0001104659-22-021019.txt : 20220214 0001104659-22-021019.hdr.sgml : 20220214 20220214060602 ACCESSION NUMBER: 0001104659-22-021019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 20 CONFORMED PERIOD OF REPORT: 20220210 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant ITEM INFORMATION: Unregistered Sales of Equity Securities ITEM INFORMATION: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220214 DATE AS OF CHANGE: 20220214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Necessity Retail REIT, Inc. CENTRAL INDEX KEY: 0001568162 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 900929989 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38597 FILM NUMBER: 22624472 BUSINESS ADDRESS: STREET 1: 650 FIFTH AVE STREET 2: 30TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 212-415-6500 MAIL ADDRESS: STREET 1: 650 FIFTH AVE STREET 2: 30TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: American Finance Trust, Inc DATE OF NAME CHANGE: 20150623 FORMER COMPANY: FORMER CONFORMED NAME: American Realty Capital Trust V, Inc. DATE OF NAME CHANGE: 20130129 8-K 1 tm226414-1_8k.htm FORM 8-K
0001568162 false 12-31 true 0001568162 2022-02-10 2022-02-10 0001568162 us-gaap:CommonStockMember 2022-02-10 2022-02-10 0001568162 us-gaap:SeriesAPreferredStockMember 2022-02-10 2022-02-10 0001568162 us-gaap:SeriesCPreferredStockMember 2022-02-10 2022-02-10 0001568162 RTL:PreferredStockPurchaseRightsMember 2022-02-10 2022-02-10 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): February 10, 2022

 

The Necessity Retail REIT, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Maryland   001-38597   90-0929989

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(I.R.S. Employer

Identification No.)

 

650 Fifth Avenue, 30th Floor
New York, New York 10019

(Address, including zip code, of Principal Executive Offices)

 

Registrant’s telephone number, including area code: (212) 415-6500

 

American Finance Trust, Inc.

(Former name or former address, if changed since last report)

  

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to section 12(b) of the Act:

 

Title of each class:   Trading Symbol(s)1   Name of each exchange on which registered:
Class A Common Stock, $0.01 par value   RTL   The Nasdaq Global Select Market
7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value   RTLPP   The Nasdaq Global Select Market
7.375% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share   RTLPO   The Nasdaq Global Select Market
Preferred Stock Purchase Rights       The Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

1 As of the date of this filing, the trading symbols for the Company on The Nasdaq Global Select Market are “AFIN,” “AFINP” and “AFINO,” respectively, but will be changed to the listed trading symbols on February 15, 2022.

 

 

 

 

 

Item 2.01 Completion of Acquisition or Disposition of Assets

 

On February 11, 2022, The Necessity Retail REIT, Inc., a Maryland corporation (the “Company”), through wholly owned subsidiaries of The Necessity Retail REIT Operating Partnership, L.P., the Company’s operating partnership (the “Operating Partnership”), acquired 44 properties (the “First Closing Properties”) from certain subsidiaries of CIM Real Estate Finance Trust, Inc. (the “Sellers”) pursuant to the previously disclosed purchase and sale agreement among the Company, the Operating Partnership and the Sellers. The First Closing Properties consist of 44 power centers and grocery-anchored multi-tenant retail centers and a detention pond parcel. The acquired properties are located across 17 states and aggregate approximately 4.5 million square feet, and represent the first tranche of the Company’s previously announced acquisition of 81 properties (together, the “CIM Portfolio”) from the Sellers. The First Closing Properties contain approximately 4.5 million rentable square feet and were 91% leased to 277 tenants as of September 30, 2021. As of September 30, 2021, those leases had a weighted average remaining lease term of 4.2 years. Neither the Sellers nor CIM Real Estate Finance Trust have a material relationship with the Company, the Operating Partnership or any of their respective subsidiaries and the acquisition was not an affiliated transaction.

