Merger has been accounted for under the acquisition method of accounting under U.S. GAAP. Under the acquisition method of accounting, the assets acquired and liabilities assumed from CapLease have been recorded as of the acquisition date at their respective fair values. Any excess of purchase price over the fair values will be recorded as goodwill. Results of operations for CapLease will be included in our consolidated financial statements from the date of acquisition. See Note 5 — CapLease Acquisition.
American Realty Capital Trust IV, Inc. Merger
On July 1, 2013, we entered into ARCT IV Merger Agreement with ARCT IV and certain subsidiaries of each company. The ARCT IV Merger Agreement provided for the merger of ARCT IV with and into a subsidiary of the OP. We consummated the ARCT IV Merger on January 3, 2014.
Pursuant to the terms of the ARCT IV Merger Agreement, as amended, each outstanding share of common stock of ARCT IV, including unvested restricted shares that vested in conjunction with the ARCT IV Merger, was exchanged for (i) $9.00 in cash, (ii) 0.5190 of a share of the Company's common stock (the "ARCT IV Exchange Ratio") and (iii) 0.5937 of a share of a new series of preferred stock of the Company designated as the 6.70% Series F Cumulative Redeemable Preferred Stock ("Series F Preferred Stock") and each outstanding unit of ARCT IV's operating partnership ("ARCT IV OP Unit"), other than ARCT IV OP Units held by the American Realty Capital Trust IV Special Limited Partner, LLC, (the "ARCT IV Special Limited Partner") and American Realty Capital Advisors IV, LLC (the "ARCT IV Advisor") was exchanged for (i) $9.00 in cash, (ii) 0.5190 of an OP Unit and (iii) 0.5937 of a OP Unit designated as Series F Preferred Units ("Series F OP Units"). In total, the Company paid $650.9 million in cash, issued 36.9 million shares of common stock and 42.2 million shares of Series F Preferred Stock, and issued 0.7 million units of Series F OP units and 0.6 million OP Units to the former ARCT IV shareholders and ARCT IV OP Unit holders in connection with the consummation of the ARCT IV Merger. In addition, each outstanding ARCT IV Class B Unit (as defined below) and each outstanding ARCT IV OP Unit held by the ARCT IV Special Limited Partner and the ARCT IV Advisor was converted into 2.3961 OP Units, resulting in the Company issuing 1.2 million OP Units.
In connection with the ARCT IV Merger and pursuant to the terms of the agreement of limited partnership of ARCT IV's operating partnership, ARCT IV's external advisor received subordinated distributions of net sales proceeds in an approximate amount of $63.2 million. Such subordinated distributions of net sales proceeds were paid in the form of equity units of ARCT IV's operating partnership that were automatically converted into 6.7 million OP Units upon the consummation of the ARCT IV Merger and are subject to a minimum two-year holding period from the date of issuance before being exchangeable into our common stock.
Accounting Treatment of the ARCT IV Merger
We and ARCT IV were considered to be entities under common control. Both entities' advisors are wholly owned subsidiaries of ARC. ARC and its related parties had ownership interests in us and ARCT IV through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities were contractually eligible to charge potential fees for their services to both of the companies including asset management fees, incentive fees and other fees and will continue to charge fees to us following the ARCT IV Merger. Due to the significance of these fees, the advisors and ultimately ARC were determined to have a significant economic interest in both companies in addition to having the power to direct the activities of the companies through advisory/management agreements, which qualified them as affiliated companies under common control in accordance with U.S. GAAP. The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the ARCT IV Merger date. In addition, U.S. GAAP requires us to present historical financial information as if the entities were combined for each period presented. Therefore, the accompanying financial statements including the notes thereto are presented as if the ARCT IV Merger had occurred on January 1, 2011.
Fortress Portfolio Acquisition
On July 24, 2013, ARC and another related entity, on our behalf and certain other entities sponsored directly or indirectly by ARC, entered into a purchase and sale agreement with affiliates of funds managed by Fortress Investment Group LLC ("Fortress") for the purchase and sale of 196 properties owned by Fortress for an aggregate contract purchase price of $972.5 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs, which were allocated to us based on the pro rata fair value of the properties acquired by us relative to the fair value of all 196 properties to be acquired from Fortress. Of the 196 properties, 120 properties were allocated to us (the "Fortress Portfolio"). On October 1, 2013, we closed on 41 of the 120 properties with a total purchase price of $200.3 million, exclusive of closing costs. We closed the acquisition of the remaining 79 properties in the Fortress Portfolio on January 8, 2014, for an aggregate contract purchase price of $400.9 million, exclusive of closing costs. The total purchase price of the Fortress Portfolio was $601.2 million, exclusive of closing costs. During the year ended December 31, 2013, we deposited $72.2 million into escrow in relation to the Fortress Portfolio, which has been included in prepaid expenses and other assets in the consolidated balance sheets.

21

Cole Real Estate Investments, Inc. Merger
On October 22, 2013, we entered into an agreement and plan of merger (the "Cole Merger Agreement") with Cole Real Estate Investments, Inc. ("Cole"), a Maryland corporation, and a wholly owned subsidiary of ours. The Cole Merger Agreement provided for the merger of Cole with and into the wholly owned subsidiary (the "Cole Merger"). We consummated the Cole Merger on February 7, 2014 (the "Cole Acquisition Date").
Pursuant to the terms of the Cole Merger Agreement, each share of common stock of Cole issued and outstanding immediately prior to the effectiveness of the Cole Merger, including unvested restricted stock units ("RSUs") and performance stock units that vested in conjunction with the Cole Merger was converted into the right to receive either (i) 1.0929 shares of our common stock, par value $0.01 per share, (the "Stock Consideration") or (ii) $13.82 in cash (the "Cash Consideration" and together with the Stock Consideration, the "Merger Consideration"). Approximately 98% of all outstanding Cole holders received Stock Consideration and approximately 2% of outstanding Cole shares elected to receive Cash Consideration, pursuant to the terms of the Cole Merger Agreement, resulting in the us issuing approximately 520.8 million shares of our common stock and paying $181.8 million to holders of Cole shares based on their elections.
In addition, the Company issued approximately 2.8 million shares of our common stock, in the aggregate, to certain executives of Cole pursuant to letter agreements entered into between us and such individuals concurrently with the execution of the Cole Merger Agreement, as previously disclosed. Additionally, effective as of the Cole Acquisition Date, we issued, but has not yet allocated, 0.4 million shares with dividend equivalent rights commensurate with the our common stock.
We are in the process of gathering certain additional information in order to finalize its assessment of the fair value of the consideration transferred; thus, the fair values of currently recorded assets and liabilities are subject to change. The estimated fair value of the consideration transferred at the Cole Acquisition Date totaled approximately $7.5 billion and consisted of the following (in thousands):
 
As of Cole Acquisition
Date (Preliminary)
Estimated Fair Value of Consideration Transferred:
 
Cash
$
181,775

Common stock
7,285,868

Total consideration transferred
$
7,467,643

The fair value of the 520.8 million shares of common stock issued, excluding those common shares transferred to former Cole executives, was determined based on the closing market price of our common stock on the Cole Acquisition Date.
Accounting Treatment for the Cole Merger
The Cole Merger will be accounted for under the acquisition method of accounting under U.S. GAAP. Under the acquisition method of accounting, the assets acquired and liabilities assumed from Cole will be recorded as of the acquisition date at their respective fair values. Any excess of purchase price over the fair values will be recorded as goodwill. Results of operations for Cole will be included in our consolidated financial statements from the date of acquisition.
Inland Portfolio Acquisition
On August 8, 2013, ARC entered into a purchase and sale agreement with Inland American Real Estate Trust, Inc. ("Inland") for the purchase and sale of the equity interests of 67 companies owned by Inland for an aggregate contract purchase price of $2.3 billion, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs. Of the 67 companies, the equity interests of ten companies (the "Inland Portfolio") will be acquired, in total, by us from Inland for a purchase price of $501.0 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs, which was allocated to us based on the pro rata fair value of the Inland Portfolio relative to the fair value of all 67 companies to be acquired from Inland by us and the other entities sponsored directly or indirectly by ARC. The Inland Portfolio is comprised of 33 properties. As of December 31, 2013, we had closed on five of the 33 properties for a total purchase price of $56.4 million, exclusive of closing costs. We closed the acquisition of 27 additional properties in the Inland Portfolio subsequent to December 31, 2013. We do not consider it probable that we will close on the remaining property.
The operating results for the year ended December 31, 2013 do not address the impact of the Cole Merger and the acquisitions of the Fortress and Inland Portfolios, which closed after December 31, 2013, and do not include the other recent organic acquisitions that were acquired subsequent to December 31, 2013. Accordingly, the operating results in 2013 are not indicative of our future operating results.

22

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 include:
Revenue Recognition
Upon the acquisition of real estate, certain properties will have leases where minimum rent payments increase during the term of the lease. We will record rental revenue for the full term of each lease on a straight-line basis. When we acquire a property, the term of existing leases is considered to commence as of the acquisition date for the purposes of this calculation. Cost recoveries from tenants are included in tenant reimbursement income in the period the related costs are incurred, as applicable.
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 the 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. We defer the revenue related to lease payments received from tenants in advance of their due dates.
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. In the event that the collectability of a receivable is in doubt, we will record an increase in the allowance for uncollectible accounts or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss. As of December 31, 2013 and 2012, we determined that no allowance for uncollectible accounts was necessary.
Real Estate Investments
We record acquired real estate at cost and make assessments as to the useful lives of depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful life of 40 years for buildings, five to 15 years for building fixtures and improvements and the remaining lease term for acquired intangible lease assets.
Allocation of Purchase Price of Business Combinations and Acquired Assets
In accordance with the guidance for business combinations, we determine whether a transaction or other event is a business combination. If the transaction is determined to be a business combination, we determine if the transaction is considered to be between entities under common control. The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the merger date. All other business combinations are accounted for by applying the acquisition method of accounting. Under the acquisition method, we recognize the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired entity. In addition, we evaluate the existence of goodwill or a gain from a bargain purchase. We will immediately expense acquisition-related costs and fees associated with business combinations and asset acquisitions.
We allocate the purchase price of acquired properties and business combinations accounted for under the acquisition method of accounting to tangible and identifiable intangible assets acquired based on their respective fair values to tangible and identifiable intangible assets acquired based on their respective fair values. Tangible assets include land, buildings, equipment and tenant improvements on an as-if vacant basis. We utilize various estimates, processes and information to determine the as-if vacant property value. Estimates of value are made using customary methods, including data from appraisals, comparable sales, discounted cash flow analysis and other methods. Identifiable intangible assets include amounts allocated to acquire leases for above- and below-market lease rates, the value of in-place leases, and the value of customer relationships.
Amounts allocated to land, buildings, equipment and fixtures are based on cost segregation studies performed by independent third-parties or on our analysis of comparable properties in its portfolio.
The aggregate value of intangible assets related to in-place leases is primarily the difference between the property valued with existing in-place leases adjusted to market rental rates and the property valued as if vacant. Factors considered by us in our analysis of the in-place lease intangibles include an estimate of carrying costs during the expected lease-up period for each property, taking into account current market conditions and costs to execute similar leases. In estimating carrying costs, we include real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up period, which typically ranges from six to 18 months. We also estimate costs to execute similar leases including leasing commissions, legal and other related expenses.

23

Above-market and below-market in-place lease values for owned properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management's estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market lease intangibles are amortized as a decrease to rental income over the remaining term of the lease. The capitalized below-market lease values are amortized as an increase to rental income over the remaining term and any fixed rate renewal periods provided within the respective leases. In determining the amortization period for below-market lease intangibles, we initially will consider, and periodically evaluate on a quarterly basis, the likelihood that a lessee will execute the renewal option. The likelihood that a lessee will execute the renewal option is determined 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.
The fair value of investments and debt are valued using techniques consistent with those disclosed in Note 9 — Fair Value of Financial Instruments, depending on the nature of the investment or debt. The fair value of all other assumed assets and liabilities based on the best information available.
The aggregate value of intangibles assets related to customer relationships is measured based on our evaluation of the specific characteristics of each tenant's lease and our overall relationship with the tenant. Characteristics considered by us in determining these values include the nature and extent of our existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant's credit quality and expectations of lease renewals, among other factors.
The value of in-place leases is amortized to expense over the initial term of the respective leases, which range primarily from two to 20 years. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event does the amortization period for intangible assets exceed the remaining depreciable life of the building. If a tenant terminates its lease, the unamortized portion of the in-place lease value and customer relationship intangibles is charged to expense.
In making estimates of fair values for purposes of allocating purchase price, we utilize a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property and other market data. We also consider information obtained about each property as a result of its pre-acquisition due diligence, as well as subsequent marketing and leasing activities, in estimating the fair value of the tangible and intangible assets acquired and intangible liabilities assumed.
Derivative Instruments
We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. Certain of the techniques used to hedge exposure to interest rate fluctuations may also be used to protect against declines in the market value of assets that result from general trends in debt markets. The principal objective of such agreements is to minimize the risks and/or costs associated with our operating and financial structure as well as to hedge specific anticipated transactions.
We record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain of our risk, even though hedge accounting does not apply or we elect not to apply hedge accounting.
The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designed and qualifies for hedge accounting treatment. If we elect not to apply hedge accounting treatment, any changes in the fair value of these derivative instruments is recognized immediately in gains (losses) on derivative instruments in the consolidated statements of operations and comprehensive loss. If the derivative is designated and qualifies for hedge accounting treatment the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) to the extent that it is effective. Any ineffective portion of a derivative's change in fair value will be immediately recognized in earnings.
Recently Issued Accounting Pronouncements
Recently issued accounting pronouncements are described in Note 3 — Summary of Significant Accounting Policies.

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Results of Operations
As of December 31, 2013, we owned 2,559 properties with an aggregate original base purchase price of $7.4 billion, excluding one vacant property classified as held for sale. As of December 31, 2013, the 2,559 properties comprised 43.8 million square feet that were 99% leased. As of December 31, 2012, we owned 702 properties with an aggregate original base purchase price of $1.9 billion, excluding one vacant property that was classified as held for sale. As of December 31, 2012, the 702 properties comprised 15.8 million square feet that were 100% leased. Accordingly, our results of operations for the year ended December 31, 2013 as compared to the year ended December 31, 2012 reflect significant increases in most categories.
Comparison of the Year Ended December 31, 2013 to the Year Ended December 31, 2012
Rental Income
Rental income increased $244.6 million to $309.8 million for the year ended December 31, 2013 compared to $65.2 million for the year ended December 31, 2012. Rental income was driven by our acquisition of 1,807 properties, which excludes 50 properties that are accounted for as direct financing leases, acquired during the year ended December 31, 2013 for an aggregate purchase price of $5.5 billion. The annualized rental income per square foot of the properties at December 31, 2013 was $12.66 with a weighted-average remaining lease term of 9.4 years, compared to $9.59 per square foot at December 31, 2012.
Our properties are generally leased from two to 20 years and 56% are leased to investment grade tenants and affiliates of investment grade tenants, as determined by major credit rating agencies. Cash same store rents on the 129 properties held for the full period in each of the years ended December 31, 2013 and 2012 increased $0.2 million, or 1.3%, to $16.2 million compared to $16.0 million for the years ended December 31, 2013 and 2012, respectively. Same store annualized average rental income per square foot was $11.37 at December 31, 2013 compared to $11.23 at December 31, 2012.
Direct Financing Lease Income
Direct financing lease income of $2.2 million was recognized for the year ended December 31, 2013. Direct financing lease income was primarily driven by our 2013 acquisition of 50 properties comprised of $66.1 million of net investments subject to direct financing leases during the year ended December 31, 2013.
Operating Expense Reimbursements
Operating expense reimbursements increased by $15.8 million to $17.8 million for the year ended December 31, 2013 compared to $2.0 million for the year ended December 31, 2012. Operating expense reimbursements represent reimbursements for taxes, property maintenance and other charges contractually due from tenants per their respective leases. Operating expense reimbursements were driven by our acquisition of 1,807 properties since December 31, 2012.
Acquisition Related Expenses
Acquisition related costs increased by $31.0 million to $76.1 million for the year ended December 31, 2013 compared to $45.1 million for the year ended December 31, 2012. Acquisition expenses mainly consisted of legal costs, deed transfer costs and other costs related to real estate purchase transactions. The increase is driven by our acquisition of 1,807 properties during the year ended December 31, 2013 compared to 573 during the year ended December 31, 2012. This increase was offset by the agreement with our Former Manager in conjunction with the ARCT III Merger, where it was agreed that our Former Manager would no longer charge acquisition fees. Subsequent to December 31, 2013, the management agreement was terminated as a result of our transition to self-management. See Note 23 — Subsequent Events for further discussion.
Merger and Other Transaction Related Expenses
Expenses related to various mergers, as well as other transaction expenses, increased by $275.7 million to $278.3 million for the year ended December 31, 2013 compared to $2.6 million for the year ended December 31, 2012. Upon the consummation of the ARCT III Merger, an affiliate of ARCT III received a subordinated incentive distribution upon the attainment of certain performance hurdles. For the year ended December 31, 2013, $98.4 million was recorded for this fee. We issued 7.3 million OP Units to the affiliate as compensation for this fee. In addition, merger and other transaction related expenses for the year ended December 31, 2013 included $109.4 million in legal fees, professional fees, printing fees, proxy services, debt assumption fees and other costs associated with entering into and completing the mergers. During the year ended December 31, 2013, we also recorded one-time equity-based compensation totaling $59.4 million relating to accelerating the vesting of OP units in relation to our transition to self-management, one-time equity-based compensation of $2.7 million relating to accelerating restricted share amortization resulting from our consummation of the Cole Merger and $8.5 million of other internalization costs. During the year ended December 31, 2012, the $2.6 million of merger and other transaction related expenses primarily related to the merger with ARCT III announced in December 2012. These costs consisted of legal fees, accountants fees and other costs associated with entering into the ARCT III merger agreements.

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Property Operating Expenses
Property expenses increased by $20.1 million to $23.6 million for the year ended December 31, 2013 compared to $3.5 million for the year ended December 31, 2012. These costs relate to expenses associated with maintaining certain properties, including real estate taxes, ground lease rent, insurance and repairs and maintenance expenses. The increase in property expenses are mainly due to our acquisition of properties with modified gross leases subsequent to December 31, 2012, and an increased number of properties for which we pay expenses, which are reimbursed by the tenant.
Operating Fees to Affiliate
Prior to the consummation of the ARCT III Merger, we paid our Former Manager an annual base management fee equal to 0.50% per annum of the average unadjusted book value of our real estate assets, calculated and payable monthly in advance, provided that the full amount of the distributions we have declared for the six immediately preceding months is equal to or greater than certain net income thresholds related to our operations. Subsequent to the consummation of the ARCT III Merger, we paid our Former Manager an annual base management fee equal to 0.50% per annum for up to $3.0 billion of unadjusted book value of assets and 0.40% of unadjusted book value of assets greater than $3.0 billion. For the years ended December 31, 2013 and 2012, our Former Manager waived base management fees earned of $6.1 million and $1.8 million, respectively.
We may have been required to pay our Former Manager a quarterly incentive fee, equal to the difference between (1) the product of (a) 20% and (b) the excess our annualized core earnings (as defined in the management agreement with our Former Manager) over the product of (i) the weighted-average number of shares multiplied by the weighted-average issuance price per share of common stock (ii) 8% and (2) the sum of any incentive compensation paid to the our Former Manager with respect to the first three calendar quarters of the previous 12-month period. One half of each quarterly installment of the incentive fee may have been payable in shares of common stock. The remainder of the incentive fee may have been payable in cash. No incentive fees were earned for the years ended December 31, 2013 and 2012, respectively. Subsequent to December 31, 2013, the management agreement was terminated as a result of our transition to self-management. See Note 23 — Subsequent Events for further discussion.
Operating fees to affiliate increased by $5.5 million to $5.7 million for the year ended December 31, 2013 compared to $0.2 million for the year ended December 31, 2012. The increase was the result of decisions by the Former Manager to not waive base management fees of $5.7 million in 2012, whereas the Former Manager waived all but $0.2 million in 2012. In addition, the Company recorded $2.2 million of base management fees during the year ended December 31, 2013 that was included in merger and other transaction related costs.
General and Administrative Expenses
General and administrative expenses increased by $6.4 million to $10.6 million for the year ended December 31, 2013 compared to $4.2 million for the year ended December 31, 2012. General and administrative expenses increased primarily as a result of higher professional fees, such as legal fees, accountant fees and financial printer services fees, insurance expense, salary-related expenses and board member compensation to support our increased real estate portfolio.
Equity-Based Compensation Expense
Equity-based compensation expense was $35.0 million for the year ended December 31, 2013, representing an $33.8 million increases over the year ended December 31, 2012. Equity-based compensation expenses primarily included expenses for the OPP, which was entered into upon consummation of the ARCT III Merger, as well as the amortization of restricted stock. Equity-based compensation expense was $1.2 million for the year ended December 31, 2012, which related to the amortization of restricted stock.
Depreciation and Amortization Expense
Depreciation and amortization expense increased by $170.4 million to $211.4 million for the year ended December 31, 2013 compared to $41.0 million for the year ended December 31, 2012. The increase in depreciation and amortization expense was driven by our acquisition of 1,807 properties since December 31, 2012 for an aggregate purchase price of $5.5 billion.
Interest Expense
Interest expense increased by $90.4 million to $102.3 million for the year ended December 31, 2013 compared to $11.9 million for the year ended December 31, 2012. The increase in interest expense was due to increases in debt balances used to fund portfolio acquisitions, partially offset by a decrease in the weighted-average annualized interest rate on borrowings. The weighted-average debt balances for the years ended December 31, 2013 and 2012 were $1.8 billion and $205.1 million, respectively. The weighted-average annualized interest rate on all debt, including the effect of derivative instruments used to hedge the effects of interest rate volatility but excluding amortization of deferred financing costs and non-usage fees, for the years ended December 31, 2013 and 2012 was 3.40% and 4.16%, respectively.

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Our interest expense in future periods will vary based on our level of future borrowings, which will depend on the level of proceeds raised in offerings, our credit rating, the cost of borrowings, and the opportunity to acquire real estate assets which meet our investment objectives.
Other Income, Net
Other income increased by $1.8 million to $2.8 million for the year ended December 31, 2013 compared to other income of $1.0 million for the year ended December 31, 2012. The increase is primarily related to income earned on investments in redeemable preferred stock, senior notes and common stock, all of which were sold as of December 31, 2013, and investment income on certain assets acquired from CapLease during the fourth quarter of the year ended December 31, 2013.
Loss on Derivative Instruments, Net
Loss on the fair value of derivative instruments for the year ended December 31, 2013 was $67.9 million, which primarily consisted of a loss on contingent value rights. The loss pertains to the fair value of our obligation to pay certain preferred and common stockholders for the difference between the value of our shares on certain measurement dates and the value of the shares at the time of issuance as set forth by the contingent value rights agreement. The obligations were settled in full on during the year ended December 31, 2013. The loss was partially offset by a gain on derivative instruments resulting from marking our derivative instruments to fair value. No gain or loss on derivative instruments was recorded during the year ended December 31, 2012.
Loss on Sale of Investment in Affiliates
Loss on sale of investment in affiliates for the year ended December 31, 2013 was $0.4 million resulting from the sale of our investment in real estate funds sponsored by AR Capital purchased during the year ended December 31, 2013. No loss on the sale of investment in such funds was recorded during the year ended December 31, 2012.
Loss on Sale of Investments, Net
Loss on sale of investment securities, net for the year ended December 31, 2013 of $1.8 million primarily related to a $2.3 million loss on the sale of investments in redeemable preferred stock, senior notes and common stock, all of which were purchased in 2013 and sold as of December 31, 2013, partially offset by a $0.5 million gain on sale of investments in redeemable preferred stock, all of which were purchased in 2012 and sold as of December 31, 2013. The Company did not sell any investment securities during the year ended December 31, 2012.
Net Loss from Discontinued Operations
Net loss from discontinued operations decreased by $0.7 million to a net loss of approximately $20,000 for the year ended December 31, 2013 compared to net loss of $0.7 million for the year ended December 31, 2012. As of December 31, 2013 and 2012, we classified one property as held for sale on the consolidated balance sheets and reported in discontinued operations on the consolidated statements of operations and comprehensive loss. The net losses from discontinued operations during each year were primarily due to impairment on the held for sale property representing the difference between the carrying value and estimated proceeds from the sale of the property less estimated selling costs.
Comparison of the Year Ended December 31, 2012 to Year Ended December 31, 2011
Rental Income
Rental income increased by $61.4 million to $65.2 million for the year ended December 31, 2012 compared to $3.8 million for the year ended December 31, 2011. Rental income was driven by our acquisition of 573 properties during the year ended December 31, 2012 for an aggregate purchase price of $1.7 billion, as well as revenue for a full year from the 129 properties held as of December 31, 2011. The annualized rental income per square foot of the properties at December 31, 2012 was $9.59 with a weighted-average remaining lease term of 10.4 years, compared to $11.59 per square foot at December 31, 2011. There were no properties held for sale for the full period in each of the years ended December 31, 2012 and 2011.
Operating Expense Reimbursements
Operating expense reimbursements increased by $1.8 million to $2.0 million for the year ended December 31, 2012 compared to $0.2 million for the year ended December 31, 2011. Operating expense reimbursements represent reimbursements for taxes, property maintenance and other charges contractually due from tenants per their respective leases. Operating expense reimbursements were driven by our acquisition of 573 properties during the year ended December 31, 2012 as well as reimbursements for a full year from the 129 properties held as of December 31, 2011.

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Acquisition Related Expenses
Acquisition related expenses increased by $41.2 million to $45.1 million for the year ended December 31, 2012 compared to $3.9 million for the year ended December 31, 2011. The increase is driven by our acquisition of 573 properties during the year ended December 31, 2012 compared to 71 during the year ended December 31, 2011. Acquisition and related costs represent the costs related to the acquisition of properties. Acquisition costs mainly consisted of legal costs, deed transfer costs and other costs related to real estate purchase transactions.
Merger and Other Transaction Related Expenses
During the year ended December 31, 2012, expenses related to the merger with ARCT III announced in December 2012 and other transaction costs were $2.6 million. These costs primarily consisted of legal fees, accountants fees and other costs associated with entering into the ARCT III merger agreement. There were no such merger expenses incurred during the year ended December 31, 2011.
Property Expenses
Property expenses increased by $3.3 million to $3.5 million for the year ended December 31, 2012 compared to $0.2 million for the year ended December 31, 2011. These expenses relate to costs associated with maintaining certain properties, including real estate taxes, ground lease rent, insurance and repairs and maintenance expenses. The increase in property expenses is mainly due to our acquisition of properties with modified gross leases during the year ended December 31, 2012 and an increased number of properties for which we pay expenses, which are reimbursed by the tenant.
Operating Fees to Affiliate
We paid our Former Manager an annual base management fee equal to 0.50% per annum of the average unadjusted book value of our real estate assets, calculated and payable monthly in advance, provided that the full amount of the distributions we have declared for the six immediately preceding months is equal to or greater than certain net income thresholds related to our operations. Our Former Manager waived such portion of its management fee in excess of such thresholds. For the years ended December 31, 2012 and 2011, our Former Manager waived base management fees earned of $1.8 million and $0.3 million, respectively.
We were required to pay our Former Manager a quarterly incentive fee, calculated based on 20% of the excess our annualized core earnings (as defined in the management agreement with our Former Manager) over the weighted-average number of shares multiplied by the weighted-average price per share of common stock. One half of each quarterly installment of the incentive fee would be payable in shares of common stock. The remainder of the incentive fee would be payable in cash. No incentive fees were earned for the years ended December 31, 2012 and 2011, respectively.
Operating fees to affiliate were $0.2 million for the year ended December 31, 2012, compared to no such fees for the year ended December 31, 2011, which was the result of decisions by the Former Manager to not waive base management fees of $0.2 million in 2012 whereas the Former Manager waived all fees in 2011.
General and Administrative Expenses
General and administrative expenses increased by $3.5 million to $4.2 million for the year ended December 31, 2012 compared to $0.7 million for the year ended December 31, 2011. General and administrative expenses increased primarily as a result of higher professional fees, such as legal fees, accountant fees and financial printer services fees, insurance expense and board member compensation to support our increased real estate portfolio.
Depreciation and Amortization Expense
Depreciation and amortization expense increased by $38.9 million to $41.0 million for the year ended December 31, 2012 compared to $2.1 million for the year ended December 31, 2011. The increase in depreciation and amortization expense was driven by our acquisition of 573 properties during the year ended December 31, 2012 for an aggregate purchase price of $1.7 billion as well as depreciation and amortization expense for a full year from the 129 properties held as of December 31, 2011.
Interest Expense
Interest expense increased by $10.9 million to $11.9 million for the year ended December 31, 2012 compared to $1.0 million for the year ended December 31, 2011. The increase primarily related to the increase in debt balances used to fund portfolio acquisitions as the outstanding balance on our senior secured revolving credit facility increased by $82.2 million during the year ended December 31, 2012. Interest expense also related to outstanding mortgage notes payable, which increased $229.8 million during the year ended December 31, 2012, partially offset by a slightly lower weighted-average effective interest rate during 2012 as compared to 2011.

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Our interest expense in future periods will vary based on our level of future borrowings, which will depend on the level of proceeds raised in offerings, our credit ratings, the cost of borrowings, and the opportunity to acquire real estate assets which meet our investment objectives.
Other Income, Net
Other income increased by $1.0 million to $1.0 million for the year ended December 31, 2012 compared to approximately $2,000 for the year ended December 31, 2011. The increase was primarily due to income on investment securities purchased during the year ended December 31, 2012.
Net Loss from Discontinued Operations
Net loss from discontinued operations decreased by $0.2 million to $0.7 million for the year ended December 31, 2012 compared to $0.9 million for the year ended December 31, 2011. As of the year ended December 31, 2012 and 2011, we had one and two vacant properties, respectively, classified as held for sale on the consolidated balance sheets and reported in discontinued operations on the consolidated statements of operations and comprehensive loss. The net losses from discontinued operations during each year were primarily due to impairments on the held for sale properties representing the difference between the carrying value and estimated proceeds from the sale of the properties less estimated selling costs. On July 3, 2012, one of the properties was sold for $0.6 million of net proceeds.
Cash Flows for the Year Ended December 31, 2013
During the year ended December 31, 2013, net cash provided by operating activities was $12.8 million. The level of cash flows used in or provided by operating activities is affected by acquisition and transaction costs, the timing of interest payments, as well as the receipt of scheduled rent payments. Cash flows provided by operating activities during the year ended December 31, 2013 included adjusted net loss of $91.8 million (net loss of $480.5 million adjusted for non-cash items, the most significant of which were the issuance of operating partnership units, depreciation and amortization expense, amortization of deferred financing costs and premiums and discounts on debt, equity-based compensation, and the loss on derivative instruments, which totaled to $388.7 million, in the aggregate). In addition, we incurred a one-time expense related to the loss in the extinguishment of Series C Convertible Preferred Stock ("Series C Stock") of $13.7 million. Cash inflows included an increase in accounts payable and accrued expenses of $100.2 million and in increase in deferred rent and other liabilities of $8.6 million, partially offset by an increase in prepaid and other assets of $20.4 million.
Net cash used in investing activities for the year ended December 31, 2013 of $4.5 billion primarily related to the investment in real estate assets and the CapLease Merger of $4.4 billion, deposits for real estate investments of $101.9 million, the purchase of investment securities of $81.6 million and investments in direct financing leases of $68.6 million, partially offset by the proceeds from the sales of investment securities of $119.5 million.
Net cash provided by financing activities was $4.3 billion during the year ended December 31, 2013. This was primarily driven by the issuance of stock and debt during the year, most notably $2.0 billion of proceeds net of offering-related costs from the issuance of common stock, $1.7 billion of proceeds, net of repayments, from our credit facilities, $967.8 million of proceeds from issuance of convertible debt and $288.0 million of proceeds from the issuance of Series D Preferred Stock and $30.9 million of contributions from non-controlling interest holders. These inflows were partially offset by cash outflows, the most significant of which were common stock repurchases of $359.2 million, total distributions paid of $243.1 million, payments of deferred financing costs of $95.3 million and payments on mortgage notes and other debt of $15.1 million.
Cash Flows for the Year Ended December 31, 2012
During the year ended December 31, 2012, net cash provided by operating activities was $9.4 million. The level of cash flows used in or provided by operating activities is affected by acquisition and transaction costs, the timing of interest payments, as well as the receipt of scheduled rent payments. Cash flows provided by operating activities during the year ended December 31, 2012 was primarily due to an increase in adjusted net income of $2.7 million (net loss of $42.2 million adjusted for non-cash items, the most significant of which were depreciation and amortization expense, amortization of deferred financing costs and share based compensation, which totaled $44.9 million, in the aggregate). Cash inflows included an increase in accounts payable and accrued expenses of $8.3 million and in increase in deferred rent and other liabilities of $3.5 million, partially offset by an increase in prepaid and other assets of $5.1 million.
Net cash used in investing activities for the year ended December 31, 2012 of $1.7 billion, primarily related to an increase in investment in real estate assets paid for with cash of $1.7 billion and the purchase of investment securities of $41.7 million.
Net cash provided by financing activities of $2.0 billion during the year ended December 31, 2012 primarily related cash inflows from the issuances of stock and debt, most notably $1.7 billion of proceeds net of offering-related costs from the issuance of common and preferred stock, $229.8 million of proceeds from mortgage notes payable and $82.2 million of proceeds from our senior secured revolving credit facility. These inflows were partially offset by cash outflows, most notably by total distributions paid of $38.3 million and payments related to deferred financing costs of $14.0 million.

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Liquidity and Capital Resources
In the normal course of business, 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 investors, and for the payment of principal and interest on our outstanding indebtedness. We expect to meet our future short-term operating liquidity requirements through net cash provided by our current property operations. Management expects that our properties will generate sufficient cash flow to cover all operating expenses and the payment of a monthly distribution. The majority of our net leases contain contractual rent escalations during the primary term of the lease. Other potential future sources of capital include proceeds from secured or unsecured financings from banks or other lenders, proceeds from offerings, including our ATM program, proceeds from the sale of properties and undistributed funds from operations. With the stabilization of the investment portfolio, we expect to significantly increase the amount of cash flow generated from operating activities in future periods. Such increased cash flow will positively impact the amount of funds available for dividends.
As of December 31, 2013, we had $52.7 million of cash and cash equivalents.
Sources of Funds
Funds from Operations and Adjusted Funds from Operations
Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts, Inc. ("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 our net income or loss as determined under U.S. 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 U.S. GAAP, excluding gains or losses from sales of property but including asset impairment writedowns, plus depreciation and amortization, 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 is requested or required 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 be less informative. Historical accounting for real estate involves the use of U.S. 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 U.S. GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization, 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 adjusted funds from operations ("AFFO"), as described below, should not be construed to be more relevant or accurate than the current U.S. 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 U.S. GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and AFFO measures and the adjustments to U.S. GAAP in calculating FFO and AFFO.
We consider FFO and AFFO useful indicators of the performance of a REIT. Because FFO calculations exclude such factors as depreciation and amortization of real estate assets and gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), they facilitate comparisons of operating performance between periods and between other REITs in our peer group. Accounting for real estate assets in accordance with U.S. GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.

30

Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT's definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses for all industries as items that are expensed under GAAP, that are typically accounted for as operating expenses. Management believes these fees and expenses do not affect our overall long-term operating performance. While certain companies may experience significant acquisition activity, other companies may not have significant acquisition activity and management believes that excluding costs such as merger and transaction costs and acquisition related costs from property operating results provides useful information to investors and provides information that improves the comparability of operating results with other companies who do not have significant merger or acquisition activities. AFFO is not equivalent to our net income or loss as determined under GAAP, and AFFO may not be a useful measure of the impact of long-term operating performance if we continue to have such activities in the future.
We exclude certain income or expense items from AFFO that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities that are not a fundamental attribute of our business plan. These items include unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments, gains or losses on contingent valuation rights, gains and losses on investments and early extinguishment of debt. In addition, by excluding non-cash income and expense items such as amortization of above and below market leases, amortization of deferred financing costs, straight-line rent and non-cash equity compensation from AFFO we believe we provide useful information regarding income and expense items which have no cash impact and do not provide us liquidity or require our capital resources. By providing AFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our ongoing operating performance without the impacts of transactions that are not related to the ongoing profitability of our portfolio of properties. We also believe that AFFO is a recognized measure of sustainable operating performance by the REIT industry. Further, we believe AFFO is useful in comparing the sustainability of our operating performance with the sustainability of the operating performance of other real estate companies that are not as involved in activities which are excluded from our calculation. Investors are cautioned that AFFO should only be used to assess the sustainability of our operating performance excluding these activities, as it excludes certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred.
In addition, we exclude certain interest expenses related to securities that are convertible to common stock as the shares are assumed to have converted to common stock in our calculation of weighted-average common shares-fully diluted. As the Company's convertible notes have a cash or stock settlement option and the Company has the ability and intent to settle its convertible notes in cash, the interest expense related to our convertible notes have not been excluded from AFFO, and accordingly, the shares are not assumed to have converted to common stock in our calculation of weighted-average common shares-fully diluted.
In calculating AFFO, we exclude expenses, which under GAAP are characterized as operating expenses in determining operating net income. These expenses are paid in cash by us, and therefore such funds will not be available to distribute to investors. All paid and accrued merger and acquisition fees and certain other expenses negatively impact our operating performance during the period in which expenses are incurred or properties are acquired and will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property and certain other expenses. Therefore, AFFO may not be an accurate indicator of our operating performance, especially during periods in which mergers are being consummated or properties are being acquired or certain other expenses are being incurred. AFFO that excludes such costs and expenses would only be comparable to companies that did not have such activities. 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 as items which are unrealized and may not ultimately be realized. We view both gains and losses from fair value adjustments as items which are not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. Excluding income and expense items detailed above from our calculation of AFFO provides information consistent with management's analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe AFFO provides useful supplemental information.
As a result, we believe that the use of FFO and AFFO, together with the required U.S. GAAP presentations, provide a more complete understanding of our performance relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities.

31

FFO and AFFO are non-GAAP financial measures and do not represent net income as defined by U.S. GAAP. FFO and AFFO do not represent cash flows from operations as defined by U.S. GAAP, are not indicative of cash available to fund all cash flow needs and liquidity, including our ability to pay distributions and should not be considered as alternatives to net income, as determined in accordance with U.S. GAAP, for purposes of evaluating our operating performance. Other REITs may not define FFO in accordance with the current NAREIT definition (as we do) or may interpret the current NAREIT definition differently than we do and/or calculate AFFO differently than we do. Consequently, our presentation of FFO and AFFO may not be comparable to other similarly titled measures presented by other REITs.
The below table reflects the items deducted or added to net loss in our calculation of FFO and AFFO for the years ended December 31, 2013, 2012 and 2011 and on a pro forma basis for the year ended December 31, 2013 (amounts in thousands). Amounts are presented net of any non-controlling interest effect, where applicable.
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Net loss attributable to stockholders
 
$
(474,740
)
 
$
(41,936
)
 
$
(4,699
)
(Gain) loss on held for sale properties
 
(14
)
 
600

 
815

Depreciation and amortization
 
211,372

 
41,003

 
2,111

FFO
 
(263,382
)
 
(333
)
 
(1,773
)
Acquisition related
 
76,136

 
45,070

 
3,898

Merger and other transaction related
 
278,319

 
2,603

 
—

(Gain) loss on investment securities
 
2,206

 
—

 
—

Loss on derivative instruments, net
 
67,946

 
—

 
2

Interest on convertible obligation to preferred investors
 
10,802

 
—

 
—

Interest premiums and discounts on debt, net and settlement of convertible obligation to preferred investors
 
12,072

 
—

 
—

Amortization of above- and below-market lease assets and liabilities
 
(178
)
 
110

 
—

Amortization of deferred financing costs
 
26,895

 
1,985

 
186

Straight-line rent
 
(15,058
)
 
(2,165
)
 
(229
)
Non-cash equity compensation expense
 
34,962

 
1,197

 
191

Operating fees to affiliate
 
5,654

 
212

 
—

AFFO
 
$
236,374

 
$
48,679

 
$
2,275

Capital Markets
The following are our equity offerings of common stock during the year ended December 31, 2013 (dollar amounts in millions):
Type of offering
 
Closing Date
 
Number of Shares (1)
 
Gross Proceeds
Registered follow-on offering
 
January 29, 2013
 
2,070,000

 
$
26.7

ATM
 
January 1 - September 30, 2013
 
553,300

 
8.9

Private placement offering
 
June 7, 2013
 
29,411,764

 
455.0

Private placement offering
 
November 11, 2013
 
15,126,498

 
186.0

Total - Year end December 31, 2013
 
 
 
47,161,562

 
$
676.6

_____________________________________________
(1) Excludes 140.7 million shares of common stock that were issued to the stockholders of ARCT III's common stock in conjunction with the ARCT III Merger.
On August 1, 2012, we filed a $500.0 million universal shelf registration statement and a resale registration statement with the SEC. Each registration statement became effective on August 17, 2012. As of December 31, 2013, we had issued 2.1 million shares of common stock through a registered follow on offering and an ATM offering under the $500.0 million universal shelf registration statement. No preferred stock, debt or equity-linked security had been issued under the universal shelf registration statement. The resale registration statement, as amended, registers the resale of up to 1,882,248 shares of common stock issued in connection with any future conversion of certain currently outstanding restricted shares, convertible preferred stock or limited partnership interests in the OP. As of December 31, 2013, no common stock had been issued under the resale registration statement.
On March 14, 2013, we filed a universal automatic shelf registration statement and achieved well-known seasoned issuer ("WKSI") status. We intend to maintain both the $500.0 million universal shelf registration statement and the WKSI universal automatic shelf registration statement.

32

In January 2013, we commenced an "at the market" equity offering program ("ATM") in which we may from time to time offer and sell shares of our common stock having an aggregate offering proceeds of up to $60.0 million. The shares will be issued pursuant to our $500.0 million universal shelf registration statement.
In addition to our common stock offerings, on June 7, 2013, we issued 28.4 million shares convertible preferred stock (the "Series C Shares") for gross proceeds of $445.0 million. On November 8, 2013, we elected to convert all outstanding Series C Shares into our common stock. Pursuant to the Series C Articles Supplementary, the number of shares of common stock that could be issued upon conversion of Series C Shares was limited to an exchange cap. Therefore, we converted 1.1 million Series C Shares into 1.4 million shares of our common stock. With respect to the 27.3 million Series C Shares for which we could not issue shares of our common stock upon conversion due to the exchange cap, we paid holders of Series C Shares an aggregate cash amount equal to approximately $441.4 million in exchange for such Series C Shares. Based on our share price on the conversion date, the total settlement value was $458.8 million. See Note 11 — Other Debt in the consolidated financial statements for a description of the conversion features of the Series C Convertible Preferred Stock.
On September 15, 2013, we entered into definitive purchase agreements pursuant to which we agreed to issue Series D Preferred Stock, par value $0.01 per share, and common stock, par value $0.01 per share, to certain institutional holders promptly following the close of our merger with CapLease. Pursuant to the definitive purchase agreements, we issued approximately 21.7 million shares of Series D Preferred and 15.1 million shares of common stock, for gross proceeds of $288.0 million and $186.0 million, respectively, on November 8, 2013.
Upon consummation of the ARCT IV merger on January 3, 2014, 42.2 million shares of Series F Preferred Stock were issued to ARCT IV stockholders. There were no shares issued and outstanding of Series F Preferred Stock as of December 31, 2013. See Note 16 — Preferred and Common Stock in the consolidated financial statements for a description of the Series D and Series F Preferred Stock.
Availability of Funds from Credit Facilities
We and our OP are parties to a credit facility with Wells Fargo, National Association , as administrative agent and other lenders party thereto (the "Credit Facility").
At December 31, 2013, the Credit Facility has commitments of $2.42 billion. The Credit Facility has an accordion feature, which, if exercised in full, would allow us to increase borrowings under the Credit Facility to $3.0 billion, subject to additional lender commitments and borrowing base availability.
At December 31, 2013, the Credit Facility contains a $940.0 million term loan facility and a $1.5 billion revolving credit facility, of which $940.0 million and $119.8 million was outstanding, respectively. Loans under the Credit Facility are priced at the applicable rate (at our election, either a floating interest rate based on one month LIBOR, determined on a daily basis, or LIBOR for a period of one, three or six months), plus 2.25% to 3.00%, decreasing to 1.60% to 2.20% upon the satisfaction of certain conditions set forth in the credit agreement relating to the credit facility), based upon our current leverage. To the extent that we receive an investment grade credit rating as determined by a major credit rating agency, and upon the satisfaction of certain other conditions set forth in the credit agreement relating to the Credit Facility, at our election, advances under the revolving credit facility will be priced at the applicable rate plus 0.90% to 1.75% and term loans will be priced at the applicable rate plus 1.15% to 2.00%, in each case, based upon our then current investment grade credit rating.
The Credit Facility provides for monthly interest payments. Upon the occurrence of an event of default, the agent acting at the request or with the consent of lenders holding a majority of the loans and commitments under the Credit Facility, may declare the Credit Facility commitments to be terminated, and may accelerate the payment on any unpaid principal amount of all outstanding loans. We have guaranteed the obligations under the Credit Facility. The revolving credit facility will terminate on February 14, 2017 and the term loan facility will terminate on February 14, 2018, in each case, unless extended in accordance with the terms of the credit facility. At any time, upon timely notice by us, we may prepay borrowings under the credit facility. We incur an unused fee of 0.25% to 0.50% per annum on the unused amount of the revolving credit commitments, based on our usage of the revolving credit facility, which unused fee will decrease 0.12% to 0.35% per annum, based upon our then current investment grade credit rating, to the extent we have elected for the interest rate margin applicable to the outstanding advances under the credit facility to be governed by our credit rating as set forth above. To the extent that any delayed draw commitments remain undrawn, we will incur an unused fee of 0.25% per annum on the unused amount of such commitments. The Credit Facility also required us to maintain certain property available for collateral as a condition to funding, but this requirement was eliminated pursuant to an amendment effective February 7, 2014.

33

Principal Use of Funds
Acquisitions
Generally, cash needs for property acquisitions will be met through proceeds from the public or private offerings of debt and equity and other 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.
We evaluate potential acquisitions of real estate and real estate-related assets and engage in negotiations with sellers and borrowers. Investors and stockholders should be aware that after a purchase contract is executed that contains specific terms the property will not be purchased until the successful completion of due diligence and negotiation of final binding agreements. During this period, we may decide to temporarily invest any unused proceeds from equity offerings in certain investments that could yield lower returns than the properties. These lower returns may affect our ability to make distributions.
We financed the aggregate purchase prices of the recent mergers and acquisitions discussed in Note 2 —Mergers and Acquisitions in part through the assumption of outstanding indebtedness, and expect to finance the balance of the aggregate purchase prices through a combination of: (i) available cash on hand from (a) a portion of the $896.0 million in net proceeds from the sale of shares of ARCP common stock and convertible preferred stock in separate previously disclosed private placement transactions, which transactions were completed on June 7, 2013; (b) a portion of the $967.8 million in net proceeds from the sale of the Notes; (c) funds available from the issuance of common stock through our current at-the-market program or any successor program thereto; (d) financing available under our credit facility, and (e) additional alternative financing arrangements, as needed, from the issuance of additional common stock, preferred securities or other debt, equity or equity-linked financings.
Dividends
The amount of dividends payable to our stockholders is determined by our board of directors and is dependent on a number of factors, including funds available for dividends, financial condition, capital expenditure requirements, as applicable, and annual dividend requirements needed to qualify and maintain our status as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). Operating cash flows are expected to increase as additional properties are acquired in our investment portfolio.
We and our board of directors share a similar philosophy with respect to paying our dividends. The dividends should principally be derived from cash flows generated from real estate operations. In order to improve our operating cash flows and our ability to pay dividends from operating cash flows, our Former Manager has in the past agreed to waive certain fees including asset management and incentive fees. Base asset management fees waived during the year ended December 31, 2013 were $6.1 million. Property management and leasing fees of $0.8 million were waived during the year ended December 31, 2013. The fees that were waived relating to the activity are not deferrals and accordingly, will not be paid. Because our Former Manager waived certain fees that we owed, cash flow from operations that would have been used to pay such fees to our Former Manager was available to pay dividends to our stockholders. See Note 18 — Related Party Transactions and Arrangements in the consolidated financial statements within this report for further information on fees paid to and forgiven by our Former Manager. Subsequent to December 31, 2013, we completed our transition to self-management and will no longer pay such fees to our Former Manager. See Note 23 — Subsequent Events for further discussion.
As our real estate portfolio matures, we expect cash flows from operations to cover our dividends.

34

The following table shows the sources for the payment of dividends to common stockholders for the year ended December 31, 2013 (dollars in thousands):
 
 
Three Months Ended
 
 
March 31, 2013
 
June 30, 2013
 
September 30, 2013
 
December 31, 2013
 
 
Dividends
 
% of
Dividends
 
Dividends
 
% of
Dividends
 
Dividends
 
% of
Dividends
 
Dividends
 
% of
Dividends
Dividends:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributions paid in cash
 
$
30,594

 
 
 
$
49,882

 
 
 
$
66,674

 
 
 
$
74,311

 
 
Distributions reinvested
 
7,498

 
 
 
13,121

 
 
 
4,949

 
 
 
—

 
 
 
 
$
38,092

 
 
 
$
63,003

 
 
 
$
71,623

 
 
 
$
74,311

 
 
Sources of dividends:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows provided by operations (1)
 
$
—

 
—
%
 
$
5,674

 
9.0
%
 
$
16,976

 
23.7
%
 
$
29,254

 
39.4
%
Proceeds from issuances of common stock
 
3,185

 
8.4
%
 
12,794

 
20.3
%
 
23,938

 
33.4
%
 
—

 
—
%
Proceeds from financing activities
 
27,409

 
71.9
%
 
31,414

 
49.9
%
 
25,760

 
36.0
%
 
45,057

 
60.6
%
Common stock issued under the DRIP
 
7,498

 
19.7
%
 
13,121

 
20.8
%
 
4,949

 
6.9
%
 
—

 
—
%
Total sources of dividends
 
$
38,092

 
100.0
%
 
$
63,003

 
100.0
%
 
$
71,623

 
100.0
%
 
$
74,311

 
100.0
%
Net loss attributable to stockholders (in accordance with U.S. GAAP)
 
$
(141,163
)
 
 
 
$
(71,958
)
 
 
 
$
(82,677
)
 
 
 
$
(178,942
)
 
 
____________________________________
(1)
Dividends paid from cash provided by operations are derived from cash flows from operations (U.S. GAAP basis) for the year ended December 31, 2013. Cash flows provided by operations include $76.1 million of acquisition related expenses and $278.3 million of merger and other transaction related expenses incurred during the year ended December 31, 2013. If we had not incurred such acquisition and merger related costs, our cash flows from operations would have sourced all dividend payments during the year ended December 31, 2013.
Loan Obligations
At December 31, 2013, our leverage ratio (net debt, excluding debt convertible to common stock, divided by enterprise value) was 58.3%.
The payment terms of our loan obligations vary. In general, only interest amounts are payable monthly with all unpaid principal and interest due at maturity. Some of our loan agreements stipulate that we comply with specific reporting and financial covenants mainly related to debt coverage ratios and loan to value ratios. Each loan that has these requirements has specific ratio thresholds that must be met. As of December 31, 2013, we were in compliance with the debt covenants under our loan agreements.
As of December 31, 2013, we had non-recourse mortgage indebtedness of $1.3 billion which was collateralized by 177 properties. Our mortgage indebtedness bore interest at weighted-average rate of 3.42% per annum and had a weighted-average maturity of 3.41 years. We may in the future incur additional mortgage debt on the properties we currently own or use long-term non-recourse financing to acquire additional properties in the future.
As of December 31, 2013, there was $1.1 billion outstanding on the Credit Facility, of which $554.8 million bore a floating interest rate of 3.17%, and for $515.0 million of the Credit Facility's floating base interest rate is fixed through the use of derivative instruments used to hedge interest rate volatility. Including the spread, which can vary based on our leverage, interest on this portion was 4.02% at December 31, 2013. At December 31, 2013, there was up to $1.9 billion available to us for future borrowings, subject to additional lender commitments and borrowing availability. In addition, we had $760.0 million outstanding under the Senior Secured Credit Facility.
Our loan obligations require the maintenance of financial covenants, as well as restrictions on corporate guarantees, 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. At December 31, 2013 and 2012, we were in compliance with the debt covenants under all of our loan obligations.

35

Convertible Senior Note Offering
On July 29, 2013, the Company issued $300.0 million of Convertible Senior Notes (the "2018 Notes") and, pursuant to an over-allotment exercise by the underwriters of such 2018 Notes offering, issued an additional $10.0 million of its 2018 Notes on August 1, 2013. On December 10, 2013, the Company issued an additional $287.5 million of the 2018 Notes through a reopening of the 2018 Notes indenture agreement. Also on December 10, 2013, the Company issued $402.5 million of Convertible Senior Notes (the "2020 Notes", collectively with the 2018 Notes, the "Convertible Notes"). The 2018 Notes mature August 1, 2018 and the 2020 Notes mature on December 15, 2020. The Convertible Notes are convertible to cash or shares of the Company's common stock at the Company's option. In accordance with U.S GAAP, the notes are accounted for as a liability with a separate equity component recorded for the conversion option. A liability was recorded for the Convertible Notes on the issuance date at fair value based on a discounted cash flow analysis using current market rates for debt instruments with similar terms. The difference between the initial proceeds from the Convertible Notes and the estimated fair value of the debt instruments resulted in a debt discount, with an offset recorded to additional paid-in capital representing the equity component. The debt discount is being amortized to interest expense over the expected lives of the Convertible Notes.
Bond Offering
On February 6, 2014, the OP issued, in a private offering, $2.55 billion aggregate principal amount of senior unsecured notes consisting of $1.3 billion aggregate principal amount of 2.00% senior notes due 2017 (the "2017 Notes"), $750.0 million aggregate principal amount of 3.00% senior notes due 2019 (the "2019 Notes") and $500.0 million aggregate principal amount of 4.60% senior notes due 2024 (the "2024 Notes", and, together with the 2017 Notes and 2019 Notes, the "Notes"). The Notes are guaranteed by the Company. The Company used a portion of the net proceeds to partially fund the cash consideration, fees and expenses relating to Cole Merger and repayment of Cole's credit facility. The Company used the remaining portion of the net proceeds from the offering to repay $900.0 million outstanding under the OP's senior credit facility and for other general corporate purposes.
Contractual Obligations
The following is a summary of our contractual obligations, including contractual lease obligations, as of December 31, 2013 (in thousands):
 
 
Total
 
2014
 
2015 – 2016
 
2017 – 2018
 
Thereafter
Principal payments due on mortgage notes payable
 
$
1,258,661

 
$
86,933

 
$
677,200

 
$
293,869

 
$
200,659

Interest payments due on mortgage notes payable
 
204,982

 
63,581

 
82,666

 
25,064

 
33,671

Principal payments due on senior corporate credit facilities
 
1,819,800

 
—

 
—

 
1,819,800

 
—

Interest payments due on senior corporate credit facilities
 
186,585

 
47,048

 
94,095

 
45,442

 
—

Principal payments due on secured credit facility
 
150,000

 
150,000

 
—

 
—

 
—

Interest payments due on secured credit facility
 
4,410

 
4,410

 
—

 
—

 
—

Principal payments due on convertible debt
 
1,000,000

 
—

 
—

 
597,500

 
402,500

Interest payments due on convertible debt
 
187,235

 
33,019

 
66,038

 
58,619

 
29,559

Principal payments due on other debt
 
108,316

 
12,851

 
24,378

 
40,157

 
30,930

Interest payments due on other debt
 
65,659

 
6,808

 
11,469

 
6,802

 
40,580

Payments due on lease obligations
 
84,441

 
4,541

 
8,657

 
7,456

 
63,787

Total
 
$
5,070,089

 
$
409,191

 
$
964,503

 
$
2,894,709

 
$
801,686


36

Contractual Lease Obligations
The following table reflects the minimum base rental cash payments due from the Company over the next five years and thereafter for certain ground and office lease obligations (amounts in thousands):
 
 
Future Minimum
Lease Payments
2014
 
$
4,541

2015
 
4,443

2016
 
4,214

2017
 
4,244

2018
 
3,212

Thereafter
 
63,787

 
 
$
84,441

Election as a REIT
We elected to be taxed as a REIT under Sections 856 through 860 of the Code commencing with the taxable year ended December 31, 2011. If we continue to qualify for taxation as a REIT, we generally will not be subject to federal corporate income tax to the extent we distribute our REIT taxable income to our stockholders, and so long as we distribute at least 90% of our REIT taxable income, computed without regard to the dividends paid deduction and excluding net capital gain. REITs are subject to a number of other organizational and operational requirements. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and federal income and excise taxes on our undistributed income. We believe we are organized and operating in such a manner as to qualify to be taxed as a REIT for the taxable year ending December 31, 2013.
Inflation
We may be adversely impacted by inflation on any leases that do not contain indexed escalation provisions. In addition, our net leases may require the tenant to pay its allocable share of operating expenses, including 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, whereby we pay or have paid in the past certain fees or reimbursements to ARC, our Former Manager or their affiliates for acquisition fees and expenses, organization and offering costs, asset management fees and reimbursement of operating costs and have in the past paid sales commissions and dealer manager fees. See Note 18 — Related Party Transactions and Arrangements in our financial statements included in this report for a discussion of the various related-party transactions, agreements and fees. In August 2013, our board of directors determined that it is in the best interests of us and our stockholders to become self-managed, and we completed our transition to self-management on January 8, 2014. In connection with becoming self-managed, we terminated the existing management agreement with our Former Manager (subject to the Former Manager's agreement to continue to provide services, as requested, for a 60 day tail period for a payment of $10.0 million and continuing to provide certain transition services for an hourly charge), enter into appropriate employment and incentive compensation arrangements with our executives and acquired from our Former Manager certain assets necessary for our operations. See Note 23 — Subsequent Events for further discussion.
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.

37

Item 7A. 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 market risk arises primarily from interest rate risk relating to variable-rate borrowings. To meet our short and long-term liquidity requirements, we borrow funds at a combination of fixed and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes in 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 December 31, 2013, our debt included fixed-rate debt, including debt that has interest rates that are fixed with the use of derivative instruments, with a carrying and fair value of $2.9 billion. Changes in market interest rates on our fixed rate debt impact fair value of the debt, but they have 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 debt 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 December 31, 2013 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 approximately $102.8 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 $65.8 million.
As of December 31, 2013, our debt included variable-rate debt with a carrying and fair value of $1.5 billion. The sensitivity analysis related to our variable-rate debt assumes an immediate 100 basis point move in interest rates from their December 31, 2013 levels, with all other variables held constant. A 100 basis point increase or decrease in variable interest rates on our variable-rate notes payable would increase or decrease our interest expense by approximately $14.6 million annually.
As the information presented above includes only those exposures that existed as of December 31, 2013, it 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.
These amounts were determined by considering the impact of hypothetical interest rate changes on our borrowing costs, and, assume no other changes in our capital structure.
Item 8. Financial Statements and Supplementary Data
The information required by Item 8 is hereby incorporated by reference to our Consolidated Financial Statements beginning on page F-1 of this document.

38

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders
American Realty Capital Properties, Inc.

We have audited the accompanying consolidated balance sheets of American Realty Capital Properties, Inc. (a Maryland corporation) and subsidiaries (the "Company") as of December 31, 2013 and 2012, and the related consolidated statements of operations and comprehensive loss, changes in equity, and cash flows for each of the three years in the period ended December 31, 2013. Our audits of the basic consolidated financial statements included the financial statement schedules listed in the index. These financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of American Realty Capital Properties, Inc. and subsidiaries as of December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2013 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.
As discussed in Note 1, the accompanying consolidated financial statements have been adjusted to reflect the acquisition of entities under common control, which have been accounted for in a manner similar to a pooling-of-interests.

/s/ GRANT THORNTON LLP

Philadelphia, Pennsylvania
May 20, 2014

F-2

AMERICAN REALTY CAPITAL PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
 
 
December 31,
 
 
2013
 
2012
ASSETS
 
 
 
 
Real estate investments, at cost:
 
 
 
 
Land
 
$
1,379,453

 
$
262,906

Buildings, fixtures and improvements
 
5,291,031

 
1,391,209

Land and construction in progress
 
21,839

 
—

Acquired intangible lease assets
 
758,376

 
221,153

Total real estate investments, at cost
 
7,450,699

 
1,875,268

Less: accumulated depreciation and amortization
 
(267,352
)
 
(56,415
)
Total real estate investments, net
 
7,183,347

 
1,818,853

Cash and cash equivalents
 
52,725

 
292,575

Investment in direct financing leases, net
 
66,112

 
—

Investment securities, at fair value
 
62,067

 
41,654

Loans held for investment, net
 
26,279

 
—

Derivative assets, at fair value
 
9,189

 
—

Restricted cash
 
35,921

 
1,108

Prepaid expenses and other assets
 
187,930

 
11,984

Goodwill
 
102,419

 
—

Deferred costs, net
 
81,311

 
15,356

Assets held for sale
 
679

 
665

Total assets
 
$
7,807,979

 
$
2,182,195

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
Mortgage notes payable, net
 
$
1,301,114

 
$
265,118

Convertible debt, net
 
972,490

 
—

Senior secured revolving credit facility
 
—

 
124,604

Senior corporate credit facilities
 
1,819,800

 
—

Secured credit facility
 
150,000

 
—

Other debt
 
104,804

 
—

Below-market lease liabilities, net
 
77,789

 
—

Derivative liabilities, at fair value
 
18,455

 
3,830

Accounts payable and accrued expenses
 
808,900

 
104,384

Deferred rent and other liabilities
 
21,816

 
4,394

Distributions payable
 
10,278

 
11,105

Total liabilities
 
5,285,446

 
513,435

 
 
 
 
 
Series D Preferred Stock, $0.01 par value, 21,735,008 shares (part of 100,000,000 aggregate preferred shares authorized) and zero shares authorized and 21,735,008 and zero shares issued and outstanding at December 31, 2013 and 2012, respectively
 
269,299

 
—

 
 
 
 
 
Preferred stock (excluding Series D Preferred Stock), $0.01 par value, 100,000,000 and 100,000,000 shares authorized and 42,199,547 and 6,990,328 shares issued and outstanding at December 31, 2013 and 2012, respectively
 
422

 
70

Common stock, $0.01 par value, 1,500,000,000 and 240,000,000 shares authorized and 239,234,725 and 184,553,676 issued and outstanding at December 31, 2013 and 2012, respectively
 
2,392

 
1,846

Additional paid-in capital
 
2,939,287

 
1,778,883

Accumulated other comprehensive income (loss)
 
7,666

 
(3,934
)
Accumulated deficit
 
(864,516
)
 
(124,570
)
Total stockholders’ equity
 
2,085,251

 
1,652,295

Non-controlling interests
 
167,983

 
16,465

Total equity
 
2,253,234

 
1,668,760

Total liabilities and equity
 
$
7,807,979

 
$
2,182,195


The accompanying notes are an integral part of these statements.

F-3

AMERICAN REALTY CAPITAL PROPERTIES, INC.
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except for per share data)
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Revenues:
 
 
 
 
 
 
Rental income
 
$
309,839

 
$
65,187

 
$
3,762

Direct financing lease income
 
2,244

 
—

 
—

Operating expense reimbursements
 
17,795

 
2,020

 
208

Total revenues
 
329,878

 
67,207

 
3,970

Operating expenses:
 
 
 
 
 
 
Acquisition related
 
76,136

 
45,070

 
3,898

Merger and other transaction related
 
278,319

 
2,603

 
—

Property operating
 
23,616

 
3,522

 
220

Operating fees to affiliate
 
5,654

 
212

 
—

General and administrative
 
10,645

 
4,215

 
735

Equity based compensation
 
34,962

 
1,197

 
—

Depreciation and amortization
 
211,372

 
41,003

 
2,111

Total operating expenses
 
640,704

 
97,822

 
6,964

Operating loss
 
(310,826
)
 
(30,615
)
 
(2,994
)
Other (expense) income:
 
 
 
 
 
 
Interest expense
 
(102,305
)
 
(11,856
)
 
(960
)
Other income, net
 
2,847

 
979

 
2

Loss on derivative instruments, net
 
(67,946
)
 
—

 
—

Loss on sale of investments in affiliates
 
(411
)
 
—

 
—

Loss on sale of investments
 
(1,795
)
 
—

 
—

Total other expenses, net
 
(169,610
)
 
(10,877
)
 
(958
)
Loss from continuing operations
 
(480,436
)
 
(41,492
)
 
(3,952
)
Net loss from continuing operations attributable to non-controlling interests
 
5,715

 
255

 
69

Net loss from continuing operations attributable to stockholders
 
(474,721
)
 
(41,237
)
 
(3,883
)
Discontinued operations:
 
 
 
 
 
 
Loss from operations of held for sale properties
 
(34
)
 
(145
)
 
(37
)
Gain (loss) on held for sale properties
 
14

 
(600
)
 
(815
)
Net loss from discontinued operations
 
(20
)
 
(745
)
 
(852
)
Net loss from discontinued operations attributable to non-controlling interest
 
1

 
46

 
36

Net loss from discontinued operations attributable to stockholders
 
(19
)
 
(699
)
 
(816
)
Net loss
 
(480,456
)
 
(42,237
)
 
(4,804
)
Net loss attributable to non-controlling interests
 
5,716

 
301

 
105

Net loss attributable to stockholders
 
(474,740
)
 
(41,936
)
 
(4,699
)
Other comprehensive loss:
 
 
 
 
 
 
Designated derivatives, fair value adjustments
 
11,480

 
(3,743
)
 
(98
)
Change in unrealized gain/loss on investment securities
 
119

 
(93
)
 
—

Comprehensive loss
 
$
(463,141
)
 
$
(45,772
)
 
$
(4,797
)
Basic and diluted net loss per share from continuing operations attributable to common stockholders
 
$
(2.33
)
 
$
(0.40
)
 
$
(1.04
)
Basic and diluted net loss per share attributable to common stockholders
 
$
(2.33
)
 
$
(0.41
)
 
$
(1.26
)

The accompanying notes are an integral part of these statements.

F-4

AMERICAN REALTY CAPITAL PROPERTIES, INC.
 
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands, except for share data)
 
 
Convertible Preferred Stock
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number
of Shares
 
Par
Value
 
Number
of Shares
 
Par
Value
 
Additional Paid-In Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Accumulated
Deficit
 
Total Stock-holders' Equity
 
Non-Controlling Interests
 
Total Equity
Balance, December 31, 2010
 
—

 
$
—

 
20,000

 
$
—

 
$
200

 
$
—

 
$
—

 
$
200

 
$
—

 
$
200

Issuance of common stock
 
—

 
—

 
16,929,184

 
170

 
185,957

 
—

 
—

 
186,127

 
—

 
186,127

Offering costs, commissions and dealer manager fees
 
—

 
—

 
—

 
—

 
(21,752
)
 
—

 
—

 
(21,752
)
 
—

 
(21,752
)
Common stock issued through distribution reinvestment plan
 
—

 
—

 
27,169

 
—

 
271

 
—

 
—

 
271

 
—

 
271

Equity-based compensation
 
—

 
—

 
185,663

 
2

 
223

 
—

 
—

 
225

 
—

 
225

Distributions declared
 
—

 
—

 
—

 
—

 
—

 
—

 
(2,519
)
 
(2,519
)
 
—

 
(2,519
)
Common stock repurchases
 
—

 
—

 
—

 
—

 
(25
)
 
—

 
—

 
(25
)
 
—

 
(25
)
Contribution transactions
 
—

 
—

 
—

 
—

 
(16,769
)
 
—

 
—

 
(16,769
)
 
—

 
(16,769
)
Contributions from non-controlling interest holders
 
—

 
—

 
—

 
—

 
(3,875
)
 
—

 
—

 
(3,875
)
 
3,875

 
—

Distributions to non-controlling interest holders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(68
)
 
(68
)
Net loss
 
—

 
—

 
—

 
—

 
—

 
—

 
(4,699
)
 
(4,699
)
 
(105
)
 
(4,804
)
Other comprehensive loss
 
—

 
—

 
—

 
—

 
—

 
(98
)
 
—

 
(98
)
 
—

 
(98
)
Balance, December 31, 2011
 
—

 
—

 
17,162,016

 
172

 
144,230

 
(98
)
 
(7,218
)
 
137,086

 
3,702

 
140,788

Issuance of preferred stock
 
6,990,328

 
70

 
—

 
—

 
8,992

 
—

 
—

 
9,062

 
—

 
9,062

Issuance of common stock
 
—

 
—

 
164,775,688

 
1,648

 
1,911,126

 
—

 
—

 
1,912,774

 
—

 
1,912,774

Excess of ARCT IV Merger considerations over historical cost
 
—

 
—

 
—

 
—

 
(93,421
)
 
—

 
—

 
(93,421
)
 
—

 
(93,421
)
Offering costs, commissions and dealer manager fees
 
—

 
—

 
—

 
—

 
(218,431
)
 
—

 
—

 
(218,431
)
 
—

 
(218,431
)
Common stock issued through distribution reinvestment plan
 
—

 
—

 
2,686,141

 
27

 
27,109

 
—

 
—

 
27,136

 
—

 
27,136

Equity based compensation
 
—

 
—

 
112,950

 
1

 
1,229

 
—

 
—

 
1,230

 
—

 
1,230

Distributions declared
 
—

 
—

 
—

 
—

 
—

 
—

 
(75,416
)
 
(75,416
)
 
—

 
(75,416
)
Common stock repurchases
 
—

 
—

 
(183,119
)
 
(2
)
 
(1,951
)
 
—

 
—

 
(1,953
)
 
—

 
(1,953
)
OP Units issued to acquire real estate investment
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
6,352

 
6,352

Contributions from non-controlling interest holders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
7,375

 
7,375

Distributions to non-controlling interest holders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(663
)
 
(663
)
Designated derivatives, fair value adjustment
 
—

 
—

 
—

 
—

 
—

 
(3,743
)
 
 
 
(3,743
)
 
—

 
(3,743
)
Net loss
 
—

 
—

 
—

 
—

 
—

 
—

 
(41,936
)
 
(41,936
)
 
(301
)
 
(42,237
)
Other comprehensive loss
 
—

 
—

 
—

 
—

 
—

 
(93
)
 
—

 
(93
)
 
—

 
(93
)
Balance, December 31, 2012
 
6,990,328

 
70

 
184,553,676

 
1,846

 
1,778,883

 
(3,934
)
 
(124,570
)
 
1,652,295

 
16,465

 
1,668,760


F-5

 
 
Convertible Preferred Stock
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number
of Shares
 
Par
Value
 
Number
of Shares
 
Par
Value
 
Additional Paid-In Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Accumulated
Deficit
 
Total Stock-holders' Equity
 
Non-Controlling Interests
 
Total Equity
Issuances of preferred stock
 
36,037,691

 
360

 
—

 
—

 
—

 
—

 
—

 
360

 
—

 
360

Issuances of common stock
 
—

 
—

 
78,215,719

 
781

 
2,153,144

 
—

 
—

 
2,153,925

 
—

 
2,153,925

Excess of ARCT IV Merger considerations over historical cost
 
—

 
—

 
—

 
—

 
(557,557
)
 
—

 
—

 
(557,557
)
 
—

 
(557,557
)
Offering costs, commissions and dealer manager fees
 
—

 
—

 
—

 
—

 
(165,369
)
 
—

 
—

 
(165,369
)
 
—

 
(165,369
)
Common stock issued through dividend reinvestment plan
 
—

 
—

 
940,737

 
10

 
25,554

 
—

 
—

 
25,564

 
—

 
25,564

Common stock repurchases
 
—

 
—

 
(28,319,972
)
 
(283
)
 
(357,758
)
 
—

 
—

 
(358,041
)
 
—

 
(358,041
)
Conversion of Convertible Preferred Stock Series A and B to common stock
 
(828,472
)
 
(8
)
 
829,629

 
8

 
—

 
—

 
—

 
—

 
—

 
—

Issuance of common stock in conversion of Convertible Preferred Stock Series C
 
—

 
—

 
1,411,030

 
14

 
17,382

 
—

 
—

 
17,396

 
—

 
17,396

Conversion of OP Units to common stock
 
—

 
—

 
599,233

 
6

 
5,794

 
—

 
—

 
5,800

 
(5,800
)
 
—

Equity based compensation
 
—

 
—

 
1,004,673

 
10

 
835

 
—

 
—

 
845

 
32,900

 
33,745

Amortization of restricted shares
 
—

 
—

 
—

 
—

 
7,116

 
—

 
—

 
7,116

 
—

 
7,116

Equity component of convertible debt
 
—

 
—

 
—

 
—

 
28,559

 
—

 
—

 
28,559

 
—

 
28,559

Consideration to Former Manager for internalization
 
—

 
—

 
—

 
—

 
2,704

 
—

 
(5,738
)
 
(3,034
)
 
—

 
(3,034
)
 Distributions declared
 
—

 
—

 
—

 
—

 
—

 
—

 
(259,468
)
 
(259,468
)
 
—

 
(259,468
)
Issuance of OP Units to affiliate
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
108,247

 
108,247

 Contributions from non-controlling interest holders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
30,861

 
30,861

 Distributions to non-controlling interest holders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(8,389
)
 
(8,389
)
Non-controlling interests retained in CapLease Merger
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
567

 
567

 Redemption of OP Units
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1,152
)
 
(1,152
)
Net loss
 
—

 
—

 
—

 
—

 
—

 
 
 
(474,740
)
 
(474,740
)
 
(5,716
)
 
(480,456
)
Other comprehensive income
 
—

 
—

 
—

 
—

 
—

 
11,600

 
—

 
11,600

 
—

 
11,600

Balance, December 31, 2013
 
42,199,547

 
$
422

 
239,234,725

 
$
2,392

 
$
2,939,287

 
$
7,666

 
$
(864,516
)
 
$
2,085,251

 
$
167,983

 
$
2,253,234


The accompanying notes are an integral part of this statement.


F-6

AMERICAN REALTY CAPITAL PROPERTIES, INC. 
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Cash flows from operating activities:
 
 

 
 

 
 
Net loss
 
$
(480,456
)
 
$
(42,237
)
 
$
(4,804
)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
 
 
 
 
 
 
Issuance of OP Units for ARCT III Merger
 
108,247

 
—

 
—

Depreciation
 
162,027

 
33,038

 
1,879

Amortization of intangible lease assets
 
49,345

 
7,965

 
244

Amortization of deferred costs
 
26,895

 
2,031

 
200

Amortization of above- and below-market lease asset
 
(176
)
 
118

 
—

Amortization of discounts and premiums
 
(1,700
)
 
—

 
—

(Gain) loss on held for sale properties
 
(14
)
 
600

 
815

Equity based compensation
 
43,565

 
1,230

 
225

Unrealized gain on derivative instruments
 
(1,739
)
 
—

 
—

Loss on sale of investments, net
 
2,206

 
—

 
—

Loss in extinguishment of Series C Stock
 
13,749

 
—

 
—

Changes in assets and liabilities:
 
 
 
 
 
 
Investment in direct financing leases
 
2,505

 
—

 
—

Prepaid expenses and other assets
 
(20,406
)
 
(5,089
)
 
(546
)
Accounts payable and accrued expenses
 
100,166

 
8,277

 
843

Deferred rent and other liabilities
 
8,555

 
3,507

 
887

Net cash provided by (used in) operating activities
 
12,769

 
9,440

 
(257
)
Cash flows from investing activities:
 
 
 
 
 
 
Investments in real estate and other assets
 
(3,520,412
)
 
(1,659,536
)
 
(89,981
)
Acquisition of a real estate business, net of cash acquired of $41,779
 
(878,898
)
 
—

 
—

Investment in direct financing leases
 
(68,617
)
 
—

 
—

Capital expenditures
 
(9,755
)
 
(54
)
 
—

Principal repayments received from borrowers
 
442

 
—

 
—

Purchase of assets from Manager
 
(1,584
)
 
—

 
—

Proceeds from sale of property held for sale
 
—

 
553

 
—

Deposits for real estate investments
 
(101,887
)
 
(638
)
 
—

Purchases of investment securities
 
(81,590
)
 
(41,747
)
 
—

Proceeds from sale of investment securities
 
119,542

 
—

 
—

Net cash used in investing activities
 
(4,542,759
)
 
(1,701,422
)
 
(89,981
)
Cash flows from financing activities:
 
 
 
 
 
 
Proceeds from mortgage notes payable
 
6,924

 
229,798

 
21,470

Payments on mortgage notes payable
 
(5,711
)
 
—

 
—

Payments on other debt
 
(9,368
)
 
—

 
—

Proceeds from senior secured revolving credit facility
 
—

 
82,319

 
2,066

Payments on senior secured revolving credit facility
 
(124,604
)
 
(122
)
 
(11,159
)
Proceeds from senior corporate credit facility
 
1,889,800

 
—

 
—

Payments on senior corporate credit facility
 
(830,000
)
 
—

 
—

Proceeds from secured credit facility
 
789,000

 
—

 
—

Payments of deferred financing costs
 
(95,268
)
 
(13,974
)
 
(3,108
)
Proceeds from issuance of convertible debt
 
967,786

 
—

 
—

Common stock repurchases
 
(359,193
)
 
(1,534
)
 
—

Proceeds from issuances of preferred shares
 
—

 
9,000

 
—

Proceeds from issuance of Series C Stock
 
445,000

 
—

 
—

Cash payment on settlement of Series C Stock
 
(441,353
)
 
—

 
—

Proceeds from issuance of Series D Preferred Stock
 
287,991

 
—

—

—

Proceeds from issuances of common stock
 
2,158,486

 
1,909,520

 
122,993

Payments of offering costs and fees related to stock issuances
 
(165,327
)
 
(218,108
)
 
(20,884
)
Consideration to Former Manager for internalization
 
(5,738
)
 
—

 
—

Contributions from affiliate
 
—

 
—

 
2

Contributions from non-controlling interest holders
 
30,861

 
7,375

 
—

Distributions to non-controlling interest holders
 
(8,219
)
 
(663
)
 
(68
)
Distributions paid
 
(234,897
)
 
(37,673
)
 
(1,743
)
Advances from affiliates, net
 
(376
)
 
396

 
—

Change in restricted cash
 
(5,654
)
 
(1,108
)
 
—

Net cash provided by financing activities
 
4,290,140

 
1,965,226

 
109,569

Net change in cash and cash equivalents
 
(239,850
)
 
273,244

 
19,331

Cash and cash equivalents, beginning of period
 
292,575

 
19,331

 
—

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

 
$
292,575

 
$
19,331

Supplemental Disclosures:
 
 
 
 
 
 
Cash paid for interest
 
$
49,549

 
$
8,983

 
$
622

Cash paid for income taxes
 
1,711

 
173

 
—

Non-cash investing and financing activities:
 
 
 
 
 
 
OP units issued to acquire real estate investments
 
$
—

 
$
6,352

 
$
—

Common stock issued through distribution reinvestment plan
 
25,568

 
27,136

 
271

Initial proceeds from credit facility used to pay down mortgages assumed at formation
 
—

 
—

 
51,500

Mortgage note payable contributed in formation
 
—

 
—

 
13,850

The accompanying notes are an integral part of these statements.

