10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)
x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended December 31, 2016

 OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission file number: 000-55197

American Finance Trust, Inc.

(Exact name of registrant as specified in its charter) 

Maryland	90-0929989
(State or other  jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
405 Park Ave., 14th Floor, New York, New York	10022
(Address of principal executive offices)	(Zip Code)
(212) 415-6500
(Registrant's telephone number, including area code)
Securities registered pursuant to section 12(b) of the Act: None
Securities registered pursuant to section 12(g) of the Act: Common stock, $0.01 par value per share (Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer x (Do not check if a smaller reporting company)	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨ No x

There is no established public market for the registrant's shares of common stock.

As of February 28, 2017, the registrant had 104,329,255 shares of common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's proxy statement to be delivered to stockholders in connection with the registrant's 2017 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. The registrant intends to file its proxy statement within 120 days after its fiscal year end.

AMERICAN FINANCE TRUST, INC.

FORM 10-K

Year Ended December 31, 2016

		Page
PART I
Item 1.	Business.	1
Item 1A.	Risk Factors.	6
Item 1B.	Unresolved Staff Comments.	64
Item 2.	Properties.	64
Item 3.	Legal Proceedings.	73
Item 4.	Mine Safety Disclosures.	74
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	75
Item 6.	Selected Financial Data.	79
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	80
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk.	96
Item 8.	Financial Statements and Supplementary Data.	96
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.	96
Item 9A.	Controls and Procedures.	96
Item 9B.	Other Information.	97
PART III
Item 10.	Directors, Executive Officers and Corporate Governance.	98
Item 11.	Executive Compensation.	98
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	98
Item 13.	Certain Relationships and Related Transactions, and Director Independence.	98
Item 14.	Principal Accounting Fees and Services.	98
PART IV
Item 15.	Exhibits, Financial Statement Schedules.	99
Signatures		102

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Forward-Looking Statements

Certain statements included in this Annual Report on Form 10-K are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of American Finance Trust, Inc. (the "Company," "we" "our" or "us"), our Advisor and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

The following are some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements:

• The anticipated benefits from the Mergers (as defined below) with American Realty Capital — Retail Centers of America, Inc. ("RCA") may not be realized or may take longer to realize than expected.

• Unexpected costs or unexpected liabilities may arise from the Mergers.

• All of our executive officers are also officers, managers or holders of a direct or indirect controlling interest in American Finance Advisors, LLC (our "Advisor") or other entities under common control with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global" or our "Sponsor"). As a result, our executive officers, our Advisor and its affiliates face conflicts of interest, including significant conflicts created by our Advisor's compensation arrangements with us and other investment programs advised by affiliates of our Sponsor and conflicts in allocating time among these entities and us, which could negatively impact our operating results.

• Although we have announced our intention to list our shares of common stock on the New York Stock Exchange ("NYSE") at a time yet to be determined, there can be no assurance that our shares of common stock will be listed. No public market currently exists, or may ever exist, for shares of our common stock and our shares are, and may continue to be, illiquid.

• Our Advisor has not entered into an agreement with Lincoln Retail REIT Services, LLC ("Lincoln"), or any other party, to act as service provider for our stabilized core retail properties; the failure of our Advisor to enter into an agreement could adversely affect our ability to continue to make investments in, or manage, stabilized core retail properties.

• The performance of our retail portfolio is linked to the market for retail space generally and factors that may impact our retail tenants, such as the increasing use of the Internet by retailers and consumers.

• We depend on tenants for our rental revenue and, accordingly, our rental revenue is dependent upon the success and economic viability of our tenants.

• Our tenants may not achieve our rental rate incentives and our expenses could be greater, which may impact our results of operations.

• We have not generated, and in the future may not generate, operating cash flows sufficient to cover 100% of our distributions, and, as such, we may be forced to source distributions from borrowings, which may be at unfavorable rates, or depend on our Advisor to waive reimbursement of certain expenses or fees. There is no assurance that our Advisor will waive reimbursement of expenses or fees.

• We may be unable to pay or maintain cash distributions or increase distributions over time.

• We are obligated to pay fees, which may be substantial, to our Advisor and its affiliates.

• We are subject to risks associated with any dislocation or liquidity disruptions that may exist or occur in the credit markets of the United States of America.

• We may fail to continue to qualify to be treated as a real estate investment trust for U.S. federal income tax purposes ("REIT"), which would result in higher taxes, may adversely affect our operations and would reduce the value of an investment in our common stock and our cash available for distributions.

• We may be deemed by regulators to be an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act"), and thus subject to regulation under the Investment Company Act.

In addition, we describe risks and uncertainties that could cause actual results and events to differ materially in "Risk Factors" (Part I, Item 1A of this Annual Report on Form 10-K), "Quantitative and Qualitative Disclosures about Market Risk" (Part II, Item 7A), and "Management's Discussion and Analysis of Financial Conditions and Results of Operations" (Part II, Item 7).

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PART I

Item 1. Business.

We are a diversified REIT with a retail focus. We own a diversified portfolio of commercial properties which are net leased primarily to investment grade and other creditworthy tenants and a portfolio of stabilized core retail properties, consisting primarily of power centers and lifestyle centers, which were acquired in the Merger (as defined below). Prior to the Merger, we acquired a diversified portfolio of commercial properties comprised primarily of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants. We intend to focus our future acquisitions primarily on net leased retail properties and stabilized core retail properties. As of December 31, 2016, we owned 455 properties with an aggregate purchase price of $2.2 billion, comprised of 13.3 million rentable square feet, which were 100.0% leased. If the Merger and the disposition of the Merrill Lynch Properties (defined below) had been completed on December 31, 2016, we would have owned 487 properties comprised of 20.3 million rentable square feet, which would have been 97.3% leased, including 452 net leased commercial properties and 35 stabilized core retail properties.

Incorporated on January 22, 2013, we are a Maryland corporation that elected and qualified to be taxed as a REIT beginning with the taxable year ended December 31, 2013. Substantially all of our business is conducted through American Finance Operating Partnership, L.P. (the "OP"), a Delaware limited partnership, and its wholly-owned subsidiaries.

On April 4, 2013, we commenced our initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 68.0 million shares of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. The IPO closed in October 2013. As of December 31, 2016, we had 65.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to our distribution reinvestment plan (the "DRIP"), and had received total proceeds from the IPO and the DRIP, net of share repurchases, of $1.6 billion. In 2017, we issued approximately 38.2 million shares of common stock pursuant to the Merger.

On March 17, 2016, our board of directors approved an estimated net asset value per share of our common stock ("Estimated Per-Share NAV") equal to $24.17 as of December 31, 2015, which was published on March 18, 2016. Our shares of common stock have been approved for listing on the NYSE under the symbol "AFIN" (the "Listing"), subject to compliance with all applicable listing standards on the date it begins trading on the NYSE. Our approval for listing is valid through August 2017, although we may apply to extend the outside date for listing. While we intend to list our shares of common stock on the NYSE at a time yet to be determined by our board of directors, there can be no assurance as to when or if our common stock will commence trading on the NYSE.

We have no employees. We have retained the Advisor to manage our affairs on a day-to-day basis. American Finance Properties, LLC (the "Property Manager") serves as our property manager. The Advisor and the Property Manager are wholly owned subsidiaries of our Sponsor, as a result of which, they are related parties of ours, and each have received or may receive, as applicable, compensation, fees and expense reimbursements for services related to managing our business.

Completed Mergers and Significant Disposals

American Realty Capital — Retail Centers of America, Inc. Merger

On September 6, 2016, the Company and the OP entered into an Agreement and Plan of Merger (the “Merger Agreement”) with RCA, American Realty Capital Retail Operating Partnership, L.P. (the “RCA OP”) and Genie Acquisition, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (the “Merger Sub”). The Merger Agreement provided for (a) the merger of RCA with and into the Merger Sub (the “Merger”), with the Merger Sub surviving as a wholly owned subsidiary of the Company and (b) the merger of the RCA OP with and into the OP, with the OP as the surviving entity (the “Partnership Merger”, and together with the Merger, the “Mergers”). The Mergers became effective on February 16, 2017.

Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Mergers (the “Effective Time”), each outstanding share of common stock of RCA, $0.01 par value per share (“RCA Common Stock”) (including any restricted shares of RCA Common Stock and fractional shares), was converted into the right to receive (x) a number of shares of our common stock, $0.01 par value per share (the “Company Common Stock”) equal to 0.385 shares of Company Common Stock (the “Stock Consideration”) and (y) cash from us, in an amount equal to $0.95 per share (the “Cash Consideration,” and together with the Stock Consideration, the “Merger Consideration”).

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In addition, at the Effective Time, (i) each unit of partnership interest of the RCA OP designated as an OP Unit issued and outstanding immediately prior to the Effective Time (other than those held by RCA as described in clause (ii) below) was automatically converted into 0.424 validly issued units of limited partnership interest of the OP (the “Partnership Merger Consideration”); (ii) each unit of partnership interest of the RCA OP designated as either an OP Unit or a GP Unit held by RCA and issued and outstanding immediately prior to the Effective Time was automatically converted into 0.385 validly issued units of limited partnership interest of the OP; (iii) each unit of partnership interest of the RCA OP designated as a Class B Unit held by RCA’s advisor and a sub-advisor issued and outstanding immediately prior to the Effective Time was converted into the Partnership Merger Consideration (the “Class B Consideration,” and together with the Partnership Merger Consideration and the Merger Consideration, the “Total Merger Consideration”) and (iv) the interest of American Realty Capital Retail Advisor, LLC, the special limited partner of the RCA OP (the “RCA Advisor”), in the RCA OP was redeemed for a cash payment, determined in accordance with the existing terms of the RCA OP’s agreement of limited partnership.

In addition, as provided in the Merger Agreement, all outstanding restricted stock of RCA became fully vested and entitled to receive the Merger Consideration.

In 2017, we issued approximately 38.2 million shares of Company Common Stock as consideration in the Merger and paid approximately $94.3 million as Cash Consideration.

In connection with the execution of the Merger Agreement, the OP entered into a binding commitment, pursuant to which UBS Securities LLC, UBS AG, Stamford Branch and Citizens Bank, N.A. have committed to provide a $360.0 million bridge loan facility, subject to customary conditions. We did not borrow any funds under the bridge loan facility.

Prior to the Mergers, the Company and RCA each were sponsored, directly or indirectly, by AR Global. AR Global and its affiliates provide investment and advisory services to us, and previously provided such services to RCA, pursuant to written advisory agreements. In 2017, in connection with, and subject to the terms and conditions of the Merger Agreement, RCA OP units held by AR Global and its affiliates were exchanged for OP Units of the Company and certain special limited partner interests in the RCA OP held by AR Global and its affiliates were, consistent with the terms of the RCA OP partnership agreement, redeemed for a cash payment of approximately $2.8 million.

The RCA Advisor was previously party to a service agreement, a property management and a leasing agreement with an independent third party, Lincoln, a Delaware limited liability company, pursuant to which Lincoln provided, subject to the RCA Advisor's oversight, real estate-related services, including acquisition, disposition, asset management and property management services, and leasing and construction oversight, as needed. The RCA Advisor passed through to Lincoln a portion of the fees and/or other expense reimbursements payable to the RCA Advisor for the performance of certain real estate-related services. In connection with the Mergers, the Advisor engaged in discussions with Lincoln for the engagement of Lincoln as the service provider for certain of RCA’s retail properties that are now owned by us, such that Lincoln would provide acquisition, property management and leasing services related to such retail properties. However, the Advisor and Lincoln were unable to enter into a satisfactory definitive agreement prior to the closing of the Mergers, and, on February 16, 2017, RCA provided Lincoln with notice of termination of the service agreement, the property management agreement and the leasing agreement. The Advisor and Lincoln continue to engage in discussions related to Lincoln providing such retail properties certain services.

Merrill Lynch Disposition

We entered into a purchase and sale agreement dated as of October 11, 2016, as amended on November 10, 2016, November 18, 2016, November 23, 2016 and December 1, 2016, for the sale of three properties leased to Merrill Lynch, Pierce, Fenner & Smith (the "Merrill Lynch Properties") owned by us for a purchase price of $148.0 million, exclusive of closing costs. We consummated the disposition of the Merrill Lynch Properties on January 31, 2017. The disposal of the Merrill Lynch Properties does not represent a strategic shift.

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Investment Objectives

We seek to preserve and protect capital, provide attractive and stable cash distributions and increase the value of our assets in order to generate capital appreciation by using the following strategies:

• Retail Focused Portfolio, Including Single-Tenant Net Leased Properties — Acquiring freestanding single-tenant properties net leased to investment grade and other creditworthy tenants, which are expected to primarily consist of retail properties, and anchored, stabilized core retail properties, including power centers and lifestyle centers; however, we will not forgo opportunities to invest in other types of real estate investments that meet our overall investment objectives;

• Long-Term Leases — With respect to net leased properties, enter into long-term leases with minimum, non-cancelable lease terms of ten or more years;

• Commercial Real Estate ("CRE") Debt Investments — To a lesser extent, originate and acquire CRE Debt Investments;

• Low Leverage — Finance our portfolio opportunistically (taking advantage of opportunities as they arise) at a target leverage level of not more than 45% loan-to-value. Loan to value ratio is a lending risk assessment ratio that is examined before approving a mortgage and is calculated by dividing the mortgage amount by the appraised value of the property; and

• Diversified Portfolio — Assemble, manage and optimize a well diversified portfolio based on geography, tenant diversity, lease expirations, and other factors.

Acquisition and Investment Policies

Real Estate Investment Focus

We own a diversified portfolio with a retail focus comprised of commercial properties which are net leased primarily to investment grade and other creditworthy tenants and, as a result of the Mergers, a portfolio of stabilized core retail properties, consisting primarily of power centers and lifestyle centers.

Our investment objectives are (a) to provide current income for investors through the payment of cash distributions and (b) to preserve and return investors' capital and to maximize risk-adjusted returns. We do not expect to make investments outside of the United States.

There is no limitation on the number, size or type of properties that we may acquire. The number and mix of properties depend upon real estate market conditions and other circumstances existing at the time of acquisition of properties.

Investing in Real Property

We consider relevant real estate and financial factors when evaluating prospective investments in real property, including the location of the property, the leases and other agreements affecting the property, the creditworthiness of major tenants, its income-producing capacity, its physical condition, its prospects for appreciation, its prospects for liquidity, tax considerations and other factors. Our Advisor has substantial discretion with respect to the selection of specific investments, subject to board approval.

The following table lists the tenants (including, for this purpose, all affiliates of such tenants) from which we derive annualized rental income on a straight-line basis constituting 5.0% or more of our consolidated annualized rental income on a straight-line basis for all portfolio properties as of December 31, 2016:

Tenant	December 31, 2016
SunTrust Bank	17.7%
Sanofi US	11.4%
C&S Wholesale Grocer	10.2%
AmeriCold	7.7%
Merrill Lynch, Pierce, Fenner & Smith	7.7%
Stop & Shop	6.0%

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As of December 31, 2016, on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties, the following four major tenants had annualized rental income on a straight-line basis, which represented 5.0% or more of our consolidated annualized rental income on a straight-line basis including, for this purpose, all affiliates of such tenants:

Tenant	December 31, 2016
SunTrust Bank	11.7%
Sanofi	7.5%
C&S Wholesale Grocer	6.7%
AmeriCold	5.1%

Investing in Real Estate Securities

We may invest in securities of non-majority owned publicly traded and private companies primarily engaged in real estate businesses, including REITs and other real estate operating companies, and securities issued by pass-through entities of which substantially all the assets consist of REIT qualifying assets or real estate-related assets. We may purchase the common stock, preferred stock, debt, or other securities of these entities or options to acquire such securities. It is our intention that we be limited to investing no more than 20% of the aggregate value of our assets in publicly traded real estate equity or debt securities, including, but not limited to, commercial mortgage-backed securities ("CMBS"). However, any investment in equity securities (including any preferred equity securities) that are not traded on a national securities exchange or included for quotation on an inter-dealer quotation system, other than equity securities of a REIT or other real estate operating company, must be approved by a majority of directors, including a majority of independent directors, not otherwise interested in the transaction as fair, competitive and commercially reasonable.

Acquisition Structure

To date, we have acquired fee interests (a "fee interest" is the absolute, legal possession and ownership of land, property, or rights) and leasehold interests (a "leasehold interest" is a right to enjoy the exclusive possession and use of an asset or property for a stated definite period as created by a written lease) in properties. We anticipate continuing to do so if we acquire properties in the future, although other methods of acquiring a property may be utilized if we deem it to be advantageous. For example, we may acquire properties through a joint venture or the acquisition of substantially all of the interests of an entity which in turn owns the real property.

International Investments

We do not intend to invest in real estate outside of the United States or the Commonwealth of Puerto Rico or make other real estate investments related to assets located outside of the United States.

Development and Construction of Properties

We do not intend to acquire undeveloped land, develop new properties, or substantially redevelop existing properties.

Joint Ventures

We may enter into joint ventures, partnerships and other co-ownership arrangements (including preferred equity investments) for the purpose of making investments. Some of the potential reasons to enter into a joint venture would be to acquire assets we could not otherwise acquire, to reduce our capital commitment to a particular asset, or to benefit from certain expertise that a partner might have.

Our general policy is to invest in joint ventures only when we will have a right of first refusal to purchase the co-venturer's interest in the joint venture if the co-venturer elects to sell such interest. If the co-venturer elects to sell property held in any such joint venture, however, we may not have sufficient funds to exercise our right of first refusal to buy the other co-venturer's interest in the property held by the joint venture. If any joint venture with an affiliated entity holds interests in more than one property, the interest in each such property may be specifically allocated based upon the respective proportion of funds invested by each co-venturer in each such property.

Financing Strategies and Policies

We may obtain financing for acquisitions and investments at the time an asset is acquired or an investment is made, or at a later time. In addition, debt financing may be used from time to time for property improvements, tenant improvements, leasing commissions and other working capital needs. The form of our indebtedness for future financings will vary and could be long-term or short-term, secured or unsecured, or fixed-rate or floating rate. We will not enter into interest rate swaps or caps, or similar hedging transactions or derivative arrangements for speculative purposes but may do so in order to manage or mitigate our interest rate risks on variable rate debt. We expect to be able to secure various forms of fixed- and floating-rate debt financing, including mortgage financing secured by our portfolio, collateralized loan obligation issuances, bank financing and repo facilities.

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We will not borrow from our Advisor or its affiliates unless a majority of our directors, including a majority of our independent directors, not otherwise interested in the transaction approves the transaction as being fair, competitive and commercially reasonable and no less favorable to us than comparable loans between unaffiliated parties.

We may reevaluate and change our financing policies without a stockholder vote. Factors that we would consider when reevaluating or changing our debt policy include: then-current economic conditions, the relative cost and availability of debt and equity capital, our expected investment opportunities, the ability of our investments to generate sufficient cash flow to cover debt service requirements and other similar factors.