 

The aggregate purchase price of the First Closing Properties was $547.4 million, excluding closing costs. The Company funded the purchase price of the First Closing Properties from a combination of cash on the balance sheet, including net proceeds from the $261 million sale of three office buildings leased to Sanofi S.A. and proceeds from the Company’s offering of senior notes as well as a $170 million draw under the Company’s credit facility and the issuance of $26.7 million in value of the Company’s Class A common stock, par value $0.01 per share.

  

The following table lists information about the First Closing Properties:

 

Portfolio  Number of
Properties
   Rentable Square Feet   Remaining Lease Term(1)   Percentage Leased2 
Beaver Creek Shopping Center   1    284,322    4.9    88% 
Brynwood Square   1    121,451    0.9    86% 
Carlisle Crossing   1    152,487    3.6    81% 
Crosspoint Shopping Center   1    170,121    5.3    88% 
Crossroads Annex   1    40,578    2.8    100% 
Crossroads Commons   1    47,217    3.8    100% 
Darien Towne Centre   1    177,162    3.2    93% 
Derby Marketplace   1    100,000    6.8    100% 
Dick's PetSmart Center   1    52,302    4.4    100% 
Enid Crossing   1    47,979    4.2    100% 
Evergreen Marketplace   1    49,842    3.2    100% 
Fairlane Green II   1    95,000    5.8    100% 
Fountain Square   1    166,346    3.7    77% 
FreshThyme & DSW   1    49,033    2.6    100% 
Lord Salisbury Center   1    113,821    3.9    98% 
Market at Clifty Crossing   1    198,014    3.0    77% 
Mattress Firm & Aspen Dental   1    10,254    2.8    35% 
Mattress Firm & Five Guys   1    7,638    6.3    100% 
Mattress Firm & Panera Bread   1    8,800    6.3    100% 
MattressFirm & Kay Jewelers   1    6,500    4.1    100% 
Melody Mountain   1    65,525    2.3    100% 
NordstromRack FL-Tampa   1    45,457    9.2    98% 
Owensboro Town Center   1    164,941    3.6    92% 
Pecanland Plaza   1    111,801    3.6    94% 
PetSmart & Old Navy   1    28,970    8.7    100% 
Plainfield Marketplace   1    125,337    1.8    86% 
Plaza San Mateo   1    63,266    3.3    98% 
Rolling Acres   1    189,132    3.7    96% 
Shippensburg Marketplace   1    59,866    6.4    84% 
Shoe Carnival & Buffalo Wild Wings   1    14,859    6.1    100% 

 

 

 

 

Shoppes at Stroud   1    140,910    4.8    94% 
Shoppes of Gary Farms   1    99,768    2.4    95% 
Shops at Abilene   1    175,642    3.8    97% 
Southwest Plaza   1    367,974    3.0    77% 
Summerfield Crossing   1    113,500    2.6    100% 
Sutters Creek   1    80,004    7.5    100% 
Tellico Village   1    40,928    6.5    100% 
The Market at Polaris   1    111,328    6.1    65% 
Triangle Town Place   1    149,471    5.0    94% 
Turfway Crossing   1    99,578    2.0    95% 
University Marketplace   1    86,224    3.5    100% 
Ventura Place   1    67,195    6.0    93% 
Wallace Commons II   1    110,922    5.3    100% 
Westover Market   1    60,646    6.8    100% 
Total   44    4,472,111    4.2    91% 

 

(1)

Remaining lease term in years as of September 30, 2021. Since the portfolio has multiple properties with varying lease expirations, remaining lease term is calculated as a weighted-average based on annualized rental income on a straight-line basis.

 

(2)Occupancy data as of September 30, 2021

 

The Company expects to complete the acquisition of the remaining properties in the CIM Portfolio in the first quarter of 2022. There can be no assurance that any subsequent closing will occur, or of the timing of any such closing.

 

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a

Registrant.

 

On February 11, 2022, the Company, through the Operating Partnership, drew $170 million from its existing credit facility with BMO Harris Bank, N.A. in connection with the acquisition of the First Closing Properties.