F-7
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2013




Note 1 — Organization
American Realty Capital Properties, Inc. (the "Company" or "ARCP") is a Maryland corporation incorporated on December 2, 2010 that qualified as a real estate investment trust for U.S. federal income tax purposes beginning in the taxable year ended December 31, 2011. On September 6, 2011, the Company completed its initial public offering (the "IPO"). The Company's common stock trades on the NASDAQ Global Select Market ("NASDAQ") under the symbol "ARCP".
The Company is primarily in the business of acquiring, owning and operating single-tenant, freestanding commercial real estate properties. The Company focuses on investing in properties that are net leased to (i) credit tenants, which are generally large public companies with investment-grade ratings and other creditworthy tenants and (ii) governmental, quasi-governmental and not-for-profit entities. The Company's long-term business strategy is to acquire a diverse portfolio consisting of approximately 70% long-term leases and 30% medium-term leases, with an average portfolio remaining lease term of approximately 10 to 12 years. The Company considers properties that are leased on a "medium-term" basis to mean properties originally leased long-term (ten years or longer) that currently have a primary remaining lease duration of generally three to eight years, on average. The Company expects this investment strategy to provide for stable income from credit tenants and to provide for growth opportunities from re-leasing of current below market leases.
The Company has advanced its investment objectives by not only growing its net lease portfolio through organic acquisitions but also through strategic mergers and acquisitions. See Note 2 —Mergers and Acquisitions.
Substantially all of the Company's business is conducted through ARC Properties Operating Partnership, L.P., a Delaware limited partnership (the "OP"). The Company is the sole general partner and holder of 96.1% of the equity interests in the OP as of December 31, 2013. As of December 31, 2013, certain affiliates of the Company and certain unaffiliated investors are limited partners and owners of 3.3% and 0.6%, respectively, of the equity interests in the OP. Under the limited partnership agreement of the OP, after holding units of limited partner interests in the OP ("OP Units") for a period of one year, unless otherwise consented to by the Company, holders of OP Units have the right to redeem the OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the Company, as general partner of the OP, a corresponding number of shares of the Company's common stock. The remaining rights of the holders of OP Units are limited and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.
During the year ended December 31, 2013, ARC Properties Advisors, LLC (the Company's "Former Manager"), a wholly owned subsidiary of AR Capital LLC ("ARC"), managed the Company's affairs on a day to day basis and, as a result, the Company was generally externally managed, with the exception of certain acquisition, accounting and portfolio management services performed by employees of the Company. In August 2013, the Company's board of directors determined that it was in the best interests of the Company and its stockholders to become self-managed, and the Company completed its transition to self-management on January 8, 2014 (see Note 23 — Subsequent Events). In connection with becoming self-managed, the Company terminated the management agreement with its Former Manager, entered into employment and incentive compensation arrangements with its executives and acquired from its Former Manager certain assets necessary for its operations.
On March 13, 2014, the Company announced a plan to spin off substantially all of its multi-tenant shopping center properties into a newly formed publicly traded entity expected to qualify as a REIT, American Realty Capital Centers, Inc., that will operate under the name "ARCenters" and that is expected to trade on The NASDAQ Global Market under the symbol "ARCM". The OP is expected to retain a 25% ownership stake of ARCM's outstanding shares of common stock. The spin-off is proposed to be effected through a pro rata taxable special distribution of one share of ARCenters common stock for every 10 shares of the Company's common stock and every 10 OP Units. The initial Form 10 registration statement relating to the spin-off was filed with the U.S. Securities and Exchange Commission ("SEC") on April 5, 2014, and the distribution is expected to be completed in the second quarter of 2014. The Company's board of directors has unanimously approved a plan to pursue the spin-off. The transaction is subject to certain conditions, including declaration by the SEC that ARCenters' registration statement is effective, filing and approval of ARCenters' listing application with The NASDAQ Global Market, customary third-party consents, and formal approval and declaration of the specified distribution by the Company's board of directors. The Company may, at any time and for any reason until the proposed transaction is complete, abandon the spin-off or modify or change its terms.

F-8
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

As discussed in Note 2 —Mergers and Acquisitions, on January 3, 2014, the Company acquired American Realty Capital Trust IV, Inc. ("ARCT IV"). The Company and ARCT IV, from inception to January 3, 2014, were considered to be entities under common control because the entities' advisors were wholly-owned subsidiaries of ARC. ARC and its related parties had ownership interests in the Company and ARCT IV through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities were contractually eligible to receive potential fees for their services from both of the companies, including asset management fees, incentive fees and other fees and had continued to receive fees from the Company prior to the Company's transition to self-management, which was completed on January 8, 2014. Due to the significance of these fees, the entities' advisors and ultimately ARC were determined to have a significant economic interest in both companies, in addition to having the power to direct the activities of the companies through advisory/management agreements, which qualified them as affiliated companies under common control in accordance with U.S. GAAP. Accordingly, these financial statements have been re-cast in applying the carryover basis of accounting to include ARCT IV.
Note 2 — Mergers and Acquisitions
Completed Mergers and Significant Acquisitions
American Realty Capital Trust III, Inc. Merger
On December 14, 2012, the Company entered into an Agreement and Plan of Merger (the "ARCT III Merger Agreement") with American Realty Capital Trust III, Inc. ("ARCT III") and certain subsidiaries of each company. The ARCT III Merger Agreement provided for the merger of ARCT III with and into a subsidiary of the Company (the "ARCT III Merger"). The ARCT III Merger was consummated on February 28, 2013.
Pursuant to the terms and subject to the conditions set forth in the ARCT III Merger Agreement, each outstanding share of common stock of ARCT III, including restricted shares which became vested, was converted into the right to receive (i) 0.95 of a share of the Company's common stock, (the "ARCT III Exchange Ratio") or (ii) $12.00 in cash. In addition, each outstanding unit of equity ownership of the ARCT III Operating Partnership ("ARCT III OP") was converted into the right to receive 0.95 of the same class of unit of equity ownership in the OP.
Upon the closing of the ARCT III Merger on February 28, 2013, the Company paid an aggregate of $350 million in cash for the 29.2 million shares, or 16.5% of the then outstanding shares of ARCT III's common stock (which is equivalent to 27.7 million shares of the Company's common stock based on the ARCT III Exchange Ratio). In addition, 140.7 million shares of the Company's common stock were issued in exchange for 148.1 million shares of ARCT III's common stock adjusted for the ARCT III Exchange Ratio.
Upon the consummation of the ARCT III Merger, American Realty Capital Trust III Special Limited Partner, LLC (the "ARCT III Special Limited Partner"), the holder of the special limited partner interest in the ARCT III OP, was entitled to subordinated distributions of net sales proceeds from ARCT III OP which resulted in the issuance of units of limited partner interests in the ARCT III OP, when after applying the ARCT III Exchange Ratio, resulting in the issuance of an additional 7.3 million OP Units to affiliates of the the Company's Former Manager. The parties had agreed that such OP Units would be subject to a minimum one-year holding period from the date of issuance before being exchangeable into the Company's common stock.
Also in connection with the ARCT III Merger, the Company entered into an agreement with ARC and its affiliates to internalize certain functions performed by them prior to the ARCT III Merger, reduce certain fees paid to affiliates, purchase certain corporate assets and pay certain merger related fees. See Note 18 — Related Party Transactions and Arrangements.

F-9
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Accounting Treatment for the ARCT III Merger
The Company and ARCT III, from inception to the ARCT III Merger date, were considered to be entities under common control. Both entities' advisors were wholly owned subsidiaries of ARC. ARC and its related parties had significant ownership interests in the Company and ARCT III through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities were contractually eligible to receive potential fees for their services to both of the companies including asset management fees, incentive fees and other fees and continued to receive fees from the Company prior to the Company's transition to self-management. Due to the significance of these fees, the advisors and ultimately ARC were determined to have a significant economic interest in both companies in addition to having the power to direct the significant activities of the companies through advisory/management agreements, which qualified them as affiliated companies under common control in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The acquisition of an entity under common control is accounted for on the carryover basis of accounting, whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the ARCT III Merger date. In addition, U.S. GAAP requires the Company to present historical financial information as if the merger had occurred as of the beginning of the earliest period presented. Therefore, the accompanying financial statements including the notes thereto are presented as if the ARCT III Merger had occurred on January 1, 2011.
GE Capital Portfolio Acquisitions
On June 27, 2013, the Company acquired, through subsidiaries of the OP, from certain affiliates of GE Capital Corp., the equity interests in the entities that own a real estate portfolio comprised of 447 properties (the "GE Capital Portfolio") for a purchase price of $773.9 million, exclusive of closing costs, with no liabilities assumed. The 447 properties are subject to 409 property operating leases, as well as 38 direct financing leases.
During the year ended December 31, 2013, ARCT IV acquired, from certain affiliates of GE Capital Corp., the equity interests in the entities that own a real estate portfolio comprised of 924 properties (the "ARCT IV GE Capital Portfolio") for a purchase price of $1.4 billion, exclusive of closing costs, with no liabilities assumed. The 924 properties are subject to 912 property operating leases, as well as 12 direct financing leases.
CapLease, Inc. Merger
On May 28, 2013, the Company entered into an Agreement and Plan of Merger (the "CapLease Merger Agreement") with CapLease, Inc., a Maryland corporation ("CapLease"), and certain subsidiaries of each company. The CapLease Merger Agreement provided for the merger of CapLease with and into a subsidiary of the Company (the "CapLease Merger").
On November 5, 2013, the Company completed the merger with CapLease pursuant to the CapLease Merger Agreement. Pursuant to the terms of the CapLease Merger Agreement, each outstanding share of common stock of CapLease, other than shares owned by the Company, CapLease or any of their respective wholly owned subsidiaries, was converted into the right to receive $8.50. Each outstanding share of preferred stock of CapLease, other than shares owned by the Company, CapLease or any of their respective wholly owned subsidiaries, was converted into the right to receive an amount in cash equal to the sum of $25.00 plus all accrued and unpaid dividends on such shares of preferred stock. In addition, in connection with the merger of CapLease, LP with and into the OP (the "CapLease Partnership Merger"), each outstanding unit of equity ownership of CapLease's operating partnership, other than units owned by CapLease or any wholly owned subsidiary of CapLease, was converted into the right to receive $8.50. Shares of CapLease's outstanding restricted stock were accelerated and became fully vested, and restricted stock and any outstanding performance shares were fully earned and received $8.50 per share. In total, cash consideration of $920.7 million was paid to the common and preferred shareholders.
Accounting Treatment for the CapLease Merger
The CapLease Merger has been accounted for under the acquisition method of accounting under U.S. GAAP. Under the acquisition method of accounting, the assets acquired and liabilities assumed from CapLease have been recorded as of the acquisition date at their respective fair values. Any excess of purchase price over the fair values is recorded as goodwill. Results of operations for CapLease are included in the Company's consolidated financial statements from the date of acquisition. See Note 5 — CapLease Acquisition.

F-10
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

American Realty Capital Trust IV, Inc. Merger
On July 1, 2013, the Company entered into an Agreement and Plan of Merger, as amended on October 6, 2013 and October 11, 2013, (the "ARCT IV Merger Agreement") with American Realty Capital Trust IV, Inc., a Maryland corporation ("ARCT IV"), and certain subsidiaries of each company. The ARCT IV Merger Agreement provided for the merger of ARCT IV with and into a subsidiary of the OP (the "ARCT IV Merger"). The Company consummated the ARCT IV Merger on January 3, 2014.
Pursuant to the terms of the ARCT IV Merger Agreement, as amended, each outstanding share of common stock of ARCT IV, including unvested restricted shares that vested in conjunction with the ARCT IV Merger, was exchanged for (i) $9.00 in cash, (ii) 0.5190 of a share of the Company's common stock (the "ARCT IV Exchange Ratio") and (iii) 0.5937 of a share of a new series of preferred stock of the Company designated as the 6.70% Series F Cumulative Redeemable Preferred Stock ("Series F Preferred Stock") and each outstanding unit of ARCT IV's operating partnership ("ARCT IV OP Unit"), other than ARCT IV OP Units held by the American Realty Capital Trust IV Special Limited Partner, LLC, (the "ARCT IV Special Limited Partner") and American Realty Capital Advisors IV, LLC (the "ARCT IV Advisor") was exchanged for (i) $9.00 in cash, (ii) 0.5190 of an OP Unit and (iii) 0.5937 of a OP Unit designated as Series F Preferred Units ("Series F OP Units"). In total, the Company paid $650.9 million in cash, issued 36.9 million shares of common stock and 42.2 million shares of Series F Preferred Stock, and issued 0.7 million units of Series F OP Units and 0.6 million OP Units to the former ARCT IV shareholders and ARCT IV OP Unit holders in connection with the consummation of the ARCT IV Merger. In addition, each outstanding ARCT IV Class B Unit (as defined below) and each outstanding ARCT IV OP Unit held by the ARCT IV Special Limited Partner and the ARCT IV Advisor was converted into 2.3961 OP Units, resulting in the Company issuing 1.2 million OP Units.
On January 3, 2014, the OP entered into a Contribution and Exchange Agreement (the "ARCT IV Contribution and Exchange Agreement") with the ARCT IV OP, ARCT IV Special Limited Partner and ARC Real Estate Partner, LLC, an entity under common ownership with the Former Manager. The ARCT IV Special Limited Partner was entitled to receive certain distributions from the ARCT IV OP, including the subordinated distribution of net sales proceeds resulting from an "investment liquidity event" (as defined in the agreement of limited partnership of the ARCT IV OP). The ARCT IV Merger constituted an "investment liquidity event," as a result of which the ARCT IV Special Limited Partner, in connection with management's successful attainment of the 6.0% performance hurdle and the return to ARCT IV's stockholders of approximately $358.3 million in addition to their initial investment, was entitled to receive a subordinated distribution of net sales proceeds from the ARCT IV OP equal to approximately $63.2 million. Pursuant to the ARCT IV Contribution and Exchange Agreement, the ARCT IV Special Limited Partner contributed its interest in the ARCT IV OP, inclusive of the subordinated distribution proceeds received, to the ARCT IV OP in exchange for 2.8 million equity units of the ARCT IV OP, based on agreed upon price per share of $22.50. The fair value of these units at date of issuance was $78.2 million and has been included in merger and other transaction costs in the accompanying consolidated statement of operations for the three months ended March 31, 2014. Upon consummation of the ARCT IV Merger, these equity units were immediately converted to 6.7 million OP Units after application of the exchange ratio of 2.3961 per share. In conjunction with the ARCT IV Merger Agreement, the ARCT IV Special Limited Partner agreed to a minimum two-year holding period for these OP Units before converting them to shares of Company common stock.
In addition, as part of the ARCT IV Contribution and Exchange Agreement, ARC Real Estate Partners, LLC, contributed $750,000 in cash to the ARCT IV OP, effective prior to the consummation of the ARCT IV Merger, in exchange for ARCT IV OP Units. Upon the consummation of the ARCT IV Merger, these equity units converted at an exchange ratio of 2.3961 OP Units per ARCT IV OP Unit, resulting in the Company issuing 0.1 million OP Units.

F-11
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Accounting Treatment for the ARCT IV Merger
The Company and ARCT IV, from inception to the ARCT IV Merger date, were considered to be entities under common control. Both entities' advisors were wholly owned subsidiaries of ARC. ARC and its related parties had ownership interests in the Company and ARCT IV through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities were contractually eligible to receive potential fees for their services to both of the companies including asset management fees, incentive fees and other fees and had continued to receive fees from the Company prior to the Company's transition to self-management. Due to the significance of these fees, the advisors and ultimately ARC were determined to have a significant economic interest in both companies in addition to having the power to direct the activities of the companies through advisory/management agreements, which qualified them as affiliated companies under common control in accordance with U.S. GAAP. The acquisition of an entity under common control is accounted for on the carryover basis of accounting, whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the ARCT IV Merger date. In addition, U.S. GAAP requires the Company to present historical financial information as if the entities were combined for each period presented. Therefore, the accompanying financial statements including the notes thereto are presented as if the ARCT IV Merger, including the impact of the equity transactions entered to consummate the merger, had occurred on January 1, 2011.
Fortress Portfolio Acquisition
On July 24, 2013, ARC and another related entity, on behalf of the Company and certain other entities sponsored directly or indirectly by ARC, entered into a purchase and sale agreement with affiliates of funds managed by Fortress Investment Group LLC ("Fortress") for the purchase of 196 properties owned by Fortress, for an aggregate contract purchase price of $972.5 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs, which were allocated to the Company based on the pro rata fair value of the properties acquired by the Company relative to the fair value of all 196 properties to be acquired from Fortress. Of the 196 properties, 120 properties were allocated to the Company (the "Fortress Portfolio"). On October 1, 2013, the Company closed on 41 of the 120 properties with a total purchase price of $200.3 million, exclusive of closing costs. The Company closed the acquisition of the remaining 79 properties in the Fortress Portfolio on January 8, 2014, for an aggregate contract purchase price of $400.9 million, exclusive of closing costs. The total purchase price of the Fortress Portfolio was $601.2 million, exclusive of closing costs. During the year ended December 31, 2013, the Company deposited $72.2 million into escrow in relation to the Fortress Portfolio, which has been included in prepaid expenses and other assets in the consolidated balance sheets.
Cole Real Estate Investments, Inc. Merger
On October 22, 2013, the Company entered into an agreement and plan of merger (the "Cole Merger Agreement") with Cole Real Estate Investments, Inc. ("Cole"), a Maryland corporation, and a wholly owned subsidiary of the Company. The Cole Merger Agreement provided for the merger of Cole with and into a wholly owned subsidiary of the Company (the "Cole Merger"). The Company consummated the Cole Merger on February 7, 2014 (the "Cole Acquisition Date").
Pursuant to the terms of the Cole Merger Agreement, each share of common stock of Cole issued and outstanding immediately prior to the effectiveness of the Cole Merger, including unvested restricted stock units ("RSUs") and performance stock units that vested in conjunction with the Cole Merger, other than shares owned by the Company, any subsidiary of the Company or any wholly owned subsidiary of Cole, was converted into the right to receive either (i) 1.0929 shares of common stock, par value $0.01 per share, of the Company (the "Stock Consideration") or (ii) $13.82 in cash (the "Cash Consideration" and together with the Stock Consideration, the "Merger Consideration"). Approximately 98% of all outstanding Cole holders received Stock Consideration and approximately 2% of outstanding Cole shares elected to receive Cash Consideration, pursuant to the terms of the Cole Merger Agreement, resulting in the Company issuing approximately 520.8 million shares of Company common stock and paying $181.8 million to holders of Cole shares based on their elections.
In addition, the Company issued approximately 2.8 million shares of Company common stock, in the aggregate, to certain executives of Cole pursuant to letter agreements entered into between the Company and such individuals concurrently with the execution of the Cole Merger Agreement, as previously disclosed by the Company. Additionally, effective as of the Cole Acquisition Date, the Company issued, but has not yet allocated, 0.4 million shares with dividend equivalent rights commensurate with the Company's common stock.

F-12
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The Company is in the process of gathering certain additional information in order to finalize its assessment of the fair value of the consideration transferred; thus, the fair values of currently recorded assets and liabilities are subject to change. The estimated fair value of the consideration transferred at the Cole Acquisition Date totaled approximately $7.5 billion and consisted of the following (in thousands):
 
As of Cole Acquisition
Date (Preliminary)
Estimated Fair Value of Consideration Transferred:
 
Cash
$
181,775

Common stock
7,285,868

Total consideration transferred
$
7,467,643

The fair value of the 520.8 million shares of common stock issued, excluding those common shares transferred to former Cole executives, was determined based on the closing market price of the Company's common stock on the Cole Acquisition Date.
Accounting Treatment for the Cole Merger
The Cole Merger will be accounted for under the acquisition method of accounting under U.S. GAAP. Under the acquisition method of accounting, the assets acquired and liabilities assumed from Cole will be recorded as of the acquisition date at their respective fair values. Any excess of purchase price over the fair values will be recorded as goodwill. Results of operations for Cole will be included in the Company's consolidated financial statements subsequent to the Cole Acquisition Date. The initial accounting for the business combination has not been completed due to the significant judgments and time necessary to complete third-party valuation of real estate and other assets.
Pending Significant Acquisition
Inland Portfolio Acquisition
On August 8, 2013, ARC and another related entity, on behalf of the Company and certain other entities sponsored directly or indirectly by ARC, entered into a purchase and sale agreement with Inland American Real Estate Trust, Inc. ("Inland") for the purchase of the equity interests of 67 companies owned by Inland for an aggregate contract purchase price of approximately $2.3 billion, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs. Of the 67 companies, the equity interests of 10 companies (the "Inland Portfolio") will be acquired, in total, by the Company from Inland for a purchase price of approximately $501.0 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs, which was allocated to the Company based on the pro rata fair value of the Inland Portfolio relative to the fair value of all 67 companies to be acquired from Inland by the Company and the other entities sponsored directly or indirectly by ARC. The Inland Portfolio is comprised of 33 properties. As of December 31, 2013, the Company has closed on five of the 33 properties for a total purchase price of $56.4 million, exclusive of closing costs. The Company closed the acquisition of 27 additional properties in the Inland Portfolio subsequent to December 31, 2013. The Company does not consider it probable that it will close on the remaining property. During the year ended December 31, 2013, the Company deposited $28.6 million into escrow in relation to the Inland Portfolio, which has been included in prepaid expenses and other assets in the consolidated balance sheets.
Note 3 — Summary of Significant Accounting Policies
Basis of Accounting
The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. GAAP.

F-13
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of the Company, consolidated joint venture arrangement and its subsidiaries. The portions of the consolidated joint venture arrangement not owned by the Company are presented as noncontrolling interests. In addition, as described in Note 1 — Organization, certain affiliates and non-affiliated third parties have been issued OP Units. Holders of OP Units are considered to be non-controlling interest holders in the OP and their ownership interest is reflected as equity in the consolidated balance sheets. In addition, a portion of the earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages. Furthermore, upon conversion of OP Units to common stock, any difference between the fair value of common shares issued and the carrying value of the OP Units converted is recorded as a component of equity. As of December 31, 2013 and 2012, there were 9,591,173 and 1,621,349 OP Units outstanding, respectively. In addition, as discussed in Note 2 — Mergers and Acquisitions, the historical information of ARCT III and ARCT IV has been presented as if the mergers had occurred as of the beginning of the earliest period presented.
All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity of which the Company is the primary beneficiary.
Reclassification
Certain reclassifications have been made to the previously issued historical financial statements of the Company to conform to this presentation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, investments in real estate, business combinations, and derivative financial instruments and hedging activities, as applicable.
Real Estate Investments
The Company records acquired real estate at costs and makes assessments as to the useful lives of depreciable assets. The Company considers the period of future benefit of the asset to determine the appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful life of 40 years for buildings, five to 15 years for building fixtures and improvements and the remaining lease term for acquired intangible lease assets.
Assets Held for Sale
The Company classifies real estate investments as held for sale when the Company has entered into a contract to sell the property, all material due diligence requirements have been satisfied, and the Company believes it is probable that the disposition will occur, or the Company is actively marketing the property and management has the intent to sell the property, among other conditions. Assets held for sale are recorded at the lower of carrying value or estimated fair value, less estimated cost to dispose of the asset. The results of operations and the related gain or loss on sale of properties that have been sold or that are classified as held for sale are included in discontinued operations in the consolidated statements of operations and comprehensive loss for all periods presented. At December 31, 2013 and 2012, the Company had one and two properties, respectively, that were classified as properties held for sale. See Note 21 — Discontinued Operations and Properties Held for Sale.
If circumstances arise that the Company previously considered unlikely and, as a result, the Company decides not to sell a property previously classified as held for sale, the Company will reclassify the property as held and used. The Company measures and records a property that is reclassified as held and used at the lower of (i) its carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held and used or (ii) the estimated fair value at the date of the subsequent decision not to sell.

F-14
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Development Activities
Project costs and expenses, which include interest expense, associated with the development, construction and lease-up of a real estate project are capitalized as construction in progress. Once the development and construction of the building is substantially completed, the amounts capitalized to construction in progress are transferred to (i) land and (ii) buildings and improvements. As required by U.S. GAAP, the Company computes interest expense on the full amount it has invested in the project, whether or not such investment is externally financed.
Impairment of Long Lived Assets
Periodically, or when circumstances indicate the carrying value of a property may not be recoverable, the Company assesses real estate investments 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. The Company has determined that the significant inputs used to estimate the fair value of the property full within Level 2 or Level 3 of fair value hierarchy. The Company did not record any impairment charges on real estate investments from continuing operations during the years ended December 31, 2013, 2012 and 2011. The Company did not record any impairment charges on real estate investments from discontinued operations during the year ended December 31, 2013. For the years ended December 31, 2012 and 2011, the Company recorded $0.6 million and $0.8 million as impairment charges from discontinued operations.
The Company reviews its direct financing leases at least annually to determine whether there has been an other-than-temporary decline in the current estimate of residual value of the property. The Company has determined that the significant inputs used to value these investments fall within Level 3 for fair value accounting. The residual value is an estimate of what the Company could realize upon the sale of the property at the end of the lease term, based on market information. If this review indicates that a decline in residual value has occurred that is other-than-temporary, the Company recognizes an impairment charge equal to the difference between the fair value and carrying value, which is discounted at the internal rate of return of the direct financing lease. The Company did not record any impairment charges on direct financing leases during the years ended December 31, 2013, 2012 and 2011.
Allocation of Purchase Price of Business Combinations including Acquired Properties
In accordance with the guidance for business combinations, the Company determines whether a transaction or other event is a business combination. If the transaction is determined to be a business combination, the Company determines if the transaction is considered to be between entities under common control. The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the merger date. All other business combinations are accounted for by applying the acquisition method of accounting. Under the acquisition method, the Company recognizes the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired entity. In addition, the Company evaluates the existence of goodwill or a gain from a bargain purchase. The Company will immediately expense acquisition-related costs and fees associated with business combinations and asset acquisitions.
The Company allocates the purchase price of acquired properties and businesses accounted for under the acquisition method of accounting to tangible and identifiable intangible assets acquired based on their respective fair values to tangible and identifiable intangible assets acquired based on their respective fair values. Tangible assets include land, buildings, equipment and tenant improvements on an as-if vacant basis. The Company utilizes various estimates, processes and information to determine the as-if vacant property value. Estimates of value are made using customary methods, including data from appraisals, comparable sales, discounted cash flow analysis and other methods. Identifiable intangible assets include amounts allocated to acquire leases for above- and below-market lease rates, the value of in-place leases, and the value of customer relationships.
Amounts allocated to land, buildings, equipment and fixtures are based on cost segregation studies performed by independent third parties or on the Company's analysis of comparable properties in its portfolio.

F-15
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The aggregate value of intangible assets related to in-place leases is primarily the difference between the property valued with existing in-place leases adjusted to market rental rates and the property valued as if vacant. Factors considered by the Company in its analysis of the in-place lease intangibles include an estimate of carrying costs during the expected lease-up period for each property, taking into account current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up period, which typically ranges from six to 18 months. The Company also estimates costs to execute similar leases including leasing commissions, legal and other related expenses.
Above-market and below-market in-place lease values for owned properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management's estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market lease intangibles are amortized as a decrease to rental income over the remaining term of the lease. The capitalized below-market lease values will be amortized as an increase to rental income over the remaining term of the lease and any fixed rate renewal periods provided within the respective leases. In determining the amortization period for below-market lease intangibles, the Company initially will consider, and periodically evaluate on a quarterly basis, the likelihood that a lessee will execute the renewal option. The likelihood that a lessee will execute the renewal option is determined 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.
The fair value of investments and debt are valued using techniques consistent with those disclosed in Note 9 — Fair Value of Financial Instruments, depending on the nature of the investment or debt. The fair value of all other assumed assets and liabilities based on the best information available.
The aggregate value of intangibles assets related to customer relationships is measured based on the Company's evaluation of the specific characteristics of each tenant's lease and the Company's overall relationship with the tenant. Characteristics considered by the Company in determining these values include the nature and extent of the Company's existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant's credit quality and expectations of lease renewals, among other factors.
The value of in-place leases is amortized to expense over the initial term of the respective leases, which range primarily from two to 20 years. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event does the amortization period for intangible assets exceed the remaining depreciable life of the building. If a tenant terminates its lease, the unamortized portion of the in-place lease value and customer relationship intangibles is charged to expense.
In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property and other market data. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, as well as subsequent marketing and leasing activities, in estimating the fair value of the tangible and intangible assets acquired and intangible liabilities assumed.

F-16
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Intangible lease assets and liabilities of the Company consist of the following as of December 31, 2013 and 2012 (amounts in thousands):
 
 
December 31,
 
 
2013
 
2012
Intangible Lease Assets:
 
 
 
 
In-place leases, gross
 
$
742,253

 
$
219,650

Accumulated amortization on in-place leases
 
(60,754
)
 
(11,247
)
In-place leases, net of accumulated amortization
 
681,499

 
208,403

Above market leases, gross
 
16,123

 
1,503

Accumulated amortization on above market leases
 
(657
)
 
(118
)
Above market leases, net of accumulated amortization
 
15,466

 
1,385

Total intangible lease assets, net
 
$
696,965

 
$
209,788

 
 
 
 
 
Intangible Lease Liabilities:
 
 
 
 
Below market leases, gross
 
$
(78,504
)
 
$
—

Accumulated amortization on below market leases
 
715

 
—

Below market leases, net of accumulated amortization
 
(77,789
)
 
—

Total intangible lease liabilities, net
 
$
(77,789
)
 
$
—

The following table provides the remaining weighted-average amortization period as of December 31, 2013 for intangible assets and liabilities and the projected amortization expense and adjustments to rental income for the next five years (amounts in thousands):
 
 
Remaining Weighted-Average Amortization Period in Years
 
2014
 
2015
 
2016
 
2017
 
2018
In-place leases:
 
 
 
 
 
 
 
 
 
 
 
 
Total to be included in amortization expense
 
10.17
 
$
104,066

 
$
94,656

 
$
86,460

 
$
78,172

 
$
70,558

Above market lease assets:
 
 
 
 
 
 
 
 
 
 
 
 
Total to be deducted from rental income
 
11.88
 
$
1,525

 
$
1,525

 
$
1,416

 
$
1,388

 
$
1,359

Below market lease liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Total to be included in rental income
 
22.68
 
$
(4,173
)
 
$
(4,169
)
 
$
(4,151
)
 
$
(4,151
)
 
$
(4,144
)
Goodwill
For business combinations accounted for under the acquisition method, after identifying all tangible assets and intangible assets and liabilities, the excess consideration paid for the fair value of the assets acquired and liabilities assumed represents goodwill. The Company allocates goodwill to the respective reporting units in which such goodwill arose. Goodwill acquired in the CapLease Merger comprises one reporting unit.
Cash and Cash Equivalents
Cash and cash equivalents include cash in bank accounts, as well as investments in highly-liquid money market funds with original maturities of three months or less.
The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company ("FDIC") up to an insurance limit. At December 31, 2013 and 2012, the Company had deposits of $52.7 million and $292.6 million, respectively, of which $44.3 million and $288.9 million were in excess of the amount insured by the FDIC. Although the Company bears risk to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result due to the high quality of the institutions.

F-17
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Restricted Cash
Restricted cash primarily consists of reserves related to lease expirations, as well as maintenance, structural and debt service reserves.
Investment in Direct Financing Leases
The Company has acquired certain properties that are subject to leases that qualify as direct financing leases in accordance with U.S. GAAP due to the significance of the lease payments from the inception of the leases compared to the fair value of the property. Investments in direct financing leases represent the fair value of the remaining lease payments on the leases and the estimated fair value of any expected residual property value at the end of the lease term. The fair value of the remaining lease payments is estimated using a discounted cash flow based on interest rates that would represent the Company's incremental borrowing rate for similar types of debt. The expected residual property value at the end of the lease term is estimated using market data and assessments of the remaining useful lives of the properties at the end of the lease terms, among other factors. Income from direct financing leases is calculated using the effective interest method over the remaining term of the lease.
As part of the update to the provisional allocation of the purchase price for the GE Capital Portfolio during the measurement period, the Company reclassified approximately $13.4 million from investment in direct financing leases receivables to investments in real estate, at cost.
Loans Held for Investments
The Company classifies its loans as long-term investments, as the Company intends to hold the loans for the foreseeable future or until maturity. Loan investments are carried on the Company's consolidated balance sheets at amortized cost (unpaid principal balance adjusted for unearned discount or premium and loan origination fees), net of any allowance for loan losses. Unearned discounts or premiums and loan origination fees are amortized as a component of interest income using the effective interest method over the life of the loan.
From time to time, the Company may determine to sell a loan in which case it must reclassify the asset as held for sale. Loans held for sale are carried at lower of cost or estimated fair value. From the period the Company acquired the loan investments through December 31, 2013, the Company has not sold or reclassified any loans as held for sale.
The Company evaluates its loan investments for possible impairment on a quarterly basis. Refer to Note 6 — Investment Securities, at Fair Value.
Commercial Mortgage-Backed Securities
The Company classifies all of its commercial mortgage-backed securities ("CMBS") as available for sale for financial accounting purposes. Under U.S. GAAP, securities classified as available for sale are carried on the consolidated balance sheet at fair value with the net unrealized gains or losses included in Accumulated Other Comprehensive Income (Loss), a component of Stockholders' Equity.
Any premiums or discounts on securities are amortized as a component of interest income using the effective interest method.
The Company estimates fair value on all securities investments quarterly based on a variety of inputs. Under applicable accounting guidance, securities where the fair value is less than the Company's cost are deemed impaired, and, therefore, must be measured for other-than-temporary impairment. If an impaired security (i.e., fair value below cost) is intended to be sold or required to be sold prior to expected recovery of the impairment loss, the full amount of the loss must be charged to earnings as other-than-temporary impairment. Otherwise, temporary impairment losses are charged to other comprehensive income (loss).
In estimating credit or other-than-temporary impairment losses, management considers a variety of factors including (1) the financial condition and near-term prospects of the credit, including credit rating of the security and the underlying tenant and an estimate of the likelihood, amount and expected timing of any default, (2) whether the Company expects to hold the investment for a period of time sufficient to allow for anticipated recovery in fair value, (3) the length of time and the extent to which the fair value has been below cost, (4) current market conditions, (5) expected cash flows from the underlying collateral and an estimate of underlying collateral values, and (6) subordination levels within the securitization pool. These estimates are highly subjective and could differ materially from actual results. From the period the Company acquired the CMBS through December 31, 2013, the Company had no other-than-temporary impairment losses.

F-18
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Deferred Costs, Net
Deferred costs, net consists of deferred financing costs net of accumulated amortization, deferred leasing costs net of accumulated amortization and deferred offering costs.
Deferred financing costs represent commitment fees, legal fees and other costs associated with obtaining commitments for financing. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined the financing will not close. At December 31, 2013 and 2012, the Company had $81.1 million and $15.1 million, respectively, of deferred financing costs net of accumulated amortization.
Deferred leasing costs, consisting primarily of lease commissions and payments made to assume existing leases, are deferred and amortized over the term of the lease. At December 31, 2013 and 2012, the Company had $0.2 million and $0.2 million, respectively, of deferred leasing costs, net of accumulated amortization.
Deferred offering costs represent professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with registering to sell shares of the Company's common stock. As of December 31, 2013, the Company had no deferred offering costs. As of December 31, 2012, the Company had $0.1 million of deferred offering costs related to the Company's $500 million universal shelf and resale registration statements filed with the SEC in August 2012.
Convertible Obligation to Series C Convertible Preferred Stockholders
On June 7, 2013, the Company issued, through a private placement, 28.4 million shares of Series C Convertible Preferred Stock (the "Series C Stock") for gross proceeds of $445.0 million. Due to an unconditional obligation to either redeem or convert the Series C Stock into a variable number of shares of common stock that is predominantly based on a fixed monetary amount, the preferred securities were classified as an obligation under U.S. GAAP and were presented in the consolidated balance sheets as a liability prior to their settlement in November 2013. Promptly following the closing of the CapLease Merger, which, as discussed in Note 2 — Mergers and Acquisitions, was consummated on November 5, 2013, the Company converted the Series C Stock. In accordance with the terms of the original agreement, the Series C Stock was converted into 1.4 million shares of common stock with the remaining balance of Series C Stock settled in cash consideration of $441.4 million.
Contingent Valuation Rights
On June 7, 2013, the Company issued to certain common stock investors 29.4 million contingent value rights ("Common Stock CVRs") and to the Series C Stock investors 28.4 million contingent value rights ("Preferred Stock CVRs"). In September 2013, certain investors holding the Common Stock CVRs received $20.4 million representing the maximum payment of $1.50 per share as defined in the agreement. The remaining Common Stock CVR holders received settlement of the amount owed to them of $23.7 million promptly following the CapLease Merger, which consummated on November 5, 2013, representing the maximum payment of $1.50 per share.
The Company elected to settle the Preferred Stock CVRs promptly following the closing of the CapLease Merger on November 5, 2013. The Company settled the Preferred Stock CVRs for $0.90 per Preferred Stock CVR for total cash consideration of $25.6 million.
Changes in the fair value of the contingent valuation rights obligation subsequent to issuance date were recorded in the consolidated statements of operations and comprehensive loss within gain/loss on derivatives, net in the period incurred. For the year-ended December 31, 2013, the Company recorded a loss on the CVRs of $69.7 million, representing the settled value.

F-19
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Convertible Debt
On July 29, 2013, the Company issued $300.0 million of Convertible Senior Notes (the "2018 Notes") and, pursuant to an over-allotment exercise by the underwriters of such 2018 Notes offering, issued an additional $10.0 million of its 2018 Notes on August 1, 2013. On December 10, 2013, the Company issued an additional $287.5 million of the 2018 Notes through a reopening of the "2018 Notes" indenture agreement. Also on December 10, 2013, the Company issued $402.5 million of Convertible Senior Notes (the 2020 Notes, collectively with the 2018 Notes, the "Convertible Notes"). The 2018 Notes mature August 1, 2018 and the 2020 Notes mature on December 15, 2020. The Convertible Notes are convertible to cash or shares of the Company's common stock at the Company's option. In accordance with U.S GAAP, the notes are accounted for as a liability with a separate equity component recorded for the conversion option. A liability was recorded for the Convertible Notes on the issuance date at fair value based on a discounted cash flow analysis using current market rates for debt instruments with similar terms. The difference between the initial proceeds from the Convertible Notes and the estimated fair value of the debt instruments resulted in a debt discount, with an offset recorded to additional paid-in capital representing the equity component. The debt discount is being amortized to interest expense over the expected lives of the Convertible Notes.
Derivative Instruments
The Company may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with its borrowings. Certain of the techniques used to hedge exposure to interest rate fluctuations may also be used to protect against declines in the market value of assets that result from general trends in debt markets. The principal objective of such agreements is to minimize the risks and/or costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions.
The Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.
The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designed and qualifies for hedge accounting treatment. If the Company elects not to apply hedge accounting treatment, any changes in the fair value of these derivative instruments is recognized immediately in gains (losses) on derivative instruments in the consolidated statements of operations and comprehensive loss. If the derivative is designated and qualifies for hedge accounting treatment the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) to the extent that it is effective. Any ineffective portion of a derivative's change in fair value will be immediately recognized in earnings.
Share Repurchase Programs
ARCT III's and ARCT IV's board of directors had adopted Share Repurchase Programs (the "ARCT III SRP" and the "ARCT IV SRP", respectively, and collectively the "SRPs") that enabled stockholders to sell their shares to ARCT III and ARCT IV, respectively, in limited circumstances. The SRPs permitted investors to sell their shares back to ARCT III or ARCT IV, as applicable, after they had held them for at least one year, subject to the significant conditions and limitations described below.
The purchase price per share of the ARCT III SRP depended on the length of time investors had held such shares as follows: after one year from the purchase date — the lower of $9.25 and 92.5% of the amount they actually paid for each share; after two years from the purchase date —the lower of $9.50 and 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $9.75 and 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $10.00 and 100% of the amount they actually paid for each share.

F-20
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The purchase price per share of the ARCT IV SRP depended on the length of time investors had held such shares as follows: after one year from the purchase date — the lower of $23.13 and 92.5% of the amount they actually paid for each share; after two years from the purchase date —the lower of $23.75 and 95.0% of the amount they actually paid for each share; after three years from the purchase date — the lower of $24.78 and 97.5% of the amount they actually paid for each share; and after four years from the purchase date — the lower of $25.00 and 100.0% of the amount they actually paid for each share.
Both ARCT III and ARCT IV were only authorized to repurchase shares pursuant to the SRPs up to the value of shares issued under their respective DRIP (as defined below) and limited the amount spent to repurchase shares in a given quarter to the value of the shares issued under the DRIP in that same quarter.
When a stockholder requested repurchases and the repurchases were approved by ARCT III's or ARCT IV's board of directors, as applicable, it reclassified such obligation from equity to a liability based on the settlement value of the obligation. The following table reflects the number of shares repurchased for the years ended December 31, 2013, 2012 and 2011.
 
 
Number of Requests
 
Number of Shares
 
Average Price per Share
2011
 
1
 
2,375

 
$
10.00

2012
 
75
 
180,744

 
10.07

2013
 
11
 
4,956

 
24.98

Cumulative repurchase requests as of December 31, 2013
 
87
 
188,075

 
$
10.46

Upon the ARCT III Merger, the ARCT III SRP was terminated. Upon the ARCT IV Merger, the ARCT IV SRP was terminated.
Upon the closing of the ARCT III Merger on February 28, 2013, pursuant to the terms of the ARCT III Merger Agreement, 29.2 million shares, or 16.5% of the then outstanding shares of ARCT III's common stock, were paid in cash at $12.00 per share, which is equivalent to 27.7 million shares of the Company's common stock based on the ARCT III Exchange Ratio. See Note 2 —Mergers and Acquisitions.
On August 20, 2013, the Company's board of directors reauthorized its $250 million share repurchase program which was originally authorized in February 2013. During the year ended December 31, 2013, the Company repurchased approximately 0.6 million shares at an average price of $13.06 per share or $7.5 million in total.
Distribution Reinvestment Plans
Pursuant to the ARCT III distribution reinvestment plan or ("ARCT III DRIP"), stockholders could have elected to reinvest distributions by purchasing shares of ARCT III common stock in lieu of receiving cash. No dealer manager fees or selling commissions were paid with respect to shares purchased pursuant to the ARCT III DRIP. Participants purchasing shares pursuant to the ARCT III DRIP had the same rights and were treated in the same manner as if such shares were issued pursuant to ARCT III's initial public offering (the "ARCT III IPO"). Shares issued pursuant to the ARCT III DRIP were recorded within stockholders' equity in the accompanying consolidated balance sheets in the period distributions were declared. During the years ended December 31, 2013, 2012 and 2011, ARCT III issued 0.5 million, 2.7 million and 27,169 shares of common stock, respectively, with a value of $4.9 million, $26.8 million and $0.3 million, respectively, in each case with a par value per share of $0.01, pursuant to the DRIP. Upon the closing of the ARCT III Merger, the DRIP was terminated.
Pursuant to the ARCT IV distribution reinvestment plan or ("ARCT IV DRIP"), stockholders could have elected to reinvest distributions by purchasing shares of ARCT IV common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the ARCT IV DRIP. Participants purchasing shares pursuant to the ARCT IV DRIP had the same rights and were treated in the same manner as if such shares were issued pursuant to ARCT IV's initial public offering (the "ARCT IV IPO"). Shares issued pursuant to the ARCT III DRIP were recorded within stockholders' equity in the accompanying consolidated balance sheet in the period distributions are declared. During the years ended December 31, 2013and 2012, ARCT IV issued 0.5 million and 7,690 shares of common stock with a value of $20.7 million and $0.4 million, respectively, and a par value per share of $0.01 pursuant to the ARCT IV DRIP.

F-21
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Revenue Recognition
Upon the acquisition of real estate, certain properties will have leases where minimum rent payments increase during the term of the lease. The Company will record rental revenue for the full term of each lease on a straight-line basis. When the Company acquires a property, the term of existing leases is considered to commence as of the acquisition date for the purposes of this calculation. Cost recoveries from tenants are included in tenant reimbursement income in the period the related costs are incurred, as applicable.
The Company's 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 the leases provide for rental increases at specified intervals, straight-line basis accounting requires the Company to record a receivable, and include in revenues, unbilled rent receivables that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. Straight-line rent receivables are included in prepaid expenses and other assets on the consolidated balance sheets. See Note 7 — Prepaid Expenses and Other Assets. The Company defers the revenue related to lease payments received from tenants in advance of their due dates. As of December 31, 2013 and 2012, the Company had $20.3 million and $4.3 million, respectively, of deferred rental income, which is included in deferred rent and other liabilities on the consolidated balance sheets.
The Company continually reviews receivables related to rent and unbilled rent receivables and determines 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. In the event that the collectability of a receivable is in doubt, the Company will record an increase in the allowance for uncollectible accounts or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss. As of December 31, 2013 and 2012, the Company determined that no allowance for uncollectible accounts was necessary.
Contingent Rental Income
The Company owns certain properties that have associated leases that require the tenant to pay contingent rental income based on a percentage of the tenant's sales after the achievement of certain sales thresholds, which may be monthly, quarterly or annual targets. As a lessor, the Company defers 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.
Offering and Related Costs
Offering and related costs include costs incurred in connection with the Company's issuance of common stock. These costs include, but are not limited to, (i) legal, accounting, printing, mailing and filing fees; (ii) escrow related fees, and (iii) reimbursement to the dealer manager for amounts they paid to reimburse the bonified due diligence expenses of broker-dealers.
Acquisition Related Expenses and Merger and Other Transaction Related Expenses
Acquisition related expenses include legal and other transaction related costs incurred in connection with self-originated acquisitions including purchases of portfolios. Merger and other transaction related expenses include the following costs (amounts in thousands):
 
 
Year Ended December 31,
 
 
2013
 
2012
Incentive fee paid to a subsidiary of the Former Sponsor in connection with the ARCT III Merger
 
$
98,360

 
$
—

Legal and other transaction related costs incurred in connection with mergers
 
109,428

 
2,603

Accelerated vesting of operating partnership units due to internalization
 
59,400

 
—

Acceleration of restricted share amortization resulting from the consummation of the Cole Merger
 
2,657

 
—

Other internalization costs
 
8,474

 
—

Total
 
$
278,319

 
$
2,603


F-22
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Equity Based Compensation
The Company has an equity based incentive award plan for its affiliated Manager, non-executive directors, officers, other employees and independent contractors who are providing services to the Company, as applicable, and a non-executive director restricted share plan, which are accounted for under the guidance for share-based payments. The expense for such awards is recognized over the vesting period or when the requirements for exercise of the award have been met. See Note 17 — Equity Based Compensation for additional information on these plans.
Per Share Data
Income (loss) per basic share of common stock is calculated by dividing net income (loss) less dividends on unvested restricted stock and dividends on preferred shares by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted income (loss) per share of common stock considers the effect of potentially dilutive shares of common stock outstanding during the period. As the Company has the ability and intent to settle all outstanding convertible debt in cash, the Company has excluded the if-converted shares from its calculation of diluted shares.
Income Taxes
Each of the Company, ARCT IV and ARCT III qualified as REITs under Sections 856 through 860 of the Internal Revenue Code (the "Code") commencing with the taxable year ended December 31, 2011. Being qualified for taxation as a REIT, each of the Company and ARCT III generally will not be subject to federal corporate income tax to the extent it distributes its REIT taxable income to its stockholders, and so long as it distributes at least 90% of its REIT taxable income, computed without regard to the dividends paid deduction and excluding net capital gain. REITs are subject to a number of other organizational and operational requirements. Each of the Company, ARCT IV and ARCT III may still be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.
As of December 31, 2013, the Company had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended December 31, 2010 remain open to examination by the major taxing jurisdictions to which the Company is subject.
Reportable Segments
The Company has determined that it has one reportable segment with activities related to investing in real estate and real estate-related assets. The Company's investments in real estate generate rental revenue and other income through the leasing of properties, which comprised 100% of its total consolidated revenues. Although the Company's investments in real estate will be geographically diversified throughout the United States, management evaluates operating performance on an individual property level. The Company's properties have been aggregated into one reportable segment.
Recent Accounting Pronouncements
In December 2011, the Financial Accounting Standards Board ("FASB") issued guidance regarding disclosures about offsetting assets and liabilities, which requires entities to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance was effective for fiscal years and interim periods beginning on or after January 1, 2013 with retrospective application for all comparative periods presented. The adoption of this guidance, which is related to disclosure only, did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. Refer to Note 6 — Derivatives and Hedging Activities for the Company's disclosure of information about offsetting and related arrangements.
In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments allow an entity to initially assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity is no longer required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments were effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this guidance did not have a material impact on the Company's consolidated financial position, results of operations or cash flows.

F-23
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

In February 2013, the FASB issued guidance which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The guidance was effective for annual and interim periods beginning after December 15, 2012. The adoption of this guidance, which is related to disclosure only, did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. Refer to Note 14 — Derivatives and Hedging Activities for the Company's disclosure of the information about the amounts reclassified out of accumulated other comprehensive income by component.
In February 2013, the FASB issued new accounting guidance clarifying the accounting and disclosure requirements for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial position, results of operations or cash flows.
In April 2014, the FASB issued Accounting Standards Update, 2014-08 Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08"), which amends the reporting requirements for discontinued operations by updating the definition of a discontinued operation to be a component of an entity that represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results, resulting in fewer disposals that qualify for discontinued operations reporting yet the pronouncement also requires expanded disclosures for discontinued operations. The Company adopted ASU 2014-08 effective January 1, 2014. Starting with the first quarter of 2014, the results of operations for all qualifying disposals and properties classified as held for sale that were not previously reported in discontinued operations will be presented within income from continuing operations on the accompanying consolidated statements of income.

F-24
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Note 4 — Real Estate Investments
Excluding the CapLease Merger, the following table presents the allocation of the assets acquired and liabilities assumed during the periods presented (dollar amounts in thousands):
 
 
Year Ended December 31,
 
 
2013(1)
 
2012
Real estate investments, at cost:
 
 
 
 
Land
 
$
883,491

 
$
237,282

Buildings, fixtures and improvements
 
2,311,211

 
1,229,230

Total tangible assets
 
3,194,702

 
1,466,512

Acquired intangible assets:
 
 
 
 
In-place leases
 
334,839

 
197,873

Above market leases
 
12,317

 
1,503

Total assets acquired, net
 
3,541,858

 
1,665,888

Assumed intangible liabilities:
 
 
 
 
Below market leases
 
(21,446
)
 
—

Total liabilities acquired, net
 
(21,446
)
 
—

OP Units issued to acquire real estate investments
 
—

 
(6,352
)
Cash paid for acquired real estate investments
 
$
3,520,412

 
$
1,659,536

Number of properties acquired
 
1,739

 
573

_______________________________________________
(1) Excludes 50 properties comprised of $66.1 million of net investments subject to direct financing leases.
The following table presents unaudited pro forma information as if the acquisitions, including the CapLease Merger discussed in Note 5 — CapLease Acquisition, during the year ended December 31, 2013 had been consummated on January 1, 2012. These amounts have been calculated after applying the Company's accounting policies and adjusting the results of acquisitions to reflect the additional depreciation and amortization and interest expense that would have been charged had the acquisitions occurred on January 1, 2012. Additionally, the unaudited pro forma net loss attributable to stockholders was adjusted to exclude acquisition related expenses of $76.1 million and $45.1 million for the years ended December 31, 2013 and 2012, respectively, and merger and other transaction related expenses of $278.3 million and $2.6 million for the years ended December 31, 2013 and 2012, respectively (amounts in thousands).
 
 
Year Ended December 31,
 
 
2013
 
2012
Pro forma revenues
 
$
574,058

 
$
467,434

Pro forma net loss attributable to stockholders
 
$
(75,132
)
 
$
(15,708
)

F-25
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Future Lease Payments
The following table presents future minimum base rental cash payments 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 (amounts in thousands):
 
 
Future Minimum
Operating Lease
Base Rent Payments
 
Future Minimum
Direct Financing Lease Payments(1)
2014
 
$
522,563

 
$
5,402

2015
 
512,833

 
5,028

2016
 
496,691

 
4,946

2017
 
460,070

 
4,545

2018
 
424,934

 
3,455

Thereafter
 
2,734,499

 
10,352

Total
 
$
5,151,590

 
$
33,728

_______________________________________________
(1) 50 properties are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted cash flows of the lease payments. Amounts reflected are the cash rent on these respective properties.
Net Investment in Direct Financing Leases
The components of the Company's net investment in direct financing leases as of December 31, 2013 are as follows (amounts in thousands):
 
 
December 31, 2013
Future minimum lease payments receivable
 
$
33,729

Unguaranteed residual value of property
 
46,172

Unearned income
 
(13,789
)
Net investment in direct financing leases
 
$
66,112

The Company had no investments in direct financing leases as of December 31, 2012.
Development Activities
Prior to the CapLease Acquisition Date (as defined below), Caplease entered into an agreement to construct a distribution warehouse in Columbia, South Carolina on a build-to-suit basis for a large private company tenant. The new build-to-suit project has an estimated total investment of $22.0 million. Construction activity and funding of the project commenced during June 2013.
Also prior to the CapLease Acquisition Date, CapLease entered into an agreement with a major Texas-based developer to develop a 150,000 square foot speculative office building in The Woodlands, Texas, adjacent to and part of the same development as an existing office building owned by CapLease and purchased in 2012. Costs of the project which are budgeted to be $34.0 million are scheduled to be funded by equity contributions from the Company and its developer partner, and $17.0 million of advances during the construction period under a development loan entered into with Amegy Bank. All equity contributions are scheduled to be borne as follows: the Company, 90%; and the developer, 10%; except for cost overruns, which will be borne 50% by each. Because the Company has a controlling financial interest in the investment, it consolidates the investment for financial accounting purposes. The Company has an option to purchase, and the developer the option to sell to the Company, in each case at fair market value, the developer's interest in the project upon (i) substantial completion of the project and (ii) leases being entered into for 95% of the square footage of the project. Construction activity and funding of the project commenced during the quarter ended September 30, 2013.

F-26
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The table below details the Company's investment in its pending development projects as of December 31, 2013. The information included in the table below represents management's estimates and expectations at December 31, 2013 which are subject to change. The Company's disclosures regarding certain projections or estimates of completion dates may not reflect actual results (dollar amounts in thousands).
Location
 
Tenant
 
Property
Type
 
Approximate
Square Feet
 
Lease
Term
(years)
 
Percent
Owned
 
Investment
through
12/31/13
 
Estimated
Remaining Investment
 
Estimated
Total
Investment
 
Estimated
Completion
Date
Columbia, South Carolina
 
Large private company
 
Warehouse
 
450,000
 
10.5(1)
 
100%
 
$14,745
 
$7,325
 
$22,033
 
Q1 2014
The Woodlands, Texas
 
N/A - speculative development
 
Office building
 
150,000
 
N/A
 
90%
 
$7,257
 
$26,775
 
$33,987
 
Q3 2014
_______________________________________________
(1) The lease is in force and the 10.5 year lease term will commence upon substantial completion of the building.
The amount of the "Investment" as of December 31, 2013 includes capitalized interest of approximately $37,000 for the Columbia, South Carolina project and approximately $45,000 for The Woodlands, Texas project. The amount of capitalized interest subsequent to the CapLease Acquisition Date through December 31, 2013 was not significant.
Tenant Concentration
The following table lists the tenants of the Company whose annualized rental income on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of December 31, 2013. Annualized rental income for net leases is rental income on a straight-line basis as of the period reported, which includes the effect of tenant concessions such as free rent, as applicable. There were no tenants exceeding 10% of consolidated annualized rental income on a straight-line basis at December 31, 2013.
 
 
Year Ended December 31,
 
 
2013
 
2012
Citizens Bank
 
*
 
13.8%
Dollar General
 
*
 
12.3%
FedEx
 
*
 
10.2%
_______________________________________________
* The tenants' annualized rental income was not greater than 10% of total consolidated annualized rental income for all portfolio properties as of the period specified.
No other tenant represents more than 10% of total consolidated annualized rental income on a straight-line basis for the periods presented.
Geographic Concentration
The following table lists the states where the Company has concentrations of properties where annual rental income on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of December 31, 2013 and 2012:
 
 
Year Ended December 31,
 
 
2013
 
2012
Texas
 
10.7%
 
*
Illinois
 
*
 
11.2%
_______________________________________________
* The geographical concentration's annualized rental income was not greater than 10% of total consolidated annualized rental income for all portfolio properties as of the period specified.

F-27
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Note 5 — CapLease Acquisition
On November 5, 2013 (the "CapLease Acquisition Date"), the Company completed its acquisition of CapLease, a real estate investment trust that primarily owned and managed a diversified portfolio of single tenant commercial real estate properties subject to long-term leases, the majority of which were net leases, to high credit quality tenants, by acquiring 100% of the outstanding common shares and voting interests of CapLease. The acquisition was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations. The Company's consolidated financial statements include the results of operations of CapLease subsequent to the CapLease Acquisition Date.
The purchase price includes a cash payment of $920.7 million, which was funded by the Company through additional borrowings under its revolving credit facility and the credit facility assumed from CapLease, see Note 11 — Other Debt and Note 12 — Credit Facilities.
The purchase price allocation for the CapLease Merger is considered preliminary, and additional adjustments may be recorded during the measurement period in accordance with U.S. GAAP. The purchase price allocation will be finalized as the Company receives additional information relevant to the acquisition, including a final valuation of the assets purchased and liabilities assumed.
The preliminary purchase price for the acquisition was allocated to assets acquired and liabilities assumed based on their estimated fair value. The following table presents the allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the CapLease Acquisition Date (in thousands):
Fair value of consideration given
 
$
920,697

 
 
 
Assets purchased, at fair value:
 
 
Land
 
$
233,065

Buildings, fixtures and improvements
 
1,588,334

Land and construction in process
 
12,352

Acquired intangible lease assets
 
190,862

Total real estate investments
 
2,024,613

Cash and cash equivalents
 
41,799

Investment securities
 
60,730

Loans held for investment
 
26,457

Restricted cash
 
29,159

Prepaid expenses and other assets
 
21,564

Deferred costs
 
325

Total identifiable assets purchased
 
2,204,647

Liabilities assumed, at fair value:
 
 
Mortgage notes payable
 
1,037,510

Secured credit facility
 
121,000

Other debt
 
114,208

Below-market leases
 
57,058

Derivative liabilities
 
158

Accounts payable and accrued expenses
 
47,001

Deferred rent and other liabilities
 
8,867

Total liabilities assumed
 
1,385,802

Non-controlling interest retained by third party
 
567

Net identifiable assets acquired by Company
 
818,278

Goodwill
 
$
102,419

 
 
 

F-28
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Management is in the process of further evaluating the purchase price accounting. The fair value of real estate investments and below-market leases have been estimated by the Company with the assistance of third-party valuation firms. Based on analyses received to date, the estimated fair value of these assets and liabilities total $2.0 billion and $57.1 million, respectively. The recorded values represent the estimated fair values related to such assets and liabilities. Upon completion of the analyses, including a review of the appraisals and assessment of current market rates, changes to the estimated fair values may result.
The fair value of the noncontrolling interest has been estimated based on the fair value of the percentage ownership of The Woodlands, Texas development activity not held by the Company. Refer to Note 4 — Real Estate Investments.
The fair value of the remaining CapLease assets and liabilities have been calculated in accordance with the Company's policy on purchase price allocation, as disclosed in Note 3 — Summary of Significant Accounting Policies.
The $102.4 million of goodwill is expected to be assigned to the real estate segment upon completion of the external valuation. The goodwill recognized is attributed to the enhancement of the Company's year-round rental revenue stream, expected synergies, and the assembled work force at CapLease.
The amounts of revenue and net loss of CapLease included in the Company's consolidated statements of operations and comprehensive loss from the CapLease Acquisition Date to the period ended December 31, 2013 was $28.5 million and $5.8 million, respectively.
The pro forma consolidated statement of operation as if CapLease had been included in the consolidated results of the Company for the entire years ended December 31, 2013 and 2012 have been reflected in Note 4 — Real Estate Investments.
Note 6 — Investment Securities, at Fair Value
Investment securities are considered available-for-sale and, therefore, increases or decreases in the fair value of these investments are recorded in accumulated other comprehensive income (loss) as a component of equity on the consolidated balance sheets unless the securities are considered to be other than temporarily impaired at which time the losses are reclassified to expense.
The following table details the unrealized gains and losses on investment securities as of December 31, 2013 and 2012 (amounts in thousands):
As of December 31, 2013
 
Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
Investments in real estate fund
 
$
1,589

 
$
—

 
$
(105
)
 
$
1,484

CMBS
 
60,452

 
498

 
(367
)
 
60,583

 
 
$
62,041

 
$
498

 
$
(472
)
 
$
62,067

 
 
 
 
 
 
 
 
 
As of December 31, 2012
 
 
 
 
 
 
 
 
Preferred securities
 
$
41,747

 
$
223

 
$
(316
)
 
$
41,654

Investment in Real Estate Fund
On June 4, 2013, the Company invested $10.0 million in a real estate fund that is sponsored by an affiliate of the Former Manager of the Company and which invests primarily in equity securities of other publicly traded REITs. During the year-ended December 31, 2013, the Company reinvested distributions totaling $0.1 million into the real estate fund. During the fourth quarter of 2013, the Company sold investments with an original cost of $8.5 million for total proceeds of $8.1 million. The realized loss of $0.4 million has been recorded to losses on investments in affiliates within the consolidated statements of operations and comprehensive loss. Refer to Note 18 — Related Party Transactions and Arrangements.
Commercial Mortgage-Backed Securities ("CMBS")
In connection with the CapLease Merger, the Company acquired 10 commercial mortgage-backed securities, with a fair value of $60.7 million. At December 31, 2013, the commercial mortgage-backed securities had a carrying value of $60.6 million and carried interest rates ranging from 5.88% to 8.95%. The Company had no commercial mortgage-backed securities as of December 31, 2012.

F-29
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

As of December 31, 2013, the fair value of four commercial mortgage-backed securities was below its carrying value. The Company evaluated each of its securities for other-than-temporary impairment at December 31, 2013, and determined that no other-than-temporary impairment charges on its securities were appropriate. The Company believes that none of the unrealized losses on investment securities are other-than-temporary because management expects the Company will receive all contractual principal and interest related to these investments. In addition, the Company did not have the intent to sell the securities or believe it would be required to sell them as of December 31, 2013.
Redeemable Preferred Stock, Senior Notes and Common Stock
At December 31, 2012, the Company had investments in redeemable preferred stock, accounted for as debt securities, with a fair value of $41.7 million. These investment securities were sold during the year ended December 31, 2013, resulting in a gain on sale of investments of $0.5 million.
During 2013, the Company acquired additional investments in redeemable preferred stock, as well as investments in senior notes and common stock, with an aggregate cost basis of $69.5 million. The Company sold all of these investment securities during 2013 for $67.2 million, resulting in a loss on sale of $2.3 million. As of December 31, 2013, the Company had no remaining investments in redeemable preferred stock, senior notes or common stock.
Note 7 — Prepaid Expenses and Other Assets
Prepaid expenses and other assets consisted of the following as of December 31, 2013 and 2012 (amounts in thousands):
 
 
Year Ended December 31,
 
 
2013
 
2012
Restricted escrow deposits
 
$
101,814

 
$
138

Accounts receivable
 
14,595

 
2,471

Straight line rent receivable
 
19,009

 
3,738

Prepaid expenses
 
43,799

 
856

Other assets
 
8,713

 
4,781

 
 
$
187,930

 
$
11,984

Note 8 — Loans Held for Investment
Loans Held for Investment
In connection with the CapLease Merger, the Company acquired 12 loans held for investment, which consist predominantly of mortgage loans on properties subject to leases to investment grade tenants, with a fair value of $26.5 million at the CapLease Merger Date. At December 31, 2013, the loans held for investment had a carrying value of $26.3 million and carried interest rates ranging from 5.28% to 7.24%. The fair value adjustment is being amortized to interest expense in the consolidated statements of operations and comprehensive loss over the life of the Secured Term. The Company had no loans held for investment as of December 31, 2012.
The Company's loan portfolio is comprised primarily of fully amortizing or nearly fully amortizing first mortgage loans on commercial real estate leased to a single tenant. Payments of debt service on the Company's loans is, in substantially all cases, funded directly by rent payments paid into a lockbox account by the underlying tenant. Therefore, the Company's monitoring of the credit quality of its loans held for investment is focused primarily on an analysis of the tenant, including review of tenant credit ratings (including changes in ratings) and other measures of tenant credit quality, trends in the tenant's industry and general economic conditions, and an analysis of measures of collateral coverage, such as an estimate of the loan's loan-to-value ("LTV") ratio (principal amount outstanding divided by estimated value of the property) and its remaining term until maturity. As of December 31, 2013, the Company did not record a reserve for loan loss.
Note 9 — 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. The guidance defines three levels of inputs that may be used to measure fair value:

F-30
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

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 derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31, 2013, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of the Company's derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. As of December 31, 2013, the Company's interest rate cap derivative measured at fair value on a recurring basis was zero and was classified in Level 2 of the fair value hierarchy.
The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2013 and 2012, aggregated by the level in the fair value hierarchy within which those instruments fall (amounts in thousands):
 
 
Quoted Prices
in Active
Markets
Level 1
 
Significant Other
Observable
Inputs
Level 2
 
Significant
Unobservable
Inputs
Level 3
 
Total
December 31, 2013
 
 
 
 
 
 
 
 
Investments in real estate fund
 
$
—

 
$
1,484

 
$
—

 
$
1,484

CMBS
 
—

 
—

 
60,583

 
60,583

Interest rate swap assets
 
—

 
9,189

 
—

 
9,189

Interest rate swap liabilities
 
—

 
(1,719
)
 
—

 
(1,719
)
Series D Preferred Stock embedded derivative
 
—

 
—

 
(16,736
)
 
(16,736
)
Total
 
$
—

 
$
8,954

 
$
43,847

 
$
52,801

 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
Investment securities
 
$
41,654

 
$
—

 
$
—

 
$
41,654

Interest rate swaps
 
—

 
(3,830
)
 
—

 
(3,830
)
Total
 
$
41,654

 
$
(3,830
)
 
$
—

 
$
37,824

Investment in real estate fund — The fair value of the Company's investment in real estate fund is based on published pricing.
Commercial mortgage-backed securities — The fair values of the Company's CMBS are valued using broker quotations, collateral values, subordination levels, and liquidity of the individual securities.

F-31
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Derivatives — 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.
Series D Preferred Stock embedded derivative — The valuation of this derivative instrument is determined using a binomial option pricing model. Key inputs in the model include the expected term, risk-free interest rate, volatility, and dividend yield.
The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, due to affiliates and accounts payable approximate their carrying value on the accompanying consolidated balance sheets due to their short-term nature and are classified as Level 1 under the fair value hierarchy.
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. There were no transfers between Level 1 and Level 2 or Level 3 of the fair value hierarchy during the year ended December 31, 2013.
The following is a reconciliation of the beginning and ending balance for the changes in instruments with Level 3 inputs in the fair value hierarchy for the year ended December 31, 2013 (amounts in thousands):
 
 
CMBS
 
Series D Preferred Stock Embedded Derivative
 
Total
Beginning balance
 
$
—

 
$
—

 
$
—

Fair value at purchase/issuance
 
60,730

 
(18,692
)
 
42,038

Sales of CMBS
 
(278
)
 
—

 
(278
)
Fair value adjustment(1)
 
131

 
1,956

 
2,087

Ending balance
 
$
60,583

 
$
(16,736
)
 
$
43,847

(1) The change in fair value in the CMBS and Series D Preferred Stock embedded derivative is recorded in unrealized gain (loss) on investment securities, net and loss on derivative instruments, net, respectively, on the consolidated statement of operations and comprehensive loss.
The fair values of the Company's financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (amounts in thousands):
 
 
 
 
Carrying Amount at
 
Fair Value at
 
Carrying Amount at
 
Fair Value at
 
 
Level
 
December 31, 2013
 
December 31, 2013
 
December 31, 2012
 
December 31, 2012
Assets:
 
 
 
 
 
 
 
 
 
 
Loans held for investment
 
3
 
$
26,279

 
$
26,435

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Convertible debt
 
3
 
$
972,490

 
$
977,373

 
$
—

 
$
—

Mortgage notes payable
 
3
 
1,301,114

 
1,305,016

 
265,118

 
271,056

Senior secured revolving credit facility
 
3
 
—

 
—

 
124,604

 
124,604

Senior corporate credit facilities
 
3
 
1,819,800

 
1,819,800

 
—

 
—

Secured credit facility
 
3
 
150,000

 
150,000

 
—

 
—

Trust preferred notes
 
3
 
26,548

 
23,345

 
—

 
—

Secured term loan
 
3
 
58,979

 
59,049

 
—

 
—

Other debt
 
3
 
19,277

 
19,350

 
—

 
—

Total liabilities
 
 
 
$
4,348,208

 
$
4,353,933

 
$
389,722

 
$
395,660


F-32
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Loans held for investment — The fair value of the Company's fixed-rate loan portfolio is estimated with a discounted cash flow analysis, utilizing scheduled cash flows and discount rates estimated by management to approximate those that a willing buyer and seller might use.
Credit facilities — Management believes that the stated interest rates (which float based on short-term interest rates) approximates market rates. As such, the fair values of these obligations is estimated to be equal to the outstanding principal amounts.
Convertible debt, mortgage notes payable and secured term loan — The fair value of mortgages payable on real estate investments and the secured term loan is estimated using a discounted cash flow analysis, based on management's estimates of market interest rates. For mortgages where the Company has an early prepayment right, management also considers the prepayment amount to evaluate the fair value.
Trust preferred notes — The fair value of the Company's other long-term debt is estimated using a discounted cash flow analysis, based on management's estimates of market interest rates.
Note 10 — Mortgage Notes Payable
The Company's mortgage notes payable consist of the following as of December 31, 2013 and 2012 (dollar amounts in thousands):
 
 
Encumbered Properties
 
Outstanding Loan Amount
 
Weighted-Average
Effective Interest Rate (1)
 
Weighted-Average Maturity (2)
December 31, 2013
 
177

 
$
1,258,661

 
3.42
%
 
3.41
December 31, 2012
 
164

 
$
265,118

 
4.28
%
 
5.51
_______________________________________________
(1)
Mortgage notes payable have fixed rates or are fixed by way of interest rate swap arrangements. Effective interest rates range from 1.83% to 6.28% at December 31, 2013 and 3.32% to 6.13% at December 31, 2012.
(2)
Weighted-average remaining years until maturity as of December 31, 2013 and 2012, respectively.
In conjunction with the CapLease Merger, aggregate net premiums totaling $45.2 million were recorded upon assumption of the mortgages for above-market interest rates. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective mortgages using a method that approximates the effective-interest method. As of December 31, 2013, there was $42.5 million in unamortized net premiums included in mortgage notes payable, net on the consolidated balance sheets.
The following table summarizes the scheduled aggregate principal repayments subsequent to December 31, 2013 (amounts in thousands):
 
 
Principal Repayment
2014
 
$
86,933

2015
 
381,574

2016
 
295,627

2017
 
257,658

2018
 
36,210

Thereafter
 
200,659

 
 
$
1,258,661

The Company's mortgage loan agreements generally require restrictions on corporate guarantees and the maintenance of financial covenants including maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios). As of December 31, 2013, the Company was in compliance with the debt covenants under the mortgage loan agreements.

F-33
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Note 11 — Other Debt
Convertible Obligation to Series C Convertible Preferred Stockholders
On June 7, 2013, the Company issued 28.4 million shares of Series C Stock through a private placement for gross proceeds of $445.0 million. Due to an unconditional obligation to either redeem or convert the Series C Stock into a variable number of shares of common stock that is predominantly based on a fixed monetary amount, the preferred securities were classified as an obligation under U.S. GAAP and were presented in the consolidated balance sheets as a liability prior to their conversion on November 8, 2013. On November 8, 2013, the Company converted all outstanding Series C Stock into common shares of the Company. Pursuant to the Series C Articles Supplementary, the number of common shares that could be issued upon conversion of Series C Stock was limited by the exchange cap. Therefore, the Company converted 1.1 million shares of Series C Stock into 1.4 million common shares of the Company. With respect to the 27.3 million shares of Series C Stock for which Common Shares could not be issued upon conversion due to the exchange cap, the Company paid holders of Series C Stock an aggregate cash amount equal to approximately $441.4 million in exchange for such Series C Stock. Based on the Company's share price on the conversion date, the total settlement value was $458.8 million. Settlement of the Series C Stock resulted in a loss of $13.8 million, which is recorded as interest expense in the consolidated statements of operations and comprehensive loss.
Convertible Senior Note Offering
On July 29, 2013, the Company issued $300.0 million of the 2018 Notes and, pursuant to an over-allotment exercise by the underwriters of such 2018 Notes offering, issued an additional $10.0 million of its 2018 Notes on August 1, 2013 (collectively, the "Original 2018 Notes"). On December 10, 2013, the Company issued an additional $287.5 million through a reopening of the 2018 Notes indenture agreement (the "Reopened 2018 Notes," together with the Original 2018 Notes, the "2018 Notes"). The 2018 Notes mature on August 1, 2018. The fair value of the Original 2018 Notes and Reopened 2018 Notes was determined at issuance to be $299.6 million and $282.1 million, respectively, resulting in a debt discount of $10.4 million and $5.4 million, respectively, with an offset recorded to additional paid-in capital representing the equity component of the notes for the conversion options. The discount is being amortized to interest expense over the expected lives of the 2018 Notes. As of December 31, 2013, the carrying value of the Original 2018 Notes and Reopened 2018 Notes was $300.5 million and $282.2 million, respectively. The holders may elect to convert the 2018 Notes into cash, common stock of the Company or a combination thereof, at the Company's option, in limited circumstances prior to February 1, 2018 and may convert the 2018 Notes at any time into such consideration on or after February 1, 2018. The initial conversion rate is 59.805 shares of the Company's common stock per $1,000 principal amount of 2018 Notes.
On December 10, 2013, the Company issued $402.5 million of 3.75% Convertible Senior Notes (the "2020 Notes"). The 2020 Notes mature on December 15, 2020. The fair value of the 2020 Notes was determined at issuance to be $389.7 million, resulting in a debt discount of $12.8 million with an offset recorded to additional paid-in capital representing the equity component of the notes for the conversion options. The discount is being amortized to interest expense over the expected life of the 2020 Notes. As of December 31, 2013, the carrying value of the 2020 Notes was $389.8 million. The holders may elect to convert the 2020 Notes into cash, common stock of the Company or a combination thereof, at the Company's option, in limited circumstances prior to June 15, 2020 and may convert the 2020 Notes at any time into such consideration on or after June 15, 2020. The initial conversion rate is 66.0262 shares of ARCP's common stock per $1,000 principal amount of 2020 Notes.
In connection with the 2018 Notes and 2020 Notes, the remaining unamortized discount totaled $27.5 million.
Trust Preferred Notes
As part of the CapLease Merger, the Company assumed $30.9 million in aggregate principal amount of fixed/floating rate preferred notes with a fair value of $26.5 million at the CapLease Merger Date. The trust preferred securities represent an unsecured subordinated recourse debt obligation of the Company and require quarterly interest payments calculated at a fixed interest rate equal to 7.68% per annum through January 30, 2016, and subsequently at a variable interest rate equal to LIBOR plus 2.60% per annum. The notes must be redeemed on January 30, 2036, and may be redeemed, in whole or in part, at par, at the Company's option, at any time. The discount recorded on the notes is being amortized to interest expense on the consolidated statements of operations and comprehensive loss over the life of the preferred notes. As of December 31, 2013, the carrying value of the preferred securities was $26.5 million.

F-34
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Secured Term Loan
As part of the CapLease Merger, the Company assumed a secured term loan with KBC Bank, N.V. with a principal balance of $59.8 million and a fair value of $60.7 million at the CapLease Merger Date. The interest coupon on the loan is fixed at 5.81% annually until the loan matures in January 2018. The loan is non-recourse to the Company, subject to limited non-recourse exceptions. During the period between the CapLease Acquisition Date and December 31, 2013, the Company made principal payments of $1.7 million. The premium is being amortized to interest expense on the consolidated statements of operations and comprehensive loss over the life of the secured term loan. As of December 31, 2013, the carrying value of the secured term loan was $58.2 million.
Amounts related to the secured term loan as of December 31, 2013 were as follows (amounts in thousands):
 
 
Borrowings
 
Collateral Carrying Value
Loans held for investment
 
$
14,065

 
$
22,496

Intercompany mortgage loans on CapLease properties
 
9,195

 
21,114

Commercial mortgage-backed securities
 
34,915

 
46,054

 
 
$
58,175

 
$
89,664

Other Debt
As part of the CapLease Merger, the Company assumed $19.2 million of senior notes (the "Senior Notes") that bear interest at an annual interest rate of 7.50%, payable semi-annually on April 1 and October 1, with a fair value of $19.3 million at the CapLease Merger Date. The Senior Notes mature on October 1, 2027. The Company has the right to redeem the Senior Notes in whole or in part for cash at any time or from time to time at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus any accrued and unpaid interest. Holders of the Senior Notes may require the Company to repurchase their Senior Notes, in whole or in part, on October 1, 2017 and October 1, 2022, for a cash price equal to 100% of the principal amount of the Senior Notes to be repurchased, plus any accrued and unpaid interest. The discount is being amortized to interest expense on the consolidated statements of operations and comprehensive loss over the life of the Senior Notes. As of December 31, 2013, the carrying value of the Senior Notes was $19.3 million.
In conjunction with the CapLease Merger, aggregate net discounts totaling $3.5 million were recorded upon assumption of the trust preferred notes, secured term loan and senior notes. As of December 31, 2013, unamortized net discounts were $3.5 million in unamortized net discounts included in other debt on the consolidated balance sheets.
Future Minimum Repayments
The following table summarizes the scheduled aggregate principal repayments of our convertible debt, trust preferred notes, secured term loan and other debt subsequent to December 31, 2013 (amounts in thousands):
 
 
Principal Repayment
2014
 
$
12,851

2015
 
11,862

2016
 
12,516

2017
 
26,890

2018
 
610,767

Thereafter
 
433,430

 
 
$
1,108,316


F-35
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Barclay's Facility
As of December 31, 2013, the Company had available commitments from Barclays Bank PLC, and other committed parties, for up to $2.1 billion in senior secured term loans (the "Barclays Facility") in order to fund cash amounts payable in connection with the Cole Merger, which were subject to certain conditions, including the absence of a material adverse effect in respect of Cole, the negotiation of definitive documentation and pro forma compliance with financial covenants. Any other long-term debt obtained by the Company would have reduced the commitments under the Barclays Facility. The Barclays Facility contained an accordion feature to allow the Company, under certain circumstances, to increase commitments thereunder by up to $350.0 million.
The Company could have elected to use the Barclays Facility to fund a portion of the consideration to be paid pursuant to the Cole Merger, to refinance existing indebtedness of Cole and to pay related fees and expenses. The commitments received in the Barclays Facility were schedule to terminate upon the occurrence of certain customary events, and in any event on April 22, 2014, which date may be extended by an additional three months under certain circumstances. The Barclays Facility was terminated upon the issuance of the senior unsecured notes in February 2014, as discussed below.
Bond Offering
On February 6, 2014, the OP issued, in a private offering, $2.55 billion aggregate principal amount of senior unsecured notes consisting of $1.3 billion aggregate principal amount of 2.00% senior notes due 2017 (the "2017 Notes", $750.0 million aggregate principal amount of 3.00% senior notes due 2019 (the "2019 Notes") and $500.0 million aggregate principal amount of 4.60% senior notes due 2024 (the "2024 Notes", and, together with the 2017 Notes and 2019 Notes, the "Notes"). The Notes are guaranteed by the Company. The OP may redeem all or a part of any series of the Notes at any time at its option at the redemption prices set forth in the indenture governing the Notes, plus accrued and unpaid interest on the principal amount of the Notes of such series being redeemed to, but excluding, the applicable redemption date. With respect to the 2019 Notes and the 2024 Notes, if such Notes are redeemed on or after January 6, 2019, with respect to the 2019 Notes, or November 6, 2023, with respect to the 2024 Notes, the redemption price will equal 100% of the principal amount of the Notes of the applicable series to be redeemed, plus accrued and unpaid interest on the amount being redeemed to, but excluding, the applicable redemption date.
Note 12 — Credit Facilities
Senior Corporate Credit Facility
The Company and the OP are parties to a credit facility with Wells Fargo, National Association (the "Credit Facility"), as administrative agent and other lenders party thereto.
At December 31, 2013, the Credit Facility had commitments of $2.4 billion. The Credit Facility has an accordion feature, which, if exercised in full, would allow the Company to increase borrowings under the Credit Facility to $3.0 billion, subject to additional lender commitments, borrowing base availability and other conditions.
At December 31, 2013, the Credit Facility contained a $940.0 million term loan facility and a $1.5 billion revolving credit facility, of which $940.0 million and $119.8 million was outstanding, respectively. In November 2013, the Credit Facility was amended and certain modifications were made to the terms of the agreement. Loans under the Credit Facility are priced at the applicable rate (at the Company's election, either a floating interest rate based on one month LIBOR, determined on a daily basis) plus 2.25% to 3.00%, or a prime-based interest rate, based upon the Company's current leverage. From the amendment date until the first completed fiscal quarter, the applicable LIBOR rate is increased by 3.00%. To the extent that the Company receives an investment grade credit rating as determined by a major credit rating agency, at the Company's election, advances under the revolving credit facility will be priced at their applicable rate plus 0.90% to 1.75% and term loans will be priced at a floating interest rate of LIBOR plus 1.15% to 2.00%, based upon the Company's then current investment grade credit rating. The Company may also make fixed rate borrowings under the Credit Facility. At December 31, 2013, the Company had undrawn commitments of $1.4 billion under the Credit Facility.
The Credit Facility provides for monthly interest payments. In event of a default, each lender has the right to terminate its obligations under the Credit Facility, and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Company has guaranteed the obligations under the Credit Facility. The revolving credit facility will terminate on February 14, 2017, unless extended for an additional year pursuant to the terms of the agreement. The Company may prepay borrowings under the Credit Facility and the Company may incur an unused fee of 0.15% to 0.25% per annum on the unused amount depending on the unused balance as a percentage of the total facility and the type of funding. As of December 31, 2013, the Credit Facility also required the Company to maintain certain property available for collateral as a condition to funding.