Tax Status

We elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with our taxable year ended December 31, 2013. We believe that, commencing with such taxable year, we have been organized and operated in a manner so that we qualify for taxation as a REIT under the Code. We intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to remain qualified as a REIT. In order to continue to qualify for taxation as a REIT, we must distribute annually at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with generally accepted accounting principles ("GAAP")), determined without regard for the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organizational and operational requirements. If we continue to qualify for taxation as a REIT, we generally will not be subject to federal corporate income tax on that portion of our REIT taxable income that we distribute to our stockholders. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and properties, and federal income and excise taxes on our undistributed income.

Competition

The net leased property and retail real estate markets are highly competitive. We compete for tenants in all of our markets with other owners and operators of retail real estate. We compete based on a number of factors that include location, rental rates, security, suitability of the property's design to prospective tenants' needs and the manner in which the property is operated and marketed. The number of competing properties in a particular market could have a material effect on our occupancy levels, rental rates and on the operating expenses of certain of our properties.

In addition, we compete with other entities engaged in real estate investment activities to locate suitable properties to acquire and to locate tenants and purchasers for our properties. These competitors include other REITs, specialty finance companies, savings and loan associations, banks, mortgage bankers, insurance companies, mutual funds, institutional investors, investment banking firms, lenders, governmental bodies and other entities. There are also other REITs with asset acquisition objectives similar to ours and others may be organized in the future. Some of these competitors, including larger REITs, have substantially greater marketing and financial resources than we have and generally may be able to accept more risk than we can prudently manage, including risks with respect to the creditworthiness of tenants. In addition, these same entities and our Company seek financing through similar channels. Therefore, we compete for financing in a market where funds for real estate investment may decrease.

Competition from these and other third party real estate investors may limit the number of suitable investment opportunities available to us. It also may result in higher prices, lower yields and a narrower spread of yields over our borrowing costs, making it more difficult for us to acquire new investments on attractive terms.

Regulations

Our investments are subject to various federal, state, local and foreign laws, ordinances and regulations, including, among other things, zoning regulations, land use controls, environmental controls relating to air and water quality, noise pollution and indirect environmental impacts such as increased motor vehicle activity. We believe that we have all permits and approvals necessary under current law to operate our investments.

Environmental

As an owner of real estate, we are subject to various environmental laws of federal, state and local governments. Compliance with existing laws has not had a material adverse effect on our financial condition or results of operations, and management does not believe it will have such an impact in the future. However, we cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on properties in which we hold an interest, or on properties that may be acquired directly or indirectly in the future. We hire third parties to conduct Phase I environmental reviews of the real property that we intend to purchase.

Employees

As of December 31, 2016, we had no employees. The employees of the Advisor and other entities under common control with our Sponsor perform a full range of real estate services for us, including acquisitions, property management, accounting, legal, asset management, wholesale brokerage and investor relations services.

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We are dependent on these companies for services that are essential to us, including asset acquisition decisions, property management and other general administrative responsibilities. In the event that any of these companies were unable to provide these services to us, we would be required to provide such services ourselves or obtain such services from other sources.

Financial Information About Industry Segments

Our current business consists of owning, managing, operating, leasing, acquiring, investing in and disposing of real estate assets. Substantially all of our consolidated revenues are from our consolidated real estate properties. We internally evaluate operating performance on an individual property level and view all of our real estate assets as one industry segment, and, accordingly, all of our properties are aggregated into one reportable segment. Our CRE Debt Investments, in aggregate, do not meet any of the consolidated quantitative thresholds that would require us to present their information separately, and thus we do not consider our CRE Debt Investments to be a reportable segment.

Available Information

We electronically file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports, and proxy statements, with the SEC. You may read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, D.C. 20549, or you may obtain information by calling the SEC at 1-800-SEC-0330. The SEC maintains an internet address at www.sec.gov that contains reports, proxy statements and information statements, and other information, which you may obtain free of charge. In addition, copies of our filings with the SEC may be obtained at www.americanfinancetrust.com. Access to these filings is free of charge. We are not incorporating our website or any information from the website into this Form 10-K.

Item 1A. Risk Factors.

Set forth below are the risk factors that we believe are material to our investors. The occurrence of any of the risks discussed in this Annual Report on Form 10-K could have a material adverse effect on our business, financial condition, results of operations, ability to pay distributions and the value of an investment in our common stock.

We incurred additional indebtedness upon completion of the Merger and may need to incur more in the future.

We incurred additional indebtedness upon completion of the Merger. At February 28, 2017, we had total outstanding indebtedness of approximately $1.5 billion. In addition, we may incur additional indebtedness in the future. The amount of this indebtedness could have material adverse consequences for the combined company, including:

•hindering our ability to adjust to changing market, industry or economic conditions;

• limiting our ability to access the capital markets to raise additional equity or refinance maturing debt on favorable terms or to fund acquisitions;

• limiting the amount of free cash flow available for future operations, acquisitions, distributions, stock repurchases or other users; and

•making the combined company more vulnerable to economic or industry downturns, including interest rate increases.

We incurred substantial expenses related to the Merger and may be unable to realize the anticipated benefits of the Merger or do so within the anticipated timeframe.

We incurred substantial expenses in connection with completing the Merger, including fees to the financial advisors to our and RCA’s special committees and expenses relating to accounting and legal fees and cost reimbursements. As a result, we may not achieve the anticipated benefits of the Merger.

The Merger involved the combination of two companies that previously operated as independent public companies. We will be required to devote significant management attention and resources to integrating RCA. Potential difficulties the combined company may encounter in the integration process include the following:

• the inability to successfully combine RCA’s business with ours in a manner that permits us to achieve the cost savings anticipated to result from the Merger, including the anticipated $10.9 million of annual savings in 2017;

• the complexities of combining two companies with different property types and tenant bases; and

• performance shortfalls as a result of diverting management’s time and attention to integrating each company’s operations.

Each of these may result in the anticipated benefits of the Merger not being realized in the timeframe anticipated or at all. In addition, the integration process could distract management’s focus, disrupting our ongoing business, which could, among other things, adversely affect the ability of the combined company to maintain relationships with tenants and vendors or to achieve the anticipated benefits of the Merger.

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The aggregate value of the combined company’s common stock may be lower than the combined aggregate value of our company and RCA on a standalone basis.

The value of our common stock may be lower than the combined aggregate value of our company and RCA on a standalone basis as a result of the Merger, particularly if we do not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by our management and our Advisor. Further, as a result of the Merger and the issuance of shares of our common stock in connection with the Merger, the total amount of cash required for us to pay distributions at the current rate will increase.

In addition, following the completion of the Merger, our stockholders and former RCA stockholders own interests in a combined company operating an expanded business with a different mix of properties, risks and liabilities. Either or both of our and RCA’s portfolios may have a lower value as part of a diversified company than they would on a standalone basis. There can be no assurance that the value of our common stock will equal or exceed our Estimated Per-Share NAV as of December 31, 2105 of $24.17.

We may incur adverse tax consequences if RCA failed to qualify as a REIT for U.S. federal income tax purposes.

If RCA failed to qualify as a REIT for U.S. federal income tax purposes at any time prior to the Merger, we may inherit significant tax liabilities and could lose our REIT status should disqualifying activities continue after the Merger.

Risks Related to Our Properties and Operations

Our future results will suffer if we do not effectively manage our expanded portfolio and operations following the Merger.

Following the Merger, we have an expanded portfolio with new property types and operations and we expect to continue to expand our operations through additional acquisitions and other strategic transactions. Our future success will depend, in part, upon our ability to manage our expansion opportunities, integrate new operations into our existing business in an efficient and timely manner, successfully monitor our operations, costs, regulatory compliance and service quality, and maintain other necessary internal controls. We cannot assure you that our expansion or acquisition opportunities will be successful, or that we will realize the expected operating efficiencies, cost savings, revenue enhancements, synergies or other benefits.

Based on annualized rental income on a straight-line basis and properties owned by us and by RCA as of December 31, 2016, approximately 39.0% of our properties are multi-tenant retail properties.

Prior to the Merger, we owned properties comprised primarily of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants. Following the Merger, as of December 31, 2016, on a pro forma basis, we would have owned a portfolio with 35 multi-tenant retail properties, representing 39.0% of the total properties based on annualized rental income on a straight-line basis. Therefore, following the Merger, our business is more dependent on the operations and management of these retail properties instead of net leased properties that historically have been driven by the credit quality of the underlying tenants. Multi-tenant retail properties are subject to increased risk relating to the operation of the property, including:

•risks affecting the retail industry generally;

•the reliance on anchor tenants; and

•competition with other retail channels, including e-commerce.

In addition, multi-tenant retail properties generally are not net leased, which will result in us bearing certain costs and expenses of these properties, as opposed to net leased properties that require tenants to bear all, or substantially all, of the costs and expenses of the properties.

Our stockholders are limited in their ability to sell their shares pursuant to our SRP and may have to hold their shares for an indefinite period of time, and stockholders who sell their shares to us under our SRP may receive less than the price they paid for the shares.

Our SRP includes numerous restrictions that limit a stockholder's ability to sell shares to us. The total value of repurchases pursuant to our SRP are limited to the amount of proceeds received from issuances of common stock pursuant to a distribution reinvestment plan. Further, repurchases in any fiscal semester are limited to 2.5% of the average number of shares outstanding during the previous fiscal year. Our board of directors may reject any request for repurchase of shares, or amend, suspend or terminate our SRP upon notice. Therefore, requests for repurchase under the SRP may not be accepted. Repurchases under the SRP will be based on Estimated Per Share NAV and may be at a substantial discount to the price the stockholder paid for the shares.

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We are dependent on our Advisor and our Property Manager to provide us with executive officers, key personnel and all services required for us to conduct our operations and our operating performance may be impacted by any adverse changes in the financial health or reputation of our Advisor.

We have no employees. Personnel and services that we require are provided to us under contracts with our Advisor and our Property Manager. We depend on our Advisor and our Property Manager to manage our operations and acquire and manage our portfolio of real estate assets. Our Advisor makes all decisions with respect to the management of our company, subject to the supervision of, and any guidelines established by, our board of directors.

Our success depends to a significant degree upon the contributions of certain of our executive officers and other key personnel of our Advisor, including Edward M. Weil, Jr. and Nicholas Radesca. Our Advisor does not have an employment agreement with any of these key personnel and we cannot guarantee that all, or any particular one, will remain affiliated with us and/or our Advisor. If any of our key personnel were to cease their affiliation with our Advisor, our operating results could suffer. This could occur, among other ways, if another AR Global-sponsored program internalizes its advisor. If that occurs, key personnel of our Advisor, who also are key personnel of the internalized advisor, could become employees of the other program and would no longer be available to our Advisor. Further, we do not intend to separately maintain key person life insurance on any person. We believe that our future success depends, in large part, upon our Advisor's ability to hire and retain highly skilled managerial, operational and marketing personnel. Competition for such personnel is intense, and we cannot assure our stockholders that our Advisor will be successful in attracting and retaining such skilled personnel. If our Advisor loses or is unable to obtain the services of key personnel, our ability to implement our investment strategies could be delayed or hindered, and the value of our stockholders' investments may decline.

On March 8, 2017, the creditor trust established in connection with the bankruptcy of RCS Capital Corp. (“RCAP”), which prior to its bankruptcy filing was under common control with the Advisor, filed suit against the Sponsor, the Advisor, advisors of other entities sponsored by the Sponsor, and the Sponsor’s principals (including Mr. Weil).  The suit alleges, among other things, certain breaches of duties to RCAP. The Company is not named in the suit, nor are there allegations related to the services the Advisor provides to the Company.  The Advisor has informed the Company that it believes the suit is without merit and intends to defend against it vigorously.

Any adverse changes in the financial condition or financial health of, or our relationship with, our Advisor, including any change resulting from an adverse outcome in any litigation, could hinder its ability to successfully manage our operations and our portfolio of investments. Additionally, changes in ownership or management practices, the occurrence of adverse events affecting our Advisor or its affiliates or other companies advised by our Advisor and its affiliates could create adverse publicity and adversely affect us and our relationship with lenders, tenants or counterparties.

If we internalize our management functions, we would be required to pay a substantial internalization fee and would not have the right to retain our management or personnel. We may be unable to obtain key personnel, and our ability to achieve our investment objectives could be delayed or hindered.

We may engage in an internalization transaction and become self-managed in the future. If we internalize our management functions, under the terms of our advisory agreement we would be required to pay a substantial internalization fee to our advisor and would not have the right to retain our management or personnel. An inability to manage an internalization transaction effectively could thus result in our incurring excess costs and suffering deficiencies in our disclosure controls and procedures or our internal control over financial reporting. Such deficiencies could cause us to incur additional costs, and our management's attention could be diverted from most effectively managing our investments, which could result in litigation and resulting associated costs in connection with the internalization transaction.

We may be unable to maintain cash distributions or increase distributions over time.

There are many factors that can affect the availability and timing of cash distributions to stockholders, including the amount of cash flows available from operations. The amount of cash available for distributions is affected by many factors, such as our ability to buy properties, rental income from such properties and our operating expense levels, as well as many other variables. Actual cash available for distributions may vary substantially from estimates. There is no assurance we will be able to maintain our current level of distributions or that distributions will increase over time. We cannot give any assurance that rents from the properties we acquire will increase, that the securities we buy will increase in value or provide constant or increased distributions over time, or that future acquisitions of real properties, mortgage, bridge or mezzanine loans or any investments in securities will increase our cash available for distributions to stockholders. Our actual results may differ significantly from the assumptions used by our board of directors in establishing the distribution rate to stockholders. We may not have sufficient cash from operations to make a distribution required to maintain our REIT status, which may materially adversely affect our stockholders' investments.

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Distributions paid from sources other than our cash flows from operations result in us having fewer funds available for the acquisition of properties and other real estate-related investments and may dilute your interests in us, which may adversely affect our ability to fund future distributions with cash flows from operations and may adversely affect your overall return.

Our cash flows provided by operations were $73.4 million for the year ended December 31, 2016. During the year ended December 31, 2016, we paid distributions of $108.0 million, of which 100.0% was funded from cash flows from operations and proceeds from issuances of common stock under our DRIP.

If we do not generate sufficient cash flows from our operations in the future we may have to reduce our distribution rate or fund distributions from other sources, such as from borrowings, the sale of properties, loans or securities, advances from our Advisor, and our Advisor's deferral, suspension or waiver of its fees and expense reimbursements, and we may continue to fund distributions with the proceeds from issuances of common stock pursuant to our DRIP. Moreover, our board of directors may change our distribution policy, in its sole discretion, at any time to either reduce the amount of distributions that we pay or use other sources to fund distributions such as borrowing monies, using the proceeds from asset sales or using the proceeds from the sale of shares, including shares sold under our DRIP. Funding distributions from borrowings could restrict the amount that we can borrow for investments. Funding distributions with the sale of assets may affect our ability to generate additional operating cash flows. Funding distributions from the sale of additional securities could dilute each stockholder's interest in us if we sell shares of our common stock or securities that are convertible or exercisable into shares of our common stock to third-party investors. Payment of distributions from these sources could restrict our ability to generate sufficient cash flows from operations, affect our profitability of affect the distributions payable to stockholders upon a liquidity event, any or all of which may have an adverse effect on an investment in our shares.

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Our rights and the rights of our stockholders to recover claims against our officers, directors and our Advisor are limited, which could reduce our and our stockholders' recovery against them if they cause us to incur losses.

Maryland law provides that a director has no liability in that capacity if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be in the corporation's best interests and with the care that an ordinarily prudent person in a like position would use under similar circumstances. In addition, subject to certain limitations set forth therein or under Maryland law, our charter provides that no director or officer will be liable to us or our stockholders for monetary damages and requires us to indemnify our directors, officers and Advisor and our Advisor's affiliates and permits us to indemnify our employees and agents. We have entered into an indemnification agreement formalizing our indemnification obligation with respect to our officers and directors and certain former officers and directors. However, our charter provides that we may not indemnify a director, our Advisor or an affiliate of our Advisor for any loss or liability suffered by any of them or hold harmless such indemnitee for any loss or liability suffered by us unless: (1) the indemnitee determined, in good faith, that the course of conduct that caused the loss or liability was in our best interests, (2) the indemnitee was acting on behalf of or performing services for us, (3) the liability or loss was not the result of (A) negligence or misconduct, in the case of a director (other than an independent director), the Advisor or an affiliate of the Advisor, or (B) gross negligence or willful misconduct, in the case of an independent director, and (4) the indemnification or agreement to hold harmless is recoverable only out of our net assets and not from our stockholders. Although our charter does not allow us to indemnify or hold harmless an indemnitee to a greater extent than permitted under Maryland law, we and our stockholders may have more limited rights against our directors, officers, employees and agents, and our Advisor and its affiliates, than might otherwise exist under common law, which could reduce the recovery of our stockholders and our recovery against them. In addition, we may be obligated to fund the defense costs incurred by our directors, officers, employees and agents or our Advisor and its affiliates in some cases which would decrease the cash otherwise available for distribution to our stockholders.

Our business could suffer in the event our Advisor or any other party that provides us with services essential to our operations experiences system failures or cyber-incidents or a deficiency in cybersecurity.

Despite system redundancy, the implementation of security measures and the existence of a disaster recovery plan for the internal information technology systems of our Advisor and other parties that provide us with services essential to our operations, these systems are vulnerable to damage from any number of sources, including computer viruses, unauthorized access, energy blackouts, natural disasters, terrorism, war and telecommunication failures. Any system failure or accident that causes interruptions in our operations could result in a material disruption to our business.

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A cyber-incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of information resources. More specifically, a cyber-incident is an intentional attack or an unintentional event that can result in third parties gaining unauthorized access to systems to disrupt operations, corrupt data, or steal confidential information. As reliance on technology in our industry has increased, so have the risks posed to the systems of our Advisor and other parties that provide us with services essential to our operations, both internal and those that have been outsourced. In addition, the risk of a cyber-incident, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted attacks and intrusions evolve and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected.

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The remediation costs and lost revenues experienced by a victim of a cyber-incident may be significant and significant resources may be required to repair system damage, protect against the threat of future security breaches or to alleviate problems, including reputational harm, loss of revenues and litigation, caused by any breaches. In addition, a security breach or other significant disruption involving the IT networks and related systems of our Advisor or any other party that provides us with services essential to our operations could:

• result in misstated financial reports, violations of loan covenants, missed reporting deadlines and/or missed permitting deadlines;

• affect our ability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT;

• result in the unauthorized access to, and destruction, loss. theft, misappropriation or release of, proprietary, confidential, sensitive or otherwise valuable information, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes;

• result in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space;

• require significant management attention and resources to remedy any damages that result;

• subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or

• adversely impact our reputation among our tenants and investors generally.