 

A description of the credit facility is included in the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 3, 2021. The description is a summary and is qualified in its entirety by the terms of the credit agreement relating to the credit facility, which was filed with the SEC as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on October 3, 2021 and is incorporated by reference herein.

 

Item 3.02 Unregistered Sales of Equity Securities.

 

As noted in Item 2.01 above, on February 11, 2022, the Company issued 3,264,693 shares of Class A common stock with a value for these purposes equal to $26,694,088.78 to satisfy a portion of the purchase price of the First Closing Properties. The issuance of the shares of Class A Common Stock was made in reliance on the exemption from registration in Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D thereunder.

 

 

 

 

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

 

Change of Corporate Name and Trading Symbol Changes

 

Effective February 10, 2022, the Company amended its charter to change its name from “American Finance Trust, Inc.” to “The Necessity Retail REIT, Inc.” The name change was effected pursuant to an amendment to the Company’s charter (the “Charter Amendment”), which was filed with the Maryland State Department of Assessments and Taxation. A copy of the Charter Amendment is attached hereto as Exhibit 3.1. Effective on the same date, the Operating Partnership changed its name from “American Finance Operating Partnership, L.P.” to “The Necessity Retail REIT Operating Partnership, L.P.”

 

In addition, beginning February 15, 2022, in connection with changing its name, the trading symbol of the Company’s Class A Common Stock on The Nasdaq Global Select Market will become “RTL”, and the trading symbols of its 7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share, and 7.375% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share, will become RTLPP and RTLPO, respectively.

 

Item 7.01 Regulation FD Disclosure.

 

On February 11, 2022, the Company issued a press release announcing the acquisition of the First Closing Properties and the change of the Company’s name.

 

A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K. This press release shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Item 7.01, including Exhibit 99.1, shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act, regardless of any general incorporation language in such filing.

 

The statements contained in this Current Report on Form 8-K that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “seek,” “may,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the potential adverse effects of the ongoing global COVID-19 pandemic, including actions taken to contain or treat COVID-19, on the Company, the Company’s tenants and the global economy and financial markets as well as those set forth in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 25, 2021, and all other filings with the SEC after that date, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports including in particular the Company’s Current Report on Form 8-K dated December 20, 2021 and describing additional facts and risk factors relating to the transaction described in this filing. In particular, the transactions described are subject to closing conditions, including conditions that are outside of the Company’s control, and the transactions described may not be completed on the contemplated terms, or at all, or they may be delayed. The Company may not be able to obtain financing to acquire the remaining properties. Forward looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law. 

 

 

 

 

Item 9.01 Financial Statements and Exhibits

 

(a) Financial Statements of Properties Acquired.

 

The financial statements required to be filed under Item 9.01(a) of this Current Report on Form 8-K will be filed by amendment to this Current Report on Form 8-K no later than 71 days after the date the initial report on Form 8-K is required to be filed.

 

(b) Pro Forma Financial Information.

 

The pro forma financial information required to be filed under Item 9.01(b) of this Current Report on Form 8-K will be filed by amendment to this Current Report on Form 8-K no later than 71 days after the date the initial report on Form 8-K is required to be filed.

 

(d) Exhibits.

 

     

Exhibit

Number

  Description
3.1   Articles of Amendment to the Articles of Restatement of American Finance Trust, Inc. as filed with the State Department of Assessments and Taxation of Maryland on February 10, 2022.
10.1   Agreement of Purchase and Sale, dated as of December 17, 2021, by and between the Sellers identified therein and American Finance Operating Partnership, L.P. (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on December 20, 2021).
99.1   Press Release dated February 14, 2022.
104   Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  THE NECESSITY RETAIL REIT, INC.
     
Date: February 14, 2022 By: /s/ Edward M. Weil, Jr.
  Name: Edward M. Weil, Jr.
  Title: Chief Executive Officer and President

 

 

 

EX-3.1 2 tm226414d1_ex3-1.htm EXHIBIT 3.1

 

Exhibit 3.1

 

AMERICAN FINANCE TRUST, INC.

