Exhibit

EX-99.2 3 vereitexhibit992quarte.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2




		Q2 2019 SUPPLEMENTAL INFORMATION



VEREIT Supplemental Information
June 30, 2019



Section	Page

Company Overview	5
Financial Summary	7
Financial and Operations Statistics and Ratios	8
Key Balance Sheet Metrics and Capital Structure	9
Balance Sheets	10
Statements of Operations	11
Funds From Operations (FFO)	12
Adjusted Funds From Operations (AFFO)	13
EBITDA, EBITDAre and Normalized EBITDA	14
Net Operating Income	15
Same Store Contract Rental Revenue	16
Debt and Preferred Equity Summary	17
Credit Facility and Corporate Bond Covenants	19
Acquisitions and Dispositions	20
Diversification Statistics	21
Top 10 Concentrations	22
Tenants Comprising Over 1% of Annualized Rental Income	24
Tenant Industry Diversification	25
Property Geographic Diversification	26
Lease Expirations	28
Lease Summary	32
Property Type Diversification	34
Unconsolidated Joint Venture Investment Summary	39
Definitions	40

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 2




		Q2 2019 SUPPLEMENTAL INFORMATION

About the Data

This data and other information described herein are as of and for the three months ended June 30, 2019, unless otherwise indicated. Certain balances have been reclassified to conform with the current period's presentations, including the operating expense reimbursements line item which has been combined into rental revenue for all periods presented. 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, 2018 and Quarterly Reports on Form 10-Q for the periods ended June 30, 2019, March 31, 2019, September 30, 2018, and June 30, 2018.

In the second quarter of 2019, the Company sold six consolidated properties to two newly-formed unconsolidated joint ventures (the "Industrial Partnership"), over which the Company exercises significant influence, but not control. Under GAAP, the Company accounts for its investment in the Industrial Partnership and one previously existing joint venture under the equity method of accounting and does not consolidate the financial results and position of the underlying joint ventures. The Company determined that effective April 1, 2019, certain non-GAAP measures and operating metrics should include the Company's pro rata share of such measures and metrics from the Company's unconsolidated joint ventures, based upon the Company's legal ownership percentage, which may, at times, not equal the Company's economic interest because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. Management believes that including the Company's pro rata share of certain non-GAAP measures and operating metrics is helpful in understanding the financial condition and performance and operating metrics of the Company. The Company did not update data presented for prior periods as the impact on prior period non-GAAP measures and operating metrics was immaterial. The Company does not adjust non-GAAP measures and operating metrics for the partner's pro rata share of the Company's consolidated joint venture as the impact is immaterial.

Prior to the fourth quarter of 2017, the Company operated through two business segments, the real estate investment segment and the investment management segment, Cole Capital. On February 1, 2018, the Company completed the sale of Cole Capital. Substantially all of the Cole Capital segment is presented as discontinued operations and the Company's remaining financial results are reported as a single segment for all periods presented. The Company's continuing operations represent primarily those of the real estate investment segment.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 3




		Q2 2019 SUPPLEMENTAL INFORMATION

Forward-Looking Statements

Information set forth herein contains “forward-looking statements” (within the meaning of the federal securities laws, 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 and projections regarding future events and plans, 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,” "may," "will," "should," "could," "continues," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available to us and are subject to a number of known and unknown risks, uncertainties and other factors, 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 or implied by 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; VEREIT’s ability to meet its 2019 guidance; VEREIT’s ability to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all; risks associated with tenant, geographic and industry concentrations with respect to VEREIT's properties; risks accompanying the management of its Industrial Partnership; the impact of impairment charges in respect of certain of VEREIT's properties, goodwill and intangible assets and other assets; unexpected costs or liabilities that may arise from potential dispositions, including related to limited partnership, tenant-in-common and Delaware statutory trust real estate programs and VEREIT’s management with respect to such programs; competition in the acquisition and disposition of properties and in the leasing of its properties; the inability to acquire, dispose of, or lease properties on advantageous terms; risks associated with bankruptcies or insolvencies of tenants, from tenant defaults generally or from the unpredictability of the business plans and financial condition of VEREIT's tenants; risks associated with pending government investigations and litigations related to VEREIT's previously disclosed audit committee investigation, including the expense of such investigations and litigation and any additional potential payments upon resolution; risks associated with VEREIT’s substantial indebtedness, including that such indebtedness may affect VEREIT's ability to pay dividends and the terms and restrictions within the agreements governing VEREIT's indebtedness may restrict its borrowing and operating flexibility; 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.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 4




		Q2 2019 SUPPLEMENTAL INFORMATION

Company Overview

(unaudited)

VEREIT is a real estate company incorporated in Maryland on December 2, 2010, which has elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes. On September 6, 2011, the Company completed its initial public offering.

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. The Company targets properties that are strategically located and essential to the business operations of the tenant, as well as retail properties that offer necessity- and value-oriented products or services. At June 30, 2019, approximately 39.6% of the Company's Annualized Rental Income was earned from Investment-Grade Tenants, Economic Occupancy Rate was 99.0% and the Weighted Average Remaining Lease Term was 8.6 years.

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.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 5




		Q2 2019 SUPPLEMENTAL INFORMATION

Company Overview (cont.)



Senior Management		Board of Directors

Glenn J. Rufrano, Chief Executive Officer		Hugh R. Frater, Non-Executive Chairman

Michael J. Bartolotta, Executive Vice President and Chief Financial Officer		David B. Henry, Independent Director

Lauren Goldberg, Executive Vice President, General Counsel and Secretary		Mary Hogan Preusse, Independent Director

Paul H. McDowell, Executive Vice President and Chief Operating Officer		Richard J. Lieb, Independent Director

Thomas W. Roberts, Executive Vice President and Chief Investment Officer		Mark S. Ordan, Independent Director

Gavin B. Brandon, Senior Vice President and Chief Accounting Officer		Eugene A. Pinover, Independent Director

		Julie G. Richardson, Independent Director

		Glenn J. Rufrano, Chief Executive Officer

Corporate Offices and Contact Information



2325 E. Camelback Road, 9th Floor		5 Bryant Park, 23rd Floor
Phoenix, AZ 85016		New York, NY 10018
800-606-3610		212-413-9100
www.VEREIT.com

Trading Symbols: VER, VER PF

Stock Exchange Listing: New York Stock Exchange

Transfer Agent

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

800-736-3001

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 6




		Q2 2019 SUPPLEMENTAL INFORMATION

Quarterly Financial Summary

(unaudited, dollars in thousands, except share and per share amounts)

The following table summarizes the Company's quarterly financial results and portfolio metrics. Data presented represents continuing operations.



	Three Months Ended
Financial Results	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Rental revenue	$	312,043		$	316,843		$	313,263		$	313,866		$	315,664
Income (loss) from continuing operations⁽¹⁾	$	292,284		$	70,971		$	27,872		$	(73,942	)	$	(74,691	)
Basic and diluted income (loss) from continuing operations per share attributable to common stockholders and limited partners⁽¹⁾	$	0.27		$	0.05		$	0.01		$	(0.09	)	$	(0.09	)
Normalized EBITDA	$	260,345		$	263,936		$	257,486		$	261,084		$	259,387
FFO attributable to common stockholders and limited partners from continuing operations⁽¹⁾	$	179,038		$	190,304		$	154,606		$	38,055		$	77,019
FFO attributable to common stockholders and limited partners from continuing operations per diluted share⁽¹⁾	$	0.179		$	0.192		$	0.156		$	0.038		$	0.078
AFFO attributable to common stockholders and limited partners	$	177,099		$	178,403		$	172,511		$	178,529		$	178,794
AFFO attributable to common stockholders and limited partners per diluted share	$	0.177		$	0.180		$	0.174		$	0.180		$	0.180
Dividends declared per common share	$	0.1375		$	0.1375		$	0.1375		$	0.1375		$	0.1375
Weighted-average shares outstanding - diluted	999,777,735			993,298,314			992,337,959			991,924,017			992,100,138

Portfolio Metrics
Operating Properties	3,950			3,980			3,994			4,021			4,033
Rentable Square Feet (in thousands)	90,631			94,742			94,953			93,856			94,592
Economic Occupancy Rate	99.0		%	98.9		%	98.8		%	99.1		%	98.8		%
Weighted Average Remaining Lease Term (years)	8.6			8.7			8.9			8.9			9.1
Investment-Grade Tenants⁽²⁾	39.6		%	41.3		%	41.9		%	42.7		%	42.7		%

___________________________________

(1)

During the three months ended March 31, 2019, the Company signed a settlement and release agreement with certain insurance carriers and received $48.4 million of insurance recoveries, offset by $12.2 million of accrued litigation settlements, which were paid during the three months ended June 30, 2019. During the three months ended December 31, 2018, the Company accrued $15.7 million of litigation settlement costs, which were paid during the three months ended March 31, 2019. During the three months ended September 30, 2018, the Company accrued $127.5 million of litigation settlement costs, which were paid during the three months ended December 31, 2018. During the three months ended June 30, 2018, the Company expensed and paid a litigation settlement of $90.0 million.