Although our Advisor and other parties that provide us with services essential to our operations intend to continue to implement industry-standard security measures, there can be no assurance that those measures will be sufficient, and any material adverse effect experienced by our Advisor and other parties that provide us with services essential to our operations could, in turn, have an adverse impact on us.

Risk Factors Relating to our Retail Portfolio

Prior to the Merger, RCA depended on Lincoln and its affiliates to manage and lease the retail properties and to make investments in these properties, acting on behalf of and under the oversight of our Advisor, pursuant to an agreement which has been terminated. There can be no assurance that our Advisor will enter into a new agreement with Lincoln or locate a suitable replacement service provider.

Prior to the Merger, RCA depended upon the ability of Lincoln and its affiliates, acting on behalf of and under the oversight of RCA Advisor, to locate suitable investments, manage its properties and select tenants for retail properties. In connection with the Mergers, the Advisor engaged in discussions with Lincoln for the engagement of Lincoln as the service provider for certain of RCA’s retail properties that are now owned by us, such that Lincoln would provide acquisition, property management and leasing services related to such retail properties. The Advisor and Lincoln were unable to enter into a satisfactory definitive agreement prior to the closing of the Mergers, and, on February 16, 2017, RCA provided Lincoln with notice of termination of the service agreement, the property management agreement and the leasing agreement. The failure of the Advisor to enter into an agreement could adversely affect our ability to continue to make investments in, or manage, the type of retail properties for which Lincoln previously provided services.

Our retail properties face competition that may affect tenants’ ability to pay rent.

Our retail properties typically are located in developed areas. In these cases, there are and will be numerous other properties within the market area of each of our properties that will compete with it for tenants. The number of competitive properties could have a material effect on our ability to rent space at its properties and the amount of rents charged. We could be adversely affected if additional competitive properties are built in locations competitive with its properties, causing increased competition for customer traffic and creditworthy tenants. This could result in decreased cash flows from tenants and may require us to make further capital improvements.

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Also, to the extent we are unable to renew leases or re-let space as leases expire, it would result in decreased cash flows from tenants and reduce the income produced by its properties. Excessive vacancies (and related reduced shopper traffic) at one of its properties may hurt sales of other tenants at that property and may discourage them from renewing leases.

Competition with other retail channels may reduce our profitability.

Our retail tenants face potentially changing consumer preferences and increasing competition from other forms of retailing, such as e-commerce, discount shopping centers, outlet centers, upscale neighborhood strip centers, catalogues and other forms of direct marketing, discount shopping clubs and telemarketing. Other retail centers within the market area of the combined company’s properties will compete with our properties for customers, affecting their tenants’ cash flows and thus affecting their ability to pay rent. In addition, some of our tenants’ rent payments may be based on the amount of sales revenue that they generate. If these tenants experience competition, the amount of their rent may decrease and cash flows will decrease.

The performance of our retail portfolio is linked to the market for retail space generally.

The market for retail space has been and could be adversely affected by weaknesses in the national, regional and local economies, the adverse financial condition of some large retailing companies, the ongoing consolidation in the retail sector, excess amounts of retail space in a number of markets and competition for tenants with other shopping centers in the markets. Customer traffic to these shopping areas may be adversely affected by the closing of stores in the same shopping center, or by a reduction in traffic to these stores resulting from a regional economic downturn, a general downturn in the local area where our property is located, or a decline in the desirability of the shopping environment of a particular retail property.

Further, a retail property’s revenues and value may be adversely affected by a number of factors, many of which apply to real estate investment generally, but which also include trends in the retail industry and perceptions by retailers or shoppers of the safety, convenience and attractiveness of the retail property. Our properties are public places and any incidents of crime or violence would result in a reduction of business traffic to tenant stores in our properties. Any such incidents may also expose us to civil liability. In addition, to the extent that the investing public has a negative perception of the retail sector, the value of our properties or the value of our common stock may be negatively impacted.

Some of our leases provide for base rent plus contractual base rent increases. A number of our retail leases also include a percentage rent clause for additional rent above the base amount based upon a specified percentage of the sales its tenants generate. Under those leases which contain percentage rent clauses, our revenue from tenants may increase as the sales of its tenants increase. Generally, retailers face declining revenues during downturns in the economy. As a result, the portion of our revenue which it may derive from percentage rent leases could be adversely affected by a general economic downturn.

Our revenue is impacted by the success and economic viability of our anchor retail tenants. Our reliance on single or significant tenants in certain buildings may decrease its ability to lease vacated space.

In the retail sector, any tenant occupying a large portion of the gross leasable area of a retail center, a tenant of any of the triple-net single-user retail properties outside the primary geographical area of investment, commonly referred to as an anchor tenant, or a tenant that is an anchor tenant at more than one retail center, may become insolvent, may suffer a downturn in business, or may decide not to renew its lease. Any of these events would result in a reduction or cessation in rental payments to us. A lease termination by an anchor tenant could result in lease terminations or reductions in rent by other tenants whose leases permit cancellation or rent reduction if another tenant’s lease is terminated. We own properties where the tenants may have rights to terminate their leases if certain other tenants are no longer open for business. These “co-tenancy” provisions also may exist in some leases where we own a portion of a retail property and one or more of the anchor tenants leases space in that portion of the center not owned or controlled by us. If these tenants were to vacate their space, tenants with co-tenancy provisions would have the right to terminate their leases or seek a rent reduction. In such event, we may be unable to re-lease the vacated space. Similarly, the leases of some anchor tenants may permit the anchor tenant to transfer its lease to another retailer. The transfer to a new anchor tenant could cause customer traffic in the retail center to decrease and thereby reduce the income generated by that retail center. Many expenses associated with properties (such as operating expenses and capital expenses) cannot be reduced when there is a reduction in income from the properties. A lease transfer to a new anchor tenant could also allow other tenants to make reduced rental payments or to terminate their leases at the retail center. If we are unable to re-lease the vacated space to a new anchor tenant, it may incur additional expenses in order to remodel the space to be able to re-lease the space to more than one tenant.

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Our operating results may be negatively affected by potential construction delays and resultant increased costs and risks.

If we construct improvements on acquired properties, we will be subject to uncertainties associated with re-zoning, environmental concerns of governmental entities and community groups, and the builder’s ability to build in conformity with plans, specifications, budgeted costs, and timetables. If a builder fails to perform, we may resort to legal action to rescind the purchase or the construction contract or to compel performance. A builder’s performance also may be affected or delayed by conditions beyond the builder’s control. Delays in completion of construction could also give tenants the right to terminate preconstruction leases. We may incur additional risks when it makes periodic progress payments or other advances to builders before they complete construction. These and other factors can result in increased costs of a project or the loss of an investment. We also must rely on rental income and expense projections and estimates of the fair market value of property upon completion of construction when agreeing upon a price at the time we acquire the property. If our projections are inaccurate, we may pay too much for a property, and the return on its investment could suffer.

Because most of our assets are public places, acts of terror, crimes, mass shootings and other incidents beyond our control may occur, which could result in a reduction of business traffic at our properties and could expose us to civil liability.

Because most of our assets are open to the public, the assets will be exposed to a number of incidents that may take place within their premises and that are beyond our control or ability to prevent, which may harm our consumers and visitors. If an act of terror, a mass shooting or other violence were to occur, we may lose tenants or be forced to close its assets for some time. If any of these incidents were to occur, the relevant asset could face material damage to its image and the property could experience a reduction of business traffic due to lack of confidence in the premises’ security. In addition, we may be exposed to civil liability and be required to indemnify the victims, and our insurance premiums could rise, any of which could adversely affect us.

Risks Related to Conflicts of Interest

We will be subject to conflicts of interest arising out of our relationships with our Advisor and its affiliates, including the material conflicts discussed below.

Our Advisor faces conflicts of interest relating to the acquisition of assets and leasing of properties, and such conflicts may not be resolved in our favor, meaning we could invest in less attractive assets, which could limit our ability to make distributions and reduce our stockholders' overall investment returns.

We rely on our Advisor and the executive officers and other key real estate professionals at our Advisor to identify suitable investment opportunities for us. Several of the other key real estate professionals of our Advisor are also the key real estate professionals of our Sponsor and their other public programs. Nicholas Radesca is the chief financial officer, treasurer and secretary of Global Net Lease, Inc., which has investment objectives which partially overlap with ours. Many investment opportunities that are suitable for us may also be suitable for other programs sponsored directly or indirectly by our Sponsor. Thus, the executive officers and real estate professionals of our Advisor could direct attractive investment opportunities to other entities or investors. Such events could result in us investing in properties that provide less attractive returns, which may reduce our ability to make distributions.

We and other programs sponsored directly or indirectly by our Sponsor also rely on these real estate professionals to supervise the property management and leasing of properties. Our executive officers and key real estate professionals are not prohibited from engaging, directly or indirectly, in any business or from possessing interests in any other business venture or ventures, including businesses and ventures involved in the acquisition, development, ownership, leasing or sale of real estate investments.

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Our Advisor faces conflicts of interest relating to joint ventures, which could result in a disproportionate benefit to the other venture partners at our expense and adversely affect the return on our stockholders' investments.

We may enter into joint ventures with other AR Global-sponsored programs for the acquisition, development or improvement of properties. Our Advisor may have conflicts of interest in determining which AR Global-sponsored program should enter into any particular joint venture agreement. The co-venturer may have economic or business interests or goals that are or may become inconsistent with our business interests or goals. In addition, our Advisor may face a conflict in structuring the terms of the relationship between our interests and the interest of the affiliated co-venturer and in managing the joint venture. Since our Advisor and its affiliates will control both the affiliated co-venturer and, to a certain extent, us, agreements and transactions between the co-venturers with respect to any such joint venture will not have the benefit of arm's-length negotiation of the type normally conducted between unrelated co-venturers, which may result in the co-venturer receiving benefits greater than the benefits that we receive. In addition, we may assume liabilities related to the joint venture that exceeds the percentage of our investment in the joint venture.

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Our Advisor, our Sponsor and their officers and employees and certain of our executive officers and other key personnel face competing demands relating to their time, and this may cause our operating results to suffer.

Our Advisor, our Sponsor and their officers and employees and certain of our executive officers and other key personnel and their respective affiliates are key personnel, general partners and sponsors of other real estate programs, including AR Global-sponsored REITs, having investment objectives and legal and financial obligations similar to ours and may have other business interests as well. Because these persons have competing demands on their time and resources, they may have conflicts of interest in allocating their time between our business and these other activities. If this occurs, the returns on our investments may suffer.

All of our executive officers, some of our directors and the key real estate and other professionals assembled by our Advisor and our Property Manager face conflicts of interest related to their positions or interests in affiliates of our Sponsor, which could hinder our ability to implement our business strategy and to generate returns to our stockholders.

All of our executive officers, some of our directors and the key real estate and other professionals assembled by our Advisor and Property Manager are also executive officers, directors, managers, key professionals or holders of a direct or indirect controlling interests in our Advisor and our Property Manager or other entities under common control with our Sponsor. As a result, they have loyalties to each of these entities, which loyalties could conflict with the fiduciary duties they owe to us and could result in action or inaction detrimental to our business. Conflicts with our business and interests are most likely to arise from (a) allocation of new investments and management time and services between us and the other entities, (b) our purchase of properties from, or sale of properties to, affiliated entities, (c) development of our properties by affiliates, (d) investments with affiliates of our Advisor, (e) compensation to our Advisor and (f) our relationship with our Advisor and our Property Manager. If we do not successfully implement our business strategy, we may be unable to generate the cash needed to make distributions to our stockholders and to maintain or increase the value of our assets.

We may be unable to terminate our advisory agreement, even for poor performance by our Advisor.

The advisory agreement with our Advisor, which was entered into on April 29, 2015 and amended and restated effective as of February 16, 2017, the date of the Merger has a twenty year term, which is automatically extended for successive 20 year terms, and may only be terminated under limited circumstances. This will make it difficult for us to renegotiate the terms of our advisory agreement or replace our advisor even if the terms of our agreement are no longer consistent with the terms offered to other REITs as the market for advisory services changes in the future.

The conflicts of interest inherent in the incentive fee structure of our arrangements with our Advisor and its affiliates could result in actions that are not necessarily in the long-term best interests of our stockholders.

Under our advisory agreement and the limited partnership agreement of our operating partnership, or the partnership agreement, American Finance Special Limited Partner, LLC (the "Special Limited Partner") and its affiliates will be entitled to fees, distributions and other amounts that are structured in a manner intended to provide incentives to our Advisor to perform in our best interests. However, because our Advisor does not maintain a significant equity interest in us and is entitled to receive substantial minimum compensation regardless of performance, its interests may not be wholly aligned with those of our stockholders. In addition, the advisory agreement provides for payment of incentive compensation based on exceeding certain Core Earnings thresholds in any period. Losses in one period do not affect this incentive compensation in subsequent periods. As a result, our Advisor could be motivated to recommend riskier or more speculative investments in order to increase Core Earnings and thus its fees. In addition, the Special Limited Partner and its affiliates' entitlement to fees and distributions upon the sale of our assets and to participate in sale proceeds could result in our Advisor recommending sales of our investments at the earliest possible time at which sales of investments would produce the level of return that would entitle our Advisor and its affiliates, including the Special Limited Partner, to compensation relating to such sales, even if continued ownership of those investments might be in our best long-term interest.

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Moreover, the partnership agreement requires our operating partnership to pay a performance-based termination distribution to the Special Limited Partner or its assignees if we terminate the advisory agreement, even for poor performance by our Advisor, prior to the listing of our shares for trading on an exchange or, absent such listing, in respect of its participation in net sales proceeds. To avoid paying this distribution, our independent directors may decide against terminating the advisory agreement prior to our listing of our shares or disposition of our investments even if, but for the termination distribution, termination of the advisory agreement would be in our best interest. Similarly, because this distribution would still be due even if we terminate the advisory agreement for poor performance, our Advisor may be incentivized to focus its resources and attention on other matters or otherwise fail to use its best efforts on our behalf. Upon Listing, we expect to cause the OP to issue a Listing Note, which will serve as evidence of the OP's obligation to distribute an amount to the Special Limited Partner calculated based on the market price of common stock during a 30-day trading period commencing 180 days after Listing, which may incentivize the Advisor to pursue short-term goals that may not be beneficial to us in the long term.

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In addition, the requirement to pay the distribution to the special limited partner or its assignees at termination could cause us to make different investment or disposition decisions than we would otherwise make, in order to satisfy our obligation to pay the distribution to the special limited partner or its assignees. Moreover, our Advisor will have the right to terminate the advisory agreement upon a change of control of our Company and thereby trigger the payment of the termination distribution, which could have the effect of delaying, deferring or preventing the change of control. Further, pursuant to our Outperformance Plan Agreement, our Advisor will be issued LTIP Units which will be eligible to be earned based on the achievement of certain total stockholder return thresholds, which could encourage our Advisor to recommend riskier or more speculative investments.

We disclose funds from operations and modified funds from operations, a non-GAAP financial measure, however, modified funds from operations is not equivalent to our net income or loss as determined under GAAP, and stockholders should consider GAAP measures to be more relevant to our operating performance.

We use as performance measures, and disclose in our filings, funds from operations ("FFO") and modified funds from operations ("MFFO"). FFO and MFFO are not equivalent to our net income or loss or cash flow from operations as determined under GAAP, and stockholders should consider GAAP measures to be more relevant to evaluating our operating performance or our ability to pay distributions. FFO and MFFO and GAAP net income differ because FFO and MFFO exclude gains or losses from sales of property and asset impairment write-downs, and add back depreciation and amortization, adjusts for unconsolidated partnerships and joint ventures, and further excludes acquisition-related expenses, amortization of above- and below-market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests.

Because of these differences, FFO and MFFO may not be accurate indicators of our operating performance. In addition, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and stockholders should not consider FFO and MFFO as alternatives to cash flows from operations, as an indication of our liquidity, or indicative of funds available to fund our cash needs, including our ability to pay distributions to our stockholders.

Neither the SEC nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO and MFFO. Also, because not all companies calculate FFO and MFFO the same way, comparisons with other companies may not be meaningful.

Risks Related to Our Corporate Structure

The limit on the number of shares a person may own may discourage a takeover that could otherwise result in a premium price to our stockholders.

Our charter, with certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve our qualification as a REIT. Unless exempted by our board of directors, no person may own more than 9.8% in value of the aggregate of our outstanding shares of our capital stock or more than 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of shares of our capital stock. This restriction may have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all our assets) that might provide a premium price for holders of our common stock.

18

Our charter permits our board of directors to authorize the issuance of stock with terms that may subordinate the rights of common stockholders or discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.

Our charter permits our board of directors to issue up to 350,000,000 shares of stock. In addition, our board of directors, without any action by our stockholders, may amend our charter from time to time to increase or decrease the aggregate number of shares or the number of shares of any class or series of stock that we have authority to issue. Our board of directors may classify or reclassify any unissued common stock or preferred stock into other classes or series and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of any such stock. Thus, our board of directors could authorize the issuance of preferred stock with terms and conditions that could have a priority as to distributions and amounts payable upon liquidation over the rights of the holders of our common stock. Preferred stock could also have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all our assets) that might provide a premium price for holders of our common stock.

19

Maryland law prohibits certain business combinations, which may make it more difficult for us to be acquired and may limit our stockholders' ability to exit the investment.

Under Maryland law, "business combinations" between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:

• any person who beneficially owns, directly or indirectly, 10% or more of the voting power of the corporation's outstanding voting stock; or

• an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding stock of the corporation.

A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which he or she otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by the board of directors.

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:

• 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

• two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

These super-majority vote requirements do not apply if the corporation's common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. The business combination statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors prior to the time that the interested stockholder becomes an interested stockholder. Pursuant to the statute, our board of directors has exempted any business combination involving our Advisor or any affiliate of our Advisor. Consequently, the five-year prohibition and the super-majority vote requirements will not apply to business combinations between us and our Advisor or any affiliate of our Advisor. As a result, our Advisor and any affiliate of our Advisor may be able to enter into business combinations with us that may not be in the best interest of our stockholders, without compliance with the super-majority vote requirements and the other provisions of the statute. The business combination statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.

20

Maryland law limits the ability of a third-party to buy a large stake in us and exercise voting power in electing directors, which may discourage a takeover that could otherwise result in a premium price to our stockholders.

The Maryland Control Share Acquisition Act provides that holders of "control shares" of a Maryland corporation acquired in a "control share acquisition" have no voting rights except to the extent approved by stockholders by the affirmative vote of at least stockholders entitled to cast two-thirds of the votes entitled to be cast on the matter. Shares of stock owned by the acquirer, by officers or by employees who are directors of the corporation, are excluded from shares entitled to vote on the matter. "Control shares" are voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer or in respect of which the acquirer can exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within specified ranges of voting power. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval or shares acquired directly from the corporation. A "control share acquisition" means the acquisition of issued and outstanding control shares. The control share acquisition statute does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction, or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation. Our bylaws contain a provision exempting from the Control Share Acquisition Act any and all acquisitions of our stock by any person. There can be no assurance that this provision will not be amended or eliminated at any time in the future.

