1
Investor Review
Q1 2017
Exhibit 99.1
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About the Data
INVESTOR REVIEW
This data and other information described herein are as of and for the three months ended March 31, 2017, unless otherwise
indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and
uncertainties. This information should be read in conjunction with the financial statements and the Management's Discussion and
Analysis of Financial Condition and Results of Operations sections contained in VEREIT, Inc.'s (the "Company", "VEREIT", "us", "our" and
"we") Annual Report on Form 10-K for the year ended December 31, 2016 and Quarterly Report on Form 10-Q for the three months
ended March 31, 2017. Effective January 1, 2017, the Company determined certain non-GAAP measures and operating metrics,
which include portfolio metrics, should exclude the impact of properties owned by the Company for which as of the reporting date,
(i) the related mortgage loan is in default, and (ii) management has made a decision to transfer the properties to the lender in
connection with settling the mortgage note obligation ("Excluded Properties") to better reflect the ongoing operations of the
Company. Excluded Properties at March 31, 2017, included one vacant office property and one vacant industrial property,
comprising an aggregate of 578,000 square feet, which each secured a mortgage note payable, with aggregate Debt Outstanding of
$41.8 million.
Tenants, Trademarks and Logos
VEREIT is not affiliated with, is not endorsed by, does not endorse and is not sponsored by or a sponsor of the products or services
pictured or mentioned. The names, logos and all related product and service names, design marks and slogans are the trademarks
or service marks of their respective companies.
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Forward-Looking Statements
INVESTOR REVIEW
Information set forth herein (including information included or incorporated by reference herein) contains “forward-looking
statements” (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended), which reflect VEREIT’s expectations regarding future events and VEREIT's future financial
condition, results of operations and business. The forward-looking statements involve a number of assumptions, risks, uncertainties
and other factors that could cause actual results to differ materially from those contained in the forward-looking statements.
Generally, the words “expects,” “anticipates,”“assumes,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,”
variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are subject
to a number of risks, uncertainties and assumptions, most of which are difficult to predict and many of which are beyond VEREIT’s
control. If a change occurs, VEREIT’s business, financial condition, liquidity and results of operations may vary materially from those
expressed in the forward-looking statements.
The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements:
VEREIT’s plans, market and other expectations, objectives, intentions and other statements that are not historical facts; the
developments disclosed herein; VEREIT’s ability to execute on and realize success from its business plan; VEREIT’s ability to meet its
2017 guidance; the unpredictability of the business plans and financial condition of VEREIT’s tenants; the impact of impairment
charges in respect of certain of VEREIT’s properties or other assets; risks associated with pending government investigations and
litigations related to VEREIT's previously disclosed audit committee investigation; the inability of Cole Capital to regain its prior level
of capital raise; the ability to retain or hire key personnel; and continuation or deterioration of current market conditions. Additional
factors that may affect future results are contained in VEREIT’s filings with the U.S. Securities and Exchange Commission (the “SEC”),
which are available at the SEC’s website at www.sec.gov. VEREIT disclaims any obligation to publicly update or revise any forward-
looking statements, whether as a result of changes in underlying assumptions or factors, new information, future events or
otherwise, except as required by law.
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Contents
INVESTOR REVIEW
All data is as of March 31, 2017 and based on Annualized Rental Income (“ARI”), unless otherwise noted.
For definitions and reconciliations of the Company's non-GAAP measures and operating metrics, please view the
Definitions & Reconciliations section of this presentation.
Company Overview 5
Portfolio Metrics & Analysis 11
Key Financial Highlights 23
Highlights & Guidance 27
Contact Information 30
Definitions & Reconciliations 31
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Company Overview
Q1 2017
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VEREIT focuses on net-lease real estate
• Property types focused on single-tenant retail,
restaurant, office and industrial
• Large, diversified platform with 4,105 well-
positioned properties across 93.0 million square feet
• Long-term net-lease structure provides stable and
predictable rent stream payments
• Diverse portfolio across sectors, geographies and
tenants
• Capital provider for corporate America
• Manages $7.5 billion of gross real estate assets on
behalf of the Cole Capital® non-listed REITs
VEREIT is a full-service real estate operating company with investment management
capability
COMPANY OVERVIEW
Company Snapshot
$15.4 billion
Book Value of Total Assets
Retail1
2,097 Properties
Industrial &
Distribution1
150 Properties
Restaurants1
1,754 Properties
Office1
94 Properties
1) Omits two Excluded Properties, and 10 properties that consist of billboards, land and parking lots.
7 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
VEREIT Is a Full-Service
Real Estate Operating Company
COMPANY OVERVIEW
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VEREIT has established best-in-class corporate governance through the
reconstitution of its Board of Directors and implementing significant improvements
COMPANY OVERVIEW
Corporate Governance
• Hugh R. Frater - Non-Executive Chairman
◦ Former Chairman and CEO, Berkadia
• Glenn J. Rufrano - Director
◦ Chief Executive Officer, VEREIT, Inc.
• David B. Henry - Independent Director
◦ Former Chairman and CEO, Kimco Realty Corporation
• Mary Hogan Preusse - Independent Director
◦ Former Managing Director and Co-Head of Americas Real Estate APG
Asset Management US
• Richard J. Lieb - Independent Director
◦ Managing Director and Chairman of Real Estate Greenhill & Co., LLC
• Mark S. Ordan - Independent Director
◦ Chief Executive Officer, Quality Care Properties
• Eugene A. Pinover - Independent Director
◦ Partner and Chair of Real Estate Practice, DLA Piper
• Julie G. Richardson - Independent Director
◦ Former Partner and Managing Director, Providence Equity
Board of Directors Corporate Governance
• Opted-out of Maryland anti-takeover statutes
• Majority voting for uncontested director elections
• Stockholder rights plan limits
• Proxy access
• Clawback policy for the potential recoupment of officer
compensation
• 2015 Form 10-K filed with clean audit opinion and
remediation of all material weaknesses and 2016 Form 10-K
filed with clean audit opinion
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VEREIT Has a Best-in-Class Management Team
Glenn J. Rufrano
Chief Executive Officer
• Since assuming role of CEO on April 1, 2015, has reconstituted Board of
Directors, formalized new management team and implemented
business plan to guide the Company’s strategy
• Prior to VEREIT, was Chairman and CEO of O’Connor Capital Partners, a
real estate investment firm he co-founded in 1983
• From 2010 to 2013 was President and CEO of Cushman & Wakefield
• Previously held executive leadership roles at Centro Properties Group
and New Plan Excel Realty Trust
• Serves on Board of Ventas and previously served on Boards of General
Growth Properties and Trizec Properties
• Having joined VEREIT in May 2015, oversees the Company’s legal and
regulatory affairs
• Prior to joining VEREIT, served as EVP, General Counsel and the Chief
Compliance Officer for Revlon, the global cosmetics company, where she was
responsible for legal and regulatory affairs, served on senior operating
committee and oversaw corporate governance
• Previously served as SVP - Law for MacAndrews & Forbes, Inc., Assistant United
States Attorney for the Southern District of New York, and as an associate with
Stillman & Friedman P.C. and Fried, Frank, Harris, Shriver & Jacobson LLP
• Law degree from Columbia Law School and undergraduate degree from the
Wharton School, University of Pennsylvania
• As EVP and CFO, oversees the accounting, external reporting, financial
planning & analysis, treasury and IT functions at VEREIT, including support
for both the public and Cole REITs.