(2)	The weighted-average credit rating of our investment-grade tenants was BBB+ as of June 30, 2019.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 7




		Q2 2019 SUPPLEMENTAL INFORMATION

Financial and Operations Statistics and Ratios

(unaudited, dollars in thousands)



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Interest Coverage Ratio
Interest Expense, excluding non-cash amortization⁽¹⁾	$	67,815		$	69,036		$	68,314		$	66,445		$	65,202
Normalized EBITDA⁽²⁾	260,345			263,936			257,486			261,084			259,387
Interest Coverage Ratio	3.84x			3.82x			3.77x			3.93x			3.98x

Fixed Charge Coverage Ratio
Interest Expense, excluding non-cash amortization⁽¹⁾	$	67,815		$	69,036		$	68,314		$	66,445		$	65,202
Secured debt principal amortization	2,256			2,430			2,424			3,007			2,457
Dividends attributable to preferred shares	17,973			17,973			17,973			17,973			17,973
Total fixed charges	88,044			89,439			88,711			87,425			85,632
Normalized EBITDA⁽²⁾	260,345			263,936			257,486			261,084			259,387
Fixed Charge Coverage Ratio	2.96		x	2.95x			2.90x			2.99x			3.03x

	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Net Debt Ratios
Net Debt⁽³⁾	$	5,514,805		$	6,049,418		$	6,091,874		$	5,949,843		$	6,049,159
Normalized EBITDA annualized	1,041,380			1,055,744			1,029,944			1,044,336			1,037,548
Net Debt to Normalized EBITDA annualized ratio	5.30		x	5.73		x	5.91		x	5.70		x	5.83		x

Net Debt⁽³⁾	$	5,514,805		$	6,049,418		$	6,091,874		$	5,949,843		$	6,049,159
Gross Real Estate Investments⁽³⁾	14,950,309			15,411,364			15,411,026			15,385,925			15,477,098
Net Debt Leverage Ratio	36.9		%	39.3		%	39.5		%	38.7		%	39.1		%

Unencumbered Assets/Real Estate Assets
Unencumbered Gross Real Estate Investments	$	11,361,522		$	11,577,487		$	11,574,315		$	11,507,837		$	11,376,971
Gross Real Estate Investments⁽³⁾	14,950,309			15,411,364			15,411,026			15,385,925			15,477,098
Unencumbered Asset Ratio	76.0		%	75.1		%	75.1		%	74.8		%	73.5		%

___________________________________


(1)	Refer to the Statements of Operations section for interest expense calculated in accordance with GAAP and to the Definitions section for the required reconciliation to the most directly comparable GAAP financial measure.


(2)	Refer to the Statements of Operations section for net income calculated in accordance with GAAP and to the EBITDA, EBITDAre and Normalized EBITDA section for the required reconciliation to the most directly comparable GAAP financial measure.


(3)	Refer to the Balance Sheets section for total debt and real estate investments, at cost calculated in accordance with GAAP and to the Definitions section for the required reconciliation to the most directly comparable GAAP financial measure.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 8




		Q2 2019 SUPPLEMENTAL INFORMATION

Key Balance Sheet Metrics and Capital Structure

(unaudited, dollars and shares in thousands, except per share amounts)



		Common equity	57.0%

		Corporate bonds	16.8%

		Mortgage notes payable	10.9%

		Preferred equity	6.8%

		Credit facility term loan	5.7%

		Convertible notes	2.5%

		Unconsolidated joint ventures' pro rata share	0.3%
		Unconsolidated joint ventures' pro rata share	0.3%

Fixed vs. Variable Rate Debt



Fixed	84.1	%
Swapped to Fixed	15.7	%
Variable	0.2	%



VEREIT Capitalization Table
	Wtd. Avg. Maturity (Years)	Rate⁽¹⁾		June 30, 2019
Diluted shares outstanding				999,621
Stock price				$	9.01
Implied Equity Market Capitalization				$	9,006,585

Series F Perpetual Preferred ⁽²⁾		6.70	%	$	1,073,025

Mortgage notes payable ⁽³⁾	3.2	5.05	%	1,722,885
Unconsolidated joint ventures' pro rata share	4.9	3.57	%	53,850
Total secured debt	3.2	5.01	%	$	1,776,735

Credit facility term loan	3.9	3.84	%	900,000
2020 convertible notes	1.5	3.75	%	402,500
2021 corporate bonds	1.9	4.13	%	400,000
2024 corporate bonds	4.6	4.60	%	500,000
2025 corporate bonds	6.3	4.63	%	550,000
2026 corporate bonds	6.9	4.88	%	600,000
2027 corporate bonds	8.1	3.95	%	600,000
Total unsecured debt	5.0	4.24	%	$	3,952,500

Total Adjusted Principal Outstanding	4.4	4.48	%	$	5,729,235

Total Capitalization				$	15,808,845
Less: Cash and cash equivalents				211,510
Less: Pro rata share of unconsolidated joint ventures' cash and cash equivalents				2,920
Enterprise Value				$	15,594,415

Net Debt/Enterprise Value				35.4		%
Net Debt/Normalized EBITDA Annualized				5.30		x
Net Debt + Preferred⁽²⁾/Normalized EBITDA Annualized				6.33		x
Fixed Charge Coverage Ratio				2.96		x
Liquidity ⁽⁴⁾				$	2,207,610

___________________________________

(1)Weighted average interest rate for variable rate debt represents the interest rate in effect as of June 30, 2019.

(2)Balance represents 42.9 million shares of Series F Preferred Stock (and 42.9 million corresponding general partner Series F Preferred Units) and 49,766 limited partner Series F Preferred Units outstanding at June 30, 2019, multiplied by the liquidation preference of $25 per share.

(3)Omits one mortgage note payable secured by an Excluded Property, with Principal Outstanding of $19.5 million and a default interest rate of 15.0%. On July 2, 2019, a foreclosure sale of the Excluded Property occurred to settle the related mortgage note obligation.

(4)Liquidity represents cash and cash equivalents of $211.5 million, $2.0 billion available capacity on our revolving credit facility. Available capacity on our revolving credit facility is reduced by letters of credit outstanding of $3.9 million at June 30, 2019.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 9




		Q2 2019 SUPPLEMENTAL INFORMATION

Balance Sheets

(unaudited, in thousands)



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Assets
Real estate investments, at cost:
Land	$	2,763,348		$	2,824,666		$	2,843,212		$	2,847,393		$	2,859,265
Buildings, fixtures and improvements	10,352,928			10,741,995			10,749,228			10,652,578			10,714,456
Intangible lease assets	1,927,699			2,003,825			2,012,399			2,019,718			2,024,014
Total real estate investments, at cost	15,043,975			15,570,486			15,604,839			15,519,689			15,597,735
Less: accumulated depreciation and amortization	3,488,838			3,544,252			3,436,772			3,323,990			3,206,336
Total real estate investments, net	11,555,137			12,026,234			12,168,067			12,195,699			12,391,399
Operating lease right-of-use assets	221,798			224,859			—			—			—
Investment in unconsolidated entities	68,633			35,790			35,289			34,293			33,972
Cash and cash equivalents	211,510			12,788			30,758			25,264			18,434
Restricted cash	20,692			18,517			22,905			27,449			27,078
Rent and tenant receivables and other assets, net	343,788			361,641			366,092			412,053			423,067
Goodwill	1,337,773			1,337,773			1,337,773			1,337,773			1,337,773
Real estate assets held for sale, net	22,553			36,022			2,609			24,349			29,884
Total assets	$	13,781,884		$	14,053,624		$	13,963,493		$	14,056,880		$	14,261,607


Liabilities and Equity
Mortgage notes payable, net	$	1,745,331		$	1,918,826		$	1,922,657		$	1,936,586		$	2,031,171
Corporate bonds, net	2,621,130			2,619,956			3,368,609			2,825,541			2,824,176
Convertible debt, net	396,766			395,823			394,883			393,961			989,901
Credit facility, net	895,033			1,089,725			401,773			793,000			195,000
Below-market lease liabilities, net	152,654			166,708			173,479			179,192			187,352
Accounts payable and accrued expenses	127,799			141,126			145,611			269,150			141,746
Deferred rent and other liabilities	77,713			70,220			69,714			51,663			66,123
Distributions payable	187,359			190,246			186,623			183,913			180,734
Operating lease liabilities	225,972			228,120			—			—			—
Total liabilities	6,429,757			6,820,750			6,663,349			6,633,006			6,616,203

Series F preferred stock	429			429			428			428			428
Common stock	9,734			9,716			9,675			9,674			9,674
Additional paid-in capital	12,655,018			12,645,148			12,615,472			12,612,407			12,609,145
Accumulated other comprehensive loss	(28,026		)	(12,202		)	(1,280		)	(1,031		)	(4,290		)
Accumulated deficit	(5,416,759		)	(5,550,574		)	(5,467,236		)	(5,343,368		)	(5,120,240		)
Total stockholders' equity	7,220,396			7,092,517			7,157,059			7,278,110			7,494,717
Non-controlling interests	131,731			140,357			143,085			145,764			150,687
Total equity	7,352,127			7,232,874			7,300,144			7,423,874			7,645,404
Total liabilities and equity	$	13,781,884		$	14,053,624		$	13,963,493		$	14,056,880		$	14,261,607

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

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		Q2 2019 SUPPLEMENTAL INFORMATION

Statements of Operations

(unaudited, in thousands, except per share data)



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Rental revenue	$	312,043		$	316,843		$	313,263		$	313,866		$	315,664
Operating expenses:
Acquisition-related	985			985			1,136			810			909
Litigation and non-routine costs, net	(3,769		)	(21,492		)	23,541			138,595			107,087
Property operating	32,503			32,378			32,567			31,893			31,436
General and administrative	16,416			14,846			17,220			15,186			16,287
Depreciation and amortization	118,022			136,555			153,050			157,181			164,235
Impairments	8,308			11,988			18,565			18,382			11,664
Restructuring	290			9,076			—			—			—
Total operating expenses	172,755			184,336			246,079			362,047			331,618
Other income (expense):
Interest expense	(69,803		)	(71,254		)	(70,832		)	(69,310		)	(70,320		)
(Loss) gain on extinguishment and forgiveness of debt, net	(1,472		)	—			21			90			5,249
Other income (loss), net	3,175			(402		)	7,008			(947		)	1,320
Equity in income of unconsolidated entities	505			500			225			252			327
Gain on disposition of real estate and held for sale assets, net	221,755			10,831			25,880			45,295			5,821
Total other income (expenses), net	154,160			(60,325		)	(37,698		)	(24,620		)	(57,603		)
Income (loss) before taxes	293,448			72,182			29,486			(72,801		)	(73,557		)
Provision for income taxes from continuing operations	(1,164		)	(1,211		)	(1,614		)	(1,141		)	(1,134		)
Income (loss) from continuing operations	292,284			70,971			27,872			(73,942		)	(74,691		)
(Loss) income from discontinued operations, net of tax	—			—			(30		)	—			224
Net income (loss)	292,284			70,971			27,842			(73,942		)	(74,467		)
Net (income) loss attributable to non-controlling interests	(6,626		)	(1,667		)	(624		)	1,825			1,797
Net income (loss) attributable to the General Partner	$	285,658		$	69,304		$	27,218		$	(72,117	)	$	(72,670	)