21

Our stockholders' investment return may be reduced if we are required to register as an investment company under the Investment Company Act.

We are not registered, and do not intend to register ourselves or any of our subsidiaries, as an investment company under the Investment Company Act. If we become obligated to register ourselves or any of our subsidiaries as an investment company, the registered entity would have to comply with a variety of substantive requirements under the Investment Company Act imposing, among other things:

• limitations on capital structure;

• restrictions on specified investments;

• prohibitions on transactions with affiliates; and

• compliance with reporting, record keeping, voting, proxy disclosure and other rules and regulations that would significantly change our operations.

We conduct and intend to continue conducting our operations, directly and through wholly or majority-owned subsidiaries, so that we and each of our subsidiaries are exempt from registrations as an investment company under the Investment Company Act. Under Section 3(a)(1)(A) of the Investment Company Act, a company is an "investment company" if it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities. Under Section 3(a)(1)(C) of the Investment Company Act, a company is deemed to be an "investment company" if it is engaged, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and owns or proposes to acquire "investment securities" having a value exceeding 40% of the value of its total assets (exclusive of government securities and cash items) on an unconsolidated basis or the 40% test "Investment securities" excludes U.S. Government securities and securities of majority-owned subsidiaries that are not themselves investment companies and are not relying on the exception from the definition of investment company set forth in Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act.

Because we are primarily engaged in the business of acquiring real estate, we believe that we and most, if not all, of our wholly and majority-owned subsidiaries will not be considered investment companies under either Section 3(a)(1)(A) or Section 3(a)(1) (C) of the Investment Company Act. If we or any of our wholly or majority-owned subsidiaries would ever inadvertently fall within one of the definitions of "investment company," we intend to rely on the exception provided by Section 3(c)(5)(C) of the Investment Company Act.

Under Section 3(c)(5)(C), the SEC staff generally requires us to maintain at least 55% of our assets directly in qualifying assets and at least 80% of our assets in qualifying assets and in a broader category of real estate-related assets to qualify for this exception. Mortgage-related securities may or may not constitute such qualifying assets, depending on the characteristics of the mortgage-related securities, including the rights that we have with respect to the underlying loans. Our ownership of mortgage- related securities, therefore, is limited by provisions of the Investment Company Act and SEC staff interpretations.

The method we use to classify our assets for purposes of the Investment Company Act will be based in large measure upon no-action positions taken by the SEC staff in the past. These no-action positions were issued in accordance with factual situations that may be substantially different from the factual situations we may face, and a number of these no-action positions were issued more than ten years ago. No assurance can be given that the SEC staff will concur with our classification of our assets. In addition, the SEC staff may, in the future, issue further guidance that may require us to re-classify our assets for purposes of qualifying for an exclusion from regulation under the Investment Company Act. If we are required to re-classify our assets, we may no longer be in compliance with the exclusion from the definition of an "investment company" provided by Section 3(c)(5)(C) of the Investment Company Act.

22

A change in the value of any of our assets could cause us or one or more of our wholly or majority- owned subsidiaries to fall within the definition of "investment company" and negatively affect our ability to maintain our exemption from regulation under the Investment Company Act. To avoid being required to register the Company or any of its subsidiaries as an investment company under the Investment Company Act, we may be unable to sell assets we would otherwise want to sell and may need to sell assets we would otherwise wish to retain. In addition, we may have to acquire additional income- or loss-generating assets that we might not otherwise have acquired or may have to forgo opportunities to acquire interests in companies that we would otherwise want to acquire and would be important to our investment strategy.

If we were required to register the Company as an investment company but failed to do so, we would be prohibited from engaging in our business, and civil actions could be brought against us. In addition, our contracts would be unenforceable unless a court required enforcement, and a court could appoint a receiver to take control of us and liquidate our business.

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We are an "emerging growth company" under the federal securities laws and will be subject to reduced public company reporting requirements.

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 ("the JOBS Act"), and are eligible to take advantage of certain exemptions from, or reduced disclosure obligations relating to, various reporting requirements that are normally applicable to public companies.

We will remain an "emerging growth company" for up to five years, or until the earliest of (1) the last day of the first fiscal year in which we have total annual gross revenue of $1 billion or more, (2) December 31 of the fiscal year that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act (which would occur if the market value of our common stock held by non-affiliates exceeds $700 million, measured as of the last business day of our most recently completed second fiscal quarter, and we have been publicly reporting for at least 12 months) or (3) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period. Under the JOBS Act, emerging growth companies are not required to (1) provide an auditor's attestation report on management's assessment of the effectiveness of internal control over financial reporting, pursuant to Section 404 of the Sarbanes-Oxley Act, (2) comply with any new requirements adopted by the Public Company Accounting Oversight Board, ("PCAOB") that require mandatory audit firm rotation or a supplement to the auditor's report in which the auditor must provide additional information about the audit and the issuer's financial statements, (3) comply with new audit rules adopted by the PCAOB after April 5, 2012 (unless the SEC determines otherwise), (4) provide certain disclosures relating to executive compensation generally required for larger public companies or (5) hold stockholder advisory votes on executive compensation. We have not yet made a decision as to whether to take advantage of any or all of the JOBS Act exemptions that are applicable to us. If we do take advantage of any of these exemptions, we do not know if some investors will find our common stock less attractive as a result.

Additionally, the JOBS Act provides that an "emerging growth company" may take advantage of an extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies. This means an "emerging growth company" can delay adopting certain accounting standards until such standards are otherwise applicable to private companies. However, we have elected to "opt out" of such extended transition period, and will therefore comply with new or revised accounting standards on the applicable dates on which the adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of such extended transition period for compliance with new or revised accounting standards is irrevocable.

Our board of directors may change our investment policies without stockholder approval, which could alter the nature of our stockholders' investments.

Our charter requires that our independent directors review our investment policies at least annually to determine that the policies we are following are in the best interest of the stockholders. These policies may change over time. The methods of implementing our investment policies also may vary, as new real estate development trends emerge and new investment techniques are developed. Our investment policies, the methods for their implementation, and our other objectives, policies and procedures may be altered by our board of directors without the approval of our stockholders. As a result, the nature of our stockholders' investments could change without their consent.

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Because our Advisor is wholly owned by our Sponsor through the Special Limited Partner, the interests of our Advisor and our Sponsor are not separate and, as a result, our Advisor may act in a way that is not necessarily in our stockholders' interest.

Our Advisor is indirectly wholly owned by our Sponsor through the special limited partner. Therefore, the interests of our Advisor and our Sponsor are not separate and the Advisor's decisions may not be independent from the Sponsor and may result in the Advisor making decisions to act in ways that are not in our stockholders' interests.

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Our stockholders' interest in us will be diluted if we issue additional shares, which could adversely affect the value of their investments.

Our stockholders do not have preemptive rights to any shares issued by us in the future. Our charter currently authorizes us to issue 350,000,000 shares of stock, of which 300,000,000 shares are classified as common stock and 50,000,000 are classified as preferred stock. Subject to any limitations set forth under Maryland law, our board of directors may amend our charter from time to time to increase or decrease the aggregate number of authorized shares of stock or the number of authorized shares of any class or series of stock, or may classify or reclassify any unissued shares without the necessity of obtaining stockholder approval. All such shares may be issued in the discretion of our board of directors, except that the issuance of preferred stock must be approved by a majority of our independent directors not otherwise interested in the transaction, who will have access, at our expense, to our legal counsel or to independent legal counsel. Stockholders will suffer dilution of their equity investment in us, if we: (a) sell additional shares in the future, including those issued pursuant to any distribution reinvestment plan; (b) sell securities that are convertible into shares of our common stock; (c) issue shares of our common stock in a private offering of securities to institutional investors; (d) issue restricted share awards to our directors; (e) issue shares to our Advisor or its successors or assigns, in payment of an outstanding fee obligation as set forth under our advisory agreement; or (f) issue shares of our common stock to sellers of properties acquired by us in connection with an exchange of limited partnership interests of the OP, stockholders will likely experience dilution of their equity investment in us. In addition, the partnership agreement for the OP contains provisions that would allow, under certain circumstances, other entities, including other AR Global-sponsored programs, to merge into or cause the exchange or conversion of their interest for interests of the OP. Because the limited partnership interests of the OP may, in the discretion of our board of directors, be exchanged for shares of our common stock, any merger, exchange or conversion between the OP and another entity ultimately could result in the issuance of a substantial number of shares of our common stock, thereby diluting the percentage ownership interest of other stockholders.

Our stockholders' interest in us may be diluted if the price we pay in respect of shares repurchased under our SRP exceeds our Estimated Per-Share NAV.

The prices we pay for shares repurchased under our SRP may exceed the net asset value of the shares at the time of repurchase, which may reduce the NAV of the remaining shares.

Future offerings of equity securities which are senior to our common stock for purposes of dividend distributions or upon liquidation, may adversely affect the value of investments in our common stock.

In the future, we may attempt to increase our capital resources by making additional offerings of equity securities. Under our charter, we may issue, without stockholder approval, preferred stock or other classes of common stock with rights that could dilute the value of our stockholders' shares of common stock. Any issuance of preferred stock must be approved by a majority of our independent directors not otherwise interested in the transaction, who will have access, at our expense, to our legal counsel or to independent legal counsel. Upon liquidation, holders of our shares of preferred stock will be entitled to receive our available assets prior to distribution to the holders of our common stock. Additionally, any convertible, exercisable or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock and may result in dilution to owners of our common stock. Holders of our common stock are not entitled to preemptive rights or other protections against dilution. Our preferred stock, if issued, could have a preference on liquidating distributions or a preference on dividend payments that could limit our ability pay distributions to the holders of our common stock. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings.

Payment of fees to our Advisor and its affiliates reduces cash available for investment and distributions to our stockholders.

Our Advisor and its affiliates will perform services for us in connection with the offer and sale of the shares, the selection and acquisition of our investments, the management of our properties, the servicing of our mortgage, bridge or mezzanine loans, if any, and the administration of our other investments. They are paid substantial fees for these services, which reduces the amount of cash available for investment in properties or distribution to stockholders.

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We depend on our operating subsidiary and its subsidiaries for cash flow and are effectively structurally subordinated in right of payment to the obligations of such operating subsidiary and its subsidiaries, which could adversely affect our ability to make distributions to our stockholders.

We have no business operations of our own. Our only significant asset is and will be the general partnership interests of our OP. We conduct, and intend to conduct, all of our business operations through our OP. Accordingly, our only source of cash to pay our obligations is distributions from our OP and its subsidiaries of their net earnings and cash flows. We cannot assure our stockholders that our OP or its subsidiaries will be able to, or be permitted to, make distributions to us that will enable us to make distributions to our stockholders from cash flows from operations. Each of our OP's subsidiaries is a distinct legal entity and, under certain circumstances, legal and contractual restrictions may limit our ability to obtain cash from such entities. Therefore, in the event of our bankruptcy, liquidation or reorganization, our assets and those of our OP and its subsidiaries will be able to satisfy the claims of our stockholders only after all of our and our OPs and its subsidiaries liabilities and obligations have been paid in full.

The purchase price per share for shares issued pursuant to the DRIP and shares repurchased under the SRP will be based on the Estimated Per-Share NAV, which is based upon subjective judgments, assumptions and opinions about future events, and may not reflect the price our stockholders would receive for their shares in a market transaction.

We intend to publish a new Estimated Per-Share NAV as of December 31, 2016 shortly following the filing of this Annual Report on Form 10-K for the year ended December 31, 2016. Our Advisor has engaged an independent valuer to perform appraisals of our real estate assets in accordance with valuation guidelines established by our board of directors. As with any methodology used to estimate value, the valuation methodologies that will be used by any independent valuer to value our properties involve subjective judgments concerning factors such as comparable sales, rental and operating expense data, capitalization or discount rate, and projections of future rent and expenses.

Estimation of Estimated Per-Share NAV occurs periodically, at the discretion of our board of directors, provided that an estimate is published at least once annually. In connection with any periodic valuation, which are generally expected to be conducted annually, our Advisor's estimate of the value of our real estate and real estate-related assets is partly based on appraisals of our properties, which generally will only be appraised in connection with a periodic valuation. Any changes in value that may have occurred since the most recent periodic valuation will not be reflected in Estimated Per-Share NAV, and there may be a sudden change in the Estimated Per-Share NAV when new appraisals and other material events, such as the Merger are reflected. To the extent actual operating results differ from our original estimates, Estimated Per-Share NAV may be affected, but we will not retroactively or proactively adjust Estimated Per-Share NAV because our actual results from operations may be better or worse than what we previously budgeted for any period. If our actual operating results cause our NAV to change, such change will only be reflected in our Estimated Per-Share NAV when a periodic valuation is completed.

Because valuations only occur periodically, our Estimated Per-Share NAV, may not accurately reflect material events that would impact our NAV and may suddenly change materially if the appraised values of our properties change materially or the actual operating results differ from what we originally budgeted.

The Estimated Per-Share NAV may be lower or higher than the price of our shares of common stock on the NYSE.

Our Estimated Per-Share NAV does not represent, and we can give no assurance that, (1) the amount at which our shares will trade on a national securities exchange or a third party would pay to acquire the Company, (2) the amount a stockholder would obtain if he or she tried to sell his or her shares or (3) the amount stockholders would receive if we liquidated our assets and distributed the proceeds after paying all of its expenses and liabilities. In addition, our Estimated Per-Share NAV does not reflect events subsequent the date as of which Estimated Per-Share NAV is estimated that may have affected the value of our shares, such as the Merger, and therefore does not include the value of the properties acquired or the liabilities assumed in the Merger or otherwise take into consideration the effect of the Merger.

Our shares of common stock are approved for listing on the NYSE and have never been traded on a national securities exchange and as such have no trading history and there can be no assurance that the trading price of our common stock will equal or exceed Estimated Per-Share NAV.

Our shares of common stock are approved for listing on the NYSE. Presently there is not an established market for our shares. Our approval for listing is valid through August 2017 and we may apply to extend the outside date for listing. Our Board has not yet determined when it will request that our common stock be listed and commence trading and any decision with respect to the timing of listing will be based on market conditions and other factors. There can be no assurance when our common stock will commence trading on the NYSE or as to the price at which our common stock will trade. There can be no assurance that the trading price of our common stock will equal or exceed our Estimated Per-Share NAV as of December 31, 2015 of $24.17 and may differ significantly from our Estimated Per-Share NAV.

27

The current lack of liquidity for shares of our common stock, and the lack of liquidity for RCA’s common stock prior to the Merger, could adversely affect the market price of our common stock upon listing.

Because there is no established market for our shares of common stock, and there was no established market for RCA's shares of common stock, any stockholders wishing to exit their investment have not had the opportunity to do so. Once our common stock is listed on the NYSE, these stockholders and other will have the ability to sell their shares of common stock. Sales of substantial amounts of shares of our common stock, or the perception that such sales might occur could result in downward pressure on the price of our common stock.

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General Risks Related to Investments in Real Estate

Our operating results are affected by economic and regulatory changes that have an adverse impact on the real estate market in general, and we cannot assure our stockholders that we will be profitable or that we will realize growth in the value of our real estate properties.

Our operating results are subject to risks generally incident to the ownership of real estate, including:

• changes in general, economic or local conditions;

• changes in supply of or demand for similar or competing properties in an area;

• changes in interest rates and availability of permanent mortgage funds that may render the sale of a property difficult or unattractive;

• changes in tax, real estate, environmental and zoning laws; and

• periods of high interest rates and tight money supply.

These and other risks may prevent us from being profitable or from realizing growth or maintaining the value of our real estate properties.

A major tenant, including a tenant with leases in multiple locations, may fail to make rental payments to us, because of a deterioration of its financial condition or otherwise, or may choose not to renew its lease.

Our ability to generate cash from operations is dependent on the rents that we are able to charge and collect from our tenants. While we evaluate the creditworthiness of our tenants by reviewing available financial and other pertinent information, there can be no assurance that any tenant will be able to make timely rental payments or avoid defaulting under its lease. At any time, our tenants may experience an adverse change in their business. If any of our tenants' business experience significant adverse changes, they may decline to extend or renew leases upon expiration, fail to make rental payments when due, close a number of stores, exercise early termination rights (to the extent such rights are available to the tenant) or declare bankruptcy. If a tenant defaults, we may experience delays in enforcing our rights as landlord and may incur substantial costs in protecting our investment.

If any of the foregoing were to occur, it could result in the termination of the tenant's leases and the loss of rental income attributable to the terminated leases. If a lease is terminated or defaulted on, we may be unable to find a new tenant to re-lease the vacated space at attractive rents or at all, which would have a material adverse effect on our results of operations and our financial condition. Furthermore, the consequences to us would be exacerbated if one of our tenants with leases in multiple locations were to terminate or default on their leases. The occurrence of any of the situations described above would have a material adverse effect on our results of operations and our financial condition.

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We rely significantly on six major tenants (including, for this purpose, all affiliates of such tenants) and therefore, are subject to tenant credit concentrations that make us more susceptible to adverse events with respect to those tenants.

As of December 31, 2016, without considering the impact of the Merger, the following six major tenants had annualized rental income on a straight-line basis, which represented 5.0% or more of our consolidated annualized rental income on a straight-line basis including, for this purpose, all affiliates of such tenants:

Tenant	December 31, 2016
SunTrust Bank	17.7%
Sanofi US	11.4%
C&S Wholesale Grocer	10.2%
AmeriCold	7.7%
Merrill Lynch, Pierce, Fenner & Smith	7.7%
Stop & Shop	6.0%

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As of December 31, 2016, on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties, the following four major tenants had annualized rental income on a straight-line basis, which represented 5.0% or more of our consolidated annualized rental income on a straight-line basis including, for this purpose, all affiliates of such tenants:

Tenant	December 31, 2016
SunTrust Bank	11.7%
Sanofi	7.5%
C&S Wholesale Grocer	6.7%
AmeriCold	5.1%

Therefore, a default or lease termination by any of these tenants could have a material adverse effect on our results of operations and our financial condition. In addition, the value of our investment is historically driven by the credit quality of the underlying tenant, and an adverse change in either the tenant's financial condition or a decline in the credit rating of such tenant may result in a decline in the value of our investments.

We are subject to tenant geographic concentrations that make us more susceptible to adverse events with respect to certain geographic areas.