• Prior to joining VEREIT as CFO in October, 2015, served as EVP and CFO of
Cushman & Wakefield from 2012 to 2015
• Prior to Cushman, was CFO for EXOR, Inc., a leading European investment
company from 1991 to 2012, where he was involved in over 15 U.S.
acquisitions and divestitures ranging in size from $20mm to $700+mm
• Served on Board of Directors of Cushman & Wakefield
• As EVP and COO, is responsible for VEREIT’s asset management,
property management, construction management, underwriting,
credit analysis and leasing
• Also serves on VEREIT investment committee, which reviews each
asset to ensure alignment with the Company’s objectives
• Previously was founder of CapLease (NYSE:LSE), a net-lease REIT,
where he served as CEO from 2001-2014 and Chairman from
2007-2014
• As CEO and President of Cole Capital, provides strategic direction
and oversees all aspects of management including external and
internal sales, product development and due diligence, broker-
dealer relationship management, securities operations and capital
markets
• Prior to joining Cole, served as SVP and Director of National
Accounts for American Funds, where he was responsible for leading
business development, strategy and relationship management with
broker-dealers, as well as the global banking channel in the U.S.
• As EVP and CIO, oversees VEREIT’s real estate transaction activities
for single-tenant retail, office and industrial and anchored shopping
centers including acquisitions, sale-leaseback transactions, build-to-
suits and dispositions
• Previously served as President and CEO of Opus West Corporation
from 1993 to 2009, where he was responsible for design,
construction and development of more than 50 million square feet
of commercial real estate
• Served as VP, Real Estate Development for Koll Company prior to
Opus West
Michael J. Bartolotta
Executive Vice President and Chief Financial Officer
Lauren Goldberg
Executive Vice President, General Counsel and Secretary
Paul McDowell
Executive Vice President and Chief Operating Officer
Thomas W. Roberts
Executive Vice President and Chief Investment Officer
Bill Miller
Executive Vice President, Investment Management;
President and CEO of Cole Capital
COMPANY OVERVIEW
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þ April 2015 – Glenn Rufrano began as CEO
þ June 2015 – Appointed Deloitte & Touche LLP as VEREIT’s
independent registered public accountant
þ July 2015 – Changed name to VEREIT, Inc.
þ July 2015 – Moved to the NYSE and began trading under the
ticker VER
þ August 2015 – Board of Directors adopted several shareholder-
friendly Corporate Governance enhancements
þ August 2015 - Introduced Business Plan: A Foundation for
Growth
þ 2015 – Completed $1.4 billion of dispositions; Achieved $0.84
AFFO per diluted share; Reduced debt by $2.4 billion including
secured and unsecured debt; Created $1.8 billion of capacity on
revolving line of credit; Reduced Net Debt to Normalized
EBITDA from 7.5x to 7.0x
þ February 2016 – Announced that VEREIT remediated all material
weaknesses that existed as of December 31, 2014
þ May 2016 – Announced issuance of $1 billion of senior notes
and $300 million term loan, allowing the Company to later
refinance $1.3 billion of bonds coming due in February 2017,
staggering the debt repayment and improving the maturity
schedule
þ August 2016 – Completed offering of 69 million shares of
common stock; Upon closing, announced net proceeds from
the offering to be approximately $702.5 million
þ November 2016 – Received an investment grade rating of 'BBB-'
with a Stable outlook from Fitch Ratings
þ 2016 – Completed $1.14 billion of dispositions; Achieved $0.78
AFFO per diluted share; Reduced debt by $1.7 billion including
secured and unsecured debt; Created $2.3 billion of capacity
on revolving line of credit; Reduced Net Debt to Normalized
EBITDA from 7.0x to 5.7x
þ January 2017 – Announced Cole Capital® raised $487.2 million
of new capital during 2016, an increase of approximately 80%
over 2015
þ February 2017 – Announced substantial completion of the core
components of the 2015 business plan and, in certain areas,
exceeded expectations; Timely filing of VEREIT's Annual Report
on Form 10-K
þ April 2017 – Moody's and S&P upgraded the Company to
investment grade1
COMPANY OVERVIEW
Key Accomplishments
1) S&P had previously rated the Company's bonds investment grade.
Since April 2015, VEREIT successfully implemented its business plan, enhanced its
portfolio, de-levered its balance sheet and achieved investment-grade ratings
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Portfolio Metrics & Analysis
Q1 2017
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Key Portfolio Metrics
PORTFOLIO
As of 3/31/2017
Operating Properties 4,105
Rentable Square Feet (in millions) 93.0
Annualized Rental Income $1.2 Billion
Economic Occupancy Rate 98.4%
WALT (years) 9.6
Investment Grade 1 41.6%
Number of tenants 663
Number of industries 42
Number of states 2 49
Top 10 tenant concentration 29.5%
Gross Real Estate Investments $15.4 Billion
1) Investment-grade tenants are those with an S&P credit rating of BBB- or higher or a Moody's credit rating of Baa3 or higher. The ratings may reflect those assigned by S&P or Moody's to the lease
guarantor or the parent company, as applicable. 2) The Company’s properties are also located in Puerto Rico (3 properties) and Canada (1 property).
Retail: 39.4%
Restaurant: 23.0%
Industrial and
Distribution: 16.1%
Office: 21.5%
Portfolio Property Type
Lease Expiration (Annualized Rental Income Expiring as a % of Total Portfolio)
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
1.5%
3.0%
4.7%
4.0%
7.5% 7.4%
6.2%
9.2%
5.3%
7.4%
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Geographically Diverse Portfolio
PORTFOLIO
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Portfolio Diversification by Tenant
PORTFOLIO
1) Bold indicates investment grade. Ratings may reflect those of the
tenant, guarantor or a related parent company.