Basic and diluted net income (loss) per share from continuing operations attributable to common stockholders and limited partners	$	0.27		$	0.05		$	0.01		$	(0.09	)	$	(0.09	)
Basic and diluted net (loss) income per share from discontinued operations attributable to common stockholders and limited partners	—			—			(0.00		)	—			0.00
Basic and diluted net income (loss) per share attributable to common stockholders and limited partners	$	0.27		$	0.05		$	0.01		$	(0.09	)	$	(0.09	)

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 11




		Q2 2019 SUPPLEMENTAL INFORMATION

Funds From Operations (FFO)

(unaudited, in thousands, except share and per share data)



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Net income (loss)	$	292,284		$	70,971		$	27,842		$	(73,942	)	$	(74,467	)
Dividends on non-convertible preferred stock	(17,973		)	(17,973		)	(17,973		)	(17,973		)	(17,973		)
Gain on disposition of real estate assets, net	(221,762		)	(10,831		)	(25,951		)	(45,226		)	(5,821		)
Depreciation and amortization of real estate assets	117,616			135,861			151,837			156,527			163,551
Impairment of real estate	8,308			11,988			18,565			18,382			11,664
Proportionate share of adjustments for unconsolidated entities	565			288			256			287			289
FFO attributable to common stockholders and limited partners	$	179,038		$	190,304		$	154,576		$	38,055		$	77,243
FFO attributable to common stockholders and limited partners from continuing operations	179,038			190,304			154,606			38,055			77,019
FFO attributable to common stockholders and limited partners from discontinued operations	—			—			(30		)	—			224

Weighted-average shares outstanding - basic	973,723,139			968,460,296			967,817,245			967,798,401			968,192,162
Limited Partner OP Units and effect of dilutive securities⁽¹⁾	26,054,596			24,838,018			24,520,714			24,125,616			23,907,976
Weighted-average shares outstanding - diluted⁽²⁾	999,777,735			993,298,314			992,337,959			991,924,017			992,100,138

FFO attributable to common stockholders and limited partners per diluted share⁽³⁾	$	0.179		$	0.192		$	0.156		$	0.038		$	0.078
FFO attributable to common stockholders and limited partners from continuing operations per diluted share⁽³⁾	0.179			0.192			0.156			0.038			0.078
FFO attributable to common stockholders and limited partners from discontinued operations per diluted share⁽³⁾	—			—			(0.000		)	—			0.000


(1)	Dilutive securities include unvested restricted shares of Common Stock, unvested restricted stock units and stock options.


(2)	Weighted-average shares for all periods presented exclude the effect of the convertible debt as the Company would expect to settle the debt in cash and any shares underlying restricted stock units that are not issuable based on the Company’s level of achievement of certain performance targets through the respective reporting period.


(3)	Refer to the Statements of Operations section for basic and diluted net income (loss) per share attributable to common stockholders and limited partners.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 12




		Q2 2019 SUPPLEMENTAL INFORMATION

Adjusted Funds From Operations (AFFO)
(unaudited, in thousands, except share and per share data)



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
FFO attributable to common stockholders and limited partners	$	179,038		$	190,304		$	154,576		$	38,055		$	77,243

Acquisition-related expenses	985			985			1,136			810			909
Litigation and non-routine costs, net	(3,769		)	(21,492		)	23,541			138,595			107,087
Loss on disposition of discontinued operations	—			—			30			—			(224		)
Payments received on fully reserved loans	—			—			(4,792		)	—			—
(Gain) loss on investments	(5		)	470			(1,790		)	3,336			—
Loss (gain) on derivative instruments, net	24			34			92			(69		)	(105		)
Amortization of premiums and discounts on debt and investments, net	(1,392		)	(1,264		)	(1,154		)	(1,123		)	(603		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	611			731			945			1,058			688
Net direct financing lease adjustments	410			409			498			483			503
Amortization and write-off of deferred financing costs	3,346			3,494			3,715			3,926			5,650
Loss (gain) on extinguishment and forgiveness of debt, net	1,472			—			(21		)	(90		)	(5,249		)
Straight-line rent, net of bad debt expense related to straight-line rent⁽¹⁾	(8,043		)	(7,412		)	(8,341		)	(8,720		)	(11,402		)
Equity-based compensation	3,706			2,687			2,924			3,003			3,716
Restructuring expenses	290			9,076			—			—			—
Other adjustments, net	617			569			1,092			(726		)	566
Proportionate share of adjustments for unconsolidated entities	(196		)	(188		)	60			(9		)	(27		)
Adjustment for Excluded Properties	5			—			—			—			42
AFFO attributable to common stockholders and limited partners	$	177,099		$	178,403		$	172,511		$	178,529		$	178,794

Weighted-average shares outstanding - basic	973,723,139			968,460,296			967,817,245			967,798,401			968,192,162
Limited Partner OP Units and effect of dilutive securities ⁽²⁾	26,054,596			24,838,018			24,520,714			24,125,616			23,907,976
Weighted-average shares outstanding - diluted ⁽³⁾	999,777,735			993,298,314			992,337,959			991,924,017			992,100,138

AFFO attributable to common stockholders and limited partners per diluted share⁽⁴⁾	$	0.177		$	0.180		$	0.174		$	0.180		$	0.180


(1)	Upon adoption of ASC 842 in Q1 2019, the Company recognizes all changes in the collectability assessment for an operating lease as an adjustment to rental revenue and does not record bad debt expense for uncollectible accounts.


(2)	Dilutive securities include unvested restricted shares of Common Stock, unvested restricted stock units and stock options.


(3)	Weighted-average shares for all periods presented exclude the effect of the convertible debt as the Company would expect to settle the debt in cash and any shares underlying restricted stock units that are not issuable based on the Company’s level of achievement of certain performance targets through the respective reporting period.


(4)	Refer to the Statements of Operations section for basic and diluted net income (loss) per share attributable to common stockholders and limited partners.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 13




		Q2 2019 SUPPLEMENTAL INFORMATION

EBITDA, EBITDAre and Normalized EBITDA

(unaudited, in thousands)



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Net income (loss)	$	292,284		$	70,971		$	27,842		$	(73,942	)	$	(74,467	)
Adjustments:
Interest expense	69,803			71,254			70,832			69,310			70,320
Depreciation and amortization	118,022			136,555			153,050			157,181			164,235
Provision for income taxes	1,164			1,211			1,614			1,141			1,134
Proportionate share of adjustments for unconsolidated entities	738			288			254			286			289
EBITDA	$	482,011		$	280,279		$	253,592		$	153,976		$	161,511
Gain on disposition of real estate assets, net	(221,762		)	(10,831		)	(25,951		)	(45,226		)	(5,821		)
Impairment of real estate	8,308			11,988			18,565			18,382			11,664
EBITDAre	$	268,557		$	281,436		$	246,206		$	127,132		$	167,354
Loss on disposition of discontinued operations	—			—			30			—			(224		)
Payments received on fully reserved loans	—			—			(4,792		)	—			—
Acquisition-related expenses	985			985			1,136			810			909
Litigation and non-routine costs, net	(3,769		)	(21,492		)	23,541			138,595			107,087
(Gain) loss on investments	(5		)	470			(1,790		)	3,336			—
Loss (gain) on derivative instruments, net	24			34			92			(69		)	(105		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	611			731			945			1,058			688
Loss (gain) on extinguishment and forgiveness of debt, net	1,472			—			(21		)	(90		)	(5,249		)
Net direct financing lease adjustments	410			409			498			483			503
Straight-line rent, net of bad debt expense related to straight-line rent⁽¹⁾	(8,043		)	(7,412		)	(8,341		)	(8,720		)	(11,402		)
Restructuring expenses	290			9,076			—			—			—
Other adjustments, net	214			(113		)	(78		)	(1,442		)	(142		)
Proportionate share of adjustments for unconsolidated entities	(198		)	(188		)	60			(9		)	(27		)
Adjustment for Excluded Properties	(203		)	—			—			—			(5		)
Normalized EBITDA	$	260,345		$	263,936		$	257,486		$	261,084		$	259,387


(1)	Upon adoption of ASC 842 in Q1 2019, the Company recognizes all changes in the collectability assessment for an operating lease as an adjustment to rental revenue and does not record bad debt expense for uncollectible accounts.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 14




		Q2 2019 SUPPLEMENTAL INFORMATION

Net Operating Income

(unaudited, dollars in thousands)

NOI and Cash NOI



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Rental revenue - as reported⁽¹⁾	$	312,043		$	316,843		$	313,263		$	313,866		$	315,664
Property operating expense - as reported	(32,503		)	(32,378		)	(32,567		)	(31,893		)	(31,436		)
NOI	279,540			284,465			280,696			281,973			284,228
Adjustments:
Straight-line rent, net of bad debt expense related to straight-line rent⁽²⁾	(8,043		)	(7,412		)	(8,341		)	(8,720		)	(11,402		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	611			731			945			1,058			688
Net direct financing lease adjustments	410			409			498			483			503
Unconsolidated joint ventures' pro rata share	1,176			—			—			—			—
Adjustment for Excluded Properties	(203		)	—			—			—			22
Cash NOI	$	273,491		$	278,193		$	273,798		$	274,794		$	274,039

___________________________________


(1)	Rental revenue includes percentage rent of $1.2 million, $1.3 million, $1.4 million, $1.2 million and $1.4 million for the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018, respectively.


(2)	Upon adoption of ASC 842 in Q1 2019, the Company recognizes all changes in the collectability assessment for an operating lease as an adjustment to rental revenue and does not record bad debt expense for uncollectible accounts.