F-36
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

As of December 31, 2013, the outstanding balance on the Credit Facility was $1.1 billion, of which $544.8 million bore interest at a floating rate of 3.17%. $515.0 million outstanding on the Credit Facility is fixed through the use of derivative instruments used to hedge interest rate volatility. Including the spread, which can vary based on the Company's leverage, interest on this portion was 4.02% at December 31, 2013. At December 31, 2013, there was up to $1.9 billion available to the Company for future borrowings, subject to additional lender commitments and borrowing availability.
The Credit Facility requires restrictions on corporate guarantees as well as the maintenance of financial covenants including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) and the maintenance of a minimum net worth. At December 31, 2013, the Company was in compliance with the debt covenants under the Credit Facility.
ARCT IV Senior Secured Credit Facility
On June 18, 2013, the Company obtained a credit agreement (the "Credit Agreement") with Regions Bank, JPMorgan Chase Bank, N.A., Bank of America, N.A., Wells Fargo Bank, National Association and RBS Citizens, N.A (collectively, the "Lenders") relating to a $750.0 million senior secured credit facility (the "Senior Secured Credit Facility").
Initially, the Senior Secured Credit Facility contained a $300.0 million term loan facility and a $450.0 million revolving credit facility. The Senior Secured Credit Facility contained an "accordion" feature to allow the Company, under certain circumstances, to increase the aggregate commitments under the Senior Secured Credit Facility to up to $1.5 billion. On October 16, 2013, the Company entered into agreements that amended the Credit Agreement, increasing the maximum principal amount under the revolving credit facility to $500.0 million and the aggregate commitment under the Senior Secured Credit Facility to $800.0 million.
As of December 31, 2013, the Company had $760.0 million outstanding under the Credit Agreement. The effective annualized interest rate on the Credit Agreement was 1.71% as of December 31, 2013. The Company had $40.0 million of unused borrowing capacity under the Credit Agreement as of December 31, 2013.
The Senior Secured Credit Facility required 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 December 31, 2013, the Company was in compliance with the financial covenants under the Credit Agreement.
In connection with the ARCT IV Merger, the Company notified the Administrative Agent in December 2013 and on January 3, 2014, prepaid all of its loans pursuant to, and terminated all commitments available under, the Credit Agreement.
Secured Credit Facility
As part of the CapLease Merger, the Company assumed a secured credit facility with Wells Fargo, National Association (the "Secured Credit Facility"), which had commitments of up to $150.0 million at December 31, 2013. The Secured Credit Facility was fully drawn with $150.0 million outstanding at December 31, 2013.
The borrowings under the Secured Credit Facility bear interest at an annual rate of one-month LIBOR or LIBOR based on an interest period of one, three or six months, at the Company's election, plus an applicable margin of 2.75%, payable quarterly in arrears. The Secured Credit Facility matures on December 31, 2014 and may be prepaid, in whole or in part, without premium or penalty, at the Company's option, at any time.
The obligations under the Secured Credit Facility are secured by mortgages on certain real property assets acquired from CapLease comprising the borrowing base. The Secured Credit Facility includes affirmative and negative covenants and financial performance covenants. At December 31, 2013, the Company was in compliance with the debt covenants under the Secured Credit Facility.
Repayment of Previous Credit Facilities
On February 28, 2013, the Company repaid all of the outstanding borrowings under its previous senior secured revolving credit facility in the amount of $124.6 million, and the credit agreement for such facility was terminated. The average interest rate on the borrowings during the period the balance was outstanding was 3.11%. On February 14, 2013, simultaneous with entering into the Credit Facility, the Company terminated its secured credit facility agreement, which had been unused.

F-37
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Note 13 — Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following as of December 31, 2013 and 2012 (amounts in thousands):
 
 
Year Ended December 31,
 
 
2013
 
2012
Accounts payable
 
$
7,566

 
$
2,691

Accrued interest
 
14,189

 
1,032

Accrued real estate taxes
 
15,510

 
899

Accrued OPP obligation
 
59,400

 
—

Accrued merger costs
 
673,990

 
93,409

Accrued other
 
38,245

 
6,353

 
 
$
808,900

 
$
104,384

Note 14 — 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/or 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. The Company does not anticipate that any of the counterparties will fail to meet their obligations.
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. During 2013, such derivatives were used 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 that 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 $5.8 million will be reclassified from other comprehensive income as an increase to interest expense. During the year ended December 31, 2013, the Company accelerated the reclassification of amounts in other comprehensive income to earnings as a result of the hedged forecasted transactions becoming probable not to occur. The accelerated amounts were a loss of less than $27,000.

F-38
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

As of December 31, 2013, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):
Interest Rate Derivative
 
Number of
Instruments
 
Notional Amount
Interest rate swaps
 
16
 
$
700,390

The table below presents the fair value of the company's derivative financial instruments as well as their classification on the consolidated balance sheets as of the years ended December 31, 2013 and 2012 (dollar amounts in thousands):
 
 
 
 
Year Ended December 31,
Derivatives Designated as Hedging Instruments
 
Balance Sheet Location
 
2013
 
2012
Interest rate products
 
Derivative assets, at fair value
 
$
9,189

 
$
—

Interest rate products
 
Derivative liabilities, at fair value
 
$
(1,719
)
 
$
(3,830
)
The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the years ended December 31, 2013 and 2012, respectively (amounts in thousands):
 
 
Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships
 
2013
 
2012
Amount of gain (loss) recognized in accumulated other comprehensive income on interest rate derivatives (effective portion)
 
$
6,946

 
$
(4,684
)
Amount of loss reclassified from accumulated other comprehensive income into income as interest expense (effective portion)
 
$
(4,535
)
 
$
(941
)
Amount of loss recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)
 
$
(79
)
 
$
(1
)
Derivatives Not Designated as Hedging Instruments
Derivatives not designated as hedges are not speculative and are 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. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings and were approximately $19,000 for the year ended December 31, 2013. The company did not have any derivatives that were not designated as of December 31, 2012.
As of December 31, 2013, the Company had the following outstanding interest rate derivatives that were not designated as hedges of in qualifying hedging relationships:
Interest Rate Derivative
 
Number of Instruments
 
Notional Amount
Interest Rate Cap
 
1

 
$
500,000

The table below presents the fair value of the Company's derivate financial instruments not designated as hedges as well as their classification as liabilities on the consolidated balance sheets as of December 31, 2013 and 2012. There were no derivatives classified as not hedging instruments as assets as of December 31, 2013 and 2012:
 
 
 
 
Year Ended December 31,
Derivatives Not Designated as Hedging Instruments
 
Balance Sheet Location
 
2013
 
2012
Series D Preferred Stock embedded derivative
 
Derivative liabilities, at fair value
 
$
(16,736
)
 
$
—

Refer to Note 16 — Preferred and Common Stock for additional information for the Series D Preferred Stock embedded derivative.

F-39
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Tabular Disclosure Offsetting Derivatives
The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of December 31, 2013 and 2012. 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 consolidated balance sheets.
Offsetting of Derivative Assets and Liabilities
 
 
Gross Amounts of Recognized Assets
 
Gross Amounts of Recognized Liabilities
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Net Amounts of Assets Presented in the Consolidated Balance Sheets
 
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets
 
Financial Instruments
 
Cash Collateral Received
 
Net Amount
December 31, 2013
 
$
9,189

 
$
(18,455
)
 
$
—

 
$
9,189

 
$
(18,455
)
 
$
—

 
$
—

 
$
(9,266
)
December 31, 2012
 
$
—

 
$
(3,830
)
 
$
—

 
$
—

 
$
(3,830
)
 
$
—

 
$
—

 
$
(3,830
)
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 December 31, 2013, the fair value of the interest rate derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to these agreements, was $1.7 million. As of December 31, 2013, 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 $1.7 million at December 31, 2013.
Note 15— Commitments and Contingencies
Contractual Lease Obligations
The following table reflects the minimum base rental cash payments due from the Company over the next five years and thereafter for certain ground and office lease obligations (amounts in thousands):
 
 
Future Minimum
Lease Payments
2014
 
$
4,541

2015
 
4,443

2016
 
4,214

2017
 
4,244

2018
 
3,212

Thereafter
 
63,787

 
 
$
84,441

Litigation
In the ordinary course of business, the Company may become subject to litigation or claims. There are no material legal proceedings pending or known to be contemplated against the Company, except as follows:

F-40
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

ARCT III Litigation Matters
After the announcement of the ARCT III Merger Agreement on December 17, 2012, Randell Quaal filed a putative class action lawsuit filed on January 30, 2013 against the Company, the OP, ARCT III, ARCT III OP, the members of the board of directors of ARCT III and certain subsidiaries of the Company in the Supreme Court of the State of New York. The plaintiff alleges, among other things, that the board of ARCT III breached its fiduciary duties in connection with the transactions contemplated under the ARCT III Merger Agreement. In February 2013, the parties agreed to a memorandum of understanding regarding settlement of all claims asserted on behalf of the alleged class of ARCT III stockholders. In connection with the settlement contemplated by that memorandum of understanding, the class action and all claims asserted therein will be dismissed, subject to court approval. The proposed settlement terms required ARCT III to make certain additional disclosures related to the ARCT III Merger, which were included in a Current Report on Form 8-K filed by ARCT III with the SEC on February 21, 2013. The memorandum of understanding also added that the parties will enter into a stipulation of settlement, which will be subject to customary conditions, including confirmatory discovery and court approval following notice to ARCT III's stockholders. If the parties enter into a stipulation of settlement, a hearing will be scheduled at which the court will consider the fairness, reasonableness and adequacy of the settlement. There can be no assurance that the parties will ultimately enter into a stipulation of settlement, that the court will approve any proposed settlement, or that any eventual settlement will be under the same terms as those contemplated by the memorandum of understanding, therefore any losses that may be incurred to settle this matter are not determinable.
CapLease Litigation Matters
Since the announcement of the CapLease Merger Agreement on May 28, 2013, the following lawsuits have been filed:
On May 28, 2013, Jacquelyn Mizani filed a putative class action lawsuit in the Supreme Court for the State of New York against the Company, the OP, Safari Acquisition LLC, CapLease, CapLease LP, CLF OP General Partner, LLC and the members of the CapLease board of directors (the "Mizani Action"). The complaint alleges, among other things, that the merger agreement at issue was the product of breaches of fiduciary duty by the CapLease directors because the proposed merger transaction (the "CapLease Transaction") purportedly does not provide for full and fair value for the CapLease shareholders, the CapLease Transaction allegedly was not the result of a competitive bidding process, the merger agreement allegedly contains coercive deal protection measures and the merger agreement and the CapLease Transaction purportedly were approved as a result of improper self-dealing by certain defendants who would receive certain alleged employment compensation benefits and continued employment pursuant to the merger agreement. The complaint also alleges that CapLease, the Company, the OP and Safari Acquisition LLC aided and abetted the CapLease directors' alleged breaches of fiduciary duty.
On July 3, 2013, Fred Carach filed a putative class action and derivative lawsuit in the Supreme Court for the State of New York against the Company, the OP, Safari Acquisition LLC, CapLease, CapLease LP, CLF OP General Partner, LLC and the members of the CapLease board of directors (the "Carach Action"). The complaint alleges, among other things, that the merger agreement was the product of breaches of fiduciary duty by the CapLease directors because the merger purportedly does not provide for full and fair value for the CapLease shareholders, the CapLease Transaction allegedly was not the result of a competitive bidding process, the merger agreement allegedly contains coercive deal protection measures and the merger agreement and the CapLease Transaction purportedly were approved as a result of improper self-dealing by certain defendants who would receive certain alleged employment compensation benefits and continued employment pursuant to the merger agreement. The complaint also alleges that with respect to the Registration Statement and draft joint proxy statement issued in connection with the proposed CapLease Transaction on July 2, 2013, that disclosures made therein were insufficient or otherwise improper. The complaint also alleges that CapLease, the Company, the OP and Safari Acquisition LLC aided and abetted the CapLease directors' alleged breaches of fiduciary duty.
On June 25, 2013, Dewey Tarver filed a putative class action and derivative lawsuit in the Circuit Court for Baltimore City against the Company, the OP, Safari Acquisition LLC, CapLease, CapLease LP, CLF OP General Partner, LLC and the members of the CapLease board of directors (the "Tarver Action"). The complaint alleges, among other things, that the merger agreement was the product of breaches of fiduciary duty by the CapLease directors because the CapLease Transaction purportedly does not provide for full and fair value for the CapLease shareholders, the CapLease Transaction allegedly was not the result of a competitive bidding process, the merger agreement allegedly contains coercive deal protection measures and the merger agreement and the CapLease Transaction purportedly were approved as a result of improper self-dealing by certain defendants who would receive certain alleged employment compensation benefits and continued employment pursuant to the merger agreement. The complaint also alleges that CapLease, CapLease LP, CLF OP General Partner, LLC, the Company, the OP and Safari Acquisition, LLC aided and abetted the CapLease directors' alleged breaches of fiduciary duty.

F-41
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Counsel who filed each of these three cases reached an agreement with each other as to who will serve as lead plaintiff and lead plaintiffs' counsel in the cases and where they will be prosecuted. Thus, on August 9, 2013, counsel in the Tarver Action filed a motion for stay in the Baltimore Court, informing the court that they had agreed to join and participate in the prosecution of the Mizani and Carach Actions in the New York Court. The Defendants consented to the stay of the Tarver Action in the Baltimore Court, and on September 5, 2013, Judge Pamela J. White issued an order granting that stay. Consequently, there has been no subsequent activity in the Baltimore Court in the Tarver Action. Also on August 9, 2013, all counsel involved in the Mizani and Carach Actions filed a joint stipulation in the New York Court, reflecting agreement among all parties that the Mizani and Carach Actions should be consolidated (jointly, "the Consolidated Actions") and setting out a schedule for early motion practice in response to the complaints filed (the "Consolidation Stipulation"). Pursuant to the Consolidation Stipulation, an amended complaint was also filed in the New York court on August 9, 2013 and was designated as the operative complaint in the Consolidated Actions ("Operative Complaint"). Pursuant to the Consolidation Stipulation, all Defendants filed a motion to dismiss all claims asserted in the Operative Complaint on September 23, 2013. Plaintiffs' response was due on or before November 7, 2013. On November 7, 2013, Plaintiffs filed a motion seeking leave to file a second amended complaint, which the Defendants have opposed. On March 24, 2014, Plaintiffs' counsel in the Consolidated Actions dismissed those claims without prejudice. Consequently, only the Tarver Action currently remains pending among these cases, although it remains stayed.
On October 8, 2013, John Poling filed a putative class action lawsuit in the Circuit Court for Baltimore City against the Company, the OP, Safari Acquisition LLC, CapLease, CapLease LP, CLF OP General Partner, LLC and the members of the CapLease board of directors (the "Poling Action"). The complaint alleges that the merger agreement breaches the terms of the CapLease' 8.375% Series B Cumulative Redeemable Preferred Stock ("Series B") and the terms of the 7.25% Series C Cumulative Redeemable Preferred Stock ("Series C") and is in violation of the Series B Articles Supplementary and the Series C Articles Supplementary. The Complaint alleges claims for breach of contract and breach of fiduciary duty against the CapLease entities and the CapLease board of directors. The complaint also alleges that the Company, the OP and Safari Acquisition, LLC aided and abetted CapLease and the CapLease directors' alleged breach of contract and breach of fiduciary duty.
On November 13, 2013, all counsel involved in the Poling Action filed a joint stipulation, reflecting agreement among all parties concerning a schedule for early motion practice in response to the complaint filed (the "Scheduling Stipulation"). Pursuant to the Scheduling Stipulation, all Defendants filed a motion to dismiss all claims asserted in the Operative Complaint on December 20, 2013. Plaintiffs' counsel has opposed that the motion to dismiss, and a hearing on the motion tis currently scheduled for May 15, 2014.
Cole Litigation Matters
Three putative class action and/or derivative lawsuits, which were filed earlier this year, assert claims for breach of fiduciary duty, abuse of control, corporate waste, unjust enrichment, aiding and abetting breach of fiduciary duty and other claims relating to the merger between a wholly owned subsidiary of Cole and Cole Holdings Corporation, pursuant to which Cole became a self-managed REIT. On October 22, 2013, the Circuit Court for Baltimore City granted all defendants' motion to dismiss with prejudice the action pending before the court, but the plaintiffs have appealed that dismissal. The other two lawsuits, which also purport to assert shareholder class action claims under the Securities Act of 1933, as amended (the "Securities Act"), are pending in the United States District Court for the District of Arizona. Defendants filed a motion to dismiss both complaints on January 10, 2014. Subsequently, both of those lawsuits have been stayed by the Court pursuant to a joint request made by all parties pending final approval of the consolidated Baltimore Cole Merger Actions described below.

F-42
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

To date, eleven lawsuits have been filed in connection with the Cole Merger. Two of these suits - Wunsch v. Cole, et al ("Wunsch"), No. 13-CV-2186, and Sobon v. Cole, et al ("Sobon") - were filed as putative class actions on October 25, 2013 and November 18, 2013, respectively, in the U.S. District Court for the District of Arizona. Between October 30, 2013 and November 14, 2013, eight other putative stockholder class action or derivative lawsuits were filed in the Circuit Court for Baltimore City, Maryland, captioned as: (i) Operman v. Cole, et al ("Operman"); (ii) Branham v. Cole, et al ("Branham"); (iii) Wilfong v. Cole, et al. ("Wilfong"); (iv) Polage v. Cole, et al. ("Polage"); (v) Corwin v. Cole, et al ("Corwin"); (vi) Green v. Cole, et al ("Green"); (vii) Flynn v. Cole, et al ("Flynn") and (viii) Morgan v. Cole, et al. ("Morgan"). All of these lawsuits name the Company, Cole and Cole's board of directors as defendants; Wunsch, Sobon, Branham, Wilfong, Flynn, Green, Morgan and Polage also name CREInvestments, LLC, a Maryland limited liability company and a wholly-owned subsidiary of the Cole, as a defendant. All of the named plaintiffs claim to be Cole stockholders and purport to represent all holders of Cole's stock. Each complaint generally alleges that the individual defendants breached fiduciary duties owed to plaintiff and the other public stockholders of Cole in connection with the Cole Merger, and that certain entity defendants aided and abetted those breaches. The breach of fiduciary duty claims asserted include claims that the Cole Merger does not provide for full and fair value for the Cole shareholders, that the Cole Merger was the product of an "inadequate sale process," that the Cole Merger Agreement contains coercive deal protection measures and the Cole Merger Agreement and that the Cole Merger were approved as a result of or in a manner which facilitates improper self-dealing by certain defendants. In addition, the Flynn, Corwin, Green, Wilfong, Polage and Branham lawsuits claim that the individual defendants breached their duty of candor to shareholders and the Branham and Polage lawsuits assert claims derivatively against the individual defendants for their alleged breach of fiduciary duties owed to Cole. The Polage lawsuit also asserts derivative claims for waste of corporate assets and unjust enrichment. The Wunsch and Sobon lawsuits also assert claims against Cole and the individual defendants under Section 14(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), based on allegations that the proxy materials omitted to disclose allegedly material information, and a claim against the individual defendants under Section 20(a) of the Exchange Act based on the same allegations. Among other remedies, the complaints seek unspecified money damages, costs and attorneys' fees.
In January 2014, the parties to the eight lawsuits filed in the Circuit Court for Baltimore City, Maryland ("the consolidated Baltimore Cole Merger Actions") entered into a memorandum of understanding regarding settlement of all claims asserted on behalf of the alleged class of Cole stockholders. In connection with the settlement contemplated by that memorandum of understanding, the class action and all claims asserted therein will be dismissed, subject to court approval. The proposed settlement terms required Cole to make certain additional disclosures related to the Cole Merger, which were included in a Current Report on Form 8-K filed by Cole with the SEC on January 14, 2014. The memorandum of understanding also contemplated that the parties will enter into a stipulation of settlement, which will be subject to customary conditions, including confirmatory discovery and court approval following notice to Cole's stockholders. If the parties enter into a stipulation of settlement, a hearing will be scheduled at which the court will consider the fairness, reasonableness and adequacy of the settlement. There can be no assurance that the parties will ultimately enter into a stipulation of settlement, that the court will approve any proposed settlement, or that any eventual settlement will be under the same terms as those contemplated by the memorandum of understanding, therefore any losses that may be incurred to settle this matter are not determinable.
The Sobon lawsuit was voluntarily dismissed on February 3, 2014. The Company believes that the Wunsch lawsuit in connection with the Cole Merger is without merit and that it has substantial meritorious defenses to the claims set forth in the complaint.
On December 27, 2013, Realistic Partners filed a putative class action lawsuit against the Company and the members of its board of directors in the Supreme Court for the State of New York. Cole was later added as a defendant also. The plaintiff alleges, among other things, that the board of the Company breached its fiduciary duties in connection with the transactions contemplated under the Cole Merger Agreement and that Cole aided and abetted those breaches. In January 2014, the parties entered into a memorandum of understanding regarding settlement of all claims asserted on behalf of the alleged class of the Company's stockholders. In connection with the settlement contemplated by that memorandum of understanding, the class action and all claims asserted therein will be dismissed, subject to court approval. The proposed settlement terms required the Company to make certain additional disclosures related to the Cole Merger, which were included in a Current Report on Form 8-K filed by the Company with the SEC on January 17, 2014. The memorandum of understanding also contemplated that the parties will enter into a stipulation of settlement, which will be subject to customary conditions, including confirmatory discovery and court approval following notice to the Company's stockholders. If the parties enter into a stipulation of settlement, a hearing will be scheduled at which the court will consider the fairness, reasonableness and adequacy of the settlement. There can be no assurance that the parties will ultimately enter into a stipulation of settlement, that the court will approve any proposed settlement, or that any eventual settlement will be under the same terms as those contemplated by the memorandum of understanding, therefore any losses that may be incurred to settle this matter are not determinable.

F-43
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The Company maintains directors and officers liability insurance, which the Company believes should provide coverage to the Company and its officers and directors for most or all of any costs, settlements or judgments resulting from the lawsuits.
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, in each case, that it believes will have a material adverse effect on the results of operations.
Note 16 — Preferred and Common Stock
Series A and Series B Convertible Preferred Stock
During the year ended December 31, 2013, the Company converted all 545,454 outstanding shares of its Series A Convertible Preferred Stock and all 283,018 outstanding shares of Series B Convertible Preferred Stock into 829,629 shares of the Company's common stock, which included dividends on the Series A Convertible Preferred Stock.
Series D and Series E Preferred Stock
On September 16, 2013, the Company's board of directors unanimously approved the issuance of Series D Cumulative Convertible Preferred Stock ("Series D Preferred Stock") and the issuance of Series E Cumulative Preferred Stock ("Series E Preferred Stock").
On September 15, 2013, the Company entered into definitive purchase agreements pursuant to which it agreed to issue Series D Preferred Stock, par value $0.01 per share, and common stock, par value $0.01 per share, to certain institutional holders promptly following the close of the Company's merger with CapLease, via a private placement. Pursuant to the definitive purchase agreements, the Company issued approximately 21.7 million shares of Series D Preferred and 15.1 million shares of common stock, for gross proceeds of $288.0 million and $186.0 million, respectively, on November 8, 2013. The Series D Preferred Stock will pay dividends at the rate of 5.81% per annum on its face amount of $13.59 per share (equivalent to $0.79 per share on an annualized basis). The Series D Preferred Stock is redeemable by the Company on August 31, 2014 (the "Redemption Date"). Subsequent to that date, or in certain other circumstances, the Series D Preferred Stock is convertible into common stock or Series E Preferred Stock or redeemable into cash, at the discretion of the Company upon such request for conversion by the holders of Series D Preferred Stock.
In the event of a liquidation, the holders of Series D Preferred Stock are entitled to receive the greater of (a) $13.59 per share plus accrued and unpaid dividends (the "Liquidation Preference") plus a 20% premium and (b) an amount the Preferred Shares holders would have received had they converted into shares of common stock immediately prior to the liquidation event.
If the Company elects to redeem the Series D Preferred Stock on the Redemption Date, the Company shall pay the greater of (a) the product of the number of Series D Preferred Stock and the 102% of the Liquidation Preference and (b) product of the number of common shares that would be issued if the Series D Preferred Stock converted immediately prior to the Redemption Date and 102% of the one-day VWAP.
At any time after the Redemption Date, the holders of Series D Preferred Stock may convert some or all of their outstanding Series D Preferred Stock into shares of common stock. Upon such an election to convert, the Company may elect the following settlement options (1) convert the shares of Series D Preferred Stock into the number of fully paid and non-assessable Common Shares obtained by dividing the aggregate Liquidation Preference of such Series D Preferred Stock by the Conversion Price, as defined below, (2) convert the shares of Series D Preferred Stock into an equal number shares of Series E Preferred Stock, additional shares of Seres E Preferred Stock may be issued under certain circumstances, or (3) an amount equal to the product of the number of shares of Series D Preferred Stock and the Cash Conversion Price, as defined below.
The Conversion Price shall be the lowest of (i) a 2% discount to the VWAP of the common stock for the 10 Trading Days prior to the Conversion Election Date, (ii) a 2% discount to the closing price on the Conversion Election Date, and (iii) $13.59. The Cash Conversion Price shall be the greater of (i) 102% of the Liquidation Preference and (ii) the one day VWAP of the Common Shares on the date of the election.

F-44
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The Company has concluded that the conversion option qualifies as a derivative and should be bifurcated from the host instrument. At issuance, the conversion option had a fair value of $18.7 million. As of December 31, 2013, the fair value of the conversion option had a fair value of $16.7 million. The Company recorded the change in fair value of $2.0 million in gain (loss) on derivative instruments in the consolidated statements of operations and comprehensive loss for the year ended December 31, 2013.
As the holders of Series D Preferred Stock are entitled to receive liquidation preferences that other equity holders are not entitled to, the Company determined the Series D Preferred Stock meets the definition of a deemed liquidation event and therefore should be classified as temporary equity under U.S. GAAP. At the date of issuance, the fair value of the Series D Preferred Stock was $269.3 million. As of December 31, 2013, the Company has determined that a liquidation event is not probable; therefore, the Company has concluded that the Series D Preferred Stock is not currently redeemable or likely to become redeemable. As such, the Company has not accreted the initial value of the Series D Preferred Stock.
As of December 31, 2013, there were 21,735,008 authorized and issued shares of Series D Preferred Stock and no authorized and issued shares of Series E Preferred Stock, respectively.
Series F Preferred Stock
On October 6, 2013, in connection with the modification to the ARCT IV Merger, the Company's board of directors unanimously approved the issuance of Series F Preferred Stock. Upon consummation of the ARCT IV Merger on January 3, 2014, 42.2 million shares of Series F Preferred Stock were issued to ARCT IV shareholders and 0.7 million units of Series F OP Units were issued to the ARCT IV OP Unit holders. To comply with the carryover basis of accounting required in relation to an acquisition of an entity under common control, the financial statements reflect the ARCT IV Merger as if it occurred at the beginning of the periods presented. As such, the accompanying consolidated balance sheet depicts that 42.2 million and 7.0 million shares of Series F Preferred Stock were outstanding as of December 31, 2013 and 2012, respectively.
The Series F Preferred Stock will pay cumulative cash dividends at the rate of 6.70% per annum on its liquidation preference of $25.00 per share (equivalent to $1.675 per share on an annual basis). The Series F Preferred Stock will not be redeemable by the Company before the fifth anniversary of the date on which such Series F Preferred Stock is issued (the "Initial Redemption Date"), except under circumstances intended to preserve the Company's status as a real estate investment trust for federal and/or state income tax purposes and except upon the occurrence of a change of control. On and after the Initial Redemption Date, the Company may, at its option, redeem shares of the Series F Preferred Stock, in whole or from time to time in part, at a redemption price of $25.00 per share plus, subject to exceptions, any accrued and unpaid dividends thereon to the date fixed for redemption. The shares of Series F Preferred Stock have no stated maturity, are not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless the Company redeems or otherwise repurchases them or they become convertible and are converted into common stock (or, if applicable, alternative consideration). The Series F Preferred Stock trades on the NASDAQ under the symbol "ARCPP."
Increases in Authorized Common Stock
On July 2, 2013, the Company filed articles of amendment to its charter to increase the number of authorized shares of common stock to 750,000,000 shares. On December 9, 2013, the Company filed articles of amendment to its charter to increase the number of authorized shares of common stock to 1.5 billion shares.
Offerings
On August 1, 2012, the Company filed a $500.0 million universal shelf registration statement and a resale registration statement with the SEC. Each registration statement became effective on August 17, 2012. As of December 31, 2013, the Company had issued 2.1 million shares of common stock under the $500.0 million universal shelf registration statement. No preferred stock, debt or equity-linked security had been issued under this $500.0 million universal shelf registration statement. The resale registration statement, as amended, registers the resale of up to 1,882,248 shares of common stock issued in connection with any future conversion of certain currently outstanding restricted shares, convertible preferred stock or limited partnership interests in the OP.
In January 2013, the Company commenced its "at the market" equity offering program ("ATM") in which it may from time to time offer and sell shares of its common stock having an aggregate offering proceeds of up to $60.0 million. The shares will be issued pursuant to the Company's $500.0 million universal shelf registration statement.
On March 13, 2013, the Company filed a universal automatic shelf registration statement that was automatically declared effective and achieved well-known seasoned issuer ("WKSI") status. The Company intends to maintain both the $500.0 million universal shelf registration statement and the WKSI universal automatic shelf registration statement.

F-45
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The following are the Company's equity offerings of common stock and the gross proceeds of the equity offering for the years ended December 31, 2013, 2012 and 2011 (dollar amounts in millions):
Type of offering
 
Closing Date
 
Number of Shares(1)
 
Gross Proceeds
IPO
 
September 7, 2011
 
5,574,131

 
$
67.4

Follow-on offering
 
November 2, 2011
 
1,497,924

 
15.8

Underwriters' over allotment
 
November 7, 2011
 
74,979

 
0.8

Total - Year end December 31, 2011(2)
 
 
 
7,147,034

 
84.0

 
 
 
 
 
 
 
Follow on offering
 
June 18, 2012
 
3,250,000

 
30.3

Underwriters' over allotment
 
July 9, 2012
 
487,500

 
4.6

Total - Year end December 31, 2012(3)
 
 
 
3,737,500

 
34.9

 
 
 
 
 
 
 
Registered follow-on offering
 
January 29, 2013
 
2,070,000

 
26.7

ATM
 
January 1 - September 30, 2013
 
553,300

 
8.9

Private placement offering
 
June 7, 2013
 
29,411,764

 
455.0

Private placement offering
 
November 11, 2013
 
15,126,498

 
186.0

Total - Year end December 31, 2013(4)
 
 
 
47,161,562

 
$
676.6

_______________________________________________
(1) Excludes 140.7 million shares of common stock that were issued to the stockholders of ARCT III's common stock in conjunction with the ARCT III Merger.
(2) Excludes 9.8 million shares of common stock that were issued by ARCT III for gross proceeds of $102.2 million.
(3) Excludes 155.7 million and 5.4 million shares of common stock that were issued by ARCT III and ARCT IV, respectively, for gross proceeds of $1.6 billion and $255.0 million, respectively.
(4) Excludes 31.0 million shares of common stock that were issued by ARCT IV for gross proceeds of $1.5 billion.

F-46
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Dividends
In October 2011, the Company began paying dividends on the fifteenth day of each month to stockholders of record on the eighth day of such month. Since inception, the board of directors of the Company has authorized the following increases in the Company's dividend.
Dividend increase declaration date
 
Annualized dividend per share
 
Effective date
September 7, 2011
 
$0.875
 
October 9, 2011
February 27, 2012
 
$0.880
 
March 9, 2012
March 16, 2012
 
$0.885
 
June 9, 2012
June 27, 2012
 
$0.890
 
September 9, 2012
September 30, 2012
 
$0.895
 
November 9, 2012
November 29, 2012
 
$0.900
 
February 9, 2013
March 17, 2013
 
$0.910
 
June 8, 2013
May 28, 2013
 
$0.940
 
December 8, 2013*
October 23, 2013
 
$1.000
 
February 10, 2014**
_______________________________________________
* The dividend increase became effective at the close of the CapLease Merger, which was consummated on November 5, 2013.
** The dividend increase was contingent upon, and became effective with, the close of the Cole Merger, which was consummated on February 7, 2014.
The annualized dividend rate at December 31, 2013 was $0.940 per share.
Common Stock Repurchases
On August 20, 2013, the Company's board of directors reauthorized its $250 million share repurchase program which was originally authorized in February 2013. During the year ended December 31, 2013, the Company repurchased approximately 0.6 million shares at an average price of $13.06 per share or $7.5 million in total.
Upon the closing of the ARCT III Merger, on February 28, 2013, $29.2 million shares, or 16.5% of the then outstanding shares of ARCT III's common stock, were paid in cash at $12.00 per share, which is equivalent to 27.7 million shares of the Company's common stock based on the Exchange Ratio. In addition, 148.1 million shares of ARCT III's common stock were converted to shares of the Company's common stock at the Exchange Ratio, resulting in an additional 140.7 million shares of the Company's common stock outstanding after the exchange.
Note 17 — Equity Based Compensation
Equity Plan
The Company has adopted the American Realty Capital Properties, Inc. Equity Plan (the "Equity Plan"), which provides for the grant of stock options, restricted shares of common stock, restricted stock units, dividend equivalent rights and other equity-based awards to the Company's and its affiliates' non-executive directors, officers and other employees and advisors and consultants who are providing services to the Company or its affiliates.
The Company authorized and reserved a total number of shares equal to 10.0% of the total number of issued and outstanding shares of common stock (on a fully diluted basis assuming the redemption of all OP Units for shares of common stock) to be issued at any time under the Equity Plan for equity incentive awards excluding an initial grant of 167,400 shares to its Former Manager in connection with the IPO, all of which were vested as of December 31, 2013.

F-47
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Director Stock Plan
The Company has adopted the American Realty Capital Properties, Inc. Non-Executive Director Stock Plan (the "Director Stock Plan"), which provides for the grant of restricted shares of common stock to each of the Company's independent directors, each of whom is a non-executive director. Awards of restricted stock will vest ratably over a five-year period following the date of grant in increments of 20.0% per annum, subject to the director's continued service on the board of directors, and shall provide for "distribution equivalents" with respect to this restricted stock, whether or not vested, at the same time and in the same amounts as distributions are paid to the stockholders. At December 31, 2013, a total of 99,000 shares of common stock are reserved for issuance under the Director Stock Plan.
The fair value of restricted common stock awards under the Equity Plan and Director Stock Plan is determined on the grant date using the closing stock price on NASDAQ that day. The fair value of restricted common stock awarded to the non-employees under the Equity Plan is remeasured at the end of each quarter based on the current quarter end closing stock price through the final vesting date.
ARCT III Restricted Share Plan
ARCT III had an employee and director incentive restricted share plan (the "ARCT III RSP"), which provided for the automatic grant of 3,000 restricted shares of common stock to each of its independent directors, without any further action by ARCT III's board of directors or its stockholders, on the date of initial election to the board of directors and on the date of each annual stockholder's meeting thereafter. Restricted stock issued to independent directors vested over a five-year period following the date of grant in increments of 20.0% per annum. The ARCT III RSP provided ARCT III with the ability to grant awards of restricted shares to its directors, officers and employees (if ARCT III ever had employees), employees of ARCT III's advisor and its affiliates, employees of entities that provided services to ARCT III, directors of the ARCT III Advisor or of entities that provided services to ARCT III, certain consultants to ARCT III and the ARCT III Advisor and its affiliates or to entities that provided services to ARCT III.
Immediately prior to the effective time of the ARCT III Merger, each then-outstanding share of ARCT III restricted stock fully vested. All shares of ARCT III common stock then-outstanding as a result of the full vesting of shares of ARCT III restricted stock, and the satisfaction of any applicable withholding taxes, had the right to receive a number of shares of the Company's common stock based on the ARCT III Exchange Ratio.
The following tables detail the restricted shares activity within the Equity Plan, Director Stock Plan and ARCT III RSP during the years ended December 31, 2013, 2012 and 2011:
Restricted Share Awards
 
Equity Plan
 
ARCT III RSP & Director Stock Plan
 
 
Number of
Restricted Common Shares
 
Weighted-Average Issue Price
 
Number of
Restricted Common Shares
 
Weighted-Average Issue Price
Awarded, January 1, 2011
 
—

 
$
—

 
—

 
$
—

Granted
 
167,400

 
12.50

 
14,700

 
11.50

Awarded December 31, 2011
 
167,400

 
12.50

 
14,700

 
11.50

Granted
 
93,683

 
10.65

 
23,250

 
10.45

Forfeited
 
(1,174
)
 
10.65

 
(7,650
)
 
11.54

Awarded December 31, 2012
 
259,909

 
11.84

 
30,300

 
10.68

Granted
 
932,527

 
13.82

 
18,000

 
14.58

Forfeited
 
(1,085
)
 
12.85

 
—

 
—

Awarded December 31, 2013
 
1,191,351

 
$
13.39

 
48,300

 
$
12.13


F-48
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Unvested Restricted Shares
 
Equity Plan
 
ARCT III RSP & Director Stock Plan
 
 
Number of
Restricted Common Shares
 
Weighted-Average Issue Price
 
Number of
Restricted Common Shares
 
Weighted-Average Issue Price
Unvested, January 1, 2011
 
—

 
$
—

 
—

 
$
—

Granted
 
167,400

 
12.50

 
14,700

 
11.50

Vested
 
(13,950
)
 
12.50

 
—

 
—

Unvested, December 31, 2011
 
153,450

 
12.50

 
14,700

 
11.50

Granted
 
93,683

 
10.65

 
23,250

 
10.45

Vested
 
(59,556
)
 
12.42

 
(2,370
)
 
11.88

Forfeited
 
(1,174
)
 
10.65

 
(7,650
)
 
11.54

Unvested, December 31, 2012
 
186,403

 
11.62

 
27,930

 
10.58

Granted
 
932,527

 
13.82

 
18,000

 
14.58

Vested
 
(186,403
)
 
11.62

 
(30,930
)
 
11.03

Forfeited
 
(1,085
)
 
12.85

 
—

 
—

Unvested, December 31, 2013
 
931,442

 
$
13.82

 
15,000

 
$
14.45

For the years ended December 31, 2013, 2012 and 2011, compensation expense for restricted shares under the above plans was $2.0 million, $1.2 million and $0.2 million, respectively. For the year ended December 31, 2013, merger and other transaction related costs includes compensation expense of $2.7 million due to the Company's pending Cole Merger; compensation expense of $2.2 million for the accelerated vesting of restricted shares in conjunction with the ARCT III Merger; and compensation expense of $0.7 million from the issuance of 52.5 thousand fully vested shares to certain employees of the Company's Former Manager. In addition, the Company recognized $2.7 million as a distribution to its Former Manager, which is included in consideration to Former Manager for internalization in the accompanying consolidated statements of changes in equity.
ARCT IV Restricted Share Plan
ARCT IV had an employee and director incentive restricted share plan (the "ARCT IV RSP"), which provided for the automatic grant of 1,333 restricted shares of common stock to each of its independent directors without any further action by ARCT IV's board of directors or its stockholders on the date of initial election to the board of directors and on the date of each annual stockholder's meeting thereafter. Restricted stock issued to independent directors vested over a five-year period following the date of grant in increments of 20% per annum. ARCT IV issued 5,333 and 2,667 restricted shares under the ARCT IV RSP during the year ended December 31, 2013 and 2012, respectively. All restricted shares issued under the ARCT IV RSP had an issue price of $22.50. The ARCT IV RSP provided ARCT IV with the ability to grant awards of restricted shares to its directors, officers and employees, employees of the ARCT IV Advisor and its affiliates, employees of entities that provided services to ARCT IV, directors of the ARCT IV Advisor or of entities that provided services to ARCT IV, certain consultants to ARCT IV and the ARCT IV Advisor and its affiliates or to entities that provided services to ARCT IV.
Immediately prior to the effective time of the ARCT IV Merger, each then-outstanding share of ARCT IV restricted stock fully vested. All shares of ARCT IV common stock then-outstanding as a result of the full vesting of shares of ARCT IV restricted stock, and the satisfaction of any applicable withholding taxes, received shares of the Company's common stock based on the ARCT IV Exchange Ratio.
Compensation expense related to ARCT IV RSP restricted shares was $0.2 million, of which $0.1 million was included in merger and other transaction related costs due to the accelerated vesting of the restricted shares, and $6,000 for the year ended December 31, 2013 and 2012, respectively.
Multi-Year Performance Plan
Upon consummation of the ARCT III Merger, the Company entered into the 2013 Advisor Multi-Year Outperformance Agreement (the "OPP") with its Former Manager, whereby its Former Manager was able to potentially earn compensation upon the attainment of stockholder value creation targets.

F-49
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Under the OPP, the Company's Former Manager was granted 8,241,101 long term incentive plan units ("LTIP Units") of the OP, which are earned or forfeited based on the Company's total return to stockholders (including both share price appreciation and common stock distributions) ("Total Return"), for the three-year period consisting of:
•
Absolute Component: 4% of any excess Total Return attained above an absolute hurdle of 7% for each annual measurement period, non-compounded, 14% for the interim measurement period and 21% for the full performance period; and
•
Relative Component: 4% of any excess Total Return attained above the Total Return for the performance period of a peer group comprised of the following companies: EPR Properties; Getty Realty Corporation; Lexington Realty Trust; National Retail Properties, Inc.; and Realty Income Corporation.
The award was funded ("OPP Pool") up to a maximum award opportunity equal to 5% of the Company's equity market capitalization at the ARCT III Merger date of $2.1 billion (the "OPP Cap"). Awards under the OPP are dependent on achieving an annual hurdle that commenced December 11, 2012, an interim (two-year) hurdle and then the aforementioned three-year hurdle ending on December 31, 2015, the final valuation date.
In order to further ensure that the interests of the Company's Former Manager are aligned with its investors, the Relative Component is subject to a ratable sliding scale factor as follows:
•
100% will be earned if the Company attains a median Total Return of at least 6% for each annual measurement period, non-compounded, at least 12% for the interim measurement period and at least 18% for the full performance period;
•
50% will be earned if the Company attains a median Total Return of at least 0% for each measurement period;
•
0% will be earned if the Company attains a median Total Return of less than 0% for each measurement period; and
•
A percentage from 50% to 100% calculated by linear interpolation will be earned if the Company's median Total Return is between 0% and the percentage set for each measurement period.
For each year during the performance period a portion of the OPP Cap equal to a maximum of up to 1.25% of the Company's equity market capitalization of $2.1 billion will be "locked-in" based upon the attainment of the performance hurdles set forth above for each annual measurement period. In addition, a portion of the OPP Cap equal to a maximum of up to 3% of the Company's equity market capitalization will be "locked-in" based upon the attainment of the performance hurdles set forth above for the interim measurement period, which if achieved, will supersede and negate any prior "locked-in" portion based upon annual performance through the first and second valuation dates on December 31, 2013 and 2014, respectively (i.e., a maximum award opportunity equal to a maximum of up to 3% of the Company's equity market capitalization may be "locked-in" through December 31, 2014). Since certain awards under the OPP plan are dependent on the comparison of the Company's current market capitalization to the Company's market capitalization at the inception of plan, the issuance of additional common shares by the Company may result in higher awards.
Following the performance period, the Absolute Component and the Relative Component will be calculated separately and then added together to determine the aggregate award earned under the OPP, which in no event may exceed the OPP Cap. The OPP Pool will be used to determine the number of LTIP Units that vest. Any unvested LTIP Units will be immediately forfeited on December 31, 2015. At December 31, 2013, 100% of the OPP Pool has been allocated.
Pursuant to previous authorization of the Company's board of directors, as a result of the termination of the Management Agreement, all 8,241,101 LTIP Units vested upon the consummation of the Company's transition to self-management on January 8, 2014. However, such LTIP Units are earned as of each respective valuation date according to the terms of the OPP and shall be forfeited if not earned through December 31, 2015.

F-50
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The Company's Former Manager is generally entitled to convert any of the LTIP Units earned on a valuation date into OP Units within 30 days following the date on which the calculations are performed following the applicable valuation date. In addition, the OPP provides for accelerated earning and vesting of LTIP Units and redemption of vested LTIP Units for cash if the Company's Former Manager is terminated or if the Company experiences a change in control. The Company's Former Manager is entitled to receive a tax gross-up in the event that any amounts paid to it under the OPP constitute "parachute payments" as defined in Section 280G of the Code.
During the year ended December 31, 2013, the Company has recorded expenses of $92.3 million for the OPP, of which $32.9 million and $59.4 million is recorded in restricted equity based compensation and merger and other transaction expense on the consolidated statements of operations and comprehensive loss. As of December 31, 2013, 2.3 million LTIP Units were earned and $32.9 million of the expense was locked-in and has been included in non-controlling interest on the consolidated balance sheets. The remaining $59.4 million is included in accounts payable and accrued expenses.
New Multi-Year Outperformance Plan
On October 21, 2013, the Company approved a multi-year outperformance plan (the "New OPP"), to be effective as of the Company's transition to self-management, which occurred on January 8, 2014. Under the New OPP, individual agreements will be entered into between the Company and the participants selected by the Company's board of directors (the "Participants") that set forth the Participant's participation percentage in the New OPP and the number of LTIP Units subject to the award ("OPP Agreements"). Under the OPP Agreements, the Participants will be eligible to earn performance-based bonus awards equal to the Participant's participation percentage of a pool that will be funded up to a maximum award opportunity (the "New OPP Cap") of $222.1 million, which is equal to approximately 5% of the Company's equity market capitalization ("the Initial Market Cap"). Subject to the New OPP Cap, the pool will equal an amount to be determined based on the Company's achievement of total return to stockholders, including both share price appreciation and common stock distributions ("Total Return"), for a three-year performance period (the "Performance Period"); each 12-month period during the Performance Period (each an "Annual Period") and the initial 24-month period of the Performance Period (the "Interim Period"), as follows:
 
 
Performance Period
 
Annual Period
 
Interim Period
Absolute Component: 4% of any excess Total Return attained above an absolute hurdle measured from the beginning of such period:
21%
 
7%
 
14%
Relative Component: 4% of any excess Total Return attained above the median Total Return for the performance period of the Peer Group(1), subject to a ratable sliding scale factor as follows based on achievement of cumulative Total Return measured from the beginning of such period:
 
 
 
 
 
•
100% will be earned if cumulative Total Return achieved is at least:
18%
 
6%
 
12%
•
50% will be earned if a cumulative Total Return achieved is:
—%
 
—%
 
—%
•
0% will be earned if cumulative Total Return achieved is less than:
—%
 
—%
 
—%
•
a percentage from 50% to 100% calculated by linear interpolation will be earned if cumulative Total Return achieved is if between:
0% - 18%
 
0% - 6%
 
0%- 12%
(1) The "Peer Group" is comprised of the following companies: EPR Properties; Getty Realty Corporation; Lexington Realty Trust; National Retail Properties, Inc.; Realty Income Corporation; and Spirit Realty Capital, Inc.
The New OPP provides for early calculation and vesting of the award in the event of a change in control of the Company, prior to the end of the Performance Period. Under the New OPP, treatment of a Participant's award upon a termination of service will be governed by the terms of the Participants' OPP Agreement or service agreement with the Company. In the event a Participant's OPP Agreement or service agreement does not provide for treatment of the award upon the Participant's termination, then the award will be forfeited upon such termination. The Participant's will be entitled to receive a tax gross-up in the event that any amounts paid to the Participant under the OPP constitute "parachute payments" as defined in Section 280G of the Code. The LTIP Units granted under the New OPP represent units of equity ownership in the OP that are structured as a profits interest therein. Subject to the Participant's continued service through each vesting date, 1/3 of any earned LTIP Units will vest on each of the third, fourth and fifth anniversaries of January 8, 2014. The Participant will be entitled to receive distributions on their LTIP Units to the extent provided for in the limited partnership agreement of the OP, as amended from time to time.

F-51
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Note 18 — Related Party Transactions and Arrangements
Ownership by Affiliates
Certain affiliates of the Company have ownership in the Company through ownership of shares of the Company's common stock, shares of unvested restricted common stock and OP Units. As of December 31, 2013 and 2012, 4.37% and 1.35%, respectively, of the total equity units issued by the Company were owned by affiliates.
Fees Paid in Connection with Common Stock Offerings
RCS served as the dealer manager of the ARCT III and ARCT IV IPOs. RCS received fees and compensation in connection with the sale of ARCT III and ARCT IV's common stock in the respective IPOs. RCS received a selling commission of up to 7% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers in each of the IPOs. In addition, RCS received up to 3% of the gross proceeds from the sale of common stock, before reallowance to participating broker-dealers, as a dealer-manager fee in each of the IPOs. RCS was permitted to reallow its dealer-manager fee to such 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. RCS has also received compensation for various other Company equity transactions.
The following table details the results of such activities related to RCS, which are recorded as offering costs on the consolidated statement of changes in equity (amounts in thousands):
 
 
Year Ended December 31,
 
Payable as of December 31,
 
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Total commissions and fees paid to RCS
 
$
147,755

 
$
184,398

 
$
11,434

 
$
—

 
$
455

 
$
92

The Company, ARCT III and ARCT IV reimbursed its Former Manager, the ARCT III Advisor, the ARCT IV Advisor and RCS, as applicable, for services relating to the ARCT III IPO, the ARCT IV IPO and other significant transactions such as the Company's at-the-market equity program. The following table details the results of such activities related to offering and other significant transactions costs reimbursed to the Company's Former Manager, the ARCT III Advisor, the ARCT IV Advisor and RCS (amounts in thousands):
 
 
Year Ended December 31,
 
Payable as of December 31,
 
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Offering expense and other significant transactions reimbursements
 
$
13,564

 
$
27,202

 
$
4,383

 
$
—

 
$
88

 
$
220

Fees Paid in Connection with the Operations of the Company
Each of the Company, ARCT III and ARCT IV paid the Company's Former Manager, the ARCT III Advisor and the ARCT IV Advisor, as applicable, an acquisition fee equal to 1.0% of the contract purchase price, inclusive of assumed indebtedness, of each property the Company, ARCT III or ARCT IV, as applicable, acquired. The acquisition fee was payable in cash at the closing of each acquisition. In conjunction with the ARCT III Merger, it was agreed that these fees would no longer be paid by either the Company or ARCT III. In conjunction with the ARCT IV Merger, it was agreed that these fees would no longer be paid by ARCT IV. Acquisition fees are recorded in Acquisition related costs in the accompanying consolidated statements of operations and comprehensive loss.
Each of the Company, ARCT III and ARCT IV paid the Company's Former Manager, the ARCT III Advisor and the ARCT IV Advisor, as applicable, a financing consideration fee equal to 0.75% of the amount available under any secured mortgage financing or refinancing that the Company, ARCT III or ARCT IV, as applicable, obtained and used for the acquisition of properties that was arranged by the Company's Former Manager, ARCT III Advisor or ARCT IV Advisor, as applicable. The financing coordination fee was payable in cash at the closing of each financing. In conjunction with the ARCT III Merger, it was agreed that these fees would no longer be paid to either the Company or ARCT III. In conjunction with the ARCT IV Merger, it was agreed that these fees would no longer be paid by ARCT IV.

F-52
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Prior to the termination of the amended and restated management agreement, the Company was required to pay its Former Manager a quarterly incentive fee, calculated based on 20% of the excess Company annualized core earnings (as defined in the management agreement with its Former Manager) over the weighted-average number of shares multiplied by the weighted-average price per share of common stock. One half of each quarterly installment of the incentive fee was payable in shares of common stock. The remainder of the incentive fee was payable in cash. No such incentive fees have been incurred or paid to the Company's Former Manager since inception.
Prior to the termination of the amended and restated management agreement the Company paid its Former Manager an annual base management fee equal to 0.50% per annum of the average unadjusted book value of the Company's real estate assets, calculated and payable monthly in advance. The management fee was payable in cash. In conjunction with the ARCT III Merger, the base management fee was reduced to 0.40% per annum for the unadjusted book value of assets over $3.0 billion. The Company's Former Manager waived such portion of its management fee in excess of certain net income thresholds related to the Company's operations during the first three fiscal quarters of 2013. Management fees, if accrued, were recorded in Operating fees to affiliates in the consolidated statements of operations and comprehensive loss.
The Company also pays fees for transfer agent services to an affiliate of the Former Manager, American National Stock Transfer, LLC.
Until July 1, 2012, ARCT III paid the ARCT III Advisor an asset management fee of 0.75% per annum of the cost of its assets (cost includes the purchase price, acquisition expenses, capital expenditures and other customarily capitalized costs, but excludes acquisition fees) plus costs and expenses incurred by the ARCT III Advisor in providing asset management services; provided, however, that the asset management fee was reduced by any amounts payable to ARCT III's property manager as an oversight fee, such that the aggregate of the asset management fee and the oversight fee did not exceed 0.75% per annum of the cost of ARCT III's assets plus costs and expenses incurred by the ARCT III Advisor in providing asset management services. Prior to July 1, 2012, this fee was payable in monthly installments at the discretion of ARCT III's board of directors in cash, common stock or restricted stock grants, or any combination thereof. Asset management fees, if accrued, were recorded in Operating fees to affiliates in the consolidated statements of operations and comprehensive loss.
Effective July 1, 2012, the payment of asset management fees in monthly installments in cash, shares or restricted stock grants, or any combination thereof to the ARCT III Advisor was eliminated. Instead, ARCT III issued (subject to periodic approval by its board of directors) to the ARCT III Advisor performance-based restricted partnership units of the ARCT III OP designated as "ARCT III Class B units," which were intended to be profits interests and to vest, and no longer be subject to forfeiture, at such time as: (x) the value of the ARCT III OP's assets plus all distributions made equal or exceeded the total amount of capital contributed by investors plus a 6.0% cumulative, pre-tax, non-compounded annual return thereon (the "economic hurdle"); and (y) a liquidity event has occurred.
The ARCT III Advisor received distributions on unvested ARCT III Class B units equal to the distribution rate received on ARCT III common stock. Such distributions on issued ARCT III Class B units were included as general and administrative expense in the consolidated statements of operations and comprehensive loss until the performance condition is considered probable to occur. 145,022 ARCT III Class B units were approved by ARCT III's board of directors as of December 31, 2012. During January and February 2013, ARCT III's board of directors approved, and ARCT III issued, 603,599 ARCT III Class B units to the ARCT III Advisor for its asset management services provided. As of December 31, 2012, ARCT III did not consider achievement of the performance condition to be probable as the shareholder vote for the ARCT III Merger, which would allow vesting of these ARCT III Class B Units, was not completed. The performance condition related to these ARCT III Class B units was satisfied upon the completion of the ARCT III Merger and expense of $9.9 million was recorded at that time. The ARCT III Class B units then converted to ARCT III OP Units which converted to 711,190 OP Units after the application of the ARCT III Exchange Ratio. These expenses were recorded in merger and other transaction related in the consolidated statements of operations and comprehensive loss.
In connection with the asset management services provided by the ARCT IV Advisor, ARCT IV issued (subject to periodic approval by the board of directors) to the ARCT IV Advisor performance-based restricted partnership units of the ARCT IV OP designated as "ARCT IV Class B Units," which were intended to be profit interests and to vest, and no longer be subject to forfeiture, at such time as: (x) the value of the ARCT IV OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 6.0% 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; or (3) another liquidity event; and (z) the ARCT IV Advisor was still providing advisory services to ARCT IV.

F-53
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The calculation of the ARCT IV asset management fees was equal to: (i) 0.1875% of the cost of ARCT IV's assets; divided by (ii) the value of one share of ARCT IV common stock as of the last day of such calendar quarter. When approved by the board of directors, the ARCT IV Class B Units were issued to the ARCT IV Advisor quarterly in arrears pursuant to the terms of the ARCT IV OP agreement.
During the year ended December 31, 2013, the board of directors approved the issuance of 492,483 ARCT IV Class B Units to the ARCT IV Advisor in connection with this arrangement. As of December 31, 2013, ARCT IV did not consider achievement of the performance condition to be probable and no expense was recorded at that time. The ARCT IV Advisor received distributions on unvested ARCT IV Class B Units equal to the distribution rate received on the ARCT IV common stock. Such distributions on ARCT IV Class B Units were included in general and administrative expense in the consolidated statements of operations and comprehensive loss until the performance condition was considered probable to occur. The performance condition related to the 498,857 ARCT IV Class B Units, which includes units issued for the period of January 1, 2014 through the ARCT IV Merger Date, was satisfied upon the completion of the ARCT IV Merger. These ARCT IV Class B Units immediately converted into OP Units at the 2.3961 exchange ratio discussed in Note 2 — Mergers and Acquisitions and the Company recorded an expense of $13.9 million based on the fair value of the ARCT IV Class B Units at that time.
ARCT III paid an affiliate of ARC, unless it contracted with a third party, a property management fee of up to 2% of gross revenues from ARCT III's stand-alone single-tenant net leased properties and 4% of gross revenues from its multi-tenant properties, plus, in each case, market-based leasing commissions applicable to the geographic location of the property. ARCT III also reimbursed the affiliate for property level expenses. If ARCT III contracted directly with third parties for such services, it paid them customary market fees and paid the affiliated property manager, an oversight fee of up to 1% of the gross revenues of the property managed. Property management fees are recorded in Operating fees to affiliates in the consolidated statements of operations and comprehensive loss.
Effective March 1, 2013, ARCT IV entered into an agreement with RCS to provide strategic advisory services and investment banking services required in the ordinary course of ARCT IV'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 term of the ARCT IV IPO and included in acquisition and transaction related expense on the consolidated statements of operations and comprehensive loss. RCS and its affiliates also provided transfer agent services, as well as transaction management and other professional services. Those fees are included in general and administrative expenses on the consolidated statement of operations during the period the service was provided.
The Company reimburses certain affiliates for out-of-pocket costs actually incurred by its those affiliates, including without limitation, legal fees and expenses, due diligence fees and expenses, other third party fees and expenses, costs of appraisals, travel expenses, nonrefundable option payments and deposits on properties not acquired, accounting fees and expenses, title insurance premiums and other closing costs, personnel costs and miscellaneous expenses relating to the selection, acquisition and due diligence of properties. The Company's reimbursement obligation is not subject to any dollar limitation. Expenses are typically reimbursed in cash on a monthly basis following the end of each month. Reimbursements are recorded based on the related activity to which the expense relates.
In order to facilitate the smooth transition of property management services following the consummation of the ARCT III Merger, the Company, the OP and ARC agreed that the Property Management and Leasing Agreement will be extended for a 60-day period following the consummation of the ARCT III Merger for which the Company paid ARC $2.3 million. These fees were recorded in merger and transaction related in the consolidated statements of operations and comprehensive loss.
The Company receives financial advisory and strategic services prior to the consummation of certain of its mergers and acquisitions pursuant to an investment banking services agreement, to which the Company and RCS are parties. Under this agreement, during the year ended December 31, 2013, the Company has incurred $17.8 million for the various mergers and transactions that were completed.

F-54
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

The following table details amounts incurred by the Company, ARCT III or ARCT IV and contractually due to ARC, ARCT III Advisor, ARCT IV Merger or the Company's Former Manager and forgiven in connection with the operations related services described above (amounts in thousands):
 
 
Year Ended December 31,
 
Payable as of December 31,
 
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
 
 
Incurred
 
Forgiven
 
Incurred
 
Forgiven
 
Incurred
 
Forgiven
 
 
 
One-time fees:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition fees (1)
 
$
24,088

 
$
—

 
$
28,656

 
$
—

 
$
1,692

 
$
—

 
$
—

 
$
376

 
$
37

Financing fees and related cost reimbursements
 
13,637

 
—

 
3,350

 
—

 
182

 
—

 
—

 
—

 
—

Other expense reimbursements
 
16,230

 
—

 
592

 
—

 
148

 
—

 
—

 
18

 
—

Transaction fees
 
3,455

 
—

 
—

 
—

 
—

 
—

 
3,455

 
—

 
—

On-going fees:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base management fees (2)
 
13,978

 
6,109

 
2,035

 
1,823

 
274

 
274

 
5,654

 
—

 
—

Transfer agent fees
 
1,874

 
—

 
—

 
—

 
—

 
—

 
274

 
—

 
—

Property management and leasing fees (2)
 
799

 
799

 
918

 
918

 
15

 
15

 
—

 
—

 
—

Strategic advisory fees
 
920

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Distributions on ARCT IV Class B Units
 
155

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total operational fees and reimbursements
 
$
75,136

 
$
6,908

 
$
35,551

 
$
2,741

 
$
2,311

 
$
289

 
$
9,383

 
$
394

 
$
37

_______________________________________________
(1) In conjunction with the ARCT III Merger, the payment of acquisition fees was terminated, however for properties that were in ARCP's or ARCT III's pipeline at the ARCT III Merger date, the fees were paid as the Company's Former Manager had sourced and negotiated the purchase price prior to the ARCT III Merger.
(2) The amounts incurred and paid were recognized in merger and other transaction related costs during the year ended December 31, 2013 as they relate to the ARCT III Merger. The amounts incurred during the quarter ended December 31, 2013 and payable as of December 31, 2013 were accrued through January 7, 2014, the date prior to transition to self management.
Under an administrative support agreement between the Company and ARC, ARC was to pay or reimburse the Company for its general administrative expenses, including, without limitation, legal fees, audit fees, board of directors fees, insurance, marketing and investor relation fees, until September 6, 2012, which was one year after the closing of the IPO, to the extent the amount of certain net earnings from operations thresholds, as specified in the agreement, were less than the amount of the distributions declared by the Company during this one-year period. To the extent these amounts were paid by ARC, they would not be subject to reimbursement by the Company. These costs are presented net in the accompanying consolidated statements of operations and comprehensive loss. In addition, the ARCT III Advisor provided expense support to ARCT III from time to time to assist ARCT III with operating cash flow, distributions or other operational purposes.
The following table details general and administrative expenses absorbed by ARC and the ARCT III Advisor and paid to the Company or ARCT III during the years ended December 31, 2013, 2012 and 2011(amounts in thousands):
 
 
Year Ended December 31,
 
Receivable as of December 31,
 
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
General and administrative expenses absorbed
 
$
—

 
$
234

 
$
20

 
$
—

 
$
—

 
$
—


F-55
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Upon consummation of the ARCT III Merger, the Company entered into the OPP with its Former Manager, whereby its Former Manager was able to potentially earn compensation upon the attainment of stockholder value creation targets. Pursuant to previous authorization of the Company's board of directors, as a result of the termination of the Management Agreement, all LTIP Units vested upon the consummation of the Company's transition to self-management on January 8, 2014. On October 21, 2013, the Company approved the New OPP, to be effective as of the Company's transition to self-management. Under the New OPP, individual agreements will be entered into between the Company and the participants selected by the Participants that set forth the Participant's participation percentage in the New OPP and the number of LTIP Units subject to the award. Under the OPP Agreements, the Participants will be eligible to earn performance-based bonus awards equal to the Participant's participation percentage of a pool that will be funded up to a maximum award opportunity. See Note 17 — Equity Based Compensation for a more detailed description of these plans.
Fees Paid in Connection with the ARCT III Merger
ARCT III entered into an agreement with an affiliate, ARC Advisory Services, LLC, to provide legal support services up to the date that ARCT III entered into the ARCT III Merger Agreement and until the ARCT III Merger was consummated for $0.5 million. This amount was fully accrued as of December 31, 2012 and was paid in February 2013 in conjunction with the consummation of the ARCT III Merger.
ARCT III entered into an agreement with an affiliate, ARC Advisory Services, LLC, to provide support services including legal, accounting, marketing, human resources and information technology, among other services, until the earlier of the ARCT III Merger closing date or one year for $2.0 million pursuant to this contract. As of December 31, 2012, $0.3 million was accrued and the remaining $1.7 million was paid in February 2013 in conjunction with the consummation of the ARCT III Merger.
ARCT III entered into an agreement with affiliates RCS and ARC Advisory Services, LLC, to provide financial advisory and information agent services related to the proxy solicitation seeking approval of the ARCT III Merger by ARCT III's stockholders for $0.6 million. Services provided include facilitation of the preparation, distribution and accumulation and tabulation of proxy materials, stockholder, analyst and financial advisor communications and consultation on materials and communications made to the public and regulatory agencies regarding the ARCT III Merger. The Company recorded $0.5 million for the year ended December 31, 2013 in addition to the $0.1 million that was accrued in the prior year and paid the full amount in conjunction with the consummation of the ARCT III Merger.
The Company entered into an Asset Purchase and Sale Agreement with ARC pursuant to which, concurrently with the closing of the ARCT III Merger and in connection with the internalization by the Company of certain property level management and accounting activities, ARC sold to the OP certain furniture, fixtures, equipment and other assets used by ARC in connection with managing the property level business and operations and accounting functions of the Company and the OP, and included at the cost of such assets, for an aggregate price of $5.8 million, which includes the reimbursement of certain costs and expenses incurred by ARC in connection with the ARCT III Merger. Fees paid in connection with the ARCT III Merger were recorded in merger and transaction related in the consolidated statements of operations and comprehensive loss. Additionally, the Company acquired fixed assets with a carryover basis of $1.0 million from the Advisor; the consideration paid to the Advisor in excess of the carryover basis was approximately $3.0 million .
On February 28, 2013, the OP entered into a Contribution and Exchange Agreement (the "Contribution and Exchange Agreement") with the ARCT III OP and American Realty Capital Trust III Special Limited Partner, LLC, the holder of the special limited partner interest in the ARCT III OP . The Special Limited Partner was entitled to receive certain distributions from the ARCT III OP, including the subordinated distribution of net sales proceeds resulting from an "investment liquidity event" (as defined in the agreement of limited partnership of the ARCT III OP). The ARCT III Merger constituted an "investment liquidity event," as a result of which the Special Limited Partner, in connection with management's successful attainment of the 6.0% performance hurdle and the return to ARCT III's stockholders of approximately $557.3 million in addition to their initial investment, was entitled to receive a subordinated distribution of net sales proceeds from the ARCT III OP equal to approximately $98.4 million. Pursuant to the Contribution and Exchange Agreement, the Special Limited Partner contributed its interest in the ARCT III OP, inclusive of the subordinated distribution proceeds received, to the ARCT III OP in exchange for 7.6 million ARCT III OP Units. Upon consummation of the ARCT III Merger, these ARCT III OP Units were immediately converted to 7.3 million OP Units after application of the ARCT III Exchange Ratio. In conjunction with the ARCT III Merger Agreement, the Special Limited Partner agreed to a minimum one year holding period for these OP Units before converting them to shares of Company common stock.

F-56
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Fees Paid in Connection with the ARCT IV Merger
The Company entered into an agreement with an entity under common ownership with the Former Manager, Realty Capital Securities, LLC ("RCS"), to provide strategic and financial advisory services to the Company in connection with the ARCT IV Merger. The Company agreed to pay a fee equal to 0.25% of the transaction value upon the consummation of the transaction and reimburse out of pocket expenses. The Company accrued $7.7 million of such fees and $0.6 million of such expense reimbursements as of December 31, 2013.
The Company entered into an agreement with entities under common ownership with the Former Manager, RCS, RCS Advisory Services, LLC, and American National Stock Transfer, LLC ("ANST"), to provide financial advisory and information agent services in connection with the ARCT IV Merger and the related proxy solicitation seeking approval of such merger by the Company's stockholders. Services provided include facilitation of the preparation, distribution and accumulation and tabulation of proxy materials, stockholder, analyst and financial advisor communications and consultation on materials and communications made to the public and regulatory agencies regarding the ARCT IV Merger. The Company agreed to pay $0.6 million in fees and reimburse out of pocket expenses pursuant to this agreement. This amount was fully accrued as of December 31, 2013 and paid in January 2014.
ARCT IV entered into an agreement with an entity under common ownership with the Former Manager, RCS, to provide strategic and financial advisory services to assist ARCT IV with its alternatives for a potential liquidity event. ARCT IV agreed to pay a fee equal to 0.25% of the transaction value upon the consummation of the transaction, but not less than $2.5 million, and reimburse out of pocket expenses. ARCT IV accrued $7.7 million of such fees and $0.6 million of such expense reimbursements as of December 31, 2013.
The Company and ARCT IV entered into agreements with entities under common ownership with the Former Manager, ARC Advisory Services, LLC and RCS Advisory Services, LLC, to provide legal support services, up to the date that ARCT IV entered into the ARCT IV Merger Agreement. In total the Company and ARCT IV agreed to pay $0.5 million pursuant to this agreement. This amount was fully accrued as of December 31, 2013.
ARCT IV entered into an agreement with entities under common ownership with the Former Manager, RCS, RCS Advisory Services, LLC, and ANST, to provide advisory and information agent services in connection with the ARCT IV Merger and the related proxy solicitation seeking approval of such merger by ARCT IV's stockholders. Services provided include facilitation of the preparation, distribution and accumulation and tabulation of proxy materials, stockholder, analyst and financial advisor communications and consultation on materials and communications made to the public and regulatory agencies regarding the ARCT IV Merger. ARCT IV agreed to pay $0.8 million in fees and reimburse out of pocket expenses pursuant to this agreement. As of December 31, 2013, $0.8 million of such fees and $0.2 million of such expense reimbursements were accrued.
ARCT IV entered into an agreement with with entities under common ownership with the Former Manager, ARC Advisory Services, LLC and RCS Advisory Services, LLC, to provide support services including legal, accounting, marketing, human resources and information technology, among other services, until the earlier of the potential merger closing date or one year from the effective date of the agreement of July 1, 2013. ARCT IV agreed to pay $2.0 million in fees and reimburse out of pocket expenses pursuant to this agreement. As of December 31, 2013, $2.0 million of such fees and $0.4 million of such expense reimbursements were accrued.
ARCT IV entered into the Asset Purchase and Sale Agreement with the ARCT IV Advisor, pursuant to which the ARCT IV Advisor transferred to the Company furniture, fixtures and equipment used by the ARCT IV Advisor and ARCT IV reimbursed the ARCT IV Advisor for certain unreimbursed expenses. No fees were incurred or paid under this agreement during the year ended December 31, 2013.
Pursuant to ARCT IV's advisory agreement with the ARCT IV Advisor, ARCT IV agreed to pay the ARCT IV Advisor a brokerage commission on the sale of property in connection with the ARCT IV Merger. At the time of the ARCT IV Merger, ARCT IV paid $8.4 million to the ARCT IV Advisor in connection with such agreement. These commissions were included in merger and other transaction related costs in the consolidated statement of operations. No fees were incurred under this agreement during the year ended December 31, 2013.
Investment by Affiliate
In connection with the ARCT III Merger, the Special Limited Partner invested $0.8 million in exchange for 56,797 OP Units after the effect of the ARCT III Exchange Ratio.

F-57
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Investment in Affiliate
During the year ended December 31, 2013, the Company invested $10.0 million in an affiliated real estate fund, American Real Estate Income Fund, which invests primarily in equity securities of other publicly traded REITs, and subsequently reinvested dividends totaling $0.1 million. During the fourth quarter of 2013, the Company sold investments with an original cost of $8.5 million. The fair value of the investment at December 31, 2013 was $1.5 million.

Note 19 — Economic Dependency
Prior to transitioning to self-management on January 8, 2014, the Company engaged, under various agreements, its Former Manager and its affiliates to provide certain services that are essential to the Company, including asset management services and supervision of the management and leasing of properties owned by the Company, the sale of shares of the Company's common stock, as well as other administrative responsibilities for the Company including information technology, legal services and investor relations. See Note 23 — Subsequent Events for additional information on the Company's transition to self-management.
As a result of these relationships, the Company was dependent upon its Former Manager, the Sponsor and their affiliates. In the event that these companies were unable to provide the Company with the respective services, the Company would have been required to find alternative providers of these services. As a result of the ARCT III Merger, the Company internalized certain accounting and property acquisition services previously performed by its Former Manager and its affiliates. The Company may from time to time engage its Former Manager for legal, information technology or other support services for which it will pay a fee.
Note 20 — Net Loss Per Share 
The following is a summary of the basic and diluted net loss per share computation for the years ended December 31, 2013, 2012 and 2011 (amounts in thousands, expect for shares and per share data):
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Net loss from continuing operations attributable to stockholders
 
$
(474,721
)
 
$
(41,237
)
 
$
(3,883
)
Net income (loss) from discontinued operations attributable to common stockholders
 
(19
)
 
(699
)
 
(816
)
Net loss attributable to common stockholders
 
(474,740
)
 
(41,936
)
 
(4,699
)
Less: dividends declared on preferred shares and RSUs
 
(3,631
)
 
(368
)
 
—

Net loss attributable to common stockholders, net of dividends on preferred securities and RSUS
 
$
(478,371
)
 
$
(42,304
)
 
$
(4,699
)
 
 
 
 
 
 
 
Weighted-average common shares outstanding (1)
 
205,341,431

 
103,306,366

 
3,720,351

Basic and diluted net loss per share from continuing operations attributable to common stockholders
 
$
(2.33
)
 
$
(0.40
)
 
$
(1.04
)
Basic and diluted net loss per share from discontinued operations attributable to common stockholders
 
$
(0.00
)
 
$
(0.01
)
 
$
(0.22
)
Basic and diluted net loss per share attributable to common stockholders
 
$
(2.33
)
 
$
(0.41
)
 
$
(1.26
)
_______________________________________________
(1) Weighted-average shares for the year ended December 31, 2013 are adjusted on a pro forma basis as if the purchase of 27.7 million shares of ARCT III common stock for cash, purchased in conjunction with the ARCT III Merger, had been completed at the beginning of the period. Weighted-average shares for the year ended December 31, 2013, excluding this pro forma adjustment, were 209,635,002 and net loss was $2.28 per share, basic and diluted.
For the year ended December 31, 2013, the Company excluded 9,591,173 OP Units outstanding, which are convertible to an equal number of shares of the Company's common stock, 946,442 shares of unvested restricted stock outstanding and 21,735,008 shares of the Company's Series D Convertible Preferred Stock outstanding as of December 31, 2013 from the calculation of diluted net loss per share as the effect would have been antidilutive.

F-58
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Note 21 — Discontinued Operations and Properties Held for Sale
The Company separately classifies properties held for sale in the accompanying consolidated balance sheets and operating results for those properties as discontinued operations in the accompanying consolidated statements of operations and comprehensive loss. In the normal course of business, changes in the market or changes in credit risk of certain tenants, among other factors, may compel the Company to decide to classify a property as held for sale or reclassify a property that is designated as held for sale back to held for investment. In these situations, the property is transferred to held for sale or back to held for investment at the lesser of fair value or depreciated cost. As of December 31, 2013 and 2012, the Company held one and two properties, respectively, classified as held for sale on the accompanying respective consolidated balance sheets.
On March 5, 2013, the Company executed a purchase and sale agreement to sell a Citizens Bank branch in Worth, IL classified as held for sale as of December 31, 2013. The sale price of the asset is $0.7 million in cash, which approximates the carrying value of the property.
Note 22 — Quarterly Results (Unaudited)
Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2013 and 2012 (in thousands, except share and per share amounts):
 
 
Quarters Ended(1)
 
 
March 31,
2013
 
June 30,
2013
 
September 30,
2013
 
December 31,
2013
Revenues
 
$
42,897

 
$
54,945

 
$
95,255

 
$
136,781

Net loss from continuing operations attributable to stockholders
 
(141,161
)
 
(71,992
)
 
(82,768
)
 
(178,800
)
Net income (loss) from discontinued operations attributable to common stockholders
 
(2
)
 
34

 
91

 
(142
)
Net loss attributable to common stockholders
 
(141,163
)
 
(71,958
)
 
(82,677
)
 
(178,942
)
Less: dividends declared on preferred shares and RSUs
 
(193
)
 
(233
)
 
(199
)
 
(3,006
)
Net loss attributable to common stockholders, net of dividends on preferred securities and RSUs
 
$
(141,356
)
 
$
(72,191
)
 
$
(82,876
)
 
$
(181,948
)
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding
 
167,847,516

 
198,956,355

 
221,707,934

 
231,969,433

 
 
 
 
 
 
 
 
 
Basic and diluted loss per share from continuing operations attributable to common stockholders
 
$
(0.84
)
 
$
(0.36
)
 
$
(0.37
)
 
$
(0.77
)
Basic and diluted loss per share from discontinued operations attributable to common stockholders
 
$
—

 
$
—

 
$
—

 
$
—

Basic and diluted loss per share attributable to common stockholders
 
$
(0.84
)
 
$
(0.36
)
 
$
(0.37
)
 
$
(0.78
)
(1) Certain historical balances have been restated for discontinue operations.

F-59
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

 
 
Quarters Ended(1)
 
 
March 31,
2012
 
June 30,
2012
 
September 30,
2012
 
December 31,
2012
Revenues
 
$
6,240

 
$
11,534

 
$
18,945

 
$
30,488

Net loss from continuing operations attributable to stockholders
 
(4,722
)
 
(7,012
)
 
(12,768
)
 
(16,735
)
Net loss from discontinued operations attributable to common stockholders
 
(322
)
 
(77
)
 
(41
)
 
(259
)
Net loss attributable to common stockholders
 
(5,044
)
 
(7,089
)
 
(12,809
)
 
(16,994
)
Less: dividends declared on preferred shares and RSUs
 
—

 
(70
)
 
(140
)
 
(158
)
Net loss attributable to common stockholders, net of dividends on preferred securities and RSUs
 
$
(5,044
)
 
$
(7,159
)
 
$
(12,949
)
 
$
(17,152
)
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding
 
23,614,122

 
68,317,195

 
138,348,622

 
180,931,150

 
 
 
 
 
 
 
 
 
Basic and diluted loss per share from continuing operations attributable to common stockholders
 
$
(0.20
)
 
$
(0.10
)
 
$
(0.09
)
 
$
(0.09
)
Basic and diluted loss per share from discontinued operations attributable to common stockholders
 
$
(0.01
)
 
$
—

 
$
—

 
$
—

Basic and diluted loss per share attributable to common stockholders
 
$
(0.21
)
 
$
(0.10
)
 
$
(0.09
)
 
$
(0.09
)
(1) Certain historical balances have been restated for discontinue operations.
Note 23 — Subsequent Events
In addition to those items discussed in Note 2 —Mergers and Acquisitions, Note 11 — Other Debt and Note 17 — Equity Based Compensation, the following events occurred subsequent to December 31, 2013 that require adjustments to the disclosures in the consolidated financial statements:
Completion of Acquisition of Assets
The following table presents certain information about the properties that the Company acquired from January 1, 2014 to May 19, 2014 (dollar amounts in thousands):
 
 
No. of Buildings
 
Square Feet
 
Base Purchase Price (1)
Total Portfolio – December 31, 2013 (2)
 
2,559

 
43,834,493

 
$
7,392,610

Acquisitions, net of disposals
 
1,280

 
61,361,128

 
10,088,226

Total Portfolio – May 19, 2014 (2)
 
3,839

 
105,195,621

 
$
17,480,836

____________________________
(1)Contract purchase price, excluding acquisition and transaction related costs.
(2)
Total portfolio excludes one vacant property contributed in September 2011, which was classified as held for sale as of December 31, 2013.
Transition to Self-Management
On January 8, 2014, the Company completed its transition to self-management. In connection with becoming self-managed, ARCP terminated its management agreement with its Former Manager and certain former executives and employees of its Former Manager became employees of the Company.