Tenant Group % ARI Public /Private Ratings1
Red Lobster 7.4% Private B-
Family Dollar 3.3% Public BB+
Walgreens 3.3% Public BBB
Dollar General 3.0% Public BBB
FedEx 2.8% Public BBB
CVS 2.7% Public BBB+
Albertson's 2.0% Private B+
BJ's Wholesale Club 1.7% Private B-
Citizens Bank 1.7% Public A-
AON 1.6% Public A-
Petsmart 1.5% Private B+
Goodyear 1.4% Public BB
L.A. Fitness 1.4% Private B+
Tractor Supply 1.4% Public NR
Amazon 1.2% Public AA-
Advance Auto Parts 1.0% Public BBB-
Home Depot 1.0% Public A
Lowe's 1.0% Public A-
General Service
Administration
1.0% Private AA+
Merrill Lynch 1.0% Private A+
Rite Aid 0.9% Public B
Bloomin' Brands 0.8% Public BB
Best Buy 0.8% Public BBB-
Northrop Grumman 0.8% Public BBB+
Academy Sports 0.8% Private B
Tenant Group % ARI Public /Private Ratings1
Sun Trust Bank 0.7% Public A-
Wal-Mart 0.7% Public AA
Border Holdings, LLC 0.7% Private NR
Stripes 0.7% Private NR
Winn-Dixie 0.7% Private NR
Encana Oil & Gas 0.7% Public BBB
Healthnow 0.7% Private BBB
Apple American Group, LLC 0.7% Private NR
Wendab Associates 0.6% Private NR
Talbots 0.6% Private B-
GMRI, Inc 0.6% Public BBB
Kohl's 0.6% Public BBB-
RSA Security 0.6% Private BB+
Rubbermaid 0.6% Public BBB-
Golden Corral 0.6% Private NR
General Mills 0.6% Public BBB+
TJ Maxx 0.5% Public A+
Hanesbrands 0.5% Public BB
DaVita Dialysis 0.5% Public BB
Exelis 0.5% Private BBB-
Rolls-Royce 0.5% Public NR
ConAgra Foods 0.5% Public BBB
Cigna 0.5% Public AA-
Bed Bath & Beyond 0.5% Public BBB+
Mattress Firm 0.5% Public NR
• VEREIT owns and actively manages a
diversified credit portfolio of net-lease real
estate assets primarily comprised of
single-tenant properties
• 50 tenants individually represent 0.5% or
greater of ARI, comprising 60.6% of the
total portfolio; The remaining 613 tenants
comprise 39.4% of the portfolio
• 27 of the 50 tenants are investment-grade
rated
• 32 of the 50 tenants are public companies
15 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
• Primarily single-tenant, freestanding retail properties with creditworthy tenants
• Main retail traffic thoroughfare
• Strong trade area demographics
• Top 5 MSAs (13.8%): Chicago, IL; Dallas, TX; Atlanta, GA; Austin, TX; Detroit, MI
Property Type Analysis: Retail
1) Includes 10 anchored shopping centers, representing 1.7% of ARI. 2) Occupancy costs are calculated as Contract Rental Revenue divided by property level sales for the year ended December 31, 2015. Property
level sales data was collected for 67.9% of retail and restaurant properties required to provide sales reports, representing 40.0% of retail and restaurant properties owned for the entirety of the calendar year
ended December 31, 2015 (percentages based on property count). Property level sales are based on sales reports provided by tenants of retail and restaurant properties. Data presented is for properties owned
by the Company and for which the Company received sales data for the calendar year 2015.
Retail Portfolio 1
Operating Properties 2,097
Rentable Square Feet (in thousands) 32,154
Economic Occupancy Rate 99.6%
Weighted Average Remaining Lease
Term (years) 9.6
Investment-Grade Tenants 46.8%
Flat leases 35.4%
NNN leases 66.1%
Annualized Rental Income 39.4%
PORTFOLIO
Family Dollar
Walgreens
Dollar General
CVS
Albertson's
Citizens Bank
L.A. Fitness
Tractor Supply
BJ's Wholesale Club
Advance Auto Parts
8.5%
8.4%
7.5%
6.1%
5.2%
4.3%
3.5%
3.5%
3.4%
2.7%
Tenant Diversification (% of Retail ARI)
Industry
2015
Occupancy
Cost 2
Target %
Discount 6.8% 6.0 - 8.0%
Grocery &
Supermarket 2.7% 2.0 - 4.0%
Home & Garden 2.1% 2.0 - 4.0%
Motor Vehicle 8.6% 8.0 - 10.0%
Pharmacy 5.3% 4.0 - 6.0%
Other 3.9% N/A
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Property Type Analysis: Retail
PORTFOLIO
Size, Diversity and Single Tenant Focus Protects Against Disruptors
VEREIT's strategy of well-positioned single tenant properties in a diversified portfolio - made
optimum by our size - helps protect against a variety of cyclical and secular disruptors. In today's
retail environment, one of the key disruptors is the evolution of e-commerce. Retailers who
embrace e-commerce and have the resources to implement omnichannel distribution are
proving successful. Fundamentals of retail should not be forgotten. Those who continue to
provide true retail value - merchandise, price and service - will also thrive.
The core retail merchandise groups within our portfolio are dominated by discount; pharmacy;
grocery; home and garden and convenience. A full listing is provided herein. Within each
category, our focus is to create a portfolio that can both service omnichannel distribution while
always considering the consumer experience.
Ultimate credit protection is a function of multi-layer diversification. The prior pages present
information such as geographies, weighted average lease term and tenant margin analysis. The
following breakdown provides a deeper look into the retail tenant diversification of the VEREIT
portfolio by merchandise category.
VEREIT's Single-Tenant Retail Advantages
• Dominated by off-price and necessity shopping
• Approximately 67% of retail revenue derived from public companies
• Credit tenants on long-term leases with substantial capital investment (46.8% investment grade)
• Generally, no use restrictions or co-tenancy issues
• Ability to target desired tenants and industries
Diversified Retail Portfolio
Industry Group % ARI
Retail - Discount 7.4%
Retail - Pharmacy 6.6%
Retail - Grocery & Supermarket 4.4%
Retail - Home & Garden 3.0%
Finance 3.0%
Retail - Convenience 2.5%
Retail - Motor Vehicle 1.9%
Retail - Warehouse Clubs 1.6%
Entertainment & Recreation 1.6%
Retail - Sporting Goods 1.3%
Retail - Medical Services 1.0%
Retail - Pet Supply 0.8%
Retail - Electronics & Appliances 0.8%
Retail - Department Stores 0.7%
Retail - Home Furnishings 0.7%
Rental 0.5%
Retail - Specialty (Other) 0.4%
Retail - Hobby, Books & Music 0.3%
Retail - Apparel & Jewelry 0.2%
Other Services 0.2%
All Other1 0.5%
Total 39.4%
1) Includes 11 industries that each represent 0.1% or less.