Normalized Cash NOI



	Three Months Ended
	June 30, 2019
Cash NOI	$	273,491
Adjustments for intra-quarter acquisitions and dispositions⁽¹⁾	(5,233		)
Normalized Cash NOI	$	268,258

___________________________________

(1)

The adjustment eliminates Cash NOI for properties acquired and unconsolidated joint ventures formed during the three months ended June 30, 2019 and replaces Cash NOI for the partial period with an amount estimated to be equivalent to Cash NOI for the full period. The adjustment eliminates Cash NOI for properties disposed of, including those sold to unconsolidated joint ventures, and for properties that met the criteria to be Excluded Properties during the three months ended June 30, 2019.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 15




		Q2 2019 SUPPLEMENTAL INFORMATION

Same Store Contract Rental Revenue

(unaudited, dollars in thousands)

The Company reviews the stabilized operating results from properties that we refer to as "same store." In determining the same store property pool, we include Operating Properties and properties owned by unconsolidated joint ventures that were owned for the entirety of both the current and prior reporting periods, except for development or redevelopment properties. The following tables show the Company's same store portfolio statistics, which for the three months ended June 30, 2019 included 3,873⁽¹⁾ Operating Properties, with 85.5 million aggregate square feet, acquired prior to April 1, 2018 and owned through June 30, 2019 and the pro rata share of Contract Rental Revenue from properties owned by unconsolidated joint ventures.



	Three Months Ended June 30,						Increase/(Decrease)
	2019			2018			$ Change			% Change
Contract Rental Revenue	$	261,887		$	259,332		$	2,555		1.0	%
Economic Occupancy Rate	98.9		%	99.0		%	(0.1		)%	N/A



		Contract Rental Revenue
	Number of	Three Months Ended June 30,				Increase/(Decrease)
	Properties	2019		2018		$ Change			% Change
Retail	2,052	$	112,757	$	113,514	$	(757	)	(0.7	)%
Restaurant	1,593	56,571		55,936		635			1.1	%
Industrial	141	40,848		40,551		297			0.7	%
Office	79	51,654		49,269		2,385			4.8	%
Other⁽²⁾	8	57		62		(5		)	(8.1	)%
Total	3,873	$	261,887	$	259,332	$	2,555		1.0	%

___________________________________


(1)	Development and expansion properties are included in the same store population if the placed in service date was prior to April 1, 2018.


(2)	Other properties include billboards, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 16




		Q2 2019 SUPPLEMENTAL INFORMATION

Adjusted Principal Outstanding and Preferred Equity Summary

(unaudited, dollars in thousands)



Principal Payments Due	Total		2019		2020		2021		2022		2023		2024		2025		Thereafter
Mortgage notes payable⁽¹⁾	$	1,722,885	$	18,510	$	264,823	$	352,381	$	290,854	$	125,667	$	663,686	$	1,078	$	5,886
Credit facility	900,000		—		—		—		—		900,000		—		—		—
Corporate bonds	2,650,000		—		—		400,000		—		—		500,000		550,000		1,200,000
Convertible notes	402,500		—		402,500		—		—		—		—		—		—
Unconsolidated joint ventures' pro rata share	53,850		—		—		—		—		—		53,850		—		—
Total Adjusted Principal Outstanding	$	5,729,235	$	18,510	$	667,323	$	752,381	$	290,854	$	1,025,667	$	1,217,536	$	551,078	$	1,205,886



Debt Type	Percentage of Adjusted Principal Outstanding		Weighted-Average Interest Rate		Weighted-Average Years to Maturity
Mortgage notes payable ⁽¹⁾	30.1	%	5.05	%	3.2
Unsecured credit facility	15.7	%	3.84	%	3.9
Corporate bonds	46.3	%	4.45	%	5.9
Convertible notes	7.0	%	3.75	%	1.5
Unconsolidated joint ventures' pro rata share	0.9	%	3.57	%	4.9
Total	100.0	%	4.48	%	4.4



Debt Type	Percentage of Adjusted Principal Outstanding		Weighted-Average Interest Rate		Weighted-Average Years to Maturity
Total unsecured debt	69.0	%	4.24	%	5.0
Total secured debt	31.0	%	5.01	%	3.2
Total	100.0	%	4.48	%	4.4

Total fixed-rate debt⁽²⁾	99.8	%	4.47	%	4.4
Total variable-rate debt	0.2	%	5.63	%	0.1
Total	100.0	%	4.48	%	4.4



Preferred Equity	Balance⁽³⁾		Percent of Total Preferred Equity		Dividend Rate
Series F preferred stock	$	1,073,025	100.0	%	6.7	%

___________________________________


(1)	Omits one mortgage note payable secured by an Excluded Property, with Principal Outstanding of $19.5 million and a default interest rate of 15.0%. A foreclosure sale of the Excluded Property to settle the related mortgage note obligation occurred during the three months ended September 30, 2019.


(2)	Includes $900.0 million of variable rate debt effectively fixed through the use of interest rate swap agreements. Debt payment obligations in future periods are based on the effective interest rates fixed under the agreements.


(3)	Balance represents 42.9 million shares of Series F Preferred Stock (and 42.9 million corresponding general partner Series F Preferred Units) and 49,766 limited partner Series F Preferred Units outstanding at June 30, 2019, multiplied by the liquidation preference of $25 per share.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 17




		Q2 2019 SUPPLEMENTAL INFORMATION

Adjusted Principal Outstanding and Preferred Equity Summary (cont.)

(unaudited, dollars in millions)

___________________________________


(1)	Omits one mortgage note payable secured by an Excluded Property, with Principal Outstanding of $19.5 million and a default interest rate of 15.0%. A foreclosure sale of the Excluded Property to settle the related mortgage note obligation occurred during the three months ended September 30, 2019.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 18




		Q2 2019 SUPPLEMENTAL INFORMATION

Credit Facility and Corporate Bond Covenants

(unaudited)

The following is a summary of key financial covenants for the Company's unsecured credit facility and corporate bonds, as defined and calculated per the terms of the facility's credit agreement and the bonds' governing documents, respectively. These calculations, which are not based on GAAP measurements, are presented to investors to show that the Company is in compliance with the financial covenants and are not measures of our liquidity or performance. As of June 30, 2019, the Company believes it is in compliance with these covenants based on the covenant limits and calculations in place at that time.



Unsecured Credit Facility Key Covenants	Required	June 30, 2019
Ratio of total indebtedness to total asset value	≤ 60%	35.7%
Ratio of adjusted EBITDA to fixed charges	≥ 1.5x	2.93x
Ratio of secured indebtedness to total asset value	≤ 45%	10.2%
Ratio of unsecured indebtedness to unencumbered asset value	≤ 60%	32.2%
Ratio of unencumbered adjusted NOI to unsecured interest expense	≥ 1.75x	4.52x



Corporate Bond Key Covenants	Required	June 30, 2019
Limitation on incurrence of total debt	≤ 65%	36.7%
Limitation on incurrence of secured debt	≤ 40%	11.3%
Debt service coverage	≥ 1.5x	4.02x
Maintenance of total unencumbered assets	≥ 150%	298.4%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 19




		Q2 2019 SUPPLEMENTAL INFORMATION

Acquisitions and Dispositions

(unaudited, square feet and dollars in thousands)

Acquisitions

The following table summarizes the Company's property acquisition activity during the three months ended June 30, 2019.



Property Type	Number of Properties	Square Feet	Weighted Average Lease Term (Years)⁽¹⁾	Weighted Average Cash Cap Rate		Purchase Price⁽²⁾
Retail	24	537	18.3	7.3	%	$	99,377
Industrial	1	246	15.0	7.5	%	19,350
Total acquisitions⁽³⁾	25	783	17.8	7.3	%	$	118,727

Dispositions

The following table summarizes the Company's disposition activity and the related gains/losses during the three months ended June 30, 2019.



Real Estate	Number of Properties	Square Feet	Weighted Average Lease Term (Years)⁽⁴⁾	Weighted Average Cash Cap Rate⁽⁵⁾		Sale Price⁽⁶⁾		Gain (Loss)
Retail	8	369	8.3	6.9	%	$	76,496	$	19,677
Red Lobster - GGC Participation⁽⁷⁾	17	120	19.8	7.6	%	53,515		5,125
Office	2	532	0.9	9.0	%	174,550		65,946
Industrial Partnership⁽⁸⁾	6	3,809	10.5	6.0	%	326,012		128,725
Other restaurants	6	24	11.7	7.1	%	13,929		1,988
Vacant and other ⁽⁹⁾	14	143	N/A	N/A		13,845		1,083
Total real estate dispositions	53	4,997	8.4	6.5	%	$	658,347	$	222,544
Held for sale assets								(789		)
Total gain on disposition of real estate, net								$	221,755

___________________________________


(1)	Represents the remaining lease term from the date of acquisition.


(2)	Excludes acquisition-related expenses capitalized.


(3)	During the three months ended June 30, 2019, the Company invested $8.3 million in one build-to-suit project. As of June 30, 2019, build-to-suit programs included one property with an investment to date of $15.8 million, excluding acquisition-related expenses and interest capitalized, and a remaining estimated investment of $11.9 million.


(4)	Represents the remaining lease term from the date of sale.


(5)	Excludes certain properties' cash cap rates considered not meaningful due to factors such as physical and economic vacancy or short remaining lease terms. Of the $658.3 million of dispositions, $493.2 million was used in the total weighted average cash cap rate calculation of 6.5%.


(6)	Excludes certain credits received at closing.


(7)	The Red Lobster properties were sold under an agreement with the tenant, under which the tenant received a portion of the sales proceeds. The sales price and cash cap rate presented are based on our proceeds after making the participation payment to the tenant. The cash cap rate on the gross sales price of $62.4 million was 6.5%.


(8)	The Company sold six consolidated properties to two newly-formed joint ventures in which the Company owns a 20% equity interest, for an aggregate gross sale price of $407.5 million. The sale price represents 80% of the gross sale price.