As of December 31, 2016, properties concentrated in the following states accounted for annualized rental income on a straight-line basis equal to 5.0% or more of our consolidated annualized rental income on a straight-line basis:

State	December 31, 2016
New Jersey	20.0%
Georgia	11.0%
Massachusetts	8.1%
Florida	7.6%
North Carolina	6.6%
Alabama	5.4%

As of December 31, 2016, on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties, properties concentrated in the following states accounted for annualized rental income on a straight-line basis equal to 5.0% or more of our consolidated annualized rental income on a straight-line basis:

State	December 31, 2016
North Carolina	9.0%
Florida	8.5%
New Jersey	8.1%
Georgia	7.3%
Alabama	6.5%
Texas	6.0%
Massachusetts	5.3%

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As of December 31, 2016, our tenants operated in 37 states. Any adverse situation that disproportionately affects the states listed above may have a magnified adverse effect on our portfolio. Factors that may negatively affect economic conditions in these states include:

• business layoffs or downsizing;

• industry slowdowns;

• relocations of businesses;

• changing demographics;

• increased telecommuting and use of alternative work places;

• infrastructure quality;

• any oversupply of, or reduced demand for, real estate;

• concessions or reduced rental rates under new leases for properties where tenants defaulted; and

• increased insurance premiums.

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If a tenant declares bankruptcy, we may be unable to collect balances due under relevant leases, which could adversely affect our financial condition and ability to make distributions to our stockholders.

Any of our tenants, or any guarantor of a tenant's lease obligations, could be subject to a bankruptcy proceeding pursuant to Title 11 of the bankruptcy laws of the United States. Such a bankruptcy filing would bar all efforts by us to collect pre-bankruptcy debts from these entities or their properties, unless we receive an enabling order from the bankruptcy court. Post-bankruptcy debts would be paid currently. If a lease is assumed, all pre-bankruptcy balances owing under it must be paid in full. If a lease is rejected by a tenant in bankruptcy, we would have a general unsecured claim for damages. If a lease is rejected, it is unlikely we would receive any payments from the tenant because our claim is capped at the rent reserved under the lease, without acceleration, for the greater of one year and 15% of the remaining term of the lease, but not greater than three years, plus rent already due but unpaid. This claim could be paid only if funds were available, and then only in the same percentage as that realized on other unsecured claims.

A tenant or lease guarantor bankruptcy could delay efforts to collect past due balances under the relevant leases, and could ultimately preclude full collection of these sums. Such an event could cause a decrease or cessation of rental payments that would mean a reduction in our cash flow and the amount available for distributions to our stockholders. In the event of a bankruptcy, we cannot assure our stockholders that the tenant or its trustee will assume our lease. If a given lease, or guaranty of a lease, is not assumed, our cash flow and the amounts available for distributions to our stockholders may be adversely affected.

If a sale-leaseback transaction is re-characterized in a tenant's bankruptcy proceeding, our financial condition and ability to make distributions to our stockholders could be adversely affected.

We may enter into sale-leaseback transactions, whereby we would purchase a property and then lease the same property back to the person from whom we purchased it. In the event of the bankruptcy of a tenant, a transaction structured as a sale-leaseback may be re-characterized as either a financing or a joint venture, either of which outcomes could adversely affect our business. If the sale-leaseback were re-characterized as a financing, we might not be considered the owner of the property, and as a result would have the status of a creditor in relation to the tenant. In that event, we would no longer have the right to sell or encumber our ownership interest in the property. Instead, we would have a claim against the tenant for the amounts owed under the lease, with the claim arguably secured by the property. The tenant/debtor might have the ability to propose a plan restructuring the term, interest rate and amortization schedule of its outstanding balance. If confirmed by the bankruptcy court, we could be bound by the new terms, and prevented from foreclosing our lien on the property. If the sale-leaseback were re-characterized as a joint venture, our lessee and we could be treated as co-venturers with regard to the property. As a result, we could be held liable, under some circumstances, for debts incurred by the lessee relating to the property. Either of these outcomes could adversely affect our cash flow and the amount available for distributions to our stockholders.

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Recharacterization of sale-leaseback transactions may cause us to lose our REIT status.

If we enter into sale-leaseback transactions, we will use commercially reasonable efforts to structure any such sale-leaseback transaction such that the lease will be characterized as a "true lease" for tax purposes, thereby allowing us to be treated as the owner of the property for U.S. federal income tax purposes. However, we cannot assure our stockholders that the Internal Revenue Service (the "IRS") will not challenge such characterization. In the event that any such sale-leaseback transaction is challenged and recharacterized as a financing transaction or loan for U.S. federal income tax purposes, deductions for depreciation and cost recovery relating to such property would be disallowed. If a sale-leaseback transaction were so recharacterized, we might fail to satisfy the REIT qualification "asset tests" or "income tests" and, consequently, lose our REIT status effective with the year of recharacterization. Alternatively, the amount of our REIT taxable income could be recalculated which might also cause us to fail to meet the distribution requirement for a taxable year.

Properties may have vacancies for a significant period of time.

A property may incur vacancies either by the continued default of tenants under their leases or the expiration of tenant leases. If vacancies continue for a long period of time, we may suffer reduced revenues resulting in less cash to be distributed to stockholders. In addition, because properties' market values depend principally upon the value of the properties' leases, the resale value of properties with prolonged vacancies could decline significantly.

We may obtain only limited warranties when we purchase a property and would have only limited recourse if our due diligence did not identify any issues that lower the value of our property, which could adversely affect our financial condition and ability to make distributions to our stockholders.

The seller of a property often sells such property in its "as is" condition on a "where is" basis and "with all faults," without any warranties of merchantability or fitness for a particular use or purpose. In addition, purchase agreements may contain only limited warranties, representations and indemnifications that will only survive for a limited period after the closing. The purchase of properties with limited warranties increases the risk that we may lose some or all our invested capital in the property as well as the loss of rental income from that property.

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We may be unable to secure funds for future tenant improvements or capital needs.

We will be required to expend substantial funds for tenant improvements and tenant refurbishments to retain existing tenants or attract new tenants. In addition, we are responsible for any major structural repairs, such as repairs to the foundation, exterior walls and rooftops at all of our properties. Accordingly, if we need additional capital in the future to improve or maintain our properties or for any other reason, we will have to obtain financing from sources, such as cash flow from operations, borrowings, property sales or future equity offerings. These sources of funding may not be available on attractive terms or at all. If we cannot procure additional funding for capital improvements, our investments may generate lower cash flows or decline in value, or both.

We may be unable to sell a property when we desire to do so.

The real estate market is affected by many factors, such as general economic conditions, availability of financing, interest rates and other factors, including supply and demand, that are beyond our control. We cannot predict whether we will be able to sell any property for the price or on the terms set by us, or whether any price or other terms offered by a prospective purchaser would be acceptable to us. We cannot predict the length of time needed to find a willing purchaser and to close the sale of a property.

We may be required to expend funds to correct defects or to make improvements before a property can be sold. We cannot assure our stockholders that we will have funds available to correct such defects or to make such improvements. Moreover, in acquiring a property, we may agree to restrictions that prohibit the sale of that property for a period of time or impose other restrictions, such as a limitation on the amount of debt that can be placed or repaid on that property. These provisions would restrict our ability to sell a property.

We may acquire or finance properties with lock-out provisions, which may prohibit us from selling a property, or may require us to maintain specified debt levels for a period of years on some properties.

Lock-out provisions could materially restrict us from selling or otherwise disposing of or refinancing properties. These provisions would affect our ability to turn our investments into cash and thus affect cash available for distributions to our stockholders. Lock out provisions may prohibit us from reducing the outstanding indebtedness with respect to any properties, refinancing such indebtedness on a non-recourse basis at maturity, or increasing the amount of indebtedness with respect to such properties. Lock-out provisions could impair our ability to take other actions during the lock-out period that could be in the best interests of our stockholders and, therefore, may have an adverse impact on the value of the shares, relative to the value that would result if the lock-out provisions did not exist. In particular, lock-out provisions could preclude us from participating in major transactions that could result in a disposition of our assets or a change in control even though that disposition or change in control might be in the best interests of our stockholders.

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Rising expenses could reduce cash flow and funds available for future acquisitions and other uses.

The properties that we own or may acquire are subject to operating risks common to real estate in general, any or all of which may negatively affect us. If any property is not fully occupied or if rents are being paid in an amount that is insufficient to cover operating expenses, we could be required to expend funds with respect to that property for operating expenses. We may experience increases in tax rates, utility costs, operating expenses, insurance costs, repairs and maintenance and administrative expenses. Retail properties generally are not leased on a triple-net basis, therefore we are required to pay operating expenses. Renewals of leases or future leases for our net lease properties may not be negotiated on a triple-net basis or on a basis requiring the tenants to pay all or some of such expenses, in which event we may have to pay those costs. If we are unable to lease properties on a triple-net-lease basis or on a basis requiring the tenants to pay all or some of such expenses, or if tenants fail to pay required tax, utility and other impositions, we could be required to pay those costs.

Uninsured losses relating to real property or excessively expensive premiums for insurance coverage, including due to the non-renewal of the Terrorism Risk Insurance Act of 2002 ("TRIA"), could reduce our cash flows and the return on our stockholders' investments.

There are types of losses, generally catastrophic in nature, such as losses due to wars, acts of terrorism, earthquakes, floods, hurricanes, pollution or environmental matters, that are uninsurable or not economically insurable, or may be insured subject to limitations, such as large deductibles or co-payments. Insurance risks associated with such catastrophic events could sharply increase the premiums we pay for coverage against property and casualty claims.

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This risk is particularly relevant with respect to potential acts of terrorism. The TRIA, under which the U.S. federal government bears a significant portion of insured losses caused by terrorism, will expire on December 31, 2020, and there can be no assurance that Congress will act to renew or replace the TRIA following its expiration. In the event the TRIA is not renewed or replace, terrorism insurance may become difficult or impossible to obtain at reasonable costs or at all, which may result in adverse impacts and additional costs to us.

Changes in the cost or availability of insurance due to the non-renewal of the TRIA or for other reasons could expose us to uninsured casualty losses. If any of our properties incurs a casualty loss that is not fully insured, the value of our assets will be reduced by any such uninsured loss, which may reduce the value of an investment in our shares. In addition, other than any working capital reserve or other reserves we may establish, we have no source of funding to repair or reconstruct any uninsured property. Also, to the extent we must pay unexpectedly large amounts for insurance, we could suffer reduced earnings that would result in lower distributions to stockholders.

Additionally, mortgage lenders insist in some cases that commercial property owners purchase coverage against terrorism as a condition for providing mortgage loans. Accordingly, to the extent terrorism risk insurance policies are not available at reasonable costs, if at all, our ability to finance or refinance our properties could be impaired. In such instances, we may be required to provide other financial support, either through financial assurances or self-insurance, to cover potential losses. We may not have adequate, or any, coverage for such losses.

Terrorist attacks and other acts of violence, civilian unrest or war may affect the markets in which we operate, our operations and our profitability.

We may acquire real estate assets located in areas throughout the United States in major metropolitan areas as well as densely populated sub-markets that are susceptible to terrorist attack. In addition, any kind of terrorist activity or violent criminal acts, including terrorist acts against public institutions or buildings or modes of public transportation (including airlines, trains or buses) could have a negative effect on our business. These events may directly impact the value of our assets through damage, destruction, loss or increased security costs. Although we may obtain terrorism insurance, we may not be able to obtain sufficient coverage to fund any losses we may incur. The TRIA, which was designed for a sharing of terrorism losses between insurance companies and the federal government, will expire on December 31, 2020, and there can be no assurance that Congress will act to renew or replace it. See "-Uninsured losses relating to real property or excessively expensive premiums for insurance coverage, including due to the non-renewal of the Terrorism Risk Insurance Act of 2002 ("TRIA"), could reduce our cash flows and the return on our stockholders' investments."

More generally, any terrorist attack, other act of violence or war, including armed conflicts, could result in increased volatility in, or damage to, the worldwide financial markets and economy. Increased economic volatility could adversely affect our properties' ability to conduct their operations profitably or our ability to borrow money or issue capital stock at acceptable prices and have a material adverse effect on our financial condition, results of operations and ability to pay distributions to our stockholders.

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Real estate related taxes may increase and we may not be able to pass these increases on to tenants.

Some local real property tax assessors may seek to reassess some of our properties as a result of our acquisition of the property. Generally, from time to time our property taxes increase as property values or assessment rates change or for other reasons deemed relevant by the assessors. An increase in the assessed valuation of a property for real estate tax purposes will result in an increase in the related real estate taxes on that property. There is no assurance that leases will be negotiated on a same basis that passes such tax onto the tenant, which would increase our expenses.

Covenants, conditions and restrictions may restrict our ability to operate a property, which may adversely affect our operating costs.

Some of our properties may be contiguous to other parcels of real property, comprising part of the same commercial center. In connection with such properties, there are significant covenants, conditions and restrictions ("CC&Rs") restricting the operation of such properties and any improvements on such properties, and related to granting easements on such properties. Moreover, the operation and management of the contiguous properties may impact such properties. Compliance with CC&Rs may adversely affect our operating costs and reduce the amount of funds that we have available to pay distributions.

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Our operating results may be negatively affected by potential development and construction delays and resultant increased costs and risks.

We may acquire and develop properties upon which we will construct improvements. We will be subject to uncertainties associated with re-zoning for development, environmental concerns of governmental entities and/or community groups, and our builder's ability to build in conformity with plans, specifications, budgeted costs, and timetables. If a builder fails to perform, we may resort to legal action to rescind the purchase or the construction contract or to compel performance. A builder's performance also may be affected or delayed by conditions beyond the builder's control. Delays in completion of construction could also give tenants the right to terminate preconstruction leases. We may incur additional risks when we make periodic progress payments or other advances to builders before they complete construction. These and other factors can result in increased costs of a project or loss of our investment. In addition, we will be subject to normal lease-up risks relating to newly constructed projects. We also must rely on rental income and expense projections and estimates of the fair market value of property upon completion of construction when agreeing upon a price at the time we acquire the property. If our projections are inaccurate, we may pay too much for a property, and our return on our investment could suffer.

We may invest in unimproved real property. For purposes of this paragraph, "unimproved real property" does not include properties acquired for the purpose of producing rental or other operating income, properties under development or construction, and properties under contract for development or in planning for development within one year. Returns from development of unimproved properties are also subject to risks associated with re-zoning the land for development and environmental concerns of governmental entities and/or community groups. If we invest in unimproved property other than property we intend to develop, our stockholders' investments will be subject to the risks associated with investments in unimproved real property.

Competition with third parties in acquiring properties and other investments may reduce our profitability and the return on our stockholders' investments.

We compete with many other entities engaged in real estate investment activities, including individuals, corporations, bank and insurance company investment accounts, other REITs, real estate limited partnerships, and other entities engaged in real estate investment activities, many of which have greater resources than we do. Larger REITs may enjoy significant competitive advantages that result from, among other things, a lower cost of capital and enhanced operating efficiencies. In addition, the number of entities and the amount of funds competing for suitable investments may increase. Any such increase would result in increased demand for these assets and therefore increased prices paid for them. If we pay higher prices for properties and other investments, our profitability will be reduced and our stockholders may experience a lower return on their investments.

Our properties face competition that may affect tenants' ability to pay rent and the amount of rent paid to us may affect the cash available for distributions and the amount of distributions.

Our properties face competition for tenants. The number of competitive properties could have a material effect on our ability to rent space at our properties and the amount of rents charged. We could be adversely affected if additional competitive properties are built in locations competitive with our properties, causing increased competition for customer traffic and creditworthy tenants. This could result in decreased cash flow from tenants and may require us to make capital improvements to properties that we would not have otherwise made, thus affecting cash available for distributions, and the amount available for distributions to our stockholders.

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Costs of complying with governmental laws and regulations, including those relating to environmental matters, may adversely affect our income and the cash available for any distributions.

All real property and the operations conducted on real property are subject to federal, state and local laws and regulations relating to environmental protection and human health and safety. These laws and regulations generally govern wastewater discharges, air emissions, the operation and removal of underground and above-ground storage tanks, the use, storage, treatment, transportation and disposal of solid and hazardous materials, and the remediation of contamination associated with disposals. Environmental laws and regulations may impose joint and several liability on tenants, owners or operators for the costs to investigate or remediate contaminated properties, regardless of fault or whether the acts causing the contamination were legal. This liability could be substantial. In addition, the presence of hazardous substances, or the failure to properly remediate these substances, may adversely affect our ability to sell, rent or pledge such property as collateral for future borrowings.

Some of these laws and regulations have been amended so as to require compliance with new or more stringent standards as of future dates. Compliance with new or more stringent laws or regulations or stricter interpretation of existing laws may require material expenditures by us. Future laws, ordinances or regulations may impose material environmental liability. Additionally, our tenants' operations, the existing condition of land when we buy it, operations in the vicinity of our properties, such as the presence of underground storage tanks, or activities of unrelated third parties may affect our properties. In addition, there are various local, state and federal fire, health, life-safety and similar regulations with which we may be required to comply, and that may subject us to liability in the form of fines or damages for noncompliance. Any material expenditures, fines, or damages we must pay will reduce our ability to make distributions and may reduce the value of our stockholders' investments.

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State and federal laws in this area are constantly evolving, and we intend to monitor these laws and take commercially reasonable steps to protect ourselves from the impact of these laws, including obtaining environmental assessments of most properties that we acquire; however, we will not obtain an independent third-party environmental assessment for every property we acquire. In addition, any such assessment that we do obtain may not reveal all environmental liabilities or that a prior owner of a property did not create a material environmental condition not known to us. The cost of defending against claims of liability, of compliance with environmental regulatory requirements, of remediating any contaminated property, or of paying personal injury claims would materially adversely affect our business, assets or results of operations and, consequently, amounts available for distribution to our stockholders.

If we sell properties by providing financing to purchasers, defaults by the purchasers would adversely affect our cash flows and our ability to make distributions to our stockholders.

If we decide to sell any of our properties, in some instances we may sell our properties by providing financing to purchasers. When we provide financing to purchasers, we will bear the risk that the purchaser may default, which could negatively impact our cash distributions to stockholders. Even in the absence of a purchaser default, the distribution of the proceeds of sales to our stockholders, or their reinvestment in other assets, will be delayed until the promissory notes or other property we may accept upon the sale are actually paid, sold, refinanced or otherwise disposed of. In some cases, we may receive initial down payments in cash and other property in the year of sale in an amount less than the selling price and subsequent payments will be spread over a number of years. If any purchaser defaults under a financing arrangement with us, it could negatively impact our ability to pay cash distributions to our stockholders.

Our recovery of an investment in a mortgage, bridge or mezzanine loan that has defaulted may be limited, resulting in losses to us and reducing the amount of funds available to pay distributions to our stockholders.

There is no guarantee that the mortgage, loan or deed of trust securing an investment will, following a default, permit us to recover the original investment and interest that would have been received absent a default. The security provided by a mortgage, deed of trust or loan is directly related to the difference between the amount owed and the appraised market value of the property. Although we intend to rely on a current real estate appraisal when we make the investment, the value of the property is affected by factors outside our control, including general fluctuations in the real estate market, rezoning, neighborhood changes, highway relocations and failure by the borrower to maintain the property. In addition, we may incur the costs of litigation in our efforts to enforce our rights under defaulted loans.