ARI reflects retail properties only and does not include restaurants, office and industrial
17 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Property Type Analysis: Retail
Category by Percent of Portfolio ARI
PORTFOLIO
Retail - Discount
Tenant % ARI
Investment
Grade
Family Dollar 3.3%
Dollar General 3.0% ü
Wal-Mart 0.7% ü
Ross 0.1% ü
Dollar Tree 0.1%
TJ Maxx <0.1% ü
Cost Plus <0.1% ü
Gabe's <0.1%
Big Lots <0.1% ü
Marshall's <0.1% ü
Shopko
Hometown <0.1%
Five Below <0.1%
Deals R Us <0.1%
Total 7.4%
Retail - Pharmacy
Tenant % ARI InvestmentGrade
Walgreens 3.3% ü
CVS 2.4% ü
Rite Aid 0.9%
Total 6.6%
Retail - Grocery & Supermarket
Tenant % ARI
Investment
Grade
Albertson's 2.0%
Kroger 0.4% ü
Giant Eagle 0.2%
Harps Grocery 0.2%
Dahl's 0.2%
Natural Grocers 0.1%
Koninklijke
Ahold 0.1% ü
Bi-Lo's Grocery 0.1%
Publix 0.1%
Stop & Shop 0.1% ü
Whole Foods 0.1% ü
Trader Joe's 0.1%
Food Lion 0.1% ü
Dominick's 0.1%
Family Fare
Supermarket 0.1%
Sprouts 0.1%
Glen's Market <0.1%
Price Rite <0.1%
Fresh Market <0.1%
Hy-Vee <0.1%
Harris Teeter <0.1% ü
Food 4 Less <0.1% ü
Apple Market <0.1%
Safeway Stores <0.1%
Total 4.4%
Retail - Home & Garden
Tenant % ARI
Investment
Grade
Tractor Supply 1.4%
Lowe's 1.0% ü
Home Depot 0.4% ü
Bed Bath &
Beyond 0.1% ü
Floor & Décor 0.1%
Pier 1 Imports <0.1%
Sherwin-
Williams <0.1% ü
Northern Tool &
Equipment <0.1%
Lumber
Liquidators <0.1%
Leslie's Pool &
Spa <0.1%
Total 3.0%
Finance
Tenant % ARI
Investment
Grade
Citizens Bank 1.7% ü
Sun Trust Bank 0.7% ü
US Bank 0.2% ü
PLS Check Cashers 0.2%
Sovereign Bank <0.1% ü
Bank of America <0.1% ü
Synovus Bank <0.1%
PNC Bank <0.1% ü
Community Bank <0.1%
Fifth Third Bank <0.1% ü
Key Bank <0.1% ü
First Bank <0.1%
Huntington
National Bank <0.1% ü
Region's Bank <0.1% ü
Wells Fargo <0.1% ü
Travis Credit
Union <0.1%
TCF National Bank <0.1% ü
Scottrade <0.1% ü
TitleMax of GA <0.1%
Cashland <0.1%
Edward Jones <0.1%
Chase Bank <0.1% ü
Accomplishments
Through People <0.1%
Total 3.0%
NOTE: Amounts may not total due to rounding.
ARI reflects retail properties only and does not include restaurants, office and industrial
18 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Property Type Analysis: Retail
Category by Percent of Portfolio ARI
PORTFOLIO
Retail - Convenience
Tenant % ARI
Investment
Grade
Stripes 0.7%
Thorntons Oil 0.4%
Kum & Go 0.4%
Pantry Gas &
Convenience 0.2%
RaceTrac 0.2%
SuperAmerica 0.1%
Irving Oil 0.1%
Pilot Flying J 0.1%
Circle K 0.1% ü
WaWa 0.1%
7-Eleven <0.1% ü
Susser Road
Ranger <0.1%
Sunoco <0.1% ü
MotoMart <0.1%
GetGo <0.1%
Total 2.5%
Retail - Motor Vehicle
Tenant % ARI
Investment
Grade
Advance Auto
Parts 1.0% ü
CarMax 0.3%
Lube Stop 0.1%
AutoZone 0.1% ü
O'Reilly Auto
Parts 0.1% ü
Americas's
PowerSports 0.1%
Tire Kingdom <0.1%
NTW / Big O
Tires <0.1%
National Tire &
Battery <0.1% ü
Bridgestone
Tire <0.1%
Tires Plus <0.1%
Jiffy Lube <0.1%
Big O Tires <0.1% ü
Total 1.9%
Retail - Warehouse Clubs
Tenant % ARI
Investment
Grade
BJ's Wholesale
Club 1.4%
Sam's Club 0.3% ü
Total 1.6%
Entertainment & Recreation
Tenant % ARI
Investment
Grade
L.A. Fitness 1.4%
24 Hour Fitness 0.1%
Gold's Gym 0.1%
Anytime Fitness <0.1%
Total 1.6%
Retail - Sporting Goods
Tenant % ARI
Investment
Grade
Academy
Sports 0.8%
Dick's Sporting
Goods 0.2%
West Marine 0.2%
Gander
Mountain 0.1%
iFit Golf <0.1%
Total 1.3%
Retail - Medical Services
Tenant % ARI
Investment
Grade
Fresenius
Medical Care 0.5% ü
DaVita Dialysis 0.3%
Physicians
Immediate Care 0.1%
St. Luke's
Urgent Care <0.1%
Lenscrafters <0.1%
Dental Dream <0.1%
Aspen Dental <0.1%
Smile Brands of
Tennessee <0.1%
Accelerated
Rehab <0.1%
Cascade
Chiropractic <0.1%
Advanced
Dental Implant
and Denture
Center <0.1%
Dr. Elie El-Hage,
D.D.S <0.1%
Total 1.0%
Retail - Pet Supply
Tenant % ARI
Investment
Grade
Petsmart 0.8%
Petco 0.1%
Total 0.8%
Retail - Electronics & Appliances
Tenant % ARI
Investment
Grade
Best Buy 0.5% ü
HH Gregg 0.2%
Conn's 0.1%
CompUSA <0.1%
Total 0.8%
Retail - Home Furnishings
Tenant % ARI
Investment
Grade
Mattress Firm 0.5%
Garden Ridge 0.1%
At Home 0.1%
Ashley
Furniture <0.1%
Sleep Train <0.1%
Kirklands <0.1%
Sleep America <0.1%
Total 0.7%
NOTE: Amounts may not total due to rounding.