(9)	Represents six vacant restaurant properties, including one relinquished to the ground lessor upon expiration of the ground lease for no proceeds, and eight vacant retail properties. Gain (loss) amounts also include partial condemnations or easements related to certain properties and post-closing adjustments.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 20




		Q2 2019 SUPPLEMENTAL INFORMATION

Diversification Statistics: Real Estate Portfolio

(unaudited, percentages based on portfolio Annualized Rental Income)

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________



Statistics (square feet in thousands)

Operating Properties	3,950
Rentable Square Feet	90,631
Economic Occupancy Rate	99.0	%
Weighted Average Remaining Lease Term	8.6
Investment-Grade Tenants	39.6	%
Flat leases	20.1	%
NNN leases	63.2	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 21




		Q2 2019 SUPPLEMENTAL INFORMATION

Top 10 Concentrations: Real Estate Portfolio

(unaudited, square feet and dollars in thousands)



Tenant Concentration	Number of Leases	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio		Investment Rating
Red Lobster	25	1,636	1.8	%	$	57,047	5.1	%	B-
Family Dollar	122	3,306	3.6	%	37,090		3.3	%	BBB-
Walgreens	107	1,517	1.7	%	36,813		3.3	%	BBB
Dollar General	409	3,783	4.2	%	34,890		3.1	%	BBB
CVS	93	1,328	1.5	%	29,927		2.7	%	BBB
FedEx	43	3,073	3.4	%	29,187		2.6	%	BBB
LA Fitness	25	1,087	1.2	%	20,856		1.9	%	B+
BJ's Wholesale Club	3	2,223	2.5	%	20,228		1.8	%	B+
Albertson's	26	1,536	1.7	%	18,628		1.7	%	B+
PetSmart	14	906	1.0	%	18,410		1.6	%	B-
Total	867	20,395	22.6	%	$	303,076	27.1	%



Tenant Industry Concentration	Number of Leases	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Restaurants - Casual Dining	315	4,006	4.4	%	$	139,740	12.5	%
Manufacturing	52	16,255	17.9	%	102,860		9.2	%
Restaurants - Quick Service	812	3,256	3.6	%	98,628		8.8	%
Retail - Discount	571	9,467	10.4	%	90,594		8.1	%
Retail - Pharmacy	219	3,289	3.6	%	74,633		6.7	%
Retail - Home & Garden	112	8,360	9.2	%	61,704		5.5	%
Retail - Grocery & Supermarket	77	4,906	5.4	%	53,423		4.8	%
Finance	218	2,219	2.4	%	48,321		4.3	%
Retail - Motor Vehicle	181	6,034	6.7	%	43,851		3.9	%
Professional Services	48	3,218	3.6	%	40,928		3.7	%
Total	2,605	61,010	67.2	%	$	754,682	67.5	%



Geographic Concentration	Number of Properties	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Texas	546	10,557	11.6	%	$	141,451	12.7	%
Florida	252	4,413	4.9	%	66,055		5.9	%
Ohio	285	8,412	9.3	%	65,690		5.9	%
Illinois	155	4,754	5.2	%	63,579		5.7	%
Georgia	178	3,987	4.4	%	44,833		4.0	%
Pennsylvania	136	3,908	4.3	%	42,495		3.8	%
California	64	3,400	3.8	%	40,673		3.6	%
Indiana	129	4,001	4.4	%	36,416		3.3	%
Michigan	175	2,094	2.3	%	35,767		3.2	%
North Carolina	151	3,284	3.6	%	35,708		3.2	%
Total	2,071	48,810	53.8	%	$	572,667	51.3	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 22




		Q2 2019 SUPPLEMENTAL INFORMATION

Top 10 Concentrations: Real Estate Portfolio
(unaudited, square feet and dollars in thousands)



Metropolitan Statistical Area (MSA) Concentration	Number of Properties	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Chicago, IL	98	3,965	4.4	%	$	52,718	4.7	%
Dallas, TX	111	3,464	3.8	%	48,204		4.3	%
Atlanta, GA	81	2,932	3.2	%	29,419		2.6	%
Houston, TX	88	2,429	2.7	%	24,832		2.2	%
Phoenix, AZ	49	1,341	1.5	%	24,798		2.2	%
New York, NY	24	1,100	1.2	%	24,353		2.2	%
Boston, MA	26	1,810	2.0	%	23,985		2.1	%
Philadelphia, PA	42	1,159	1.3	%	20,657		1.9	%
Cincinnati, OH	40	2,234	2.5	%	17,452		1.6	%
Indianapolis, IN	41	1,721	1.9	%	17,437		1.6	%
Total	600	22,155	24.5	%	$	283,855	25.4	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 23




		Q2 2019 SUPPLEMENTAL INFORMATION

Tenants Comprising Over 1% of Annualized Rental Income

(unaudited, square feet and dollars in thousands)



Tenant	Number of Leases	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio		Investment Rating
Red Lobster	25	1,636	1.8	%	$	57,047	5.1	%	B-
Family Dollar	122	3,306	3.6	%	37,090		3.3	%	BBB-
Walgreens	107	1,517	1.7	%	36,813		3.3	%	BBB
Dollar General	409	3,783	4.2	%	34,890		3.1	%	BBB
CVS	93	1,328	1.5	%	29,927		2.7	%	BBB
FedEx	43	3,073	3.4	%	29,187		2.6	%	BBB
LA Fitness	25	1,087	1.2	%	20,856		1.9	%	B+
BJ's Wholesale Club	3	2,223	2.5	%	20,228		1.8	%	B+
Albertson's	26	1,536	1.7	%	18,628		1.7	%	B+
PetSmart	14	906	1.0	%	18,410		1.6	%	B-
Goodyear	7	4,728	5.2	%	17,417		1.6	%	BB
Tractor Supply	61	1,274	1.4	%	16,528		1.5	%	NR
General Service Administration	14	705	0.8	%	15,747		1.4	%	AA+
Citizens Bank	122	649	0.7	%	14,365		1.3	%	A-
At Home	5	1,406	1.6	%	12,112		1.1	%	B+
Advance Auto Parts	104	716	0.8	%	11,868		1.1	%	BBB-
Lowe's	14	1,751	1.9	%	11,442		1.0	%	BBB+
Total	1,194	31,624	35.0	%	$	402,555	36.1	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 24




		Q2 2019 SUPPLEMENTAL INFORMATION

Diversification: Tenant Industry

(unaudited, square feet and dollars in thousands)



Industry	Number of Leases	Leased Square Feet	Leased Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Administration & Support Services	3	425	0.5	%	$	3,960	0.4	%
Agricultural	2	138	0.2	%	1,245		0.1	%
Education	5	219	0.2	%	2,155		0.2	%
Entertainment & Recreation	34	1,417	1.6	%	29,348		2.6	%
Finance	218	2,219	2.5	%	48,321		4.3	%
Government & Public Services	21	931	1.0	%	18,659		1.7	%
Healthcare	11	1,063	1.2	%	16,145		1.5	%
Information & Communication	8	509	0.6	%	7,305		0.7	%
Insurance	12	1,308	1.4	%	25,755		2.3	%
Logistics	46	3,746	4.1	%	34,292		3.1	%
Manufacturing	52	16,255	17.9	%	102,860		9.2	%
Mining & Natural Resources	4	412	0.5	%	6,605		0.6	%
Other Services	12	476	0.5	%	3,248		0.3	%
Professional Services	48	3,218	3.6	%	40,928		3.7	%
Rental	10	708	0.8	%	6,835		0.6	%
Restaurants - Casual Dining	315	4,006	4.4	%	139,740		12.5	%
Restaurants - Quick Service	812	3,256	3.6	%	98,628		8.8	%
Retail - Apparel & Jewelry	14	1,340	1.5	%	15,478		1.4	%
Retail - Department Stores	12	1,021	1.1	%	8,224		0.7	%
Retail - Discount	571	9,467	10.4	%	90,594		8.1	%
Retail - Electronics & Appliances	18	1,566	1.7	%	10,655		1.0	%
Retail - Gas & Convenience	127	641	0.7	%	31,225		2.8	%
Retail - Grocery & Supermarket	77	4,906	5.4	%	53,423		4.8	%
Retail - Hobby, Books & Music	17	2,105	2.3	%	13,333		1.2	%
Retail - Home & Garden	112	8,360	9.2	%	61,704		5.5	%
Retail - Home Furnishings	42	2,580	2.8	%	29,930		2.7	%
Retail - Internet	1	1,423	1.6	%	6,797		0.6	%
Retail - Medical Services	64	532	0.6	%	12,047		1.1	%
Retail - Motor Vehicle	181	6,034	6.7	%	43,851		3.9	%
Retail - Office Supply	3	69	0.1	%	963		0.1	%
Retail - Pet Supply	18	964	1.1	%	19,466		1.7	%
Retail - Pharmacy	219	3,289	3.6	%	74,633		6.7	%
Retail - Specialty (Other)	22	527	0.6	%	5,917		0.5	%
Retail - Sporting Goods	20	1,715	1.9	%	22,698		2.0	%
Retail - Warehouse Clubs	6	2,596	2.9	%	23,342		2.1	%
Other	22	272	0.2	%	6,147		0.5	%
Total	3,159	89,713	99.0	%	$	1,116,456	100.0	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 25




		Q2 2019 SUPPLEMENTAL INFORMATION

Diversification: Property Geographic

(unaudited, square feet and dollars in thousands)