 

ARTICLES OF AMENDMENT

 

American Finance Trust, Inc., a Maryland corporation (the “Company”), hereby certifies to the State Department of Assessments and Taxation of Maryland that:

 

FIRST: The charter of the Company (the “Charter”) is hereby amended to change the name of the Company to “The Necessity Retail REIT, Inc.”  All references in the Charter to “American Finance Trust, Inc.” are hereby changed to “The Necessity Retail REIT, Inc.”

 

SECOND: The amendment to the Charter as set forth above has been duly approved by at least a majority of the entire Board of Directors as required by law. The amendment set forth herein is made without action by the stockholders of the Company, pursuant to Section 2-605(a)(1) of the Maryland General Corporation Law.

 

THIRD: The Board of Directors of the Company adopted a resolution authorizing James A. Tanaka, as a designee of the Chief Executive Officer and the Chief Financial Officer of the Company, to attest these Articles of Amendment.

 

FOURTH: The undersigned acknowledges these Articles of Amendment to be the corporate act of the Company and as to all matters or facts required to be verified under oath, the undersigned acknowledges that to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

 

-signature page follows-

 

 

 

 

IN WITNESS WHEREOF, the Company has caused these Articles of Amendment to be signed in its name and on its behalf by its Chief Financial Officer and attested to by an authorized person on this 10th day of February, 2022.

 

 

ATTEST:   AMERICAN FINANCE TRUST, INC.  
         
         
/s/ James A. Tanaka   By:   /s/ Jason F. Doyle (SEAL)
Name:  James A. Tanaka   Name: Jason F. Doyle  
Title:    Authorized Person   Title:

Chief Financial Officer, Secretary and Treasurer

 
         
         

 

 

 

 

EX-99.1 3 tm226414d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Shape

Description automatically generated with medium confidence   Logo, company name

Description automatically generated

 

AMERICAN FINANCE TRUST CLOSES ON FIRST TRANCHE OF PREVIOUSLY ANNOUNCED $1.3 BILLION OPEN-AIR SHOPPING CENTER ACQUISITION, CHANGES NAME TO THE NECESSITY RETAIL REIT “WHERE AMERICA SHOPS”, TO BEGIN TRADING AS RTL ON NASDAQ

 

44 Properties Acquired for $547 Million as part of Previously Announced 81 Property, $1.3 Billion Portfolio Acquisition

 

37 Remaining Properties Expected to Close by the End of the First Quarter

 

Name Change to The Necessity Retail REIT, New Stock Ticker ‘RTL’ to Begin Trading on February 15, 2022

  

NEW YORK – February 14, 2022 – American Finance Trust, Inc. (Nasdaq: AFIN) (“AFIN” or the “Company”) announced today that the Company, through its operating partnership, completed the initial acquisition of 44 open-air shopping centers for a total of $547 Million, excluding closing costs (the “Closing”). The Closing is the first tranche of acquisitions from the previously announced definitive agreement to acquire a portfolio of 79 Power, Anchored and Grocery Centers and two single tenant properties (the “Transaction”) from certain subsidiaries of CIM Real Estate Finance Trust, Inc. for $1.3 billion, representing a 7.19% cash capitalization rate. The Company expects to acquire the remaining properties in the Transaction by the end of the first quarter, 2022. Upon completing the Transaction, the Company will be the preeminent REIT focused on Necessity-Based retail with a best-in-class portfolio that will comprise over 1,000 properties, 29 million square feet and $382 million in Pro-Forma1 annualized straight-line rent.

 

As previously announced, as of February 10, 2022 the Company’s name changed to The Necessity Retail REIT, Inc. “Where America Shops”. On February 15, 2022, the Company will begin trading under the new ticker “RTL”. Information about The Necessity Retail REIT, Inc. (“RTL”), including news, SEC Filings and portfolio information can be found on the Company’s website at www.necessityretailreit.com.