ARI reflects retail properties only and does not include restaurants, office and industrial
19 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Property Type Analysis: Retail
Category by Percent of Portfolio ARI
PORTFOLIO
Rental
Tenant % ARI
Investment
Grade
Aaron Rents 0.4%
Vanguard Car
Rental 0.1% ü
Sunbelt Rentals <0.1%
Total 0.5%
Retail - Specialty (Other)
Tenant % ARI
Investment
Grade
Ulta Salon 0.1%
Toys R Us 0.1%
Coborn's Liquor
Store <0.1%
Babies R Us <0.1%
Ca$h Wi$e <0.1%
BevMo! <0.1%
The Vitamin
Shoppe <0.1%
GNC <0.1%
Sally Beauty
Supply <0.1%
Austin Custom
Winery <0.1%
Tinder Box <0.1%
Cigarettes
Cheaper <0.1%
Total 0.4%
Retail - Hobby, Books & Music
Tenant % ARI
Investment
Grade
Hobby Lobby 0.2%
Michael's <0.1%
Jo-Ann's <0.1%
Music & Arts
Center <0.1%
GameStop <0.1%
Total 0.3%
Retail - Apparel & Jewelry
Tenant % ARI
Investment
Grade
DSW 0.1%
Bob's Stores 0.1%
Charming
Charlie <0.1%
Rue 21 <0.1%
Shoe Carnival <0.1%
Justice <0.1%
Catherines <0.1%
Maurice's <0.1%
Men's
Wearhouse <0.1%
Total 0.2%
Other Services
Tenant % ARI
Investment
Grade
Goodyear 0.1%
Monro Muffler <0.1%
Massage Envy <0.1%
Portrait
Innovations <0.1%
Weight
Watchers <0.1%
4th Street
Laundromat <0.1%
Fantastic Sam's <0.1%
Tic Tac Nails <0.1%
Great Nails <0.1%
Nail Paradise <0.1%
MM's Nails <0.1%
Passion's Nail
and Spa <0.1%
Le Nails <0.1%
BP Nails <0.1%
Cuts By Us <0.1%
Cool Cuts 4
Kids <0.1%
Nail Care Salon <0.1%
All Cleaners <0.1%
Supercuts <0.1%
Total 0.2%
Retail - Department Stores
Tenant % ARI
Investment
Grade
Kohl's 0.6% ü
Beall's 0.1%
Total 0.7%
NOTE: Amounts may not total due to rounding.
ARI reflects retail properties only and does not include restaurants, office and industrial
20 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Property Type Analysis: Restaurants
1) Occupancy costs are calculated as Contract Rental Revenue divided by property level sales for the year ended December 31, 2015. Property level sales data was collected for 67.9% of retail and restaurant
properties required to provide sales reports, representing 40.0% of retail and restaurant properties owned for the entirety of the calendar year ended December 31, 2015 (percentages based on property count).
Property level sales are based on sales reports provided by tenants of retail and restaurant properties. Data presented is for properties owned by the Company and for which the Company received sales data
for the calendar year 2015.
Restaurant Portfolio
Operating Properties 1,754
Rentable Square Feet (in thousands) 8,583
Economic Occupancy Rate 94.8%
Weighted Average Remaining Lease
Term (years) 13.5
Investment-Grade Tenants 2.8%
Flat leases 7.8%
NNN leases 99.4%
Annualized Rental Income 23.0%
• Single-tenant quick service, casual and family dining properties
• Creditworthy tenants, including franchisors, operating strong national and regional brands
• Main retail traffic thoroughfare
• Strong trade area demographics
• Top 5 MSAs (13.6%): Atlanta, GA; Dallas, TX; Chicago, IL; Detroit, MI; Houston, TX
Red Lobster
Bloomin' Brands
Border Holdings, LLC
Apple American Group, LLC
Wendab Associates
GMRI, Inc
Golden Corral
Neighborhood Restaurant
Partners Florida, LLC
DineEquity Inc.
Arby's Restaurant Group, Inc.
32.0%
3.5%
3.1%
2.9%
2.8%
2.8%
2.6%
2.2%
2.1%
2.0%
PORTFOLIO
Industry
2015
Occupancy
Cost 1
Target %
Casual Dining 6.5% 6.75 - 8.0%
Quick Service 7.3% 7.5 - 8.5%
Tenant Diversification (% of Restaurant ARI)
21 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Property Type Analysis: Industrial & Distribution
Industrial & Distribution Portfolio
Operating Properties 150
Rentable Square Feet (in thousands) 37,918
Economic Occupancy Rate 98.9%
Weighted Average Remaining Lease Term (years) 8.4
Investment-Grade Tenants 56.6%
Flat leases 22.9%
NNN leases 51.4%
Annualized Rental Income 16.1%
• Property types include single-tenant distribution and warehouse facilities with
creditworthy tenants
• Mission-critical and strategic locations
• Close proximity to ports railways, major freeways and/or interstate highways
• Top 5 MSAs (24.4%): Jacksonville, FL; Philadelphia, PA; New York, NY; Columbia,
SC; Stockton, CA
FedEx
Goodyear
Amazon
Winn-Dixie
Rubbermaid
General Mills
Hanesbrands
TJ Maxx
Tiffany & Co.
Nestle Holdings
17.1%
8.5%
7.6%
4.4%
3.7%
3.6%
3.3%
3.1%
3.0%
2.9%
PORTFOLIO
Tenant Diversification (% of Industrial & Distribution ARI)
22 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Property Type Analysis: Office
Office Portfolio
Operating Properties 94
Rentable Square Feet (in thousands) 14,295
Economic Occupancy Rate 96.5%
Weighted Average Remaining Lease Term (years) 6.4
Investment-Grade Tenants 62.4%
Flat leases 9.4%
NNN leases 21.7%
Annualized Rental Income 21.5%
• Property types include primarily single-tenant corporate headquarters
and business operations with creditworthy tenants
• Strategic location for corporate operations
• Strong 10-mile demographics and local business environment
• Top 5 MSAs (39.5%): Chicago, IL; Dallas, TX; Boston, MA; Washington, DC;
New York, NY
AON
Merrill Lynch
General Service Administration
Northrop Grumman
Petsmart
Encana Oil & Gas
Healthnow
RSA Security
Exelis
Rolls-Royce
7.3%
4.5%
4.4%
3.7%
3.5%
3.2%
3.2%
2.8%
2.5%
2.4%
PORTFOLIO
Tenant Diversification (% of Office ARI)
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Key Financial Highlights
Q1 2017
24 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Enhanced Balance Sheet and Credit Metrics
Credit Metric Summary 3/31/17
Adjusted Debt Outstanding ($bn) 6.3
Net Debt to Normalized EBITDA Annualized 5.48x
Fixed Charge Coverage Ratio 2.87x
Interest Coverage Ratio 4.01x
Net Debt Leverage Ratio 39.0%
Unencumbered Asset Ratio 67.2%
Secured Debt Ratio 16.4%
Total Unencumbered Assets ($bn) 10.3
KEY FINANCIALS
25 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
53.6%
15.9%
14.2%
6.8%
6.3%
3.2%
Capital Structure Overview
KEY FINANCIALSShares and dollars in thousands, expect per share values
Q1-2017 Capitalization Capitalization Table
Wtd. Avg.