Location	Number of Properties	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
United States
Alabama	147	1,701	1.9	%	$	25,871	2.3	%
Alaska	3	25	—	%	794		0.1	%
Arizona	78	1,955	2.2	%	34,383		3.1	%
Arkansas	93	1,172	1.3	%	14,257		1.3	%
California	64	3,400	3.7	%	40,673		3.6	%
Colorado	45	1,679	1.8	%	25,841		2.3	%
Connecticut	16	83	0.1	%	2,278		0.2	%
Delaware	9	83	0.1	%	1,595		0.1	%
Florida	252	4,413	4.9	%	66,055		5.9	%
Georgia	178	3,987	4.4	%	44,833		4.0	%
Idaho	16	130	0.1	%	3,053		0.3	%
Illinois	155	4,754	5.2	%	63,579		5.7	%
Indiana	129	4,001	4.4	%	36,416		3.2	%
Iowa	46	874	1.0	%	9,658		0.9	%
Kansas	41	2,207	2.4	%	10,475		0.9	%
Kentucky	78	2,200	2.4	%	23,099		2.1	%
Louisiana	90	2,798	3.1	%	27,766		2.5	%
Maine	26	703	0.8	%	9,021		0.8	%
Maryland	27	596	0.7	%	14,238		1.3	%
Massachusetts	36	2,568	2.8	%	29,231		2.6	%
Michigan	175	2,095	2.3	%	35,767		3.2	%
Minnesota	52	793	0.9	%	12,689		1.1	%
Mississippi	72	1,918	2.1	%	14,626		1.3	%
Missouri	152	1,701	1.9	%	23,366		2.1	%
Montana	9	115	0.1	%	1,956		0.2	%
Nebraska	20	350	0.4	%	6,191		0.6	%
Nevada	28	717	0.8	%	8,491		0.8	%
New Hampshire	19	253	0.3	%	4,473		0.4	%
New Jersey	31	1,614	1.8	%	34,713		3.1	%
New Mexico	43	771	0.9	%	10,591		0.9	%
New York	75	1,505	1.7	%	26,834		2.4	%
North Carolina	151	3,284	3.6	%	35,708		3.2	%
North Dakota	12	209	0.2	%	4,348		0.4	%
Ohio	285	8,412	9.3	%	65,690		5.9	%
Oklahoma	77	2,077	2.3	%	25,633		2.3	%
Oregon	13	88	0.1	%	2,070		0.2	%
Pennsylvania	136	3,908	4.3	%	42,495		3.8	%
Rhode Island	13	171	0.2	%	3,226		0.3	%
South Carolina	105	2,400	2.6	%	22,456		2.0	%
South Dakota	12	180	0.2	%	2,169		0.2	%
Tennessee	107	2,739	3.0	%	27,429		2.5	%
Texas	546	10,557	11.6	%	141,451		12.7	%
Utah	11	515	0.6	%	5,744		0.5	%
Vermont	6	19	—	%	292		—	%
Virginia	96	2,457	2.7	%	32,230		2.9	%
Washington	26	726	0.8	%	12,905		1.2	%
West Virginia	37	238	0.3	%	5,457		0.5	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 26




		Q2 2019 SUPPLEMENTAL INFORMATION

Diversification: Property Geographic (cont.)

(unaudited, square feet and dollars in thousands)



Location	Number of Properties	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Wisconsin	101	1,348	1.5	%	20,569		1.8	%
Wyoming	8	54	0.1	%	1,436		0.1	%
Territories
Puerto Rico	3	88	0.1	%	2,335		0.2	%
Total	3,950	90,631	100.0	%	$	1,116,456	100.0	%

Percentages based on Annualized Rental Income.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 27




		Q2 2019 SUPPLEMENTAL INFORMATION

Lease Expirations

(unaudited, square feet and dollars in thousands)



Year of Expiration	Number of Leases Expiring	Leased Square Feet	Leased Square Feet as a % of Total Portfolio		Annualized Rental Income Expiring		Annualized Rental Income Expiring as a % of Total Portfolio
2019	56	929	1.0	%	$	9,661	0.9	%
2020	198	3,287	3.6	%	38,381		3.4	%
2021	180	8,406	9.3	%	75,858		6.8	%
2022	263	9,396	10.3	%	82,261		7.4	%
2023	304	6,298	6.9	%	78,568		7.0	%
2024	244	9,893	10.9	%	119,162		10.7	%
2025	273	4,520	5.0	%	63,295		5.7	%
2026	223	7,967	8.7	%	76,559		6.9	%
2027	348	7,035	7.7	%	98,741		8.8	%
2028	302	6,163	6.9	%	75,868		6.8	%
Thereafter	768	25,819	28.7	%	398,102		35.6	%
Total	3,159	89,713	99.0	%	$	1,116,456	100.0	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 28




		Q2 2019 SUPPLEMENTAL INFORMATION

Lease Expirations (cont.)

(unaudited, square feet and dollars in thousands)



Year of Expiration	Number of Leases Expiring	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income Expiring		Annualized Rental Income Expiring as a % of Total Portfolio
2019
Retail	23	725	0.8	%	$	5,674	0.5	%
Restaurant	26	157	0.2	%	2,867		0.3	%
Industrial	1	4	—	%	37		—	%
Office	3	43	—	%	911		0.1	%
Other⁽¹⁾	3	—	—	%	172		—	%
Total 2019	56	929	1.0	%	$	9,661	0.9	%

2020
Retail	86	1,006	1.1	%	$	14,182	1.3	%
Restaurant	93	404	0.4	%	7,407		0.7	%
Industrial	7	1,084	1.2	%	4,142		0.4	%
Office	9	793	0.9	%	12,140		1.0	%
Other⁽¹⁾	3	—	—	%	510		—	%
Total 2020	198	3,287	3.6	%	$	38,381	3.4	%

2021
Retail	75	1,230	1.4	%	$	19,993	1.8	%
Restaurant	73	361	0.4	%	9,121		0.8	%
Industrial	12	5,158	5.7	%	19,058		1.7	%
Office	18	1,657	1.8	%	27,626		2.5	%
Other⁽¹⁾	2	—	—	%	60		—	%
Total 2021	180	8,406	9.3	%	$	75,858	6.8	%

2022
Retail	165	2,259	2.5	%	$	30,515	2.7	%
Restaurant	57	271	0.3	%	7,197		0.6	%
Industrial	26	5,474	6.0	%	19,280		1.7	%
Office	14	1,392	1.5	%	25,196		2.3	%
Other⁽¹⁾	1	—	—	%	73		0.1	%
Total 2022	263	9,396	10.3	%	$	82,261	7.4	%

___________________________________


(1)	Includes redevelopment property, billboards, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 29




		Q2 2019 SUPPLEMENTAL INFORMATION

Lease Expirations (cont.)

(unaudited, square feet and dollars in thousands)



Year of Expiration	Number of Leases Expiring	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income Expiring		Annualized Rental Income Expiring as a % of Total Portfolio
2023
Retail	195	2,528	2.8	%	$	33,824	3.0	%
Restaurant	75	303	0.3	%	7,897		0.7	%
Industrial	18	2,458	2.7	%	16,386		1.5	%
Office	11	1,009	1.1	%	19,995		1.8	%
Other⁽¹⁾	5	—	—	%	466		—	%
Total 2023	304	6,298	6.9	%	$	78,568	7.0	%

2024
Retail	135	2,494	2.8	%	$	35,166	3.1	%
Restaurant	72	310	0.3	%	8,168		0.8	%
Industrial	11	3,450	3.8	%	14,771		1.3	%
Office	24	3,639	4.0	%	60,928		5.5	%
Other⁽¹⁾	2	—	—	%	129		—	%
Total 2024	244	9,893	10.9	%	$	119,162	10.7	%

2025
Retail	199	2,056	2.3	%	$	33,892	3.0	%
Restaurant	59	253	0.3	%	7,135		0.7	%
Industrial	11	1,645	1.8	%	13,217		1.2	%
Office	4	566	0.6	%	9,051		0.8	%
Total 2025	273	4,520	5.0	%	$	63,295	5.7	%

2026
Retail	92	1,933	2.1	%	$	22,002	2.0	%
Restaurant	108	486	0.5	%	17,314		1.6	%
Industrial	14	4,804	5.3	%	21,704		1.9	%
Office	8	744	0.8	%	15,393		1.4	%
Other⁽¹⁾	1	—	—	%	146		—	%
Total 2026	223	7,967	8.7	%	$	76,559	6.9	%

___________________________________


(1)	Includes redevelopment property, billboards, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 30




		Q2 2019 SUPPLEMENTAL INFORMATION

Lease Expirations (cont.)

(unaudited, square feet and dollars in thousands)



Year of Expiration	Number of Leases Expiring	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income Expiring		Annualized Rental Income Expiring as a % of Total Portfolio
2027
Retail	239	3,830	4.2	%	$	50,474	4.5	%
Restaurant	96	857	0.9	%	27,764		2.5	%
Industrial	10	1,814	2.0	%	13,099		1.1	%
Office	3	534	0.6	%	7,404		0.7	%
Total 2027	348	7,035	7.7	%	$	98,741	8.8	%

2028
Retail	186	3,037	3.4	%	$	39,860	3.6	%
Restaurant	89	320	0.4	%	11,336		1.0	%
Industrial	19	2,166	2.4	%	14,524		1.3	%
Office	8	640	0.7	%	10,148		0.9	%
Total 2028	302	6,163	6.9	%	$	75,868	6.8	%

Thereafter
Retail	392	13,374	14.8	%	$	204,261	18.3	%
Restaurant	350	3,445	3.9	%	129,516		11.6	%
Industrial	15	8,184	9.1	%	46,521		4.1	%
Office	8	816	0.9	%	17,589		1.6	%
Other⁽¹⁾	3	—	—	%	215		—	%
Total Thereafter	768	25,819	28.7	%	$	398,102	35.6	%

Total Remaining Lease Expirations	3,159	89,713	99.0	%	$	1,116,456	100.0	%

___________________________________


(1)	Includes redevelopment property, billboards, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 31




		Q2 2019 SUPPLEMENTAL INFORMATION

Lease Summary

(unaudited)

Rent Escalations

(square feet and dollars in thousands)



	Number of Leases	Leased Square Feet	Leased Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Fixed dollar or percent increase	2,010	62,004	68.4	%	$	785,969	70.4	%
CPI	176	7,095	7.8	%	105,983		9.5	%
Flat	973	20,614	22.8	%	224,504		20.1	%
Total	3,159	89,713	99.0	%	$	1,116,456	100.0	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 32




		Q2 2019 SUPPLEMENTAL INFORMATION

Lease Summary (cont.)