F-60
AMERICAN REALTY CAPITAL PROPERTIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 31, 2013

Termination of Management Agreement
In connection with the transition by the Company to self-management, on January 8, 2014, the Company and its Former Manager entered into an Amendment and Acknowledgment of Termination of Amended and Restated Management Agreement (the "Termination Agreement"), dated January 8, 2014. The Termination Agreement provided for termination of the Amended and Restated Management Agreement, dated February 28, 2013, between the Company and its Former Manager, effective January 8, 2014. Pursuant to the Termination Agreement, the Company's Former Manager agreed to continue to provide services previously provided under the Management Agreement, to the extent required by the Company, for a period of 60 days following January 8, 2014 and received a payment in the amount of $10.0 million for providing such services.
Pursuant to an Assignment and Assumption Agreement (the "Assignment") dated January 8, 2014 between AR Capital, LLC, an affiliate of the Company's Former Manager ("AR Capital") and RCS Advisory Services, LLC, AR Capital assigned to the Company, and the Company assumed, certain of the rights and obligations under that certain Services Agreement dated as of June 10, 2013 between AR Capital and RCS Advisory Services, LLC (the "Services Agreement"). Under the Services Agreement, RCS Advisory Services, LLC and its affiliates had been providing to the Company certain transaction management services and other services, employees and other resources. The Assignment enables the Company to continue to receive the services and resources contemplated under the Services Agreement, at the Company's discretion.
In addition, pursuant to a separate Transition Services Agreement (the "Transition Services Agreement"), dated October 21, 2013, affiliates of the Company's Former Manager agreed to provide certain transition services, including accounting support, acquisition support, investor relations support, public relations support, human resources and administration, general human resources duties, payroll services, benefits services, insurance and risk management, information technology, telecommunications and internet and services relating to office supplies. The Transition Services Agreement will be in effect for a 60-day term beginning on the date the Company became self-managed, and may be extended by the Company at its discretion. Should the Company request any services, the Company will pay a fee at an hourly rate or flat rate to be agreed on, not to exceed a market rate for the services to be provided pursuant to the Transition Services Agreement.
Purchase of Furniture, Fixtures and Equipment
On January 8, 2014, the OP entered into the Asset Purchase and Sale Agreement with the Company's Former Manager (the "Purchase Agreement"), pursuant to which the Former Manager transferred to the OP furniture, fixtures and equipment used by the Former Manager in connection with the business of the Company. Under the Purchase Agreement, the OP paid the Company's Former Manager $10.0 million for the furniture, fixtures and equipment and certain unreimbursed expenses.

F-61

Real Estate and Accumulated Depreciation
Schedule III
December 31, 2013
(in thousands)

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 24 Hour Fitness
 
 Woodlands
 
 TX
 
$
—

(1) 
$
2,690

 
$
8,312

 
$
—

 
$
11,002

 
$
146

 
9/24/2013
 
2001
 7-Eleven
 
 Sarasota
 
 FL
 
—

(1) 
1,312

 
1,312

 
—

 
2,624

 
80

 
11/19/2012
 
2000
 7-Eleven
 
 Gloucester
 
 VA
 
—

(1) 
144

 
578

 
—

 
722

 
32

 
12/24/2012
 
1985
 7-Eleven
 
 Hampton
 
 VA
 
—

(1) 
69

 
624

 
—

 
693

 
35

 
12/24/2012
 
1986
 7-Eleven
 
 Hampton
 
 VA
 
—

(1) 
161

 
644

 
—

 
805

 
36

 
12/24/2012
 
1959
 Abbott Laboratories
 
 Waukegan
 
 IL
 
13,649

 
4,734

 
21,319

 
—

 
26,053

 
193

 
11/5/2013
 
2000
 Abbott Laboratories
 
 Columbus
 
 OH
 
—

(2) 
800

 
11,385

 
—

 
12,185

 
122

 
11/5/2013
 
2004
 Academy Sports
 
 Fayetteville
 
 AR
 
—

 
1,900

 
7,601

 
—

 
9,501

 
534

 
12/28/2012
 
2012
 Academy Sports
 
 Dalton
 
 GA
 
—

 
998

 
5,656

 
—

 
6,654

 
331

 
2/20/2013
 
2012
 Advance Auto
 
 Birmingham
 
 AL
 
—

(1) 
330

 
494

 
—

 
824

 
23

 
2/28/2013
 
1999
 Advance Auto
 
 Birmingham
 
 AL
 
—

(1) 
455

 
373

 
—

 
828

 
17

 
2/28/2013
 
1997
 Advance Auto
 
 Calera
 
 AL
 
—

(1) 
723

 
723

 
—

 
1,446

 
41

 
12/27/2012
 
2008
 Advance Auto
 
 Dothan
 
 AL
 
—

(1) 
326

 
326

 
—

 
652

 
18

 
12/31/2012
 
1997
 Advance Auto
 
 Enterprise
 
 AL
 
—

(1) 
280

 
420

 
—

 
700

 
24

 
12/31/2012
 
1995
 Advance Auto
 
 Albany
 
 GA
 
—

(1) 
210

 
629

 
—

 
839

 
35

 
12/31/2012
 
1995
 Advance Auto
 
 Cairo
 
 GA
 
—

(1) 
140

 
326

 
—

 
466

 
18

 
12/31/2012
 
1993
 Advance Auto
 
 Hazlehurst
 
 GA
 
—

(1) 
113

 
451

 
—

 
564

 
25

 
12/31/2012
 
1998
 Advance Auto
 
 Hinesville
 
 GA
 
—

(1) 
352

 
430

 
—

 
782

 
24

 
12/31/2012
 
1994
 Advance Auto
 
 Perry
 
 GA
 
—

(1) 
209

 
487

 
—

 
696

 
27

 
12/31/2012
 
1994
 Advance Auto
 
 Thomasville
 
 GA
 
—

(1) 
251

 
377

 
—

 
628

 
21

 
12/31/2012
 
1997
 Advance Auto
 
 Auburn
 
 IN
 
—

 
337

 
1,347

 
—

 
1,684

 
132

 
3/29/2012
 
2007
 Advance Auto
 
 Clinton
 
 IN
 
—

(1) 
182

 
729

 
—

 
911

 
24

 
6/5/2013
 
2004
 Advance Auto
 
 Fort Wayne
 
 IN
 
—

(1) 
193

 
450

 
—

 
643

 
21

 
2/28/2013
 
1998
 Advance Auto
 
 Fort Wayne
 
 IN
 
—

(1) 
200

 
371

 
—

 
571

 
17

 
2/28/2013
 
1998
 Advance Auto
 
 Salina
 
 KS
 
—

(1) 
195

 
782

 
—

 
977

 
29

 
4/30/2013
 
2006
 Advance Auto
 
 Barbournville
 
 KY
 
—

(1) 
194

 
1,098

 
—

 
1,292

 
46

 
4/15/2013
 
2006
 Advance Auto
 
 Bardstown
 
 KY
 
—

(1) 
272

 
1,090

 
—

 
1,362

 
66

 
12/10/2012
 
2005
 Advance Auto
 
 Brandenburg
 
 KY
 
—

(1) 
186

 
742

 
—

 
928

 
45

 
12/10/2012
 
2005

F-62

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Advance Auto
 
 Hardinsburg
 
 KY
 
—

(1) 
94

 
845

 
—

 
939

 
51

 
12/10/2012
 
2007
 Advance Auto
 
 Inez
 
 KY
 
—

(1) 
130

 
1,174

 
—

 
1,304

 
88

 
8/22/2012
 
2010
 Advance Auto
 
 Leitchfield
 
 KY
 
—

(1) 
104

 
939

 
—

 
1,043

 
57

 
12/10/2012
 
2005
 Advance Auto
 
 West Liberty
 
 KY
 
—

(1) 
249

 
996

 
—

 
1,245

 
42

 
4/15/2013
 
2006
 Advance Auto
 
 Rayne
 
 LA
 
—

(1) 
122

 
490

 
—

 
612

 
16

 
5/21/2013
 
2000
 Advance Auto
 
 Caro
 
 MI
 
—

(8) 
117

 
665

 
—

 
782

 
78

 
11/23/2011
 
2002
 Advance Auto
 
 Charlotte
 
 MI
 
—

(8) 
123

 
697

 
—

 
820

 
82

 
11/23/2011
 
2002
 Advance Auto
 
 Flint
 
 MI
 
—

(1) 
133

 
534

 
—

 
667

 
62

 
11/23/2011
 
2002
 Advance Auto
 
 Livonia
 
 MI
 
—

(8) 
210

 
629

 
14

 
853

 
74

 
12/12/2011
 
2003
 Advance Auto
 
 Manistee
 
 MI
 
—

(1) 
348

 
1,043

 
—

 
1,391

 
44

 
4/15/2013
 
2007
 Advance Auto
 
 Sault Ste. Marie
 
 MI
 
—

(8) 
75

 
671

 
—

 
746

 
78

 
11/23/2011
 
2003
 Advance Auto
 
 Ypsilanti
 
 MI
 
—

(1) 
85

 
483

 
—

 
568

 
57

 
11/23/2011
 
2002
 Advance Auto
 
 Eden
 
 NC
 
—

(1) 
320

 
746

 
—

 
1,066

 
17

 
7/16/2013
 
2004
 Advance Auto
 
 Granite Falls
 
 NC
 
—

(1) 
251

 
1,005

 
—

 
1,256

 
80

 
8/9/2012
 
2010
 Advance Auto
 
 Lakewood
 
 NJ
 
—

(1) 
750

 
1,750

 
—

 
2,500

 
131

 
8/22/2012
 
2010
 Advance Auto
 
 Woodbury
 
 NJ
 
—

(1) 
446

 
1,784

 
—

 
2,230

 
150

 
6/20/2012
 
2007
 Advance Auto
 
 Eaton
 
 OH
 
—

(1) 
157

 
471

 
—

 
628

 
15

 
6/13/2013
 
1987
 Advance Auto
 
 Franklin
 
 OH
 
—

(1) 
218

 
873

 
—

 
1,091

 
69

 
8/9/2012
 
1984
 Advance Auto
 
 Springfield
 
 OH
 
—

(1) 
461

 
1,075

 
—

 
1,536

 
60

 
12/31/2012
 
2005
 Advance Auto
 
 Van Wert
 
 OH
 
—

(1) 
33

 
630

 
—

 
663

 
21

 
6/13/2013
 
1998
 Advance Auto
 
 Warren
 
 OH
 
—

 
83

 
745

 
—

 
828

 
73

 
4/12/2012
 
2003
 Advance Auto
 
 Oklahoma City
 
 OK
 
—

(1) 
208

 
1,178

 
—

 
1,386

 
94

 
8/9/2012
 
2007
 Advance Auto
 
 Chambersburg
 
 PA
 
—

(1) 
553

 
830

 
—

 
1,383

 
39

 
2/28/2013
 
1997
 Advance Auto
 
 Selinsgrove
 
 PA
 
—

(1) 
99

 
891

 
—

 
990

 
29

 
6/3/2013
 
2003
 Advance Auto
 
 Titusville
 
 PA
 
—

(1) 
207

 
1,172

 
—

 
1,379

 
71

 
12/12/2012
 
2010
 Advance Auto
 
 Chapin
 
 SC
 
—

(1) 
395

 
922

 
—

 
1,317

 
78

 
6/20/2012
 
2007
 Advance Auto
 
 Chesterfield
 
 SC
 
—

(1) 
131

 
745

 
—

 
876

 
63

 
6/27/2012
 
2008
 Advance Auto
 
 Greenwood
 
 SC
 
—

 
210

 
630

 
—

 
840

 
65

 
3/9/2012
 
1995
 Advance Auto
 
 Sweetwater
 
 TN
 
—

(1) 
360

 
839

 
—

 
1,199

 
51

 
11/29/2012
 
2006
 Advance Auto
 
 Alton
 
 TX
 
—

(1) 
169

 
958

 
—

 
1,127

 
63

 
10/18/2012
 
2006
 Advance Auto
 
 Houston
 
 TX
 
—

(3) 
248

 
991

 
—

 
1,239

 
125

 
9/30/2011
 
2006
 Advance Auto
 
 Houston
 
 TX
 
—

(3) 
343

 
1,029

 
—

 
1,372

 
130

 
9/30/2011
 
2006
 Advance Auto
 
 Houston
 
 TX
 
—

(1) 
837

 
685

 
—

 
1,522

 
51

 
8/21/2012
 
2007
 Advance Auto
 
 Pasadena
 
 TX
 
—

(1) 
382

 
1,146

 
—

 
1,528

 
97

 
7/6/2012
 
2008

F-63

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Advance Auto
 
 Fort Atkinson
 
 WI
 
—

(1) 
353

 
824

 
—

 
1,177

 
15

 
8/26/2013
 
2004
 Advance Auto
 
 Kenosha
 
 WI
 
—

(1) 
569

 
465

 
—

 
1,034

 
22

 
3/13/2013
 
2004
 Advance Auto
 
 St. Marys
 
 WY
 
—

(1) 
309

 
928

 
—

 
1,237

 
52

 
12/28/2012
 
2007
 Aetna Life Insurance Company
 
 Fresno
 
 CA
 
16,043

 
3,405

 
22,343

 
—

 
25,748

 
207

 
11/5/2013
 
2008
 Ale House
 
 Orlando
 
 FL
 
—

(1) 
290

 
3,647

 
—

 
3,937

 
105

 
6/27/2013
 
1994
 Ale House
 
 Orlando
 
 FL
 
—

(1) 
270

 
3,668

 
—

 
3,938

 
105

 
6/27/2013
 
1993
 Ale House
 
 Saint Petersburg
 
 FL
 
—

 
930

 
3,116

 
—

 
4,046

 
89

 
6/27/2013
 
1998
 Allstate Insurance Company
 
 Charlotte
 
 NC
 
18,846

 
8,320

 
23,409

 
—

 
31,729

 
265

 
11/5/2013
 
1990
 Allstate Insurance Company
 
 Roanoke
 
 VA
 
20,064

 
6,176

 
27,085

 
—

 
33,261

 
281

 
11/5/2013
 
1981
 AMCOR
 
 Alhambra
 
 MI
 
—

(1) 
7,143

 
8,730

 
—

 
15,873

 
488

 
1/24/2013
 
1966
 AMEC plc
 
 Houston
 
 TX
 
15,765

 
2,524

 
30,398

 
—

 
32,922

 
255

 
11/5/2013
 
2003
 Ameriprise
 
 Ashwaubenon
 
 WI
 
—

 
751

 
14,260

 
—

 
15,011

 
631

 
1/25/2013
 
2000
 AON Corporation
 
 Lincolnshire
 
 IL
 
—

 
5,337

 
124,776

 
—

 
130,113

 
7,297

 
11/16/2012
 
1998
 Applebee's
 
 Clinton
 
 IA
 
—

(1) 
490

 
1,184

 
—

 
1,674

 
34

 
6/27/2013
 
1997
 Applebee's
 
 Fort Dodge
 
 IA
 
—

(1) 
—

 
1,363

 
—

 
1,363

 
39

 
6/27/2013
 
1997
 Applebee's
 
 Marshalltown
 
 IA
 
—

(1) 
660

 
1,175

 
—

 
1,835

 
34

 
6/27/2013
 
1997
 Applebee's
 
 Mason City
 
 IA
 
—

(1) 
340

 
1,495

 
—

 
1,835

 
43

 
6/27/2013
 
1997
 Applebee's
 
 Muscatine
 
 IA
 
—

(1) 
330

 
1,266

 
—

 
1,596

 
36

 
6/27/2013
 
1996
 Applebee's
 
 Sterling
 
 IL
 
—

(1) 
390

 
1,291

 
—

 
1,681

 
37

 
6/27/2013
 
1996
 Applebee's
 
 Hopkinsville
 
 KY
 
—

(1) 
460

 
1,265

 
—

 
1,725

 
36

 
6/27/2013
 
1997
 Applebee's
 
 Greenville
 
 SC
 
—

(1) 
600

 
2,166

 
—

 
2,766

 
62

 
6/27/2013
 
1999
 Applebee's
 
 Antioch
 
 TN
 
—

(1) 
470

 
878

 
—

 
1,348

 
25

 
6/27/2013
 
1991
 Applebee's
 
 Clarksville
 
 TN
 
—

(1) 
570

 
1,729

 
—

 
2,299

 
50

 
6/27/2013
 
1995
 Applebee's
 
 Columbia
 
 TN
 
—

(1) 
590

 
1,823

 
—

 
2,413

 
52

 
6/27/2013
 
1996
 Applebee's
 
 Cookeville
 
 TN
 
—

(1) 
410

 
1,128

 
—

 
1,538

 
32

 
6/27/2013
 
1993
 Applebee's
 
 Hermitage
 
 TN
 
—

(1) 
530

 
1,491

 
—

 
2,021

 
43

 
6/27/2013
 
1992
 Applebee's
 
 Lebanon
 
 TN
 
—

(1) 
460

 
1,120

 
—

 
1,580

 
32

 
6/27/2013
 
1998
 Applebee's
 
 Madison
 
 TN
 
—

(1) 
460

 
772

 
—

 
1,232

 
22

 
6/27/2013
 
1995

F-64

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Arby's
 
 Arab
 
 AL
 
—

(1) 
40

 
887

 
—

 
927

 
25

 
6/27/2013
 
1988
 Arby's
 
 Hampton Cove
 
 AL
 
—

(1) 
310

 
986

 
—

 
1,296

 
27

 
6/27/2013
 
2007
 Arby's
 
 Sacramento
 
 CA
 
—

(1) 
520

 
195

 
—

 
715

 
5

 
6/27/2013
 
1981
 Arby's
 
 Arvada
 
 CO
 
—

(1) 
190

 
1,465

 
—

 
1,655

 
41

 
6/27/2013
 
1994
 Arby's
 
 Orange Park
 
 FL
 
—

(1) 
420

 
1,256

 
—

 
1,676

 
35

 
6/27/2013
 
1998
 Arby's
 
 Canton
 
 GA
 
—

(1) 
370

 
1,200

 
—

 
1,570

 
33

 
6/27/2013
 
1998
 Arby's
 
 Douglasville
 
 GA
 
—

(1) 
370

 
1,692

 
—

 
2,062

 
47

 
6/27/2013
 
1999
 Arby's
 
 Suwanee
 
 GA
 
—

(1) 
370

 
1,561

 
—

 
1,931

 
43

 
6/27/2013
 
1998
 Arby's
 
 Avon
 
 IN
 
—

(1) 
500

 
812

 
—

 
1,312

 
22

 
6/27/2013
 
1996
 Arby's
 
 Indianapolis
 
 IN
 
—

(1) 
530

 
1,236

 
—

 
1,766

 
34

 
6/27/2013
 
2000
 Arby's
 
 Indianapolis
 
 IN
 
—

(1) 
370

 
1,130

 
—

 
1,500

 
31

 
6/27/2013
 
1978
 Arby's
 
 Kansas City
 
 KS
 
—

(1) 
280

 
364

 
—

 
644

 
10

 
6/27/2013
 
1970
 Arby's
 
 Salina
 
 KS
 
—

(1) 
540

 
300

 
—

 
840

 
8

 
6/27/2013
 
1980
 Arby's
 
 Topeka
 
 KS
 
—

(1) 
240

 
291

 
—

 
531

 
8

 
6/27/2013
 
1979
 Arby's
 
 Topeka
 
 KS
 
—

(1) 
270

 
433

 
—

 
703

 
12

 
6/27/2013
 
1979
 Arby's
 
 Alma
 
 MI
 
—

(1) 
380

 
408

 
—

 
788

 
11

 
6/27/2013
 
1994
 Arby's
 
 Chesterfield
 
 MI
 
—

(1) 
210

 
841

 
—

 
1,051

 
23

 
6/27/2013
 
1990
 Arby's
 
 Davison
 
 MI
 
—

(1) 
420

 
631

 
—

 
1,051

 
17

 
6/27/2013
 
1980
 Arby's
 
 Flint
 
 MI
 
—

(1) 
110

 
1,422

 
—

 
1,532

 
39

 
6/27/2013
 
1979
 Arby's
 
 Flint
 
 MI
 
—

(1) 
230

 
1,428

 
—

 
1,658

 
40

 
6/27/2013
 
1962
 Arby's
 
 Midland
 
 MI
 
—

(1) 
340

 
753

 
—

 
1,093

 
21

 
6/27/2013
 
1994
 Arby's
 
 Pontiac
 
 MI
 
—

(1) 
180

 
962

 
—

 
1,142

 
27

 
6/27/2013
 
1968
 Arby's
 
 Port Huron
 
 MI
 
—

(1) 
210

 
868

 
—

 
1,078

 
24

 
6/27/2013
 
1975
 Arby's
 
 Saginaw
 
 MI
 
—

(1) 
310

 
1,110

 
—

 
1,420

 
31

 
6/27/2013
 
1970
 Arby's
 
 South Haven
 
 MI
 
—

(1) 
260

 
573

 
—

 
833

 
16

 
6/27/2013
 
1988
 Arby's
 
 Walker
 
 MI
 
—

(1) 
360

 
1,002

 
—

 
1,362

 
28

 
6/27/2013
 
1999
 Arby's
 
 Fayetteville
 
 NC
 
—

(1) 
420

 
2,001

 
—

 
2,421

 
55

 
6/27/2013
 
2006
 Arby's
 
 Greensboro
 
 NC
 
—

(1) 
300

 
906

 
—

 
1,206

 
25

 
6/27/2013
 
1990
 Arby's
 
 Greenville
 
 NC
 
—

(1) 
310

 
681

 
—

 
991

 
19

 
6/27/2013
 
1995
 Arby's
 
 Jonesville
 
 NC
 
—

(1) 
350

 
908

 
—

 
1,258

 
25

 
6/27/2013
 
1995
 Arby's
 
 Kernersville
 
 NC
 
—

(1) 
280

 
774

 
—

 
1,054

 
21

 
6/27/2013
 
1994
 Arby's
 
 Kinston
 
 NC
 
—

(1) 
350

 
832

 
—

 
1,182

 
23

 
6/27/2013
 
1995

F-65

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Arby's
 
 Lexington
 
 NC
 
—

(1) 
360

 
873

 
—

 
1,233

 
24

 
6/27/2013
 
1992
 Arby's
 
 Columbus
 
 OH
 
—

(1) 
400

 
1,155

 
—

 
1,555

 
32

 
6/27/2013
 
1999
 Arby's
 
 Reynoldsburg
 
 OH
 
—

(1) 
370

 
945

 
—

 
1,315

 
26

 
6/27/2013
 
1998
 Arby's
 
 Willard
 
 OH
 
—

(1) 
230

 
599

 
—

 
829

 
17

 
6/27/2013
 
2005
 Arby's
 
 Allentown
 
 PA
 
—

(1) 
600

 
1,652

 
—

 
2,252

 
46

 
6/27/2013
 
1978
 Arby's
 
 Carlisle
 
 PA
 
—

(1) 
200

 
472

 
—

 
672

 
13

 
6/27/2013
 
1992
 Arby's
 
 Hanover
 
 PA
 
—

(1) 
400

 
921

 
—

 
1,321

 
26

 
6/27/2013
 
1994
 Arby's
 
 Myrtle Beach
 
 SC
 
—

(1) 
370

 
1,132

 
—

 
1,502

 
31

 
6/27/2013
 
1999
 Arby's
 
 Amarillo
 
 TX
 
—

(1) 
260

 
627

 
—

 
887

 
17

 
6/27/2013
 
1992
 AT&T
 
 Richardson
 
 TX
 
20,224

 
1,891

 
31,118

 
—

 
33,009

 
262

 
11/5/2013
 
1987
 Auto Zone
 
 Chicago
 
 IL
 
—

(1) 
698

 
1,047

 
—

 
1,745

 
39

 
4/30/2013
 
2007
 Bandana's Bar-B-Q Restaurant
 
 Collinsville
 
 IL
 
—

(1) 
340

 
627

 
—

 
967

 
18

 
6/27/2013
 
1987
 Bandana's Bar-B-Q Restaurant
 
 Arnold
 
 MO
 
—

(1) 
460

 
433

 
—

 
893

 
12

 
6/27/2013
 
1999
 Baxter International, Inc.
 
 Bloomington
 
 IN
 
—

(2) 
1,310

 
8,216

 
—

 
9,526

 
84

 
11/5/2013
 
2004
 Bed Bath & Beyond
 
 Stockton
 
 CA
 
—

 
2,761

 
52,454

 
—

 
55,215

 
4,266

 
8/17/2012
 
2003
 Big O Tires
 
 Los Lunas
 
 NM
 
—

(1) 
316

 
1,265

 
—

 
1,581

 
116

 
6/1/2012
 
2006
 BJ's Wholesale Club
 
 Canton
 
 OH
 
—

 
456

 
8,668

 
—

 
9,124

 
507

 
2/20/2013
 
1998
 Black Angus
 
 Dublin
 
 CA
 
—

(1) 
620

 
2,467

 
—

 
3,087

 
71

 
6/27/2013
 
1999
 Bojangles
 
 Winder
 
 GA
 
—

(1) 
645

 
1,198

 
—

 
1,843

 
120

 
7/30/2012
 
2011
 Bojangles
 
 Biscoe
 
 NC
 
—

(1) 
247

 
986

 
—

 
1,233

 
75

 
11/29/2012
 
2010
 Bojangles
 
 Boone
 
 NC
 
—

(1) 
278

 
833

 
—

 
1,111

 
83

 
7/27/2012
 
1980
 Bojangles
 
 Dobson
 
 NC
 
—

(1) 
251

 
1,004

 
—

 
1,255

 
100

 
7/30/2012
 
2010
 Bojangles
 
 Indian Trail
 
 NC
 
—

(1) 
655

 
1,217

 
—

 
1,872

 
121

 
7/27/2012
 
2011
 Bojangles
 
 Morganton
 
 NC
 
—

 
566

 
1,321

 
—

 
1,887

 
132

 
7/27/2012
 
2010
 Bojangles
 
 Roanoke Rapids
 
 NC
 
—

(1) 
442

 
1,032

 
—

 
1,474

 
103

 
7/27/2012
 
2011
 Bojangles
 
 Southport
 
 NC
 
—

(1) 
505

 
1,179

 
—

 
1,684

 
118

 
7/30/2012
 
2011
 Bojangles
 
 Chapin
 
 SC
 
—

(1) 
577

 
1,071

 
—

 
1,648

 
107

 
8/9/2012
 
2009
 Bojangles
 
 Clinton
 
 SC
 
—

(1) 
397

 
926

 
—

 
1,323

 
92

 
7/27/2012
 
2009
 Bojangles
 
 Greenwood
 
 SC
 
—

(1) 
440

 
1,320

 
—

 
1,760

 
77

 
2/28/2013
 
2011
 Bojangles
 
 Moncks Corner
 
 SC
 
—

(1) 
505

 
1,179

 
—

 
1,684

 
90

 
11/29/2012
 
2010
 Bojangles
 
 Walterboro
 
 SC
 
—

(1) 
454

 
1,363

 
—

 
1,817

 
104

 
11/29/2012
 
2010

F-66

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Boston Market
 
 Indianapolis
 
 IN
 
—

(1) 
930

 
—

 
—

 
930

 
—

 
6/27/2013
 
1997
 Boston Market
 
 Indianapolis
 
 IN
 
—

(1) 
410

 
1,070

 
—

 
1,480

 
30

 
6/27/2013
 
1997
 Boston Market
 
 Fayetteville
 
 NC
 
—

(1) 
460

 
1,520

 
—

 
1,980

 
42

 
6/27/2013
 
1996
 Boston Market
 
 Raleigh
 
 NC
 
—

(1) 
280

 
1,015

 
—

 
1,295

 
28

 
6/27/2013
 
1994
 Brangus Steakhouse
 
 Jasper
 
 AL
 
—

(1) 
140

 
219

 
—

 
359

 
6

 
6/27/2013
 
1986
 Bruegger's Bagels
 
 Iowa City
 
 IA
 
—

(1) 
40

 
379

 
—

 
419

 
10

 
6/27/2013
 
2013
 Bruegger's Bagels
 
 Raleigh
 
 NC
 
—

(1) 
230

 
654

 
—

 
884

 
18

 
6/27/2013
 
1997
 Buca di Beppo Italian
 
 Wheeling
 
 IL
 
—

(1) 
450

 
1,272

 
—

 
1,722

 
36

 
6/27/2013
 
1975
 Buca di Beppo Italian
 
 Westlake
 
 OH
 
—

(1) 
370

 
887

 
—

 
1,257

 
25

 
6/27/2013
 
1900
 Bunge North America, Inc.
 
 Fort Worth
 
 TX
 
6,262

 
1,100

 
8,433

 
—

 
9,533

 
76

 
11/5/2013
 
2005
 Burger King
 
 Tucson
 
 AZ
 
—

(1) 
300

 
1,307

 
—

 
1,607

 
36

 
6/27/2013
 
1980
 Burger King
 
 Atlanta
 
 GA
 
—

(1) 
380

 
499

 
—

 
879

 
14

 
6/27/2013
 
1984
 Burger King
 
 Fort Oglethorpe
 
 GA
 
—

(1) 
170

 
2,175

 
—

 
2,345

 
60

 
6/27/2013
 
1979
 Burger King
 
 Marietta
 
 GA
 
—

(1) 
350

 
916

 
—

 
1,266

 
25

 
6/27/2013
 
1983
 Burger King
 
 Chicago
 
 IL
 
—

(1) 
580

 
1,413

 
—

 
1,993

 
39

 
6/27/2013
 
1996
 Burger King
 
 Highland
 
 IN
 
—

(1) 
410

 
992

 
—

 
1,402

 
27

 
6/27/2013
 
1996
 Burger King
 
 Madisonville
 
 KY
 
—

(1) 
550

 
1,067

 
—

 
1,617

 
30

 
6/27/2013
 
1980
 Burger King
 
 Caribou
 
 ME
 
—

(1) 
770

 
440

 
—

 
1,210

 
12

 
6/27/2013
 
1978
 Burger King
 
 Grand Rapids
 
 MI
 
—

(1) 
490

 
545

 
—

 
1,035

 
15

 
6/27/2013
 
1968
 Burger King
 
 Grand Rapids
 
 MI
 
—

(1) 
260

 
780

 
—

 
1,040

 
22

 
6/27/2013
 
1993
 Burger King
 
 Holland
 
 MI
 
—

(1) 
420

 
707

 
—

 
1,127

 
20

 
6/27/2013
 
1978
 Burger King
 
 Sparta
 
 MI
 
—

(1) 
640

 
570

 
—

 
1,210

 
16

 
6/27/2013
 
1992
 Burger King
 
 Walled Lake
 
 MI
 
—

(1) 
470

 
433

 
—

 
903

 
12

 
6/27/2013
 
1982
 Burger King
 
 Durham
 
 NC
 
—

(1) 
170

 
352

 
—

 
522

 
10

 
6/27/2013
 
1990


F-67

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Burger King
 
 Rockingham
 
 NC
 
—

 
430

 
1,171

 
—

 
1,601

 
32

 
6/27/2013
 
1980
 Burger King
 
 Edison
 
 NJ
 
—

(1) 
480

 
1,075

 
—

 
1,555

 
30

 
6/27/2013
 
1985
 Burger King
 
 Manahawkin
 
 NJ
 
—

(1) 
310

 
748

 
—

 
1,058

 
21

 
6/27/2013
 
1980
 Burger King
 
 Elko
 
 NV
 
—

(1) 
260

 
1,001

 
—

 
1,261

 
28

 
6/27/2013
 
1982
 Burger King
 
 Albany
 
 NY
 
—

(1) 
330

 
850

 
—

 
1,180

 
24

 
6/27/2013
 
1980
 Burger King
 
 Central Square
 
 NY
 
—

(1) 
500

 
1,189

 
—

 
1,689

 
33

 
6/27/2013
 
1992
 Burger King
 
 Cohoes
 
 NY
 
—

(1) 
270

 
563

 
—

 
833

 
16

 
6/27/2013
 
1989
 Burger King
 
 Montgomery
 
 NY
 
—

(1) 
480

 
1,042

 
—

 
1,522

 
29

 
6/27/2013
 
1981
 Burger King
 
 Schenectady
 
 NY
 
—

(1) 
380

 
936

 
—

 
1,316

 
26

 
6/27/2013
 
1984
 Burger King
 
 Willoughby
 
 OH
 
—

(1) 
410

 
1,005

 
—

 
1,415

 
28

 
6/27/2013
 
1980
 Burger King
 
 Ardmore
 
 OK
 
—

(1) 
270

 
1,023

 
—

 
1,293

 
28

 
6/27/2013
 
1979
 Burger King
 
 Corvallis
 
 OR
 
—

(1) 
170

 
195

 
—

 
365

 
5

 
6/27/2013
 
1977
 Burger King
 
 Roseburg
 
 OR
 
—

(1) 
350

 
886

 
—

 
1,236

 
25

 
6/27/2013
 
1981
 Burger King
 
 Old Forge
 
 PA
 
—

(1) 
390

 
905

 
—

 
1,295

 
25

 
6/27/2013
 
1977
 Burger King
 
 Gaffney
 
 SC
 
—

(1) 
370

 
880

 
—

 
1,250

 
24

 
6/27/2013
 
1979
 Burger King
 
 Greenville
 
 SC
 
—

(1) 
420

 
571

 
—

 
991

 
16

 
6/27/2013
 
1982
 Burger King
 
 Chattanooga
 
 TN
 
—

(1) 
740

 
1,591

 
—

 
2,331

 
44

 
6/27/2013
 
1997
 Burger King
 
 Cleburne
 
 TX
 
—

(1) 
300

 
603

 
—

 
903

 
17

 
6/27/2013
 
1985
 Burger King
 
 Bluefield
 
 WV
 
—

(1) 
210

 
1,163

 
—

 
1,373

 
32

 
6/27/2013
 
1982
 Cadbury Holdings Limited
 
 Whippany
 
 NJ
 
31,793

 
2,767

 
38,018

 
—

 
40,785

 
304

 
11/5/2013
 
2005
 Capital One Financial Corporation
 
 Plano
 
 TX
 
—

(2) 
5,175

 
14,234

 
191

 
19,600

 
298

 
11/5/2013
 
2005
 Captain D's
 
 Statesboro
 
 GA
 
—

(1) 
350

 
401

 
—

 
751

 
11

 
6/27/2013
 
1974
 Captain D's
 
 Southaven
 
 MS
 
—

(1) 
270

 
564

 
—

 
834

 
16

 
6/27/2013
 
1992
 Captain D's
 
 Memphis
 
 TN
 
—

(1) 
230

 
338

 
—

 
568

 
9

 
6/27/2013
 
2000
 Captain D's
 
 Dallas
 
 TX
 
—

(1) 
160

 
535

 
—

 
695

 
15

 
6/27/2013
 
1979
 Captain D's
 
 Grand Prairie
 
 TX
 
—

(1) 
260

 
338

 
—

 
598

 
9

 
6/27/2013
 
1987
 Caribou Coffee
 
 Grosse Pointe Woods
 
 MI
 
—

(1) 
140

 
1,046

 
—

 
1,186

 
29

 
6/27/2013
 
1982
 Carlos O'Kelly's
 
 Mason City
 
 IA
 
—

(1) 
290

 
1,255

 
—

 
1,545

 
36

 
6/27/2013
 
1955
 Carlos O'Kelly's
 
 Bloomington
 
 IL
 
—

(1) 
270

 
1,375

 
—

 
1,645

 
39

 
6/27/2013
 
1990
 Carlos O'Kelly's
 
 Springfield
 
 MO
 
—

(1) 
840

 
730

 
—

 
1,570

 
21

 
6/27/2013
 
1992
 Charleston's
 
 Carmel
 
 IN
 
—

(1) 
140

 
3,016

 
—

 
3,156

 
86

 
6/27/2013
 
1999

F-68

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Check City
 
 Taylorsville
 
 UT
 
—

(1) 
180

 
953

 
—

 
1,133

 
27

 
6/27/2013
 
1997
 Checkers
 
 Huntsville
 
 AL
 
—

(1) 
689

 
—

 
—

 
689

 
—

 
6/27/2013
 
1993
 Checkers
 
 Hollywood
 
 FL
 
—

(1) 
160

 
2,220

 
—

 
2,380

 
64

 
6/27/2013
 
1993
 Checkers
 
 Lauderhill
 
 FL
 
—

(1) 
280

 
1,951

 
—

 
2,231

 
56

 
6/27/2013
 
1996
 Checkers
 
 Plantation
 
 FL
 
—

(1) 
220

 
1,461

 
—

 
1,681

 
42

 
6/27/2013
 
1994
 Checkers
 
 Fayetteville
 
 GA
 
—

(1) 
681

 
—

 
—

 
681

 
—

 
6/27/2013
 
1992
 Chevys
 
 Greenbelt
 
 MD
 
—

(1) 
530

 
2,399

 
—

 
2,929

 
69

 
6/27/2013
 
1994
 Chevys
 
 Lake Oswego
 
 OR
 
—

(1) 
590

 
1,693

 
—

 
2,283

 
49

 
6/27/2013
 
1995
 Chili's
 
 Fayetteville
 
 AR
 
—

(1) 
1,370

 
1,714

 
—

 
3,084

 
49

 
6/27/2013
 
1991
 Chili's
 
 Boise
 
 ID
 
—

(1) 
400

 
751

 
—

 
1,151

 
22

 
6/27/2013
 
1992
 Chili's
 
 Riverdale
 
 UT
 
—

(1) 
800

 
899

 
—

 
1,699

 
26

 
6/27/2013
 
1993
 Chili's
 
 Cheyenne
 
 WY
 
—

(1) 
270

 
815

 
—

 
1,085

 
23

 
6/27/2013
 
1994
 Chipper's Grill
 
 Streator
 
 IL
 
—

(1) 
190

 
255

 
—

 
445

 
7

 
6/27/2013
 
1988
 Cimarex Energy Company
 
 Tulsa
 
 OK
 
30,676

 
2,802

 
68,732

 
—

 
71,534

 
550

 
11/5/2013
 
In process
 Circle K
 
 Phoenix
 
 AZ
 
—

(1) 
344

 
1,377

 
—

 
1,721

 
129

 
5/4/2012
 
1986
 Circle K
 
 Martinez
 
 GA
 
—

(1) 
348

 
813

 
—

 
1,161

 
61

 
8/28/2012
 
2003
 Circle K
 
 Akron
 
 OH
 
—

(1) 
675

 
1,254

 
—

 
1,929

 
88

 
9/27/2012
 
1996
 Citizens Bank
 
 Colchester
 
 CT
 
—

(1) 
185

 
1,049

 
—

 
1,234

 
70

 
9/26/2012
 
1981
 Citizens Bank
 
 Deep River
 
 CT
 
—

(1) 
453

 
1,812

 
—

 
2,265

 
121

 
9/26/2012
 
1851
 Citizens Bank
 
 East Hampton
 
 CT
 
—

(7) 
312

 
935

 
—

 
1,247

 
84

 
4/26/2012
 
1984
 Citizens Bank
 
 East Lyme
 
 CT
 
—

(1) 
258

 
1,032

 
—

 
1,290

 
69

 
9/26/2012
 
1972
 Citizens Bank
 
 Hamden
 
 CT
 
—

(1) 
581

 
475

 
—

 
1,056

 
32

 
9/26/2012
 
1893
 Citizens Bank
 
 Higganum
 
 CT
 
—

(9) 
171

 
971

 
—

 
1,142

 
219

 
10/1/2008
 
1983
 Citizens Bank
 
 Montville
 
 CT
 
—

(1) 
413

 
2,342

 
—

 
2,755

 
157

 
9/26/2012
 
1984
 Citizens Bank
 
 New London
 
 CT
 
—

(1) 
94

 
534

 
—

 
628

 
121

 
10/1/2008
 
1900
 Citizens Bank
 
 Stonington
 
 CT
 
—

(1) 
104

 
937

 
—

 
1,041

 
54

 
12/14/2012
 
1982
 Citizens Bank
 
 Stonington
 
 CT
 
—

(1) 
190

 
1,079

 
—

 
1,269

 
72

 
9/26/2012
 
1960
 Citizens Bank
 
 Lewes
 
 DE
 
—

(1) 
102

 
916

 
—

 
1,018

 
41

 
2/22/2013
 
1968
 Citizens Bank
 
 Smyrna
 
 DE
 
—

(9) 
183

 
1,036

 
—

 
1,219

 
215

 
3/1/2009
 
1940
 Citizens Bank
 
 Wilmington
 
 DE
 
—

(7) 
250

 
464

 
—

 
714

 
41

 
4/26/2012
 
1950
 Citizens Bank
 
 Wilmington
 
 DE
 
—

(7) 
299

 
299

 
—

 
598

 
27

 
4/26/2012
 
1981
 Citizens Bank
 
 Alsip
 
 IL
 
—

(1) 
226

 
1,280

 
—

 
1,506

 
289

 
10/1/2008
 
1981

F-69

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Citizens Bank
 
 Calumet City
 
 IL
 
—

(7) 
168

 
393

 
—

 
561

 
35

 
4/26/2012
 
1975
 Citizens Bank
 
 Chicago
 
 IL
 
—

(7) 
189

 
81

 
—

 
270

 
7

 
4/26/2012
 
1990
 Citizens Bank
 
 Chicago
 
 IL
 
—

(1) 
267

 
1,511

 
—

 
1,778

 
341

 
10/1/2008
 
1923
 Citizens Bank
 
 Chicago
 
 IL
 
—

(1) 
191

 
1,082

 
—

 
1,273

 
244

 
10/1/2008
 
1979
 Citizens Bank
 
 Elmwood Park
 
 IL
 
—

(1) 
431

 
2,441

 
—

 
2,872

 
481

 
6/1/2009
 
1977
 Citizens Bank
 
 Evergreen Park
 
 IL
 
—

(1) 
167

 
944

 
—

 
1,111

 
213

 
10/1/2008
 
1982
 Citizens Bank
 
 Lyons
 
 IL
 
—

(1) 
214

 
1,212

 
—

 
1,426

 
274

 
10/1/2008
 
1957
 Citizens Bank
 
 Olympia Fields
 
 IL
 
—

(7) 
426

 
1,704

 
—

 
2,130

 
152

 
4/26/2012
 
1974
 Citizens Bank
 
 Wilmington
 
 IL
 
—

(1) 
330

 
1,872

 
—

 
2,202

 
349

 
9/1/2009
 
1964
 Citizens Bank
 
 Dorchester
 
 MA
 
—

 
386

 
386

 
—

 
772

 
34

 
4/26/2012
 
1960
 Citizens Bank
 
 Ludlow
 
 MA
 
—

(1) 
810

 
540

 
—

 
1,350

 
36

 
9/26/2012
 
1948
 Citizens Bank
 
 Malden
 
 MA
 
—

(1) 
488

 
596

 
—

 
1,084

 
40

 
9/26/2012
 
1920
 Citizens Bank
 
 Malden
 
 MA
 
—

 
484

 
1,935

 
—

 
2,419

 
130

 
9/26/2012
 
1988
 Citizens Bank
 
 Medford
 
 MA
 
—

 
589

 
1,094

 
—

 
1,683

 
73

 
9/26/2012
 
1938
 Citizens Bank
 
 New Bedford
 
 MA
 
—

(1) 
297

 
694

 
—

 
991

 
46

 
9/26/2012
 
1983
 Citizens Bank
 
 Randolph
 
 MA
 
—

 
480

 
1,439

 
—

 
1,919

 
96

 
9/26/2012
 
1979
 Citizens Bank
 
 Somerville
 
 MA
 
—

(1) 
561

 
561

 
—

 
1,122

 
38

 
9/26/2012
 
1940
 Citizens Bank
 
 South Dennis
 
 MA
 
—

(1) 
—

 
1,294

 
—

 
1,294

 
75

 
12/14/2012
 
1986
 Citizens Bank
 
 Springfield
 
 MA
 
—

(1) 
187

 
747

 
—

 
934

 
27

 
5/10/2013
 
1975
 Citizens Bank
 
 Tewksbury
 
 MA
 
—

(7) 
266

 
1,063

 
—

 
1,329

 
95

 
4/26/2012
 
1998
 Citizens Bank
 
 Watertown
 
 MA
 
—

(1) 
443

 
542

 
—

 
985

 
36

 
9/26/2012
 
1950
 Citizens Bank
 
 Wilbraham
 
 MA
 
—

(7) 
148

 
591

 
—

 
739

 
53

 
4/26/2012
 
1967
 Citizens Bank
 
 Winthrop
 
 MA
 
—

(1) 
390

 
724

 
—

 
1,114

 
48

 
9/26/2012
 
1974
 Citizens Bank
 
 Woburn
 
 MA
 
—

(1) 
350

 
816

 
—

 
1,166

 
47

 
12/14/2012
 
1991


F-70

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Citizens Bank
 
 Clinton Township
 
 MI
 
—

(1) 
574

 
3,250

 
—

 
3,824

 
746

 
9/1/2008
 
1970
 Citizens Bank
 
 Dearborn
 
 MI
 
—

(1) 
434

 
2,461

 
—

 
2,895

 
459

 
9/1/2009
 
1977
 Citizens Bank
 
 Dearborn
 
 MI
 
—

(1) 
385

 
2,184

 
—

 
2,569

 
407

 
9/1/2009
 
1974
 Citizens Bank
 
 Detroit
 
 MI
 
—

(1) 
112

 
636

 
—

 
748

 
148

 
8/1/2008
 
1958
 Citizens Bank
 
 Detroit
 
 MI
 
—

(1) 
204

 
1,159

 
—

 
1,363

 
270

 
8/1/2008
 
1956
 Citizens Bank
 
 Grosse Pointe
 
 MI
 
—

(1) 
410

 
2,322

 
—

 
2,732

 
508

 
12/1/2008
 
1975
 Citizens Bank
 
 Harper Woods
 
 MI
 
—

(1) 
207

 
1,171

 
—

 
1,378

 
273

 
8/1/2008
 
1983
 Citizens Bank
 
 Highland Park
 
 MI
 
—

(1) 
150

 
848

 
—

 
998

 
198

 
8/1/2008
 
1967
 Citizens Bank
 
 Lathrup Village
 
 MI
 
—

(1) 
283

 
1,602

 
—

 
1,885

 
362

 
10/1/2008
 
1980
 Citizens Bank
 
 Livonia
 
 MI
 
—

(1) 
261

 
1,476

 
—

 
1,737

 
344

 
8/1/2008
 
1959
 Citizens Bank
 
 Richmond
 
 MI
 
—

(1) 
168

 
951

 
—

 
1,119

 
222

 
8/1/2008
 
1980
 Citizens Bank
 
 Southfield
 
 MI
 
—

(1) 
283

 
1,605

 
—

 
1,888

 
368

 
9/1/2008
 
1975
 Citizens Bank
 
 St. Clair Shores
 
 MI
 
—

(1) 
309

 
1,748

 
—

 
2,057

 
407

 
8/1/2008
 
1961
 Citizens Bank
 
 Utica
 
 MI
 
—

(1) 
376

 
2,133

 
—

 
2,509

 
466

 
12/1/2008
 
1982
 Citizens Bank
 
 Warren
 
 MI
 
—

(1) 
178

 
1,009

 
—

 
1,187

 
228

 
10/1/2008
 
1963
 Citizens Bank
 
 Keene
 
 NH
 
—

 
132

 
2,511

 
—

 
2,643

 
146

 
12/14/2012
 
1900
 Citizens Bank
 
 Manchester
 
 NH
 
—

(1) 
—

 
1,568

 
—

 
1,568

 
91

 
12/14/2012
 
1985
 Citizens Bank
 
 Manchester
 
 NH
 
—

(1) 
640

 
782

 
—

 
1,422

 
52

 
9/26/2012
 
1941
 Citizens Bank
 
 Ossipee
 
 NH
 
—

(7) 
176

 
264

 
—

 
440

 
24

 
4/26/2012
 
1980
 Citizens Bank
 
 Pelham
 
 NH
 
—

(7) 
113

 
340

 
—

 
453

 
30

 
4/26/2012
 
1983
 Citizens Bank
 
 Pittsfield
 
 NH
 
—

(1) 
160

 
908

 
—

 
1,068

 
205

 
10/1/2008
 
1976
 Citizens Bank
 
 Rollinsford
 
 NH
 
—

(1) 
78

 
444

 
—

 
522

 
100

 
10/1/2008
 
1977
 Citizens Bank
 
 Salem
 
 NH
 
—

(1) 
328

 
1,312

 
—

 
1,640

 
76

 
12/14/2012
 
1980
 Citizens Bank
 
 Haddon Heights
 
 NJ
 
—

(1) 
316

 
948

 
—

 
1,264

 
21

 
7/23/2013
 
1960
 Citizens Bank
 
 Marlton
 
 NJ
 
—

(7) 
444

 
825

 
—

 
1,269

 
74

 
4/26/2012
 
1988
 Citizens Bank
 
 Albany
 
 NY
 
—

(9) 
232

 
1,315

 
—

 
1,547

 
245

 
9/1/2009
 
1994
 Citizens Bank
 
 Amherst (Buffalo)
 
 NY
 
—

(9) 
238

 
1,348

 
—

 
1,586

 
266

 
6/1/2009
 
1995
 Citizens Bank
 
 East Aurora
 
 NY
 
—

(9) 
162

 
919

 
—

 
1,081

 
181

 
6/1/2009
 
1996
 Citizens Bank
 
 Greene
 
 NY
 
—

(9) 
216

 
1,227

 
—

 
1,443

 
229

 
9/1/2009
 
1994
 Citizens Bank
 
 Johnstown
 
 NY
 
—

(9) 
163

 
923

 
—

 
1,086

 
172

 
9/1/2009
 
1994
 Citizens Bank
 
 Port Jervis
 
 NY
 
—

(9) 
143

 
811

 
—

 
954

 
169

 
3/1/2009
 
1964
 Citizens Bank
 
 Rochester
 
 NY
 
—

(9) 
166

 
943

 
—

 
1,109

 
186

 
6/1/2009
 
1962

F-71

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Citizens Bank
 
 Schenectady
 
 NY
 
—

(9) 
292

 
1,655

 
—

 
1,947

 
309

 
9/1/2009
 
1994
 Citizens Bank
 
 Vails Gate
 
 NY
 
—

(9) 
284

 
1,610

 
—

 
1,894

 
300

 
9/1/2009
 
1968
 Citizens Bank
 
 Whitesboro
 
 NY
 
—

(9) 
130

 
739

 
—

 
869

 
138

 
9/1/2009
 
1994
 Citizens Bank
 
 Alliance
 
 OH
 
—

(1) 
204

 
1,156

 
—

 
1,360

 
274

 
7/1/2008
 
1972
 Citizens Bank
 
 Bedford
 
 OH
 
—

(7) 
175

 
699

 
—

 
874

 
62

 
4/26/2012
 
2005
 Citizens Bank
 
 Boardman
 
 OH
 
—

(1) 
280

 
1,589

 
—

 
1,869

 
376

 
7/1/2008
 
1984
 Citizens Bank
 
 Broadview Heights
 
 OH
 
—

(1) 
201

 
1,140

 
—

 
1,341

 
237

 
3/1/2009
 
2000
 Citizens Bank
 
 Brunswick
 
 OH
 
—

(1) 
186

 
1,057

 
—

 
1,243

 
250

 
7/1/2008
 
2004
 Citizens Bank
 
 Cleveland
 
 OH
 
—

(1) 
239

 
1,357

 
—

 
1,596

 
321

 
7/1/2008
 
2003
 Citizens Bank
 
 Cleveland
 
 OH
 
—

(1) 
210

 
1,190

 
—

 
1,400

 
282

 
7/1/2008
 
1950
 Citizens Bank
 
 Cleveland
 
 OH
 
—

(1) 
182

 
1,031

 
—

 
1,213

 
244

 
7/1/2008
 
1960
 Citizens Bank
 
 Fairlawn
 
 OH
 
—

 
511

 
2,045

 
—

 
2,556

 
119

 
12/14/2012
 
1979
 Citizens Bank
 
 Lakewood
 
 OH
 
—

(1) 
196

 
1,111

 
—

 
1,307

 
207

 
9/1/2009
 
1965
 Citizens Bank
 
 Louisville
 
 OH
 
—

(1) 
191

 
1,080

 
—

 
1,271

 
255

 
7/1/2008
 
1960
 Citizens Bank
 
 Massillon
 
 OH
 
—

(1) 
287

 
1,624

 
—

 
1,911

 
384

 
7/1/2008
 
1976
 Citizens Bank
 
 Massillon
 
 OH
 
—

(1) 
212

 
1,202

 
—

 
1,414

 
284

 
7/1/2008
 
1958
 Citizens Bank
 
 Mentor
 
 OH
 
—

(1) 
178

 
1,011

 
—

 
1,189

 
228

 
10/1/2008
 
1976
 Citizens Bank
 
 Northfield
 
 OH
 
—

(1) 
317

 
1,797

 
—

 
2,114

 
406

 
10/1/2008
 
1960
 Citizens Bank
 
 Parma
 
 OH
 
—

(7) 
248

 
744

 
—

 
992

 
66

 
4/26/2012
 
1972
 Citizens Bank
 
 Parma
 
 OH
 
—

(1) 
475

 
581

 
—

 
1,056

 
34

 
12/14/2012
 
1971
 Citizens Bank
 
 Rocky River
 
 OH
 
—

(1) 
283

 
1,602

 
—

 
1,885

 
299

 
9/1/2009
 
1965
 Citizens Bank
 
 South Russell
 
 OH
 
—

(1) 
106

 
957

 
—

 
1,063

 
56

 
12/14/2012
 
1981
 Citizens Bank
 
 Wadsworth
 
 OH
 
—

(1) 
158

 
893

 
—

 
1,051

 
211

 
7/1/2008
 
1994
 Citizens Bank
 
 Willoughby
 
 OH
 
—

(1) 
395

 
2,239

 
—

 
2,634

 
506

 
10/1/2008
 
1920
 Citizens Bank
 
 Allison Park
 
 PA
 
—

(1) 
314

 
733

 
—

 
1,047

 
49

 
9/26/2012
 
1972
 Citizens Bank
 
 Altoona
 
 PA
 
—

(1) 
153

 
459

 
—

 
612

 
27

 
12/14/2012
 
1971
 Citizens Bank
 
 Ambridge
 
 PA
 
—

(9) 
215

 
1,217

 
—

 
1,432

 
227

 
9/1/2009
 
1925
 Citizens Bank
 
 Ashley
 
 PA
 
—

(1) 
225

 
675

 
—

 
900

 
39

 
12/14/2012
 
1928
 Citizens Bank
 
 Beaver Falls
 
 PA
 
—

(1) 
138

 
553

 
—

 
691

 
37

 
9/26/2012
 
1968
 Citizens Bank
 
 Carlisle
 
 PA
 
—

(7) 
234

 
546

 
—

 
780

 
49

 
4/26/2012
 
1960+
 Citizens Bank
 
 Dallas
 
 PA
 
—

(1) 
213

 
1,205

 
—

 
1,418

 
81

 
9/26/2012
 
1949
 Citizens Bank
 
 Dillsburg
 
 PA
 
—

(1) 
232

 
926

 
—

 
1,158

 
54

 
12/14/2012
 
1935

F-72

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Citizens Bank
 
 Drexel Hill
 
 PA
 
—

(1) 
266

 
1,064

 
—

 
1,330

 
62

 
12/14/2012
 
1950
 Citizens Bank
 
 Erie
 
 PA
 
—

(1) 
168

 
671

 
—

 
839

 
39

 
12/14/2012
 
1954
 Citizens Bank
 
 Glenside
 
 PA
 
—

 
343

 
1,370

 
—

 
1,713

 
43

 
5/22/2013
 
1958
 Citizens Bank
 
 Grove City
 
 PA
 
—

(7) 
292

 
239

 
—

 
531

 
21

 
4/26/2012
 
1977
 Citizens Bank
 
 Grove City
 
 PA
 
—

(7) 
41

 
782

 
—

 
823

 
70

 
4/26/2012
 
1920
 Citizens Bank
 
 Harrisburg
 
 PA
 
—

(7) 
512

 
419

 
—

 
931

 
37

 
4/26/2012
 
1967
 Citizens Bank
 
 Havertown
 
 PA
 
—

(1) 
219

 
875

 
—

 
1,094

 
59

 
9/26/2012
 
2003
 Citizens Bank
 
 Homestead
 
 PA
 
—

(1) 
202

 
807

 
—

 
1,009

 
54

 
9/26/2012
 
1960
 Citizens Bank
 
 Kingston
 
 PA
 
—

(1) 
404

 
943

 
—

 
1,347

 
55

 
12/14/2012
 
1977
 Citizens Bank
 
 Kutztown
 
 PA
 
—

(7) 
81

 
725

 
—

 
806

 
65

 
5/11/2012
 
1974
 Citizens Bank
 
 Lancaster
 
 PA
 
—

(7) 
368

 
552

 
—

 
920

 
49

 
4/26/2012
 
1965
 Citizens Bank
 
 Lancaster
 
 PA
 
—

(1) 
383

 
468

 
—

 
851

 
31

 
9/26/2012
 
1967
 Citizens Bank
 
 Latrobe
 
 PA
 
—

(1) 
148

 
591

 
—

 
739

 
34

 
12/14/2012
 
1969
 Citizens Bank
 
 Lititz
 
 PA
 
—

(7) 
37

 
708

 
—

 
745

 
63

 
4/26/2012
 
1964
 Citizens Bank
 
 Lower Burrell
 
 PA
 
—

(1) 
180

 
722

 
—

 
902

 
42

 
12/14/2012
 
1980
 Citizens Bank
 
 Mechanicsburg
 
 PA
 
—

 
288

 
2,590

 
—

 
2,878

 
174

 
9/26/2012
 
1900
 Citizens Bank
 
 Mercer
 
 PA
 
—

(1) 
105

 
314

 
—

 
419

 
18

 
12/14/2012
 
1964
 Citizens Bank
 
 Metamoras
 
 PA
 
—

(1) 
509

 
946

 
—

 
1,455

 
55

 
12/14/2012
 
1920
 Citizens Bank
 
 Milford
 
 PA
 
—

(1) 
513

 
769

 
—

 
1,282

 
45

 
12/14/2012
 
1981
 Citizens Bank
 
 Monesson
 
 PA
 
—

(9) 
198

 
1,123

 
—

 
1,321

 
209

 
9/1/2009
 
1930
 Citizens Bank
 
 Mount Lebanon
 
 PA
 
—

 
215

 
1,939

 
—

 
2,154

 
130

 
9/26/2012
 
1960
 Citizens Bank
 
 Mountain Top
 
 PA
 
—

(1) 
111

 
631

 
—

 
742

 
37

 
12/14/2012
 
1980
 Citizens Bank
 
 Munhall
 
 PA
 
—

(7) 
191

 
191

 
—

 
382

 
17

 
4/26/2012
 
1973
 Citizens Bank
 
 Narberth
 
 PA
 
—

(9) 
420

 
2,381

 
—

 
2,801

 
548

 
9/1/2009
 
1935
 Citizens Bank
 
 New Stanton
 
 PA
 
—

(7) 
330

 
612

 
—

 
942

 
55

 
4/26/2012
 
1975
 Citizens Bank
 
 Oakmont
 
 PA
 
—

(1) 
199

 
1,127

 
—

 
1,326

 
65

 
12/14/2012
 
1967
 Citizens Bank
 
 Philadelphia
 
 PA
 
—

(7) 
184

 
735

 
—

 
919

 
66

 
4/26/2012
 
1904

F-73

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Citizens Bank
 
 Philadelphia
 
 PA
 
—

(1) 
127

 
722

 
—

 
849

 
42

 
12/14/2012
 
1920
 Citizens Bank
 
 Pittsburgh
 
 PA
 
—

(1) 
185

 
1,051

 
—

 
1,236

 
61

 
12/14/2012
 
1960
 Citizens Bank
 
 Pittsburgh
 
 PA
 
—

(1) 
389

 
1,168

 
—

 
1,557

 
68

 
12/14/2012
 
1940
 Citizens Bank
 
 Pittsburgh
 
 PA
 
—

(1) 
146

 
2,770

 
—

 
2,916

 
161

 
12/14/2012
 
1900
 Citizens Bank
 
 Pittsburgh
 
 PA
 
—

 
470

 
2,661

 
—

 
3,131

 
154

 
12/14/2012
 
1980
 Citizens Bank
 
 Pittsburgh
 
 PA
 
—

(1) 
215

 
1,219

 
—

 
1,434

 
82

 
9/26/2012
 
1970
 Citizens Bank
 
 Pittsburgh
 
 PA
 
—

(1) 
256

 
767

 
—

 
1,023

 
51

 
9/26/2012
 
1970
 Citizens Bank
 
 Shippensburg
 
 PA
 
—

(7) 
143

 
429

 
—

 
572

 
38

 
4/26/2012
 
1985
 Citizens Bank
 
 Slovan
 
 PA
 
—

(7) 
217

 
117

 
—

 
334

 
10

 
4/26/2012
 
1975
 Citizens Bank
 
 State College
 
 PA
 
—

(7) 
256

 
475

 
—

 
731

 
42

 
4/26/2012
 
1966
 Citizens Bank
 
 Temple
 
 PA
 
—

(1) 
268

 
626

 
—

 
894

 
42

 
9/26/2012
 
1936
 Citizens Bank
 
 Turtle Creek
 
 PA
 
—

(1) 
308

 
923

 
—

 
1,231

 
62

 
9/26/2012
 
1970
 Citizens Bank
 
 Tyrone
 
 PA
 
—

(1) 
146

 
583

 
—

 
729

 
34

 
12/14/2012
 
1967
 Citizens Bank
 
 Upper Darby
 
 PA
 
—

(1) 
411

 
617

 
—

 
1,028

 
36

 
12/14/2012
 
1966
 Citizens Bank
 
 Verona
 
 PA
 
—

(7) 
264

 
616

 
—

 
880

 
55

 
4/26/2012
 
1972
 Citizens Bank
 
 West Grove
 
 PA
 
—

(7) 
181

 
725

 
—

 
906

 
65

 
4/26/2012
 
1980
 Citizens Bank
 
 West Hazelton
 
 PA
 
—

(1) 
279

 
2,509

 
—

 
2,788

 
168

 
9/26/2012
 
1900
 Citizens Bank
 
 York
 
 PA
 
—

(7) 
337

 
626

 
—

 
963

 
56

 
4/26/2012
 
1955
 Citizens Bank
 
 Coventry
 
 RI
 
—

(1) 
559

 
559

 
—

 
1,118

 
37

 
9/26/2012
 
1968
 Citizens Bank
 
 Johnston
 
 RI
 
—

(1) 
343

 
1,030

 
—

 
1,373

 
69

 
9/26/2012
 
1972
 Citizens Bank
 
 North Providence
 
 RI
 
—

 
200

 
1,800

 
—

 
2,000

 
96

 
12/31/2012
 
1971
 Citizens Bank
 
 Wakefield
 
 RI
 
—

(1) 
517

 
959

 
—

 
1,476

 
64

 
9/26/2012
 
1976
 Citizens Bank
 
 Warren
 
 RI
 
—

(1) 
328

 
609

 
—

 
937

 
41

 
9/26/2012
 
1980
 Citizens Bank
 
 Warwick
 
 RI
 
—

(1) 
1,570

 
5,544

 
—

 
7,114

 
67

 
9/24/2013
 
1996
 Citizens Bank
 
 Warwick
 
 RI
 
—

(1) 
1,870

 
9,662

 
—

 
11,532

 
117

 
9/24/2013
 
1995
 Citizens Bank
 
 Middlebury
 
 VT
 
—

(1) 
363

 
544

 
—

 
907

 
32

 
12/14/2012
 
1969
 Citizens Bank
 
 Poultney
 
 VT
 
—

(1) 
149

 
847

 
—

 
996

 
176

 
3/1/2009
 
1860
 Citizens Bank
 
 St. Albans
 
 VT
 
—

(1) 
141

 
798

 
—

 
939

 
166

 
3/1/2009
 
1989
 Citizens Bank
 
 White River Junction
 
 VT
 
—

(1) 
183

 
1,039

 
—

 
1,222

 
216

 
3/1/2009
 
1975
 Comcast Corporation
 
 Englewood
 
 CO
 
—

 
1,490

 
5,060

 
—

 
6,550

 
45

 
11/5/2013
 
2011
 Community Bank
 
 Whitehall
 
 NY
 
—

(9) 
106

 
600

 
—

 
706

 
112

 
9/1/2009
 
1950
 Community National Bank
 
 Lake Mary
 
 FL
 
—

 
1,230

 
1,504

 
—

 
2,734

 
20

 
10/1/2013
 
1990

F-74

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Cooper Tire & Rubber Company
 