Maturity
(Years) Rate (1) March 31, 2017
Diluted Shares and Units Outstanding 1,001,135
Stock Price $ 8.49
Implied Equity Market Capitalization $ 8,499,636
Series F Perpetual Preferred (2) 6.70% $ 1,070,853
Mortgage notes payable (3) 4.6 4.90% $ 2,511,566
Secured Term Loan 0.8 5.81% 15,822
Total Secured Debt 4.6 4.91% $ 2,527,388
Unsecured Credit Facility (swapped to fixed) 1.2 3.25% $ 500,000
2018 Convertible Notes 1.3 3.00% 597,500
2019 Corporate Bonds 1.9 3.00% 750,000
2020 Convertible Notes 3.7 3.75% 402,500
2021 Corporate Bonds 4.2 4.13% 400,000
2024 Corporate Bonds 6.9 4.60% 500,000
2026 Corporate Bonds 9.2 4.88% 600,000
Total Unsecured Debt 4.0 3.75% $ 3,750,000
Total Adjusted Debt Outstanding 4.2 4.21% $ 6,277,388
Total Capitalization $ 15,847,877
Less: Cash and Cash Equivalents 285,586
Enterprise Value $ 15,562,291
Net Debt / Enterprise Value 38.5%
Net Debt / Normalized EBITDA Annualized 5.48x
Net Debt + Preferred / Normalized EBITDA Annualized 6.46x
Fixed Charge Coverage 2.87x
Liquidity (4) $ 2,585,586
1) Weighted-average interest rate for variable-rate debt represents the interest rate in effect as of March 31, 2017. 2)
Balance represents 42.8 million shares outstanding at March 31, 2017 multiplied by the liquidation preference of $25 per
share. 3) Omits two mortgage notes payable, each secured by an Excluded Property, with aggregate Debt Outstanding of
$41.8 million and a weighted average interest rate of 10.29%. 4) Liquidity represents cash and cash equivalents of $285.6
million and $2.3 billion available capacity on our revolving credit facility.
3/31/17
Common Equity 53.6%
Secured Debt 15.9%
Corporate Bonds 14.2%
Preferred Equity 6.8%
Convertible Notes 6.3%
Unsecured Term Loan 3.2%
Fixed Rate 88.8% 88.2%
Swapped to Fixed Rate 11.0% 11.6%
Variable Rate 0.2% 0.2%
26 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Mortgage notes payable (2) Unsecured credit facility Corporate bonds Convertible notes
Secured term loan
$1,500
$1,000
$500
$0
Remaining 2017 2018 (1) 2019 2020 2021 2022 2023 Thereafter
$319
$228
$978
$757
$1,792
$683
$301
$1,219
Debt Maturity Profile
Dollars in millions KEY FINANCIALS
• Weighted average debt term is 4.2 years
• Weighted average interest rate is 4.21%
1) One-year extension option on 6/30/2018 unsecured credit facility is available at the Company's election, subject to no existing default, an extension fee and other customary provisions. 2) Omits two
mortgage notes payable, each secured by an Excluded Property, with aggregate Debt Outstanding of $41.8 million and a weighted average interest rate of 10.29%.
35%
30%
25%
20%
15%
10%
5%
0%
Remaining 2017 2018 2019 2020 2021 2022 2023 Thereafter
4.8%
19.4%
15.6%
10.9% 12.1%
5.1% 3.6%
28.5%
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Highlights & Guidance
Q1 2017
28 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Company Achieved Investment Grade By All Three Major Rating Agencies
INVESTOR REVIEW
Q1 2017 Highlights
First Quarter 2017 Highlights
• Net Income of $14.8 million and Net Loss per diluted share of $(0.00)
• Achieved $0.19 AFFO per diluted share
• Completed $101.5 million of acquisitions and $199.2 million of dispositions
• Decreased Debt from $6.4 billion to $6.3 billion and Net Debt from $6.1 billion to $6.0 billion
• Reduced Net Debt to Normalized EBITDA from 5.7x to 5.5x
• Cole Capital® raised $66.7 million of new equity capital
Credit Rating Updates
• Moody’s upgraded the credit rating of VEREIT from ‘Ba1’ to an investment grade rating of ‘Baa3’
• S&P raised its corporate credit rating of VEREIT from ‘BB+’ to an investment grade rating of ‘BBB-‘, matching the bond rating
• Fitch continues with an investment grade rating of ‘BBB-‘
29 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
2017 Guidance
INVESTOR REVIEWConsolidated Adjusted Funds From Operations per Diluted Share (Unaudited)
Key Guidance Assumptions:
• Dispositions and acquisitions each totaling $450 million to $600 million at an average cash cap rate of 6.5% to 7.5%
• Real estate operations:
◦ Average occupancy of approximately 98.0%
◦ Same-store rental growth approximating 0.5%
• Cole Capital contribution of approximately $0.02 to $0.03 of AFFO per diluted share
◦ Capital raise of $400 million to $500 million, excluding DRIP
◦ Cole acquisitions of $800 million to $1.0 billion
• The Company also expects to target balance sheet net debt to normalized EBITDA between 5.7x and 6.0x
2017 Per Share
Low High
Basic and diluted net loss per share attributable to common stockholders1 $ (0.08) $ (0.05)
Gain on disposition of real estate assets, net2 (0.01) (0.01)
Depreciation and amortization of real estate assets 0.71 0.71
Impairment of real estate2 0.01 0.01
FFO attributable to common stockholders and limited partners per diluted share 0.63 0.66
Adjustments3 0.07 0.07
AFFO attributable to common stockholders and limited partners per diluted share $ 0.70 $ 0.73
Notes: The estimated net loss per basic and diluted share is not a projection and is provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange
Commission.
1) Includes impact of dividends to be paid to preferred shareholders and excludes the effect of non-controlling interests. Includes the impacts of the gain on sale and impairment
of real estate for the three months ended March 31, 2017.
2) Reflects actual amounts for the three months ended March 31, 2017.
3) Includes (i) non-routine items such as acquisition-related costs, litigation and other non-routine costs, gains or losses on sale of investment securities and mortgage note
receivables, legal settlements and insurance recoveries not in the ordinary course of business, (ii) certain non-cash items such as impairments of intangible assets and goodwill,
straight-line rental revenue, unrealized gains or losses on derivatives, amortization of intangible assets, deferred financing costs and above and below market lease amortization
as well as equity-based compensation and (iii) the AFFO impact of Excluded Properties and related non-recourse mortgage notes.
30 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
800.606.3610
Phoenix
2325 East Camelback Road
Suite 1100
Phoenix, AZ 85016
602.778.6000
New York City
5 Bryant Park
23rd Floor
New York, NY 10018
212.413.9100
Investor Relations
877.405.2653
InvestorRelations@VEREIT.com
Contact Us
CONTACT
Registered Stockholders
Computershare (Transfer Agent)
P.O. Box 43078
Providence, RI 02940
By overnight delivery
Computershare
250 Royal Street
Canton, MA 02021
Telephone inquiries
TFN 855.866.0787
(US, CA, Puerto Rico)
TN 781.575.3100
(non-US)
Email
web.queries@computershare.com
Follow Us
LinkedIn
www.linkedin.com/company/vereit
Twitter
twitter.com/vereitinc
YouTube
https://www.youtube.com/channel/
UCUNu7AUOolITuwpNhr2JEGg
Flickr
https://www.flickr.com/
photos/143027056@N07/
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Definitions & Reconciliations
Q1 2017
32 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Definitions
INVESTOR REVIEW
Annualized Rental Income is rental revenue under our leases on Operating Properties
on a straight-line basis, which includes the effect of rent escalations and any tenant
concessions, such as free rent, and excludes any bad debt allowances and any contingent
rent, such as percentage rent. Management uses Annualized Rental Income as a basis for
tenant, industry and geographic concentrations and other metrics within the portfolio.