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Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on the financial condition of co-venturers and disputes between us and our co-venturers.

We may enter into joint ventures, partnerships and other co-ownership arrangements (including preferred equity investments) for the purpose of making investments. In such event, we would not be in a position to exercise sole decision-making authority regarding the joint venture. Investments in joint ventures may, under certain circumstances, involve risks not present were a third party not involved, including the possibility that partners or co-venturers might become bankrupt or fail to fund their required capital contributions. Co-venturers may have economic or other business interests or goals which are inconsistent with our business interests or goals, and may be in a position to take actions contrary to our policies or objectives. Such investments may also have the potential risk of impasses on decisions, such as a sale, because neither we nor the co-venturer would have full control over the joint venture. Disputes between us and co-venturers may result in litigation or arbitration that would increase our expenses and prevent our officers and/or directors from focusing their time and effort on our business. Consequently, actions by or disputes with co-venturers might result in subjecting properties owned by the joint venture to additional risk. In addition, we may in certain circumstances be liable for the actions of our co-venturers.

Our costs associated with complying with the Americans with Disabilities Act may affect cash available for distributions.

Our properties are subject to the Americans with Disabilities Act of 1990 ("Disabilities Act"). Under the Disabilities Act, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. The Disabilities Act has separate compliance requirements for "public accommodations" and "commercial facilities" that generally require that buildings and services, including restaurants and retail stores, be made accessible and available to people with disabilities. The Disabilities Act's requirements could require removal of access barriers and could result in the imposition of injunctive relief, monetary penalties, or, in some cases, an award of damages. However, we cannot assure our stockholders that we will be able to acquire properties or allocate responsibilities in this manner. If we cannot, our funds used for Disabilities Act compliance may affect cash available for distributions and the amount of distributions to our stockholders.

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Market and economic challenges experienced by the U.S. and global economies may adversely impact aspects of our operating results and operating condition.

Our business may be affected by market and economic challenges experienced by the U.S. and global economies. These conditions may materially affect the value and performance of our properties, and may affect our ability to pay distributions, the availability or the terms of financing that we have or may anticipate utilizing, and our ability to make principal and interest payments on, or refinance, any outstanding debt when due. These challenging economic conditions may also impact the ability of certain of our tenants to enter into new leasing transactions or satisfy rental payments under existing leases. Specifically, recent global market disruptions may have adverse consequences, including:

• decreased demand for our properties due to significant job losses that have occurred and may occur in the future, resulting in lower occupancy levels, which decreased demand will result in decreased revenues and which could diminish the value of our portfolio, which depends, in part, upon the cash flow generated by our properties;

• an increase in the number of bankruptcies or insolvency proceedings of our tenants and lease guarantors, which could delay or preclude our efforts to collect rent and any past due balances under the relevant leases;

• widening credit spreads for major sources of capital as investors demand higher risk premiums, resulting in lenders increasing the cost for debt financing;

• further reduction in the amount of capital that is available to finance real estate, which, in turn, could lead to a decline in real estate values generally, slow real estate transaction activity, a reduction the loan-to-value ratio upon which lenders are willing to lend, and difficulty refinancing our debt;

• a decrease in the value of certain of our properties below the amounts we pay for them, which may limit our ability to dispose of assets at attractive prices or to obtain debt financing secured by our properties and may reduce the availability of unsecured loans; and

• reduction in the value and liquidity of our short-term investments as a result of the dislocation of the markets for our short-term investments and increased volatility in market rates for such investments or other factors.

Further, in light of the current economic conditions, we cannot provide assurance that we will be able to pay or increase the level of our distributions. If these conditions continue, our board of directors may reduce our distributions in order to conserve cash.

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The current state of debt markets could have a material adverse impact on our earnings and financial condition.

The domestic and international commercial real estate debt markets are currently experiencing volatility as a result of certain factors including the tightening of underwriting standards by lenders and credit rating agencies. This is resulting in lenders increasing the cost for debt financing. If the overall cost of borrowings increases, either by increases in the index rates or by increases in lender spreads, we will need to factor such increases into the economics of future acquisitions. This may result in future acquisitions generating lower overall economic returns and potentially reducing future cash flow available for distribution. If these disruptions in the debt markets persist, our ability to borrow monies to finance the purchase of, or other activities related to, real estate assets will be negatively impacted. If we are unable to borrow monies on terms and conditions that we find acceptable, we likely will have to reduce the number of properties we can purchase, and the return on the properties we do purchase may be lower. In addition, we may find it difficult, costly or impossible to refinance indebtedness which is maturing.

In addition, the state of the debt markets could have an impact on the overall amount of capital investing in real estate which may result in price or value decreases of real estate assets. Although this may benefit us for future acquisitions, it could negatively impact the current value of our existing assets.

Net leases may not result in fair market lease rates over time.

The majority of our rental income is generated by net leases, which generally provide the tenant greater discretion in using the leased property than ordinary property leases, such as the right to freely sublease the property, to make alterations in the leased premises and to terminate the lease prior to its expiration under specified circumstances. Furthermore, net leases typically have longer lease terms and, thus, there is an increased risk that contractual rental increases in future years will fail to result in fair market rental rates during those years. As a result, our income and distributions to our stockholders could be lower than they would otherwise be if we did not engage in net leases.

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Upcoming changes in U.S. accounting standards regarding operating leases may make the leasing of our properties less attractive to our potential tenants, which could reduce overall demand for our properties.

Under current authoritative accounting guidance for leases, a lease is classified by a tenant as a capital lease if the significant risks and rewards of ownership are considered to reside with the tenant. Under capital lease accounting for a tenant, both the leased asset and liability are reflected on their balance sheet. If the lease does not meet any of the criteria for a capital lease, the lease is considered an operating lease by the tenant, and the obligation does not appear on the tenant's balance sheet, rather, the contractual future minimum payment obligations are only disclosed in the footnotes thereto. For public companies, the upcoming standard will be effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2018, with early adoption permitted for all companies and organizations upon issuance of the standard. The upcoming standard, once effective, could affect both our accounting for leases as well as that of our current and potential tenants. These changes may affect how the real estate leasing business is conducted. For example, as a result of the revised accounting standards regarding the financial statement classification of operating leases, companies may be less willing to enter into leases in general or desire to enter into leases with shorter terms because the apparent benefits to their balance sheets could be reduced or eliminated.

Retail Industry Risks

Economic conditions in the United States have had, and may continue to have, an adverse impact on the retail industry generally. Slow or negative growth in the retail industry could result in defaults by retail tenants which could have an adverse impact on our financial operations.

U.S. and international markets continue to experience constrained growth. This slow growth may, among other things, impact demand for space and support for rents and property value. Because we cannot predict when or if the real estate markets will fully recover, the value of our properties may decline if recent market conditions persist or worsen.

Economic conditions and changes in consumer preferences in the United States have had an adverse impact on the retail industry generally. As a result, the retail industry has recently faced reductions in sales revenues and increased bankruptcies throughout the United States. The continuation of adverse economic conditions and changing preferences may result in an increase in distressed or bankrupt retail companies, which in turn would result in an increase in defaults by tenants at our retail properties. Additionally, slow economic growth is likely to hinder new entrants into the retail market which may make it difficult for us to fully lease the real properties that we plan to acquire. Tenant defaults and decreased demand for retail space would have an adverse impact on the value of our retail properties our results of operations.

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Retail conditions may adversely affect our income and our ability to make distributions to our stockholders.

A retail property's revenues and value may be adversely affected by a number of factors, many of which apply to real estate investment generally, but which also include trends in the retail industry and perceptions by retailers or shoppers of the safety, convenience and attractiveness of the retail property. Our properties are located in public places such as shopping centers and malls, and any incidents of crime or violence would result in a reduction of business traffic to tenant stores in our properties. Any such incidents may also expose us to civil liability. In addition, to the extent that the investing public has a negative perception of the retail sector, the value of our common stock may be negatively impacted.

Some of our leases provide for base rent plus contractual base rent increases. A number of our retail leases also may include a percentage rent clause for additional rent above the base amount based upon a specified percentage of the sales our tenants generate. Under those leases which contain percentage rent clauses, our revenue from tenants may increase as the sales of our tenants increase. Generally, retailers face declining revenues during downturns in the economy. As a result, the portion of our revenue which we may derive from percentage rent leases could be adversely affected by a general economic downturn.

Competition with other retail channels may reduce our profitability and the return on our stockholders' investments.

Our retail tenants face potentially changing consumer preferences and increasing competition from other forms of retailing, such as e-commerce, discount shopping centers, outlet centers, upscale neighborhood strip centers, catalogues and other forms of direct marketing, discount shopping clubs and telemarketing. Other retail centers within the market area of our properties compete with our properties for customers, affecting their tenants' cash flows and thus affecting their ability to pay rent. In addition, some of our tenants' rent payments may be based on the amount of sales revenue that they generate. If these tenants experience competition, the amount of their rent may decrease.

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Competition may impede our ability to renew leases or re-let space as leases expire and require us to undertake unbudgeted capital improvements, which could harm our operating results.

We may compete for tenants with retail centers that are located near our properties with respect to the renewal of leases and re-letting of space as leases expire. Any competitive properties that are developed close to our existing properties also may impact our ability to lease space to creditworthy tenants. Increased competition for tenants may require us to make capital improvements to properties that we would not have otherwise planned to make. Any unbudgeted capital improvements may negatively impact our financial position. Also, to the extent we are unable to renew leases or re-let space as leases expire, it would result in decreased cash flow from tenants and reduce the income produced by our properties. Excessive vacancies (and related reduced shopper traffic) at one of our properties may hurt sales of other tenants at that property and may discourage them from renewing leases.

Several of our properties may rely on tenants who are in similar industries or who are affiliated with certain large companies, which would magnify the effects of downturns in those industries, or companies and have a disproportionate adverse effect on the value of our investments.

Certain tenants of our properties are concentrated in certain industries or retail categories and we have a large number of tenants that are affiliated with certain large companies. As a result, any adverse effect to those industries, retail categories or companies generally would have a disproportionately adverse effect on our portfolio.

The performance of our retail properties is linked to the market for retail space generally.

The market for retail space has been and could be adversely affected by weaknesses in the national, regional and local economies, the adverse financial condition of some large retailing companies, the ongoing consolidation in the retail sector, excess amounts of retail space in a number of markets and competition for tenants with other shopping centers in our markets. Customer traffic to these shopping areas may be adversely affected by the closing of stores in the same shopping center, or by a reduction in traffic to these stores resulting from a regional economic downturn, a general downturn in the local area where our store is located, or a decline in the desirability of the shopping environment of a particular shopping center. A reduction in customer traffic could have a material adverse effect on our business, financial condition and results of operations.

Many of our retail properties are located in public places where crimes, violence and other incidents beyond our control may occur, which could result in a reduction of business traffic at our properties and could expose us to civil liability.

Because our retail properties are open to the public, they are exposed to a number of incidents that may take place within their premises and that are beyond our control or our ability to prevent, which may harm our consumers and visitors. Some of our retail properties are located in large urban areas, which can be subject to elevated levels of crime and urban violence. If violence escalates, we may lose tenants or be forced to close our assets for some time. If any of these incidents were to occur, the relevant asset could face material damage to its image and the property could experience a reduction of business traffic due to lack of confidence in the premises' security. In addition, we may be exposed to civil liability and be required to indemnify the victims and our insurance premiums could rise, any of which could adversely affect us.

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Risks Associated with Debt Financing and Investments

We incur mortgage indebtedness and other borrowings, which may increase our business risks.

In most instances, we acquire real properties by using either existing financing or borrowing new funds. In addition, we may incur mortgage debt and pledge all or some of our real properties as security for that debt to obtain funds to acquire additional real properties. We may borrow if we need funds to satisfy the REIT tax qualification requirement that we generally distribute annually to our stockholders at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. We also may borrow if we otherwise deem it necessary or advisable to assure that we maintain our qualification as a REIT.

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If there is a shortfall between the cash flow from a property and the cash flow needed to service mortgage debt on a property, then the amount available for distributions to stockholders may be reduced. In addition, incurring mortgage debt increases the risk of loss since defaults on indebtedness secured by a property may result in lenders initiating foreclosure actions. In that case, we could lose the property securing the loan that is in default, thus reducing the value of our stockholders' investments. For U.S. federal income tax purposes, a foreclosure of any of our properties would be treated as a sale of the property for a purchase price equal to the outstanding balance of the debt secured by the mortgage. If the outstanding balance of the debt secured by the mortgage exceeds our tax basis in the property, we would recognize taxable income on foreclosure, but would not receive any cash proceeds. In such event, we may be unable to pay the amount of distributions required in order to maintain our REIT status. We may give full or partial guarantees to lenders of mortgage debt to the entities that own our properties. When we provide a guaranty on behalf of an entity that owns one of our properties, we will be responsible to the lender for satisfaction of the debt if it is not paid by such entity. If any mortgages contain cross-collateralization or cross-default provisions, a default on a single property could affect multiple properties. If any of our properties are foreclosed upon due to a default, our ability to pay cash distributions to our stockholders will be adversely affected which could result in our losing our REIT status.

Increasing mortgage rates may make it difficult for us to finance or refinance properties, which could reduce the number of properties we can acquire and the amount of cash distributions we can make.

Changes in interest rates expose us to the risk of being unable to finance new acquisitions or refinance maturing debt. If interest rates are higher when the properties are refinanced, we may not be able to finance the properties and our income could be reduced. If any of these events occur, our cash flow would be reduced. This, in turn, would reduce cash available for distribution to our stockholders and may hinder our ability to raise more capital by issuing more stock or by borrowing more money. In addition, to the extent that we incur variable rate debt, increases in interest rates would increase our interest costs, which could reduce our cash flows and our ability to pay distributions to our stockholders. In addition, if we need to repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of our investments in properties at times that may not permit realization of the maximum return on these investments.

Lenders may require us to enter into restrictive covenants relating to our distributions and our operations, which could limit our ability to make distributions to our stockholders.

In connection with providing us financing, a lender could impose restrictions on us that affect our distribution and operating policies and our ability to incur additional debt. Loan documents we enter into may contain covenants that limit our ability to further mortgage the property, discontinue insurance coverage or replace our Advisor. Under the restricted payments covenant in the Amended Credit Facility, we may declare or pay cash distributions in an aggregate amount (excluding cash distributions reinvested through our DRIP) not to exceed the greater of (i) 120% of our MFFO for each fiscal quarter; or (ii) the amount necessary for us to be able to make distributions required to maintain our status as a REIT. These or other limitations may adversely affect our flexibility and our ability to achieve our investment and operating objectives.

Risks Related to Our Investments

Disruptions in the financial markets and challenging economic conditions could adversely impact the commercial mortgage market, as well as the market for real estate-related debt investments generally, which could hinder our ability to implement our business strategy and generate returns to our stockholders.

We may allocate a percentage of our portfolio to real estate-related investments such as mortgage, mezzanine, bridge and other loans; debt and derivative securities related to real estate assets, including mortgage-backed securities; and the equity securities of other REITs and real estate companies. The returns available to investors in these investments are determined by (a) the supply and demand for these investments, (b) the performance of the assets underlying the investments, and (c) the existence of a market for these investments, which includes the ability to sell or finance these investments.

During periods of volatility, the number of investors participating in the market may change at an accelerated pace. As liquidity or "demand" increases the returns available to investors on new investments will decrease. Conversely, a lack of liquidity will cause the returns available to investors on new investments to increase.

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Interest rate fluctuations will affect the value of our mortgage assets, net income and common stock.

Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control. Interest rate fluctuations can adversely affect our income in many ways and present a variety of risks including the risk of variances in the yield curve, a mismatch between asset yields and borrowing rates, and changing prepayment rates.

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Variances in the yield curve may reduce our net income. The relationship between short-term and longer-term interest rates is often referred to as the "yield curve." Short-term interest rates are ordinarily lower than longer-term interest rates. If short-term interest rates rise disproportionately relative to longer-term interest rates (a flattening of the yield curve), our borrowing costs may increase more rapidly than the interest income earned on our assets. Because our assets may bear interest based on longer-term rates than our borrowings, a flattening of the yield curve would tend to decrease our net income and the market value of our mortgage loan assets. Additionally, to the extent cash flows from investments that return scheduled and unscheduled principal are reinvested in mortgage loans, the spread between the yields of the new investments and available borrowing rates may decline, which would likely decrease our net income. It is also possible that short-term interest rates may exceed longer-term interest rates (a yield curve inversion), in which event our borrowing costs may exceed our interest income and we could incur operating losses in our debt investments.

Any hedging strategies we utilize may not be successful in mitigating our risks.

We may enter into hedging transactions to manage risk of interest rate changes, price changes or currency fluctuations with respect to borrowings made or to be made to acquire or carry real estate assets. To the extent that we use derivative financial instruments in connection with these risks, we will be exposed to credit, basis and legal enforceability risks. Derivative financial instruments may include interest rate swap contracts, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. In this context, credit risk is the failure of the counterparty to perform under the terms of the derivative contract. If the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. Basis risk occurs when the index upon which the contract is based is more or less variable than the index upon which the hedged asset or liability is based, thereby making the hedge less effective. Finally, legal enforceability risks encompass general contractual risks, including the risk that the counterparty will breach the terms of, or fail to perform its obligations under, the derivative contract. If we are unable to manage these risks effectively, our results of operations, financial condition and ability to make distributions to our stockholders will be adversely affected.

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The CRE Debt Investments we invest in could be subject to delinquency, loss and bankruptcy, which could result in losses.

Commercial real estate loans are often secured by commercial real estate and may therefore be subject to risks of delinquency, foreclosure, loss and bankruptcy of the borrower, all of which are and will continue to be prevalent if the overall economic environment does not continue to approve. The ability of a borrower to repay a loan secured by, or dependent on revenue derived from, commercial real estate is typically dependent primarily upon the successful operation of such property rather than upon the existence of independent income or assets of the borrower. If the net operating income of the property is reduced or is not increased, depending on the borrower's business plan, the borrower's ability to repay the loan may be impaired. Net operating income of a property can be affected by, each of the following factors, among other things:

• macroeconomic and local economic conditions;

• tenant mix;

• success of tenant businesses;

• property management decisions;

• property location and condition;

• property operating costs, including insurance premiums, real estate taxes and maintenance costs;

• competition from comparable types of properties;

• effects on a particular industry applicable to the property, such as hotel vacancy rates;

• changes in governmental rules, regulations and fiscal policies, including environmental legislation;

• changes in laws that increase operating expenses or limit rents that may be charged;

• any need to address environmental contamination at the property;

• the occurrence of any uninsured casualty at the property;

• changes in national, regional or local economic conditions and/or specific industry segments;

• declines in regional or local real estate values;

• branding, marketing and operational strategies;

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• declines in regional or local rental or occupancy rates;

• increases in interest rates;

• real estate tax rates and other operating expenses;

• acts of God;

• social unrest and civil disturbances;

• terrorism; and

• increases in costs associated with renovation and/or construction.