 Franklin
 
 IN
 
16.998

 
4,438

 
33,994

 
—

 
38,432

 
346

 
11/5/2013
 
2009
 County of Yolo, California
 
 Woodland
 
 CA
 
10.332

 
2,640

 
13,681

 
—

 
16,321

 
108

 
11/5/2013
 
2001
 Cracker Barrel
 
 Braselton
 
 GA
 
—

 
1,294

 
2,403

 
—

 
3,697

 
197

 
11/13/2012
 
2005
 Cracker Barrel
 
 Bremen
 
 GA
 
—

 
1,012

 
2,361

 
—

 
3,373

 
194

 
11/13/2012
 
2006
 Cracker Barrel
 
 Mebane
 
 NC
 
—

 
1,106

 
2,054

 
—

 
3,160

 
169

 
11/13/2012
 
2004
 Cracker Barrel
 
 Emporia
 
 VA
 
—

 
972

 
2,267

 
—

 
3,239

 
186

 
11/13/2012
 
2004
 Cracker Barrel
 
 Woodstock
 
 VA
 
—

 
928

 
2,164

 
—

 
3,092

 
178

 
11/13/2012
 
2005
 Crozer-Keystone Health System
 
 Ridley Park
 
 PA
 
2.332

 
—

 
6,114

 
—

 
6,114

 
51

 
11/5/2013
 
2004
 CVS
 
 Phoenix
 
 AZ
 
—

 
1,511

 
4,533

 
—

 
6,044

 
68

 
10/1/2013
 
2012
 CVS
 
 Phoenix
 
 AZ
 
—

 
901

 
2,704

 
—

 
3,605

 
41

 
10/1/2013
 
2012
 CVS
 
 Fresno
 
 CA
 
—

 
1,890

 
4,409

 
—

 
6,299

 
66

 
10/1/2013
 
2012
 CVS
 
 Palmdale
 
 CA
 
—

 
2,493

 
4,630

 
—

 
7,123

 
69

 
10/1/2013
 
2012
 CVS
 
 Sacramento
 
 CA
 
—

 
2,163

 
4,016

 
—

 
6,179

 
60

 
10/1/2013
 
2012
 CVS
 
 Norwich
 
 CT
 
—

 
1,998

 
5,995

 
—

 
7,993

 
90

 
10/1/2013
 
2011
 CVS
 
 Lakeland
 
 FL
 
—

 
587

 
2,347

 
—

 
2,934

 
35

 
10/1/2013
 
2012
 CVS
 
 St. Cloud
 
 FL
 
—

 
1,534

 
1,875

 
—

 
3,409

 
84

 
4/12/2013
 
2002
 CVS
 
 Alpharetta
 
 GA
 
—

(1) 
572

 
858

 
—

 
1,430

 
64

 
9/28/2012
 
1994
 CVS
 
 Stockbridge
 
 GA
 
—

(1) 
855

 
1,283

 
—

 
2,138

 
64

 
2/28/2013
 
1998
 CVS
 
 Vidalia
 
 GA
 
—

(1) 
368

 
1,105

 
—

 
1,473

 
83

 
9/28/2012
 
2000
 CVS
 
 Franklin
 
 IN
 
—

(1) 
310

 
2,787

 
—

 
3,097

 
293

 
3/29/2012
 
1999
 CVS
 
 Mandeville
 
 LA
 
—

 
2,385

 
2,915

 
—

 
5,300

 
44

 
10/1/2013
 
2012
 CVS
 
 Metairie
 
 LA
 
—

 
1,895

 
3,519

 
—

 
5,414

 
53

 
10/1/2013
 
2012
 CVS
 
 New Orleans
 
 LA
 
—

 
2,439

 
2,439

 
—

 
4,878

 
37

 
10/1/2013
 
2012
 CVS
 
 Slidell
 
 LA
 
—

 
1,142

 
4,568

 
—

 
5,710

 
69

 
10/1/2013
 
2012
 CVS
 
 Hingham
 
 MA
 
—

 
1,873

 
5,619

 
—

 
7,492

 
84

 
10/1/2013
 
2012
 CVS
 
 Malden
 
 MA
 
—

 
1,757

 
5,271

 
—

 
7,028

 
79

 
10/1/2013
 
2012
 CVS
 
 Detroit
 
 MI
 
—

(1) 
270

 
2,427

 
—

 
2,697

 
121

 
2/28/2013
 
1999
 CVS
 
 Harper Woods
 
 MI
 
—

(1) 
499

 
2,829

 
—

 
3,328

 
141

 
2/28/2013
 
1999
 CVS
 
 St. Joseph
 
 MO
 
—

 
1,022

 
3,067

 
—

 
4,089

 
46

 
10/1/2013
 
2012
 CVS
 
 Beaufort
 
 NC
 
—

 
378

 
3,404

 
—

 
3,782

 
51

 
10/1/2013
 
2011
 CVS
 
 Albuquerque
 
 NM
 
—

 
975

 
3,899

 
—

 
4,874

 
58

 
10/1/2013
 
2011

F-75

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 CVS
 
 Albuquerque
 
 NM
 
—

 
1,029

 
4,118

 
—

 
5,147

 
62

 
10/1/2013
 
2011
 CVS
 
 Las Cruces
 
 NM
 
—

 
1,295

 
5,178

 
—

 
6,473

 
78

 
10/1/2013
 
2012
 CVS
 
 Las Vegas
 
 NV
 
—

 
1,374

 
3,207

 
—

 
4,581

 
257

 
8/22/2012
 
2004
 CVS
 
 Rochester
 
 NY
 
—

(1) 
965

 
1,180

 
—

 
2,145

 
83

 
11/8/2012
 
1997
 CVS
 
 Tulsa
 
 OK
 
—

 
950

 
2,216

 
—

 
3,166

 
33

 
10/1/2013
 
2010
 CVS
 
 Freeland
 
 PA
 
—

 
122

 
1,096

 
—

 
1,218

 
93

 
8/8/2012
 
2004
 CVS
 
 Mechanicsburg
 
 PA
 
—

 
1,155

 
3,465

 
—

 
4,620

 
225

 
11/29/2012
 
2008
 CVS
 
 Shippensburg
 
 PA
 
—

 
351

 
1,988

 
—

 
2,339

 
109

 
2/8/2013
 
2002
 CVS
 
 Greenville
 
 SC
 
—

(1) 
169

 
1,520

 
—

 
1,689

 
76

 
2/28/2013
 
1997
 CVS
 
 Jackson
 
 TN
 
—

 
1,209

 
2,822

 
—

 
4,031

 
42

 
10/1/2013
 
2012
 CVS
 
 Knoxville
 
 TN
 
—

 
1,190

 
2,210

 
—

 
3,400

 
33

 
10/1/2013
 
2011
 CVS
 
 Nashville
 
 TN
 
—

(1) 
203

 
1,148

 
—

 
1,351

 
86

 
9/28/2012
 
1996
 CVS
 
 Converse
 
 TX
 
—

 
1,390

 
3,243

 
—

 
4,633

 
49

 
10/1/2013
 
2011
 CVS
 
 Dumas
 
 TX
 
—

 
846

 
2,537

 
—

 
3,383

 
38

 
10/1/2013
 
2011
 CVS
 
 Elsa
 
 TX
 
—

 
915

 
2,744

 
—

 
3,659

 
41

 
10/1/2013
 
2011
 CVS
 
 Fort Worth
 
 TX
 
—

 
2,453

 
3,679

 
—

 
6,132

 
55

 
10/1/2013
 
2011
 CVS
 
 San Antonio
 
 TX
 
—

 
1,996

 
2,993

 
—

 
4,989

 
45

 
10/1/2013
 
2011
 CVS
 
 San Antonio
 
 TX
 
—

 
2,034

 
3,778

 
—

 
5,812

 
57

 
10/1/2013
 
2011
 CVS
 
 San Antonio
 
 TX
 
—

 
868

 
2,605

 
—

 
3,473

 
39

 
10/1/2013
 
2012
 CVS
 
 San Juan
 
 TX
 
—

 
610

 
2,441

 
—

 
3,051

 
37

 
10/1/2013
 
2012
 CVS
 
 Norfolk
 
 VA
 
—

 
697

 
2,789

 
—

 
3,486

 
42

 
10/1/2013
 
2011
 CVS
 
 Portsmouth
 
 VA
 
—

 
1,230

 
3,690

 
—

 
4,920

 
55

 
10/1/2013
 
2012
 CVS
 
 Roanoke
 
 VA
 
—

 
825

 
2,474

 
—

 
3,299

 
37

 
10/1/2013
 
2011
 CVS
 
 Virginia Beach
 
 VA
 
—

 
683

 
3,868

 
—

 
4,551

 
58

 
10/1/2013
 
2012
 CVS
 
 Williamsburg
 
 VA
 
—

 
907

 
5,137

 
—

 
6,044

 
77

 
10/1/2013
 
2011
 Dairy Queen
 
 Mauldin
 
 SC
 
—

(1) 
133

 
—

 
—

 
133

 
—

 
6/27/2013
 
1979
 Dairy Queen
 
 Alto
 
 TX
 
—

(1) 
50

 
110

 
—

 
160

 
3

 
6/27/2013
 
1972


F-76

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dairy Queen
 
 Pineland
 
 TX
 
—

(1) 
40

 
120

 
—

 
160

 
3

 
6/27/2013
 
1989
 Dairy Queen
 
 Silsbee
 
 TX
 
—

(1) 
60

 
100

 
—

 
160

 
3

 
6/27/2013
 
1988
 DaVita Dialysis
 
 Osceola
 
 AR
 
—

(1) 
137

 
1,232

 
—

 
1,369

 
43

 
3/28/2013
 
2009
 DaVita Dialysis
 
 Allen Park
 
 MI
 
—

(1) 
209

 
1,885

 
—

 
2,094

 
102

 
12/31/2012
 
1955
 DaVita Dialysis
 
 St. Pauls
 
 NC
 
—

(1) 
138

 
1,246

 
—

 
1,384

 
24

 
8/2/2013
 
2006
 DaVita Dialysis
 
 Beeville
 
 TX
 
—

(1) 
99

 
1,879

 
—

 
1,978

 
102

 
12/31/2012
 
2002
 DaVita Dialysis
 
 Federal Way
 
 WA
 
—

 
1,929

 
22,357

 
—

 
24,286

 
1,509

 
11/21/2012
 
2000
 DC Sports Bar & Steakhouse
 
 Eunice
 
 LA
 
—

(1) 
500

 
262

 
—

 
762

 
8

 
6/27/2013
 
1987
 Del Monte Corporation
 
 Lathrop
 
 CA
 
32,694

 
—

 
41,318

 
—

 
41,318

 
420

 
11/5/2013
 
1994
 Denny's
 
 Winter Springs
 
 FL
 
—

(1) 
550

 
1,668

 
—

 
2,218

 
48

 
6/27/2013
 
1994
 Denny's
 
 Merriam
 
 KS
 
—

(1) 
390

 
1,150

 
—

 
1,540

 
33

 
6/27/2013
 
1981
 Denny's
 
 Topeka
 
 KS
 
—

(1) 
630

 
446

 
—

 
1,076

 
13

 
6/27/2013
 
1989
 Denny's
 
 Branson
 
 MO
 
—

(1) 
620

 
2,209

 
—

 
2,829

 
63

 
6/27/2013
 
1995
 Denny's
 
 Kansas City
 
 MO
 
—

(1) 
750

 
686

 
—

 
1,436

 
20

 
6/27/2013
 
1997
 Denny's
 
 North Kansas City
 
 MO
 
—

(1) 
630

 
937

 
—

 
1,567

 
27

 
6/27/2013
 
1979
 Denny's
 
 Sedalia
 
 MO
 
—

(1) 
500

 
783

 
—

 
1,283

 
22

 
6/27/2013
 
1985
 Denny's
 
 Black Mountain
 
 NC
 
—

(1) 
210

 
505

 
—

 
715

 
14

 
6/27/2013
 
1992
 Denny's
 
 Mooresville
 
 NC
 
—

(1) 
250

 
841

 
—

 
1,091

 
24

 
6/27/2013
 
1992
 Denny's
 
 Watertown
 
 NY
 
—

(1) 
330

 
1,107

 
—

 
1,437

 
32

 
6/27/2013
 
1987
 Denny's
 
 Fremont
 
 OH
 
—

(1) 
320

 
975

 
—

 
1,295

 
28

 
6/27/2013
 
1992
 Denny's
 
 Ontario
 
 OR
 
—

(1) 
240

 
1,067

 
—

 
1,307

 
31

 
6/27/2013
 
1978
 Denny's
 
 Columbia
 
 SC
 
—

(1) 
490

 
1,115

 
—

 
1,605

 
32

 
6/27/2013
 
1998
 Denny's
 
 Greenville
 
 SC
 
—

(1) 
570

 
554

 
—

 
1,124

 
16

 
6/27/2013
 
1985
 Denny's
 
 Pasadena
 
 TX
 
—

(1) 
500

 
1,316

 
—

 
1,816

 
38

 
6/27/2013
 
1981
 Dollar General
 
 Birmingham
 
 AL
 
—

(1) 
156

 
882

 
—

 
1,038

 
78

 
6/6/2012
 
2012
 Dollar General
 
 Chunchula
 
 AL
 
—

(1) 
174

 
697

 
—

 
871

 
65

 
4/25/2012
 
2012
 Dollar General
 
 Moulton
 
 AL
 
—

(1) 
517

 
1,207

 
—

 
1,724

 
113

 
4/26/2012
 
2012
 Dollar General
 
 Gardendale
 
 AL
 
—

(1) 
142

 
805

 
—

 
947

 
64

 
8/9/2012
 
2012
 Dollar General
 
 Red Level
 
 AL
 
—

 
120

 
680

 
—

 
800

 
83

 
10/31/2011
 
2010
 Dollar General
 
 Tarrant
 
 AL
 
—

(5) 
217

 
869

 
—

 
1,086

 
102

 
12/12/2011
 
2011
 Dollar General
 
 Tuscaloosa
 
 AL
 
—

 
133

 
756

 
—

 
889

 
85

 
12/30/2011
 
2011
 Dollar General
 
 Ash Flat
 
 AR
 
—

(1) 
44

 
132

 
—

 
176

 
11

 
6/19/2012
 
1997

F-77

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 Batesville
 
 AR
 
—

(1) 
32

 
285

 
—

 
317

 
7

 
7/25/2013
 
1998
 Dollar General
 
 Batesville
 
 AR
 
—

(1) 
42

 
374

 
—

 
416

 
9

 
7/25/2013
 
1999
 Dollar General
 
 Beebe
 
 AR
 
—

(1) 
51

 
458

 
—

 
509

 
11

 
7/25/2013
 
1999
 Dollar General
 
 Bella Vista
 
 AR
 
—

(1) 
129

 
302

 
—

 
431

 
37

 
11/10/2011
 
2005
 Dollar General
 
 Bergman
 
 AR
 
—

(1) 
113

 
639

 
—

 
752

 
54

 
7/2/2012
 
2011
 Dollar General
 
 Blytheville
 
 AR
 
—

(1) 
30

 
274

 
—

 
304

 
6

 
7/25/2013
 
2000
 Dollar General
 
 Carlisle
 
 AR
 
—

(1) 
13

 
245

 
—

 
258

 
30

 
11/10/2011
 
2005
 Dollar General
 
 Des Arc
 
 AR
 
—

(1) 
56

 
508

 
—

 
564

 
12

 
7/25/2013
 
1999
 Dollar General
 
 Dumas
 
 AR
 
—

(1) 
46

 
412

 
—

 
458

 
10

 
7/25/2013
 
1998
 Dollar General
 
 Flippin
 
 AR
 
—

(1) 
53

 
64

 
—

 
117

 
5

 
6/19/2012
 
1994
 Dollar General
 
 Gassville
 
 AR
 
—

(1) 
54

 
305

 
—

 
359

 
7

 
7/25/2013
 
1999
 Dollar General
 
 Green Forest
 
 AR
 
—

(1) 
52

 
293

 
—

 
345

 
36

 
11/10/2011
 
2005
 Dollar General
 
 Higdon
 
 AR
 
—

(1) 
52

 
469

 
—

 
521

 
11

 
7/25/2013
 
1999
 Dollar General
 
 Lake Village
 
 AR
 
—

(1) 
64

 
362

 
—

 
426

 
8

 
7/25/2013
 
1998
 Dollar General
 
 Lepanto
 
 AR
 
—

(1) 
43

 
389

 
—

 
432

 
9

 
7/25/2013
 
1998
 Dollar General
 
 Little Rock
 
 AR
 
—

(1) 
73

 
412

 
—

 
485

 
10

 
7/25/2013
 
1999
 Dollar General
 
 Marvell
 
 AR
 
—

(1) 
40

 
358

 
—

 
398

 
8

 
7/25/2013
 
1999
 Dollar General
 
 Maynard
 
 AR
 
—

(1) 
73

 
654

 
—

 
727

 
40

 
12/4/2012
 
2011
 Dollar General
 
 McGehee
 
 AR
 
—

(1) 
25

 
228

 
—

 
253

 
5

 
7/25/2013
 
1998
 Dollar General
 
 Quitman
 
 AR
 
—

(1) 
45

 
405

 
—

 
450

 
9

 
7/25/2013
 
2001
 Dollar General
 
 Searcy
 
 AR
 
—

(1) 
29

 
263

 
—

 
292

 
6

 
7/25/2013
 
1998
 Dollar General
 
 Tuckerman
 
 AR
 
—

(1) 
49

 
280

 
—

 
329

 
7

 
7/25/2013
 
1999
 Dollar General
 
 Whitehall
 
 AR
 
—

(1) 
43

 
388

 
—

 
431

 
9

 
7/25/2013
 
1999
 Dollar General
 
 Wooster
 
 AR
 
—

(1) 
74

 
664

 
—

 
738

 
40

 
12/4/2012
 
2011
 Dollar General
 
 Grand Ridge
 
 FL
 
—

 
76

 
684

 
—

 
760

 
77

 
12/30/2011
 
2010
 Dollar General
 
 Molina
 
 FL
 
—

 
178

 
1,007

 
—

 
1,185

 
123

 
10/31/2011
 
2010
 Dollar General
 
 Panama City
 
 FL
 
—

(1) 
139

 
312

 
—

 
451

 
23

 
6/19/2012
 
1987
 Dollar General
 
 Chariton
 
 IA
 
—

(1) 
165

 
934

 
—

 
1,099

 
70

 
8/31/2012
 
2012
 Dollar General
 
 Estherville
 
 IA
 
—

(1) 
226

 
903

 
—

 
1,129

 
59

 
10/25/2012
 
2012
 Dollar General
 
 Hampton
 
 IA
 
—

(5) 
188

 
751

 
—

 
939

 
81

 
2/1/2012
 
2012
 Dollar General
 
 Lake Milles
 
 IA
 
—

(5) 
81

 
728

 
—

 
809

 
78

 
2/1/2012
 
2012
 Dollar General
 
 Nashua
 
 IA
 
—

(1) 
136

 
768

 
—

 
904

 
58

 
9/6/2012
 
2012

F-78

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 Ottumwa
 
 IA
 
—

(1) 
143

 
812

 
—

 
955

 
42

 
1/31/2013
 
2012
 Dollar General
 
 Altamont
 
 IL
 
—

(6) 
211

 
844

 
—

 
1,055

 
87

 
3/9/2012
 
2012
 Dollar General
 
 Carthage
 
 IL
 
—

(1) 
48

 
908

 
—

 
956

 
68

 
8/31/2012
 
2012
 Dollar General
 
 Jacksonville
 
 IL
 
—

(1) 
145

 
823

 
—

 
968

 
62

 
8/31/2012
 
2012
 Dollar General
 
 Jonesboro
 
 IL
 
—

(1) 
77

 
309

 
—

 
386

 
38

 
11/10/2011
 
2007
 Dollar General
 
 Lexington
 
 IL
 
—

(1) 
100

 
899

 
—

 
999

 
63

 
9/21/2012
 
2012
 Dollar General
 
 Marion
 
 IL
 
—

(1) 
153

 
867

 
—

 
1,020

 
61

 
9/24/2012
 
2012
 Dollar General
 
 Mt Morris
 
 IL
 
—

(1) 
97

 
877

 
—

 
974

 
49

 
12/17/2012
 
2012
 Dollar General
 
 Monroeville
 
 IN
 
—

(5) 
112

 
636

 
—

 
748

 
71

 
12/22/2011
 
2011
 Dollar General
 
 Auburn
 
 KS
 
—

(1) 
42

 
801

 
—

 
843

 
60

 
8/31/2012
 
2009
 Dollar General
 
 Caney
 
 KS
 
—

(1) 
31

 
178

 
—

 
209

 
15

 
6/19/2012
 
2002
 Dollar General
 
 Cottonwood Falls
 
 KS
 
—

(1) 
89

 
802

 
—

 
891

 
60

 
8/31/2012
 
2009
 Dollar General
 
 Erie
 
 KS
 
—

(1) 
42

 
790

 
—

 
832

 
59

 
8/31/2012
 
2009
 Dollar General
 
 Garden City
 
 KS
 
—

(1) 
136

 
771

 
—

 
907

 
58

 
8/31/2012
 
2010
 Dollar General
 
 Harper
 
 KS
 
—

(1) 
91

 
818

 
—

 
909

 
61

 
8/31/2012
 
2009
 Dollar General
 
 Humboldt
 
 KS
 
—

(1) 
44

 
828

 
—

 
872

 
62

 
8/31/2012
 
2009
 Dollar General
 
 Kingman
 
 KS
 
—

(1) 
142

 
804

 
—

 
946

 
60

 
8/31/2012
 
2010
 Dollar General
 
 Medicine Lodge
 
 KS
 
—

(1) 
40

 
765

 
—

 
805

 
57

 
8/31/2012
 
2010
 Dollar General
 
 Minneapolis
 
 KS
 
—

(1) 
43

 
816

 
—

 
859

 
61

 
8/31/2012
 
2010
 Dollar General
 
 Pomona
 
 KS
 
—

(1) 
42

 
796

 
—

 
838

 
60

 
8/31/2012
 
2009
 Dollar General
 
 Sedan
 
 KS
 
—

(1) 
42

 
792

 
—

 
834

 
59

 
8/31/2012
 
2009
 Dollar General
 
 Syracuse
 
 KS
 
—

(1) 
43

 
817

 
—

 
860

 
61

 
8/31/2012
 
2010
 Dollar General
 
 Nancy
 
 KY
 
—

(1) 
81

 
733

 
—

 
814

 
69

 
4/26/2012
 
2011


F-79

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 Choudrant
 
 LA
 
—

 
83

 
745

 
—

 
828

 
80

 
2/6/2012
 
2011
 Dollar General
 
 Converse
 
 LA
 
—

(1) 
84

 
756

 
—

 
840

 
53

 
9/26/2012
 
2012
 Dollar General
 
 Doyline
 
 LA
 
—

(1) 
88

 
793

 
—

 
881

 
48

 
11/27/2012
 
2012
 Dollar General
 
 Gardner
 
 LA
 
—

(6) 
138

 
784

 
—

 
922

 
81

 
3/8/2012
 
2012
 Dollar General
 
 Jonesville
 
 LA
 
—

(1) 
103

 
929

 
—

 
1,032

 
65

 
9/27/2012
 
2012
 Dollar General
 
 Keithville
 
 LA
 
—

(1) 
83

 
750

 
—

 
833

 
60

 
7/26/2012
 
2012
 Dollar General
 
 Lake Charles
 
 LA
 
—

 
102

 
919

 
—

 
1,021

 
95

 
2/29/2012
 
2012
 Dollar General
 
 Mangham
 
 LA
 
—

 
40

 
759

 
—

 
799

 
82

 
2/6/2012
 
2011
 Dollar General
 
 Mt. Hermon
 
 LA
 
—

(1) 
94

 
842

 
—

 
936

 
91

 
2/6/2012
 
2011
 Dollar General
 
 New Iberia
 
 LA
 
—

(1) 
315

 
736

 
—

 
1,051

 
69

 
4/26/2012
 
2011
 Dollar General
 
 Patterson
 
 LA
 
—

 
259

 
1,035

 
—

 
1,294

 
97

 
4/26/2012
 
2011
 Dollar General
 
 Richwood
 
 LA
 
—

(1) 
97

 
869

 
—

 
966

 
94

 
2/6/2012
 
2011
 Dollar General
 
 Sarepta
 
 LA
 
—

(1) 
131

 
743

 
—

 
874

 
59

 
8/9/2012
 
2011
 Dollar General
 
 West Monroe
 
 LA
 
—

(1) 
153

 
869

 
—

 
1,022

 
89

 
3/9/2012
 
2012
 Dollar General
 
 Zachary
 
 LA
 
—

(1) 
248

 
743

 
—

 
991

 
70

 
4/26/2012
 
2011
 Dollar General
 
 Bangor
 
 MI
 
—

(1) 
173

 
691

 
—

 
864

 
58

 
7/10/2012
 
2012
 Dollar General
 
 Cadillac
 
 MI
 
—

(6) 
187

 
747

 
—

 
934

 
73

 
3/16/2012
 
2012
 Dollar General
 
 Carleton
 
 MI
 
—

(6) 
222

 
666

 
—

 
888

 
65

 
3/16/2012
 
2011
 Dollar General
 
 Covert
 
 MI
 
—

(1) 
37

 
704

 
—

 
741

 
53

 
8/30/2012
 
2012
 Dollar General
 
 Durand
 
 MI
 
—

(1) 
181

 
726

 
—

 
907

 
65

 
5/18/2012
 
2012
 Dollar General
 
 East Jordan
 
 MI
 
—

(1) 
125

 
709

 
—

 
834

 
60

 
7/10/2012
 
2012
 Dollar General
 
 Flint
 
 MI
 
—

(6) 
83

 
743

 
—

 
826

 
66

 
5/18/2012
 
2012
 Dollar General
 
 Flint
 
 MI
 
—

(1) 
91

 
820

 
—

 
911

 
54

 
10/31/2012
 
2012
 Dollar General
 
 Gaylord
 
 MI
 
—

(1) 
172

 
687

 
—

 
859

 
58

 
7/10/2012
 
2012
 Dollar General
 
 Iron River
 
 MI
 
—

(1) 
86

 
777

 
—

 
863

 
58

 
8/30/2012
 
2012
 Dollar General
 
 Melvindale
 
 MI
 
—

(1) 
242

 
967

 
—

 
1,209

 
81

 
6/26/2012
 
2012
 Dollar General
 
 Negaunee
 
 MI
 
—

(1) 
87

 
779

 
—

 
866

 
58

 
8/30/2012
 
2012
 Dollar General
 
 Roscommon
 
 MI
 
—

(1) 
87

 
781

 
—

 
868

 
58

 
8/30/2012
 
2012
 Dollar General
 
 Melrose
 
 MN
 
—

(1) 
96

 
863

 
—

 
959

 
48

 
12/17/2012
 
2012
 Dollar General
 
 Montgomery
 
 MN
 
—

(1) 
87

 
783

 
—

 
870

 
44

 
12/17/2012
 
2012
 Dollar General
 
 Olivia
 
 MN
 
—

(1) 
98

 
884

 
—

 
982

 
46

 
1/31/2013
 
2012
 Dollar General
 
 Rush City
 
 MN
 
—

(1) 
126

 
716

 
—

 
842

 
57

 
7/25/2012
 
2012

F-80

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 Springfield
 
 MN
 
—

(1) 
88

 
795

 
—

 
883

 
45

 
12/26/2012
 
2012
 Dollar General
 
 Virginia
 
 MN
 
—

(1) 
147

 
831

 
—

 
978

 
47

 
1/14/2013
 
2012
 Dollar General
 
 Appleton City
 
 MO
 
—

(1) 
22

 
124

 
—

 
146

 
15

 
11/10/2011
 
2004
 Dollar General
 
 Ash Grove
 
 MO
 
—

(1) 
35

 
315

 
—

 
350

 
38

 
11/10/2011
 
2006
 Dollar General
 
 Ashland
 
 MO
 
—

(1) 
70

 
398

 
—

 
468

 
48

 
11/10/2011
 
2006
 Dollar General
 
 Auxvasse
 
 MO
 
—

(2) 
72

 
650

 
—

 
722

 
76

 
11/22/2011
 
2011
 Dollar General
 
 Belton
 
 MO
 
—

(1) 
105

 
948

 
—

 
1,053

 
75

 
8/3/2012
 
2012
 Dollar General
 
 Berkeley
 
 MO
 
—

(1) 
132

 
748

 
—

 
880

 
53

 
10/9/2012
 
2012
 Dollar General
 
 Bernie
 
 MO
 
—

(1) 
35

 
314

 
—

 
349

 
38

 
11/10/2011
 
2007
 Dollar General
 
 Bloomfield
 
 MO
 
—

(1) 
23

 
209

 
—

 
232

 
25

 
11/10/2011
 
2005
 Dollar General
 
 Cardwell
 
 MO
 
—

(1) 
89

 
805

 
—

 
894

 
60

 
8/24/2012
 
2012
 Dollar General
 
 Carterville
 
 MO
 
—

(8) 
10

 
192

 
—

 
202

 
23

 
11/10/2011
 
2004
 Dollar General
 
 Caruthersville
 
 MO
 
—

(1) 
98

 
878

 
—

 
976

 
62

 
9/27/2012
 
2012
 Dollar General
 
 Clarkton
 
 MO
 
—

(1) 
19

 
354

 
—

 
373

 
43

 
11/10/2011
 
2007
 Dollar General
 
 Clever
 
 MO
 
—

(1) 
136

 
542

 
—

 
678

 
46

 
6/19/2012
 
2010
 Dollar General
 
 Concordia
 
 MO
 
—

(1) 
40

 
161

 
—

 
201

 
14

 
6/19/2012
 
1998
 Dollar General
 
 Conway
 
 MO
 
—

(2) 
37

 
694

 
—

 
731

 
81

 
11/22/2011
 
2011
 Dollar General
 
 Diamond
 
 MO
 
—

(1) 
44

 
175

 
—

 
219

 
21

 
11/10/2011
 
2005
 Dollar General
 
 Edina
 
 MO
 
—

(1) 
127

 
722

 
—

 
849

 
54

 
9/13/2012
 
2012
 Dollar General
 
 Ellsinore
 
 MO
 
—

(8) 
30

 
579

 
—

 
609

 
70

 
11/10/2011
 
2010
 Dollar General
 
 Gower
 
 MO
 
—

(1) 
118

 
668

 
—

 
786

 
50

 
8/31/2012
 
2012
 Dollar General
 
 Greenfield
 
 MO
 
—

(1) 
42

 
378

 
—

 
420

 
32

 
6/19/2012
 
2000
 Dollar General
 
 Hallsville
 
 MO
 
—

(8) 
29

 
263

 
—

 
292

 
32

 
11/10/2011
 
2004
 Dollar General
 
 Hawk Point
 
 MO
 
—

(1) 
177

 
709

 
—

 
886

 
53

 
8/24/2012
 
2012
 Dollar General
 
 Humansville
 
 MO
 
—

(1) 
69

 
277

 
—

 
346

 
23

 
6/19/2012
 
2007
 Dollar General
 
 Jennings
 
 MO
 
—

(1) 
445

 
826

 
—

 
1,271

 
70

 
7/13/2012
 
2012
 Dollar General
 
 Kansas City
 
 MO
 
—

(1) 
313

 
731

 
—

 
1,044

 
51

 
9/21/2012
 
2012
 Dollar General
 
 King City
 
 MO
 
—

(2) 
33

 
625

 
—

 
658

 
73

 
11/22/2011
 
2010
 Dollar General
 
 Lawson
 
 MO
 
—

(1) 
29

 
162

 
—

 
191

 
20

 
11/10/2011
 
2003
 Dollar General
 
 Lebanon
 
 MO
 
—

(1) 
278

 
835

 
—

 
1,113

 
59

 
9/26/2012
 
2012
 Dollar General
 
 Lebanon
 
 MO
 
—

(1) 
177

 
708

 
—

 
885

 
50

 
9/24/2012
 
2012
 Dollar General
 
 Licking
 
 MO
 
—

(2) 
76

 
688

 
—

 
764

 
80

 
11/22/2011
 
2010

F-81

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 Lilbourne
 
 MO
 
—

(8) 
62

 
554

 
—

 
616

 
67

 
11/10/2011
 
2010
 Dollar General
 
 Marble Hill
 
 MO
 
—

(1) 
104

 
935

 
—

 
1,039

 
70

 
9/11/2012
 
2012
 Dollar General
 
 Marionville
 
 MO
 
—

(1) 
89

 
797

 
—

 
886

 
52

 
10/31/2012
 
2012
 Dollar General
 
 Marthasville
 
 MO
 
—

 
41

 
782

 
—

 
823

 
84

 
2/1/2012
 
2011
 Dollar General
 
 Maysville
 
 MO
 
—

(2) 
107

 
607

 
—

 
714

 
74

 
10/31/2011
 
2010
 Dollar General
 
 Morehouse
 
 MO
 
—

(1) 
87

 
783

 
—

 
870

 
59

 
9/7/2012
 
2012
 Dollar General
 
 New Haven
 
 MO
 
—

(1) 
176

 
702

 
—

 
878

 
66

 
4/27/2012
 
2012
 Dollar General
 
 Oak Grove
 
 MO
 
—

(1) 
27

 
106

 
—

 
133

 
9

 
6/19/2012
 
1999
 Dollar General
 
 Oran
 
 MO
 
—

(6) 
83

 
747

 
—

 
830

 
73

 
3/30/2012
 
2012
 Dollar General
 
 Osceola
 
 MO
 
—

(1) 
93

 
835

 
—

 
928

 
39

 
2/19/2013
 
2012
 Dollar General
 
 Ozark
 
 MO
 
—

(6) 
190

 
758

 
—

 
948

 
71

 
4/27/2012
 
2012
 Dollar General
 
 Ozark
 
 MO
 
—

(1) 
149

 
842

 
—

 
991

 
59

 
9/24/2012
 
2012
 Dollar General
 
 Pacific
 
 MO
 
—

(1) 
151

 
853

 
—

 
1,004

 
76

 
6/6/2012
 
2012
 Dollar General
 
 Palmyra
 
 MO
 
—

(1) 
40

 
225

 
—

 
265

 
19

 
6/19/2012
 
2003
 Dollar General
 
 Plattsburg
 
 MO
 
—

(1) 
44

 
843

 
—

 
887

 
67

 
8/9/2012
 
2012
 Dollar General
 
 Qulin
 
 MO
 
—

(8) 
30

 
573

 
—

 
603

 
70

 
11/10/2011
 
2009
 Dollar General
 
 Robertsville
 
 MO
 
—

(1) 
131

 
744

 
—

 
875

 
56

 
8/24/2012
 
2011
 Dollar General
 
 Rocky Mount
 
 MO
 
—

(1) 
88

 
789

 
—

 
877

 
59

 
8/31/2012
 
2012
 Dollar General
 
 Sedalia
 
 MO
 
—

(1) 
273

 
637

 
—

 
910

 
48

 
9/7/2012
 
2012
 Dollar General
 
 Senath
 
 MO
 
—

(1) 
61

 
552

 
—

 
613

 
47

 
6/19/2012
 
2010
 Dollar General
 
 Seneca
 
 MO
 
—

(1) 
47

 
189

 
—

 
236

 
16

 
6/19/2012
 
1962
 Dollar General
 
 Sikeston
 
 MO
 
—

(6) 
56

 
1,056

 
—

 
1,112

 
109

 
2/24/2012
 
2011
 Dollar General
 
 Sikeston
 
 MO
 
—

(1) 
144

 
819

 
—

 
963

 
61

 
8/24/2012
 
2012
 Dollar General
 
 Springfield
 
 MO
 
—

(1) 
378

 
702

 
—

 
1,080

 
62

 
6/14/2012
 
2012
 Dollar General
 
 St James
 
 MO
 
—

(1) 
81

 
244

 
—

 
325

 
21

 
6/19/2012
 
1999
 Dollar General
 
 St. Clair
 
 MO
 
—

 
220

 
879

 
—

 
1,099

 
99

 
12/30/2011
 
2011


F-82

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 St. Louis
 
 MO
 
—

(1) 
372

 
692

 
—

 
1,064

 
52

 
8/31/2012
 
2012
 Dollar General
 
 St. Louis
 
 MO
 
—

(1) 
260

 
606

 
—

 
866

 
43

 
9/26/2012
 
2012
 Dollar General
 
 Stanberry
 
 MO
 
—

(3) 
111

 
629

 
—

 
740

 
74

 
11/22/2011
 
2010
 Dollar General
 
 Steele
 
 MO
 
—

(8) 
31

 
598

 
—

 
629

 
73

 
11/10/2011
 
2009
 Dollar General
 
 Strafford
 
 MO
 
—

(8) 
51

 
461

 
10

 
522

 
56

 
11/10/2011
 
2009
 Dollar General
 
 Vienna
 
 MO
 
—

(6) 
78

 
704

 
—

 
782

 
72

 
2/24/2012
 
2011
 Dollar General
 
 Willow Springs
 
 MO
 
—

(1) 
24

 
213

 
—

 
237

 
18

 
6/19/2012
 
2002
 Dollar General
 
 Winona
 
 MO
 
—

(1) 
52

 
155

 
—

 
207

 
13

 
6/19/2012
 
2001
 Dollar General
 
 Edwards
 
 MS
 
—

 
75

 
671

 
—

 
746

 
75

 
12/30/2011
 
2011
 Dollar General
 
 Greensville
 
 MS
 
—

 
82

 
739

 
—

 
821

 
83

 
12/30/2011
 
2011
 Dollar General
 
 Hickory
 
 MS
 
—

(1) 
77

 
692

 
—

 
769

 
58

 
7/2/2012
 
2011
 Dollar General
 
 Jackson
 
 MS
 
—

(1) 
198

 
793

 
—

 
991

 
56

 
9/27/2012
 
2011
 Dollar General
 
 Meridian
 
 MS
 
—

(1) 
178

 
713

 
—

 
891

 
53

 
9/13/2012
 
2011
 Dollar General
 
 Meridian
 
 MS
 
—

(1) 
40

 
754

 
—

 
794

 
56

 
9/13/2012
 
2011
 Dollar General
 
 Moorhead
 
 MS
 
—

(6) 
107

 
606

 
—

 
713

 
57

 
5/1/2012
 
2011
 Dollar General
 
 Natchez
 
 MS
 
—

(1) 
166

 
664

 
—

 
830

 
59

 
6/11/2012
 
2012
 Dollar General
 
 Soso
 
 MS
 
—

(6) 
116

 
658

 
—

 
774

 
65

 
4/12/2012
 
2011
 Dollar General
 
 Stonewall
 
 MS
 
—

(1) 
116

 
655

 
—

 
771

 
55

 
7/2/2012
 
2011
 Dollar General
 
 Stringer
 
 MS
 
—

(1) 
116

 
655

 
—

 
771

 
55

 
7/2/2012
 
2011
 Dollar General
 
 Walmut Grove
 
 MS
 
—

 
71

 
641

 
—

 
712

 
72

 
12/30/2011
 
2011
 Dollar General
 
 Fayetteville
 
 NC
 
—

 
216

 
647

 
—

 
863

 
70

 
2/6/2012
 
2011
 Dollar General
 
 Hickory
 
 NC
 
—

(1) 
89

 
804

 
—

 
893

 
64

 
8/13/2012
 
2012
 Dollar General
 
 Ocean Isle Beach
 
 NC
 
—

 
341

 
633

 
—

 
974

 
68

 
2/6/2012
 
2011
 Dollar General
 
 Tryon
 
 NC
 
—

(1) 
139

 
789

 
—

 
928

 
63

 
8/13/2012
 
2012
 Dollar General
 
 Vass
 
 NC
 
—

 
226

 
528

 
—

 
754

 
57

 
2/6/2012
 
2011
 Dollar General
 
 Farmington
 
 NM
 
—

(1) 
269

 
807

 
—

 
1,076

 
60

 
9/6/2012
 
2012
 Dollar General
 
 Forest
 
 OH
 
—

 
76

 
681

 
—

 
757

 
83

 
10/31/2011
 
2010
 Dollar General
 
 Greenfield
 
 OH
 
—

 
110

 
986

 
—

 
1,096

 
102

 
2/23/2012
 
2011
 Dollar General
 
 Loudonville
 
 OH
 
—

(1) 
236

 
945

 
—

 
1,181

 
84

 
6/6/2012
 
2012
 Dollar General
 
 Lucasville
 
 OH
 
—

(1) 
223

 
893

 
—

 
1,116

 
79

 
5/16/2012
 
2012
 Dollar General
 
 New Carlisle
 
 OH
 
—

(1) 
215

 
860

 
—

 
1,075

 
72

 
7/10/2012
 
2012
 Dollar General
 
 New Matamoras
 
 OH
 
—

 
123

 
696

 
—

 
819

 
85

 
10/31/2011
 
2010

F-83

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 Payne
 
 OH
 
—

(3) 
81

 
729

 
—

 
810

 
89

 
10/31/2011
 
2010
 Dollar General
 
 Pleasant City
 
 OH
 
—

(3) 
131

 
740

 
—

 
871

 
90

 
10/31/2011
 
2010
 Dollar General
 
 Calera
 
 OK
 
—

(1) 
136

 
770

 
—

 
906

 
58

 
8/31/2012
 
2010
 Dollar General
 
 Commerce
 
 OK
 
—

(1) 
38

 
341

 
—

 
379

 
41

 
11/10/2011
 
2006
 Dollar General
 
 Hartshorne
 
 OK
 
—

(1) 
100

 
898

 
—

 
998

 
67

 
8/31/2012
 
2010
 Dollar General
 
 Lexington
 
 OK
 
—

(1) 
85

 
761

 
—

 
846

 
57

 
8/31/2012
 
2010
 Dollar General
 
 Maud
 
 OK
 
—

(1) 
76

 
688

 
—

 
764

 
51

 
8/31/2012
 
2010
 Dollar General
 
 Maysville
 
 OK
 
—

(1) 
41

 
785

 
—

 
826

 
59

 
8/31/2012
 
2010
 Dollar General
 
 Nowata
 
 OK
 
—

(1) 
43

 
128

 
—

 
171

 
11

 
6/19/2012
 
1998
 Dollar General
 
 Rush Spring
 
 OK
 
—

(1) 
87

 
779

 
—

 
866

 
58

 
8/31/2012
 
2010
 Dollar General
 
 Doyle
 
 TN
 
—

(1) 
75

 
679

 
—

 
754

 
51

 
8/22/2012
 
2012
 Dollar General
 
 Manchester
 
 TN
 
—

(1) 
114

 
646

 
—

 
760

 
51

 
7/26/2012
 
2012
 Dollar General
 
 McMinnville
 
 TN
 
—

(1) 
120

 
679

 
—

 
799

 
57

 
7/12/2012
 
2012
 Dollar General
 
 Pleasant Hill
 
 TN
 
—

 
39

 
747

 
—

 
786

 
84

 
12/30/2011
 
2011
 Dollar General
 
 Academy
 
 TX
 
—

(1) 
122

 
693

 
—

 
815

 
65

 
4/27/2012
 
2012
 Dollar General
 
 Alto Bonito
 
 TX
 
—

(5) 
163

 
652

 
—

 
815

 
70

 
2/1/2012
 
2011
 Dollar General
 
 Blessing
 
 TX
 
—

(1) 
83

 
745

 
—

 
828

 
42

 
12/18/2012
 
2012
 Dollar General
 
 Bryan
 
 TX
 
—

(1) 
148

 
840

 
—

 
988

 
63

 
9/14/2012
 
2012
 Dollar General
 
 Bryan
 
 TX
 
—

(1) 
193

 
772

 
—

 
965

 
58

 
9/14/2012
 
2012
 Dollar General
 
 Bryan
 
 TX
 
—

(1) 
185

 
740

 
—

 
925

 
55

 
8/31/2012
 
2009
 Dollar General
 
 Canyon Lake
 
 TX
 
—

(1) 
149

 
843

 
—

 
992

 
59

 
10/12/2012
 
2012
 Dollar General
 
 Como
 
 TX
 
—

(6) 
76

 
683

 
—

 
759

 
64

 
4/20/2012
 
2012
 Dollar General
 
 Corpus Christi
 
 TX
 
—

(1) 
270

 
809

 
—

 
1,079

 
45

 
12/26/2012
 
2012
 Dollar General
 
 Dickinson
 
 TX
 
—

(1) 
87

 
786

 
—

 
873

 
55

 
9/25/2012
 
2012
 Dollar General
 
 Donna
 
 TX
 
—

(1) 
136

 
768

 
—

 
904

 
58

 
9/11/2012
 
2012
 Dollar General
 
 Donna
 
 TX
 
—

(1) 
200

 
799

 
—

 
999

 
56

 
10/12/2012
 
2012
 Dollar General
 
 Donna
 
 TX
 
—

(1) 
145

 
820

 
—

 
965

 
42

 
1/31/2013
 
2012
 Dollar General
 
 Edinburg
 
 TX
 
—

(1) 
136

 
769

 
—

 
905

 
58

 
9/7/2012
 
2012
 Dollar General
 
 Elemdorf
 
 TX
 
—

(1) 
94

 
847

 
—

 
941

 
56

 
10/23/2012
 
2012
 Dollar General
 
 Gladewater
 
 TX
 
—

(1) 
184

 
736

 
—

 
920

 
55

 
8/31/2012
 
2009
 Dollar General
 
 Gordonville
 
 TX
 
—

(6) 
38

 
717

 
—

 
755

 
67

 
4/20/2012
 
2012
 Dollar General
 
 Kyle
 
 TX
 
—

(1) 
132

 
747

 
—

 
879

 
52

 
9/26/2012
 
2012

F-84

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 LaMarque
 
 TX
 
—

(1) 
102

 
917

 
—

 
1,019

 
69

 
8/31/2012
 
2010
 Dollar General
 
 Laredo
 
 TX
 
—

(1) 
253

 
758

 
—

 
1,011

 
60

 
7/31/2012
 
2012
 Dollar General
 
 Lubbock
 
 TX
 
—

(1) 
267

 
801

 
—

 
1,068

 
60

 
8/31/2012
 
2010
 Dollar General
 
 Lyford
 
 TX
 
—

 
80

 
724

 
—

 
804

 
81

 
12/30/2011
 
2010
 Dollar General
 
 Morgans Point
 
 TX
 
—

(1) 
145

 
821

 
—

 
966

 
61

 
9/13/2012
 
2012
 Dollar General
 
 Mount Pleasant
 
 TX
 
—

(1) 
214

 
858

 
—

 
1,072

 
64

 
8/31/2012
 
2010
 Dollar General
 
 New Braunfels
 
 TX
 
—

(1) 
205

 
818

 
—

 
1,023

 
61

 
8/31/2012
 
2012
 Dollar General
 
 Poteet
 
 TX
 
—

(3) 
96

 
864

 
—

 
960

 
105

 
10/31/2011
 
2010
 Dollar General
 
 Progreso
 
 TX
 
—

(3) 
169

 
957

 
—

 
1,126

 
116

 
10/31/2011
 
2009
 Dollar General
 
 Rio Grande City
 
 TX
 
—

(3) 
137

 
779

 
—

 
916

 
95

 
10/31/2011
 
2010
 Dollar General
 
 Roma
 
 TX
 
—

(3) 
253

 
1,010

 
—

 
1,263

 
123

 
10/31/2011
 
2010
 Dollar General
 
 San Antonio
 
 TX
 
—

(1) 
252

 
756

 
—

 
1,008

 
50

 
10/22/2012
 
2012
 Dollar General
 
 San Antonio
 
 TX
 
—

(1) 
222

 
888

 
—

 
1,110

 
58

 
10/22/2012
 
2012
 Dollar General
 
 Silsbee
 
 TX
 
—

(1) 
43

 
810

 
—

 
853

 
68

 
7/6/2012
 
2012
 Dollar General
 
 Troy
 
 TX
 
—

(1) 
93

 
841

 
—

 
934

 
63

 
9/12/2012
 
2012
 Dollar General
 
 Tyler
 
 TX
 
—

(1) 
219

 
875

 
—

 
1,094

 
66

 
8/31/2012
 
2010
 Dollar General
 
 Victoria
 
 TX
 
—

(1) 
91

 
817

 
—

 
908

 
42

 
1/31/2013
 
2013
 Dollar General
 
 Waco
 
 TX
 
—

(1) 
192

 
767

 
—

 
959

 
57

 
8/31/2012
 
2012
 Dollar General
 
 Weslaco
 
 TX
 
—

(1) 
215

 
862

 
—

 
1,077

 
61

 
9/24/2012
 
2012
 Dollar General
 
 Burkeville
 
 VA
 
—

(1) 
160

 
906

 
—

 
1,066

 
85

 
5/8/2012
 
2012
 Dollar General
 
 Chesterfield
 
 VA
 
—

 
242

 
726

 
—

 
968

 
78

 
2/6/2012
 
2011
 Dollar General
 
 Danville
 
 VA
 
—

 
155

 
621

 
—

 
776

 
67

 
2/6/2012
 
2011
 Dollar General
 
 Hopewell
 
 VA
 
—

 
584

 
713

 
—

 
1,297

 
77

 
2/6/2012
 
2011
 Dollar General
 
 Hot Springs
 
 VA
 
—

 
283

 
661

 
—

 
944

 
71

 
2/6/2012
 
2011
 Dollar General
 
 Mellen
 
 WI
 
—

 
79

 
711

 
—

 
790

 
80

 
12/30/2011
 
2011
 Dollar General
 
 Minong
 
 WI
 
—

 
38

 
727

 
—

 
765

 
82

 
12/30/2011
 
2011


F-85

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Dollar General
 
 Solon Springs
 
 WI
 
—

 
76

 
685

 
—

 
761

 
77

 
12/30/2011
 
2011
 Dunkin' Donuts/Baskin-Robbins
 
 Dearborn Heights
 
 MI
 
—

(1) 
230

 
846

 
—

 
1,076

 
23

 
6/27/2013
 
1998
 Einstein Bros. Bagels
 
 Dearborn
 
 MI
 
—

(1) 
190

 
724

 
—

 
914

 
20

 
6/27/2013
 
1997
 Exelis
 
 Herndon
 
 VA
 
39,519

 
1,384

 
53,584

 
—

 
54,968

 
434

 
11/5/2013
 
2006
 Express Scripts
 
 St. Louis
 
 MO
 
—

(4) 
5,706

 
32,333

 
—

 
38,039

 
3,661

 
1/25/2012
 
2011
 Family Dollar
 
 Rangeley
 
 CO
 
—

(6) 
66

 
593

 
—

 
659

 
56

 
5/4/2012
 
2010
 Family Dollar
 
 Middleburg
 
 FL
 
—

(1) 
274

 
822

 
—

 
1,096

 
27

 
6/4/2013
 
2008
 Family Dollar
 
 Ormond Beach
 
 FL
 
—

 
573

 
860

 
—

 
1,433

 
28

 
6/4/2013
 
2008
 Family Dollar
 
 Lenox
 
 GA
 
—

(1) 
90

 
809

 
—

 
899

 
53

 
11/9/2012
 
2012
 Family Dollar
 
 Arco
 
 ID
 
—

(1) 
76

 
684

 
—

 
760

 
48

 
9/18/2012
 
2012
 Family Dollar
 
 Kimberly
 
 ID
 
—

(1) 
219

 
657

 
—

 
876

 
28

 
4/10/2013
 
2013
 Family Dollar
 
 Brookston
 
 IN
 
—

(1) 
126

 
715

 
—

 
841

 
50

 
10/1/2012
 
2012
 Family Dollar
 
 Greensburg
 
 KS
 
—

(1) 
80

 
718

 
—

 
798

 
13

 
9/9/2013
 
2012
 Family Dollar
 
 Chalmette
 
 LA
 
—

(1) 
751

 
615

 
—

 
1,366

 
58

 
5/3/2012
 
2011
 Family Dollar
 
 Tickfaw
 
 LA
 
—

(1) 
181

 
543

 
—

 
724

 
53

 
3/30/2012
 
2011
 Family Dollar
 
 Detroit
 
 MI
 
—

(1) 
130

 
1,169

 
—

 
1,299

 
71

 
11/27/2012
 
2011
 Family Dollar
 
 Detroit
 
 MI
 
—

(1) 
106

 
956

 
—

 
1,062

 
36

 
5/2/2013
 
1964
 Family Dollar
 
 Jackson
 
 MI
 
—

(1) 
93

 
525

 
—

 
618

 
10

 
9/12/2013
 
2007
 Family Dollar
 
 St Louis
 
 MO
 
—

(1) 
445

 
1,038

 
—

 
1,483

 
68

 
12/14/2012
 
2012
 Family Dollar
 
 St. Louis
 
 MO
 
—

(1) 
168

 
671

 
—

 
839

 
66

 
4/2/2012
 
2006
 Family Dollar
 
 St. Louis
 
 MO
 
—

(1) 
445

 
1,039

 
—

 
1,484

 
63

 
10/23/2012
 
2012
 Family Dollar
 
 St. Louis
 
 MO
 
—

(1) 
215

 
1,219

 
—

 
1,434

 
46

 
4/30/2013
 
2013
 Family Dollar
 
 Biloxi
 
 MS
 
—

(6) 
310

 
575

 
—

 
885

 
57

 
3/30/2012
 
2012
 Family Dollar
 
 Carriere
 
 MS
 
—

(6) 
200

 
599

 
—

 
799

 
59

 
3/30/2012
 
2012
 Family Dollar
 
 D'Iberville
 
 MS
 
—

(1) 
241

 
561

 
—

 
802

 
50

 
5/21/2012
 
2011
 Family Dollar
 
 Gulfport
 
 MS
 
—

(6) 
209

 
626

 
—

 
835

 
56

 
5/21/2012
 
2012
 Family Dollar
 
 Gulfport
 
 MS
 
—

(1) 
270

 
629

 
—

 
899

 
44

 
9/20/2012
 
2012
 Family Dollar
 
 Gulfport
 
 MS
 
—

(1) 
218

 
654

 
—

 
872

 
43

 
11/15/2012
 
2012
 Family Dollar
 
 Hattiesburg
 
 MS
 
—

(1) 
225

 
674

 
—

 
899

 
35

 
1/30/2013
 
2012
 Family Dollar
 
 Horn Lake
 
 MS
 
—

(1) 
225

 
676

 
—

 
901

 
51

 
8/22/2012
 
2012
 Family Dollar
 
 Kiln
 
 MS
 
—

(1) 
106

 
650

 
—

 
756

 
43

 
11/14/2012
 
2012

F-86

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Family Dollar
 
 Okolona
 
 MS
 
—

(1) 
64

 
578

 
—

 
642

 
46

 
7/31/2012
 
2012
 Family Dollar
 
 Winona
 
 MS
 
—

(1) 
146

 
585

 
—

 
731

 
47

 
7/31/2012
 
2012
 Family Dollar
 
 Lumberton
 
 NC
 
—

 
151

 
603

 
—

 
754

 
11

 
9/11/2013
 
2006
 Family Dollar
 
 Fort Yates
 
 ND
 
—

(5) 
126

 
715

 
—

 
841

 
77

 
1/31/2012
 
2010
 Family Dollar
 
 New Town
 
 ND
 
—

(5) 
105

 
942

 
—

 
1,047

 
101

 
1/31/2012
 
2011
 Family Dollar
 
 Rolla
 
 ND
 
—

(5) 
83

 
749

 
—

 
832

 
81

 
1/31/2012
 
2010
 Family Dollar
 
 Madison
 
 NE
 
—

(5) 
37

 
703

 
—

 
740

 
79

 
12/30/2011
 
2011
 Family Dollar
 
 Chimayo
 
 NM
 
—

(1) 
158

 
632

 
—

 
790

 
33

 
1/30/2013
 
2009
 Family Dollar
 
 Mountainair
 
 NM
 
—

(1) 
84

 
752

 
—

 
836

 
63

 
7/6/2012
 
2011
 Family Dollar
 
 Hawthorne
 
 NV
 
—

(6) 
191

 
764

 
—

 
955

 
68

 
6/1/2012
 
2012
 Family Dollar
 
 Lovelock
 
 NV
 
—

(6) 
185

 
742

 
—

 
927

 
69

 
5/4/2012
 
2012
 Family Dollar
 
 Silver Spring
 
 NV
 
—

(1) 
202

 
808

 
—

 
1,010

 
57

 
9/21/2012
 
2012
 Family Dollar
 
 Wells
 
 NV
 
—

(6) 
84

 
755

 
—

 
839

 
71

 
5/11/2012
 
2011
 Family Dollar
 
 Toledo
 
 OH
 
—

(1) 
306

 
917

 
—

 
1,223

 
43

 
2/25/2013
 
2012
 Family Dollar
 
 Warren
 
 OH
 
—

(1) 
170

 
681

 
—

 
851

 
51

 
9/11/2012
 
2012
 Family Dollar
 
 Stillwell
 
 OK
 
—

(5) 
40

 
768

 
—

 
808

 
86

 
1/6/2012
 
2011
 Family Dollar
 
 Tulsa
 
 OK
 
—

(6) 
220

 
878

 
—

 
1,098

 
70

 
7/30/2012
 
2012
 Family Dollar
 
 Martin
 
 SD
 
—

(5) 
85

 
764

 
—

 
849

 
82

 
1/31/2012
 
2009
 Family Dollar
 
 Harrison
 
 TN
 
—

(1) 
74

 
420

 
—

 
494

 
10

 
7/23/2013
 
2006
 Family Dollar
 
 Avinger
 
 TX
 
—

(1) 
40

 
761

 
—

 
801

 
50

 
10/22/2012
 
2012
 Family Dollar
 
 Caldwell
 
 TX
 
—

(1) 
138

 
552

 
—

 
690

 
49

 
5/29/2012
 
2012
 Family Dollar
 
 Chireno
 
 TX
 
—

(1) 
50

 
943

 
—

 
993

 
57

 
12/10/2012
 
2012
 Family Dollar
 
 Eagle Lake
 
 TX
 
—

(1) 
100

 
566

 
—

 
666

 
48

 
7/6/2012
 
2012
 Family Dollar
 
 Floydada
 
 TX
 
—

(5) 
36

 
681

 
—

 
717

 
77

 
12/30/2011
 
2010
 Family Dollar
 
 Kerens
 
 TX
 
—

(6) 
73

 
658

 
—

 
731

 
68

 
2/29/2012
 
2011
 Family Dollar
 
 Oakhurst
 
 TX
 
—

(1) 
36

 
683

 
—

 
719

 
42

 
12/12/2012
 
2012
 Family Dollar
 
 Plano
 
 TX
 
—

(1) 
468

 
869

 
—

 
1,337

 
20

 
8/1/2013
 
2013
 Family Dollar
 
 Kemmerer
 
 WY
 
—

(1) 
45

 
853

 
—

 
898

 
40

 
2/22/2013
 
2013
 Famous Dave's
 
 Independence
 
 MO
 
—

(1) 
620

 
422

 
—

 
1,042

 
12

 
6/27/2013
 
1999
 Farmers Group, Inc.
 
 Simi Valley
 
 CA
 
25,620

 
11,851

 
31,096

 
—

 
42,947

 
314

 
11/5/2013
 
1982
 Farmers New World Life Insurance Company
 
 Mercer Island
 
 WA
 
29,161

 
24,287

 
28,210

 
—

 
52,497

 
231

 
11/5/2013
 
1982

F-87

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 FedEx
 
 Lowell
 
 AR
 
—

(1) 
396

 
7,521

 
—

 
7,917

 
382

 
3/15/2013
 
2012
 FedEx
 
 Yuma
 
 AZ
 
—

 
—

 
2,076

 
—

 
2,076

 
148

 
10/17/2012
 
2011
 FedEx
 
 Chico
 
 CA
 
—

(1) 
308

 
2,776

 
—

 
3,084

 
198

 
11/9/2012
 
2006
 FedEx
 
 Commerce City
 
 CO
 
—

(4) 
6,556

 
26,224

 
—

 
32,780

 
2,799

 
3/20/2012
 
2007
 FedEx
 
 Melbourne
 
 FL
 
—

(1) 
159

 
1,433

 
—

 
1,592

 
36

 
7/26/2013
 
1989
 FedEx
 
 Kankakee
 
 IL
 
—

(1) 
195

 
1,103

 
—

 
1,298

 
107

 
5/31/2012
 
2003
 FedEx
 
 Mt. Vernon
 
 IL
 
—

(1) 
222

 
1,259

 
—

 
1,481

 
122

 
5/31/2012
 
2009
 FedEx
 
 Quincy
 
 IL
 
—

 
371

 
2,101

 
—

 
2,472

 
160

 
9/28/2012
 
2012
 FedEx
 
 Evansville
 
 IN
 
—

(1) 
665

 
2,661

 
—

 
3,326

 
257

 
5/31/2012
 
2003
 FedEx
 
 Kokomo
 
 IN
 
—

 
186

 
3,541

 
—

 
3,727

 
378

 
3/16/2012
 
2012
 FedEx
 
 Hazard
 
 KY
 
—

 
215

 
4,085

 
—

 
4,300

 
312

 
9/28/2012
 
2012
 FedEx
 
 London
 
 KY
 
—

(1) 
191

 
1,081

 
—

 
1,272

 
104

 
5/31/2012
 
2000
 FedEx
 
 Grand Rapids
 
 MI
 
4,800

 
1,797

 
7,189

 
—

 
8,986

 
694

 
6/14/2012
 
2012
 FedEx
 
 Port Huron
 
 MI
 
—

(1) 
125

 
1,121

 
—

 
1,246

 
40

 
5/31/2013
 
2003
 FedEx
 
 Roseville
 
 MN
 
—

 
1,462

 
8,282

 
—

 
9,744

 
547

 
11/30/2012
 
2012
 FedEx
 
 Butte
 
 MT
 
5,060

 
403

 
7,653

 
—

 
8,056

 
1,050

 
9/27/2011
 
2011
 FedEx
 
 Belmont
 
 NH
 
—

(4) 
265

 
2,386

 
—

 
2,651

 
291

 
12/29/2011
 
2011
 FedEx
 
 Wendover
 
 NV
 
—

(1) 
262

 
1,483

 
—

 
1,745

 
75

 
2/25/2013
 
2012
 FedEx
 
 Winnemucca
 
 NV
 
—

(1) 
280

 
1,585

 
—

 
1,865

 
81

 
2/25/2013
 
2012
 FedEx
 
 Blauvelt
 
 NY
 
—

 
14,420

 
26,779

 
—

 
41,199

 
2,859

 
4/5/2012
 
2012
 FedEx
 
 Chillicothe
 
 OH
 
—

(1) 
143

 
1,284

 
—

 
1,427

 
124

 
5/31/2012
 
2000
 FedEx
 
 Mt. Pleasant
 
 PA
 
—

(1) 
454

 
1,814

 
98

 
2,366

 
179

 
5/31/2012
 
2001
 FedEx
 
 Blountville
 
 TN
 
—

(4) 
562

 
5,056

 
—

 
5,618

 
591

 
2/3/2012
 
2009
 FedEx
 
 Humboldt
 
 TN
 
—

 
239

 
4,543

 
—

 
4,782

 
416

 
7/11/2012
 
2008
 FedEx
 
 Bryan
 
 TX
 
—

(1) 
1,422

 
3,318

 
—

 
4,740

 
320

 
6/15/2012
 
2011
 FedEx
 
 Omak
 
 WA
 
—

 
252

 
1,425

 
—

 
1,677

 
109

 
9/27/2012
 
2012
 FedEx
 
 Wenatchee
 
 WA
 
—

 
266

 
2,393

 
—

 
2,659

 
183

 
9/28/2012
 
2012
 FedEx
 
 Parkersburg
 
 WV
 
—

 
193

 
3,671

 
—

 
3,864

 
280

 
9/20/2012
 
2012
 FedEx Ground
 
 Greenville
 
 NC
 
—

(5) 
363

 
6,903

 
—

 
7,266

 
772

 
2/22/2012
 
2011


F-88

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 FedEx Ground
 
 Tulsa
 
 OK
 
—

(5) 
458

 
8,695

 
—

 
9,153

 
972

 
2/22/2012
 
2011
 First Bank
 
 Pinellas Park
 
 FL
 
—

 
630

 
1,470

 
—

 
2,100

 
20

 
10/1/2013
 
1981
 Fresenius
 
 Aurora
 
 IL
 
—

 
287

 
2,584

 
—

 
2,871

 
182

 
7/13/2012
 
2009
 Fresenius
 
 Chicago
 
 IL
 
—

 
588

 
1,764

 
—

 
2,352

 
117

 
7/31/2012
 
2009
 Fresenius
 
 Waukegan
 
 IL
 
—

 
94

 
1,792

 
—

 
1,886

 
119

 
7/31/2012
 
2011
 Fresenius
 
 Peru
 
 IN
 
—

 
69

 
1,305

 
—

 
1,374

 
92

 
6/27/2012
 
1982
 Fresenius
 
 Bossier City
 
 LA
 
—

(1) 
120

 
682

 
—

 
802

 
29

 
1/30/2013
 
2008
 Fresenius
 
 Caro
 
 MI
 
—

(1) 
92

 
1,744

 
—

 
1,836

 
130

 
6/5/2012
 
2009
 Fresenius
 
 Jackson
 
 MI
 
—

 
137

 
2,603

 
—

 
2,740

 
194

 
6/5/2012
 
2008
 Fresenius
 
 Albermarle
 
 NC
 
—

(1) 
139

 
1,253

 
—

 
1,392

 
39

 
4/30/2013
 
2008
 Fresenius
 
 Angier
 
 NC
 
—

(1) 
203

 
1,152

 
—

 
1,355

 
36

 
4/30/2013
 
2012
 Fresenius
 
 Asheboro
 
 NC
 
—

 
323

 
2,903

 
—

 
3,226

 
91

 
4/30/2013
 
2012
 Fresenius
 
 Taylorsville
 
 NC
 
—

(1) 
275

 
1,099

 
—

 
1,374

 
34

 
4/30/2013
 
2011
 Fresenius
 
 Warsaw
 
 NC
 
—

(1) 
75

 
1,428

 
—

 
1,503

 
78

 
11/13/2012
 
2003
 Fresenius
 
 Kings Mills
 
 OH
 
—

(1) 
399

 
598

 
—

 
997

 
45

 
6/5/2012
 
2007
 Fresenius
 
 Dallas
 
 TX
 
—

(1) 
377

 
1,132

 
—

 
1,509

 
44

 
2/28/2013
 
1958
 GE Aviation
 
 Auburn
 
 AL
 
—

 
1,627

 
30,920

 
—

 
32,547

 
1,767

 
11/21/2012
 
2012
 General Mills
 
 Geneva
 
 IL
 
16,555

 
7,457

 
22,371

 
—

 
29,828

 
2,161

 
5/23/2012
 
1998
 General Mills
 
 Fort Wayne
 
 IN
 
—

(1) 
2,533

 
48,130

 
—

 
50,663

 
3,425

 
10/18/2012
 
2012
 General Motors Financial Company
 
 Arlington
 
 TX
 
25,552

 
7,901

 
35,553

 
—

 
43,454

 
328

 
11/5/2013
 
1999
 Golden Corral
 
 Albany
 
 GA
 
—

(1) 
460

 
1,863

 
—

 
2,323

 
53

 
6/27/2013
 
1998
 Golden Corral
 
 Brunswick
 
 GA
 
—

(1) 
390

 
2,093

 
—

 
2,483

 
60

 
6/27/2013
 
1998
 Golden Corral
 
 McDonough
 
 GA
 
—

(1) 
930

 
3,936

 
—

 
4,866

 
113

 
6/27/2013
 
2004
 Golden Corral
 
 Council Bluffs
 
 IA
 
—

(1) 
1,140

 
1,460

 
—

 
2,600

 
42

 
6/27/2013
 
1998
 Golden Corral
 
 Evansville
 
 IN
 
—

(1) 
670

 
2,707

 
—

 
3,377

 
78

 
6/27/2013
 
1999
 Golden Corral
 
 Evansville
 
 IN
 
—

(1) 
640

 
944

 
—

 
1,584

 
27

 
6/27/2013
 
1999
 Golden Corral
 
 Fort Wayne
 
 IN
 
—

(1) 
820

 
1,935

 
—

 
2,755

 
55

 
6/27/2013
 
1999
 Golden Corral
 
 Kokomo
 
 IN
 
—

(1) 
780

 
2,107

 
—

 
2,887

 
60

 
6/27/2013
 
2000
 Golden Corral
 
 Elizabethtown
 
 KY
 
—

(1) 
760

 
2,753

 
—

 
3,513

 
79

 
6/27/2013
 
1997
 Golden Corral
 
 Henderson
 
 KY
 
—

(1) 
600

 
1,586

 
—

 
2,186

 
45

 
6/27/2013
 
1999
 Golden Corral
 
 Blue Springs
 
 MO
 
—

(1) 
810

 
1,346

 
—

 
2,156

 
39

 
6/27/2013
 
2000

F-89

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Golden Corral
 
 Flowood
 
 MS
 
—

(1) 
680

 
2,730

 
—

 
3,410

 
78

 
6/27/2013
 
1999
 Golden Corral
 
 Aberdeen
 
 NC
 
—

(1) 
690

 
1,566

 
—

 
2,256

 
45

 
6/27/2013
 
1994
 Golden Corral
 
 Burlington
 
 NC
 
—

(1) 
840

 
2,319

 
—

 
3,159

 
66

 
6/27/2013
 
1993
 Golden Corral
 
 Hickory
 
 NC
 
—

(1) 
260

 
2,658

 
—

 
2,918

 
76

 
6/27/2013
 
1994
 Golden Corral
 
 Bellevue
 
 NE
 
—

(1) 
520

 
1,433

 
—

 
1,953

 
41

 
6/27/2013
 
1999
 Golden Corral
 
 Lincoln
 
 NE
 
—

(1) 
300

 
2,930

 
—

 
3,230

 
84

 
6/27/2013
 
2000
 Golden Corral
 
 Farmington
 
 NM
 
—

(1) 
270

 
3,174

 
—

 
3,444

 
91

 
6/27/2013
 
1996
 Golden Corral
 
 Columbus
 
 OH
 
—

(1) 
770

 
2,476

 
—

 
3,246

 
71

 
6/27/2013
 
1995
 Golden Corral
 
 Tulsa
 
 OK
 
—

(1) 
280

 
3,890

 
—

 
4,170

 
112

 
6/27/2013
 
1999
 Golden Corral
 
 Rock Hill
 
 SC
 
—

(1) 
320

 
2,130

 
—

 
2,450

 
61

 
6/27/2013
 
1999
 Golden Corral
 
 Cookeville
 
 TN
 
—

(1) 
800

 
1,937

 
—

 
2,737

 
56

 
6/27/2013
 
1999
 Golden Corral
 
 Bristol
 
 VA
 
—

(1) 
750

 
2,276

 
—

 
3,026

 
65

 
6/27/2013
 
2000
 Goodfire BBQ
 
 San Antonio
 
 TX
 
—

(1) 
350

 
341

 
—

 
691

 
10

 
6/27/2013
 
1983
 Grandy's
 
 Hobbs
 
 NM
 
—

(1) 
815

 
—

 
—

 
815

 
—

 
6/27/2013
 
1984
 Grandy's
 
 Ardmore
 
 OK
 
—

(1) 
454

 
—

 
—

 
454

 
—

 
6/27/2013
 
1983
 Grandy's
 
 Moore
 
 OK
 
—

(1) 
320

 
428

 
—

 
748

 
12

 
6/27/2013
 
1987
 Grandy's
 
 Oklahoma City
 
 OK
 
—

(1) 
260

 
380

 
—

 
640

 
11

 
6/27/2013
 
1985
 Grandy's
 
 Oklahoma City
 
 OK
 
—

(1) 
320

 
289

 
—

 
609

 
8

 
6/27/2013
 
1984
 GSA
 
 Birmingham
 
 AL
 
10,568

 
1,400

 
8,830

 
—

 
10,230

 
84

 
11/5/2013
 
2005
 GSA
 
 Mobile
 
 AL
 
—

(1) 
268

 
5,095

 
—

 
5,363

 
420

 
6/19/2012
 
1995
 GSA
 
 Birmingham
 
 AL
 
17,640

 
2,982

 
19,982

 
—

 
22,964

 
193

 
11/5/2013
 
2007
 GSA
 
 Springerville
 
 AZ
 
—

(1) 
148

 
2,810

 
—

 
2,958

 
232

 
7/2/2012
 
2006
 GSA
 
 Craig
 
 CO
 
—

(5) 
129

 
1,159

 
—

 
1,288

 
128

 
12/30/2011
 
2011
 GSA
 
 Cocoa
 
 FL
 
—

 
253

 
1,435

 
—

 
1,688

 
164

 
12/13/2011
 
2009
 GSA
 
 Stuart
 
 FL
 
—

(1) 
900

 
3,600

 
—

 
4,500

 
363

 
3/5/2012
 
2011
 GSA
 
 Grangeville
 
 ID
 
—

 
317

 
6,023

 
—

 
6,340

 
607

 
3/5/2012
 
2007
 GSA
 
 Kansas City
 
 KS
 
16,872

 
4,264

 
29,678

 
—

 
33,942

 
276

 
11/5/2013
 
2003
 GSA
 
 Springfield
 
 MO
 
—

(1) 
131

 
2,489

 
—

 
2,620

 
228

 
5/15/2012
 
2011
 GSA
 
 Albany
 
 NY
 
10,137

 
2,470

 
11,836

 
—

 
14,306

 
124

 
11/5/2013
 
2008
 GSA
 
 Freeport
 
 NY
 
—

(1) 
843

 
3,372

 
—

 
4,215

 
371

 
1/10/2012
 
1960
 GSA
 
 Plattsburg
 
 NY
 
—

(1) 
508

 
4,572

 
—

 
5,080

 
377

 
6/19/2012
 
2008
 GSA
 
 Warren
 
 PA
 
—

(1) 
341

 
3,114

 
—

 
3,455

 
268

 
6/19/2012
 
2008

F-90

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 GSA
 
 Ponce
 
 PR
 
—

 
1,780

 
9,297

 
—

 
11,077

 
128

 
11/5/2013
 
2000
 GSA
 
 Austin
 
 TX
 
5,046

 
1,570

 
3,057

 
—

 
4,627

 
37

 
11/5/2013
 
2005
 GSA
 
 Fort Worth
 
 TX
 
—

(1) 
477

 
4,290

 
—

 
4,767

 
393

 
5/9/2012
 
2010
 GSA
 
 Gloucester
 
 VA
 
—

(1) 
287

 
1,628

 
—

 
1,915

 
134

 
6/19/2012
 
1997
 Habanero's Mexican Grill
 
 Hueytown
 
 AL
 
—

(1) 
60

 
639

 
—

 
699

 
18

 
6/27/2013
 
1987
 Hanesbrands
 
 Rural Hall
 
 NC
 
—

 
1,082

 
22,565

 
—

 
23,647

 
1,426

 
12/21/2012
 
1989
 Hardee's
 
 Alma
 
 GA
 
—

(1) 
80

 
502

 
—

 
582

 
14

 
6/27/2013
 
1992
 Hardee's
 
 Brunswick
 
 GA
 
—

(1) 
200

 
494

 
—

 
694

 
14

 
6/27/2013
 
1992
 Hardee's
 
 Claxton
 
 GA
 
—

(1) 
170

 
469

 
—

 
639

 
13

 
6/27/2013
 
1986
 Hardee's
 
 Glennville
 
 GA
 
—

(1) 
170

 
450

 
—

 
620

 
12

 
6/27/2013
 
1986
 Hardee's
 
 Hazlehurst
 
 GA
 
—

(1) 
300

 
263

 
—

 
563

 
7

 
6/27/2013
 
1982
 Hardee's
 
 Metter
 
 GA
 
—

(1) 
230

 
369

 
—

 
599

 
10

 
6/27/2013
 
1984
 Hardee's
 
 Richmond Hill
 
 GA
 
—

(1) 
390

 
149

 
—

 
539

 
4

 
6/27/2013
 
1990
 Hardee's
 
 Savannah
 
 GA
 
—

(1) 
130

 
456

 
—

 
586

 
13

 
6/27/2013
 
1987
 Hardee's
 
 Swainsboro
 
 GA
 
—

(1) 
470

 
107

 
—

 
577

 
3

 
6/27/2013
 
1992
 Hardee's
 
 Vidalia
 
 GA
 
—

(1) 
220

 
377

 
—

 
597

 
10

 
6/27/2013
 
1990
 Hardee's
 
 Old Fort
 
 NC
 
—

(1) 
300

 
904

 
—

 
1,204

 
25

 
6/27/2013
 
1992
 Hardee's
 
 Aiken
 
 SC
 
—

(1) 
220

 
450

 
—

 
670

 
12

 
6/27/2013
 
1977
 Hardee's
 
 Chapin
 
 SC
 
—

(1) 
380

 
741

 
—

 
1,121

 
21

 
6/27/2013
 
1993
 Hardee's
 
 Bloomingdale
 
 TN
 
—

(1) 
270

 
844

 
—

 
1,114

 
23

 
6/27/2013
 
1992
 Hardee's
 
 Clinton
 
 TN
 
—

(1) 
390

 
893

 
—

 
1,283

 
25

 
6/27/2013
 
1992
 Hardee's
 
 Crossville
 
 TN
 
—

(1) 
300

 
689

 
—

 
989

 
19

 
6/27/2013
 
1992
 Hardee's Red Burrito
 
 Attalla
 
 AL
 
—

(1) 
220

 
896

 
—

 
1,116

 
25

 
6/27/2013
 
1993
 Hash House A-Go-Go Restaurant
 
 Las Vegas
 
 NV
 
—

(1) 
580

 
1,347

 
—

 
1,927

 
39

 
6/27/2013
 
1997
 Home Depot
 
 Columbia
 
 SC
 
13,776

 
2,911

 
15,463

 
—

 
18,374

 
2,748

 
11/1/2009
 
2009
 Houlihan's
 
 Plymouth Meeting
 
 PA
 
—

(1) 
870

 
2,015

 
—

 
2,885

 
58

 
6/27/2013
 
1974
 Huntington National Bank
 
 Conneaut
 
 OH
 
—

 
205

 
477

 
—

 
682

 
6

 
10/1/2013
 
1971
 Huntington National Bank
 
 Jefferson
 
 OH
 
—

 
255

 
765

 
—

 
1,020

 
10

 
10/1/2013
 
1963


F-91

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Hy-Vee
 
 Vermillion
 
 SD
 
—

 
409

 
3,684

 
—

 
4,093

 
194

 
4/8/2013
 
2003
 IHOP
 
 Homewood
 
 AL
 
—

(1) 
610

 
1,762

 
—

 
2,372

 
50

 
6/27/2013
 
1996
 IHOP
 
 Castle Rock
 
 CO
 
—

(1) 
320

 
2,334

 
—

 
2,654

 
67

 
6/27/2013
 
1999
 IHOP
 
 Greeley
 
 CO
 
—

(1) 
120

 
1,538

 
—

 
1,658

 
44

 
6/27/2013
 
1998
 IHOP
 
 Pueblo
 
 CO
 
—

(1) 
330

 
1,589

 
—

 
1,919

 
46

 
6/27/2013
 
1997
 IHOP
 
 Stockbridge
 
 GA
 
—

(1) 
580

 
2,091

 
—

 
2,671

 
60

 
6/27/2013
 
1997
 IHOP
 
 Natchitoches
 
 LA
 
—

 
750

 
89

 
—

 
839

 
3

 
6/27/2013
 
1990
 IHOP
 
 Roseville
 
 MI
 
—

(1) 
340

 
1,071

 
—

 
1,411

 
31

 
6/27/2013
 
1997
 IHOP
 
 Kansas City
 
 MO
 
—

(1) 
630

 
1,002

 
—

 
1,632

 
29

 
6/27/2013
 
1998
 IHOP
 
 Southaven
 
 MS
 
—

(1) 
350

 
2,108

 
—

 
2,458

 
60

 
6/27/2013
 
1997
 IHOP
 
 Poughkeepsie
 
 NY
 
—

(1) 
430

 
1,129

 
—

 
1,559

 
32

 
6/27/2013
 
1996
 IHOP
 
 Greenville
 
 SC
 
—

(1) 
610

 
1,551

 
—

 
2,161

 
44

 
6/27/2013
 
1998
 IHOP
 
 Clarksville
 
 TN
 
—

(1) 
530

 
1,346

 
—

 
1,876

 
39

 
6/27/2013
 
1997
 IHOP
 
 Memphis
 
 TN
 
—

(1) 
750

 
2,009

 
—

 
2,759

 
58

 
6/27/2013
 
1997
 IHOP
 
 Murfreesboro
 
 TN
 
—

(1) 
600

 
1,687

 
—

 
2,287

 
48

 
6/27/2013
 
1998
 IHOP
 
 Fort Worth
 
 TX
 
—

(1) 
560

 
1,879

 
—

 
2,439

 
54

 
6/27/2013
 
1994
 IHOP
 
 Houston
 
 TX
 
—

(1) 
760

 
2,462

 
—

 
3,222

 
71

 
6/27/2013
 
1996
 IHOP
 
 Killeen
 
 TX
 
—

(1) 
380

 
1,028

 
—

 
1,408

 
29

 
6/27/2013
 
1997
 IHOP
 
 Lake Jackson
 
 TX
 
—

(1) 
370

 
2,018

 
—

 
2,388

 
58

 
6/27/2013
 
1997
 IHOP
 
 Leon Valley
 
 TX
 
—

(1) 
650

 
2,055

 
—

 
2,705

 
59

 
6/27/2013
 
1997
 IHOP
 
 Auburn
 
 WA
 
—

(1) 
780

 
1,878

 
—

 
2,658

 
54

 
6/27/2013
 
1997
 Invesco Holding Co. Ltd.
 
 Denver
 
 CO
 
43,700

 
12,650

 
66,398

 
—

 
79,048

 
607

 
11/5/2013
 
2008
 Iron Mountain
 
 Columbus
 
 OH
 
—

(1) 
405

 
3,642

 
—

 
4,047

 
278

 
9/28/2012
 
1954
 Jack in the Box
 
 Avondale
 
 AZ
 
—

(1) 
110

 
2,237

 
—

 
2,347

 
62

 
6/27/2013
 
1998
 Jack in the Box
 
 Chandler
 
 AZ
 
—

(1) 
450

 
1,447

 
—

 
1,897

 
40

 
6/27/2013
 
1998
 Jack in the Box
 
 Folsom
 
 CA
 
—

(1) 
280

 
2,423

 
—

 
2,703

 
67

 
6/27/2013
 
1997
 Jack in the Box
 
 Fresno
 
 CA
 
—

(1) 
190

 
1,810

 
—

 
2,000

 
50

 
6/27/2013
 
1997
 Jack in the Box
 
 West Sacramento
 
 CA
 
—

(1) 
590

 
1,710

 
—

 
2,300

 
47

 
6/27/2013
 
1997
 Jack in the Box
 
 Burley
 
 ID
 
—

(1) 
240

 
1,430

 
—

 
1,670

 
40

 
6/27/2013
 
2000
 Jack in the Box
 
 Moscow
 
 ID
 
—

(1) 
350

 
1,110

 
—

 
1,460

 
31

 
6/27/2013
 
1992
 Jack in the Box
 
 Belleville
 
 IL
 
—

(1) 
200

 
966

 
—

 
1,166

 
27

 
6/27/2013
 
1987
 Jack in the Box
 
 Florissant
 
 MO
 
—

(1) 
502

 
1,515

 
—

 
2,045

 
42

 
6/27/2013
 
1997

F-92

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Jack in the Box
 
 St. Louis
 
 MO
 
—

(1) 
420

 
1,494

 
—

 
1,914

 
41

 
6/27/2013
 
1998
 Jack in the Box
 
 Las Vegas
 
 NV
 
—

(1) 
680

 
1,533

 
—

 
2,213

 
42

 
6/27/2013
 
1997
 Jack in the Box
 
 Salem
 
 OR
 
—

(1) 
580

 
1,301

 
—

 
1,881

 
36

 
6/27/2013
 
1999
 Jack in the Box
 
 Tigard
 
 OR
 
—

(1) 
620

 
1,361

 
—

 
1,981

 
38

 
6/27/2013
 
1999
 Jack in the Box
 
 Arlington
 
 TX
 
—

(1) 
420

 
1,325

 
—

 
1,745

 
37

 
6/27/2013
 
1993
 Jack in the Box
 
 Arlington
 
 TX
 
—

(1) 
420

 
1,365

 
—

 
1,785

 
38

 
6/27/2013
 
1995
 Jack in the Box
 
 Corinth
 
 TX
 
—

(1) 
400

 
1,416

 
—

 
1,816

 
39

 
6/27/2013
 
1997
 Jack in the Box
 
 Farmers Branch
 
 TX
 
—

(1) 
460

 
1,640

 
—

 
2,100

 
45

 
6/27/2013
 
1988
 Jack in the Box
 
 Fort Worth
 
 TX
 
—

(1) 
490

 
1,702

 
—

 
2,192

 
47

 
6/27/2013
 
1991
 Jack in the Box
 
 Georgetown
 
 TX
 
—

(1) 
600

 
1,508

 
—

 
2,108

 
42

 
6/27/2013
 
1999
 Jack in the Box
 
 Granbury
 
 TX
 
—

(1) 
380

 
1,449

 
—

 
1,829

 
40

 
6/27/2013
 
1999
 Jack in the Box
 
 Grand Prairie
 
 TX
 
—

(1) 
600

 
1,856

 
—

 
2,456

 
51

 
6/27/2013
 
1995
 Jack in the Box
 
 Grapevine
 
 TX
 
—

(1) 
470

 
1,344

 
—

 
1,814

 
37

 
6/27/2013
 
1992
 Jack in the Box
 
 Gun Barrel City
 
 TX
 
—

(1) 
300

 
961

 
—

 
1,261

 
27

 
6/27/2013
 
1998
 Jack in the Box
 
 Houston
 
 TX
 
—

(1) 
460

 
1,437

 
—

 
1,897

 
40

 
6/27/2013
 
1993
 Jack in the Box
 
 Houston
 
 TX
 
—

(1) 
390

 
1,172

 
—

 
1,562

 
32

 
6/27/2013
 
1993
 Jack in the Box
 
 Houston
 
 TX
 
—

(1) 
330

 
1,845

 
—

 
2,175

 
51

 
6/27/2013
 
1996
 Jack in the Box
 
 Houston
 
 TX
 
—

(1) 
410

 
1,621

 
—

 
2,031

 
45

 
6/27/2013
 
1992
 Jack in the Box
 
 Houston
 
 TX
 
—

(1) 
450

 
1,396

 
—

 
1,846

 
39

 
6/27/2013
 
1992
 Jack in the Box
 
 Hutchins
 
 TX
 
—

(1) 
330

 
1,363

 
—

 
1,693

 
38

 
6/27/2013
 
1998
 Jack in the Box
 
 Kingswood
 
 TX
 
—

(1) 
430

 
955

 
—

 
1,385

 
26

 
6/27/2013
 
1992
 Jack in the Box
 
 Lufkin
 
 TX
 
—

(1) 
440

 
1,544

 
—

 
1,984

 
43

 
6/27/2013
 
1999
 Jack in the Box
 
 Lufkin
 
 TX
 
—

(1) 
450

 
1,563

 
—

 
2,013

 
43

 
6/27/2013
 
1998
 Jack in the Box
 
 Mesquite
 
 TX
 
—

(1) 
560

 
1,652

 
—

 
2,212

 
46

 
6/27/2013
 
1992
 Jack in the Box
 
 Nacogdoches
 
 TX
 
—

(1) 
340

 
1,320

 
—

 
1,660

 
37

 
6/27/2013
 
1998
 Jack in the Box
 
 Orange
 
 TX
 
—

(1) 
270

 
1,661

 
—

 
1,931

 
46

 
6/27/2013
 
1999
 Jack in the Box
 
 Port Arthur
 
 TX
 
—

(1) 
460

 
1,405

 
—

 
1,865

 
39

 
6/27/2013
 
1994
 Jack in the Box
 
 Rockwall
 
 TX
 
—

(1) 
450

 
1,275

 
—

 
1,725

 
35

 
6/27/2013
 
1992
 Jack in the Box
 
 San Antonio
 
 TX
 
—

(1) 
400

 
1,244

 
—

 
1,644

 
34

 
6/27/2013
 
1999
 Jack in the Box
 
 San Antonio
 
 TX
 
—

(1) 
470

 
1,256

 
—

 
1,726

 
35

 
6/27/2013
 
1999
 Jack in the Box
 
 San Antonio
 
 TX
 
—

(1) 
350

 
1,249

 
—

 
1,599

 
35

 
6/27/2013
 
1992
 Jack in the Box
 
 Spring
 
 TX
 
—

(1) 
450

 
1,487

 
—

 
1,937

 
41

 
6/27/2013
 
1993

F-93

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Jack in the Box
 
 Spring
 
 TX
 
—

(1) 
570

 
1,340

 
—

 
1,910

 
37

 
6/27/2013
 
1999
 Jack in the Box
 
 Tyler
 
 TX
 
—

(1) 
450

 
1,025

 
—

 
1,475

 
28

 
6/27/2013
 
1999
 Jack in the Box
 
 Weatherford
 
 TX
 
—

(1) 
480

 
1,329

 
—

 
1,809

 
37

 
6/27/2013
 
1999
 Jack in the Box
 
 Enumclaw
 
 WA
 
—

(1) 
380

 
1,238

 
—

 
1,618

 
34

 
6/27/2013
 
1997
 Joe's Crab Shack
 
 Lilburn
 
 GA
 
—

(1) 
800

 
1,917

 
—

 
2,717

 
55

 
6/27/2013
 
1999
 Joe's Crab Shack
 
 Houston
 
 TX
 
—

(1) 
900

 
1,749

 
—

 
2,649

 
50

 
6/27/2013
 
1994
 John Deere
 
 Davenport
 
 IA
 
—

(1) 
1,161

 
22,052

 
—

 
23,213

 
2,130

 
5/31/2012
 
2003
 Johnson Controls, Inc.
 
 Pinellas Park
 
 FL
 
16,200

 
4,538

 
23,842

 
—

 
28,380

 
242

 
11/5/2013
 
2001
 Kaiser Foundation
 
 Cupertino
 
 CA
 
—

(1) 
14,236

 
42,708

 
—

 
56,944

 
1,848

 
2/20/2013
 
2005
 Ker's WingHouse Bar and Grill
 
 Brandon
 
 FL
 
—

(1) 
340

 
654

 
—

 
994

 
19

 
6/27/2013
 
1999
 Ker's WingHouse Bar and Grill
 
 Clearwater
 
 FL
 
—

(1) 
550

 
627

 
—

 
1,177

 
18

 
6/27/2013
 
1979
 Key Bank
 
 Spencerport
 
 NY
 
—

(1) 
59

 
1,112

 
—

 
1,171

 
35

 
6/5/2013
 
1960
 Key Bank
 
 Berea
 
 OH
 
—

 
234

 
1,326

 
—

 
1,560

 
18

 
10/1/2013
 
1958
 KFC
 
 Deming
 
 NM
 
—

(1) 
220

 
691

 
—

 
911

 
19

 
6/27/2013
 
1992
 KFC
 
 Las Cruces
 
 NM
 
—

(1) 
270

 
498

 
—

 
768

 
14

 
6/27/2013
 
1990
 KFC
 
 Appleton
 
 WI
 
—

(1) 
350

 
874

 
—

 
1,224

 
24

 
6/27/2013
 
1988
 Kohl's
 
 Howell
 
 MI
 
—

 
547

 
10,399

 
—

 
10,946

 
548

 
3/28/2013
 
2003
 Koninklijke Ahold, N.V.
 
 Levittown
 
 PA
 
13,340

 
4,716

 
9,955

 
—

 
14,671

 
83

 
11/5/2013
 
2006
 Krystal
 
 Greenville
 
 AL
 
—

(1) 
195

 
1,147

 
—

 
1,367

 
32

 
6/27/2013
 
2000
 Krystal
 
 Montgomery
 
 AL
 
—

(1) 
259

 
1,036

 
—

 
1,295

 
91

 
9/21/2012
 
1964
 Krystal
 
 Montgomery
 
 AL
 
—

(1) 
560

 
829

 
—

 
1,389

 
23

 
6/27/2013
 
2000
 Krystal
 
 Phoenix City
 
 AL
 
—

(1) 
366

 
1,465

 
—

 
1,831

 
129

 
9/21/2012
 
1980
 Krystal
 
 Scottsboro
 
 AL
 
—

(1) 
20

 
1,157

 
—

 
1,177

 
32

 
6/27/2013
 
1999
 Krystal
 
 Tuscaloosa
 
 AL
 
—

(1) 
206

 
1,165

 
—

 
1,371

 
103

 
9/21/2012
 
1976
 Krystal
 
 Jacksonville
 
 FL
 
—

(1) 
574

 
574

 
—

 
1,148

 
51

 
9/21/2012
 
1990
 Krystal
 
 Orlando
 
 FL
 
—

(1) 
372

 
372

 
—

 
744

 
33

 
9/21/2012
 
1994


F-94

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Krystal
 
 Orlando
 
 FL
 
—

(1) 
669

 
446

 
—

 
1,115

 
39

 
9/21/2012
 
1995
 Krystal
 
 Plant City
 
 FL
 
—

(1) 
355

 
533

 
—

 
888

 
47

 
9/21/2012
 
2012
 Krystal
 
 St. Augustine
 
 FL
 
—

(1) 
411

 
411

 
—

 
822

 
36

 
9/21/2012
 
2012
 Krystal
 
 Albany
 
 GA
 
—

(1) 
309

 
721

 
—

 
1,030

 
63

 
9/21/2012
 
1962
 Krystal
 
 Atlanta
 
 GA
 
—

(1) 
166

 
664

 
—

 
830

 
58

 
9/21/2012
 
1973
 Krystal
 
 Augusta
 
 GA
 
—

(1) 
365

 
851

 
—

 
1,216

 
75

 
9/21/2012
 
1979
 Krystal
 
 Columbus
 
 GA
 
—

(1) 
622

 
934

 
—

 
1,556

 
82

 
9/21/2012
 
1977
 Krystal
 
 Decatur
 
 GA
 
—

(1) 
94

 
533

 
—

 
627

 
47

 
9/21/2012
 
1965
 Krystal
 
 East Point
 
 GA
 
—

(1) 
221

 
664

 
—

 
885

 
55

 
10/26/2012
 
1984
 Krystal
 
 Macon
 
 GA
 
—

(1) 
325

 
759

 
—

 
1,084

 
67

 
9/21/2012
 
1962
 Krystal
 
 Milledgeville
 
 GA
 
—

(1) 
261

 
609

 
—

 
870

 
54

 
9/21/2012
 
2011
 Krystal
 
 Snellville
 
 GA
 
—

(1) 
466

 
466

 
—

 
932

 
41

 
9/21/2012
 
1981
 Krystal
 
 Gulfport
 
 MS
 
—

(1) 
215

 
861

 
—

 
1,076

 
76

 
9/21/2012
 
2011
 Krystal
 
 Jackson
 
 MS
 
—

(1) 
285

 
1,140

 
—

 
1,425

 
100

 
9/21/2012
 
1978
 Krystal
 
 Jackson
 
 MS
 
—

(1) 
198

 
1,120

 
—

 
1,318

 
99

 
9/21/2012
 
1983
 Krystal
 
 Pearl
 
 MS
 
—

(1) 
426

 
638

 
—

 
1,064

 
56

 
9/21/2012
 
1976
 Krystal
 
 Chattanooga
 
 TN
 
—

(1) 
336

 
784

 
—

 
1,120

 
69

 
9/21/2012
 
2010
 Krystal
 
 Chattanooga
 
 TN
 
—

(1) 
500

 
947

 
—

 
1,447

 
26

 
6/27/2013
 
1994
 Krystal
 
 Knoxville
 
 TN
 
—

(1) 
369

 
246

 
—

 
615

 
22

 
9/21/2012
 
1970
 Kum & Go
 
 Bentonville
 
 AR
 
—

(1) 
587

 
1,370

 
—

 
1,957

 
83

 
11/20/2012
 
2009
 Kum & Go
 
 Lowell
 
 AR
 
—

(1) 
774

 
1,437

 
—

 
2,211

 
87

 
11/20/2012
 
2009
 Kum & Go
 
 Paragould
 
 AR
 
—

(1) 
708

 
2,123

 
—

 
2,831

 
149

 
9/28/2012
 
2012
 Kum & Go
 
 Rogers
 
 AR
 
—

(1) 
668

 
1,559

 
—

 
2,227

 
95

 
11/20/2012
 
2008
 Kum & Go
 
 Sherwood
 
 AR
 
—

(1) 
866

 
1,609

 
—

 
2,475

 
113

 
9/28/2012
 
2012
 Kum & Go
 
 Fountain
 
 CO
 
—

(1) 
1,131

 
1,696

 
—

 
2,827

 
95

 
12/24/2012
 
2012
 Kum & Go
 
 Monument
 
 CO
 
—

(1) 
1,192

 
1,457

 
—

 
2,649

 
82

 
12/24/2012
 
2012
 Kum & Go
 
 Muscatine
 
 IA
 
—

(1) 
794

 
1,853

 
—

 
2,647

 
104

 
12/31/2012
 
2012
 Kum & Go
 
 Ottumwa
 
 IA
 
—

(1) 
586

 
1,368

 
—

 
1,954

 
83

 
11/20/2012
 
1998
 Kum & Go
 
 Waukee
 
 IA
 
—

(1) 
1,280

 
1,280

 
—

 
2,560

 
54

 
3/28/2013
 
2012
 Kum & Go
 
 Tioga
 
 ND
 
—

(1) 
318

 
2,863

 
—

 
3,181

 
188

 
11/8/2012
 
2012
 Kum & Go
 
 Muskogee
 
 OK
 
—

(1) 
423

 
1,691

 
—

 
2,114

 
40

 
7/22/2013
 
2013
 Kum & Go
 
 Cheyenne
 
 WY
 
—

(1) 
411

 
2,327

 
—

 
2,738

 
131

 
12/27/2012
 
2012

F-95

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Leeann Chin
 
 Blaine
 
 MN
 
—

(1) 
480

 
528

 
—

 
1,008

 
15

 
6/27/2013
 
1996
 Leeann Chin
 
 Chanhassen
 
 MN
 
—

(1) 
450

 
763

 
—

 
1,213

 
21

 
6/27/2013
 
1995
 Leeann Chin
 
 Golden Valley
 
 MN
 
—

(1) 
270

 
776

 
—

 
1,046

 
21

 
6/27/2013
 
1996
 Logan's Roadhouse
 
 Huntsville
 
 AL
 
—

(1) 
520

 
4,797

 
—

 
5,317

 
138

 
6/27/2013
 
2003
 Logan's Roadhouse
 
 Fayetteville
 
 AR
 
—

(1) 
1,570

 
2,182

 
—

 
3,752

 
63

 
6/27/2013
 
2004
 Logan's Roadhouse
 
 Hattiesburg
 
 MS
 
—

(1) 
890

 
4,012

 
—

 
4,902

 
115

 
6/27/2013
 
2006
 Logan's Roadhouse
 
 Clarksville
 
 TN
 
—

(1) 
1,010

 
4,424

 
—

 
5,434

 
127

 
6/27/2013
 
1994
 Logan's Roadhouse
 
 Cleveland
 
 TN
 
—

(1) 
890

 
3,902

 
—

 
4,792

 
112

 
6/27/2013
 
2003
 Logan's Roadhouse
 
 El Paso
 
 TX
 
—

(1) 
320

 
4,731

 
—

 
5,051

 
136

 
6/27/2013
 
1999
 Long John Silver's
 
 Alamogordo
 
 NM
 
—

(1) 
160

 
574

 
—

 
734

 
16

 
6/27/2013
 
1977
 LongHorn Steakhouse
 
 Tampa
 
 FL
 
—

(1) 
370

 
1,852

 
—

 
2,222

 
53

 
6/27/2013
 
1999
 Lowe's
 
 New Orleans
 
 LA
 
15,643

 
10,317

 
20,728

 
—

 
31,045

 
172

 
11/5/2013
 
2005
 Mattress Firm
 
 Boise
 
 ID
 
—

(1) 
335

 
1,339

 
—

 
1,674

 
63

 
2/22/2013
 
2013
 Mattress Firm
 
 Columbus
 
 IN
 
—

(1) 
157

 
891

 
—

 
1,048

 
58

 
11/6/2012
 
2012
 Mattress Firm
 
 Raleigh
 
 NC
 
—

(1) 
1,091

 
1,091

 
—

 
2,182

 
77

 
9/28/2012
 
2012
 Mattress Firm
 
 Wilson
 
 NC
 
—

(1) 
373

 
692

 
—

 
1,065

 
49

 
9/28/2012
 
2012
 Mattress Firm
 
 Florence
 
 SC
 
—

(1) 
398

 
929

 
—

 
1,327

 
57

 
12/7/2012
 
2012
 Mattress Firm
 
 Rock Hill
 
 SC
 
—

(1) 
385

 
898

 
—

 
1,283

 
17

 
8/21/2013
 
2008
 Mattress Firm
 
 Nederland
 
 TX
 
—

(1) 
311

 
1,245

 
—

 
1,556

 
87

 
9/26/2012
 
2012
 McAlister's
 
 Murfreesboro
 
 TN
 
—

(1) 
310

 
720

 
—

 
1,030

 
21

 
6/27/2013
 
1985
 MetroPCS Wireless
 
 Richardson
 
 TX
 
—

 
1,292

 
19,606

 
—

 
20,898

 
168

 
11/5/2013
 
1987
 Michelin North America
 
 Louisville
 
 KY
 
—

(2) 
1,120

 
7,763

 
—

 
8,883

 
79

 
11/5/2013
 
2011
 Monro Muffler
 
 Waukesha
 
 WI
 
—

(1) 
228

 
684

 
—

 
912

 
17

 
7/23/2013
 
2002
 Morgan's Food's
 
 Pittsburgh
 
 PA
 
—

 
180

 
269

 
—

 
449

 
4

 
10/1/2013
 
1985
 Morgan's Food's
 
 Benwood
 
 WV
 
—

 
123

 
287

 
—

 
410

 
4

 
10/1/2013
 
2006
 Mo's Irish Pub Restaurant
 
 Wauwatosa
 
 WI
 
—

(1) 
550

 
818

 
—

 
1,368

 
23

 
6/27/2013
 
1977
 Mrs Baird's
 
 Dallas
 
 TX
 
—

(1) 
453

 
4,077

 
—

 
4,530

 
373

 
7/11/2012
 
2002
 Multi tenant (1000 Milwaukee Avenue)
 
 Glenview
 
 IL
 
55,523

 
14,016

 
73,313

 
—

 
87,329

 
665

 
11/5/2013
 
2001
 Multi tenant (15721 Park Row Boulevard)
 
 Houston
 
 TX
 
19,525

 
2,356

 
36,347

 
—

 
38,703

 
295

 
11/5/2013
 
2009
 Multi tenant (1585 Sawdust Road)
 
 The Woodlands
 
 TX
 
22,440

 
4,724

 
40,332

 
—

 
45,056

 
321

 
11/5/2013
 
2009

F-96

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Multi tenant (2211 Old Earhart Road)
 