Annualized Rental Income is not indicative of future performance.
Debt Outstanding and Adjusted Debt Outstanding are non-GAAP measures that
represent the Company's outstanding principal debt balance, excluding certain GAAP
adjustments, such as premiums and discounts, financing and issuance costs, and related
accumulated amortization. Beginning in 2017, Adjusted Debt Outstanding omits the
outstanding principal balance of mortgage notes secured by Excluded Properties. We
believe that the presentation of Debt Outstanding and Adjusted Debt Outstanding,
which show our contractual debt obligations, provides useful information to investors to
assess our overall liquidity, financial flexibility, capital structure and leverage. Debt
Outstanding and Adjusted Debt Outstanding should not be considered as alternatives to
the Company's consolidated debt balance as determined in accordance with GAAP or any
other GAAP financial measures and should only be considered together with, and as a
supplement to, the Company's financial information prepared in accordance with GAAP.
Economic Occupancy Rate equals the sum of square feet leased (including month-to-
month agreements) divided by Rentable Square Feet.
EBITDA and Normalized EBITDA as disclosed represents EBITDA, or earnings before
interest, taxes, depreciation and amortization, modified to exclude non-routine items
such as acquisition related expenses, merger and other non-routine transactions costs,
gains or losses on sale of investments, legal settlements and insurance recoveries not in
the ordinary course of business and extinguishment of debt cost. We also exclude certain
non-cash items such as impairments of intangible assets, straight-line rental revenue,
unrealized gains or losses on derivatives, write-off of program development costs, and
amortization of intangibles, deferred financing costs, above-market lease assets and
below-market lease liabilities.
Beginning in 2017, Normalized EBITDA omits the Normalized EBITDA impact of
Excluded Properties. Management believes that excluding these costs from EBITDA
provides investors with supplemental performance information that is consistent
with the performance models and analysis used by management, and provides
investors a view of the performance of our portfolio over time. The Company
believes that Normalized EBITDA is a useful non-GAAP supplemental measure to
investors and analysts for assessing the performance of the Company's business
segments.
Therefore, Normalized EBITDA should not be considered as an alternative to net
income, as computed in accordance with GAAP, or as an indicator of the Company's
financial performance. The Company uses Normalized EBITDA as one measure of its
operating performance when formulating corporate goals and evaluating the
effectiveness of the Company's strategies. Normalized EBITDA may not be
comparable to similarly titled measures of other companies.
Excluded Properties are properties owned by the Company for which as of the
reporting date, (i) the related mortgage loan is in default, and (ii) management has
made a decision to transfer the properties to the lender in connection with settling
the mortgage note obligation.
Fixed Charge Coverage Ratio is the sum of (i) Interest Expense, excluding non-cash
amortization, (ii) secured debt principal amortization and (iii) dividends attributable
to preferred shares divided by Normalized EBITDA. Management believes that Fixed
Charge Coverage Ratio is a useful supplemental measure of our ability to satisfy fixed
financing obligations.
33 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Definitions
INVESTOR REVIEW
Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO"): 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 supplemental performance measure known as FFO,
which we believe to be an appropriate supplemental performance measure to reflect the
operating performance of a REIT. FFO is not equivalent to our net income or loss as
determined under GAAP.
NAREIT defines FFO as net income or loss computed in accordance with GAAP, excluding
gains or losses from disposition of property, depreciation and amortization of real estate
assets and impairment write-downs on real estate including the pro rata share of
adjustments for unconsolidated partnerships and joint ventures. We calculated FFO in
accordance with NAREIT's definition described above.
In addition to FFO, we use AFFO as a non-GAAP supplemental financial performance
measure to evaluate the operating performance of the Company. AFFO, as defined by the
Company, excludes from FFO non-routine items such as acquisition related expenses,
litigation and other non-routine costs, gains or losses on sale of investment securities or
mortgage notes receivable and legal settlements and insurance recoveries not in the
ordinary course of business. We also exclude certain non-cash items such as impairments
of goodwill and intangible assets, straight-line rental revenue, unrealized gains or losses
on derivatives, reserves for loan loss, gains or losses on the extinguishment or forgiveness
of debt, non-current portion of the tax benefit or expense, equity-based compensation
and amortization of intangible assets, deferred financing costs, above-market lease assets
and below-market lease liabilities.
Effective January 1, 2017, we determined to omit the impact of the Excluded Properties
and related non-recourse mortgage notes from AFFO. Management believes that
excluding these costs from FFO provides investors with supplemental performance
information that is consistent with the performance models and analysis used by
management, and provides investors a view of the performance of our portfolio over
time. AFFO allows for a comparison of the performance of our operations with other
publicly-traded REITs, as AFFO, or an equivalent measure, is routinely reported by
publicly-traded REITs, and we believe often used by analysts and investors for comparison
purposes.
For all of these reasons, we believe FFO and AFFO, in addition to net income (loss), as
defined by GAAP, are helpful supplemental performance measures and useful in
understanding the various ways in which our management evaluates the performance of
the Company over time. However, not all REITs calculate FFO and AFFO the same way, so
comparisons with other REITs may not be meaningful. FFO and AFFO should not be
considered as alternatives to net income (loss) and are not intended to be used as a
liquidity measure indicative of cash flow available to fund our cash needs. Neither the
SEC, NAREIT, nor any other regulatory body has evaluated the acceptability of the
exclusions used to adjust FFO in order to calculate AFFO and its use as a non-GAAP
financial performance measure.
Gross Real Estate Investments represent total gross real estate and related assets of
Operating Properties, including net investments in unconsolidated entities, investment in
direct financing leases, investment securities backed by real estate and loans held for
investment, net of gross intangible lease liabilities.
34 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Definitions
INVESTOR REVIEW
Interest Expense, excluding non-cash amortization is a non-GAAP measure that
represents interest expense incurred on the outstanding principal balance of our debt.
This measure excludes (i) the amortization of deferred financing costs, premiums and
discounts, which is included in interest expense in accordance with GAAP, and (ii)the
impact of Excluded Properties and related non-recourse mortgage notes. We believe that
the presentation of Interest Expense, excluding non-cash amortization, which shows the
interest expense on our contractual debt obligations, provides useful information to
investors to assess our overall solvency and financial flexibility. Interest Expense,
excluding non-cash amortization should not be considered as an alternative to the
Company's interest expense as determined in accordance with GAAP or any other GAAP
financial measures and should only be considered together with and as a supplement to
the Company's financial information prepared in accordance with GAAP.