Any one or a combination of these factors may cause a borrower to default on a loan or to declare bankruptcy. If a default or bankruptcy occurs in respect of an unsecured loan, or a loan secured by property for which the proceeds of liquidation (net of expenses) is less than the loan amount, we will suffer a loss.

In the event of any default under a commercial real estate loan held directly by us, we will bear a risk of loss of principal or accrued interest to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the commercial real estate loan, which could have a material adverse effect on our cash flow from operations. In the event of a default by a borrower on a non-recourse commercial real estate loan, we will only have recourse to the underlying asset (including any escrowed funds and reserves) collateralizing the commercial real estate loan. If a borrower defaults on one of the our CRE Debt Investments and the underlying property collateralizing the commercial real estate debt is insufficient to satisfy the outstanding balance of the debt, we may suffer a loss of principal or interest. In addition, even if we have recourse to a borrower's assets, we may not have full recourse to such assets in the event of a borrower bankruptcy as the loan to such borrower will be deemed to be secured only to the extent of the value of the mortgaged property at the time of bankruptcy (as determined by the bankruptcy court), and the lien securing the loan will be subject to the avoidance powers of the bankruptcy trustee or debtor-in-possession to the extent the lien is unenforceable under state law. We are also exposed to these risks though the commercial real estate loans underlying a commercial real estate security we hold may result in us not recovering a portion or all of our investment in such commercial real estate security.

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CRE Debt Investments and other commercial real estate investments are subject to the risks typically associated with commercial real estate.

CRE Debt Investments we originate and invests in may be secured by a lien on real property. Where our investment is secured by such a lien, the occurrence of a default on a CRE Debt Investment could result in us acquiring ownership of the property. There can be no assurance that the values of the properties ultimately securing CRE Debt Investments will remain at the levels existing on the dates of origination of such loans. If the value of the properties drop, our risk will increase because of both the lower value of the security and the reduction in borrower equity associated with such loans. In this manner, real estate values could impact the values of CRE Debt Investments and commercial real estate security investments. Therefore, our commercial real estate debt and securities investments are subject to the risks typically associated with real estate.

Our operating results may be adversely affected by a number of risks generally incident to holding real estate, including, without limitation:

• natural disasters, such as hurricanes, earthquakes and floods;

• acts of war or terrorism, including the consequences of terrorist attacks;

• adverse changes in national and local economic and real estate conditions;

• an oversupply of (or a reduction in demand for) space in the areas where particular properties are located and the attractiveness of particular properties to prospective tenants;

• changes in interest rates and availability of permanent mortgage funds that my render the sale of property difficult or unattractive;

• changes in governmental laws and regulations, fiscal policies and zoning ordinances and the related costs of compliance therewith and the potential for liability under applicable laws;

• costs of remediation and liabilities associated with environmental conditions affecting properties; and

• the potential for uninsured or underinsured property losses; and

• periods of high interest rates and tight money supply.

The value of each property is affected significantly by its ability to generate cash flow and net income, which in turn depends on the amount of rental or other income that can be generated net of expenses required to be incurred with respect to the property. Many expenses associated with properties (such as operating expenses and capital expenses) cannot be reduced when there is a reduction in income from the properties.

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These factors may have a material adverse effect on the ability of the our borrowers to pay their loans and the ability of the borrowers on the underlying loans securing the our securities to pay their loans, as well as on the value and the return that we can realize from assets it acquires and originates.

We may invest in types of commercial real estate debt that involve greater risk of loss to AFIN.

To the extent we acquire or originate subordinate commercial real estate debt, including subordinate mortgage and mezzanine loans and participations in such loans, these types of investments may involve a higher degree of risk than first mortgage loans secured by real property. Furthermore, some of our debt investments may not conform to conventional loan standards applied by traditional lenders and either will not be rated or will be rated as non-investment grade by the rating agencies, which typically result from the overall leverage of the loans, the lack of a strong operating history for the properties underlying the loans, the borrowers’ credit history, the properties’ underlying cash flow or other factors. As a result, these investments may have a higher risk of default and loss than first mortgage loans and investment grade rated assets.

U.S. Federal Income Tax Risks

Our failure to remain qualified as a REIT would subject us to U.S. federal income tax and potentially state and local tax, and would adversely affect our operations and the market price of our common stock.

We qualified to be taxed as a REIT commencing with our taxable year ended December 31, 2013 and intend to operate in a manner that would allow us to continue to qualify as a REIT. However, we may terminate our REIT qualification, if our board of directors determines that not qualifying as a REIT is in our best interests, or inadvertently. Our qualification as a REIT depends upon our satisfaction of certain asset, income, organizational, distribution, stockholder ownership and other requirements on a continuing basis. The REIT qualification requirements are extremely complex and interpretation of the U.S. federal income tax laws governing qualification as a REIT is limited. Furthermore, any opinion of our counsel, including tax counsel, as to our eligibility to remain qualified as a REIT is not binding on the IRS and is not a guarantee that we will continue to qualify as a REIT. Accordingly, we cannot be certain that we will be successful in operating so we can remain qualified as a REIT. Our ability to satisfy the asset tests depends on our analysis of the characterization and fair market values of our assets, some of which are not susceptible to a precise determination, and for which we will not obtain independent appraisals. Our compliance with the REIT income or quarterly asset requirements also depends on our ability to successfully manage the composition of our income and assets on an ongoing basis. Accordingly, if certain of our operations were to be recharacterized by the IRS, such recharacterization would jeopardize our ability to satisfy all requirements for qualification as a REIT. Furthermore, future legislative, judicial or administrative changes to the U.S. federal income tax laws could be applied retroactively, which could result in our disqualification as a REIT.

If we fail to continue to qualify as a REIT for any taxable year, and we do not qualify for certain statutory relief provisions, we will be subject to U.S. federal income tax on our taxable income at corporate rates. In addition, we would generally be disqualified from treatment as a REIT for the four taxable years following the year of losing our REIT qualification. Losing our REIT qualification would reduce our net earnings available for investment or distribution to stockholders because of the additional tax liability. In addition, distributions to stockholders would no longer qualify for the dividends paid deduction, and we would no longer be required to make distributions. If this occurs, we might be required to borrow funds or liquidate some investments in order to pay the applicable tax.

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Even with our REIT qualification, in certain circumstances, we may incur tax liabilities that would reduce our cash available for distribution to our stockholders.

Even with our REIT qualification, we may be subject to U.S. federal, state and local income taxes. For example, net income from the sale of properties that are "dealer" properties sold by a REIT (a "prohibited transaction" under the Code) will be subject to a 100% tax. We may not make sufficient distributions to avoid excise taxes applicable to REITs. Similarly, if we were to fail an income test (and did not lose our REIT status because such failure was due to reasonable cause and not willful neglect), we would be subject to tax on the income that does not meet the income test requirements. We also may decide to retain net capital gain we earn from the sale or other disposition of our property and pay U.S. federal income tax directly on such income. In that event, our stockholders would be treated as if they earned that income and paid the tax on it directly. However, stockholders that are tax-exempt, such as charities or qualified pension plans, would have no benefit from their deemed payment of such tax liability unless they file U.S. federal income tax returns and thereon seek a refund of such tax. We also will be subject to corporate tax on any undistributed REIT taxable income. We also may be subject to state and local taxes on our income or property, including franchise, payroll and transfer taxes, either directly or at the level of our OP or at the level of the other companies through which we indirectly own our assets, such as our taxable REIT subsidiaries, which are subject to full U.S. federal, state, local and foreign corporate-level income taxes. Any taxes we pay directly or indirectly will reduce our cash available for distribution to our stockholders.

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To qualify as a REIT we must meet annual distribution requirements, which may force us to forgo otherwise attractive opportunities or borrow funds during unfavorable market conditions. This could delay or hinder our ability to meet our investment objectives and reduce ours stockholders' overall return.

In order to qualify as a REIT, we must distribute annually to our stockholders at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. We will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (a) 85% of our ordinary income, (b) 95% of our capital gain net income and (c) 100% of our undistributed income from prior years. These requirements could cause us to distribute amounts that otherwise would be spent on investments in real estate assets and it is possible that we might be required to borrow funds, possibly at unfavorable rates, or sell assets to fund these distributions. Although we intend to make distributions sufficient to meet the annual distribution requirements and to avoid U.S. federal income and excise taxes on our earnings while we qualify as a REIT, it is possible that we might not always be able to do so.

Certain of our business activities are potentially subject to the prohibited transaction tax, which could reduce the return on ours stockholders' investments.

For so long as we qualify as a REIT, our ability to dispose of property during the first few years following acquisition may be restricted to a substantial extent as a result of our REIT qualification. Under applicable provisions of the Code regarding prohibited transactions by REITs, while we qualify as a REIT, we will be subject to a 100% penalty tax on any gain recognized on the sale or other disposition of any property (other than foreclosure property) that we own, directly or indirectly through any subsidiary entity, including our OP, but generally excluding taxable REIT subsidiaries, that is deemed to be inventory or property held primarily for sale to customers in the ordinary course of a trade or business. Whether property is inventory or otherwise held primarily for sale to customers in the ordinary course of a trade or business depends on the particular facts and circumstances surrounding each property. We intend to avoid the 100% prohibited transaction tax by (a) conducting activities that may otherwise be considered prohibited transactions through a taxable REIT subsidiary (but such taxable REIT subsidiary would incur corporate rate income taxes with respect to any income or gain recognized by it), (b) conducting our operations in such a manner so that no sale or other disposition of an asset we own, directly or indirectly through any subsidiary, will be treated as a prohibited transaction or (c) structuring certain dispositions of our properties to comply with the requirements of the prohibited transaction safe harbor available under the Code for properties that, among other requirements, have been held for at least two years. Despite our present intention, no assurance can be given that any particular property we own, directly or through any subsidiary entity, including our OP, but generally excluding taxable REIT subsidiaries, will not be treated as inventory or property held primarily for sale to customers in the ordinary course of a trade or business.

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Our taxable REIT subsidiaries are subject to corporate-level taxes and our dealings with our taxable REIT subsidiaries may be subject to 100% excise tax.

A REIT may own up to 100% of the stock of one or more taxable REIT subsidiaries. Both the subsidiary and the REIT must jointly elect to treat the subsidiary as a taxable REIT subsidiary. A corporation of which a taxable REIT subsidiary directly or indirectly owns more than 35% of the voting power or value of the stock will automatically be treated as a taxable REIT subsidiary. Overall, no more than 25% (20% for taxable years beginning after December 31, 2017) of the gross value of a REIT's assets may consist of stock or securities of one or more taxable REIT subsidiaries. A taxable REIT subsidiary may hold assets and earn income that would not be qualifying assets or income if held or earned directly by a REIT, including gross income from operations pursuant to management contracts. Accordingly, we may use taxable REIT subsidiaries generally to hold properties for sale in the ordinary course of a trade or business or to hold assets or conduct activities that we cannot conduct directly as a REIT. A taxable REIT subsidiary will be subject to applicable U.S. federal, state, local and foreign income tax on its REIT taxable income. In addition, the taxable REIT subsidiary rules limit the deductibility of interest paid or accrued by a taxable REIT subsidiary to its parent REIT to assure that the taxable REIT subsidiary is subject to an appropriate level of corporate taxation. The rules, which are applicable to us as a REIT, also impose a 100% excise tax on certain transactions between a taxable REIT subsidiary and its parent REIT that are not conducted on an arm's-length basis.

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If our OP failed to qualify as a partnership or is not otherwise disregarded for U.S. federal income tax purposes, we would cease to qualify as a REIT.

We intend to maintain the status of our OP as a partnership or a disregarded entity for U.S. federal income tax purposes. However, if the IRS were to successfully challenge the status of our OP as a partnership or disregarded entity for such purposes, it would be taxable as a corporation. In such event, this would reduce the amount of distributions that the OP could make to us. This also would result in our failing to qualify as a REIT, and becoming subject to a corporate level tax on our income. This substantially would reduce our cash available to pay distributions and the yield on our stockholders' investments. In addition, if any of the partnerships or limited liability companies through which our OP owns its properties, in whole or in part, loses its characterization as a partnership and is otherwise not disregarded for U.S. federal income tax purposes, it would be subject to taxation as a corporation, thereby reducing distributions to the OP. Such a recharacterization of an underlying property owner could also threaten our ability to maintain our REIT qualification.

We may choose to make distributions in our own stock, in which case our stockholders may be required to pay U.S. federal income taxes in excess of the cash distributions they receive.

In connection with our qualification as a REIT, we are required to distribute annually to our stockholders at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding net capital gain. In order to satisfy this requirement, we may make distributions that are payable in cash and/or shares of our common stock (which could account for up to 80% of the aggregate amount of such distributions) at the election of each stockholder. Taxable stockholders receiving such distributions will be required to include the full amount of such distributions as ordinary dividend income to the extent of our current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. As a result, U.S. stockholders may be required to pay U.S. federal income taxes with respect to such distributions in excess of the cash portion of the distribution received. Accordingly, U.S. stockholders receiving a distribution of our shares may be required to sell shares received in such distribution or may be required to sell other stock or assets owned by them, at a time that may be disadvantageous, in order to satisfy any tax imposed on such distribution. If a U.S. stockholder sells the stock that it receives as part of the distribution in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the distribution, depending on the market price of our stock at the time of the sale. Furthermore, with respect to certain non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such distribution, including in respect of all or a portion of such distribution that is payable in stock, by withholding or disposing of part of the shares included in such distribution and using the proceeds of such disposition to satisfy the withholding tax imposed. In addition, if a significant number of our stockholders determine to sell shares of our common stock in order to pay taxes owed on dividend income, such sale may put downward pressure on the market price of our common stock.

Various tax aspects of such a taxable cash/stock distribution are uncertain and have not yet been addressed by the IRS. No assurance can be given that the IRS will not impose requirements in the future with respect to taxable cash/stock distributions, including on a retroactive basis, or assert that the requirements for such taxable cash/stock distributions have not been met.

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The taxation of distributions to our stockholders can be complex; however, distributions that we make to our stockholders generally will be taxable as ordinary income, which may reduce our stockholders' anticipated return from an investment in us.

Distributions that we make to our taxable stockholders out of current and accumulated earnings and profits (and not designated as capital gain dividends or qualified dividend income) generally will be taxable as ordinary income. However, a portion of our distributions may (1) be designated by us as capital gain dividends generally taxable as long-term capital gain to the extent that they are attributable to net capital gain recognized by us, (2) be designated by us as qualified dividend income generally to the extent they are attributable to dividends we receive from our taxable REIT subsidiaries, or (3) constitute a return of capital generally to the extent that they exceed our accumulated earnings and profits as determined for U.S. federal income tax purposes. A return of capital is not taxable, but has the effect of reducing the basis of a stockholder's investment in our common stock.

Our stockholders may have tax liability on distributions that they elect to reinvest in common stock, but they would not receive the cash from such distributions to pay such tax liability.

If our stockholders participate in any distribution reinvestment plan, they will be deemed to have received, and for U.S. federal income tax purposes will be taxed on, the amount reinvested in shares of our common stock to the extent the amount reinvested was not a tax-free return of capital. In addition, our stockholders will be treated for tax purposes as having received an additional distribution to the extent the shares are purchased at a discount to fair market value. As a result, unless a stockholder is a tax-exempt entity, it may have to use funds from other sources to pay its tax liability on the value of the shares of common stock received.

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Dividends payable by REITs generally do not qualify for the reduced tax rates available for some dividends.

Currently, the maximum tax rate applicable to qualified dividend income payable to U.S. stockholders that are individuals, trusts and estates is 20%. Dividends payable by REITs, however, generally are not eligible for this reduced rate. Although this does not adversely affect the taxation of REITs or dividends payable by REITs, the more favorable rates applicable to regular corporate qualified dividends could cause investors who are individuals, trusts and estates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could adversely affect the value of the shares of REITs, including our common stock. Tax rates could be changed in future legislation.

Complying with REIT requirements may limit our ability to hedge our liabilities effectively and may cause us to incur tax liabilities.

The REIT provisions of the Code may limit our ability to hedge our liabilities. Any income from a hedging transaction we enter into to manage risk of interest rate changes, price changes or currency fluctuations with respect to borrowings made or to be made to acquire or carry real estate assets or in certain cases to hedge previously acquired hedges entered into to manage risks associated with property that has been disposed of or liabilities that have been extinguished, if properly identified under applicable Treasury Regulations, does not constitute "gross income" for purposes of the 75% or 95% gross income tests. To the extent that we enter into other types of hedging transactions, the income from those transactions will likely be treated as non-qualifying income for purposes of both of the gross income tests. As a result of these rules, we may need to limit our use of advantageous hedging techniques or implement those hedges through a taxable REIT subsidiary. This could increase the cost of our hedging activities because our taxable REIT subsidiaries would be subject to tax on gains or expose us to greater risks associated with changes in interest rates than we would otherwise want to bear. In addition, losses in a taxable REIT subsidiary generally will not provide any tax benefit, except for being carried forward against future taxable income of such taxable REIT subsidiary.

Complying with REIT requirements may force us to forgo or liquidate otherwise attractive investment opportunities.

To maintain our qualification as a REIT, we must ensure that we meet the REIT gross income tests annually and that at the end of each calendar quarter, at least 75% of the value of our assets consists of cash, cash items, government securities and qualified REIT real estate assets, including certain mortgage loans and certain kinds of mortgage-related securities. The remainder of our investment in securities (other than government securities and qualified real estate assets) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our assets (other than government securities and qualified real estate assets) can consist of the securities of any one issuer, and no more than 25% (20% for taxable years beginning after December 31, 2017) of the value of our total securities can be represented by securities of one or more taxable REIT subsidiaries. If we fail to comply with these requirements at the end of any calendar quarter, we must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing our REIT qualification and suffering adverse tax consequences. As a result, we may be required to liquidate assets from our portfolio or not make otherwise attractive investments in order to maintain our qualification as a REIT. These actions could have the effect of reducing our income and amounts available for distribution to our stockholders.

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The ability of our board of directors to revoke our REIT qualification without stockholder approval may subject us to U.S. federal income tax and reduce distributions to our stockholders.

Our charter provides that our board of directors may revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that it is no longer in our best interest to continue to qualify as a REIT. While we intend to continue to elect and qualify to be taxed as a REIT, we may not elect to be treated as a REIT or may terminate our REIT election if we determine that qualifying as a REIT is no longer in our best interests. If we cease to be a REIT, we would become subject to U.S. federal income tax on our taxable income and would no longer be required to distribute most of our taxable income to our stockholders, which may have adverse consequences on our total return to our stockholders and on the market price of our common stock.

We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability, reduce our operating flexibility and reduce the market price of our common stock.