 AnnArbor
 
 MI
 
29,356

 
3,520

 
39,594

 
—

 
43,114

 
314

 
11/5/2013
 
2013
 Multi tenant (26501 Aliso Creek Road)
 
 Aliso Viejo
 
 CA
 
40,024

 
18,726

 
31,970

 
—

 
50,696

 
266

 
11/5/2013
 
2005
 Multi tenant (5859 Farinon Drive)
 
 San Antonio
 
 TX
 
10,000

 
1,666

 
19,092

 
—

 
20,758

 
155

 
11/5/2013
 
2008
 Multi tenant (Columbia Pike)
 
 Silver Spring
 
 MD
 
—

 
2,190

 
26,635

 
766

 
29,591

 
203

 
11/5/2013
 
1986
 Multi tenant (Dodge Building)
 
 Omaha
 
 NE
 
—

(2) 
—

 
7,358

 
—

 
7,358

 
112

 
11/5/2013
 
2011
 Multi tenant (Landmark Building)
 
 Omaha
 
 NE
 
—

(2) 
—

 
10,156

 
4

 
10,160

 
253

 
11/5/2013
 
1991
 My Dentist
 
 Chickasha
 
 OK
 
—

(1) 
100

 
186

 
—

 
286

 
6

 
6/27/2013
 
2001
 National Tire & Battery
 
 Morrow
 
 GA
 
—

(1) 
397

 
1,586

 
—

 
1,983

 
146

 
6/5/2012
 
1992
 National Tire & Battery
 
 St. Louis
 
 MO
 
—

(1) 
756

 
924

 
—

 
1,680

 
63

 
10/31/2012
 
1998
 Nestle Holdings
 
 Breinigsville
 
 PA
 
46,494

 
—

 
66,948

 
—

 
66,948

 
681

 
11/5/2013
 
1994
 O'Reilly Auto Parts
 
 Oneonta
 
 AL
 
—

(1) 
81

 
460

 
—

 
541

 
37

 
8/2/2012
 
2000
 O'Reilly Auto Parts
 
 Laramie
 
 WY
 
—

(1) 
144

 
1,297

 
—

 
1,441

 
91

 
10/12/2012
 
1999
 Pearson
 
 Lawrence
 
 KS
 
15,177

 
2,548

 
18,057

 
—

 
20,605

 
156

 
11/5/2013
 
1997
 Pilot Flying J
 
 Carnesville
 
 GA
 
—

(1) 
1,867

 
7,466

 
—

 
9,333

 
494

 
1/31/2013
 
2000
 Pizza Hut
 
 Cooper City
 
 FL
 
—

(1) 
320

 
466

 
—

 
786

 
13

 
6/27/2013
 
1998
 Pizza Hut
 
 Marathon
 
 FL
 
—

(1) 
530

 
187

 
—

 
717

 
5

 
6/27/2013
 
1980
 Pizza Hut
 
 Bozeman
 
 MT
 
—

(1) 
150

 
343

 
—

 
493

 
10

 
6/27/2013
 
1976
 Pizza Hut
 
 Glasgow
 
 MT
 
—

(1) 
120

 
217

 
—

 
337

 
6

 
6/27/2013
 
1985
 Pizza Hut
 
 Laurel
 
 MT
 
—

(1) 
170

 
621

 
—

 
791

 
18

 
6/27/2013
 
1985
 Pizza Hut
 
 Livingston
 
 MT
 
—

(1) 
130

 
245

 
—

 
375

 
7

 
6/27/2013
 
1979
 Pizza Hut
 
 Knoxville
 
 TN
 
—

(1) 
300

 
546

 
—

 
846

 
16

 
6/27/2013
 
1992
 Pollo Tropical
 
 Davie
 
 FL
 
—

(1) 
280

 
1,490

 
—

 
1,770

 
41

 
6/27/2013
 
1993
 Pollo Tropical
 
 Fort Lauderdale
 
 FL
 
—

(1) 
190

 
1,242

 
—

 
1,432

 
34

 
6/27/2013
 
1996
 Pollo Tropical
 
 Lake Worth
 
 FL
 
—

(1) 
280

 
1,182

 
—

 
1,462

 
33

 
6/27/2013
 
1994
 Popeyes
 
 Starke
 
 FL
 
—

(1) 
380

 
—

 
—

 
380

 
—

 
6/27/2013
 
1997
 Popeyes
 
 Thomasville
 
 GA
 
—

(1) 
110

 
705

 
—

 
815

 
20

 
6/27/2013
 
1998
 Popeyes
 
 Valdosta
 
 GA
 
—

(1) 
240

 
599

 
—

 
839

 
17

 
6/27/2013
 
1998
 Popeyes
 
 New Orleans
 
 LA
 
—

(1) 
60

 
390

 
—

 
450

 
11

 
6/27/2013
 
1975


F-97

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31,
2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Popeyes
 
 Channelview
 
 TX
 
—

(1) 
220

 
401

 
—

 
621

 
11

 
6/27/2013
 
1980
 Popeyes
 
 Houston
 
 TX
 
—

(1) 
300

 
244

 
—

 
544

 
7

 
6/27/2013
 
1978
 Popeyes
 
 Houston
 
 TX
 
—

(1) 
190

 
452

 
—

 
642

 
13

 
6/27/2013
 
1978
 PriceRite
 
 Rochester
 
 NY
 
—

 
569

 
3,222

 
—

 
3,791

 
285

 
9/27/2012
 
2007
 Pulte Mortgage LLC
 
 Englewood
 
 CO
 
—

 
2,563

 
22,026

 
—

 
24,589

 
185

 
11/5/2013
 
2009
 Qdoba
 
 Flint
 
 MI
 
—

(1) 
110

 
990

 
—

 
1,100

 
52

 
3/29/2013
 
2006
 Qdoba
 
 Grand Blanc
 
 MI
 
—

(1) 
165

 
935

 
—

 
1,100

 
49

 
3/29/2013
 
2006
 Rally's
 
 Indianapolis
 
 IN
 
—

(1) 
210

 
1,514

 
—

 
1,724

 
42

 
6/27/2013
 
1990
 Rally's
 
 Kokomo
 
 IN
 
—

(1) 
290

 
548

 
—

 
838

 
15

 
6/27/2013
 
1989
 Rally's
 
 Muncie
 
 IN
 
—

(1) 
310

 
1,196

 
—

 
1,506

 
33

 
6/27/2013
 
1989
 Rally's
 
 Harvey
 
 LA
 
—

(1) 
420

 
870

 
—

 
1,290

 
24

 
6/27/2013
 
2004
 Rally's
 
 New Orleans
 
 LA
 
—

(1) 
450

 
1,691

 
—

 
2,141

 
47

 
6/27/2013
 
1990
 Rally's
 
 New Orleans
 
 LA
 
—

(1) 
220

 
1,018

 
—

 
1,238

 
28

 
6/27/2013
 
2004
 Rally's
 
 Hamtramck
 
 MI
 
—

(1) 
230

 
1,020

 
—

 
1,250

 
28

 
6/27/2013
 
1993
 Razzoos
 
 Lewisville
 
 TX
 
—

(1) 
780

 
1,503

 
—

 
2,283

 
43

 
6/27/2013
 
1997
 Reckitt Benckiser
 
 Chester
 
 NJ
 
5,500

 
886

 
7,972

 
—

 
8,858

 
513

 
8/16/2012
 
2006
 Rite Aid
 
 Jeffersonville
 
 IN
 
—

(1) 
824

 
2,472

 
—

 
3,296

 
161

 
11/30/2012
 
2008
 Rite Aid
 
 Lawrenceburg
 
 KY
 
—

(1) 
567

 
2,267

 
—

 
2,834

 
147

 
11/30/2012
 
2008
 Rite Aid
 
 Lexington
 
 KY
 
—

(1) 
—

 
1,943

 
—

 
1,943

 
126

 
11/30/2012
 
2007
 Rite Aid
 
 Paris
 
 KY
 
—

(1) 
743

 
2,228

 
—

 
2,971

 
145

 
11/30/2012
 
2008
 Rite Aid
 
 Scottsville
 
 KY
 
—

(1) 
153

 
2,904

 
—

 
3,057

 
189

 
11/30/2012
 
2007
 Rite Aid
 
 Stanford
 
 KY
 
—

(1) 
152

 
2,886

 
—

 
3,038

 
188

 
11/30/2012
 
2009
 Rite Aid
 
 Lima
 
 OH
 
—

(1) 
576

 
2,304

 
—

 
2,880

 
161

 
11/13/2012
 
2006
 Rite Aid
 
 Louisville
 
 OH
 
—

(1) 
576

 
3,266

 
—

 
3,842

 
229

 
10/31/2012
 
2008
 Rite Aid
 
 Marion
 
 OH
 
—

(1) 
508

 
2,877

 
—

 
3,385

 
201

 
11/13/2012
 
2006
 Rite Aid
 
 Huntington
 
 WV
 
—

(1) 
964

 
2,250

 
—

 
3,214

 
146

 
11/30/2012
 
2008
 Rubbermaid
 
 Winfield
 
 KS
 
12,725

 
1,056

 
20,060

 
—

 
21,116

 
2,039

 
4/25/2012
 
2008
 Rubbermaid
 
 Winfield
 
 KS
 
—

(1) 
819

 
15,555

 
—

 
16,374

 
1,028

 
11/28/2012
 
2012
 Ruby Tuesday
 
 Colorado Springs
 
 CO
 
—

(1) 
480

 
809

 
—

 
1,289

 
23

 
6/27/2013
 
1999
 Ruby Tuesday
 
 Dillon
 
 CO
 
—

(1) 
400

 
1,628

 
—

 
2,028

 
47

 
6/27/2013
 
1999
 Ruby Tuesday
 
 Bartow
 
 FL
 
—

(1) 
270

 
1,916

 
—

 
2,186

 
55

 
6/27/2013
 
1999
 Ruby Tuesday
 
 London
 
 KY
 
—

(1) 
370

 
1,493

 
—

 
1,863

 
43

 
6/27/2013
 
1997

F-98

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31,
2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Ruby Tuesday
 
 Somerset
 
 KY
 
—

(1) 
480

 
1,120

 
—

 
1,600

 
32

 
6/27/2013
 
1998
 Sakura Tepanyaki Steakhouse
 
 Orem
 
 UT
 
—

(1) 
340

 
658

 
—

 
998

 
19

 
6/27/2013
 
1999
 Sam's Southern Eatery
 
 Kennesaw
 
 GA
 
—

(1) 
210

 
46

 
—

 
256

 
1

 
6/27/2013
 
1976
 Scotts Company
 
 Orrville
 
 OH
 
—

(1) 
611

 
1,134

 
—

 
1,745

 
98

 
7/30/2012
 
2008
 Scotts Company
 
 Orrville
 
 OH
 
—

(1) 
609

 
11,576

 
—

 
12,185

 
1,000

 
7/30/2012
 
2008
 Scotts Company
 
 Orrville
 
 OH
 
—

(1) 
278

 
2,502

 
—

 
2,780

 
191

 
9/28/2012
 
2008
 Shaw's Supermarkets
 
 Plymouth
 
 MA
 
—

(1) 
1,440

 
3,361

 
—

 
4,801

 
394

 
4/18/2012
 
2000
 Shoney's
 
 Athens
 
 AL
 
—

 
560

 
110

 
—

 
670

 
3

 
6/27/2013
 
1982
 Shoney's
 
 Florence
 
 AL
 
—

 
100

 
484

 
—

 
584

 
14

 
6/27/2013
 
1966
 Shoney's
 
 Gadsden
 
 AL
 
—

(1) 
220

 
707

 
—

 
927

 
20

 
6/27/2013
 
1982
 Shoney's
 
 Oxford
 
 AL
 
—

(1) 
670

 
25

 
—

 
695

 
1

 
6/27/2013
 
1977
 Shoney's
 
 Valdosta
 
 GA
 
—

 
420

 
440

 
—

 
860

 
13

 
6/27/2013
 
2000
 Shoney's
 
 Elizabethtown
 
 KY
 
—

(1) 
450

 
465

 
—

 
915

 
13

 
6/27/2013
 
1986
 Shoney's
 
 Grayson
 
 KY
 
—

(1) 
420

 
406

 
—

 
826

 
12

 
6/27/2013
 
1994
 Shoney's
 
 Owensboro
 
 KY
 
—

 
390

 
129

 
—

 
519

 
4

 
6/27/2013
 
1988
 Shoney's
 
 Lafayette
 
 LA
 
—

 
530

 
138

 
—

 
668

 
4

 
6/27/2013
 
1989
 Shoney's
 
 Osage Beach
 
 MO
 
—

 
453

 
113

 
—

 
566

 
3

 
6/27/2013
 
1992
 Shoney's
 
 Hattiesburg
 
 MS
 
—

(1) 
730

 
618

 
—

 
1,348

 
18

 
6/27/2013
 
1989
 Shoney's
 
 Jackson
 
 MS
 
—

(1) 
360

 
572

 
—

 
932

 
16

 
6/27/2013
 
1989
 Shoney's
 
 Summerville
 
 SC
 
—

(1) 
350

 
800

 
—

 
1,150

 
23

 
6/27/2013
 
1995
 Shoney's
 
 Cookeville
 
 TN
 
—

(1) 
510

 
760

 
—

 
1,270

 
22

 
6/27/2013
 
1995
 Shoney's
 
 Lawrenceburg
 
 TN
 
—

(1) 
330

 
873

 
—

 
1,203

 
25

 
6/27/2013
 
1983
 Shoney's
 
 Charleston
 
 WV
 
—

(1) 
190

 
543

 
—

 
733

 
16

 
6/27/2013
 
1981
 Shoney's
 
 Lewisburg
 
 WV
 
—

(1) 
110

 
642

 
—

 
752

 
18

 
6/27/2013
 
1981
 Shoney's
 
 Princeton
 
 WV
 
—

(1) 
90

 
593

 
—

 
683

 
17

 
6/27/2013
 
1975
 Shoney's
 
 Ripley
 
 WV
 
—

(1) 
200

 
599

 
—

 
799

 
17

 
6/27/2013
 
1981
 Smokey Bones BBQ
 
 Morrow
 
 GA
 
—

 
390

 
2,184

 
—

 
2,574

 
63

 
6/27/2013
 
1999
 Sonny's Real Pit Bar-B-Q
 
 Athens
 
 GA
 
—

(1) 
460

 
1,280

 
—

 
1,740

 
37

 
6/27/2013
 
1981
 Sonny's Real Pit Bar-B-Q
 
 Conyers
 
 GA
 
—

(1) 
450

 
663

 
—

 
1,113

 
19

 
6/27/2013
 
1994
 Sonny's Real Pit Bar-B-Q
 
 Marietta
 
 GA
 
—

(1) 
290

 
1,772

 
—

 
2,062

 
51

 
6/27/2013
 
1988
 Spaghetti Warehouse
 
 Marietta
 
 GA
 
—

(1) 
800

 
276

 
—

 
1,076

 
8

 
6/27/2013
 
1986

F-99

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31,
2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Spaghetti Warehouse
 
 Aurora
 
 IL
 
—

(1) 
480

 
805

 
—

 
1,285

 
23

 
6/27/2013
 
1993
 Spaghetti Warehouse
 
 Elk Grove Village
 
 IL
 
—

(1) 
550

 
299

 
—

 
849

 
9

 
6/27/2013
 
1995
 Spaghetti Warehouse
 
 Oklahoma City
 
 OK
 
—

(1) 
570

 
1,193

 
—

 
1,763

 
34

 
6/27/2013
 
1905
 Spaghetti Warehouse
 
 Tulsa
 
 OK
 
—

(1) 
530

 
1,174

 
—

 
1,704

 
34

 
6/27/2013
 
1917
 Spaghetti Warehouse
 
 Memphis
 
 TN
 
—

(1) 
100

 
283

 
—

 
383

 
8

 
6/27/2013
 
1905
 Spaghetti Warehouse
 
 Arlington
 
 TX
 
—

(1) 
630

 
1,400

 
—

 
2,030

 
40

 
6/27/2013
 
1994
 Spaghetti Warehouse
 
 Dallas
 
 TX
 
—

(1) 
810

 
1,656

 
—

 
2,466

 
47

 
6/27/2013
 
1990
 Spaghetti Warehouse
 
 Houston
 
 TX
 
—

(1) 
980

 
2,284

 
—

 
3,264

 
65

 
6/27/2013
 
1906
 Spaghetti Warehouse
 
 Plano
 
 TX
 
—

(1) 
540

 
1,060

 
—

 
1,600

 
30

 
6/27/2013
 
1993
 Spaghetti Warehouse
 
 San Antonio
 
 TX
 
—

(1) 
1,140

 
1,434

 
—

 
2,574

 
41

 
6/27/2013
 
1907
 Subway
 
 Knoxville
 
 TN
 
—

(1) 
160

 
349

 
—

 
509

 
10

 
6/27/2013
 
1990
 Sweet Tomatoes
 
 Coral Springs
 
 FL
 
—

(1) 
790

 
1,625

 
—

 
2,415

 
47

 
6/27/2013
 
1997
 Synovus Bank
 
 Tampa
 
 FL
 
—

(1) 
985

 
2,298

 
—

 
3,283

 
123

 
12/31/2012
 
1959
 T.G.I. Friday's
 
 Homestead
 
 PA
 
—

(1) 
970

 
3,455

 
—

 
4,425

 
99

 
6/27/2013
 
2000
 Taco Bell
 
 Daphne
 
 AL
 
—

(1) 
180

 
1,278

 
—

 
1,458

 
35

 
6/27/2013
 
1984
 Taco Bell
 
 Foley
 
 AL
 
—

(1) 
360

 
1,460

 
—

 
1,820

 
40

 
6/27/2013
 
1992
 Taco Bell
 
 Mobile
 
 AL
 
—

(1) 
160

 
1,973

 
—

 
2,133

 
55

 
6/27/2013
 
1994
 Taco Bell
 
 SaraLand
 
 AL
 
—

(1) 
150

 
1,063

 
—

 
1,213

 
29

 
6/27/2013
 
1991
 Taco Bell
 
 Jacksonville
 
 FL
 
—

(1) 
440

 
1,167

 
—

 
1,607

 
32

 
6/27/2013
 
1985
 Taco Bell
 
 Jacksonville
 
 FL
 
—

(1) 
340

 
1,383

 
—

 
1,723

 
38

 
6/27/2013
 
1991
 Taco Bell
 
 Pensacola
 
 FL
 
—

(1) 
140

 
1,897

 
—

 
2,037

 
53

 
6/27/2013
 
1986
 Taco Bell
 
 Augusta
 
 GA
 
—

(1) 
220

 
1,292

 
—

 
1,512

 
36

 
6/27/2013
 
1979
 Taco Bell
 
 Hephzibah
 
 GA
 
—

(1) 
330

 
930

 
—

 
1,260

 
26

 
6/27/2013
 
1998
 Taco Bell
 
 Jesup
 
 GA
 
—

(1) 
230

 
715

 
—

 
945

 
20

 
6/27/2013
 
1998
 Taco Bell
 
 Waycross
 
 GA
 
—

(1) 
170

 
1,115

 
—

 
1,285

 
31

 
6/27/2013
 
1994
 Taco Bell
 
 St. Louis
 
 MO
 
—

(1) 
190

 
1,951

 
—

 
1,541

 
44

 
6/27/2013
 
1991
 Taco Bell
 
 Wentzville
 
 MO
 
—

(1) 
410

 
1,168

 
—

 
1,578

 
32

 
6/27/2013
 
2000


F-100

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Taco Bell
 
 Brunswick
 
 OH
 
—

(1) 
400

 
1,267

 
—

 
1,667

 
35

 
6/27/2013
 
1992
 Taco Bell
 
 North Olmstead
 
 OH
 
—

(1) 
390

 
904

 
—

 
1,294

 
25

 
6/27/2013
 
1979
 Taco Bell
 
 Kingston
 
 TN
 
—

(1) 
280

 
714

 
—

 
994

 
20

 
6/27/2013
 
1997
 Taco Bell
 
 Dallas
 
 TX
 
—

(1) 
400

 
1,225

 
—

 
1,625

 
34

 
6/27/2013
 
1997
 Taco Bell
 
 Colonial Heights
 
 VA
 
—

(1) 
450

 
1,144

 
—

 
1,594

 
32

 
6/27/2013
 
1994
 Taco Bell
 
 Hayes
 
 VA
 
—

(1) 
350

 
—

 
—

 
350

 
—

 
6/27/2013
 
1994
 Taco Bell
 
 Portsmouth
 
 VA
 
—

 
350

 
—

 
—

 
350

 
—

 
6/27/2013
 
1997
 Taco Bell
 
 Richmond
 
 VA
 
—

(1) 
500

 
1,061

 
—

 
1,561

 
29

 
6/27/2013
 
1994
 Taco Bell
 
 Richmond
 
 VA
 
—

(1) 
510

 
1,321

 
—

 
1,831

 
37

 
6/27/2013
 
1994
 Taco Bell/Long John Silvers
 
 Ashtabula
 
 OH
 
—

(1) 
440

 
1,640

 
—

 
2,080

 
45

 
6/27/2013
 
2004
 Taco Bell/Pizza Hut
 
 Dallas
 
 TX
 
—

(1) 
420

 
1,582

 
—

 
2,002

 
44

 
6/27/2013
 
2000
 Taco Cabana
 
 Austin
 
 TX
 
—

(1) 
700

 
2,105

 
—

 
2,805

 
58

 
6/27/2013
 
1980
 Taco Cabana
 
 Pasadena
 
 TX
 
—

(1) 
420

 
1,420

 
—

 
1,840

 
39

 
6/27/2013
 
1994
 Taco Cabana
 
 San Antonio
 
 TX
 
—

(1) 
600

 
1,955

 
—

 
2,555

 
54

 
6/27/2013
 
1994
 Taco Cabana
 
 San Antonio
 
 TX
 
—

(1) 
500

 
1,740

 
—

 
2,240

 
48

 
6/27/2013
 
1985
 Taco Cabana
 
 San Antonio
 
 TX
 
—

(1) 
280

 
1,695

 
—

 
1,975

 
47

 
6/27/2013
 
1986
 Taco Cabana
 
 San Antonio
 
 TX
 
—

(1) 
500

 
1,766

 
—

 
2,266

 
49

 
6/27/2013
 
1984
 Taco Cabana
 
 Schertz
 
 TX
 
—

(1) 
520

 
1,408

 
—

 
1,928

 
39

 
6/27/2013
 
1998
 Talbots HQ
 
 Hingham
 
 MA
 
—

 
3,009

 
27,080

 
—

 
30,089

 
762

 
5/24/2013
 
1980
 TCF National Bank
 
 Crystal
 
 MN
 
—

(1) 
640

 
642

 
—

 
1,282

 
17

 
6/27/2013
 
1981
 TD Bank
 
 Falmouth
 
 ME
 
—

 
4,057

 
23,489

 
—

 
27,046

 
864

 
3/18/2013
 
2002
 Teva Pharmaceuticals Industries Limited
 
 Malvern
 
 PA
 
—

(2) 
2,666

 
40,981

 
—

 
43,647

 
326

 
11/5/2013
 
2013
 Texas Roadhouse
 
 Cedar Rapids
 
 IA
 
—

(1) 
430

 
2,194

 
—

 
2,624

 
63

 
6/27/2013
 
2000
 Texas Roadhouse
 
 Ammon
 
 ID
 
—

(1) 
490

 
1,206

 
—

 
1,696

 
35

 
6/27/2013
 
1999
 Texas Roadhouse
 
 Shively
 
 KY
 
—

(1) 
540

 
2,055

 
—

 
2,595

 
59

 
6/27/2013
 
1998
 Texas Roadhouse
 
 Concord
 
 NC
 
—

(1) 
650

 
2,130

 
—

 
2,780

 
61

 
6/27/2013
 
2000
 Texas Roadhouse
 
 Gastonia
 
 NC
 
—

(1) 
570

 
1,544

 
—

 
2,114

 
44

 
6/27/2013
 
1999
 Texas Roadhouse
 
 Hickory
 
 NC
 
—

(1) 
580

 
1,831

 
—

 
2,411

 
53

 
6/27/2013
 
1999
 Texas Roadhouse
 
 Dickson City
 
 PA
 
—

(1) 
640

 
1,897

 
—

 
2,537

 
54

 
6/27/2013
 
2000
 Texas Roadhouse
 
 College Station
 
 TX
 
—

(1) 
670

 
2,299

 
—

 
2,969

 
66

 
6/27/2013
 
2000
 Texas Roadhouse
 
 Grand Prairie
 
 TX
 
—

(1) 
780

 
1,867

 
—

 
2,647

 
54

 
6/27/2013
 
1997

F-101

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 The Kroger Co.
 
 Calhoun
 
 GA
 
—

(2) 
—

 
6,279

 
—

 
6,279

 
52

 
11/5/2013
 
1996
 The Kroger Co.
 
 Lithonia
 
 GA
 
—

(2) 
—

 
6,250

 
—

 
6,250

 
52

 
11/5/2013
 
1996
 The Kroger Co.
 
 Suwanee
 
 GA
 
—

(2) 
—

 
7,574

 
—

 
7,574

 
63

 
11/5/2013
 
1996
 The Kroger Co.
 
 Suwanee
 
 GA
 
—

(2) 
—

 
7,691

 
—

 
7,691

 
64

 
11/5/2013
 
1996
 The Kroger Co.
 
 Frankfort
 
 KY
 
—

(2) 
—

 
5,794

 
—

 
5,794

 
48

 
11/5/2013
 
1996
 The Kroger Co.
 
 Georgetown
 
 KY
 
—

(2) 
—

 
6,742

 
—

 
6,742

 
56

 
11/5/2013
 
1996
 The Kroger Co.
 
 Madisonville
 
 KY
 
—

(2) 
—

 
5,715

 
—

 
5,715

 
48

 
11/5/2013
 
1996
 The Kroger Co.
 
 Murray
 
 KY
 
—

(2) 
—

 
6,165

 
—

 
6,165

 
51

 
11/5/2013
 
1996
 The Kroger Co.
 
 Owensboro
 
 KY
 
—

(2) 
—

 
6,073

 
—

 
6,073

 
51

 
11/5/2013
 
1996
 The Kroger Co.
 
 Franklin
 
 TN
 
—

(2) 
—

 
7,782

 
—

 
7,782

 
65

 
11/5/2013
 
1996
 The Kroger Co.
 
 Knoxville
 
 TN
 
—

(2) 
—

 
7,642

 
—

 
7,642

 
64

 
11/5/2013
 
1996
 The Pantry, Inc.
 
 Montgomery
 
 AL
 
—

(1) 
526

 
1,228

 
—

 
1,754

 
69

 
12/31/2012
 
1998
 The Pantry, Inc.
 
 Charlotte
 
 NC
 
—

(1) 
1,332

 
1,332

 
—

 
2,664

 
75

 
12/31/2012
 
2004
 The Pantry, Inc.
 
 Charlotte
 
 NC
 
—

(1) 
1,667

 
417

 
—

 
2,084

 
23

 
12/31/2012
 
1982
 The Pantry, Inc.
 
 Charlotte
 
 NC
 
—

(1) 
1,191

 
1,787

 
—

 
2,978

 
100

 
12/31/2012
 
1987
 The Pantry, Inc.
 
 Charlotte
 
 NC
 
—

(1) 
1,070

 
1,308

 
—

 
2,378

 
73

 
12/31/2012
 
1997
 The Pantry, Inc.
 
 Conover
 
 NC
 
—

(1) 
1,144

 
936

 
—

 
2,080

 
53

 
12/31/2012
 
1998
 The Pantry, Inc.
 
 Cornelius
 
 NC
 
—

(1) 
1,847

 
2,258

 
—

 
4,105

 
127

 
12/31/2012
 
1999
 The Pantry, Inc.
 
 Lincolnton
 
 NC
 
—

(1) 
1,766

 
2,159

 
—

 
3,925

 
121

 
12/31/2012
 
2000
 The Pantry, Inc.
 
 Matthews
 
 NC
 
—

(1) 
980

 
1,819

 
—

 
2,799

 
102

 
12/31/2012
 
1987
 The Pantry, Inc.
 
 Thomasville
 
 NC
 
—

(1) 
1,175

 
1,436

 
—

 
2,611

 
81

 
12/31/2012
 
2000
 The Pantry, Inc.
 
 Fort Mill
 
 SC
 
—

(1) 
1,311

 
1,967

 
—

 
3,278

 
110

 
12/31/2012
 
1988
 The Procter & Gamble Co.
 
 FortWayne
 
 IN
 
25,904

 
—

 
26,400

 
—

 
26,400

 
268

 
11/5/2013
 
1994
 Thermo Process Systems
 
 Sugarland
 
 TX
 
—

(1) 
1,680

 
7,778

 
—

 
9,458

 
94

 
9/24/2013
 
2005
 Tiffany & Co.
 
 Parsippany
 
 NJ
 
55,773

 
2,248

 
81,083

 
—

 
83,331

 
824

 
11/5/2013
 
2002
 Tilted Kilt
 
 Hendersonville
 
 TN
 
—

(1) 
310

 
763

 
—

 
1,073

 
22

 
6/27/2013
 
1994
 Time Warner Cable
 
 Milwaukee
 
 WI
 
20,570

 
3,081

 
22,512

 
—

 
25,593

 
217

 
11/5/2013
 
2001
 Tire Kingdom
 
 Dublin
 
 OH
 
—

(6) 
373

 
1,119

 
—

 
1,492

 
108

 
4/27/2012
 
2003
 TJX Companies, Inc.
 
 Philadelphia
 
 PA
 
67,335

 
9,890

 
84,955

 
—

 
94,845

 
864

 
11/5/2013
 
2001
 T-Mobile USA, Inc.
 
 Nashville
 
 TN
 
10,295

 
1,190

 
15,847

 
—

 
17,037

 
140

 
11/5/2013
 
2002
 Tractor Supply
 
 Oneonta
 
 AL
 
—

(1) 
359

 
1,438

 
—

 
1,797

 
46

 
4/18/2013
 
2012

F-102

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Tractor Supply
 
 Gray
 
 LA
 
—

 
550

 
2,202

 
—

 
2,752

 
149

 
8/7/2012
 
2011
 Tractor Supply
 
 Negaunee
 
 MI
 
—

(1) 
488

 
1,953

 
—

 
2,441

 
147

 
6/12/2012
 
2010
 Tractor Supply
 
 Plymouth
 
 NH
 
—

 
424

 
2,402

 
—

 
2,826

 
124

 
11/29/2012
 
2011
 Tractor Supply
 
 Allentown
 
 NJ
 
—

(5) 
697

 
3,949

 
—

 
4,646

 
361

 
1/27/2012
 
2011
 Tractor Supply
 
 Rio Grande City
 
 TX
 
—

(1) 
469

 
1,095

 
—

 
1,564

 
78

 
6/19/2012
 
2008
 UPS e-Logistics
 
 Elizabethtown
 
 KY
 
—

(1) 
1,460

 
10,923

 
—

 
12,383

 
167

 
9/24/2013
 
2001
 Bob's Stores
 
 Randolph
 
 MA
 
6,929

 
2,840

 
6,826

 
—

 
9,666

 
68

 
11/5/2013
 
1993
 Vacant
 
 Bethesda
 
 MD
 
54,554

 
8,538

 
31,879

 
—

 
40,417

 
292

 
11/5/2013
 
2012
 Vacant
 
 Irving
 
 TX
 
—

 
3,096

 
5,302

 
—

 
8,398

 
34

 
11/5/2013
 
1997
 Vacant (Development property)
 
 Columbia
 
 SC
 
—

 
—

 
6,941

 
7,006

 
13,947

 
—

 
11/5/2013
 
in progress
 Vacant (Development property)
 
 The Woodlands
 
 TX
 
—

 
—

 
5,411

 
1,521

 
6,932

 
—

 
11/5/2013
 
in progress
 Vitamin Shoppe
 
 Evergreen Park
 
 IL
 
—

(1) 
476

 
1,427

 
—

 
1,903

 
53

 
4/19/2013
 
2012
 Vitamin Shoppe
 
 Ashland
 
 VA
 
—

 
2,400

 
19,663

 
—

 
22,063

 
200

 
11/5/2013
 
2013
 Walgreens
 
 Wetumpka
 
 AL
 
—

(5) 
547

 
3,102

 
—

 
3,649

 
341

 
2/22/2012
 
2007
 Walgreens
 
 Peoria
 
 AZ
 
—

(1) 
837

 
1,953

 
—

 
2,790

 
98

 
2/28/2013
 
1996
 Walgreens
 
 Phoenix
 
 AZ
 
—

(1) 
1,037

 
1,927

 
—

 
2,964

 
87

 
3/26/2013
 
1999
 Walgreens
 
 Coalings
 
 CA
 
—

(3) 
396

 
3,568

 
—

 
3,964

 
482

 
10/11/2011
 
2008
 Walgreens
 
 Acworth
 
 GA
 
—

(1) 
1,583

 
2,940

 
—

 
4,523

 
162

 
1/25/2013
 
2012
 Walgreens
 
 Chicago
 
 IL
 
—

(1) 
1,212

 
2,829

 
—

 
4,041

 
156

 
1/30/2013
 
1999
 Walgreens
 
 Chicago
 
 IL
 
—

(1) 
1,617

 
3,003

 
—

 
4,620

 
165

 
1/30/2013
 
2007
 Walgreens
 
 Anderson
 
 IN
 
—

 
807

 
3,227

 
—

 
4,034

 
274

 
7/31/2012
 
2001
 Walgreens
 
 Orlando
 
 FL
 
—

(1) 
1,007

 
1,869

 
—

 
2,876

 
28

 
9/30/2013
 
1996
 Walgreens
 
 Olathe
 
 KS
 
—

(1) 
1,258

 
3,774

 
—

 
5,032

 
94

 
7/25/2013
 
2002
 Walgreens
 
 Frankfort
 
 KY
 
—

(5) 
911

 
3,643

 
—

 
4,554

 
419

 
2/8/2012
 
2006
 Walgreens
 
 Shreveport
 
 LA
 
—

(5) 
619

 
3,509

 
—

 
4,128

 
386

 
2/22/2012
 
2003
 Walgreens
 
 Baltimore
 
 MD
 
—

(1) 
1,185

 
2,764

 
—

 
3,949

 
69

 
8/6/2013
 
2000
 Walgreens
 
 Clinton
 
 MI
 
—

(1) 
1,463

 
3,413

 
—

 
4,876

 
239

 
11/13/2012
 
2002
 Walgreens
 
 Dearborn
 
 MI
 
—

(1) 
190

 
3,605

 
—

 
3,795

 
162

 
4/1/2013
 
1998


F-103

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Walgreens
 
 Eastpointe
 
 MI
 
—

(1) 
668

 
2,672

 
—

 
3,340

 
307

 
1/19/2012
 
1998
 Walgreens
 
 Lincoln Park
 
 MI
 
—

 
1,041

 
5,896

 
—

 
6,937

 
501

 
7/31/2012
 
2007
 Walgreens
 
 Livonia
 
 MI
 
—

(1) 
261

 
2,350

 
—

 
2,611

 
106

 
4/1/2013
 
1998
 Walgreens
 
 Stevensville
 
 MI
 
—

(3) 
855

 
3,420

 
—

 
4,275

 
428

 
11/28/2011
 
2007
 Walgreens
 
 Troy
 
 MI
 
—

(1) 
—

 
1,896

 
—

 
1,896

 
123

 
12/12/2012
 
2000
 Walgreens
 
 Warren
 
 MI
 
—

(1) 
748

 
2,991

 
—

 
3,739

 
194

 
11/21/2012
 
1999
 Walgreens
 
 Columbia
 
 MS
 
—

 
452

 
4,072

 
—

 
4,524

 
244

 
12/21/2012
 
2011
 Walgreens
 
 Greenwood
 
 MS
 
—

(5) 
561

 
3,181

 
—

 
3,742

 
350

 
2/22/2012
 
2007
 Walgreens
 
 Maplewood
 
 NJ
 
—

(3) 
1,071

 
6,071

 
—

 
7,142

 
759

 
11/18/2011
 
2011
 Walgreens
 
 Las Vegas
 
 NV
 
—

 
1,528

 
6,114

 
—

 
7,642

 
581

 
5/30/2012
 
2009
 Walgreens
 
 Las Vegas
 
 NV
 
—

(1) 
700

 
2,801

 
—

 
3,501

 
112

 
4/30/2013
 
2001
 Walgreens
 
 Staten Island
 
 NY
 
—

 
—

 
3,984

 
—

 
3,984

 
538

 
10/5/2011
 
2007
 Walgreens
 
 Akron
 
 OH
 
—

 
664

 
1,548

 
—

 
2,212

 
54

 
5/31/2013
 
1994
 Walgreens
 
 Bryan
 
 OH
 
—

(5) 
219

 
4,154

 
—

 
4,373

 
457

 
2/22/2012
 
2007
 Walgreens
 
 Eaton
 
 OH
 
—

 
398

 
3,586

 
—

 
3,984

 
323

 
6/27/2012
 
2008
 Walgreens
 
 Tahlequah
 
 OK
 
—

 
647

 
3,664

 
—

 
4,311

 
220

 
1/2/2013
 
2008
 Walgreens
 
 Aibonito Pueblo
 
 PR
 
—

 
1,855

 
5,566

 
—

 
7,421

 
278

 
3/5/2013
 
2012
 Walgreens
 
 Las Piedras
 
 PR
 
—

 
1,726

 
5,179

 
—

 
6,905

 
233

 
4/3/2013
 
2012
 Walgreens
 
 Anderson
 
 SC
 
—

(5) 
835

 
3,342

 
—

 
4,177

 
384

 
2/8/2012
 
2006
 Walgreens
 
 Easley
 
 SC
 
—

 
1,206

 
3,617

 
—

 
4,823

 
326

 
6/27/2012
 
2007
 Walgreens
 
 Greenville
 
 SC
 
—

 
1,313

 
3,940

 
—

 
5,253

 
355

 
6/27/2012
 
2006
 Walgreens
 
 Myrtle Beach
 
 SC
 
—

(1) 
—

 
2,077

 
—

 
2,077

 
249

 
12/29/2011
 
2001
 Walgreens
 
 North Charleston
 
 SC
 
—

 
1,320

 
3,081

 
—

 
4,401

 
277

 
6/27/2012
 
2008
 Walgreens
 
 Cordova
 
 TN
 
—

 
1,005

 
2,345

 
—

 
3,350

 
164

 
11/9/2012
 
2002
 Walgreens
 
 Memphis
 
 TN
 
—

 
896

 
2,687

 
—

 
3,583

 
201

 
10/2/2012
 
2003
 Walgreens
 
 Portsmouth
 
 VA
 
2,118

 
730

 
3,311

 
—

 
4,041

 
33

 
11/5/2013
 
1998
 Wendy's
 
 Atascadero
 
 CA
 
—

(1) 
230

 
1,009

 
—

 
1,239

 
28

 
6/27/2013
 
2000
 Wendy's
 
 Camarillo
 
 CA
 
—

(1) 
320

 
2,253

 
—

 
2,573

 
62

 
6/27/2013
 
1996
 Wendy's
 
 Paso Robles
 
 CA
 
—

(1) 
150

 
1,603

 
—

 
1,753

 
44

 
6/27/2013
 
1999
 Wendy's
 
 Worcester
 
 MA
 
—

(1) 
370

 
1,288

 
—

 
1,658

 
36

 
6/27/2013
 
1996
 Wendy's
 
 Salisbury
 
 MD
 
—

(1) 
370

 
1,299

 
—

 
1,669

 
36

 
6/27/2013
 
1993
 Wendy's
 
 Swanton
 
 OH
 
—

(1) 
430

 
1,233

 
—

 
1,663

 
34

 
6/27/2013
 
1999
 Wendy's
 
 Sylvania
 
 OH
 
—

(1) 
300

 
799

 
—

 
1,099

 
22

 
6/27/2013
 
1999
 Wendy's
 
 Knoxville
 
 TN
 
—

(1) 
330

 
1,161

 
—

 
1,491

 
32

 
6/27/2013
 
1998
 Wendy's
 
 Knoxville
 
 TN
 
—

(1) 
330

 
1,132

 
—

 
1,462

 
31

 
6/27/2013
 
1996
 Wendy's
 
 Millington
 
 TN
 
—

(1) 
380

 
1,208

 
—

 
1,588

 
33

 
6/27/2013
 
1976
 Wendy's
 
 Bluefield
 
 VA
 
—

(1) 
450

 
1,927

 
—

 
2,377

 
53

 
6/27/2013
 
1992
 Wendy's
 
 Midlothian
 
 VA
 
—

(1) 
230

 
1,300

 
—

 
1,530

 
36

 
6/27/2013
 
1991
 Wendy's
 
 Beaver
 
 WV
 
—

(1) 
290

 
1,156

 
—

 
1,446

 
32

 
6/27/2013
 
1982
 West Marine
 
 Deltaville
 
 VA
 
—

(1) 
425

 
2,409

 
—

 
2,834

 
192

 
7/31/2012
 
2012
 Williams Sonoma
 
 Olive Branch
 
 MS
 
28,350

 
2,330

 
44,266

 
—

 
46,596

 
3,825

 
8/10/2012
 
2001
Abuelo's
 
Rogers
 
AR
 
—

(14) 
825

 
2,296

 
—

 
3,121

 
66

 
6/27/2013
 
2003
 Academy Sports
 
Smyrna
 
TN
 
—

 
2,109

 
8,434

 
—

 
10,543

 
68

 
11/1/2013
 
2012

F-104

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Academy Sports
 
Mobile
 
AL
 
—

 
1,311

 
7,431

 
—

 
8,742

 
60

 
11/1/2013
 
2012
Advance Auto
 
Opelika
 
AL
 
—

(14) 
289

 
1,156

 
—

 
1,445

 
43

 
4/24/2013
 
2013
 Aliberto's Mexican Food
 
Holbrook
 
AZ
 
—

(14) 
32

 
96

 
—

 
128

 
3

 
6/27/2013
 
1981
Applebee's
 
Davenport
 
FL
 
—

(14) 
1,506

 
4,517

 
—

 
6,023

 
112

 
7/31/2013
 
2007
Applebee's
 
Bradenton
 
FL
 
—

(14) 
2,475

 
3,713

 
—

 
6,188

 
92

 
7/31/2013
 
1994
Applebee's
 
Rio Rancho
 
NM
 
—

(14) 
645

 
3,654

 
—

 
4,299

 
91

 
7/31/2013
 
1995
Applebee's
 
Brandon
 
FL
 
—

(14) 
2,453

 
3,647

 
—

 
6,100

 
105

 
6/27/2013
 
1997
Applebee's
 
Lakeland
 
FL
 
—

(14) 
1,959

 
3,638

 
—

 
5,597

 
90

 
7/31/2013
 
2000
Applebee's
 
Temple Terrace
 
FL
 
—

(14) 
2,396

 
3,594

 
—

 
5,990

 
89

 
7/31/2013
 
1993
Applebee's
 
Largo
 
FL
 
—

(14) 
2,334

 
3,501

 
—

 
5,835

 
87

 
7/31/2013
 
1995
Applebee's
 
St. Petersburg
 
FL
 
—

(14) 
2,329

 
3,493

 
—

 
5,822

 
87

 
7/31/2013
 
1994
Applebee's
 
Riverview
 
FL
 
—

(14) 
1,849

 
3,434

 
—

 
5,283

 
85

 
7/31/2013
 
2006
Applebee's
 
Hobbs
 
NM
 
—

(14) 
600

 
3,401

 
—

 
4,001

 
84

 
7/31/2013
 
2002
Applebee's
 
Valrico
 
FL
 
—

(14) 
1,202

 
3,274

 
—

 
4,476

 
94

 
6/27/2013
 
1998
Applebee's
 
Wesley Chapel
 
FL
 
—

(14) 
3,272

 
3,272

 
—

 
6,544

 
81

 
7/31/2013
 
2000
Applebee's
 
 New Port Richey
 
FL
 
—

(14) 
1,695

 
3,147

 
—

 
4,842

 
78

 
7/31/2013
 
1998
Applebee's
 
Inverness
 
FL
 
—

(14) 
1,977

 
2,965

 
—

 
4,942

 
74

 
7/31/2013
 
2000
Applebee's
 
Corpus Christi
 
TX
 
—

(14) 
563

 
2,926

 
—

 
3,489

 
84

 
6/27/2013
 
2000
Applebee's
 
Nampa
 
ID
 
—

(14) 
729

 
2,915

 
—

 
3,644

 
72

 
7/31/2013
 
2000
Applebee's
 
Pueblo
 
CO
 
—

(14) 
960

 
2,879

 
—

 
3,839

 
71

 
7/31/2013
 
1998
Applebee's
 
Plant City
 
FL
 
—

(14) 
2,079

 
2,869

 
—

 
4,948

 
82

 
6/27/2013
 
2001
Applebee's
 
Evans
 
GA
 
—

(14) 
1,426

 
2,649

 
—

 
4,075

 
66

 
7/31/2013
 
2004
Applebee's
 
Winter Haven
 
FL
 
—

(14) 
2,130

 
2,603

 
—

 
4,733

 
65

 
7/31/2013
 
1999
Applebee's
 
Gresham
 
OR
 
—

 
853

 
2,560

 
—

 
3,413

 
49

 
8/30/2013
 
2004
Applebee's
 
Garden City
 
ID
 
—

 
628

 
2,512

 
—

 
3,140

 
48

 
8/30/2013
 
2003
Applebee's
 
Savannah
 
GA
 
—

(14) 
1,329

 
2,468

 
—

 
3,797

 
61

 
7/31/2013
 
1994
Applebee's
 
Crystal River
 
FL
 
—

(14) 
1,328

 
2,467

 
—

 
3,795

 
61

 
7/31/2013
 
2001
Applebee's
 
Alamogordo
 
NM
 
—

 
271

 
2,438

 
—

 
2,709

 
47

 
8/30/2013
 
2000
Applebee's
 
Lakeland
 
FL
 
—

(14) 
1,283

 
2,383

 
—

 
3,666

 
59

 
7/31/2013
 
1997
Applebee's
 
Augusta
 
GA
 
—

(14) 
1,254

 
2,329

 
—

 
3,583

 
58

 
7/31/2013
 
1987
Applebee's
 
Roswell
 
NM
 
—

(14) 
405

 
2,295

 
—

 
2,700

 
57

 
7/31/2013
 
1998
Applebee's
 
Pueblo
 
CO
 
—

 
752

 
2,257

 
—

 
3,009

 
43

 
8/30/2013
 
1998
Applebee's
 
Greeley
 
CO
 
—

(14) 
559

 
2,235

 
—

 
2,794

 
55

 
7/31/2013
 
1995
Applebee's
 
Phenix City
 
AL
 
—

(14) 
1,488

 
2,232

 
—

 
3,720

 
55

 
7/31/2013
 
1999
Applebee's
 
Oxford
 
AL
 
—

 
1,162

 
2,157

 
—

 
3,319

 
41

 
8/30/2013
 
1995
Applebee's
 
Clackamas
 
OR
 
—

(14) 
901

 
2,103

 
—

 
3,004

 
52

 
7/31/2013
 
1997
Applebee's
 
Tualatin
 
OR
 
—

(14) 
1,116

 
2,072

 
—

 
3,188

 
51

 
7/31/2013
 
2002
Applebee's
 
Richland
 
WA
 
—

(14) 
1,112

 
2,064

 
—

 
3,176

 
51

 
7/31/2013
 
2003
Applebee's
 
Edinburg
 
TX
 
—

(14) 
898

 
2,058

 
—

 
2,956

 
59

 
6/27/2013
 
2006
Applebee's
 
Thornton
 
CO
 
—

 
681

 
2,043

 
—

 
2,724

 
39

 
8/30/2013
 
1994
Applebee's
 
 Colorado Springs
 
CO
 
—

(14) 
499

 
1,996

 
—

 
2,495

 
49

 
7/31/2013
 
1995
Applebee's
 
McAllen
 
TX
 
—

(14) 
1,114

 
1,988

 
—

 
3,102

 
57

 
6/27/2013
 
1993
Applebee's
 
Brighton
 
CO
 
—

(14) 
657

 
1,972

 
—

 
2,629

 
49

 
7/31/2013
 
1998

F-105

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Applebee's
 
 Colorado Springs
 
CO
 
—

(14) 
629

 
1,888

 
—

 
2,517

 
47

 
7/31/2013
 
1994
Applebee's
 
Vancouver
 
WA
 
—

 
791

 
1,846

 
—

 
2,637

 
35

 
8/30/2013
 
2001
Applebee's
 
Pocatello
 
ID
 
—

(14) 
612

 
1,837

 
—

 
2,449

 
46

 
7/31/2013
 
1998
Applebee's
 
San Antonio
 
TX
 
—

(14) 
732

 
1,796

 
—

 
2,528

 
51

 
6/27/2013
 
2003
Applebee's
 
Milledgeville
 
GA
 
—

(14) 
1,174

 
1,761

 
—

 
2,935

 
44

 
7/31/2013
 
1999
Applebee's
 
Boise
 
ID
 
—

(14) 
948

 
1,761

 
—

 
2,709

 
44

 
7/31/2013
 
1998
Applebee's
 
Arvada
 
CO
 
—

(14) 
754

 
1,760

 
—

 
2,514

 
44

 
7/31/2013
 
1996
Applebee's
 
Crestview
 
FL
 
—

(14) 
943

 
1,752

 
—

 
2,695

 
43

 
7/31/2013
 
2000
Applebee's
 
Northglenn
 
CO
 
—

(14) 
578

 
1,734

 
—

 
2,312

 
43

 
7/31/2013
 
1993
Applebee's
 
Auburn
 
AL
 
—

(14) 
1,155

 
1,732

 
—

 
2,887

 
43

 
7/31/2013
 
1993
Applebee's
 
Ocean Springs
 
MS
 
—

(14) 
673

 
1,708

 
—

 
2,381

 
49

 
6/27/2013
 
2000
Applebee's
 
Vancouver
 
WA
 
—

(14) 
718

 
1,675

 
—

 
2,393

 
42

 
7/31/2013
 
2001
Applebee's
 
Roseburg
 
OR
 
—

 
717

 
1,673

 
—

 
2,390

 
32

 
8/30/2013
 
2000
Applebee's
 
Lake Oswego
 
OR
 
—

(14) 
1,352

 
1,652

 
—

 
3,004

 
41

 
7/31/2013
 
1993
Applebee's
 
Newton
 
KS
 
—

(14) 
504

 
1,569

 
—

 
2,073

 
45

 
6/27/2013
 
1998
Applebee's
 
Fall River
 
MA
 
—

 
275

 
1,558

 
—

 
1,833

 
39

 
7/31/2013
 
1994
Applebee's
 
New Braunfels
 
TX
 
—

(14) 
566

 
1,486

 
—

 
2,052

 
43

 
6/27/2013
 
1995
Applebee's
 
Dublin
 
GA
 
—

(14) 
1,171

 
1,431

 
—

 
2,602

 
35

 
7/31/2013
 
1998
Applebee's
 
North Canton
 
OH
 
—

 
152

 
838

 
—

 
990

 
24

 
6/27/2013
 
1992
Arby's
 
Atlanta
 
GA
 
—

(14) 
1,207

 
987

 
—

 
2,194

 
22

 
7/31/2013
 
1984
Arby's
 
Kennesaw
 
GA
 
—

(14) 
583

 
840

 
—

 
1,423

 
23

 
6/27/2013
 
1984
Arby's
 
Memphis
 
TN
 
—

(14) 
449

 
835

 
—

 
1,284

 
18

 
7/31/2013
 
1998
Arby's
 
Mount Vernon
 
IL
 
—

(14) 
911

 
764

 
—

 
1,675

 
21

 
6/27/2013
 
1999
Arby's
 
Richmond Hill
 
GA
 
—

(14) 
430

 
755

 
—

 
1,185

 
21

 
6/27/2013
 
1984
Arby's
 
Grandville
 
MI
 
—

(14) 
1,133

 
755

 
—

 
1,888

 
17

 
7/31/2013
 
1982
Arby's
 
Prescott
 
AZ
 
—

 
404

 
750

 
—

 
1,154

 
16

 
7/31/2013
 
1986
Arby's
 
Schertz
 
TX
 
—

 
499

 
748

 
—

 
1,247

 
16

 
7/31/2013
 
1996
Arby's
 
Apopka
 
FL
 
—

(14) 
464

 
697

 
—

 
1,161

 
15

 
7/31/2013
 
1985
Arby's
 
Mobile
 
AL
 
—

 
460

 
685

 
—

 
1,145

 
19

 
6/27/2013
 
1986
Arby's
 
Wyoming
 
MI
 
—

(14) 
1,513

 
648

 
—

 
2,161

 
14

 
7/31/2013
 
1970
Arby's
 
Fort Wayne
 
IN
 
—

 
529

 
647

 
—

 
1,176

 
14

 
7/31/2013
 
1987
Arby's
 
Louisville
 
KY
 
—

 
336

 
625

 
—

 
961

 
26

 
5/30/2013
 
1979
Arby's
 
Phoenix
 
AZ
 
—

 
559

 
618

 
—

 
1,177

 
17

 
6/27/2013
 
1995
Arby's
 
Fountain Hills
 
AZ
 
—

 
241

 
597

 
—

 
838

 
17

 
6/27/2013
 
1994
Arby's
 
Orlando
 
FL
 
—

 
251

 
585

 
—

 
836

 
13

 
7/31/2013
 
1985
Arby's
 
Rockledge
 
FL
 
—

 
381

 
571

 
—

 
952

 
13

 
7/31/2013
 
1984
Arby's
 
Erie
 
PA
 
—

 
188

 
552

 
—

 
740

 
15

 
6/27/2013
 
1966
Arby's
 
Merritt Island
 
FL
 
—

 
297

 
552

 
—

 
849

 
12

 
7/31/2013
 
1984
Arby's
 
Hopkinsville
 
KY
 
—

(14) 
432

 
528

 
—

 
960

 
12

 
7/31/2013
 
1994
Arby's
 
Clovis
 
NM
 
—

 
91

 
518

 
—

 
609

 
14

 
6/27/2013
 
1982
Arby's
 
Winchester
 
IN
 
—

 
341

 
511

 
—

 
852

 
11

 
7/31/2013
 
1988
Arby's
 
Lexington
 
NC
 
—

 
484

 
504

 
—

 
988

 
14

 
6/27/2013
 
1987
Arby's
 
Guntersville
 
AL
 
—

 
142

 
503

 
—

 
645

 
14

 
6/27/2013
 
1986

F-106

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Arby's
 
New Albany
 
IN
 
—

(14) 
456

 
470

 
—

 
926

 
13

 
6/27/2013
 
2005
Arby's
 
Chattanooga
 
TN
 
—

(14) 
201

 
469

 
—

 
670

 
10

 
7/31/2013
 
1998
Arby's
 
New Albany
 
IN
 
—

(14) 
325

 
465

 
—

 
790

 
13

 
6/27/2013
 
1995
Arby's
 
Scottsburg
 
IN
 
—

(14) 
526

 
445

 
—

 
971

 
12

 
6/27/2013
 
1989
Arby's
 
Corinth
 
MS
 
—

(14) 
753

 
429

 
—

 
1,182

 
12

 
6/27/2013
 
1984
Arby's
 
Alexander City
 
AL
 
—

(14) 
527

 
401

 
—

 
928

 
11

 
6/27/2013
 
1999
Arby's
 
Middlefield
 
OH
 
—

 
379

 
388

 
—

 
767

 
11

 
6/27/2013
 
1988
Arby's
 
Rochester
 
NY
 
—

 
128

 
384

 
—

 
512

 
8

 
7/31/2013
 
1985
Arby's
 
Savannah
 
GA
 
—

 
293

 
293

 
—

 
586

 
6

 
7/31/2013
 
1985
Arby's
 
Albuquerque
 
NM
 
—

 
217

 
246

 
—

 
463

 
7

 
6/27/2013
 
1987
Arby's
 
Alexandria
 
LA
 
—

 
82

 
245

 
—

 
327

 
5

 
7/31/2013
 
1985
Arby's
 
Las Vegas
 
NM
 
—

 
236

 
236

 
—

 
472

 
5

 
7/31/2013
 
1985
Arby's
 
Toccoa
 
GA
 
—

 
185

 
227

 
—

 
412

 
5

 
7/31/2013
 
1998
Arby's
 
Bullhead City
 
AZ
 
—

 
550

 
—

 
—

 
550

 
—

 
6/27/2013
 
1999
Arby's
 
Omaha
 
NE
 
—

 
359

 
—

 
—

 
359

 
—

 
7/31/2013
 
1984
Auto Pawn
 
Columbus
 
GA
 
—

 
170

 
—

 
—

 
170

 
—

 
6/27/2013
 
1987
 Bandana's Bar-B-Q Restaurant
 
Fenton
 
MO
 
—

 
470

 
314

 
—

 
784

 
6

 
8/30/2013
 
1986
Billboard
 
Memphis
 
TN
 
—

 
33

 
—

 
—

 
33

 
—

 
7/31/2013
 
N/A
Billboard
 
Memphis
 
TN
 
—

 
63

 
—

 
—

 
63

 
—

 
7/31/2013
 
N/A
Billboard
 
Memphis
 
TN
 
—

 
73

 
—

 
—

 
73

 
—

 
7/31/2013
 
N/A
Billboard
 
Memphis
 
TN
 
—

 
90

 
—

 
—

 
90

 
—

 
7/31/2013
 
N/A
Billboard
 
Memphis
 
TN
 
—

 
69

 
—

 
—

 
69

 
—

 
7/31/2013
 
N/A
Black Meg 43
 
Copperas Cove
 
TX
 
—

(14) 
151

 
151

 
—

 
302

 
4

 
6/27/2013
 
1969
Bojangles
 
Statesville
 
NC
 
—

(14) 
646

 
1,937

 
—

 
2,583

 
43

 
7/31/2013
 
1988
Bojangles
 
Denver
 
NC
 
—

(14) 
1,013

 
1,881

 
—

 
2,894

 
41

 
7/31/2013
 
1997
Bojangles
 
Hickory
 
NC
 
—

(14) 
749

 
1,789

 
—

 
2,538

 
50

 
6/27/2013
 
1973
Bojangles
 
Fountain Inn
 
SC
 
—

 
287

 
1,150

 
—

 
1,437

 
20

 
10/10/2013
 
2012
Bojangles
 
Taylorsville
 
NC
 
—

(14) 
436

 
1,108

 
—

 
1,544

 
31

 
6/27/2013
 
1987
Bojangles
 
Troutman
 
NC
 
—

 
718

 
1,077

 
—

 
1,795

 
19

 
10/10/2013
 
2012
 Bridgestone Firestone
 
Kansas City
 
MO
 
—

(14) 
651

 
1,954

 
—

 
2,605

 
66

 
5/31/2013
 
2008
 Bruegger's Bagels
 
Durham
 
NC
 
—

(14) 
312

 
728

 
—

 
1,040

 
16

 
7/31/2013
 
1926
 Bucho's Mexican Food
 
Bolingbrook
 
IL
 
—

(14) 
470

 
137

 
—

 
607

 
4

 
6/27/2013
 
1992
 Buffalo Wild Wings
 
Langhorne
 
PA
 
—

(14) 
815

 
815

 
—

 
1,630

 
20

 
7/31/2013
 
1999
Burger King
 
Augusta
 
GA
 
—

(14) 
693

 
2,080

 
—

 
2,773

 
46

 
7/31/2013
 
1986
Burger King
 
Spanaway
 
WA
 
—

 
509

 
1,628

 
—

 
2,137

 
45

 
6/27/2013
 
1997
Burger King
 
Cleveland
 
MS
 
—

(14) 
688

 
1,606

 
—

 
2,294

 
35

 
7/31/2013
 
1985
Burger King
 
Brandon
 
MS
 
—

(14) 
649

 
1,513

 
—

 
2,162

 
42

 
6/27/2013
 
1981
Burger King
 
North Augusta
 
SC
 
—

(14) 
256

 
1,451

 
—

 
1,707

 
32

 
7/31/2013
 
1985
Burger King
 
Troy
 
AL
 
—

(14) 
461

 
1,383

 
—

 
1,844

 
30

 
7/31/2013
 
1984
Burger King
 
Charlotte
 
NC
 
—

 
1,105

 
1,372

 
—

 
2,477

 
38

 
6/27/2013
 
1997
Burger King
 
Martinez
 
GA
 
—

(14) 
909

 
1,350

 
—

 
2,259

 
37

 
6/27/2013
 
1998
Burger King
 
Greenville
 
MS
 
—

(14) 
573

 
1,337

 
—

 
1,910

 
29

 
7/31/2013
 
2004
Burger King
 
Germantown
 
WI
 
—

(14) 
644

 
1,300

 
—

 
1,944

 
36

 
6/27/2013
 
1986

F-107

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Burger King
 
Denver
 
CO
 
—

(14) 
872

 
1,242

 
—

 
2,114

 
34

 
6/27/2013
 
1994
Burger King
 
Alpharetta
 
GA
 
—

(14) 
501

 
1,219

 
—

 
1,720

 
34

 
6/27/2013
 
2001
Burger King
 
Amesbury
 
MA
 
—

(14) 
835

 
1,217

 
—

 
2,052

 
34

 
6/27/2013
 
1977
Burger King
 
Dothan
 
AL
 
—

(14) 
628

 
1,167

 
—

 
1,795

 
26

 
7/31/2013
 
1983
Burger King
 
Roswell
 
GA
 
—

(14) 
495

 
1,156

 
—

 
1,651

 
25

 
7/31/2013
 
1998
Burger King
 
Wahoo
 
NE
 
—

(14) 
196

 
1,109

 
—

 
1,305

 
24

 
7/31/2013
 
1990
Burger King
 
Dothan
 
AL
 
—

(14) 
594

 
1,104

 
—

 
1,698

 
24

 
7/31/2013
 
1999
Burger King
 
Cut Off
 
LA
 
—

 
726

 
1,088

 
—

 
1,814

 
24

 
7/31/2013
 
1990
Burger King
 
Defuniak Springs
 
FL
 
—

(14) 
362

 
1,087

 
—

 
1,449

 
24

 
7/31/2013
 
1989
Burger King
 
Blair
 
NE
 
—

(14) 
272

 
1,087

 
—

 
1,359

 
24

 
7/31/2013
 
1987
Burger King
 
Maywood
 
IL
 
—

(14) 
860

 
1,051

 
—

 
1,911

 
23

 
7/31/2013
 
2003
Burger King
 
North Augusta
 
SC
 
—

(14) 
450

 
1,050

 
—

 
1,500

 
23

 
7/31/2013
 
1985
Burger King
 
Bainbridge
 
GA
 
—

(14) 
347

 
1,042

 
—

 
1,389

 
23

 
7/31/2013
 
1998
Burger King
 
Sierra Vista
 
AZ
 
—

 
260

 
1,041

 
—

 
1,301

 
23

 
7/31/2013
 
1994
Burger King
 
Greenwood
 
MS
 
—

(14) 
692

 
1,038

 
—

 
1,730

 
23

 
7/31/2013
 
1988
Burger King
 
Kansas CIty
 
MO
 
—

 
444

 
1,036

 
—

 
1,480

 
23

 
7/31/2013
 
1984
Burger King
 
Laredo
 
TX
 
—

(14) 
684

 
1,026

 
—

 
1,710

 
23

 
7/31/2013
 
2002
Burger King
 
Andalusia
 
AL
 
—

(14) 
181

 
1,025

 
—

 
1,206

 
23

 
7/31/2013
 
2000
Burger King
 
Kingsford
 
MI
 
—

(14) 
53

 
1,015

 
—

 
1,068

 
22

 
7/31/2013
 
1983
Burger King
 
Red Oak
 
IA
 
—

(14) 
334

 
1,002

 
—

 
1,336

 
22

 
7/31/2013
 
1988
Burger King
 
Austin
 
TX
 
—

(14) 
666

 
999

 
—

 
1,665

 
28

 
6/27/2013
 
1998
Burger King
 
Cairo
 
GA
 
—

(14) 
245

 
981

 
—

 
1,226

 
22

 
7/31/2013
 
1997
Burger King
 
Alpharetta
 
GA
 
—

(14) 
1,128

 
977

 
—

 
2,105

 
27

 
6/27/2013
 
1993
Burger King
 
Springfield
 
FL
 
—

(14) 
324

 
971

 
—

 
1,295

 
21

 
7/31/2013
 
1999
Burger King
 
Opelousas
 
LA
 
—

 
964

 
964

 
—

 
1,928

 
21

 
7/31/2013
 
1998
Burger King
 
Panama City
 
FL
 
—

(14) 
319

 
956

 
—

 
1,275

 
21

 
7/31/2013
 
1998
Burger King
 
Chattanooga
 
TN
 
—

(14) 
637

 
955

 
—

 
1,592

 
21

 
7/31/2013
 
1985
Burger King
 
Dover
 
NH
 
—

(14) 
1,159

 
952

 
—

 
2,111

 
26

 
6/27/2013
 
1970
Burger King
 
Des Moines
 
IA
 
—

(14) 
1,160

 
949

 
—

 
2,109

 
21

 
7/31/2013
 
1987
Burger King
 
Alpharetta
 
GA
 
—

(14) 
795

 
943

 
—

 
1,738

 
26

 
6/27/2013
 
1997
Burger King
 
Philadelphia
 
MS
 
—

(14) 
402

 
939

 
—

 
1,341

 
21

 
7/31/2013
 
1993
Burger King
 
Brewton
 
AL
 
—

(14) 
307

 
920

 
—

 
1,227

 
20

 
7/31/2013
 
1993
Burger King
 
Stuart
 
IA
 
—

(14) 
607

 
911

 
—

 
1,518

 
20

 
7/31/2013
 
1997
Burger King
 
Yazoo City
 
MS
 
—

(14) 
489

 
909

 
—

 
1,398

 
20

 
7/31/2013
 
1993
Burger King
 
Marshfield
 
WI
 
—

(14) 
232

 
885

 
—

 
1,117

 
25

 
6/27/2013
 
1986
Burger King
 
Thomson
 
GA
 
—

(14) 
748

 
876

 
—

 
1,624

 
24

 
6/27/2013
 
1988
Burger King
 
Wilmington
 
NC
 
—

(14) 
573

 
870

 
—

 
1,443

 
24

 
6/27/2013
 
1999
Burger King
 
Alpharetta
 
GA
 
—

(14) 
635

 
865

 
—

 
1,500

 
24

 
6/27/2013
 
1998
Burger King
 
Clarksdale
 
MS
 
—

(14) 
865

 
865

 
—

 
1,730

 
19

 
7/31/2013
 
1988
Burger King
 
Opp
 
AL
 
—

(14) 
214

 
857

 
—

 
1,071

 
19

 
7/31/2013
 
1994
Burger King
 
Cincinnati
 
OH
 
—

 
353

 
824

 
—

 
1,177

 
18

 
7/31/2013
 
1974
Burger King
 
Greenville
 
MS
 
—

(14) 
351

 
820

 
—

 
1,171

 
18

 
7/31/2013
 
1993
Burger King
 
Grand Rapids
 
MI
 
—

(14) 
346

 
807

 
—

 
1,153

 
18

 
7/31/2013
 
1985

F-108

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Burger King
 
Grenada
 
MS
 
—

(14) 
536

 
805

 
—

 
1,341

 
18

 
7/31/2013
 
1989
Burger King
 
Clinton
 
NC
 
—

(14) 
494

 
801

 
—

 
1,295

 
22

 
6/27/2013
 
1999
Burger King
 
Chadbourn
 
NC
 
—

(14) 
353

 
797

 
—

 
1,150

 
22

 
6/27/2013
 
1999
Burger King
 
Texas City
 
TX
 
—

(14) 
421

 
782

 
—

 
1,203

 
17

 
7/31/2013
 
1984
Burger King
 
 New Philadelphia
 
OH
 
—

 
419

 
779

 
—

 
1,198

 
17

 
7/31/2013
 
1986
Burger King
 
Mansfield
 
OH
 
—

 
191

 
766

 
—

 
957

 
17

 
7/31/2013
 
1985
Burger King
 
Lake Charles
 
LA
 
—

 
610

 
746

 
—

 
1,356

 
16

 
7/31/2013
 
1990
Burger King
 
Warren
 
MI
 
—

 
248

 
745

 
—

 
993

 
16

 
7/31/2013
 
1987
Burger King
 
Atmore
 
AL
 
—

(14) 
181

 
723

 
—

 
904

 
16

 
7/31/2013
 
2000
Burger King
 
Tallahassee
 
FL
 
—

(14) 
720

 
720

 
—

 
1,440

 
16

 
7/31/2013
 
1998
Burger King
 
Weston
 
WI
 
—

(14) 
329

 
718

 
—

 
1,047

 
20

 
6/27/2013
 
1987
Burger King
 
Walker
 
MI
 
—

(14) 
305

 
711

 
—

 
1,016

 
16

 
7/31/2013
 
1975
Burger King
 
Evergreen
 
AL
 
—

(14) 
172

 
689

 
—

 
861

 
15

 
7/31/2013
 
1997
Burger King
 
Chicago Ridge
 
IL
 
—

(14) 
431

 
684

 
—

 
1,115

 
19

 
6/27/2013
 
1998
Burger King
 
Perry
 
IA
 
—

(14) 
557

 
680

 
—

 
1,237

 
15

 
7/31/2013
 
1997
Burger King
 
Springfield
 
IL
 
—

(14) 
354

 
677

 
—

 
1,031

 
19

 
6/27/2013
 
1995
Burger King
 
Hudsonville
 
MI
 
—

(14) 
451

 
676

 
—

 
1,127

 
15

 
7/31/2013
 
1988
Burger King
 
Natchez
 
MS
 
—

 
225

 
674

 
—

 
899

 
15

 
7/31/2013
 
1973
Burger King
 
Irondequoit
 
NY
 
—

 
988

 
659

 
—

 
1,647

 
14

 
7/31/2013
 
1980
Burger King
 
Enterprise
 
AL
 
—

(14) 
437

 
655

 
—

 
1,092

 
14

 
7/31/2013
 
1985
Burger King
 
Nashua
 
NH
 
—

(14) 
655

 
655

 
—

 
1,310

 
14

 
7/31/2013
 
2008
Burger King
 
Claremont
 
NC
 
—

(14) 
646

 
646

 
—

 
1,292

 
18

 
6/27/2013
 
2000
Burger King
 
Pontiac
 
IL
 
—

 
151

 
616

 
—

 
767

 
17

 
6/27/2013
 
1991
Burger King
 
L'Anse
 
MI
 
—

(14) 
32

 
616

 
—

 
648

 
14

 
7/31/2013
 
1999
Burger King
 
Hastings
 
MN
 
—

(14) 
328

 
608

 
—

 
936

 
13

 
7/31/2013
 
1990
Burger King
 
Gary
 
IN
 
—

(14) 
544

 
606

 
—

 
1,150

 
17

 
6/27/2013
 
1987
Burger King
 
Syracuse
 
NY
 
—

 
606

 
606

 
—

 
1,212

 
13

 
7/31/2013
 
1986
Burger King
 
Rhinelander
 
WI
 
—

(14) 
260

 
606

 
—

 
866

 
13

 
7/31/2013
 
1986
Burger King
 
Monroeville
 
AL
 
—

(14) 
325

 
604

 
—

 
929

 
13

 
7/31/2013
 
1997
Burger King
 
Menominee
 
MI
 
—

(14) 
494

 
604

 
—

 
1,098

 
13

 
7/31/2013
 
1986
Burger King
 
Asheville
 
NC
 
—

 
728

 
595

 
—

 
1,323

 
13

 
7/31/2013
 
1982
Burger King
 
Clearwater
 
FL
 
—

(14) 
981

 
591

 
—

 
1,572

 
16

 
6/27/2013
 
1980
Burger King
 
Shenandoah
 
IA
 
—

(14) 
313

 
582

 
—

 
895

 
13

 
7/31/2013
 
1988
Burger King
 
Raceland
 
LA
 
—

 
356

 
533

 
—

 
889

 
12

 
7/31/2013
 
1991
Burger King
 
Springfield
 
MA
 
—

 
983

 
516

 
—

 
1,499

 
14

 
6/27/2013
 
1974
Burger King
 
Spring Lake
 
MI
 
—

 
341

 
512

 
—

 
853

 
11

 
7/31/2013
 
1995
Burger King
 
Harvey
 
IL
 
—

 
403

 
507

 
—

 
910

 
14

 
6/27/2013
 
1997
Burger King
 
Anchorage
 
AK
 
—

 
427

 
489

 
—

 
916

 
14

 
6/27/2013
 
1982
Burger King
 
Dayton
 
OH
 
—

(14) 
569

 
466

 
—

 
1,035

 
10

 
7/31/2013
 
1990
Burger King
 
Gonzales
 
LA
 
—

 
380

 
465

 
—

 
845

 
10

 
7/31/2013
 
1990
Burger King
 
Gallatin
 
TN
 
—

(14) 
199

 
463

 
—

 
662

 
10

 
7/31/2013
 
1984
Burger King
 
Lake Charles
 
LA
 
—

 
456

 
456

 
—

 
912

 
10

 
7/31/2013
 
1985
Burger King
 
Tallahassee
 
FL
 
—

(14) 
843

 
454

 
—

 
1,297

 
10

 
7/31/2013
 
1980

F-109

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Burger King
 
Palatine
 
IL
 
—

 
352

 
426

 
—

 
778

 
12

 
6/27/2013
 
1995
Burger King
 
Largo
 
FL
 
—

 
683

 
412

 
—

 
1,095

 
11

 
6/27/2013
 
1984
Burger King
 
Harrisburg
 
PA
 
—

(14) 
619

 
412

 
—

 
1,031

 
9

 
7/31/2013
 
1985
Burger King
 
Belding
 
MI
 
—

 
221

 
411

 
—

 
632

 
9

 
7/31/2013
 
1994
Burger King
 
Niceville
 
FL
 
—

(14) 
598

 
399

 
—

 
997

 
9

 
7/31/2013
 
1994
Burger King
 
Metairie
 
LA
 
—

 
728

 
392

 
—

 
1,120

 
9

 
7/31/2013
 
1992
Burger King
 
Hamburg
 
NY
 
—

(14) 
403

 
383

 
—

 
786

 
11

 
6/27/2013
 
1974
Burger King
 
Valdosta
 
GA
 
—

(14) 
564

 
376

 
—

 
940

 
8

 
7/31/2013
 
1987
Burger King
 
Cedar Lake
 
IN
 
—

 
327

 
374

 
—

 
701

 
10

 
6/27/2013
 
1986
Burger King
 
Jenison
 
MI
 
—

 
233

 
349

 
—

 
582

 
8

 
7/31/2013
 
1994
Burger King
 
Detroit
 
MI
 
—

(14) 
614

 
331

 
—

 
945

 
7

 
7/31/2013
 
1988
Burger King
 
Apex
 
NC
 
—

 
366

 
324

 
—

 
690

 
9

 
6/27/2013
 
1992
Burger King
 
East Greenbush
 
NY
 
—

 
404

 
269

 
—

 
673

 
7

 
6/27/2013
 
1980
Burger King
 
Dunn
 
NC
 
—

 
328

 
268

 
—

 
596

 
6

 
7/31/2013
 
1989
Burnie Bistro's
 
Clearwater
 
FL
 
—

(14) 
25

 
14

 
—

 
39

 
—

 
7/31/2013
 
1987
Captain D's
 
Florence
 
KY
 
—

(14) 
248

 
325

 
—

 
573

 
9

 
6/27/2013
 
1981
Captain D's
 
Duncanville
 
TX
 
—

 
295

 
246

 
—

 
541

 
7

 
6/27/2013
 
1982
Carl's Jr.
 
Purcell
 
OK
 
—

(14) 
77

 
513

 
—

 
590

 
14

 
6/27/2013
 
1980
Casa Del Rio
 
Wadsworth
 
OH
 
—

 
130

 
389

 
—

 
519

 
10

 
7/31/2013
 
1971
Cashland
 
Celina
 
OH
 
—

 
108

 
132

 
—

 
240

 
3

 
7/31/2013
 
1995
Castle Dental
 
Murfreesboro
 
TN
 
—

(14) 
256

 
256

 
—

 
512

 
6

 
7/31/2013
 
1996
 Chappala Mexican Restaurant
 
Nampa
 
ID
 
—

 
473

 
692

 
—

 
1,165

 
20

 
6/27/2013
 
1998
Checkers
 
Jacksonville
 
FL
 
—

(14) 
731

 
1,096

 
—

 
1,827

 
24

 
7/31/2013
 
1993
Checkers
 
Tampa
 
FL
 
—

 
736

 
—

 
—

 
736

 
—

 
6/27/2013
 
N/A
Checkers
 
Miami
 
FL
 
—

 
621

 
—

 
—

 
621

 
—

 
7/31/2013
 
1993
Checkers
 
Orlando
 
FL
 
—

 
1,033

 
—

 
—

 
1,033

 
—

 
7/31/2013
 
N/A
Checkers
 
Winter Springs
 
FL
 
—

 
734

 
—

 
—

 
734

 
—

 
7/31/2013
 
N/A
 Cheddar's Casual Cafe'
 