Interest Coverage Ratio equals Normalized EBITDA divided by Interest Expense,
excluding non-cash amortization. Management believes that Interest Coverage Ratio is a
useful supplemental measure of our ability to service our debt obligations.
Investment-Grade Tenants are those with a Standard & Poor’s credit rating of BBB- or
higher or a Moody’s credit rating of Baa3 or higher. The ratings may reflect those
assigned by Standard & Poor’s or Moody’s to the lease guarantor or the parent company,
as applicable.
Net Debt is a non-GAAP measure used to show the Company's Adjusted Debt
Outstanding, less all cash and cash equivalents. We believe that the presentation of Net
Debt provides useful information to investors because our management reviews Net
Debt as part of its management of our overall liquidity, financial flexibility, capital
structure and leverage.
Net Debt Leverage Ratio equals Net Debt divided by Gross Real Estate Investments. We
believe that the presentation of Net Debt Leverage Ratio provides useful information to
investors because our management reviews Net Debt Leverage Ratio as part of its
management of our overall liquidity, financial flexibility, capital structure and leverage.
Net Debt to Normalized EBITDA Annualized equals Net Debt divided by the current
quarter Normalized EBITDA multiplied by four. We believe that the presentation of Net Debt
to Normalized EBITDA Annualized provides useful information to investors because our
management reviews Net Debt to Normalized EBITDA Annualized as part of its management
of our overall liquidity, financial flexibility, capital structure and leverage.
Normalized EBITDA Annualized equals Normalized EBITDA, for the respective quarter,
multiplied by four.
Operating Properties refers to all properties owned by the Company and beginning in
2017, it omits Excluded Properties.
Rentable Square Feet is leasable square feet of Operating Properties.
Secured Debt Ratio equals secured Adjusted Debt Outstanding divided by Adjusted
Debt Outstanding.
Unencumbered Asset Ratio equals unencumbered Gross Real Estate Investments
divided by Gross Real Estate Investments. Management believes that Unencumbered
Asset Ratio is a useful supplemental measure of our overall liquidity and leverage.
Weighted Average Remaining Lease Term is the number of years remaining on each
respective lease, weighted based on Annualized Rental Income of Operating Properties.
35 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Reconciliations
(in thousands, except share and per share data)
INVESTOR REVIEW
Net income $ 14,790
Adjustments:
Interest expense 73,743
Depreciation and amortization 183,152
Provision for income taxes 4,254
Proportionate share of adjustments for unconsolidated entities 1,246
EBITDA $ 277,185
Gain on disposition of real estate assets, including joint ventures, net (12,481)
Impairments 6,725
Acquisition-related expenses 617
Litigation and other non-routine costs, net of insurance recoveries 12,875
Gain on derivative instruments, net (824)
Amortization of above-market lease assets and deferred lease
incentives, net of amortization of below-market lease liabilities 1,305
Loss on extinguishment and forgiveness of debt, net 70
Net direct financing lease adjustments 621
Straight-line rent, net of bad debt expense related to straight-line rent (12,797)
Other amortization and non-cash charges 861
Proportionate share of adjustments for unconsolidated entities (48)
Adjustment for Excluded Properties (764)
Normalized EBITDA $ 273,345
Net income $ 14,790
Dividends on non-convertible preferred stock (17,973)
Gain on real estate assets and interest in joint venture, net (12,481)
Depreciation and amortization of real estate assets 178,295
Impairment of real estate 6,725
Proportionate share of adjustments for unconsolidated entities 709
FFO attributable to common stockholders and limited partners $ 170,065
Acquisition-related expenses 617
Litigation and other non-routine costs, net of insurance recoveries 12,875
Gain on derivative instruments, net (824)
Amortization of premiums and discounts on debt and investments, net (847)
Amortization of above-market lease assets and deferred lease incentives,
net of amortization of below-market lease liabilities 1,305
Net direct financing lease adjustments 621
Amortization and write-off of deferred financing costs 6,347
Amortization of management contracts 4,146
Deferred tax expense 1,649
Loss on extinguishment and forgiveness of debt, net 70
Straight-line rent, net of bad debt expense related to straight-line rent (12,797)
Equity-based compensation expense 3,111
Other amortization and non-cash charges 634
Proportionate share of adjustments for unconsolidated entities 55
Adjustment for Excluded Properties 294
AFFO attributable to common stockholders and limited partners $ 187,321
Weighted-average shares outstanding - basic 973,849,610
Limited Partner OP Units and effect of dilutive securities 24,402,139
Weighted-average shares outstanding - diluted 998,251,749
FFO attributable to common stockholders and limited partners per diluted
share $ 0.170
AFFO attributable to common stockholders and limited partners per diluted
share $ 0.188
EBITDA and Normalized EBITDA Three Months Ended 3/31/17 FFO and AFFO Three Months Ended 3/31/2017
36 www.VEREIT.com | NYSE: VER | © 2017 VEREIT, Inc.
Reconciliations
(dollars in thousands)
INVESTOR REVIEW
Interest Expense, excluding non-cash amortization $ 68,123
Normalized EBITDA 273,345
Interest Coverage Ratio 4.01x
Interest Expense, excluding non-cash amortization $ 68,123
Secured debt principal amortization 8,993
Dividends attributable to preferred shares 17,973
Total fixed charges 95,089
Normalized EBITDA 273,345
Fixed Charge Coverage Ratio 2.87x
Mortgage notes payable and other debt, net $ 2,586,917
Corporate bonds, net 2,227,307
Convertible debt, net 976,031
Credit facility, net 497,148
Total debt - as reported 6,287,403
Adjustments:
Deferred financing costs, net 51,936
Net premiums (20,131)
Debt Outstanding $ 6,319,208
Debt Outstanding - Excluded Properties (41,820)
Adjusted Debt Outstanding 6,277,388
Interest expense - as reported $ (73,743)
Adjustments:
Amortization of deferred financing and issuance costs (6,443)
Amortization of net premiums 1,881
Interest Expense, excluding non-cash amortization -
Excluded Properties (1,058)
Interest Expense, excluding non-cash amortization $ (68,123)
Debt
Three Months Ended 3/31/17
3/31/17
Interest
Adjusted Debt Outstanding $ 6,277,388
Less: cash and cash equivalents 285,586
Net Debt 5,991,802
Normalized EBITDA annualized 1,093,380
Net Debt to Normalized EBITDA annualized ratio 5.48x
Net Debt $ 5,991,802
Gross Real Estate Investments 15,367,137
Net Debt Leverage Ratio 39.0%
Unencumbered Gross Real Estate Investments $ 10,319,871
Gross Real Estate Investments 15,367,137
Unencumbered Asset Ratio 67.2%
Secured Debt Outstanding $ 2,527,388
Gross Real Estate Investments 15,367,137
Secured Debt Ratio 16.4%
Financial and Operations
Statistics and Ratios
Three Months Ended 3/31/17