(unaudited)

Tenant Expense Obligation

(square feet and dollars in thousands)



	Number of Leases	Leased Square Feet	Leased Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
NNN	2,230	55,605	61.4	%	$	705,716	63.2	%
NN	898	32,931	36.3	%	382,584		34.3	%
Other⁽¹⁾	31	1,177	1.3	%	28,156		2.5	%
Total	3,159	89,713	99.0	%	$	1,116,456	100.0	%

___________________________________


(1)	Includes gross, modified gross and billboard leases.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 33




		Q2 2019 SUPPLEMENTAL INFORMATION

Property Type Diversification

(unaudited, square feet and dollars in thousands)

Property Type Diversification



Property Type	Number of Properties⁽¹⁾	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Retail⁽¹⁾	2,119	34,898	38.5	%	$	489,843	43.9	%
Restaurant	1,593	7,408	8.2	%	235,722		21.1	%
Industrial	148	36,252	40.0	%	182,739		16.4	%
Office	80	12,073	13.3	%	206,381		18.5	%
Other⁽²⁾	10	—	—	%	1,771		0.1	%
Total	3,950	90,631	100.0	%	$	1,116,456	100.0	%

___________________________________

(1) Includes seven anchored shopping centers, representing 1.2% of Annualized Rental Income.

(2) Includes redevelopment property, billboards, construction in progress, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 34




		Q2 2019 SUPPLEMENTAL INFORMATION

Diversification by Property Type: Retail

(unaudited, percentages based on Annualized Rental Income of the retail properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________



Statistics (square feet in thousands)

Operating Properties	2,119
Rentable Square Feet	34,898
Economic Occupancy Rate	98.8	%
Weighted Average Remaining Lease Term	9.0
Investment-Grade Tenants	50.2	%
Flat leases	30.1	%
NNN leases	65.4	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 35




		Q2 2019 SUPPLEMENTAL INFORMATION

Diversification by Property Type: Restaurants

(unaudited, percentages based on Annualized Rental Income of the restaurant properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________



Statistics (square feet in thousands)

Operating Properties	1,593
Rentable Square Feet	7,408
Economic Occupancy Rate	96.8	%
Weighted Average Remaining Lease Term	11.4
Investment-Grade Tenants	3.2	%
Flat leases	8.4	%
NNN leases	99.4	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

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		Q2 2019 SUPPLEMENTAL INFORMATION

Diversification by Property Type: Industrial

(unaudited, percentages based on Annualized Rental Income of the industrial properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________



Statistics (square feet in thousands)

Operating Properties	148
Rentable Square Feet	36,252
Economic Occupancy Rate	100.0	%
Weighted Average Remaining Lease Term	7.6
Investment-Grade Tenants	46.1	%
Flat leases	18.2	%
NNN leases	56.9	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

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		Q2 2019 SUPPLEMENTAL INFORMATION

Diversification by Property Type: Office

(unaudited, percentages based on Annualized Rental Income of the office properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________



Statistics (square feet in thousands)

Operating Properties	80
Rentable Square Feet	12,073
Economic Occupancy Rate	98.0	%
Weighted Average Remaining Lease Term	5.2
Investment-Grade Tenants	50.5	%
Flat leases	11.3	%
NNN leases	22.7	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

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		Q2 2019 SUPPLEMENTAL INFORMATION

Unconsolidated Joint Venture Investment Summary

(unaudited, square feet and dollars in thousands)



Joint Venture	Legal Ownership %	Property Type	Number of Properties	Pro Rata Share of Gross Real Estate Investments		Pro Rata Share of Rentable Square Feet	Pro Rata Share of Annualized Rental Income		Pro Rata Share of Adjusted Principal Outstanding
Industrial Partnership	20%	Industrial	6	$	81,600	952	$	5,267	$	53,850
Faison JV Bethlehem GA	90%	Retail	1	39,695		248	3,244		—
Total				$	121,295	1,200	$	8,511	$	53,850

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

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		Q2 2019 SUPPLEMENTAL INFORMATION

Definitions

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 our pro rata share of such revenues from properties owned by unconsolidated joint ventures. Annualized Rental Income excludes any adjustments to rental income due to changes in the collectability assessment, and any contingent rent, such as percentage rent, and operating expense reimbursements. 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.

Cash Cap Rate equals the estimated future 12-month Cash NOI, excluding any rent concessions or abatements, at acquisition or disposition divided by the purchase or sale price. For properties acquired or disposed of as a portfolio, the amount presented represents the portfolio cash cap rate. For development projects, Cash Cap Rate equals the estimated future 12-month NOI from the date rent commences divided by the total estimated investment. For certain properties, the Cash Cap Rate is equal to future 12-month Contract Rental Revenue, excluding any rent concessions or abatements, divided by the purchase price or sale price, as the majority of the Company's properties are subject to Triple Net Leases.

Contract Rental Revenue includes minimum rent, percentage rent and other contingent consideration, and rental revenue from parking and storage space and the Company's pro rata share of such revenues from properties owned by unconsolidated joint ventures. Contract Rental Revenue excludes GAAP adjustments, such as straight-line rent and amortization of above-market lease assets and below-market lease liabilities. Contract Rental Revenue includes such revenues from properties subject to a direct financing lease, and omits the Contract Rental Revenue related to Excluded Properties. The Company believes that Contract Rental Revenue is a useful non-GAAP supplemental measure to investors and analysts for assessing performance. However, Contract Rental Revenue should not be considered as an alternative to revenue, as computed in accordance with GAAP, or as an indicator of the Company's financial performance. Contract Rental Revenue may not be comparable to similarly titled measures of other companies.

The following table shows the calculation of Contract Rental Revenue for the three months ended June 30, 2019 and 2018 (dollar amounts in thousands):



	Three Months Ended June 30,
	2019			2018
Rental revenue - as reported	$	312,043		$	315,664
Adjustments:
Costs reimbursed related to CAM, property operating expenses and ground leases	(27,076		)	(25,023		)
Straight-line rent	(8,043		)	(11,422		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	611			688
Net direct financing lease adjustments	410			503
Other non-contract rental revenue	(217		)	(251		)
Unconsolidated joint ventures' pro rata share	1,189			—
Contract Rental Revenue - Excluded Properties	(263		)	—
Contract Rental Revenue	$	278,654		$	280,159

CPI is a lease in which base rent is adjusted based on changes in a consumer price index.

Direct Financing Lease is a lease that requires specific treatment due to the significance of the lease payments from the inception of the lease compared to the fair value of the property, term of the lease, a transfer of ownership, or a bargain purchase option. These leases are recorded as a net asset on the balance sheet. The amount booked is calculated as 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.

Double Net Lease ("NN") is a lease under which the tenant agrees to pay all operating expenses associated with the property (e.g., real estate taxes, insurance, maintenance), but excludes some or all major repairs (e.g., roof, structure, parking lot).

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		Q2 2019 SUPPLEMENTAL INFORMATION

Definitions (cont.)

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre") and Normalized EBITDA

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 Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as net income or loss computed in accordance with GAAP, adjusted for interest expense, income tax expense (benefit), depreciation and amortization, impairment write-downs on real estate, gains or losses from disposition of property and our pro rata share of EBITDAre adjustments related to unconsolidated partnerships and joint ventures. We calculated EBITDAre in accordance with Nareit's definition described above.

In addition to EBITDAre, we use Normalized EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDA, as defined by the Company, represents EBITDAre, modified to exclude non-routine items such as acquisition-related expenses, litigation and non-routine costs, net, loss on disposition of discontinued operations, net revenue or expense earned or incurred that is related to the services agreement, gains or losses on sale of investment securities or mortgage notes receivable, payments on fully reserved loan receivables and restructuring expenses. We also exclude certain non-cash items such as impairments of goodwill and intangible assets, straight-line rental revenue, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, write-off of program development costs, and amortization of intangibles, above-market lease assets and below-market lease liabilities. Normalized EBITDA omits the Normalized EBITDA impact of Excluded Properties. Management believes that excluding these costs from EBITDAre 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. Therefore, EBITDA, EBITDAre and Normalized EBITDA should not be considered as an alternative to net income, as computed in accordance with GAAP. The Company uses EBITDA, EBITDAre and 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.

Economic Occupancy Rate equals the sum of Leased Square Feet divided by Rentable Square Feet.

Enterprise Value equals the sum of the Implied Equity Market Capitalization, preferred stock and Net Debt.

Excluded Properties are properties for which (i) the related mortgage loan is in default, and (ii) management decides to transfer the properties to the lender in connection with settling the mortgage note obligation. Certain non-GAAP measures and operating metrics omit the impact of such properties for the month beginning with the date that such criteria are met and ending with the disposition date, to better reflect the ongoing operations of the Company.

At and during the three months ended June 30, 2019, the Excluded Property was one office property comprising 145,186 square feet, of which 6,926 was vacant, with Principal Outstanding of $19.5 million. At March 31, 2019, December 31, 2018, September 30, 2018, and June 30, 2018, there were no Excluded Properties. During the three months ended June 30, 2018, the Excluded Property was one vacant industrial property, comprising 307,725 square feet with Principal Outstanding of $16.2 million.

Fixed Charge Coverage Ratio is the sum of (i) Interest Expense, excluding non-cash amortization, (ii) secured debt principal amortization on Adjusted Principal Outstanding 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.

Flat Lease is a lease that requires equal rent payments, with no increases, throughout the initial term of the lease agreement. A Flat Lease may include a period of free rent at the beginning or end of the lease.

Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO")

Due to certain unique operating characteristics of real estate companies, as discussed below, Nareit 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.

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		Q2 2019 SUPPLEMENTAL INFORMATION

Definitions (cont.)

Nareit defines FFO as net income or loss computed in accordance with GAAP adjusted for gains or losses from disposition of property, depreciation and amortization of real estate assets, impairment write-downs on real estate, and our pro rata share of FFO adjustments related to unconsolidated partnerships and joint ventures. We calculate 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 non-routine costs, net, loss on disposition of discontinued operations, net revenue or expense earned or incurred that is related to the services agreement, gains or losses on sale of investment securities or mortgage notes receivable, payments on fully reserved loan receivables and restructuring expenses. We also exclude certain non-cash items such as impairments of goodwill and intangible assets, straight-line rent, net of bad debt expense related to straight-line rent, net direct financing lease adjustments, 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, premiums and discounts on debt and investments, above-market lease assets and below-market lease liabilities. We omit the impact of the Excluded Properties and related non-recourse mortgage notes from FFO to calculate 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.