Brandon
 
FL
 
—

(14) 
860

 
3,071

 
—

 
3,931

 
88

 
6/27/2013
 
2003
 Cheddar's Casual Cafe'
 
Lubbock
 
TX
 
—

(14) 
1,053

 
2,345

 
—

 
3,398

 
67

 
6/27/2013
 
1997
 Cheddar's Casual Cafe'
 
Bolingbrook
 
IL
 
—

(14) 
1,344

 
1,760

 
—

 
3,104

 
50

 
6/27/2013
 
1997
 Chevys Fresh Mex
 
Miami
 
FL
 
—

(14) 
1,455

 
783

 
—

 
2,238

 
19

 
7/31/2013
 
1995
 Chicago Steak & Lemonade
 
Louisville
 
KY
 
—

 
195

 
18

 
—

 
213

 
1

 
6/27/2013
 
1980
 Chicago Style Gyros
 
Nashville
 
TN
 
—

 
201

 
134

 
—

 
335

 
3

 
7/31/2013
 
1986
Chili's
 
East Peoria
 
IL
 
—

(14) 
1,023

 
2,347

 
—

 
3,370

 
67

 
6/27/2013
 
2003
Chili's
 
Amarillo
 
TX
 
—

 
811

 
1,893

 
—

 
2,704

 
47

 
7/31/2013
 
1984
China Buffet
 
Alvin
 
TX
 
—

(14) 
110

 
299

 
—

 
409

 
9

 
6/27/2013
 
1982
China Buffet
 
Angleton
 
TX
 
—

(14) 
127

 
272

 
—

 
399

 
8

 
6/27/2013
 
1982
China King
 
Belen
 
NM
 
—

(14) 
94

 
94

 
—

 
188

 
3

 
6/27/2013
 
1980
China One
 
Bay City
 
TX
 
—

(14) 
229

 
124

 
—

 
353

 
3

 
7/31/2013
 
1985
 Church's Chicken
 
Bay Minette
 
AL
 
—

(14) 
134

 
757

 
—

 
891

 
17

 
7/31/2013
 
2003
 Church's Chicken
 
Jackson
 
AL
 
—

(14) 
127

 
719

 
—

 
846

 
16

 
7/31/2013
 
1982
 Church's Chicken
 
Augusta
 
GA
 
—

(14) 
256

 
597

 
—

 
853

 
13

 
7/31/2013
 
1976
 Church's Chicken
 
Atmore
 
AL
 
—

(14) 
144

 
574

 
—

 
718

 
13

 
7/31/2013
 
1976

F-110

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Church's Chicken
 
Augusta
 
GA
 
—

(14) 
178

 
533

 
—

 
711

 
12

 
7/31/2013
 
1981
 Church's Chicken
 
Spartanburg
 
SC
 
—

(14) 
350

 
525

 
—

 
875

 
12

 
7/31/2013
 
1972
 Church's Chicken
 
Flomaton
 
AL
 
—

(14) 
173

 
518

 
—

 
691

 
11

 
7/31/2013
 
1981
 Church's Chicken
 
Greenville
 
SC
 
—

(14) 
325

 
487

 
—

 
812

 
11

 
7/31/2013
 
1984
 Church's Chicken
 
Greenville
 
SC
 
—

(14) 
254

 
472

 
—

 
726

 
10

 
7/31/2013
 
2009
 Church's Chicken
 
Augusta
 
GA
 
—

(14) 
196

 
458

 
—

 
654

 
10

 
7/31/2013
 
1984
 Church's Chicken
 
Columbia
 
SC
 
—

(14) 
437

 
437

 
—

 
874

 
10

 
7/31/2013
 
1978
 Church's Chicken
 
Columbia
 
SC
 
—

(14) 
231

 
428

 
—

 
659

 
9

 
7/31/2013
 
1977
 Church's Chicken
 
Augusta
 
GA
 
—

(14) 
178

 
414

 
—

 
592

 
9

 
7/31/2013
 
1978
 Church's Chicken
 
 North Charleston
 
SC
 
—

(14) 
407

 
407

 
—

 
814

 
9

 
7/31/2013
 
1977
 Church's Chicken
 
Orlando
 
FL
 
—

(14) 
254

 
380

 
—

 
634

 
8

 
7/31/2013
 
1984
 Church's Chicken
 
Greenwood
 
SC
 
—

(14) 
188

 
349

 
—

 
537

 
8

 
7/31/2013
 
2002
 Church's Chicken
 
Charleston
 
SC
 
—

(14) 
421

 
344

 
—

 
765

 
8

 
7/31/2013
 
1973
 Church's Chicken
 
Greenville
 
SC
 
—

(14) 
280

 
342

 
—

 
622

 
8

 
7/31/2013
 
1970
 Church's Chicken
 
North Charleston
 
SC
 
—

(14) 
302

 
302

 
—

 
604

 
7

 
7/31/2013
 
1976
 Church's Chicken
 
Anderson
 
SC
 
—

(14) 
647

 
277

 
—

 
924

 
6

 
7/31/2013
 
1981
 Church's Chicken
 
Spartanburg
 
SC
 
—

(14) 
411

 
274

 
—

 
685

 
6

 
7/31/2013
 
1978
 Church's Chicken
 
Orangeburg
 
SC
 
—

(14) 
407

 
271

 
—

 
678

 
6

 
7/31/2013
 
1985
 Church's Chicken
 
Nashville
 
TN
 
—

(14) 
186

 
186

 
—

 
372

 
4

 
7/31/2013
 
1980
 Church's Chicken
 
Charleston
 
SC
 
—

(14) 
500

 
167

 
—

 
667

 
4

 
7/31/2013
 
1979
 Church's Chicken
 
Bowling Green
 
KY
 
—

(14) 
100

 
156

 
—

 
256

 
4

 
6/27/2013
 
1984
Citizens Bank
 
Milton
 
MA
 
—

(14) 
619

 
2,476

 
—

 
3,095

 
144

 
12/14/2012
 
1968
Citizens Bank
 
Pittsburgh
 
PA
 
—

(14) 
268

 
2,413

 
—

 
2,681

 
140

 
12/14/2012
 
1970
Citizens Bank
 
Orland Hills
 
IL
 
—

(14) 
1,253

 
2,327

 
—

 
3,580

 
135

 
12/14/2012
 
1988
Citizens Bank
 
Pittsburgh
 
PA
 
—

(14) 
206

 
1,852

 
—

 
2,058

 
107

 
12/14/2012
 
1923
Citizens Bank
 
Chicago Heights
 
IL
 
—

(14) 
182

 
1,637

 
—

 
1,819

 
80

 
1/24/2013
 
1996
Citizens Bank
 
Reading
 
PA
 
—

(14) 
269

 
1,524

 
—

 
1,793

 
61

 
4/12/2013
 
1919
Citizens Bank
 
Carnegie
 
PA
 
—

(14) 
73

 
1,396

 
—

 
1,469

 
81

 
12/14/2012
 
1920
Citizens Bank
 
Cranston
 
RI
 
—

(14) 
411

 
1,234

 
—

 
1,645

 
72

 
12/14/2012
 
1967
Citizens Bank
 
Pittsburgh
 
PA
 
—

(14) 
516

 
1,204

 
—

 
1,720

 
70

 
12/14/2012
 
1970
Citizens Bank
 
Butler
 
PA
 
—

(14) 
286

 
1,144

 
—

 
1,430

 
66

 
12/14/2012
 
1966
Citizens Bank
 
Pittsburgh
 
PA
 
—

(14) 
196

 
1,110

 
—

 
1,306

 
64

 
12/14/2012
 
1980
Citizens Bank
 
Philadelphia
 
PA
 
—

(14) 
266

 
1,065

 
—

 
1,331

 
62

 
12/14/2012
 
1971
Citizens Bank
 
Kittanning
 
PA
 
—

(14) 
56

 
1,060

 
—

 
1,116

 
62

 
12/14/2012
 
1889
Citizens Bank
 
Pittsburgh
 
PA
 
—

(14) 
255

 
1,019

 
—

 
1,274

 
59

 
12/14/2012
 
1970
Citizens Bank
 
Troy
 
MI
 
—

(14) 
312

 
935

 
—

 
1,247

 
54

 
12/14/2012
 
1980
Citizens Bank
 
Warrendale
 
PA
 
—

(14) 
611

 
916

 
—

 
1,527

 
53

 
12/14/2012
 
1981
Citizens Bank
 
Providence
 
RI
 
—

(14) 
300

 
899

 
—

 
1,199

 
52

 
12/14/2012
 
1960
Citizens Bank
 
N. Providence
 
RI
 
—

(14) 
223

 
892

 
—

 
1,115

 
52

 
12/14/2012
 
1971
Citizens Bank
 
Pitcairn
 
PA
 
—

(14) 
46

 
867

 
—

 
913

 
50

 
12/14/2012
 
1985
Citizens Bank
 
Greensburg
 
PA
 
—

(14) 
45

 
861

 
—

 
906

 
50

 
12/14/2012
 
1957
Citizens Bank
 
Westchester
 
IL
 
—

(14) 
366

 
853

 
—

 
1,219

 
38

 
2/22/2013
 
1986
Citizens Bank
 
Ford City
 
PA
 
—

(14) 
89

 
802

 
—

 
891

 
47

 
12/14/2012
 
1975

F-111

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Citizens Bank
 
Reading
 
PA
 
—

(14) 
267

 
802

 
—

 
1,069

 
47

 
12/14/2012
 
1970
Citizens Bank
 
Aliquippa
 
PA
 
—

(14) 
138

 
782

 
—

 
920

 
45

 
12/14/2012
 
1953
Citizens Bank
 
Wexford
 
PA
 
—

(14) 
180

 
719

 
—

 
899

 
42

 
12/14/2012
 
1975
Citizens Bank
 
Farmington
 
MI
 
—

(14) 
303

 
707

 
—

 
1,010

 
41

 
12/14/2012
 
1962
Citizens Bank
 
East Greenwich
 
RI
 
—

(14) 
227

 
680

 
—

 
907

 
39

 
12/14/2012
 
1959
Citizens Bank
 
Rumford
 
RI
 
—

(14) 
352

 
654

 
—

 
1,006

 
38

 
12/14/2012
 
1977
Citizens Bank
 
Highspire
 
PA
 
—

(14) 
216

 
649

 
—

 
865

 
38

 
12/14/2012
 
1974
Citizens Bank
 
Camp Hill
 
PA
 
—

(14) 
430

 
645

 
—

 
1,075

 
37

 
12/14/2012
 
1971
Citizens Bank
 
Parma Heights
 
OH
 
—

(14) 
426

 
638

 
—

 
1,064

 
37

 
12/14/2012
 
1957
Citizens Bank
 
Oil City
 
PA
 
—

(14) 
110

 
623

 
—

 
733

 
36

 
12/14/2012
 
1965
City Buffet
 
Alexander City
 
AL
 
—

(14) 
292

 
301

 
—

 
593

 
9

 
6/27/2013
 
1988
 Cowboy's Express
 
Monticello
 
AR
 
—

(14) 
43

 
36

 
—

 
79

 
1

 
6/27/2013
 
1982
Cuco Mexican
 
Circleville
 
OH
 
—

 
149

 
164

 
—

 
313

 
5

 
6/27/2013
 
1986
CVS
 
Hoover
 
AL
 
—

(14) 
1,239

 
2,890

 
—

 
4,129

 
101

 
5/31/2013
 
2003
CVS
 
Columbia
 
SC
 
—

 
—

 
2,811

 
—

 
2,811

 
84

 
7/2/2013
 
2006
CVS
 
New Castle
 
PA
 
1,562

 
412

 
2,337

 
—

 
2,749

 
164

 
10/31/2012
 
1999
CVS
 
Hardy
 
VA
 
—

(14) 
686

 
2,059

 
—

 
2,745

 
72

 
5/16/2013
 
2005
CVS
 
Towanda
 
PA
 
—

(14) 
—

 
877

 
—

 
877

 
35

 
4/24/2013
 
2003
Dairy Queen
 
Woodville
 
TX
 
—

(14) 
98

 
65

 
—

 
163

 
1

 
7/31/2013
 
1980
 DaVita Dialysis
 
Hiawatha
 
KS
 
—

(14) 
69

 
1,302

 
—

 
1,371

 
36

 
5/30/2013
 
2012
 DaVita Dialysis
 
Palatka
 
FL
 
—

 
207

 
1,173

 
—

 
1,380

 
32

 
6/5/2013
 
2013
 DaVita Dialysis
 
Hartsville
 
SC
 
—

(14) 
126

 
1,136

 
—

 
1,262

 
31

 
5/30/2013
 
2013
 DaVita Dialysis
 
Cincinnati
 
OH
 
—

(14) 
219

 
878

 
—

 
1,097

 
31

 
3/28/2013
 
2008
 DaVita Dialysis
 
Georgetown
 
OH
 
—

(14) 
125

 
706

 
—

 
831

 
25

 
3/28/2013
 
2009
Denny's
 
Tempe
 
AZ
 
—

 
1,960

 
1,273

 
—

 
3,233

 
36

 
6/27/2013
 
1980
Denny's
 
Phoenix
 
AZ
 
—

 
825

 
1,237

 
—

 
2,062

 
31

 
7/31/2013
 
2005
Denny's
 
Idaho Falls
 
ID
 
—

 
538

 
1,183

 
—

 
1,721

 
34

 
6/27/2013
 
1995
Denny's
 
Mesa
 
AZ
 
—

 
1,089

 
891

 
—

 
1,980

 
22

 
7/31/2013
 
1994
Denny's
 
Tempe
 
AZ
 
—

 
1,567

 
844

 
—

 
2,411

 
21

 
7/31/2013
 
1994
Denny's
 
Scottsdale
 
AZ
 
—

(14) 
736

 
491

 
—

 
1,227

 
12

 
7/31/2013
 
1985
Denny's
 
Peoria
 
AZ
 
—

 
310

 
457

 
—

 
767

 
13

 
6/27/2013
 
1987
Denny's
 
Marion
 
OH
 
—

(14) 
115

 
390

 
—

 
505

 
11

 
6/27/2013
 
1989
Denny's
 
Spartanburg
 
SC
 
—

 
656

 
353

 
—

 
1,009

 
9

 
7/31/2013
 
1991
Denny's
 
Henrietta
 
NY
 
—

 
361

 
241

 
—

 
602

 
6

 
7/31/2013
 
1970
Denny's
 
Bloomington
 
MN
 
—

 
1,184

 
—

 
—

 
1,184

 
—

 
7/31/2013
 
N/A
Dollar General
 
Holly Hill
 
SC
 
—

(14) 
259

 
2,333

 
—

 
2,592

 
109

 
3/6/2013
 
2013
Dollar General
 
Presidio
 
TX
 
—

(14) 
72

 
1,370

 
—

 
1,442

 
58

 
3/28/2013
 
2013
Dollar General
 
Savanna
 
IL
 
—

(14) 
273

 
1,093

 
—

 
1,366

 
61

 
12/31/2012
 
2012
Dollar General
 
Chelyan
 
WV
 
—

 
273

 
1,092

 
—

 
1,365

 
15

 
9/27/2013
 
2013
Dollar General
 
Adams
 
MA
 
—

 
254

 
1,016

 
—

 
1,270

 
14

 
10/10/2013
 
2012
Dollar General
 
Modena
 
NY
 
—

 
249

 
996

 
—

 
1,245

 
14

 
10/10/2013
 
2012
Dollar General
 
Mount Morris
 
MI
 
—

(14) 
110

 
988

 
—

 
1,098

 
46

 
2/27/2013
 
2012
Dollar General
 
Eldon
 
MO
 
—

(14) 
52

 
986

 
—

 
1,038

 
51

 
2/14/2013
 
2013

F-112

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Dollar General
 
Malden
 
MO
 
—

 
108

 
974

 
—

 
1,082

 
23

 
8/2/2013
 
2013
Dollar General
 
Lytle
 
TX
 
—

 
243

 
971

 
—

 
1,214

 
9

 
10/30/2013
 
2013
Dollar General
 
San Antonio
 
TX
 
—

(14) 
239

 
956

 
—

 
1,195

 
45

 
3/11/2013
 
2013
Dollar General
 
San Juan
 
TX
 
—

 
169

 
956

 
—

 
1,125

 
9

 
11/15/2013
 
2013
Dollar General
 
Henry
 
IL
 
—

(14) 
104

 
934

 
—

 
1,038

 
31

 
5/23/2013
 
2013
Dollar General
 
South Pekin
 
IL
 
—

 
104

 
933

 
—

 
1,037

 
22

 
8/14/2013
 
2013
Dollar General
 
San Antonio
 
TX
 
—

(14) 
163

 
926

 
—

 
1,089

 
48

 
2/14/2013
 
2012
Dollar General
 
Laurie
 
MO
 
—

 
102

 
918

 
—

 
1,020

 
9

 
11/15/2013
 
2013
Dollar General
 
Milaca
 
MN
 
—

 
102

 
916

 
—

 
1,018

 
13

 
9/24/2013
 
2013
Dollar General
 
Edinburg
 
TX
 
—

 
102

 
914

 
—

 
1,016

 
21

 
7/16/2013
 
2013
Dollar General
 
De Soto
 
MO
 
—

(14) 
101

 
912

 
—

 
1,013

 
47

 
2/14/2013
 
2013
Dollar General
 
Shelbina
 
MO
 
—

(14) 
101

 
911

 
—

 
1,012

 
30

 
5/22/2013
 
2013
Dollar General
 
Kyle
 
TX
 
—

 
101

 
910

 
—

 
1,011

 
4

 
12/6/2013
 
2013
Dollar General
 
Eagle Grove
 
IA
 
—

 
100

 
902

 
—

 
1,002

 
25

 
7/9/2013
 
2013
Dollar General
 
Farmington
 
NM
 
—

 
224

 
898

 
—

 
1,122

 
25

 
7/11/2013
 
2013
Dollar General
 
Mission
 
TX
 
—

(14) 
158

 
894

 
—

 
1,052

 
38

 
3/27/2013
 
2013
Dollar General
 
Adkins
 
TX
 
—

(14) 
157

 
889

 
—

 
1,046

 
50

 
12/31/2012
 
2012
Dollar General
 
New Braunfels
 
TX
 
—

 
156

 
883

 
—

 
1,039

 
8

 
10/30/2013
 
2013
Dollar General
 
Aurora
 
MO
 
—

(14) 
98

 
881

 
—

 
979

 
41

 
2/28/2013
 
2013
Dollar General
 
Millwood
 
WV
 
—

 
98

 
881

 
—

 
979

 
25

 
7/2/2013
 
2013
Dollar General
 
San Antonio
 
TX
 
—

 
220

 
880

 
—

 
1,100

 
25

 
7/9/2013
 
2013
Dollar General
 
Pequot Lakes
 
MN
 
—

 
155

 
880

 
—

 
1,035

 
16

 
8/22/2013
 
2013
Dollar General
 
Amarillo
 
TX
 
—

 
97

 
877

 
—

 
974

 
21

 
8/13/2013
 
2013
Dollar General
 
Mahomet
 
IL
 
—

 
292

 
877

 
—

 
1,169

 
16

 
8/22/2013
 
2013
Dollar General
 
Manistique
 
MI
 
—

(14) 
155

 
876

 
—

 
1,031

 
41

 
2/27/2013
 
2012
Dollar General
 
West Union
 
SC
 
—

 
46

 
868

 
—

 
914

 
24

 
7/3/2013
 
2011
Dollar General
 
Fairbury
 
IL
 
—

 
96

 
867

 
—

 
963

 
28

 
6/7/2013
 
2013
Dollar General
 
Amarillo
 
TX
 
—

 
153

 
866

 
—

 
1,019

 
20

 
8/2/2013
 
2013
Dollar General
 
Cedar Falls
 
IA
 
—

 
96

 
862

 
—

 
958

 
16

 
8/28/2013
 
2013
Dollar General
 
Mercedes
 
TX
 
—

 
215

 
859

 
—

 
1,074

 
20

 
8/2/2013
 
2013
Dollar General
 
Ganado
 
TX
 
—

 
95

 
857

 
—

 
952

 
20

 
8/13/2013
 
2013
Dollar General
 
New Braunfels
 
TX
 
—

(14) 
95

 
855

 
—

 
950

 
44

 
2/14/2013
 
2013
Dollar General
 
Manchester
 
MI
 
—

(14) 
213

 
853

 
—

 
1,066

 
40

 
2/27/2013
 
2013
Dollar General
 
Guyton
 
GA
 
—

(14) 
213

 
852

 
—

 
1,065

 
28

 
6/3/2013
 
2011
Dollar General
 
Annandale
 
MN
 
—

 
212

 
848

 
—

 
1,060

 
20

 
8/2/2013
 
2013
Dollar General
 
Staples
 
MN
 
—

 
150

 
848

 
—

 
998

 
16

 
9/4/2013
 
2013
Dollar General
 
Lexington
 
MO
 
—

 
149

 
846

 
—

 
995

 
16

 
9/13/2013
 
2013
Dollar General
 
Whitesburg
 
KY
 
—

(14) 
211

 
845

 
—

 
1,056

 
28

 
5/30/2013
 
2012
Dollar General
 
Lubbock
 
TX
 
—

(14) 
148

 
841

 
—

 
989

 
28

 
5/16/2013
 
2013
Dollar General
 
Brookeland
 
TX
 
—

 
93

 
840

 
—

 
933

 
20

 
8/15/2013
 
2013
Dollar General
 
Bastrop
 
LA
 
—

 
148

 
838

 
—

 
986

 
24

 
7/1/2013
 
2013
Dollar General
 
Rolla
 
MO
 
—

 
209

 
835

 
—

 
1,044

 
16

 
8/21/2013
 
2013
Dollar General
 
Lonedell
 
MO
 
—

(14) 
208

 
833

 
—

 
1,041

 
31

 
4/26/2013
 
2013

F-113

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Dollar General
 
Boling
 
TX
 
—

 
92

 
831

 
—

 
923

 
19

 
8/13/2013
 
2013
Dollar General
 
Avinger
 
TX
 
—

 
44

 
830

 
—

 
874

 
19

 
8/8/2013
 
2013
Dollar General
 
Roodhouse
 
IL
 
—

(14) 
207

 
829

 
—

 
1,036

 
47

 
12/31/2012
 
2012
Dollar General
 
Lacy Lakeview
 
TX
 
—

(14) 
146

 
826

 
—

 
972

 
50

 
11/16/2012
 
2012
Dollar General
 
Elkview
 
WV
 
—

 
274

 
823

 
—

 
1,097

 
19

 
8/2/2013
 
2013
Dollar General
 
Weslaco
 
TX
 
—

 
205

 
822

 
—

 
1,027

 
8

 
10/16/2013
 
2013
Dollar General
 
Buchanan Dam
 
TX
 
562

 
145

 
820

 
—

 
965

 
58

 
9/28/2012
 
2012
Dollar General
 
McMechen
 
WV
 
—

(14) 
91

 
819

 
—

 
910

 
46

 
1/9/2013
 
2012
Dollar General
 
Sand Springs
 
OK
 
—

 
43

 
819

 
—

 
862

 
15

 
9/3/2013
 
2013
Dollar General
 
Joplin
 
MO
 
—

 
144

 
816

 
—

 
960

 
8

 
11/12/2013
 
2013
Dollar General
 
San Antonio
 
TX
 
—

(14) 
271

 
812

 
—

 
1,083

 
27

 
5/23/2013
 
2013
Dollar General
 
Skidmore
 
TX
 
—

(14) 
90

 
811

 
—

 
901

 
42

 
2/14/2013
 
2013
Dollar General
 
Savannah
 
MO
 
—

 
270

 
811

 
—

 
1,081

 
15

 
8/23/2013
 
2013
Dollar General
 
Sand Springs
 
OK
 
—

 
143

 
811

 
—

 
954

 
15

 
9/3/2013
 
2013
Dollar General
 
Beeville
 
TX
 
—

(14) 
90

 
810

 
—

 
900

 
49

 
11/19/2012
 
2012
Dollar General
 
Roseau
 
MN
 
—

 
143

 
808

 
—

 
951

 
8

 
10/30/2013
 
2013
Dollar General
 
San Benito
 
TX
 
—

 
202

 
807

 
—

 
1,009

 
15

 
8/23/2013
 
2013
Dollar General
 
Belton
 
TX
 
—

(14) 
89

 
804

 
—

 
893

 
38

 
2/28/2013
 
2013
Dollar General
 
Hawley
 
MN
 
—

 
89

 
803

 
—

 
892

 
8

 
10/16/2013
 
2013
Dollar General
 
East Bernstadt
 
KY
 
—

(14) 
141

 
799

 
—

 
940

 
26

 
5/30/2013
 
2012
Dollar General
 
Lubbock
 
TX
 
—

 
199

 
796

 
—

 
995

 
15

 
8/28/2013
 
2013
Dollar General
 
Wakefield
 
MI
 
—

(14) 
88

 
794

 
—

 
882

 
45

 
12/19/2012
 
2012
Dollar General
 
Romulus
 
MI
 
—

(14) 
199

 
794

 
—

 
993

 
37

 
2/27/2013
 
2011
Dollar General
 
Amarillo
 
TX
 
—

 
198

 
794

 
—

 
992

 
22

 
7/11/2013
 
2013
Dollar General
 
Sand Springs
 
OK
 
—

 
198

 
791

 
—

 
989

 
15

 
9/3/2013
 
2012
Dollar General
 
Billings
 
MO
 
—

 
139

 
790

 
—

 
929

 
7

 
10/17/2013
 
2013
Dollar General
 
Caulfield
 
MO
 
—

(14) 
139

 
789

 
—

 
928

 
44

 
12/31/2012
 
2012
Dollar General
 
DeSoto
 
IL
 
—

(14) 
138

 
784

 
—

 
922

 
33

 
3/26/2013
 
2013
Dollar General
 
Powhatan Point
 
WV
 
—

 
138

 
784

 
—

 
922

 
22

 
7/2/2013
 
2013
Dollar General
 
Cowen
 
WV
 
—

(14) 
196

 
783

 
—

 
979

 
40

 
1/16/2013
 
2012
Dollar General
 
Camden
 
MI
 
—

(14) 
138

 
781

 
—

 
919

 
37

 
2/27/2013
 
2013
Dollar General
 
Berea
 
KY
 
—

(14) 
138

 
781

 
—

 
919

 
26

 
5/30/2013
 
2012
Dollar General
 
Moody
 
TX
 
—

 
41

 
781

 
—

 
822

 
26

 
6/11/2013
 
2013
Dollar General
 
Doolittle
 
MO
 
—

 
137

 
778

 
—

 
915

 
18

 
8/2/2013
 
2013
Dollar General
 
San Antonio
 
TX
 
—

 
333

 
776

 
—

 
1,109

 
18

 
8/13/2013
 
2013
Dollar General
 
Eubank
 
KY
 
—

(14) 
137

 
775

 
—

 
912

 
25

 
5/30/2013
 
2013
Dollar General
 
Center Point
 
IA
 
—

(14) 
136

 
772

 
—

 
908

 
43

 
12/31/2012
 
2012
Dollar General
 
Texarkana
 
TX
 
—

 
136

 
772

 
—

 
908

 
7

 
10/25/2013
 
2013
Dollar General
 
Coldiron
 
KY
 
—

(14) 
187

 
747

 
—

 
934

 
24

 
5/30/2013
 
2013
Dollar General
 
Diana
 
TX
 
—

 
186

 
743

 
—

 
929

 
14

 
8/27/2013
 
2013
Dollar General
 
Rapid City
 
MI
 
—

(14) 
179

 
716

 
—

 
895

 
34

 
2/27/2013
 
2012
Dollar General
 
Cedar Creek
 
TX
 
—

(14) 
291

 
680

 
—

 
971

 
41

 
11/16/2012
 
2012
 Dragon China Buffet
 
Carlsbad
 
NM
 
—

(14) 
208

 
104

 
—

 
312

 
3

 
6/27/2013
 
1995

F-114

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 East Supreme Buffet
 
Whitehall
 
PA
 
—

(14) 
492

 
505

 
—

 
997

 
14

 
6/27/2013
 
1997
Eegee's
 
Tucson
 
AZ
 
—

 
357

 
436

 
—

 
793

 
10

 
7/31/2013
 
1990
El Chico
 
Killeen
 
TX
 
—

 
534

 
992

 
—

 
1,526

 
25

 
7/31/2013
 
1993
 El Tapatio Mexican Restaurant
 
Page
 
AZ
 
—

(14) 
170

 
133

 
—

 
303

 
4

 
6/27/2013
 
1988
Family Dollar
 
Mount Vernon
 
IL
 
—

 
117

 
1,050

 
—

 
1,167

 
30

 
7/11/2013
 
2012
Family Dollar
 
Crosby
 
MN
 
—

 
49

 
928

 
—

 
977

 
26

 
7/11/2013
 
1985
Family Dollar
 
Toledo
 
OH
 
—

 
226

 
905

 
—

 
1,131

 
25

 
7/11/2013
 
1942
Family Dollar
 
Carlin
 
NV
 
—

 
99

 
895

 
—

 
994

 
17

 
9/13/2013
 
2012
Family Dollar
 
Cold Springs
 
NV
 
—

 
217

 
869

 
—

 
1,086

 
16

 
9/13/2013
 
2013
Family Dollar
 
Des Moines
 
IA
 
—

 
152

 
863

 
—

 
1,015

 
16

 
8/30/2013
 
2013
Family Dollar
 
Cincinnatus
 
NY
 
—

 
287

 
862

 
—

 
1,149

 
—

 
12/30/2013
 
2013
Family Dollar
 
Etoile
 
TX
 
—

 
45

 
850

 
—

 
895

 
20

 
8/6/2013
 
2013
Family Dollar
 
Mountain View
 
WY
 
—

 
44

 
838

 
—

 
882

 
16

 
9/13/2013
 
2013
Family Dollar
 
Markesan
 
WI
 
—

 
92

 
831

 
—

 
923

 
4

 
12/12/2013
 
2013
Family Dollar
 
Thorp
 
WI
 
—

 
90

 
810

 
—

 
900

 
15

 
8/30/2013
 
2013
Family Dollar
 
Webster
 
WI
 
—

 
43

 
808

 
—

 
851

 
23

 
7/11/2013
 
2013
Family Dollar
 
Oakwood
 
TX
 
—

 
133

 
752

 
—

 
885

 
4

 
11/20/2013
 
2013
Family Dollar
 
Clarendon
 
TX
 
—

 
83

 
749

 
—

 
832

 
11

 
9/17/2013
 
2013
Family Dollar
 
Gretna
 
VA
 
—

 
131

 
744

 
—

 
875

 
21

 
7/2/2013
 
2012
Family Dollar
 
Somerville
 
TX
 
—

(14) 
131

 
743

 
—

 
874

 
42

 
12/31/2012
 
2012
Family Dollar
 
Lovelady
 
TX
 
—

(14) 
82

 
740

 
—

 
822

 
31

 
3/27/2013
 
2012
Family Dollar
 
Birch Run
 
MI
 
—

 
81

 
729

 
—

 
810

 
20

 
7/11/2013
 
1950
Family Dollar
 
Hoosick Falls
 
NY
 
—

(14) 
181

 
724

 
—

 
905

 
27

 
4/26/2013
 
2013
Family Dollar
 
Marble Hill
 
MO
 
—

 
38

 
719

 
—

 
757

 
13

 
8/29/2013
 
2013
Family Dollar
 
Houston
 
TX
 
—

(14) 
174

 
696

 
—

 
870

 
26

 
4/26/2013
 
1985
Family Dollar
 
University Park
 
IL
 
—

 
295

 
688

 
—

 
983

 
6

 
10/29/2013
 
2013
Family Dollar
 
Centerville
 
TX
 
—

 
226

 
679

 
—

 
905

 
13

 
9/10/2013
 
2013
Family Dollar
 
Alderson
 
WV
 
—

 
166

 
663

 
—

 
829

 
19

 
7/11/2013
 
2012
Family Dollar
 
Torrington
 
WY
 
—

(14) 
72

 
645

 
—

 
717

 
24

 
5/9/2013
 
2007
Family Dollar
 
Tustin
 
MI
 
—

(14) 
33

 
633

 
—

 
666

 
36

 
12/18/2012
 
2012
Family Dollar
 
Custer
 
SD
 
—

 
32

 
617

 
—

 
649

 
20

 
6/14/2013
 
2006
Family Dollar
 
 International Falls
 
MN
 
—

 
32

 
608

 
—

 
640

 
9

 
9/30/2013
 
1966
Family Dollar
 
Barryton
 
MI
 
—

(14) 
32

 
599

 
—

 
631

 
34

 
12/18/2012
 
2012
Family Dollar
 
Pulaski
 
IL
 
—

(14) 
31

 
588

 
—

 
619

 
33

 
12/31/2012
 
2012
Family Dollar
 
Lombard
 
IL
 
—

 
1,008

 
543

 
—

 
1,551

 
3

 
12/12/2013
 
2013
Family Dollar
 
Rushville
 
NE
 
—

(14) 
125

 
499

 
—

 
624

 
19

 
4/26/2013
 
2007
 Famous Dave's
 
Eden Prairie
 
MN
 
—

(14) 
824

 
549

 
—

 
1,373

 
14

 
7/31/2013
 
1995
Fazoli's
 
Carmel
 
IN
 
—

(14) 
427

 
522

 
—

 
949

 
11

 
7/31/2013
 
1986
Fazoli's
 
Appleton
 
WI
 
—

 
705

 
—

 
—

 
705

 
—

 
7/31/2013
 
N/A
FedEx
 
Tinicum
 
PA
 
—

 
—

 
32,170

 
—

 
32,170

 
818

 
8/15/2013
 
2013
FedEx
 
Lebanon
 
OH
 
—

 
1,492

 
8,452

 
—

 
9,944

 
172

 
8/26/2013
 
2013
FedEx
 
Albany
 
GA
 
—

 
195

 
3,711

 
—

 
3,906

 
57

 
10/11/2013
 
2013
FedEx
 
London
 
KY
 
—

 
350

 
3,151

 
—

 
3,501

 
48

 
10/11/2013
 
2013

F-115

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
FedEx
 
Waterloo
 
IA
 
—

(14) 
152

 
2,882

 
—

 
3,034

 
132

 
3/22/2013
 
2012
FedEx
 
Rapid City
 
SD
 
—

(14) 
305

 
2,741

 
—

 
3,046

 
167

 
12/21/2012
 
2012
FedEx
 
Ottumwa
 
IA
 
—

(14) 
134

 
2,552

 
—

 
2,686

 
182

 
10/30/2012
 
2012
FedEx
 
Independence
 
KS
 
—

(14) 
114

 
2,166

 
—

 
2,280

 
154

 
10/30/2012
 
2012
FedEx
 
Des Moines
 
IA
 
—

(14) 
733

 
1,361

 
—

 
2,094

 
55

 
4/18/2013
 
1986
FedEx
 
Riverton
 
WY
 
—

 
431

 
1,006

 
—

 
1,437

 
10

 
10/23/2013
 
2013
FedEx
 
Homewood
 
AL
 
—

 
522

 
779

 
—

 
1,301

 
22

 
6/27/2013
 
2000
 Flip It Bakery & Deli
 
Washington
 
DC
 
—

(14) 
338

 
84

 
—

 
422

 
2

 
7/31/2013
 
1985
Fresenius
 
Fayetteville
 
NC
 
—

 
178

 
3,379

 
—

 
3,557

 
79

 
6/28/2013
 
1999
Fresenius
 
Clinton
 
NC
 
—

 
139

 
2,647

 
—

 
2,786

 
62

 
6/28/2013
 
2003
Fresenius
 
Foley
 
AL
 
—

 
287

 
2,580

 
—

 
2,867

 
61

 
7/8/2013
 
2009
Fresenius
 
Fayetteville
 
NC
 
—

 
134

 
2,551

 
—

 
2,685

 
60

 
6/28/2013
 
2004
Fresenius
 
Mobile
 
AL
 
—

 
278

 
2,505

 
—

 
2,783

 
59

 
7/8/2013
 
1987
Fresenius
 
Fayetteville
 
NC
 
—

 
420

 
2,379

 
—

 
2,799

 
56

 
6/28/2013
 
1998
Fresenius
 
Lumberton
 
NC
 
—

 
117

 
2,216

 
—

 
2,333

 
52

 
6/28/2013
 
1986
Fresenius
 
 DeFuniak Springs
 
FL
 
—

 
115

 
2,180

 
—

 
2,295

 
51

 
7/8/2013
 
2008
Fresenius
 
Fairhope
 
AL
 
—

 
—

 
2,035

 
—

 
2,035

 
48

 
7/8/2013
 
2006
Fresenius
 
Red Springs
 
NC
 
—

 
101

 
1,913

 
—

 
2,014

 
45

 
6/28/2013
 
2000
Fresenius
 
Fairmont
 
NC
 
—

 
201

 
1,812

 
—

 
2,013

 
43

 
6/28/2013
 
2002
Fresenius
 
Pembroke
 
NC
 
—

 
81

 
1,547

 
—

 
1,628

 
36

 
6/28/2013
 
2009
Fresenius
 
Roseboro
 
NC
 
—

 
74

 
1,404

 
—

 
1,478

 
33

 
6/28/2013
 
2011
Fresenius
 
St. Pauls
 
NC
 
—

 
73

 
1,389

 
—

 
1,462

 
33

 
6/28/2013
 
2008
Furr's
 
Garland
 
TX
 
—

(14) 
1,529

 
3,715

 
—

 
5,244

 
107

 
6/27/2013
 
2008
Golden Corral
 
Surprise
 
AZ
 
—

(14) 
1,258

 
4,068

 
—

 
5,326

 
117

 
6/27/2013
 
2007
Golden Corral
 
Harlingen
 
TX
 
—

 
832

 
3,037

 
—

 
3,869

 
87

 
6/27/2013
 
1990
Golden Corral
 
Texarkana
 
TX
 
—

 
758

 
3,031

 
—

 
3,789

 
67

 
7/31/2013
 
2001
Golden Corral
 
Gilbert
 
AZ
 
—

(14) 
871

 
2,910

 
—

 
3,781

 
83

 
6/27/2013
 
2006
Golden Corral
 
Jacksonville
 
FL
 
—

 
1,721

 
2,629

 
—

 
4,350

 
75

 
6/27/2013
 
1999
Golden Corral
 
Houston
 
TX
 
—

 
1,147

 
2,447

 
—

 
3,594

 
70

 
6/27/2013
 
1995
Golden Corral
 
Stockbridge
 
GA
 
—

 
422

 
2,391

 
—

 
2,813

 
53

 
7/31/2013
 
1987
Golden Corral
 
Brownsville
 
TX
 
—

 
604

 
2,302

 
—

 
2,906

 
66

 
6/27/2013
 
1990
Golden Corral
 
Norman
 
OK
 
—

 
345

 
2,107

 
—

 
2,452

 
60

 
6/27/2013
 
1994
Golden Corral
 
Zanesville
 
OH
 
—

(14) 
487

 
2,030

 
—

 
2,517

 
58

 
6/27/2013
 
2002
Golden Corral
 
Goodyear
 
AZ
 
—

(14) 
686

 
1,939

 
—

 
2,625

 
56

 
6/27/2013
 
2006
Golden Corral
 
Baytown
 
TX
 
—

(14) 
596

 
1,788

 
—

 
2,384

 
39

 
7/31/2013
 
1995
Golden Corral
 
College Station
 
TX
 
—

 
1,265

 
1,718

 
—

 
2,983

 
49

 
6/27/2013
 
1990
Golden Corral
 
Midwest City
 
OK
 
—

 
1,175

 
1,708

 
—

 
2,883

 
49

 
6/27/2013
 
1991
Golden Corral
 
Wichita
 
KS
 
—

(14) 
560

 
1,306

 
—

 
1,866

 
29

 
7/31/2013
 
2000
Golden Corral
 
Jacksonville
 
FL
 
—

 
1,033

 
1,084

 
—

 
2,117

 
31

 
6/27/2013
 
1997
Golden Corral
 
Palatka
 
FL
 
—

(14) 
853

 
1,048

 
—

 
1,901

 
30

 
6/27/2013
 
1997
Golden Corral
 
Emporia
 
KS
 
—

(14) 
403

 
941

 
—

 
1,344

 
21

 
7/31/2013
 
1997
Golden Corral
 
Roswell
 
NM
 
—

 
203

 
600

 
—

 
803

 
17

 
6/27/2013
 
2000
Golden Corral
 
Rock Springs
 
WY
 
—

(14) 
354

 
90

 
—

 
444

 
3

 
6/27/2013
 
1986

F-116

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Grandy's
 
Abilene
 
TX
 
—

 
803

 
—

 
—

 
803

 
—

 
6/27/2013
 
N/A
Grandy's
 
Arlington
 
TX
 
—

 
734

 
—

 
—

 
734

 
—

 
6/27/2013
 
N/A
Grandy's
 
Carrollton
 
TX
 
—

 
773

 
—

 
—

 
773

 
—

 
6/27/2013
 
N/A
Grandy's
 
Carrollton
 
TX
 
—

 
847

 
—

 
—

 
847

 
—

 
6/27/2013
 
N/A
Grandy's
 
Fort Worth
 
TX
 
—

 
777

 
—

 
—

 
777

 
—

 
6/27/2013
 
N/A
Grandy's
 
Fort Worth
 
TX
 
—

 
811

 
—

 
—

 
811

 
—

 
6/27/2013
 
N/A
Grandy's
 
Garland
 
TX
 
—

 
623

 
—

 
—

 
623

 
—

 
6/27/2013
 
N/A
Grandy's
 
Garland
 
TX
 
—

 
859

 
—

 
—

 
859

 
—

 
6/27/2013
 
N/A
Grandy's
 
Grapevine
 
TX
 
—

 
618

 
—

 
—

 
618

 
—

 
6/27/2013
 
1988
Grandy's
 
Irving
 
TX
 
—

 
871

 
—

 
—

 
871

 
—

 
6/27/2013
 
N/A
Grandy's
 
Lancaster
 
TX
 
—

 
780

 
—

 
—

 
780

 
—

 
6/27/2013
 
N/A
Grandy's
 
Lubbock
 
TX
 
—

 
694

 
—

 
—

 
694

 
—

 
6/27/2013
 
1979
Grandy's
 
Mesquite
 
TX
 
—

 
871

 
—

 
—

 
871

 
—

 
6/27/2013
 
N/A
Grandy's
 
Plano
 
TX
 
—

 
871

 
—

 
—

 
871

 
—

 
6/27/2013
 
N/A
Grandy's
 
Dallas
 
TX
 
—

 
725

 
—

 
—

 
725

 
—

 
7/31/2013
 
N/A
Grandy's
 
Dallas
 
TX
 
—

 
357

 
—

 
—

 
357

 
—

 
7/31/2013
 
N/A
Grandy's
 
Greenville
 
TX
 
—

 
847

 
—

 
—

 
847

 
—

 
7/31/2013
 
N/A
Great Clips
 
Lombard
 
IL
 
—

 
84

 
100

 
—

 
184

 
3

 
6/27/2013
 
1973
Hardee's
 
Jacksonville
 
FL
 
—

 
875

 
583

 
—

 
1,458

 
13

 
7/31/2013
 
1993
Hardee's
 
Williston
 
FL
 
—

(14) 
395

 
553

 
—

 
948

 
15

 
6/27/2013
 
1992
Hardee's
 
Canton
 
GA
 
—

 
488

 
539

 
—

 
1,027

 
15

 
6/27/2013
 
1983
Hardee's
 
Bremen
 
GA
 
—

(14) 
129

 
518

 
—

 
647

 
11

 
7/31/2013
 
1980
Hardee's
 
Springfield
 
TN
 
—

(14) 
343

 
515

 
—

 
858

 
11

 
7/31/2013
 
1990
Hardee's
 
Akron
 
OH
 
—

(14) 
207

 
483

 
—

 
690

 
11

 
7/31/2013
 
1990
Hardee's
 
Mount Vernon
 
IA
 
—

 
320

 
480

 
—

 
800

 
13

 
6/27/2013
 
1987
Hardee's
 
Belleville
 
IL
 
—

 
269

 
467

 
—

 
736

 
13

 
6/27/2013
 
1987
Hardee's
 
Seville
 
OH
 
—

(14) 
151

 
454

 
—

 
605

 
10

 
7/31/2013
 
1989
Hardee's
 
Pace
 
FL
 
—

(14) 
419

 
435

 
—

 
854

 
12

 
6/27/2013
 
1991
Hardee's
 
Morristown
 
TN
 
—

(14) 
353

 
431

 
—

 
784

 
9

 
7/31/2013
 
1991
Hardee's
 
Erwin
 
TN
 
—

(14) 
346

 
406

 
—

 
752

 
11

 
6/27/2013
 
1982
Hardee's
 
Jefferson
 
OH
 
—

(14) 
242

 
363

 
—

 
605

 
8

 
7/31/2013
 
1989
Hardee's
 
Sparta
 
NC
 
—

(14) 
372

 
346

 
—

 
718

 
10

 
6/27/2013
 
1983
Hardee's
 
Minerva
 
OH
 
—

(14) 
214

 
321

 
—

 
535

 
7

 
7/31/2013
 
1990
Hardee's
 
Beaver
 
WV
 
—

 
217

 
318

 
—

 
535

 
9

 
6/27/2013
 
1983
 Harley Davidson
 
Round Rock
 
TX
 
—

(14) 
1,688

 
9,563

 
—

 
11,251

 
237

 
7/31/2013
 
2008
 Harvey's Grill & Bar
 
Saginaw
 
MI
 
—

(14) 
230

 
647

 
—

 
877

 
19

 
6/27/2013
 
1997
 Hayden's Grill & Bar
 
Canton
 
MI
 
—

(14) 
160

 
693

 
—

 
853

 
20

 
6/27/2013
 
1995
 Hooley House Sports Pub & Grille
 
Brooklyn
 
OH
 
—

(14) 
291

 
321

 
—

 
612

 
9

 
6/27/2013
 
2000
IHOP
 
Bossier City
 
LA
 
—

(14) 
541

 
1,342

 
—

 
1,883

 
38

 
6/27/2013
 
1998
IHOP
 
Baytown
 
TX
 
—

(14) 
698

 
1,297

 
—

 
1,995

 
29

 
7/31/2013
 
1998
IHOP
 
Auburn
 
AL
 
—

(14) 
1,111

 
933

 
—

 
2,044

 
27

 
6/27/2013
 
1998
IHOP
 
Warren
 
MI
 
—

(14) 
605

 
830

 
—

 
1,435

 
24

 
6/27/2013
 
1996
IHOP
 
Corpus Christi
 
TX
 
—

 
1,176

 
—

 
—

 
1,176

 
—

 
7/31/2013
 
N/A

F-117

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Indi's Fast Food
 
Louisville
 
KY
 
—

 
292

 
157

 
—

 
449

 
3

 
7/31/2013
 
1972
 Iron Chef Super Buffet
 
Kissimmee
 
FL
 
—

(14) 
297

 
127

 
—

 
424

 
3

 
7/31/2013
 
1989
 Italian Villa, The
 
Grand Island
 
NY
 
—

(14) 
38

 
101

 
—

 
139

 
3

 
6/27/2013
 
1979
 Jack in the Box
 
Cleburne
 
TX
 
—

(14) 
291

 
1,647

 
—

 
1,938

 
36

 
7/31/2013
 
2000
 Jack in the Box
 
Walker
 
LA
 
—

(14) 
543

 
1,196

 
—

 
1,739

 
33

 
6/27/2013
 
2001
 Jack in the Box
 
Sacramento
 
CA
 
—

 
476

 
1,110

 
—

 
1,586

 
24

 
7/31/2013
 
1991
 Jack in the Box
 
Texas City
 
TX
 
—

 
454

 
844

 
—

 
1,298

 
23

 
6/27/2013
 
1991
 Jack in the Box
 
Missouri City
 
TX
 
—

(14) 
451

 
837

 
—

 
1,288

 
18

 
7/31/2013
 
1991
 Johnny Carino's
 
Houston
 
TX
 
—

(14) 
1,328

 
2,656

 
—

 
3,984

 
76

 
6/27/2013
 
2002
 Johnny Carino's
 
Rogers
 
AR
 
—

(14) 
997

 
2,540

 
—

 
3,537

 
73

 
6/27/2013
 
2001
 Johnny Carino's
 
Midland
 
TX
 
—

(14) 
998

 
2,329

 
—

 
3,327

 
58

 
7/31/2013
 
2000
 Johnny Carino's
 
Grand Prairie
 
TX
 
—

(14) 
997

 
2,327

 
—

 
3,324

 
58

 
7/31/2013
 
2001
 Johnny Carino's
 
Amarillo
 
TX
 
—

(14) 
993

 
2,317

 
—

 
3,310

 
57

 
7/31/2013
 
2001
 Johnny Carino's
 
San Angelo
 
TX
 
—

(14) 
769

 
2,306

 
—

 
3,075

 
57

 
7/31/2013
 
2005
 Johnny Carino's
 
Muncie
 
IN
 
—

 
540

 
2,160

 
—

 
2,700

 
41

 
8/30/2013
 
2003
 Johnny Carino's
 
Columbus
 
IN
 
—

 
809

 
1,888

 
—

 
2,697

 
36

 
8/30/2013
 
2004
 Kentucky Fried Chicken
 
Matteson
 
IL
 
—

(14) 
399

 
2,259

 
—

 
2,658

 
50

 
7/31/2013
 
1973
 Kentucky Fried Chicken
 
Decatur
 
IL
 
—

(14) 
276

 
1,619

 
—

 
1,895

 
45

 
6/27/2013
 
2001
 Kentucky Fried Chicken
 
Homewood
 
IL
 
—

(14) 
660

 
1,541

 
—

 
2,201

 
34

 
7/31/2013
 
1992
 Kentucky Fried Chicken
 
Bloomington
 
IL
 
—

(14) 
576

 
1,466

 
—

 
2,042

 
41

 
6/27/2013
 
2004
 Kentucky Fried Chicken
 
Greenwood
 
IN
 
—

(14) 
339

 
1,405

 
—

 
1,744

 
39

 
6/27/2013
 
1976
 Kentucky Fried Chicken
 
Hazel Crest
 
IL
 
—

(14) 
153

 
1,376

 
—

 
1,529

 
30

 
7/31/2013
 
1982
 Kentucky Fried Chicken
 
Franklin
 
IN
 
—

(14) 
205

 
1,375

 
—

 
1,580

 
38

 
6/27/2013
 
1976
 Kentucky Fried Chicken
 
Lebanon
 
IN
 
—

(14) 
337

 
1,348

 
—

 
1,685

 
30

 
7/31/2013
 
1983
 Kentucky Fried Chicken
 
Springfield
 
IL
 
—

(14) 
212

 
1,203

 
—

 
1,415

 
26

 
7/31/2013
 
1987
 Kentucky Fried Chicken
 
Rockford
 
IL
 
—

(14) 
201

 
1,142

 
—

 
1,343

 
25

 
7/31/2013
 
1995
 Kentucky Fried Chicken
 
New Boston
 
TX
 
—

(14) 
125

 
1,127

 
—

 
1,252

 
25

 
7/31/2013
 
1995
 Kentucky Fried Chicken
 
Granite City
 
IL
 
—

(14) 
102

 
1,083

 
—

 
1,185

 
30

 
6/27/2013
 
1987
 Kentucky Fried Chicken
 
Crawfordsville
 
IN
 
—

(14) 
159

 
1,068

 
—

 
1,227

 
30

 
6/27/2013
 
1979
 Kentucky Fried Chicken
 
Springfield
 
IL
 
—

(14) 
267

 
1,068

 
—

 
1,335

 
23

 
7/31/2013
 
1987
 Kentucky Fried Chicken
 
Oak Forest
 
IL
 
—

(14) 
185

 
1,047

 
—

 
1,232

 
23

 
7/31/2013
 
1955
 Kentucky Fried Chicken
 
Green Bay
 
WI
 
—

(14) 
208

 
1,022

 
—

 
1,230

 
28

 
6/27/2013
 
1986
 Kentucky Fried Chicken
 
Mattoon
 
IL
 
—

(14) 
113

 
1,019

 
—

 
1,132

 
22

 
7/31/2013
 
1990
 Kentucky Fried Chicken
 
Milwaukee
 
WI
 
—

(14) 
197

 
975

 
—

 
1,172

 
27

 
6/27/2013
 
1991
 Kentucky Fried Chicken
 
Elmhurst
 
IL
 
—

(14) 
242

 
969

 
—

 
1,211

 
21

 
7/31/2013
 
1990
 Kentucky Fried Chicken
 
Westchester
 
IL
 
—

(14) 
238

 
952

 
—

 
1,190

 
21

 
7/31/2013
 
1973
 Kentucky Fried Chicken
 
Mount Pleasant
 
TX
 
—

(14) 
106

 
952

 
—

 
1,058

 
21

 
7/31/2013
 
1992
 Kentucky Fried Chicken
 
Dolton
 
IL
 
—

(14) 
167

 
946

 
—

 
1,113

 
21

 
7/31/2013
 
1975
 Kentucky Fried Chicken
 
Tipton
 
IN
 
—

(14) 
104

 
936

 
—

 
1,040

 
21

 
7/31/2013
 
1998
 Kentucky Fried Chicken
 
Crawfordsville
 
IN
 
—

(14) 
234

 
934

 
—

 
1,168

 
21

 
7/31/2013
 
1991
 Kentucky Fried Chicken
 
Milwaukee
 
WI
 
—

(14) 
138

 
924

 
—

 
1,062

 
26

 
6/27/2013
 
1992
 Kentucky Fried Chicken
 
Germantown
 
WI
 
—

(14) 
368

 
913

 
—

 
1,281

 
25

 
6/27/2013
 
1992
 Kentucky Fried Chicken
 
Lafayette
 
IN
 
—

(14) 
304

 
912

 
—

 
1,216

 
20

 
7/31/2013
 
1990

F-118

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Kentucky Fried Chicken
 
Frankfort
 
IN
 
—

(14) 
99

 
893

 
—

 
992

 
20

 
7/31/2013
 
1985
 Kentucky Fried Chicken
 
Hartford City
 
IN
 
—

(14) 
99

 
889

 
—

 
988

 
20

 
7/31/2013
 
1978
 Kentucky Fried Chicken
 
Kokomo
 
IN
 
—

(14) 
199

 
798

 
—

 
997

 
18

 
7/31/2013
 
1993
 Kentucky Fried Chicken
 
Milwaukee
 
WI
 
—

(14) 
281

 
795

 
—

 
1,076

 
22

 
6/27/2013
 
1992
 Kentucky Fried Chicken
 
Milwaukee
 
WI
 
—

(14) 
396

 
773

 
—

 
1,169

 
21

 
6/27/2013
 
1991
 Kentucky Fried Chicken
 
Shreveport
 
LA
 
—

(14) 
616

 
753

 
—

 
1,369

 
17

 
7/31/2013
 
1995
 Kentucky Fried Chicken
 
Milwaukee
 
WI
 
—

(14) 
89

 
750

 
—

 
839

 
21

 
6/27/2013
 
1989
 Kentucky Fried Chicken
 
West Bend
 
WI
 
—

(14) 
185

 
705

 
—

 
890

 
20

 
6/27/2013
 
1972
 Kentucky Fried Chicken
 
 South Milwaukee
 
WI
 
—

(14) 
197

 
695

 
—

 
892

 
19

 
6/27/2013
 
1993
 Kentucky Fried Chicken
 
Allison Park
 
PA
 
—

(14) 
246

 
683

 
—

 
929

 
19

 
6/27/2013
 
1978
 Kentucky Fried Chicken
 
Warren
 
OH
 
—

(14) 
426

 
640

 
—

 
1,066

 
14

 
7/31/2013
 
1987
 Kentucky Fried Chicken
 
Minden
 
LA
 
—

(14) 
274

 
639

 
—

 
913

 
14

 
7/31/2013
 
1995
 Kentucky Fried Chicken
 
Texarkana
 
AR
 
—

(14) 
111

 
630

 
—

 
741

 
14

 
7/31/2013
 
1980
 Kentucky Fried Chicken
 
Wauwatosa
 
WI
 
—

(14) 
135

 
615

 
—

 
750

 
17

 
6/27/2013
 
1992
 Kentucky Fried Chicken
 
Greenville
 
TX
 
—

 
119

 
585

 
—

 
704

 
16

 
6/27/2013
 
1988
 Kentucky Fried Chicken
 
Green Bay
 
WI
 
—

(14) 
470

 
574

 
—

 
1,044

 
13

 
7/31/2013
 
1986
 Kentucky Fried Chicken
 
Noblesville
 
IN
 
—

(14) 
363

 
545

 
—

 
908

 
12

 
7/31/2013
 
2005
 Kentucky Fried Chicken
 
Shreveport
 
LA
 
—

(14) 
352

 
528

 
—

 
880

 
12

 
7/31/2013
 
1998
 Kentucky Fried Chicken
 
Shreveport
 
LA
 
—

(14) 
427

 
522

 
—

 
949

 
11

 
7/31/2013
 
1997
 Kentucky Fried Chicken
 
Shreveport
 
LA
 
—

(14) 
343

 
514

 
—

 
857

 
11

 
7/31/2013
 
1995
 Kentucky Fried Chicken
 
New Kensington
 
PA
 
—

(14) 
324

 
487

 
—

 
811

 
11

 
7/31/2013
 
1967
 Kentucky Fried Chicken
 
Burnsville
 
MN
 
—

 
267

 
267

 
—

 
534

 
6

 
7/31/2013
 
1988
 Kentucky Fried Chicken / A&W
 
Charleston
 
IL
 
—

(14) 
282

 
1,514

 
—

 
1,796

 
42

 
6/27/2013
 
2003
 Kentucky Fried Chicken / Taco Bell
 
Canonsburg
 
PA
 
—

(14) 
176

 
1,586

 
—

 
1,762

 
35

 
7/31/2013
 
1996
 Kentucky Fried Chicken / Taco Bell
 
Dunkirk
 
NY
 
—

(14) 
800

 
978

 
—

 
1,778

 
21

 
7/31/2013
 
2000
 Kentucky Fried Chicken / Taco Bell
 
Geneva
 
NY
 
—

(14) 
569

 
695

 
—

 
1,264

 
15

 
7/31/2013
 
1999
 Kettle Restaurant
 
College Station
 
TX
 
—

 
225

 
249

 
—

 
474

 
7

 
6/27/2013
 
1981
 Kettle Restaurant
 
San Antonio
 
TX
 
—

 
168

 
206

 
—

 
374

 
5

 
7/31/2013
 
1965
Krystal
 
Memphis
 
TN
 
—

(14) 
257

 
1,029

 
—

 
1,286

 
48

 
4/23/2013
 
1975
Krystal
 
Huntsville
 
AL
 
—

(14) 
348

 
811

 
—

 
1,159

 
38

 
4/23/2013
 
1960
Krystal
 
Memphis
 
TN
 
—

(14) 
181

 
723

 
—

 
904

 
34

 
4/23/2013
 
1972
Krystal
 
Huntsville
 
AL
 
—

 
305

 
712

 
—

 
1,017

 
29

 
6/10/2013
 
1985
Krystal
 
Lawrenceburg
 
TN
 
—

(14) 
304

 
709

 
—

 
1,013

 
33

 
4/23/2013
 
1980
Krystal
 
Murfreesboro
 
TN
 
—

(14) 
465

 
698

 
—

 
1,163

 
33

 
4/23/2013
 
2008
Krystal
 
Valley
 
AL
 
—

(14) 
297

 
694

 
—

 
991

 
33

 
4/23/2013
 
1979
Krystal
 
Chattanooga
 
TN
 
—

(14) 
440

 
659

 
—

 
1,099

 
31

 
4/23/2013
 
1983
Krystal
 
Huntsville
 
AL
 
—

(14) 
352

 
654

 
—

 
1,006

 
31

 
4/23/2013
 
1971
Krystal
 
Corinth
 
MS
 
—

(14) 
279

 
652

 
—

 
931

 
31

 
4/23/2013
 
2007
Krystal
 
Montgomery
 
AL
 
—

(14) 
502

 
613

 
—

 
1,115

 
29

 
4/23/2013
 
1962
Krystal
 
Montgomery
 
AL
 
—

(14) 
303

 
562

 
—

 
865

 
26

 
4/23/2013
 
1962
Krystal
 
Vestavia Hills
 
AL
 
—

(14) 
342

 
513

 
—

 
855

 
24

 
4/23/2013
 
1979

F-119

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Kum & Go
 
Gillette
 
WY
 
—

 
878

 
2,048

 
—

 
2,926

 
58

 
6/28/2013
 
2013
 Lee's Famous Recipe Chicken
 
Saint Louis
 
MO
 
—

 
107

 
874

 
—

 
981

 
24

 
6/27/2013
 
1984
 Lee's Famous Recipe Chicken
 
Saint Ann
 
MO
 
—

 
187

 
571

 
—

 
758

 
16

 
6/27/2013
 
1984
 Lee's Famous Recipe Chicken
 
Florissant
 
MO
 
—

 
306

 
560

 
—

 
866

 
16

 
6/27/2013
 
1984
 Logan's Roadhouse
 
Mt. Juliet
 
TN
 
—

(14) 
1,366

 
2,538

 
—

 
3,904

 
63

 
7/31/2013
 
2006
 Logan's Roadhouse
 
Owasso
 
OK
 
—

(14) 
1,449

 
2,173

 
—

 
3,622

 
54

 
7/31/2013
 
2006
 Long John Silver's
 
Marion
 
IL
 
—

(14) 
305

 
1,059

 
—

 
1,364

 
29

 
6/27/2013
 
1983
 Long John Silver's
 
Litchfield
 
IL
 
—

(14) 
194

 
996

 
—

 
1,190

 
28

 
6/27/2013
 
1986
 Long John Silver's
 
West Frankfort
 
IL
 
—

(14) 
244

 
996

 
—

 
1,240

 
28

 
6/27/2013
 
1976
 Long John Silver's
 
Collinsville
 
IL
 
—

(14) 
220

 
940

 
—

 
1,160

 
26

 
6/27/2013
 
2006
 Long John Silver's
 
Merced
 
CA
 
—

(14) 
174

 
695

 
—

 
869

 
15

 
7/31/2013
 
1982
 Long John Silver's
 
Asheville
 
NC
 
—

(14) 
586

 
693

 
—

 
1,279

 
19

 
6/27/2013
 
1992
 Long John Silver's
 
Albuquerque
 
NM
 
—

 
227

 
680

 
—

 
907

 
15

 
7/31/2013
 
1975
 Long John Silver's
 
Penn Hills
 
PA
 
—

 
438

 
656

 
—

 
1,094

 
14

 
7/31/2013
 
1993
 Long John Silver's
 
Hays
 
KS
 
—

(14) 
160

 
624

 
—

 
784

 
17

 
6/27/2013
 
1994
 Long John Silver's
 
Las Cruces
 
NM
 
—

(14) 
242

 
565

 
—

 
807

 
12

 
7/31/2013
 
1975
 Long John Silver's
 
Arlington
 
TX
 
—

 
365

 
537

 
—

 
902

 
15

 
6/27/2013
 
1993
 Long John Silver's
 
Garden City
 
KS
 
—

(14) 
120

 
530

 
—

 
650

 
15

 
6/27/2013
 
1978
 Long John Silver's
 
Fairview Heights
 
IL
 
—

(14) 
258

 
525

 
—

 
783

 
15

 
6/27/2013
 
1976
 Long John Silver's
 
Mount Carmel
 
IL
 
—

(14) 
105

 
484

 
—

 
589

 
13

 
6/27/2013
 
1977
 Long John Silver's
 
Vandalia
 
IL
 
—

(14) 
101

 
484

 
—

 
585

 
13

 
6/27/2013
 
1976
 Long John Silver's
 
Jacksonville
 
IL
 
—

(14) 
171

 
431

 
—

 
602

 
12

 
6/27/2013
 
1978
 Long John Silver's
 
Cleburne
 
TX
 
—

 
205

 
380

 
—

 
585

 
8

 
7/31/2013
 
1986
 Long John Silver's
 
Clarksville
 
TN
 
—

 
339

 
339

 
—

 
678

 
7

 
7/31/2013
 
1993
 Long John Silver's
 
Jackson
 
TN
 
—

(14) 
264

 
323

 
—

 
587

 
7

 
7/31/2013
 
1995
 Long John Silver's
 
Wood River
 
IL
 
—

(14) 
251

 
314

 
—

 
565

 
9

 
6/27/2013
 
1975
 Long John Silver's
 
Fairborn
 
OH
 
—

(14) 
103

 
300

 
—

 
403

 
8

 
6/27/2013
 
1976
 Long John Silver's
 
Englewood
 
OH
 
—

(14) 
547

 
—

 
—

 
547

 
—

 
6/27/2013
 
1974
 Long John Silver's / A&W
 
Kansas City
 
MO
 
—

 
389

 
722

 
—

 
1,111

 
16

 
7/31/2013
 
1995
 Long John Silver's / A&W
 
Houston
 
TX
 
—

 
480

 
495

 
—

 
975

 
14

 
6/27/2013
 
1993
 Long John Silver's / A&W
 
Austin
 
TX
 
—

(14) 
459

 
477

 
—

 
936

 
13

 
6/27/2013
 
1993
 Long John Silver's / A&W
 
Murfreesboro
 
TN
 
—

 
219

 
219

 
—

 
438

 
5

 
7/31/2013
 
1985
 Long John Silver's / KFC
 
Green Bay
 
WI
 
—

(14) 
748

 
563

 
—

 
1,311

 
16

 
6/27/2013
 
1978
 Los Tios Mexican Restaurant
 
Dalton
 
OH
 
—

(14) 
18

 
30

 
—

 
48

 
1

 
6/27/2013
 
1990
Lowe's
 
Windham
 
ME
 
—

(14) 
12,640

 
—

 
—

 
12,640

 
—

 
6/3/2013
 
2006
Mattress Firm
 
Evansville
 
IN
 
—

(14) 
117

 
2,227

 
—

 
2,344

 
115

 
2/11/2013
 
2012
Mattress Firm
 
Spokane
 
WA
 
—

(14) 
409

 
1,685

 
—

 
2,094

 
72

 
4/4/2013
 
2013
Mattress Firm
 
Spokane
 
WA
 
—

(14) 
511

 
1,582

 
—

 
2,093

 
68

 
3/28/2013
 
2013

F-120

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Mattress Firm
 
Mishawaka
 
IN
 
—

 
375

 
1,500

 
—

 
1,875

 
35

 
7/30/2013
 
2013
Mattress Firm
 
Tallahassee
 
FL
 
—

(14) 
924

 
1,386

 
—

 
2,310

 
52

 
5/14/2013
 
2013
Mattress Firm
 
Bountiful
 
UT
 
—

(14) 
736

 
1,367

 
—

 
2,103

 
77

 
12/31/2012
 
2012
Mattress Firm
 
Destin
 
FL
 
—

 
693

 
1,287

 
—

 
1,980

 
42

 
6/5/2013
 
2013
Mattress Firm
 
Rogers
 
AR
 
—

(14) 
321

 
1,284

 
—

 
1,605

 
66

 
2/6/2013
 
2012
Mattress Firm
 
Wilmington
 
NC
 
—

 
412

 
1,257

 
—

 
1,669

 
53

 
3/29/2013
 
2013
Mattress Firm
 
Lafayette
 
LA
 
—

(14) 
—

 
1,251

 
—

 
1,251

 
47

 
5/2/2013
 
2013
Mattress Firm
 
Daphne
 
AL
 
—

 
528

 
1,233

 
—

 
1,761

 
17

 
10/1/2013
 
2013
Mattress Firm
 
Dothan
 
AL
 
—

(14) 
406

 
1,217

 
—

 
1,623

 
46

 
5/14/2013
 
2013
Mattress Firm
 
Knoxville
 
TN
 
—

(14) 
586

 
1,088

 
—

 
1,674

 
46

 
3/19/2013
 
2012
Mattress Firm
 
Greenville
 
NC
 
—

(14) 
1,085

 
1,085

 
—

 
2,170

 
66

 
12/12/2012
 
2012
Mattress Firm
 
Bowling Green
 
KY
 
—

(14) 
648

 
973

 
—

 
1,621

 
36

 
4/25/2013
 
2012
McDonald's
 
Scotland Neck
 
NC
 
—

(14) 
320

 
—

 
—

 
320

 
—

 
6/27/2013
 
N/A
Mezcal Mexican Restaurant
 
Grafton
 
OH
 
—

 
64

 
191

 
—

 
255

 
5

 
7/31/2013
 
1990
Monro Muffler
 
Lewiston
 
ME
 
—

(14) 
279

 
1,115

 
—

 
1,394

 
43

 
5/10/2013
 
1976
Monterey's Tex Mex
 
Tulsa
 
OK
 
—

 
135

 
406

 
—

 
541

 
10

 
7/31/2013
 
2001
Native New Yorker
 
Glendale
 
AZ
 
—

(14) 
254

 
420

 
—

 
674

 
12

 
6/27/2013
 
1998
O'Charley's
 
Dalton
 
GA
 
—

(14) 
406

 
1,817

 
—

 
2,223

 
52

 
6/27/2013
 
1993
O'Charley's
 
Tucker
 
GA
 
—

(14) 
1,037

 
866

 
—

 
1,903

 
25

 
6/27/2013
 
1993
Parking Lot
 
Kingston
 
PA
 
—

(14) 
29

 
—

 
—

 
29

 
—

 
6/27/2013
 
N/A
Pizza Hut
 
Chester
 
VA
 
—

(14) 
473

 
1,104

 
—

 
1,577

 
24

 
7/31/2013
 
1983
Pizza Hut
 
Ashland
 
VA
 
—

(14) 
589

 
1,093

 
—

 
1,682

 
24

 
7/31/2013
 
1989
Pizza Hut
 
Amarillo
 
TX
 
—

(14) 
339

 
1,016

 
—

 
1,355

 
22

 
7/31/2013
 
1976
Pizza Hut
 
Amarillo
 
TX
 
—

(14) 
254

 
1,015

 
—

 
1,269

 
22

 
7/31/2013
 
1980
Pizza Hut
 
Fort Stockton
 
TX
 
—

(14) 
252

 
1,007

 
—

 
1,259

 
22

 
7/31/2013
 
2008
Pizza Hut
 
Christiansburg
 
VA
 
—

(14) 
494

 
918

 
—

 
1,412

 
20

 
7/31/2013
 
1982
Pizza Hut
 
Odessa
 
TX
 
—

(14) 
588

 
882

 
—

 
1,470

 
19

 
7/31/2013
 
1972
Pizza Hut
 
Hopewell
 
VA
 
—

(14) 
707

 
864

 
—

 
1,571

 
19

 
7/31/2013
 
1985
Pizza Hut
 
Clifton Forge
 
VA
 
—

(14) 
287

 
861

 
—

 
1,148

 
19

 
7/31/2013
 
1978
Pizza Hut
 
Odessa
 
TX
 
—

(14) 
456

 
847

 
—

 
1,303

 
19

 
7/31/2013
 
1976
Pizza Hut
 
Richmond
 
VA
 
—

(14) 
666

 
814

 
—

 
1,480

 
18

 
7/31/2013
 
1978
Pizza Hut
 
Odessa
 
TX
 
—

(14) 
627

 
766

 
—

 
1,393

 
17

 
7/31/2013
 
1979
Pizza Hut
 
JACKSON
 
GA
 
—

(14) 
673

 
735

 
—

 
1,408

 
20

 
6/27/2013
 
1987
Pizza Hut
 
Salisbury
 
MD
 
—

(14) 
245

 
734

 
—

 
979

 
16

 
7/31/2013
 
1983
Pizza Hut
 
Delaware
 
OH
 
—

(14) 
270

 
721

 
—

 
991

 
20

 
6/27/2013
 
1975
Pizza Hut
 
Pecos
 
TX
 
—

(14) 
387

 
719

 
—

 
1,106

 
16

 
7/31/2013
 
1974
Pizza Hut
 
Petersburg
 
VA
 
—

(14) 
378

 
701

 
—

 
1,079

 
15

 
7/31/2013
 
1979
Pizza Hut
 
Odessa
 
TX
 
—

(14) 
457

 
685

 
—

 
1,142

 
15

 
7/31/2013
 
1976
Pizza Hut
 
Monahans
 
TX
 
—

(14) 
361

 
671

 
—

 
1,032

 
15

 
7/31/2013
 
1979
Pizza Hut
 
Bedford
 
VA
 
—

(14) 
548

 
670

 
—

 
1,218

 
15

 
7/31/2013
 
1977
Pizza Hut
 
San Angelo
 
TX
 
—

(14) 
214

 
641

 
—

 
855

 
14

 
7/31/2013
 
1977
Pizza Hut
 
San Angelo
 
TX
 
—

(14) 
268

 
624

 
—

 
892

 
14

 
7/31/2013
 
1980
Pizza Hut
 
Midland
 
TX
 
—

(14) 
506

 
619

 
—

 
1,125

 
14

 
7/31/2013
 
1978
Pizza Hut
 
Downers Grove
 
IL
 
—

 
504

 
616

 
—

 
1,120

 
14

 
7/31/2013
 
1985
Pizza Hut
 
Detroit
 
MI
 
—

 
501

 
612

 
—

 
1,113

 
13

 
7/31/2013
 
1984
Pizza Hut
 
Newport News
 
VA
 
—

(14) 
394

 
591

 
—

 
985

 
13

 
7/31/2013
 
1969
Pizza Hut
 
Newport News
 
VA
 
—

(14) 
394

 
591

 
—

 
985

 
13

 
7/31/2013
 
1970
Pizza Hut
 
Columbia
 
SC
 
—

(14) 
881

 
588

 
—

 
1,469

 
13

 
7/31/2013
 
1977
Pizza Hut
 
Odessa
 
TX
 
—

(14) 
572

 
572

 
—

 
1,144

 
13

 
7/31/2013
 
1976
Pizza Hut
 
Tyler
 
TX
 
—

 
238

 
555

 
—

 
793

 
15

 
6/27/2013
 
1981

F-121

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Pizza Hut
 
San Angelo
 
TX
 
—

(14) 
237

 
552

 
—

 
789

 
12

 
7/31/2013
 
1975
Pizza Hut
 
Dearborn
 
MI
 
—

 
284

 
528

 
—

 
812

 
12

 
7/31/2013
 
1977
Pizza Hut
 
Aurora
 
IL
 
—

(14) 
281

 
522

 
—

 
803

 
11

 
7/31/2013
 
1986
Pizza Hut
 
Cheraw
 
SC
 
—

(14) 
415

 
507

 
—

 
922

 
11

 
7/31/2013
 
1984
Pizza Hut
 
Midland
 
TX
 
—

(14) 
414

 
506

 
—

 
920

 
11

 
7/31/2013
 
1975
Pizza Hut
 
Louisville
 
KY
 
—

(14) 
539

 
499

 
—

 
1,038

 
14

 
6/27/2013
 
1975
Pizza Hut
 
Batesburg
 
SC
 
—

(14) 
261

 
484

 
—

 
745

 
11

 
7/31/2013
 
1987
Pizza Hut
 
Greensboro
 
GA
 
—

(14) 
569

 
465

 
—

 
1,034

 
10

 
7/31/2013
 
1989
Pizza Hut
 
Crystal City
 
TX
 
—

(14) 
148

 
453

 
—

 
601

 
13

 
6/27/2013
 
1981
Pizza Hut
 
Abilene
 
TX
 
—

(14) 
549

 
449

 
—

 
998

 
10

 
7/31/2013
 
1980
Pizza Hut
 
Sweetwater
 
TX
 
—

 
77

 
435

 
—

 
512

 
10

 
7/31/2013
 
1975
Pizza Hut
 
Detroit
 
MI
 
—

 
105

 
421

 
—

 
526

 
9

 
7/31/2013
 
1986
Pizza Hut
 
Pageland
 
SC
 
—

(14) 
344

 
420

 
—

 
764

 
9

 
7/31/2013
 
1999
Pizza Hut
 
West Columbia
 
SC
 
—

(14) 
507

 
415

 
—

 
922

 
9

 
7/31/2013
 
1980
Pizza Hut
 
Edgefield
 
SC
 
—

(14) 
221

 
410

 
—

 
631

 
9

 
7/31/2013
 
1986
Pizza Hut
 
Coleman
 
TX
 
—

 
69

 
391

 
—

 
460

 
9

 
7/31/2013
 
1975
Pizza Hut
 
Stevens Point
 
WI
 
—

 
130

 
390

 
—

 
520

 
9

 
7/31/2013
 
1989
Pizza Hut
 
Laurens
 
SC
 
—

(14) 
454

 
371

 
—

 
825

 
8

 
7/31/2013
 
1989
Pizza Hut
 
Elmira
 
NY
 
—

 
199

 
370

 
—

 
569

 
8

 
7/31/2013
 
1975
Pizza Hut
 
Wellsville
 
NY
 
—

 
123

 
368

 
—

 
491

 
8

 
7/31/2013
 
1978
Pizza Hut
 
Ann Arbor
 
MI
 
—

 
119

 
367

 
—

 
486

 
10

 
6/27/2013
 
1991
Pizza Hut
 
Bishopville
 
SC
 
—

(14) 
365

 
365

 
—

 
730

 
8

 
7/31/2013
 
1987
Pizza Hut
 
Cedar City
 
UT
 
—

 
52

 
361

 
—

 
413

 
10

 
6/27/2013
 
1978
Pizza Hut
 
Eatonton
 
GA
 
—

(14) 
353

 
353

 
—

 
706

 
8

 
7/31/2013
 
1988