 

“Today’s acquisition of 44 open-air shopping centers featuring necessity-retail tenants makes this the ideal time to complete our rebranding to The Necessity Retail REIT,” said Michael Weil, CEO of RTL. “Together with the previously announced disposition of three office buildings leased to Sanofi, which we sold in January at a 6.38% cash capitalization rate, we are well on our way to being the leading REIT that is focused on assets leased to necessity-retail tenants. Upon completing the Transaction, approximately 43% of our Pro-Forma SLR will come from high-growth markets, primarily in the Sun Belt, and our portfolio will be increasingly representative of where America shops every day, including a significant concentration on desirable grocery-anchored shopping centers. We look forward to acquiring the remaining properties in the Transaction later this quarter.”

 

Strategic and Financial Rationale for the Transaction

 

·Immediately Accretive to AFFO: Expected to be accretive immediately upon closing of the Transaction, adding significant scale and value with pandemic-tested assets

 

·Amplified Scale: Strategic acquisition of a 9.5 million square foot, 81-property portfolio of power, anchored, and grocery centers acquired for $1.3 billion

 

·Addition of Grocery Centers: 22% of Pro Forma multi-tenant SLR is derived from grocery centers, which is expected to enhance the desirability of the Company’s properties and ability to command strong rental rates

 

·Office Concentration Reduced to 1%: Opportunistic and accretive $261 million disposition of non-core Sanofi office asset at a price more than $10 million above the original purchase price, reducing Pro Forma SLR derived from office assets to 1% from 7%

 

 

 

 

 

Pro Forma Metrics1

 

After closing the Transaction, AFIN will be the preeminent retail REIT focused on Necessity-Based properties, consisting of tenants where Americans shop every day. The Pro Forma portfolio will feature:

 

·Real estate investments, at cost of approximately $5 billion, excluding closing costs
·1,048 properties totaling 28.8 million square feet
·Portfolio annualized straight-line rent of approximately $382 million
·Portfolio occupancy of 92.3%
·Multi-tenant occupancy of 89.5%, Executed Occupancy2 Plus Leasing Pipeline3 of 90.4%
·Portfolio weighted-average remaining lease term of 7.5 years
·Top ten tenant base that is 65% investment grade rated4
·1% office exposure
·The ten largest tenants are expected to be Truist (4% of annualized straight-line rent), Fresenius (3.9%), Mountain Express Oil Co. (3.5%), AmeriCold (3.4%), Home Depot (3.3%), PetSmart (2.6%), Stop & Shop (2.5%), Dick’s Sporting Goods (2.3%), Bob Evans (2.2%) and Best Buy (2.2%)
·The ten largest industries are expected to be Discount Retail (8% of annualized straight-line rent), Gas/Convenience (7%), Specialty Retail (7%), Healthcare (6%), Grocery (5%), Quick Service Restaurant (5%), Home Improvement (5%), Retail Banking (5%), Apparel Retail (5%), Full-Service Restaurant (4%)

 

Name Change

 

As of February 10, 2022 the Company changed its name to “The Necessity Retail REIT, Inc.” and rebranded as “The Necessity Retail REIT Where America Shops.” Beginning February 15, 2022 the Company’s Class A common stock (“Common Stock”), 7.50% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) and 7.375% Series C Cumulative Redeemable Perpetual Preferred Stock (“Series C Preferred Stock”) will begin trading on Nasdaq thereafter under the ticker symbols RTL, RTLPP and RTLPO, respectively.

 

 

 

 

Footnotes/Definitions

 

 

1 Pro Forma is as of September 30, 2021 and represents the combined AFIN and 81 property multi-tenant portfolio, including two single tenant assets for $16.5 million that encompass 86,810 square feet and $1.2 million of annualized straight-line rent, acquired and under the PSA with certain subsidiaries of CIM Real Estate Finance Trust, Inc. as of September 30, 2021, excluding AFIN’s Sanofi office asset which was sold in January.