GAAP is an abbreviation for generally accepted accounting principles in the United States.

Gross Lease is a lease under which the landlord is responsible for all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs).

Gross Real Estate Investments represent total gross real estate and related assets of Operating Properties, equity investments in the Cole REITs, investment in direct financing leases, investment securities backed by real estate and mortgage notes receivable, and the Company's pro rata share of such amounts related to properties owned by unconsolidated joint ventures, net of gross intangible lease liabilities. As discussed in the About the Data section, prior to April 1, 2019, gross real estate investments included net investments in unconsolidated entities, not the Company's pro rata share of unconsolidated joint ventures' Gross Real Estate Investments. We believe that the presentation of Gross Real Estate Investments, which shows our total investments in real estate and related assets, in connection with Net Debt, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Gross Real Estate Investments should not be considered as an alternative to the Company's real estate investments 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.

The following table shows a reconciliation of Gross Real Estate Investments to the amounts presented in accordance with GAAP on the balance sheet for the periods presented (dollar amounts in thousands):

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		Q2 2019 SUPPLEMENTAL INFORMATION

Definitions (cont.)



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Total real estate investments, at cost - as reported	$	15,043,975		$	15,570,486		$	15,604,839		$	15,519,689		$	15,597,735
Adjustments:
Investment in unconsolidated entities	—			35,790			35,289			34,293			33,972
Investment in Cole REITs	7,552			7,552			7,844			7,844			7,844
Gross assets held for sale	28,312			45,065			3,020			30,014			35,819
Investment in direct financing leases, net	10,323			10,735			13,254			14,082			16,560
Investment securities, at fair value	—			—			—			26,282			35,489
Mortgage notes receivable, net	1,687			1,713			10,164			18,757			19,855
Gross intangible lease liabilities	(246,135		)	(259,976		)	(263,384		)	(265,036		)	(270,176		)
Unconsolidated joint ventures' pro rata share	121,295			—			—			—			—
Gross Real Estate Investments - Excluded Properties	(16,700		)	—			—			—			—
Gross Real Estate Investments	$	14,950,309		$	15,411,365		$	15,411,026		$	15,385,925		$	15,477,098

Implied Equity Market Capitalization equals shares of common stock outstanding, including restricted stock awards, multiplied by the closing sale price of the Company's stock as reported on the New York Stock Exchange.

Industry is derived from the North American Industry Classification System, NAICS, which is a system used by federal statistical agencies to classify business establishments, for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

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.

Interest Expense, excluding non-cash amortization is a non-GAAP measure that represents interest expense incurred on the outstanding principal balance of our debt and the Company's pro rata share of the unconsolidated joint ventures' outstanding principal balance. 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.

The following table shows a reconciliation of Interest Expense, excluding non-cash amortization to interest expense presented in accordance with GAAP on the statements of operations for the periods presented (dollar amounts in thousands):



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Interest expense - as reported	$	(69,803	)	$	(71,254	)	$	(70,832	)	$	(69,310	)	$	(70,320	)
Adjustments:
Amortization of deferred financing costs and other non-cash charges	(3,348		)	(3,546		)	(3,813		)	(4,003		)	(5,705		)
Amortization of net premiums	1,397			1,328			1,295			1,138			634
Unconsolidated joint ventures' pro rata share	(171		)	—			—			—			—
Interest Expense, excluding non-cash amortization - Excluded Properties	(208		)	—			—			—			(47		)
Interest Expense, excluding non-cash amortization	$	(67,815	)	$	(69,036	)	$	(68,314	)	$	(66,445	)	$	(65,202	)

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		Q2 2019 SUPPLEMENTAL INFORMATION

Definitions (cont.)

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.

Leased Square Feet is Rentable Square Feet leased (including month-to-month agreements).

Metropolitan Statistical Area (MSA) is a large metropolitan area represented by a large group of zip codes, as defined by Real Capital Analytics.

Modified Gross Lease is a lease under which the landlord is responsible for most expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs), but passes through some operating expenses to the tenant.

Net Debt, Principal Outstanding and Adjusted Principal Outstanding

Principal Outstanding is a non-GAAP measure that represents the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. Adjusted Principal Outstanding includes the Company's pro rata share of the unconsolidated joint ventures' outstanding principal debt balance and omits the outstanding principal balance of mortgage notes secured by Excluded Properties. We believe that the presentation of Principal Outstanding and Adjusted Principal Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall liquidity, financial flexibility, capital structure and leverage. Principal Outstanding and Adjusted Principal 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.

Net Debt is a non-GAAP measure used to show the Company's Adjusted Principal Outstanding, less all cash and cash equivalents and the Company's pro rata share of unconsolidated joint ventures' 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.

The following table shows a reconciliation of Net Debt, Principal Outstanding and Adjusted Principal Outstanding to the amounts presented in accordance with GAAP on the balance sheet for the periods presented (dollar amounts in thousands):



	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Mortgage notes payable, net	$	1,745,331		$	1,918,826		$	1,922,657		$	1,936,586		$	2,031,171
Corporate bonds, net	2,621,130			2,619,956			3,368,609			2,825,541			2,824,176
Convertible debt, net	396,766			395,823			394,883			393,961			989,901
Credit facility, net	895,033			1,089,725			401,773			793,000			195,000
Total debt - as reported	5,658,260			6,024,330			6,087,922			5,949,088			6,040,248
Deferred financing costs, net	42,085			44,602			42,763			39,085			41,672
Net premiums	(5,435		)	(6,726		)	(8,053		)	(13,066		)	(14,327		)
Principal Outstanding	5,694,910			6,062,206			6,122,632			5,975,107			6,067,593
Unconsolidated joint ventures' pro rata share	53,850			—			—			—			—
Principal Outstanding - Excluded Properties	(19,525		)	—			—			—			—
Adjusted Principal Outstanding	$	5,729,235		$	6,062,206		$	6,122,632		$	5,975,107		$	6,067,593
Cash and cash equivalents	(211,510		)	(12,788		)	(30,758		)	(25,264		)	(18,434		)
Pro rata share of unconsolidated joint ventures' cash and cash equivalents	(2,920		)	—			—			—			—
Net Debt	$	5,514,805		$	6,049,418		$	6,091,874		$	5,949,843		$	6,049,159

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.

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		Q2 2019 SUPPLEMENTAL INFORMATION

Definitions (cont.)

Net Debt to Normalized EBITDA Annualized equals Net Debt divided by the respective 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.

Net Operating Income ("NOI") and Cash NOI

NOI is a non-GAAP performance measure used to evaluate the operating performance of a real estate company. NOI represents rental revenue less property operating expenses and excludes impairment, depreciation and amortization, general and administrative expenses, acquisition-related expenses, litigation and non-routine costs, net and restructuring expenses. Cash NOI excludes the impact of certain GAAP adjustments to rental revenue, such as straight-line rent adjustments and amortization of above-market intangible lease assets and below-market lease intangible liabilities. Cash NOI includes the pro rata share of such amounts from properties owned by unconsolidated joint ventures and omits the Cash NOI impact of Excluded Properties. It is management's view that NOI and Cash NOI provide investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. NOI and Cash NOI should not be considered as an alternative to operating income. Further, NOI and Cash NOI may not be comparable to similarly titled measures of other companies.

The following table shows the calculation of NOI and Cash NOI for the periods presented (dollar amounts in thousands):



	Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Rental revenue	$	312,043		$	316,843		$	313,263		$	313,866		$	315,664
Less total operating expenses	(172,755		)	(184,336		)	(246,079		)	(362,047		)	(331,618		)
Acquisition-related expenses	985			985			1,136			810			909
Litigation and non-routine costs, net	(3,769		)	(21,492		)	23,541			138,595			107,087
General and administrative	16,416			14,846			17,220			15,186			16,287
Depreciation and amortization	118,022			136,555			153,050			157,181			164,235
Impairment of real estate	8,308			11,988			18,565			18,382			11,664
Restructuring expenses	290			9,076			—			—			—
NOI	279,540			284,465			280,696			281,973			284,228
Straight-line rent, net of bad debt expense related to straight-line rent	(8,043		)	(7,412		)	(8,341		)	(8,720		)	(11,402		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	611			731			945			1,058			688
Net direct financing lease adjustments	410			409			498			483			503
Unconsolidated joint ventures' pro rata share	1,176			—			—			—			—
Cash NOI - Excluded Properties	(203		)	—			—			—			22
Cash NOI	$	273,491		$	278,193		$	273,798		$	274,794		$	274,039

Normalized Cash NOI equals our Cash NOI for our most recently reported quarter and eliminates the Cash NOI for properties acquired or developments completed during the most recently reported quarter and replaces Cash NOI for the partial period with an amount estimated to be equivalent to Cash NOI for the full period. Additionally, Normalized Cash NOI eliminates the Cash NOI contributed by properties disposed of during the most recently reported period. It is management's view that Normalized Cash NOI provides investors relevant and useful information because it reflects only the Cash NOI of properties owned as of the most recent reporting period. Normalized Cash NOI should not be considered as an alternative to operating income.

Normalized EBITDA Annualized equals Normalized EBITDA, for the respective quarter, multiplied by four.

Operating Properties refers to all properties owned and consolidated by the Company except Excluded Properties as of the reporting date.

Property Operating Expense includes reimbursable and non-reimbursable costs to operate a property, including real estate taxes, utilities, insurance, repairs, maintenance, legal, property management fees, etc.

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		Q2 2019 SUPPLEMENTAL INFORMATION

Definitions (cont.)

Rentable Square Feet is leasable square feet of Operating Properties and the Company's pro rata share of leasable square feet of properties owned by unconsolidated joint ventures. Rentable Square Feet at June 30, 2019, and March 31, 2019, excludes the square feet of one redevelopment property.

Triple Net Lease ("NNN") is a lease under which the tenant agrees to pay all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs).

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.

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