Pizza Hut
 
Saluda
 
SC
 
—

(14) 
346

 
346

 
—

 
692

 
8

 
7/31/2013
 
1995
Pizza Hut
 
Hampton
 
VA
 
—

(14) 
641

 
345

 
—

 
986

 
8

 
7/31/2013
 
1977
Pizza Hut
 
Merrill
 
WI
 
—

 
83

 
331

 
—

 
414

 
7

 
7/31/2013
 
1980
Pizza Hut
 
Red Bank
 
TN
 
—

(14) 
215

 
323

 
—

 
538

 
7

 
7/31/2013
 
1975
Pizza Hut
 
Colonial Heights
 
VA
 
—

(14) 
311

 
311

 
—

 
622

 
7

 
7/31/2013
 
1991
Pizza Hut
 
Richmond
 
VA
 
—

(14) 
311

 
311

 
—

 
622

 
7

 
7/31/2013
 
1991
Pizza Hut
 
Seminole
 
TX
 
—

 
53

 
301

 
—

 
354

 
7

 
7/31/2013
 
1977
Pizza Hut
 
Tucker
 
GA
 
—

 
192

 
288

 
—

 
480

 
6

 
7/31/2013
 
1974
Pizza Hut
 
Front Royal
 
VA
 
—

(14) 
191

 
287

 
—

 
478

 
6

 
7/31/2013
 
1973
Pizza Hut
 
Mobile
 
AL
 
—

 
127

 
276

 
—

 
403

 
8

 
6/27/2013
 
1974
Pizza Hut
 
Dawson
 
GA
 
—

 
131

 
274

 
—

 
405

 
8

 
6/27/2013
 
1987
Pizza Hut
 
Lafayette
 
LA
 
—

 
68

 
271

 
—

 
339

 
8

 
6/27/2013
 
1990
Pizza Hut
 
Oklahoma City
 
OK
 
—

(14) 
268

 
268

 
—

 
536

 
6

 
7/31/2013
 
1984
Pizza Hut
 
Page
 
AZ
 
—

 
66

 
263

 
—

 
329

 
6

 
7/31/2013
 
1977
Pizza Hut
 
Bowling Green
 
OH
 
—

 
141

 
262

 
—

 
403

 
6

 
7/31/2013
 
1979
Pizza Hut
 
Antigo
 
WI
 
—

 
45

 
252

 
—

 
297

 
6

 
7/31/2013
 
1997
Pizza Hut
 
Santee
 
SC
 
—

(14) 
371

 
248

 
—

 
619

 
5

 
7/31/2013
 
1972
Pizza Hut
 
Saint George
 
SC
 
—

(14) 
367

 
245

 
—

 
612

 
5

 
7/31/2013
 
1980
Pizza Hut
 
Ashburn
 
GA
 
—

 
102

 
233

 
—

 
335

 
6

 
6/27/2013
 
1988

F-122

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Pizza Hut
 
Box Elder
 
SD
 
—

(14) 
68

 
217

 
—

 
285

 
6

 
6/27/2013
 
1985
Pizza Hut
 
Shamokin
 
PA
 
—

 
54

 
217

 
—

 
271

 
5

 
7/31/2013
 
1976
Pizza Hut
 
Kanab
 
UT
 
—

 
52

 
210

 
—

 
262

 
5

 
7/31/2013
 
1989
Pizza Hut
 
Hayward
 
WI
 
—

 
51

 
205

 
—

 
256

 
5

 
7/31/2013
 
1993
Pizza Hut
 
Plover
 
WI
 
—

 
85

 
199

 
—

 
284

 
4

 
7/31/2013
 
1994
Pizza Hut
 
Defiance
 
OH
 
—

 
114

 
197

 
—

 
311

 
5

 
6/27/2013
 
1977
Pizza Hut
 
Schofield
 
WI
 
—

 
106

 
196

 
—

 
302

 
4

 
7/31/2013
 
1987
Pizza Hut
 
Monticello
 
FL
 
—

 
115

 
195

 
—

 
310

 
5

 
6/27/2013
 
1987
Pizza Hut
 
Abbotsford
 
WI
 
—

 
159

 
195

 
—

 
354

 
4

 
7/31/2013
 
1980
Pizza Hut
 
Marietta
 
OH
 
—

 
104

 
193

 
—

 
297

 
4

 
7/31/2013
 
1986
Pizza Hut
 
Hurricane
 
WV
 
—

 
126

 
188

 
—

 
314

 
4

 
7/31/2013
 
1978
Pizza Hut
 
East Syracuse
 
NY
 
—

 
137

 
185

 
—

 
322

 
5

 
6/27/2013
 
1978
Pizza Hut
 
Cleveland
 
OH
 
—

 
87

 
175

 
—

 
262

 
5

 
6/27/2013
 
1985
Pizza Hut
 
Toledo
 
OH
 
—

 
58

 
173

 
—

 
231

 
5

 
6/27/2013
 
1978
Pizza Hut
 
Sandusky
 
OH
 
—

 
140

 
171

 
—

 
311

 
4

 
7/31/2013
 
1982
Pizza Hut
 
Abilene
 
TX
 
—

(14) 
397

 
170

 
—

 
567

 
4

 
7/31/2013
 
1976
Pizza Hut
 
Ronceverte
 
WV
 
—

 
66

 
162

 
—

 
228

 
4

 
6/27/2013
 
1978
Pizza Hut
 
Eagle River
 
WI
 
—

 
28

 
159

 
—

 
187

 
3

 
7/31/2013
 
1991
Pizza Hut
 
 Middleburg Heights
 
OH
 
—

 
128

 
156

 
—

 
284

 
3

 
7/31/2013
 
1985
Pizza Hut
 
North Olmsted
 
OH
 
—

 
122

 
153

 
—

 
275

 
4

 
6/27/2013
 
1977
Pizza Hut
 
Cross Lanes
 
WV
 
—

 
122

 
149

 
—

 
271

 
3

 
7/31/2013
 
1977
Pizza Hut
 
Beckley
 
WV
 
—

 
160

 
131

 
—

 
291

 
3

 
7/31/2013
 
1977
Pizza Hut
 
Stamford
 
TX
 
—

 
38

 
115

 
—

 
153

 
3

 
7/31/2013
 
1970
Pizza Hut
 
Norwalk
 
OH
 
—

(14) 
77

 
115

 
—

 
192

 
3

 
7/31/2013
 
1977
Pizza Hut
 
Ballinger
 
TX
 
—

 
34

 
109

 
—

 
143

 
3

 
6/27/2013
 
1978
Pizza Hut
 
Strongsville
 
OH
 
—

 
74

 
108

 
—

 
182

 
3

 
6/27/2013
 
1977
Pizza Hut
 
Neillsville
 
WI
 
—

 
35

 
106

 
—

 
141

 
2

 
7/31/2013
 
1995
Pizza Hut
 
Milton
 
WV
 
—

 
24

 
96

 
—

 
120

 
2

 
7/31/2013
 
1978
Pizza Hut
 
Waupaca
 
WI
 
—

 
61

 
91

 
—

 
152

 
2

 
7/31/2013
 
1991
Pizza Hut
 
Tomahawk
 
WI
 
—

 
35

 
81

 
—

 
116

 
2

 
7/31/2013
 
1986
Pizza Hut
 
Nedrow
 
NY
 
—

 
55

 
80

 
—

 
135

 
2

 
6/27/2013
 
1979
Pizza Hut
 
Clintonville
 
WI
 
—

 
208

 
69

 
—

 
277

 
2

 
7/31/2013
 
1978
Pizza Hut
 
Rochester
 
NY
 
—

 
62

 
62

 
—

 
124

 
1

 
7/31/2013
 
1989
Pizza Hut
 
Lambertville
 
MI
 
—

 
110

 
6

 
—

 
116

 
—

 
7/31/2013
 
1995
Pizza Hut
 
Huntington
 
WV
 
—

 
190

 
4

 
—

 
194

 
—

 
7/31/2013
 
1979
Pizza Hut
 
Adrian
 
MI
 
—

 
265

 
—

 
—

 
265

 
—

 
6/27/2013
 
N/A
Pizza Hut
 
Monroe
 
MI
 
—

 
220

 
—

 
—

 
220

 
—

 
6/27/2013
 
1977
Pizza Hut
 
Bedford
 
OH
 
—

 
183

 
—

 
—

 
183

 
—

 
6/27/2013
 
N/A
Ponderosa
 
Indiana
 
PA
 
—

 
676

 
1,255

 
—

 
1,931

 
31

 
7/31/2013
 
2000
Ponderosa
 
Massena
 
NY
 
—

 
190

 
570

 
—

 
760

 
14

 
7/31/2013
 
1988
Ponderosa
 
Scottsburg
 
IN
 
—

(14) 
430

 
141

 
—

 
571

 
4

 
6/27/2013
 
1985
Popeyes
 
Marksville
 
LA
 
—

(14) 
487

 
1,129

 
—

 
1,616

 
31

 
6/27/2013
 
1987
Popeyes
 
Tampa
 
FL
 
—

(14) 
673

 
1,065

 
—

 
1,738

 
30

 
6/27/2013
 
2000

F-123

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Popeyes
 
Winter Haven
 
FL
 
—

(14) 
484

 
1,001

 
—

 
1,485

 
28

 
6/27/2013
 
1976
Popeyes
 
Greenville
 
MS
 
—

(14) 
513

 
977

 
—

 
1,490

 
27

 
6/27/2013
 
1984
Popeyes
 
Brandon
 
FL
 
—

(14) 
776

 
961

 
—

 
1,737

 
27

 
6/27/2013
 
1978
Popeyes
 
Jacksonville
 
FL
 
—

(14) 
781

 
955

 
—

 
1,736

 
21

 
7/31/2013
 
1955
Popeyes
 
Orlando
 
FL
 
—

(14) 
782

 
955

 
—

 
1,737

 
21

 
7/31/2013
 
2004
Popeyes
 
Lafayette
 
LA
 
—

(14) 
473

 
901

 
—

 
1,374

 
25

 
6/27/2013
 
1996
Popeyes
 
Lafayette
 
LA
 
—

(14) 
434

 
899

 
—

 
1,333

 
25

 
6/27/2013
 
1993
Popeyes
 
Eunice
 
LA
 
—

(14) 
382

 
891

 
—

 
1,273

 
20

 
7/31/2013
 
1986
Popeyes
 
Orange
 
TX
 
—

(14) 
456

 
847

 
—

 
1,303

 
19

 
7/31/2013
 
2004
Popeyes
 
Lakeland
 
FL
 
—

(14) 
830

 
830

 
—

 
1,660

 
18

 
7/31/2013
 
1999
Popeyes
 
Bayou Vista
 
LA
 
—

(14) 
375

 
709

 
—

 
1,084

 
20

 
6/27/2013
 
1985
Popeyes
 
Nederland
 
TX
 
—

(14) 
445

 
668

 
—

 
1,113

 
15

 
7/31/2013
 
1988
Popeyes
 
Omaha
 
NE
 
—

(14) 
264

 
615

 
—

 
879

 
14

 
7/31/2013
 
1985
Popeyes
 
Port Arthur
 
TX
 
—

(14) 
408

 
589

 
—

 
997

 
16

 
6/27/2013
 
1984
Popeyes
 
Franklin
 
LA
 
—

(14) 
283

 
538

 
—

 
821

 
15

 
6/27/2013
 
1985
Popeyes
 
Austin
 
TX
 
—

 
1,216

 
533

 
—

 
1,749

 
15

 
6/27/2013
 
1996
Popeyes
 
Omaha
 
NE
 
—

(14) 
343

 
515

 
—

 
858

 
11

 
7/31/2013
 
1996
Popeyes
 
Saint Louis
 
MO
 
—

(14) 
248

 
460

 
—

 
708

 
13

 
6/27/2013
 
1959
Popeyes
 
Saint Louis
 
MO
 
—

(14) 
288

 
431

 
—

 
719

 
9

 
7/31/2013
 
1978
Popeyes
 
Baton Rouge
 
LA
 
—

(14) 
323

 
394

 
—

 
717

 
9

 
7/31/2013
 
1999
Popeyes
 
Ferguson
 
MO
 
—

(14) 
128

 
383

 
—

 
511

 
8

 
7/31/2013
 
1984
Popeyes
 
Miami
 
FL
 
—

 
220

 
330

 
—

 
550

 
7

 
7/31/2013
 
1962
Popeyes
 
Houston
 
TX
 
—

 
295

 
241

 
—

 
536

 
5

 
7/31/2013
 
1976
Popeyes
 
Portsmouth
 
VA
 
—

(14) 
369

 
230

 
—

 
599

 
6

 
6/27/2013
 
2002
Popeyes
 
Houston
 
TX
 
—

 
278

 
227

 
—

 
505

 
5

 
7/31/2013
 
1978
Popeyes
 
Newport News
 
VA
 
—

(14) 
381

 
217

 
—

 
598

 
6

 
6/27/2013
 
2002
Popeyes
 
Houston
 
TX
 
—

 
111

 
166

 
—

 
277

 
4

 
7/31/2013
 
1976
 Quincy's Family Steakhouse
 
Monroe
 
NC
 
—

 
560

 
458

 
—

 
1,018

 
11

 
7/31/2013
 
1978
Rally's
 
Indianapolis
 
IN
 
—

(14) 
1,168

 
—

 
—

 
1,168

 
—

 
7/31/2013
 
N/A
Rally's
 
Indianapolis
 
IN
 
—

(14) 
1,168

 
—

 
—

 
1,168

 
—

 
7/31/2013
 
N/A
 Rancho Grande Grill
 
Andalusia
 
AL
 
—

 
94

 
251

 
—

 
345

 
7

 
6/27/2013
 
2004
Rite Aid
 
Burton
 
MI
 
—

 
128

 
2,541

 
—

 
2,669

 
63

 
7/26/2013
 
1999
Rite Aid
 
Wilson
 
NC
 
—

 
573

 
1,337

 
—

 
1,910

 
33

 
7/30/2013
 
2002
Rite Aid
 
Adams
 
MA
 
—

 
300

 
1,200

 
—

 
1,500

 
30

 
7/30/2013
 
2000
 Rolls-Royce Corporation
 
Indianapolis
 
IN
 
—

(14) 
5,770

 
64,063

 
—

 
69,833

 
2,100

 
5/9/2013
 
2000
Rubbermaid
 
Brimfield
 
OH
 
—

(14) 
1,552

 
29,485

 
—

 
31,037

 
1,650

 
1/31/2013
 
2012
Rubbermaid
 
Bowling Green
 
OH
 
—

 
714

 
13,560

 
—

 
14,274

 
345

 
7/29/2013
 
2013
 Saltwater Willy's
 
Grapevine
 
TX
 
—

(14) 
572

 
868

 
—

 
1,440

 
25

 
6/27/2013
 
1999
 Schlotzsky's Deli
 
 Colorado Springs
 
CO
 
—

(14) 
530

 
530

 
—

 
1,060

 
15

 
6/27/2013
 
1997
 Schlotzsky's Deli
 
Louisville
 
KY
 
—

(14) 
321

 
342

 
—

 
663

 
9

 
6/27/2013
 
1998
Senor Panchos
 
Orrville
 
OH
 
—

(14) 
99

 
176

 
—

 
275

 
5

 
6/27/2013
 
1990
Shoney's
 
Grenada
 
MS
 
—

 
270

 
809

 
—

 
1,079

 
18

 
7/31/2013
 
1991
Shoney's
 
Columbia
 
SC
 
—

(14) 
446

 
545

 
—

 
991

 
12

 
7/31/2013
 
1985

F-124

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Shoney's
 
West Columbia
 
SC
 
—

(14) 
392

 
262

 
—

 
654

 
6

 
7/31/2013
 
1977
Snowflake Donut Shop
 
Gun Barrel City
 
TX
 
—

 
241

 
383

 
—

 
624

 
11

 
6/27/2013
 
2008
Sonic Drive-In
 
Crystal River
 
FL
 
—

(14) 
107

 
322

 
—

 
429

 
7

 
7/31/2013
 
2008
Sonic Drive-In
 
Mulberry
 
FL
 
—

(14) 
165

 
298

 
—

 
463

 
8

 
6/27/2013
 
2004
Sonic Drive-In
 
Wadesboro
 
NC
 
—

(14) 
137

 
266

 
—

 
403

 
7

 
6/27/2013
 
2007
Sonic Drive-In
 
Spring Hill
 
FL
 
—

(14) 
79

 
252

 
—

 
331

 
7

 
6/27/2013
 
2003
Sonny's BBQ
 
Venice
 
FL
 
—

(14) 
338

 
507

 
—

 
845

 
13

 
7/31/2013
 
1978
Sports Wings
 
Sumter
 
SC
 
—

(14) 
73

 
109

 
—

 
182

 
2

 
7/31/2013
 
1988
 Stripes Gas & Convenience
 
Rio Hondo
 
TX
 
—

(14) 
293

 
2,640

 
—

 
2,933

 
136

 
2/15/2013
 
2008
 Stripes Gas & Convenience
 
Pharr
 
TX
 
—

(14) 
281

 
2,531

 
—

 
2,812

 
130

 
2/15/2013
 
1995
 Stripes Gas & Convenience
 
Andrews
 
TX
 
—

(14) 
406

 
2,302

 
—

 
2,708

 
119

 
2/15/2013
 
2008
Stripes Gas & Convenience
 
La Feria
 
TX
 
—

(14) 
219

 
1,970

 
—

 
2,189

 
101

 
2/15/2013
 
2008
 Sun Trust Bank
 
Waldorf
 
MD
 
—

(14) 
523

 
2,962

 
—

 
3,485

 
119

 
3/22/2013
 
1964
 Sun Trust Bank
 
Mocksville
 
NC
 
—

(14) 
978

 
2,933

 
—

 
3,911

 
118

 
3/22/2013
 
2000
 Sun Trust Bank
 
Annapolis
 
MD
 
—

 
2,653

 
2,170

 
—

 
4,823

 
48

 
7/23/2013
 
1976
 Sun Trust Bank
 
Richmond
 
VA
 
—

(14) 
224

 
2,012

 
—

 
2,236

 
81

 
4/12/2013
 
1909
 Sun Trust Bank
 
Tallahassee
 
FL
 
—

(14) 
828

 
1,933

 
—

 
2,761

 
78

 
4/12/2013
 
1991
 Sun Trust Bank
 
Dunedin
 
FL
 
—

(14) 
479

 
1,917

 
—

 
2,396

 
77

 
3/22/2013
 
1995
 Sun Trust Bank
 
Monroe
 
NC
 
—

(14) 
204

 
1,837

 
—

 
2,041

 
74

 
4/12/2013
 
1920
 Sun Trust Bank
 
Plant City
 
FL
 
—

(14) 
751

 
1,753

 
—

 
2,504

 
70

 
3/22/2013
 
2000
 Sun Trust Bank
 
Destin
 
FL
 
—

(14) 
572

 
1,717

 
—

 
2,289

 
69

 
4/12/2013
 
1998
 Sun Trust Bank
 
Jesup
 
GA
 
—

(14) 
184

 
1,657

 
—

 
1,841

 
67

 
3/22/2013
 
1964
 Sun Trust Bank
 
Atlanta
 
GA
 
—

(14) 
1,018

 
1,527

 
—

 
2,545

 
61

 
4/12/2013
 
1965
 Sun Trust Bank
 
Coral Springs
 
FL
 
—

(14) 
654

 
1,525

 
—

 
2,179

 
61

 
4/12/2013
 
1996
 Sun Trust Bank
 
Rocky Mount
 
VA
 
—

(14) 
265

 
1,504

 
—

 
1,769

 
47

 
5/22/2013
 
1961
 Sun Trust Bank
 
Dunwoody
 
GA
 
—

(14) 
1,784

 
1,460

 
—

 
3,244

 
59

 
3/22/2013
 
1972
 Sun Trust Bank
 
Melbourne
 
FL
 
—

(14) 
464

 
1,392

 
—

 
1,856

 
56

 
4/12/2013
 
1987
 Sun Trust Bank
 
Durham
 
NC
 
—

(14) 
747

 
1,388

 
—

 
2,135

 
56

 
4/12/2013
 
1973
 Sun Trust Bank
 
North Port
 
FL
 
—

(14) 
460

 
1,381

 
—

 
1,841

 
55

 
3/22/2013
 
1982
 Sun Trust Bank
 
Hudson
 
FL
 
—

(14) 
448

 
1,345

 
—

 
1,793

 
54

 
3/22/2013
 
1979
 Sun Trust Bank
 
Port Orange
 
FL
 
—

(14) 
563

 
1,314

 
—

 
1,877

 
53

 
3/22/2013
 
1982
 Sun Trust Bank
 
Nashville
 
TN
 
—

(14) 
1,598

 
1,308

 
—

 
2,906

 
53

 
4/12/2013
 
1992
 Sun Trust Bank
 
Chattanooga
 
TN
 
—

(14) 
223

 
1,263

 
—

 
1,486

 
51

 
3/22/2013
 
1953
 Sun Trust Bank
 
Palm Harbor
 
FL
 
—

(14) 
535

 
1,249

 
—

 
1,784

 
50

 
4/12/2013
 
1994
 Sun Trust Bank
 
Bowdon
 
GA
 
—

(14) 
416

 
1,247

 
—

 
1,663

 
50

 
3/22/2013
 
1900
 Sun Trust Bank
 
Orlando
 
FL
 
—

(14) 
805

 
1,208

 
—

 
2,013

 
49

 
4/12/2013
 
1988
 Sun Trust Bank
 
Madison
 
TN
 
—

(14) 
286

 
1,143

 
—

 
1,429

 
46

 
3/22/2013
 
1953
 Sun Trust Bank
 
Miami
 
FL
 
—

(14) 
1,393

 
1,140

 
—

 
2,533

 
46

 
4/12/2013
 
1982
 Sun Trust Bank
 
Lakeland
 
FL
 
—

(14) 
598

 
1,110

 
—

 
1,708

 
45

 
4/12/2013
 
1988
 Sun Trust Bank
 
 South Daytona Beach
 
FL
 
—

(14) 
592

 
1,099

 
—

 
1,691

 
44

 
4/12/2013
 
1985
 Sun Trust Bank
 
Port Orange
 
FL
 
—

(14) 
590

 
1,095

 
—

 
1,685

 
44

 
3/22/2013
 
1989
 Sun Trust Bank
 
Anderson
 
SC
 
—

(14) 
574

 
1,065

 
—

 
1,639

 
43

 
3/22/2013
 
1998
 Sun Trust Bank
 
 West Palm Beach
 
FL
 
—

(14) 
1,026

 
1,026

 
—

 
2,052

 
41

 
3/22/2013
 
1981

F-125

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
 Sun Trust Bank
 
Frederick
 
MD
 
—

(14) 
991

 
991

 
—

 
1,982

 
35

 
4/26/2013
 
1880
 Sun Trust Bank
 
Roswell
 
GA
 
—

(14) 
1,425

 
950

 
—

 
2,375

 
38

 
4/12/2013
 
1988
 Sun Trust Bank
 
Ellicott City
 
MD
 
—

(14) 
1,728

 
931

 
—

 
2,659

 
37

 
3/22/2013
 
1975
 Sun Trust Bank
 
Belmont
 
NC
 
—

(14) 
616

 
924

 
—

 
1,540

 
37

 
3/22/2013
 
1970
 Sun Trust Bank
 
Lexington
 
NC
 
—

(14) 
447

 
831

 
—

 
1,278

 
33

 
4/12/2013
 
2001
 Sun Trust Bank
 
Kissimmee
 
FL
 
—

(14) 
1,167

 
778

 
—

 
1,945

 
31

 
4/12/2013
 
1981
 Sun Trust Bank
 
Greensboro
 
NC
 
—

(14) 
403

 
748

 
—

 
1,151

 
30

 
4/12/2013
 
1962
 Sun Trust Bank
 
Travelers Rest
 
SC
 
—

(14) 
746

 
746

 
—

 
1,492

 
30

 
4/12/2013
 
1995
 Sun Trust Bank
 
 St. Simons Island
 
GA
 
—

(14) 
1,363

 
734

 
—

 
2,097

 
29

 
3/22/2013
 
1975
 Sun Trust Bank
 
Pensacola
 
FL
 
—

(14) 
886

 
725

 
—

 
1,611

 
29

 
4/12/2013
 
1979
 Sun Trust Bank
 
Concord
 
NC
 
—

(14) 
707

 
707

 
—

 
1,414

 
28

 
4/12/2013
 
1988
 Sun Trust Bank
 
Lake Wales
 
FL
 
—

(14) 
671

 
671

 
—

 
1,342

 
27

 
3/22/2013
 
1988
 Sun Trust Bank
 
Raleigh
 
NC
 
—

(14) 
658

 
658

 
—

 
1,316

 
26

 
3/22/2013
 
1997
 Sun Trust Bank
 
Zebulon
 
NC
 
—

(14) 
515

 
630

 
—

 
1,145

 
25

 
3/22/2013
 
1972
 Sun Trust Bank
 
Nashville
 
TN
 
—

(14) 
613

 
613

 
—

 
1,226

 
25

 
4/12/2013
 
1970
 Sun Trust Bank
 
Belton
 
SC
 
—

(14) 
473

 
578

 
—

 
1,051

 
23

 
4/12/2013
 
1967
 Sun Trust Bank
 
Burlington
 
NC
 
—

(14) 
446

 
545

 
—

 
991

 
22

 
4/12/2013
 
1995
 Sun Trust Bank
 
Oakboro
 
NC
 
—

 
360

 
540

 
—

 
900

 
12

 
7/23/2013
 
1970
 Sun Trust Bank
 
Carrboro
 
NC
 
—

(14) 
512

 
512

 
—

 
1,024

 
21

 
4/12/2013
 
1980
 Sun Trust Bank
 
Cheriton
 
VA
 
—

(14) 
90

 
510

 
—

 
600

 
21

 
3/22/2013
 
1975
 Sun Trust Bank
 
Atlanta
 
GA
 
—

(14) 
1,435

 
478

 
—

 
1,913

 
19

 
4/12/2013
 
1970
 Sun Trust Bank
 
Lynchburg
 
VA
 
—

(14) 
251

 
466

 
—

 
717

 
19

 
3/22/2013
 
1973
 Sun Trust Bank
 
Dunnellon
 
FL
 
—

(14) 
82

 
463

 
—

 
545

 
19

 
3/22/2013
 
1980
 Sun Trust Bank
 
Norfolk
 
VA
 
—

(14) 
656

 
437

 
—

 
1,093

 
18

 
4/12/2013
 
1990
 Sun Trust Bank
 
Richmond
 
VA
 
—

(14) 
277

 
416

 
—

 
693

 
17

 
3/22/2013
 
1959
 Sun Trust Bank
 
Matthews
 
NC
 
—

(14) 
382

 
382

 
—

 
764

 
15

 
3/22/2013
 
1971
 Sun Trust Bank
 
Yadkinville
 
NC
 
—

(14) 
200

 
371

 
—

 
571

 
15

 
4/12/2013
 
1975
 Sun Trust Bank
 
Petersburg
 
VA
 
—

(14) 
102

 
306

 
—

 
408

 
12

 
4/12/2013
 
1975
 Sun Trust Bank
 
Nashville
 
TN
 
—

 
567

 
305

 
—

 
872

 
7

 
7/23/2013
 
1954
 Sun Trust Bank
 
La Vergne
 
TN
 
—

(14) 
171

 
209

 
—

 
380

 
8

 
3/22/2013
 
1985
T.G.I. Friday's
 
Warwick
 
RI
 
—

 
1,228

 
2,775

 
—

 
4,003

 
80

 
6/27/2013
 
1983
T.G.I. Friday's
 
Kentwood
 
MI
 
—

(14) 
281

 
2,533

 
—

 
2,814

 
63

 
7/31/2013
 
1983
T.G.I. Friday's
 
Bismarck
 
ND
 
—

(14) 
1,038

 
1,928

 
—

 
2,966

 
48

 
7/31/2013
 
2000
T.G.I. Friday's
 
Blasdell
 
NY
 
—

(14) 
1,215

 
1,913

 
—

 
3,128

 
55

 
6/27/2013
 
2000
T.G.I. Friday's
 
Ann Arbor
 
MI
 
—

(14) 
547

 
1,640

 
—

 
2,187

 
41

 
7/31/2013
 
1998
T.G.I. Friday's
 
 Royal Palm Beach
 
FL
 
—

(14) 
1,530

 
1,530

 
—

 
3,060

 
38

 
7/31/2013
 
2001
T.G.I. Friday's
 
Rochester
 
MN
 
—

(14) 
1,347

 
1,102

 
—

 
2,449

 
27

 
7/31/2013
 
1993
T.G.I. Friday's
 
Novi
 
MI
 
—

(14) 
1,042

 
1,042

 
—

 
2,084

 
26

 
7/31/2013
 
1994
Taco Bell
 
Vacaville
 
CA
 
—

(14) 
522

 
1,513

 
—

 
2,035

 
42

 
6/27/2013
 
1985
Taco Bell
 
Suisun City
 
CA
 
—

(14) 
355

 
1,419

 
—

 
1,774

 
31

 
7/31/2013
 
1986
Taco Bell
 
Vacaville
 
CA
 
—

(14) 
1,184

 
1,375

 
—

 
2,559

 
38

 
6/27/2013
 
1994
Taco Bell
 
Fairfield
 
CA
 
—

(14) 
500

 
1,327

 
—

 
1,827

 
37

 
6/27/2013
 
1985
Taco Bell
 
 Rancho Cucamonga
 
CA
 
—

(14) 
415

 
1,210

 
—

 
1,625

 
34

 
6/27/2013
 
1992

F-126

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Taco Bell
 
Corona
 
CA
 
—

(14) 
306

 
1,138

 
—

 
1,444

 
32

 
6/27/2013
 
1990
Taco Bell
 
North Corbin
 
KY
 
—

(14) 
139

 
1,082

 
—

 
1,221

 
30

 
6/27/2013
 
1986
Taco Bell
 
Cullman
 
AL
 
—

(14) 
375

 
1,053

 
—

 
1,428

 
29

 
6/27/2013
 
1988
Taco Bell
 
Fontana
 
CA
 
—

(14) 
524

 
1,016

 
—

 
1,540

 
28

 
6/27/2013
 
1992
Taco Bell
 
Moreno Valley
 
CA
 
—

(14) 
367

 
998

 
—

 
1,365

 
28

 
6/27/2013
 
1988
Taco Bell
 
Marion
 
IN
 
—

(14) 
496

 
921

 
—

 
1,417

 
20

 
7/31/2013
 
1994
Taco Bell
 
Winfield
 
AL
 
—

(14) 
278

 
834

 
—

 
1,112

 
18

 
7/31/2013
 
2008
Taco Bell
 
Westerville
 
OH
 
—

(14) 
354

 
827

 
—

 
1,181

 
18

 
7/31/2013
 
1992
Taco Bell
 
Jasper
 
AL
 
—

(14) 
445

 
814

 
—

 
1,259

 
23

 
6/27/2013
 
1987
Taco Bell
 
Dora
 
AL
 
—

(14) 
348

 
813

 
—

 
1,161

 
18

 
7/31/2013
 
1995
Taco Bell
 
Hilliard
 
OH
 
—

(14) 
424

 
787

 
—

 
1,211

 
17

 
7/31/2013
 
1991
Taco Bell
 
Hartselle
 
AL
 
—

(14) 
378

 
781

 
—

 
1,159

 
22

 
6/27/2013
 
1996
Taco Bell
 
Albertville
 
AL
 
—

(14) 
419

 
778

 
—

 
1,197

 
17

 
7/31/2013
 
2000
Taco Bell
 
Dayton
 
OH
 
—

(14) 
129

 
732

 
—

 
861

 
16

 
7/31/2013
 
1995
Taco Bell
 
Pickerington
 
OH
 
—

(14) 
470

 
705

 
—

 
1,175

 
15

 
7/31/2013
 
1991
Taco Bell
 
Detroit
 
MI
 
—

 
124

 
704

 
—

 
828

 
15

 
7/31/2013
 
1989
Taco Bell
 
Warrior
 
AL
 
—

(14) 
364

 
675

 
—

 
1,039

 
15

 
7/31/2013
 
1996
Taco Bell
 
Marysville
 
OH
 
—

(14) 
412

 
618

 
—

 
1,030

 
14

 
7/31/2013
 
1992
Taco Bell
 
Anniston
 
AL
 
—

 
80

 
609

 
—

 
689

 
17

 
6/27/2013
 
2000
Taco Bell
 
Kennesaw
 
GA
 
—

(14) 
162

 
601

 
—

 
763

 
17

 
6/27/2013
 
1984
Taco Bell
 
Moraine
 
OH
 
—

 
280

 
505

 
—

 
785

 
14

 
6/27/2013
 
1985
 Taco Bell / KFC
 
Milwaukee
 
WI
 
—

(14) 
533

 
1,055

 
—

 
1,588

 
29

 
6/27/2013
 
1978
 Taco Bell / Pizza Hut
 
Rubidoux
 
CA
 
—

(14) 
415

 
1,223

 
—

 
1,638

 
34

 
6/27/2013
 
1992
 Taco Bell / Pizza Hut
 
Montclair
 
CA
 
—

(14) 
322

 
900

 
—

 
1,222

 
25

 
6/27/2013
 
1996
Taco Bueno
 
Arlington
 
TX
 
—

(14) 
597

 
895

 
—

 
1,492

 
20

 
7/31/2013
 
2000
Taco Bueno
 
Waco
 
TX
 
—

(14) 
595

 
893

 
—

 
1,488

 
20

 
7/31/2013
 
2000
Taco Bueno
 
Waco
 
TX
 
—

(14) 
595

 
892

 
—

 
1,487

 
20

 
7/31/2013
 
2000
Taco Bueno
 
Hutchinson
 
KS
 
—

(14) 
561

 
841

 
—

 
1,402

 
18

 
7/31/2013
 
2000
Taco Bueno
 
Springfield
 
MO
 
—

(14) 
753

 
753

 
—

 
1,506

 
17

 
7/31/2013
 
2006
Taco Bueno
 
Belton
 
MO
 
—

(14) 
476

 
701

 
—

 
1,177

 
19

 
6/27/2013
 
2006
Taco Bueno
 
Frisco
 
TX
 
—

(14) 
601

 
577

 
—

 
1,178

 
16

 
6/27/2013
 
2000
Taco Bueno
 
 North Richland Hills
 
TX
 
—

(14) 
423

 
567

 
—

 
990

 
16

 
6/27/2013
 
2000
Taco Bueno
 
Lubbock
 
TX
 
—

(14) 
228

 
561

 
—

 
789

 
16

 
6/27/2013
 
2000
Talbots
 
Lakeville
 
MA
 
—

(14) 
6,302

 
25,199

 
—

 
31,501

 
897

 
5/17/2013
 
1987
 Texas Roadhouse
 
Kenosha
 
WI
 
—

(14) 
1,061

 
1,835

 
—

 
2,896

 
53

 
6/27/2013
 
2001
 Tire Warehouse
 
Bangor
 
ME
 
—

(14) 
289

 
1,400

 
—

 
1,689

 
39

 
6/27/2013
 
1977
 Tire Warehouse
 
Fitchburg
 
MA
 
—

(14) 
203

 
704

 
—

 
907

 
20

 
6/27/2013
 
1982
TitleMax
 
Gainesville
 
GA
 
—

(14) 
221

 
270

 
—

 
491

 
7

 
7/31/2013
 
2007
 Tommy Addison's
 
Edgewood
 
FL
 
—

(14) 
366

 
447

 
—

 
813

 
11

 
7/31/2013
 
2003
Tractor Supply
 
Los Banos
 
CA
 
—

(14) 
1,213

 
3,638

 
—

 
4,851

 
145

 
2/28/2013
 
2009
Tractor Supply
 
Mims
 
FL
 
—

 
310

 
2,787

 
—

 
3,097

 
33

 
10/10/2013
 
2012
Tractor Supply
 
Plaistow
 
NH
 
—

 
638

 
2,552

 
—

 
3,190

 
30

 
10/10/2013
 
2012
 Tracy's Seafood
 
Port Arthur
 
TX
 
—

 
43

 
72

 
—

 
115

 
2

 
6/27/2013
 
1998

F-127

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Tumbleweed
 
Zanesville
 
OH
 
—

(14) 
639

 
1,491

 
—

 
2,130

 
37

 
7/31/2013
 
1998
Tumbleweed
 
Owensboro
 
KY
 
—

(14) 
355

 
1,420

 
—

 
1,775

 
35

 
7/31/2013
 
1997
Tumbleweed
 
Louisville
 
KY
 
—

(14) 
468

 
1,404

 
—

 
1,872

 
35

 
7/31/2013
 
2001
Tumbleweed
 
Terre Haute
 
IN
 
—

(14) 
434

 
1,303

 
—

 
1,737

 
32

 
7/31/2013
 
1997
Tumbleweed
 
Springfield
 
OH
 
—

(14) 
549

 
1,280

 
—

 
1,829

 
32

 
7/31/2013
 
1998
Tumbleweed
 
Bellefontaine
 
OH
 
—

(14) 
234

 
938

 
—

 
1,172

 
23

 
7/31/2013
 
1999
Tumbleweed
 
Mayesville
 
KY
 
—

(14) 
353

 
823

 
—

 
1,176

 
20

 
7/31/2013
 
2000
Tumbleweed
 
Wooster
 
OH
 
—

(14) 
342

 
799

 
—

 
1,141

 
20

 
7/31/2013
 
1997
Vacant
 
Albemarle
 
NC
 
—

 
483

 
457

 
—

 
940

 
13

 
6/27/2013
 
1992
  Velox Insurance
 
Woodstock
 
GA
 
—

 
155

 
127

 
—

 
282

 
3

 
7/31/2013
 
1988
 Verizon Wireless
 
Statesville
 
NC
 
—

 
207

 
459

 
—

 
666

 
13

 
6/27/2013
 
1993
Waffle House
 
Roanoke
 
VA
 
—

 
176

 
327

 
—

 
503

 
7

 
7/31/2013
 
1987
Waffle House
 
Cocoa
 
FL
 
—

 
150

 
279

 
—

 
429

 
6

 
7/31/2013
 
1986
Walgreens
 
Denver
 
CO
 
—

 
—

 
4,050

 
—

 
4,050

 
122

 
7/2/2013
 
2008
Walgreens
 
Castle Rock
 
CO
 
—

 
1,581

 
3,689

 
—

 
5,270

 
111

 
7/11/2013
 
2002
Wendy's
 
Columbus
 
GA
 
—

(14) 
478

 
2,209

 
—

 
2,687

 
61

 
6/27/2013
 
2003
Wendy's
 
Owego
 
NY
 
—

(14) 
101

 
1,915

 
—

 
2,016

 
42

 
7/31/2013
 
1989
Wendy's
 
Pasadena
 
MD
 
—

(14) 
1,049

 
1,902

 
—

 
2,951

 
53

 
6/27/2013
 
1997
Wendy's
 
El Paso
 
TX
 
—

(14) 
630

 
1,889

 
—

 
2,519

 
42

 
7/31/2013
 
1996
Wendy's
 
Hamilton
 
OH
 
—

(14) 
655

 
1,848

 
—

 
2,503

 
51

 
6/27/2013
 
2001
Wendy's
 
Columbus
 
GA
 
—

(14) 
701

 
1,787

 
—

 
2,488

 
50

 
6/27/2013
 
1999
Wendy's
 
Kingwood
 
TX
 
—

(14) 
304

 
1,724

 
—

 
2,028

 
38

 
7/31/2013
 
2001
Wendy's
 
Corning
 
NY
 
—

(14) 
191

 
1,717

 
—

 
1,908

 
38

 
7/31/2013
 
1996
Wendy's
 
Richmond
 
IN
 
—

(14) 
735

 
1,716

 
—

 
2,451

 
38

 
7/31/2013
 
1989
Wendy's
 
Albany
 
GA
 
—

(14) 
414

 
1,656

 
—

 
2,070

 
36

 
7/31/2013
 
2000
Wendy's
 
Orange
 
CT
 
—

(14) 
1,343

 
1,641

 
—

 
2,984

 
36

 
7/31/2013
 
2003
Wendy's
 
Woodbridge
 
VA
 
—

(14) 
1,193

 
1,598

 
—

 
2,791

 
44

 
6/27/2013
 
1996
Wendy's
 
Arlington
 
TX
 
—

(14) 
1,322

 
1,546

 
—

 
2,868

 
43

 
6/27/2013
 
1994
Wendy's
 
Middletown
 
OH
 
—

(14) 
494

 
1,481

 
—

 
1,975

 
33

 
7/31/2013
 
1977
Wendy's
 
Fairborn
 
OH
 
—

(14) 
629

 
1,468

 
—

 
2,097

 
32

 
7/31/2013
 
1999
Wendy's
 
Lake Wales
 
FL
 
—

(14) 
975

 
1,462

 
—

 
2,437

 
32

 
7/31/2013
 
1999
Wendy's
 
Wintersville
 
OH
 
—

(14) 
621

 
1,450

 
—

 
2,071

 
32

 
7/31/2013
 
1977
Wendy's
 
Kenosha
 
WI
 
—

(14) 
965

 
1,447

 
—

 
2,412

 
32

 
7/31/2013
 
1986
Wendy's
 
Mcminnville
 
TN
 
—

(14) 
255

 
1,443

 
—

 
1,698

 
32

 
7/31/2013
 
1984
Wendy's
 
Centerville
 
OH
 
—

(14) 
615

 
1,434

 
—

 
2,049

 
32

 
7/31/2013
 
1997
Wendy's
 
Emporia
 
VA
 
—

(14) 
631

 
1,424

 
—

 
2,055

 
39

 
6/27/2013
 
1994
Wendy's
 
Louisville
 
KY
 
—

(14) 
857

 
1,421

 
—

 
2,278

 
39

 
6/27/2013
 
2000
Wendy's
 
Kankakee
 
IL
 
—

(14) 
250

 
1,419

 
—

 
1,669

 
31

 
7/31/2013
 
2005
Wendy's
 
Hillsboro
 
OH
 
—

(14) 
291

 
1,408

 
—

 
1,699

 
39

 
6/27/2013
 
1985
Wendy's
 
Cincinnati
 
OH
 
—

(14) 
939

 
1,408

 
—

 
2,347

 
31

 
7/31/2013
 
1980
Wendy's
 
Fairborn
 
OH
 
—

(14) 
604

 
1,408

 
—

 
2,012

 
31

 
7/31/2013
 
1992
Wendy's
 
Pounding Mill
 
VA
 
—

(14) 
296

 
1,404

 
—

 
1,700

 
39

 
6/27/2013
 
2004
Wendy's
 
Dublin
 
VA
 
—

(14) 
384

 
1,402

 
—

 
1,786

 
39

 
6/27/2013
 
1993

F-128

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Wendy's
 
Manchester
 
TN
 
—

(14) 
245

 
1,390

 
—

 
1,635

 
31

 
7/31/2013
 
1984
Wendy's
 
Louisville
 
KY
 
—

(14) 
834

 
1,379

 
—

 
2,213

 
38

 
6/27/2013
 
2001
Wendy's
 
Horseheads
 
NY
 
—

(14) 
72

 
1,369

 
—

 
1,441

 
30

 
7/31/2013
 
1982
Wendy's
 
Hamilton
 
OH
 
—

(14) 
908

 
1,362

 
—

 
2,270

 
30

 
7/31/2013
 
2002
Wendy's
 
Madison
 
WI
 
—

(14) 
454

 
1,362

 
—

 
1,816

 
30

 
7/31/2013
 
1998
Wendy's
 
Hogansville
 
GA
 
—

(14) 
240

 
1,359

 
—

 
1,599

 
30

 
7/31/2013
 
1985
Wendy's
 
Brentwood
 
TN
 
—

(14) 
339

 
1,356

 
—

 
1,695

 
30

 
7/31/2013
 
1982
Wendy's
 
Milwaukee
 
WI
 
—

(14) 
338

 
1,351

 
—

 
1,689

 
30

 
7/31/2013
 
1985
Wendy's
 
Oak Creek
 
WI
 
—

(14) 
577

 
1,347

 
—

 
1,924

 
30

 
7/31/2013
 
1999
Wendy's
 
Dayton
 
OH
 
—

(14) 
723

 
1,343

 
—

 
2,066

 
30

 
7/31/2013
 
1977
Wendy's
 
Springboro
 
OH
 
—

(14) 
891

 
1,336

 
—

 
2,227

 
29

 
7/31/2013
 
1979
Wendy's
 
Auburn
 
AL
 
—

(14) 
718

 
1,334

 
—

 
2,052

 
29

 
7/31/2013
 
2000
Wendy's
 
Saint Marys
 
WV
 
—

(14) 
70

 
1,322

 
—

 
1,392

 
29

 
7/31/2013
 
2001
Wendy's
 
Fairburn
 
GA
 
—

(14) 
1,076

 
1,316

 
—

 
2,392

 
29

 
7/31/2013
 
2002
Wendy's
 
Nashville
 
TN
 
—

(14) 
328

 
1,313

 
—

 
1,641

 
29

 
7/31/2013
 
1983
Wendy's
 
Sharpsburg
 
GA
 
—

(14) 
649

 
1,299

 
—

 
1,948

 
36

 
6/27/2013
 
2002
Wendy's
 
Connersville
 
IN
 
—

(14) 
324

 
1,298

 
—

 
1,622

 
29

 
7/31/2013
 
1989
Wendy's
 
Hamilton
 
OH
 
—

(14) 
697

 
1,295

 
—

 
1,992

 
28

 
7/31/2013
 
1974
Wendy's
 
Kenosha
 
WI
 
—

(14) 
322

 
1,290

 
—

 
1,612

 
28

 
7/31/2013
 
1984
Wendy's
 
Germantown
 
WI
 
—

(14) 
419

 
1,257

 
—

 
1,676

 
28

 
7/31/2013
 
1989
Wendy's
 
Endicott
 
NY
 
—

(14) 
313

 
1,253

 
—

 
1,566

 
28

 
7/31/2013
 
1987
Wendy's
 
Parkersburg
 
WV
 
—

(14) 
311

 
1,243

 
—

 
1,554

 
27

 
7/31/2013
 
1977
Wendy's
 
Fitchburg
 
WI
 
—

(14) 
662

 
1,230

 
—

 
1,892

 
27

 
7/31/2013
 
2003
Wendy's
 
Louisville
 
KY
 
—

(14) 
532

 
1,221

 
—

 
1,753

 
34

 
6/27/2013
 
1998
Wendy's
 
Corpus Christi
 
TX
 
—

(14) 
646

 
1,199

 
—

 
1,845

 
26

 
7/31/2013
 
1987
Wendy's
 
Fort Smith
 
AR
 
—

 
195

 
1,186

 
—

 
1,381

 
33

 
6/27/2013
 
1995
Wendy's
 
Columbus
 
GA
 
—

(14) 
743

 
1,185

 
—

 
1,928

 
33

 
6/27/2013
 
1988
Wendy's
 
Phenix City
 
AL
 
—

(14) 
529

 
1,178

 
—

 
1,707

 
33

 
6/27/2013
 
2005
Wendy's
 
Millville
 
NJ
 
—

 
373

 
1,169

 
—

 
1,542

 
32

 
6/27/2013
 
1994
Wendy's
 
El Dorado
 
AR
 
—

 
413

 
1,151

 
—

 
1,564

 
32

 
6/27/2013
 
1975
Wendy's
 
Greenfield
 
WI
 
—

(14) 
487

 
1,137

 
—

 
1,624

 
25

 
7/31/2013
 
2001
Wendy's
 
Middletown
 
OH
 
—

(14) 
755

 
1,133

 
—

 
1,888

 
25

 
7/31/2013
 
1976
Wendy's
 
Fairmont
 
WV
 
—

(14) 
224

 
1,119

 
—

 
1,343

 
31

 
6/27/2013
 
1983
Wendy's
 
Sayre
 
PA
 
—

(14) 
372

 
1,115

 
—

 
1,487

 
25

 
7/31/2013
 
1994
Wendy's
 
Nashville
 
TN
 
—

(14) 
592

 
1,100

 
—

 
1,692

 
24

 
7/31/2013
 
1983
Wendy's
 
Murfreesboro
 
TN
 
—

(14) 
586

 
1,088

 
—

 
1,674

 
24

 
7/31/2013
 
1983
Wendy's
 
Miamisburg
 
OH
 
—

(14) 
888

 
1,086

 
—

 
1,974

 
24

 
7/31/2013
 
1995
Wendy's
 
Auburn
 
NY
 
—

(14) 
465

 
1,085

 
—

 
1,550

 
24

 
7/31/2013
 
1977
Wendy's
 
West Allis
 
WI
 
—

(14) 
583

 
1,083

 
—

 
1,666

 
24

 
7/31/2013
 
1984
Wendy's
 
Bourbonnais
 
IL
 
—

(14) 
346

 
1,039

 
—

 
1,385

 
23

 
7/31/2013
 
1993
Wendy's
 
Stuttgart
 
AR
 
—

(14) 
67

 
1,038

 
—

 
1,105

 
29

 
6/27/2013
 
2001
Wendy's
 
Baltimore
 
MD
 
—

(14) 
904

 
1,036

 
—

 
1,940

 
29

 
6/27/2013
 
1986
Wendy's
 
Lancaster
 
OH
 
—

(14) 
552

 
1,025

 
—

 
1,577

 
23

 
7/31/2013
 
1984

F-129

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Wendy's
 
Pine Bluff
 
AR
 
—

(14) 
221

 
1,022

 
—

 
1,243

 
28

 
6/27/2013
 
1989
Wendy's
 
Benton
 
AR
 
—

 
478

 
1,018

 
—

 
1,496

 
28

 
6/27/2013
 
1993
Wendy's
 
Fort Smith
 
AR
 
—

 
63

 
1,016

 
—

 
1,079

 
28

 
6/27/2013
 
1995
Wendy's
 
Milwaukee
 
WI
 
—

(14) 
436

 
1,016

 
—

 
1,452

 
22

 
7/31/2013
 
1983
Wendy's
 
Sheboygan
 
WI
 
—

(14) 
676

 
1,014

 
—

 
1,690

 
22

 
7/31/2013
 
1995
Wendy's
 
Saint Bernard
 
OH
 
—

(14) 
432

 
1,009

 
—

 
1,441

 
22

 
7/31/2013
 
1985
Wendy's
 
Lebanon
 
VA
 
—

(14) 
431

 
1,006

 
—

 
1,437

 
22

 
7/31/2013
 
1983
Wendy's
 
Mokena
 
IL
 
—

(14) 
665

 
997

 
—

 
1,662

 
22

 
7/31/2013
 
1992
Wendy's
 
Richmond
 
IN
 
—

(14) 
661

 
992

 
—

 
1,653

 
22

 
7/31/2013
 
1989
Wendy's
 
Birmingham
 
AL
 
—

(14) 
562

 
990

 
—

 
1,552

 
27

 
6/27/2013
 
2005
Wendy's
 
Ponca City
 
OK
 
—

(14) 
529

 
983

 
—

 
1,512

 
22

 
7/31/2013
 
1979
Wendy's
 
South Hill
 
VA
 
—

 
313

 
976

 
—

 
1,289

 
27

 
6/27/2013
 
1984
Wendy's
 
Hillsville
 
VA
 
—

(14) 
324

 
973

 
—

 
1,297

 
21

 
7/31/2013
 
2001
Wendy's
 
Fairfield
 
OH
 
—

(14) 
794

 
971

 
—

 
1,765

 
21

 
7/31/2013
 
1981
Wendy's
 
Janesville
 
WI
 
—

(14) 
647

 
971

 
—

 
1,618

 
21

 
7/31/2013
 
1991
Wendy's
 
Parkersburg
 
WV
 
—

(14) 
241

 
964

 
—

 
1,205

 
21

 
7/31/2013
 
1996
Wendy's
 
Joliet
 
IL
 
—

(14) 
642

 
963

 
—

 
1,605

 
21

 
7/31/2013
 
1977
Wendy's
 
Cortland
 
NY
 
—

(14) 
635

 
952

 
—

 
1,587

 
21

 
7/31/2013
 
1984
Wendy's
 
Norwich
 
CT
 
—

 
703

 
937

 
—

 
1,640

 
26

 
6/27/2013
 
1980
Wendy's
 
Minden
 
LA
 
—

(14) 
182

 
936

 
—

 
1,118

 
26

 
6/27/2013
 
2001
Wendy's
 
Bowling Green
 
OH
 
—

 
502

 
932

 
—

 
1,434

 
20

 
7/31/2013
 
1994
Wendy's
 
Beloit
 
WI
 
—

(14) 
1,138

 
931

 
—

 
2,069

 
20

 
7/31/2013
 
2002
Wendy's
 
West Chester
 
OH
 
—

(14) 
616

 
924

 
—

 
1,540

 
20

 
7/31/2013
 
2005
Wendy's
 
Morrow
 
GA
 
—

(14) 
755

 
922

 
—

 
1,677

 
20

 
7/31/2013
 
1990
Wendy's
 
Middletown
 
OH
 
—

(14) 
752

 
920

 
—

 
1,672

 
20

 
7/31/2013
 
1994
Wendy's
 
Rogers
 
AR
 
—

 
579

 
912

 
—

 
1,491

 
25

 
6/27/2013
 
1995
Wendy's
 
Searcy
 
AR
 
—

 
247

 
905

 
—

 
1,152

 
25

 
6/27/2013
 
1978
Wendy's
 
Groton
 
CT
 
—

 
1,099

 
900

 
—

 
1,999

 
20

 
7/31/2013
 
1978
Wendy's
 
Anderson
 
SC
 
—

 
734

 
897

 
—

 
1,631

 
20

 
7/31/2013
 
1979
Wendy's
 
Wytheville
 
VA
 
—

(14) 
598

 
897

 
—

 
1,495

 
20

 
7/31/2013
 
2003
Wendy's
 
Springdale
 
AR
 
—

 
323

 
896

 
—

 
1,219

 
25

 
6/27/2013
 
1994
Wendy's
 
Pendleton
 
IN
 
—

(14) 
448

 
895

 
—

 
1,343

 
25

 
6/27/2013
 
2005
Wendy's
 
Enid
 
OK
 
—

(14) 
158

 
893

 
—

 
1,051

 
20

 
7/31/2013
 
2003
Wendy's
 
Buckhannon
 
WV
 
—

(14) 
157

 
890

 
—

 
1,047

 
20

 
7/31/2013
 
1987
Wendy's
 
Parkersburg
 
WV
 
—

(14) 
295

 
885

 
—

 
1,180

 
19

 
7/31/2013
 
1979
Wendy's
 
Binghamton
 
NY
 
—

(14) 
293

 
879

 
—

 
1,172

 
19

 
7/31/2013
 
1978
Wendy's
 
Little Rock
 
AR
 
—

 
278

 
878

 
—

 
1,156

 
24

 
6/27/2013
 
1976
Wendy's
 
Batesville
 
AR
 
—

 
155

 
878

 
—

 
1,033

 
19

 
7/31/2013
 
1995
Wendy's
 
Buckeye Lake
 
OH
 
—

(14) 
864

 
877

 
—

 
1,741

 
24

 
6/27/2013
 
2000
Wendy's
 
Ripley
 
WV
 
—

(14) 
273

 
871

 
—

 
1,144

 
24

 
6/27/2013
 
1984
Wendy's
 
West Carrollton
 
OH
 
—

(14) 
708

 
865

 
—

 
1,573

 
19

 
7/31/2013
 
1979
Wendy's
 
Whitehall
 
OH
 
—

(14) 
716

 
863

 
—

 
1,579

 
24

 
6/27/2013
 
1983
Wendy's
 
North Myrtle Beach
 
SC
 
—

 
464

 
861

 
—

 
1,325

 
19

 
7/31/2013
 
1983

F-130

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Wendy's
 
Hayes
 
VA
 
—

(14) 
304

 
859

 
—

 
1,163

 
24

 
6/27/2013
 
1992
Wendy's
 
Lynn Haven
 
FL
 
—

(14) 
446

 
852

 
—

 
1,298

 
24

 
6/27/2013
 
2005
Wendy's
 
Panama City
 
FL
 
—

(14) 
445

 
837

 
—

 
1,282

 
23

 
6/27/2013
 
1987
Wendy's
 
Conway
 
AR
 
—

 
482

 
833

 
—

 
1,315

 
23

 
6/27/2013
 
1994
Wendy's
 
Fayetteville
 
AR
 
—

 
408

 
830

 
—

 
1,238

 
23

 
6/27/2013
 
1994
Wendy's
 
Payson
 
AZ
 
—

 
679

 
829

 
—

 
1,508

 
18

 
7/31/2013
 
1986
Wendy's
 
Springdale
 
AR
 
—

 
410

 
821

 
—

 
1,231

 
23

 
6/27/2013
 
1995
Wendy's
 
Bridgeport
 
WV
 
—

(14) 
273

 
818

 
—

 
1,091

 
18

 
7/31/2013
 
1984
Wendy's
 
Milwaukee
 
WI
 
—

(14) 
810

 
810

 
—

 
1,620

 
18

 
7/31/2013
 
1979
Wendy's
 
Burlington
 
WA
 
—

 
425

 
806

 
—

 
1,231

 
22

 
6/27/2013
 
1994
Wendy's
 
Baltimore
 
MD
 
—

(14) 
760

 
802

 
—

 
1,562

 
22

 
6/27/2013
 
1995
Wendy's
 
The Dalles
 
OR
 
—

 
201

 
802

 
—

 
1,003

 
18

 
7/31/2013
 
1994
Wendy's
 
Eatontown
 
NJ
 
—

(14) 
651

 
796

 
—

 
1,447

 
17

 
7/31/2013
 
1987
Wendy's
 
Baton Rouge
 
LA
 
—

 
316

 
782

 
—

 
1,098

 
22

 
6/27/2013
 
1998
Wendy's
 
Douglasville
 
GA
 
—

 
605

 
776

 
—

 
1,381

 
21

 
6/27/2013
 
1993
Wendy's
 
Lithia Springs
 
GA
 
—

(14) 
668

 
774

 
—

 
1,442

 
21

 
6/27/2013
 
1998
Wendy's
 
Little Rock
 
AR
 
—

 
773

 
773

 
—

 
1,546

 
17

 
7/31/2013
 
1994
Wendy's
 
West Chester
 
OH
 
—

(14) 
944

 
772

 
—

 
1,716

 
17

 
7/31/2013
 
1982
Wendy's
 
Titusville
 
FL
 
—

 
414

 
770

 
—

 
1,184

 
17

 
7/31/2013
 
1996
Wendy's
 
Titusville
 
FL
 
—

(14) 
415

 
761

 
—

 
1,176

 
21

 
6/27/2013
 
1984
Wendy's
 
Crossville
 
TN
 
—

(14) 
190

 
760

 
—

 
950

 
17

 
7/31/2013
 
1978
Wendy's
 
Anderson
 
IN
 
—

(14) 
505

 
757

 
—

 
1,262

 
17

 
7/31/2013
 
1995
Wendy's
 
Van Buren
 
AR
 
—

 
197

 
748

 
—

 
945

 
21

 
6/27/2013
 
1994
Wendy's
 
New Berlin
 
WI
 
—

(14) 
903

 
739

 
—

 
1,642

 
16

 
7/31/2013
 
1983
Wendy's
 
Anderson
 
IN
 
—

(14) 
872

 
736

 
—

 
1,608

 
20

 
6/27/2013
 
1978
Wendy's
 
 Madison Heights
 
MI
 
—

(14) 
198

 
725

 
—

 
923

 
20

 
6/27/2013
 
1998
Wendy's
 
Savannah
 
GA
 
—

(14) 
720

 
720

 
—

 
1,440

 
16

 
7/31/2013
 
2001
Wendy's
 
Anderson
 
IN
 
—

(14) 
584

 
713

 
—

 
1,297

 
16

 
7/31/2013
 
1976
Wendy's
 
Bentonville
 
AR
 
—

 
648

 
708

 
—

 
1,356

 
20

 
6/27/2013
 
1993
Wendy's
 
Anderson
 
IN
 
—

(14) 
859

 
708

 
—

 
1,567

 
20

 
6/27/2013
 
1978
Wendy's
 
Cabot
 
AR
 
—

 
524

 
707

 
—

 
1,231

 
20

 
6/27/2013
 
1991
Wendy's
 
Mechanicsville
 
VA
 
—

(14) 
521

 
704

 
—

 
1,225

 
20

 
6/27/2013
 
1988
Wendy's
 
Vienna
 
WV
 
—

(14) 
301

 
702

 
—

 
1,003

 
15

 
7/31/2013
 
1976
Wendy's
 
Melbourne
 
FL
 
—

(14) 
550

 
681

 
—

 
1,231

 
19

 
6/27/2013
 
1993
Wendy's
 
Tinton Falls
 
NJ
 
—

 
874

 
671

 
—

 
1,545

 
19

 
6/27/2013
 
1977
Wendy's
 
Creedmoor
 
NC
 
—

 
533

 
663

 
—

 
1,196

 
18

 
6/27/2013
 
1986
Wendy's
 
Little Rock
 
AR
 
—

(14) 
532

 
650

 
—

 
1,182

 
14

 
7/31/2013
 
1978
Wendy's
 
Russellville
 
AR
 
—

 
356

 
638

 
—

 
994

 
18

 
6/27/2013
 
1985
Wendy's
 
Arkadelphia
 
AR
 
—

 
225

 
633

 
—

 
858

 
18

 
6/27/2013
 
1990
Wendy's
 
Greenville
 
SC
 
—

 
516

 
631

 
—

 
1,147

 
14

 
7/31/2013
 
1975
Wendy's
 
San Antonio
 
TX
 
—

 
268

 
630

 
—

 
898

 
17

 
6/27/2013
 
1985
Wendy's
 
Christiansburg
 
VA
 
—

(14) 
416

 
624

 
—

 
1,040

 
14

 
7/31/2013
 
1980
Wendy's
 
Little Rock
 
AR
 
—

 
990

 
623

 
—

 
1,613

 
17

 
6/27/2013
 
1982

F-131

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Wendy's
 
Woodbridge
 
VA
 
—

(14) 
521

 
615

 
—

 
1,136

 
17

 
6/27/2013
 
1978
Wendy's
 
Indialantic
 
FL
 
—

(14) 
592

 
614

 
—

 
1,206

 
17

 
6/27/2013
 
1985
Wendy's
 
North Haven
 
CT
 
—

 
729

 
610

 
—

 
1,339

 
17

 
6/27/2013
 
1980
Wendy's
 
Conway
 
AR
 
—

 
478

 
594

 
—

 
1,072

 
16

 
6/27/2013
 
1985
Wendy's
 
Anniston
 
AL
 
—

(14) 
454

 
591

 
—

 
1,045

 
16

 
6/27/2013
 
1976
Wendy's
 
Merritt Island
 
FL
 
—

 
720

 
589

 
—

 
1,309

 
13

 
7/31/2013
 
1990
Wendy's
 
Bryant
 
AR
 
—

 
529

 
575

 
—

 
1,104

 
16

 
6/27/2013
 
1995
Wendy's
 
Spartanburg
 
SC
 
—

 
699

 
572

 
—

 
1,271

 
13

 
7/31/2013
 
1977
Wendy's
 
Port Orange
 
FL
 
—

(14) 
695

 
569

 
—

 
1,264

 
13

 
7/31/2013
 
1996
Wendy's
 
Cocoa
 
FL
 
—

(14) 
249

 
567

 
—

 
816

 
16

 
6/27/2013
 
1979
Wendy's
 
Ormond Beach
 
FL
 
—

(14) 
626

 
561

 
—

 
1,187

 
16

 
6/27/2013
 
1994
Wendy's
 
North Tazewell
 
VA
 
—

 
124

 
560

 
—

 
684

 
16

 
6/27/2013
 
1980
Wendy's
 
Stockbridge
 
GA
 
—

 
480

 
558

 
—

 
1,038

 
15

 
6/27/2013
 
1897
Wendy's
 
North Little Rock
 
AR
 
—

 
420

 
551

 
—

 
971

 
15

 
6/27/2013
 
1978
Wendy's
 
Memphis
 
TN
 
—

 
227

 
530

 
—

 
757

 
12

 
7/31/2013
 
1980
Wendy's
 
Panama City
 
FL
 
—

(14) 
461

 
529

 
—

 
990

 
15

 
6/27/2013
 
1984
Wendy's
 
Tallahassee
 
FL
 
—

(14) 
952

 
514

 
—

 
1,466

 
14

 
6/27/2013
 
1986
Wendy's
 
Austell
 
GA
 
—

(14) 
383

 
506

 
—

 
889

 
14

 
6/27/2013
 
1994
Wendy's
 
Indianapolis
 
IN
 
—

 
214

 
505

 
—

 
719

 
14

 
6/27/2013
 
1985
Wendy's
 
Tallahassee
 
FL
 
—

(14) 
855

 
505

 
—

 
1,360

 
14

 
6/27/2013
 
1986
Wendy's
 
Ormond Beach
 
FL
 
—

(14) 
503

 
503

 
—

 
1,006

 
11

 
7/31/2013
 
1984
Wendy's
 
Little Rock
 
AR
 
—

 
501

 
501

 
—

 
1,002

 
11

 
7/31/2013
 
1983
Wendy's
 
Bellevue
 
NE
 
—

(14) 
338

 
484

 
—

 
822

 
13

 
6/27/2013
 
1981
Wendy's
 
Eastman
 
GA
 
—

(14) 
258

 
473

 
—

 
731

 
13

 
6/27/2013
 
1996
Wendy's
 
Little Rock
 
AR
 
—

 
605

 
463

 
—

 
1,068

 
13

 
6/27/2013
 
1987
Wendy's
 
Fayetteville
 
AR
 
—

(14) 
463

 
463

 
—

 
926

 
10

 
7/31/2013
 
1989
Wendy's
 
San Antonio
 
TX
 
—

 
410

 
451

 
—

 
861

 
13

 
6/27/2013
 
1987
Wendy's
 
Columbia
 
SC
 
—

 
425

 
438

 
—

 
863

 
12

 
6/27/2013
 
1993
Wendy's
 
Brunswick
 
GA
 
—

(14) 
306

 
435

 
—

 
741

 
12

 
6/27/2013
 
1985
Wendy's
 
Pine Bluff
 
AR
 
—

 
105

 
433

 
—

 
538

 
12

 
6/27/2013
 
1978
Wendy's
 
South Daytona
 
FL
 
—

(14) 
531

 
432

 
—

 
963

 
12

 
6/27/2013
 
1980
Wendy's
 
Starke
 
FL
 
—

 
383

 
419

 
—

 
802

 
12

 
6/27/2013
 
1979
Wendy's
 
Smyrna
 
GA
 
—

 
693

 
416

 
—

 
1,109

 
12

 
6/27/2013
 
1990
Wendy's
 
Hot Springs
 
AR
 
—

 
593

 
395

 
—

 
988

 
9

 
7/31/2013
 
1974
Wendy's
 
 New Smyrna Beach
 
FL
 
—

(14) 
476

 
394

 
—

 
870

 
11

 
6/27/2013
 
1982
Wendy's
 
San Antonio
 
TX
 
—

 
320

 
320

 
—

 
640

 
9

 
6/27/2013
 
1985
Wendy's
 
Suitland
 
MD
 
—

(14) 
332

 
275

 
—

 
607

 
8

 
6/27/2013
 
1979
Wendy's
 
Landover
 
MD
 
—

(14) 
340

 
267

 
—

 
607

 
7

 
6/27/2013
 
1978
Wendy's
 
Springs
 
TX
 
—

 
217

 
266

 
—

 
483

 
6

 
7/31/2013
 
1987
Wendy's
 
Little Rock
 
AR
 
—

 
762

 
258

 
—

 
1,020

 
7

 
6/27/2013
 
1977
Wendy's
 
Titusville
 
FL
 
—

(14) 
528

 
239

 
—

 
767

 
7

 
6/27/2013
 
1978
Wendy's
 
Homewood
 
AL
 
—

 
995

 
—

 
—

 
995

 
—

 
6/27/2013
 
N/A
Wendy's
 
Columbia
 
SC
 
—

 
1,368

 
—

 
—

 
1,368

 
—

 
6/27/2013
 
N/A

F-132

 
 
 
 
 
 
 
Initial Costs
 
Costs Capitalized Subsequent to Acquisition
 
Gross Amount
Carried at
December 31, 2013

(10) (11)
 
 
 
 
 
 
Property
 
City
 
State
 
Encumbrances at
December 31, 2013
Land
 
Buildings, Fixtures and Improvements
 
 
Accumulated Depreciation

(12) (13)
 
Date Acquired
 
Date of Construction
Wendy's
 
Edmond
 
OK
 
—

 
791

 
—

 
—

 
791

 
—

 
7/31/2013
 
1979
 West Fork Roadhouse
 
Youngstown
 
OH
 
—

 
139

 
232

 
—

 
371

 
7

 
6/27/2013
 
1976
Whataburger
 
El Campo
 
TX
 
—

 
693

 
1,013

 
—

 
1,706

 
28

 
6/27/2013
 
1986
Whataburger
 
Edna
 
TX
 
—

(14) 
290

 
869

 
—

 
1,159

 
19

 
7/31/2013
 
1986
Whataburger
 
Lubbock
 
TX
 
—

(14) 
432

 
647

 
—

 
1,079

 
14

 
7/31/2013
 
1992
Whataburger
 
Ingleside
 
TX
 
—

 
1,106

 
474

 
—

 
1,580

 
10

 
7/31/2013
 
1986
 Williams Fried Chicken
 
Garland
 
TX
 
—

 
265

 
137

 
—

 
402

 
4

 
6/27/2013
 
1983
Winn Dixie
 
Jacksonville
 
FL
 
—

(14) 
4,360

 
82,825

 
—

 
87,185

 
2,736

 
4/24/2013
 
2000
Zebb's
 
Amherst
 
NY
 
—

(14) 
150

 
1,347

 
—

 
1,497

 
33

 
7/31/2013
 
1994
Zebb's
 
Orchard Park
 
NY
 
—

(14) 
69

 
1,320

 
—

 
1,389

 
33

 
7/31/2013
 
2000
Zebb's
 
Rochester
 
NY
 
—

(14) 
126

 
1,137

 
—

 
1,263

 
28

 
7/31/2013
 
1990
Zebb's
 
New Hartford
 
NY
 
—

(14) 
122

 
1,095

 
—

 
1,217

 
27

 
7/31/2013
 
1970
Z'Tejas Grill
 
Austin
 
TX
 
—

(14) 
837

 
1,797

 
—

 
2,634

 
52

 
6/27/2013
 
2007
Capitalized land value on DFLs
 
—

 
6,932

 
—

 
—

 
6,932

 
—

 
 
 
 
Encumbrances allocated based on notes below
 
2,152,878

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
$
3,228,461

 
$
1,379,453

 
$
5,303,260

 
$
9,610

 
$
6,692,323

 
$
205,941

 
 
 
 
__________________________________
(1)
These properties collateralize a senior corporate credit facility of up to $2.42 billion, which had $1.06 billion outstanding as of December 31, 2013.
(2)
These properties collateralize a $150.0 million secured credit facility, which had $150.0 million outstanding as of December 31, 2013.
(3)
These properties collateralize a $54.3 million mortgage note payable of which $54.3 million was outstanding as of December 31, 2013.
(4)
These properties collateralize a $48.5 million mortgage note payable of which $48.5 million was outstanding as of December 31, 2013.
(5)
These properties collateralize a $36.6 million mortgage note payable of which $36.6 million was outstanding as of December 31, 2013.
(6)
These properties collateralize a $12.3 million mortgage note payable of which $12.3 million was outstanding as of December 31, 2013.
(7)
These properties collateralize a $15.0 million mortgage note payable of which $15.0 million was outstanding as of December 31, 2013.
(8)
These properties collateralize a $4.5 million mortgage note payable of which $4.5 million was outstanding as of December 31, 2013.
(9)
These properties collateralize a $11.9 million mortgage note payable of which $11.9 million was outstanding as of December 31, 2013.
(10)
Acquired intangible lease assets allocated to individual properties in the amount of $758.4 million are not reflected in the table above.
(11)
The tax basis of aggregate land, buildings and improvements as of December 31, 2013 was $5.1 million.
(12)
The accumulated depreciation column excludes $48.1 million of amortization associated with acquired intangible lease assets.
(13)
Depreciation is computed using the straight-line method over the estimated useful lives of up to forty years for buildings, five to fifteen years for building fixtures and improvements.
(14)
These properties collateralize a senior corporate facility of up to $800.0 million, which had $760.0 million outstanding as of December 31, 2013.

A summary of activity for real estate and accumulated depreciation for the year ended December 31, 2013 (amounts in thousands):
 
 
Year ended December 31, 2013
Real estate investments, at cost:
 
 
Balance at beginning of year
 
$
1,684,115

Additions - acquisitions and improvements
 
5,008,208

Balance at end of the year
 
$
6,692,323

Accumulated depreciation:
 
 
Balance at beginning of year
 
$
45,050

Depreciation expense
 
160,891

Balance at end of the year
 
$
205,941



F-133

AMERICAN REALTY CAPITAL PROPERTIES, INC.
LOANS HELD FOR INVESTMENT
SCHEDULE IV
December 31, 2013
(In thousands)
Description
 
Location
 
Interest Rate
 
Final Maturity Date
 
Periodic Payment Terms
 
Prior Liens
 
Face Amount of Mortgages
 
Carrying Amount of Mortgages
 
Principal Amount of Loans Subject to Delinquent Principal or Interest
Long-Term Mortgage Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank Of America, N.A.
 
Mt. Airy, MD
 
6.42%
 
Dec 2026
 
Principal and interest are payable monthly at a varying amount over the life to maturity
 
 
 
$
2,973

 
$
3,329

 
$
—

CVS Caremark Corporation
 
Evansville, IN
 
6.22%
 
Jan 2033
 
Principal and interest are payable monthly at a level amount over the life to maturity
 
 
 
2,932

 
3,268

 
—

CVS Caremark Corporation
 
Greensboro, GA
 
6.52%
 
Jan 2030
 
Principal and interest are payable monthly at a level amount over the life to maturity
 
 
 
1,133

 
1,289

 
—

CVS Caremark Corporation
 
Shelby Twp., MI
 
5.98%
 
Jan 2031
 
Principal and interest are payable monthly at a varying amount over the life to maturity
 
 
 
2,237

 
2,443

 
—

Koninklijke Ahold, N.V.
 
Bensalem, PA
 
7.24%
 
May 2020
 
Principal and interest are payable monthly at a varying amount over the life to maturity
 
 
 
2,083

 
2,384

 
—

Lowes Companies, Inc.
 
Framingham, MA
 
N/A
 
Sep 2031
 
Principal and interest are payable monthly at a varying amount over the life to maturity
 
 
 
5,692

 
1,399

 
—

Walgreen Co.
 
Dallas, TX
 
6.46%
 
Dec 2029
 
Principal and interest are payable monthly at a level amount over the life to maturity
 
 
 
2,851

 
3,231

 
—

Walgreen Co.
 
Nacogdoches, TX
 
6.8%
 
Sep 2030
 
Principal and interest are payable monthly at a level amount over the life to maturity
 
 
 
3,084

 
3,561

 
—

Walgreen Co.
 
Rosemead, CA
 
6.26%
 
Dec 2029
 
Principal and interest are payable monthly at a level amount over the life to maturity
 
 
 
4,369

 
4,888

 
—

 
 
 
 
 
 
 
 
 
 
 
 
$
27,354

 
$
25,792

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Credit Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Express Corporation
 
Bellingham, WA
 
5.78%
 
Mar 2015
 
Principal and interest are payable monthly at a level amount over the life to maturity
 
 
 
$
81

 
$
83

 
$
—

Lowes Companies, Inc.
 
N. Windham, ME
 
5.28%
 
Sep 2015
 
Principal and interest are payable monthly at a level amount over the life to maturity
 
 
 
256

 
261

 
—

Walgreen Co.
 
Jefferson City, TN
 
5.49%
 
May 2015
 
Principal and interest are payable monthly at a level amount over the life to maturity
 
 
 
140

 
143

 
—

 
 
 
 
 
 
 
 
 
 
 
 
$
477

 
$
487

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
$
27,831

 
$
26,279

 
$
—


 
 
Carrying Amount of Mortgages
Balance - November 5, 2013
 
$
26,457

Additions during the year:
 
 
New Loan Investments
 
—

Deductions during the year:
 
 
Principal received
 
(164
)
Allowance for loan losses
 
—

Amortization of unearned discounts and premiums
 
(14
)
Balance - December 31, 2013
 
$
26,279




F-134