 

2 Executed Occupancy includes Occupancy as of a particular date as well as all leases fully executed by both parties as of the same date where the tenant has yet to take possession as of such date. For Q3’21 and as of November 1, 2021, there are 15 additional leases executed where rent commences over time between the fourth quarter of 2021 and the first quarter of 2022 totaling approximately 122,000 square feet.

 

3 For AFIN, Leasing Pipeline for Q3’21 includes i) all leases fully executed by both parties as of November 1, 2021, but after September 30, 2021 and (ii) all leases under negotiation with an executed LOI by both parties as of November 1, 2021. This represents six LOIs totaling approximately 19,000 square feet. No lease terminations occurred during this period. For the Transaction and Q3’21, includes a 13,000 SF Leasing Pipeline acquired in the Transaction. There can be no assurance that LOIs will lead to definitive leases that will commence on their current terms, or at all. Leasing pipeline should not be considered an indication of future performance.

 

4 As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring a company’s probability of default. The term “parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of September 30, 2021 and based on annualized straight line rent.

  

About The Necessity Retail REIT Where America Shops

The Necessity Retail REIT (Nasdaq: RTL) is a publicly traded real estate investment trust listed on Nasdaq focused on acquiring and managing a diversified portfolio of primarily service-oriented and traditional retail and distribution related commercial real estate properties in the U.S. Additional information about RTL can be found on its website at www.necessityretailreit.com.

 

 

 

 

Important Notice

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. The words “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “may,” “will,” “seek,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the potential adverse effects of the ongoing global COVID-19 pandemic, including actions taken to contain or treat COVID-19, on the Company, the Company’s tenants, the assets under contract to be acquired including their respective tenants and the global economy and financial markets and that any potential future acquisition of property is subject to market conditions and capital availability and may not be identified or completed on favorable terms, or at all, as well as those risks and uncertainties set forth in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 25, 2021 and all other filings with the SEC after that date as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports including in particular the Company’s Current Report on Form 8-K dated December 20, 2021 and describing additional facts and risk factors relating to the transaction described in this release. In particular, the transactions described in this release are subject to closing conditions, including conditions that are outside of the Company’s control, and the transactions described in this release may not be completed on the contemplated terms, or at all, or they may be delayed. The Company may not be able to obtain financing to acquire the remaining properties. Forward looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law. 

  

Non-GAAP Financial Measures

 

This release discussed the non-GAAP financial measure Adjusted Funds From Operations (“AFFO”). A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net income, is provided on our press release furnished as Exhibit 99.1 with our Current Report on Form 8-K on November 3, 2021. In addition, please see the press release for statements as to why the Company believes that this measure is useful to investors and additional purposes for the Company’s use of this measure.

 

Contacts:

Investor Relations

ir@rtlreit.com

(866) 902-0063 

  

 

 

 

 

 

 

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Cover
Feb. 10, 2022
Document Information [Line Items]  
Document Type 8-K
Amendment Flag false
Document Period End Date Feb. 10, 2022
Current Fiscal Year End Date --12-31
Entity File Number 001-38597
Entity Registrant Name The Necessity Retail REIT, Inc.
Entity Central Index Key 0001568162
Entity Tax Identification Number 90-0929989
Entity Incorporation, State or Country Code MD
Entity Address, Address Line One 650 Fifth Avenue
Entity Address, Address Line Two 30th Floor
Entity Address, City or Town New York
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10019
City Area Code 212
Local Phone Number 415-6500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Information, Former Legal or Registered Name American Finance Trust, Inc.
Common Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Class A Common Stock, $0.01 par value
Trading Symbol RTL
Security Exchange Name NASDAQ
Series A Preferred Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security 7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value
Trading Symbol RTLPP
Security Exchange Name NASDAQ
Series C Preferred Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security 7.375% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share
Trading Symbol RTLPO
Security Exchange Name NASDAQ
Preferred Stock Purchase Rights [Member]  
Document Information [Line Items]  
Title of 12(b) Security Preferred Stock Purchase Rights
No Trading Symbol Flag true
Security Exchange Name NASDAQ
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