In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of U.S. federal income tax laws applicable to investments similar to an investment in shares of our common stock. Additional changes to the tax laws are likely to continue to occur, and we cannot assure our stockholders that any such changes will not adversely affect the taxation of a stockholder. Any such changes could have an adverse effect on an investment in our shares or on the market value or the resale potential of our assets. Our stockholders are urged to consult with their tax advisor with respect to the impact of recent legislation on their investment in our shares and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in our shares. Our stockholders should also note that our counsel's tax opinion is based upon existing law, applicable as of the date of its opinion, all of which will be subject to change, either prospectively or retroactively.

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Although REITs generally receive better tax treatment than entities taxed as regular corporations, it is possible that future legislation would result in a REIT having fewer tax advantages, and it could become more advantageous for a company that invests in real estate to elect to be treated for U.S. federal income tax purposes as a corporation. As a result, our charter provides our board of directors with the power, under certain circumstances, to revoke or otherwise terminate our REIT election and cause us to be taxed as a regular corporation, without the vote of our stockholders. Our board of directors has fiduciary duties to us and our stockholders and could only cause such changes in our tax treatment if it determines in good faith that such changes are in the best interest of our stockholders.

Reform proposals have been recently put forth by members of Congress and the President which, if ultimately proposed as legislation and enacted as law, would substantially change the U.S. federal taxation of (among other things) individuals and businesses. Their proposals set forth a variety of principles to guide potential tax reform legislation. As of the date of this annual report, no legislation has been introduced in Congress. If ultimately reduced to legislation enacted by Congress and signed into law by the President in a form that is consistent with those principles, such reform could change dramatically the U.S. federal taxation applicable to us and our stockholders. No reform proposal specifically addresses the taxation of REITs, but because any tax reform is likely to significantly reduce the tax rates applicable to corporations and dividends received by stockholders, the tax benefits applicable to the REIT structure may be diminished in relation to corporations. Furthermore, proposed tax reform would limit the deductibility of net interest expense and would allow for the immediate deduction of any investment in tangible property (other than land) and intangible assets. Finally, the tax reform proposals do not include any principles regarding how to transition from our current system of taxation to a new tax system based on the principles in such proposed reform. Given how dramatic the changes could be, transition rules are crucial. While it is impossible to predict whether and to what extent any tax reform legislation (or other legislative, regulatory or administrative change to the U.S. federal tax laws) will be proposed or enacted, any such change in the U.S. federal tax laws could affect materially the value of any investment in our stock. You are encouraged to consult with your tax advisor regarding possible legislative and regulatory changes and the potential effect of such changes on an investment in our shares.

The share ownership restrictions of the Code for REITs and the 9.8% share ownership limit in our charter may inhibit market activity in our shares of stock and restrict our business combination opportunities.

In order to qualify as a REIT, five or fewer individuals, as defined in the Code, may not own, actually or constructively, more than 50% in value of our issued and outstanding shares of stock at any time during the last half of each taxable year, other than the first year for which a REIT election is made. Attribution rules in the Code determine if any individual or entity actually or constructively owns our shares of stock under this requirement. Additionally, at least 100 persons must beneficially own our shares of stock during at least 335 days of a taxable year for each taxable year, other than the first year for which a REIT election is made. To help insure that we meet these tests, among other purposes, our charter restricts the acquisition and ownership of our shares of stock.

Our charter, with certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve our qualification as a REIT while we so qualify. Unless exempted by our board of directors, for so long as we qualify as a REIT, our charter prohibits, among other limitations on ownership and transfer of shares of our stock, any person from beneficially or constructively owning (applying certain attribution rules under the Code) more than 9.8% in value of the aggregate of our outstanding shares of stock and more than 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of our shares of stock. Our board of directors may not grant an exemption from these restrictions to any proposed transferee whose ownership in excess of the 9.8% ownership limit would result in the termination of our qualification as a REIT. These restrictions on transferability and ownership will not apply, however, if our board of directors determines that it is no longer in our best interest to continue to qualify as a REIT or that compliance with the restrictions is no longer required in order for us to continue to so qualify as a REIT.

These ownership limits could delay or prevent a transaction or a change in control that might involve a premium price for our common stock or otherwise be in the best interest of the stockholders.

63

Non-U.S. stockholders will be subject to U.S. federal withholding tax and may be subject to U.S. federal income tax on distributions received from us and upon the disposition of our shares.

Subject to certain exceptions, distributions received from us will be treated as dividends of ordinary income to the extent of our current or accumulated earnings and profits. Such dividends ordinarily will be subject to U.S. withholding tax at a 30% rate, or such lower rate as may be specified by an applicable income tax treaty, unless the distributions are treated as "effectively connected" with the conduct by the non-U.S. stockholder of a U.S. trade or business. Pursuant to the Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA"), capital gain distributions attributable to sales or exchanges of "U.S. real property interests" ("USRPIs"), generally will be taxed to a non-U.S. stockholder (other than a qualified pension plan, entities wholly owned by a qualified pension plan and certain foreign publicly traded entities) as if such gain were effectively connected with a U.S. trade or business. However, a capital gain distribution will not be treated as effectively connected income if (a) the distribution is received with respect to a class of stock that is regularly traded on an established securities market located in the United States and (b) the non-U.S. stockholder does not own more than 10% of the class of our stock at any time during the one-year period ending on the date the distribution is received. We do not anticipate that our shares will be "regularly traded" on an established securities market for the foreseeable future, and therefore, this exception is not expected to apply.

Gain recognized by a non-U.S. stockholder upon the sale or exchange of our common stock generally will not be subject to U.S. federal income taxation unless such stock constitutes a USRPI under FIRPTA. Our common stock will not constitute a USRPI so long as we are a "domestically-controlled qualified investment entity." A domestically-controlled qualified investment entity includes a REIT if at all times during a specified testing period, less than 50% in value of such REIT's stock is held directly or indirectly by non-U.S. stockholders. We believe, but cannot assure our stockholders, that we will be a domestically-controlled qualified investment entity.

Even if we do not qualify as a domestically-controlled qualified investment entity at the time a non-U.S. stockholder sells or exchanges our common stock, gain arising from such a sale or exchange would not be subject to U.S. taxation under FIRPTA as a sale of a USRPI if: (a) our common stock is "regularly traded," as defined by applicable Treasury regulations, on an established securities market, and (b) such non-U.S. stockholder owned, actually and constructively, 10% or less of our common stock at any time during the five-year period ending on the date of the sale. However, it is not anticipated that our common stock will be "regularly traded" on an established market. We encourage our stockholders to consult their tax advisor to determine the tax consequences applicable to our stockholders if they are non-U.S. stockholders.

Potential characterization of distributions or gain on sale may be treated as unrelated business taxable income to tax-exempt investors.

If (a) we are a "pension-held REIT," (b) a tax-exempt stockholder has incurred (or is deemed to have incurred) debt to purchase or hold our common stock, or (c) a holder of common stock is a certain type of tax-exempt stockholder, dividends on, and gains recognized on the sale of, common stock by such tax-exempt stockholder may be subject to U.S. federal income tax as unrelated business taxable income under the Code.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

As of December 31, 2016, we owned 455 properties, which were acquired for investment purposes, comprised of 13.3 million rentable square feet located in 37 states. All of our properties are freestanding, single-tenant properties, 100.0% leased with a weighted-average remaining lease term of 9.1 years as of December 31, 2016.

As of December 31, 2016, RCA owned 35 properties, which were acquired for investment purposes, comprised of 7.5 million rentable square feet located in 16 states. RCA's properties are stabilized core retail properties, including power centers and lifestyle centers, that were 92.6% leased on a weighted-average basis with a weighted-average remaining lease term of 5.3 years.

As of December 31, 2016, the Merrill Lynch Properties were comprised of 0.6 million rentable square feet, with a weighted-average remaining lease term of 7.9 years.

As of December 31, 2016, on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties, we owned 487 properties, comprised of 20.3 million rentable square feet located in 39 states, which were 97.3% leased on a weighted-average basis with a weighted-average remaining lease term of 7.7 years.

The following table represents certain additional information about the properties we owned at December 31, 2016:

Portfolio	Acquisition Date	Number of Properties	Rentable Square Feet	Remaining Lease Term (1)
Dollar General I	Apr. & May 2013	2	18,126	11.3

64

Portfolio	Acquisition Date	Number of Properties	Rentable Square Feet	Remaining Lease Term (1)
Walgreens I	Jul. 2013	1	10,500	20.8
Dollar General II	Jul. 2013	2	18,052	11.4
Auto Zone I	Jul. 2013	1	7,370	10.6
Dollar General III	Jul. 2013	5	45,989	11.4
BSFS I	Jul. 2013	1	8,934	7.1
Dollar General IV	Jul. 2013	2	18,126	9.2
Tractor Supply I	Aug. 2013	1	19,097	10.9
Dollar General V	Aug. 2013	1	12,480	11.1
Mattress Firm I	Aug. & Nov. 2013; Feb., Mar. & Apr. 2014	5	23,612	8.6
Family Dollar I	Aug. 2013	1	8,050	4.5
Lowe's I	Aug. 2013	5	671,313	12.5
O'Reilly Auto Parts I	Aug. 2013	1	10,692	13.5
Food Lion I	Aug. 2013	1	44,549	12.8
Family Dollar II	Aug. 2013	1	8,028	6.5
Walgreens II	Aug. 2013	1	14,490	16.3
Dollar General VI	Aug. 2013	1	9,014	9.2
Dollar General VII	Aug. 2013	1	9,100	11.3
Family Dollar III	Aug. 2013	1	8,000	5.8
Chili's I	Aug. 2013	2	12,700	8.9
CVS I	Aug. 2013	1	10,055	9.1
Joe's Crab Shack I	Aug. 2013	2	16,012	10.3
Dollar General VIII	Sep. 2013	1	9,100	11.6
Tire Kingdom I	Sep. 2013	1	6,635	8.3
Auto Zone II	Sep. 2013	1	7,370	6.4
Family Dollar IV	Sep. 2013	1	8,320	6.5
Fresenius I	Sep. 2013	1	5,800	8.5
Dollar General IX	Sep. 2013	1	9,014	8.3
Advance Auto I	Sep. 2013	1	10,500	6.5
Walgreens III	Sep. 2013	1	15,120	9.3
Walgreens IV	Sep. 2013	1	13,500	7.8
CVS II	Sep. 2013	1	13,905	20.1
Arby's I	Sep. 2013	1	3,000	11.5
Dollar General X	Sep. 2013	1	9,100	11.3
AmeriCold I	Sep. 2013	9	1,407,166	10.8
Home Depot I	Sep. 2013	2	1,315,200	10.1
New Breed Logistics I	Sep. 2013	1	390,486	4.8
American Express Travel Related Services I	Sep. 2013	2	785,164	3.1
L.A. Fitness I	Sep. 2013	1	45,000	7.2
SunTrust Bank I	Sep. 2013	32	182,400	6.8
National Tire & Battery I	Sep. 2013	1	10,795	6.9
Circle K I	Sep. 2013	19	54,521	11.8
Walgreens V	Sep. 2013	1	14,490	10.7
Walgreens VI	Sep. 2013	1	14,560	12.3
FedEx Ground I	Sep. 2013	1	21,662	6.4
Walgreens VII	Sep. 2013	10	142,140	12.8
O'Charley's I	Sep. 2013	20	135,973	14.8
Krystal Burgers Corporation I	Sep. 2013	6	12,730	12.7
Merrill Lynch, Pierce, Fenner & Smith I	Sep. 2013	3	553,841	7.9
1st Constitution Bancorp I	Sep. 2013	1	4,500	7.1
American Tire Distributors I	Sep. 2013	1	125,060	7.1
Tractor Supply II	Oct. 2013	1	23,500	6.8
United Healthcare I	Oct. 2013	1	400,000	4.5
National Tire & Battery II	Oct. 2013	1	7,368	15.4
Tractor Supply III	Oct. 2013	1	19,097	11.3
Mattress Firm II	Oct. 2013	1	4,304	6.7

65

Portfolio	Acquisition Date	Number of Properties	Rentable Square Feet	Remaining Lease Term (1)
Dollar General XI	Oct. 2013	1	9,026	10.3
Academy Sports I	Oct. 2013	1	71,640	11.5
Talecris Plasma Resources I	Oct. 2013	1	22,262	6.3
Amazon I	Oct. 2013	1	79,105	6.6
Fresenius II	Oct. 2013	2	16,047	10.6
Dollar General XII	Nov. 2013 & Jan. 2014	2	18,126	12.0
Dollar General XIII	Nov. 2013	1	9,169	9.3
Advance Auto II	Nov. 2013	2	13,887	6.4
FedEx Ground II	Nov. 2013	1	48,897	6.6
Burger King I	Nov. 2013	41	168,192	16.9
Dollar General XIV	Nov. 2013	3	27,078	11.4
Dollar General XV	Nov. 2013	1	9,026	11.8
FedEx Ground III	Nov. 2013	1	24,310	6.7
Dollar General XVI	Nov. 2013	1	9,014	8.9
Family Dollar V	Nov. 2013	1	8,400	6.3
Walgreens VIII	Dec. 2013	1	14,490	7.0
CVS III	Dec. 2013	1	10,880	7.1
Mattress Firm III	Dec. 2013	1	5,057	6.5
Arby's II	Dec. 2013	1	3,494	11.3
Family Dollar VI	Dec. 2013	2	17,484	7.1
SAAB Sensis I	Dec. 2013	1	90,822	8.3
Citizens Bank I	Dec. 2013	9	34,777	7.0
Walgreens IX	Jan. 2014	1	14,490	6.1
SunTrust Bank II	Jan. 2014	30	148,233	10.3
Mattress Firm IV	Jan. 2014	1	5,040	7.7
FedEx Ground IV	Jan. 2014	1	59,167	6.5
Mattress Firm V	Jan. 2014	1	5,548	6.8
Family Dollar VII	Feb. 2014	1	8,320	7.5
Aaron's I	Feb. 2014	1	7,964	6.7
Auto Zone III	Feb. 2014	1	6,786	6.3
C&S Wholesale Grocer I	Feb. 2014	5	3,044,685	5.8
Advance Auto III	Feb. 2014	1	6,124	7.7
Family Dollar VIII	Mar. 2014	3	24,960	6.6
Dollar General XVII	Mar. & May 2014	3	27,078	11.3
SunTrust Bank III	Mar. 2014	112	599,461	9.9
SunTrust Bank IV	Mar. 2014	27	142,625	10.3
Dollar General XVIII	Mar. 2014	1	9,026	11.3
Sanofi US I	Mar. 2014	1	736,572	9.5
Family Dollar IX	Apr. 2014	1	8,320	7.3
Stop & Shop I	May 2014	8	544,112	9.9
Bi-Lo I	May 2014	1	55,718	9.0
Dollar General XIX	May 2014	1	12,480	11.7
Dollar General XX	May 2014	5	48,584	10.3
Dollar General XXI	May 2014	1	9,238	11.7
Dollar General XXII	May 2014	1	10,566	10.3
FedEx Ground V	Feb. 2016	1	45,755	8.6
FedEx Ground VI	Feb. 2016	1	120,731	8.7
FedEx Ground VII	Feb. 2016	1	42,299	8.8
FedEx Ground VIII	Feb. 2016	1	78,673	8.8
		455	13,319,348	9.1

_____________________

(1) Remaining lease term in years as of December 31, 2016. If the portfolio has multiple properties with varying lease expirations, remaining lease term is calculated on a weighted-average basis.

66

The following table represents certain additional information about the properties owned by RCA at December 31, 2016:

Property	Acquisition Date	Property Type	Number of Properties	Rentable Square Feet	Occupancy	Remaining Lease Term (1)
Liberty Crossing	Jun. 2012	Power Center	1	105,779	94.0%	2.5
San Pedro Crossing	Dec. 2012	Power Center	1	201,965	96.7%	4.0
Tiffany Springs MarketCenter	Sep. 2013	Power Center	1	264,952	74.3%	5.2
The Streets of West Chester	Apr. 2014	Lifestyle Center	1	236,842	92.1%	11.5
Prairie Towne Center	Jun. 2014	Power Center	1	289,277	95.3%	7.4
Southway Shopping Center	Jun. 2014	Power Center	1	181,809	99.3%	3.6
Stirling Slidell Centre	Aug. 2014	Power Center	1	134,276	77.2%	3.6
Northwoods Marketplace	Aug. 2014	Power Center	1	236,078	95.9%	3.3
Centennial Plaza	Aug. 2014	Power Center	1	233,797	100.0%	2.5
Northlake Commons	Sep. 2014	Lifestyle Center	1	109,112	95.9%	4.4
Shops at Shelby Crossing	Sep. 2014	Power Center	1	236,107	97.0%	2.7
Shoppes of West Melbourne	Sep. 2014	Power Center	1	144,484	96.0%	4.5
The Centrum	Sep. 2014	Power Center	1	270,747	93.5%	2.9
Shoppes at Wyomissing	Oct. 2014	Lifestyle Center	1	103,064	100.0%	2.7
Southroads Shopping Center	Oct. 2014	Power Center	1	437,515	71.2%	4.7
Parkside Shopping Center	Nov. 2014 & Dec. 2015	Power Center	1	181,620	94.6%	6.0
West Lake Crossing	Nov. 2014	Power Center	1	75,928	90.2%	4.4
Colonial Landing	Dec. 2014	Power Center	1	263,559	81.6%	4.6
The Shops at West End	Dec. 2014	Lifestyle Center	1	381,831	81.9%	8.7
Township Marketplace	Dec. 2014	Power Center	1	298,630	96.2%	2.4
Cross Pointe Centre	Mar. 2015	Power Center	1	226,089	100.0%	10.3
Towne Center Plaza	Apr. 2015	Power Center	1	94,096	100.0%	6.1
Harlingen Corners	May 2015	Power Center	1	228,208	96.2%	5.3
Village at Quail Springs	Jun. 2015	Power Center	1	100,404	100.0%	2.2
Pine Ridge Plaza	Jun. 2015	Power Center	1	239,492	95.2%	3.1
Bison Hollow	Jun. 2015	Power Center	1	134,798	100.0%	5.8
Jefferson Commons	Jun. 2015	Power Center	1	205,918	93.4%	9.0
Northpark Center	Jun. 2015	Power Center	1	318,327	99.2%	3.8
Anderson Station	Jul. 2015	Power Center	1	243,550	95.9%	2.6
Patton Creek	Aug. 2015	Power Center	1	491,294	94.5%	4.7
North Lakeland Plaza	Sep. 2015	Power Center	1	171,397	96.3%	3.7
Riverbend Marketplace	Sep. 2015	Power Center	1	142,617	97.2%	6.2
Montecito Crossing	Sep. 2015	Power Center	1	179,721	97.4%	5.3
Best on the Boulevard	Sep. 2015	Power Center	1	204,568	100.0%	5.1
Shops at RiverGate South	Sep. 2015	Power Center	1	140,703	97.8%	8.8
Portfolio, December 31, 2016			35	7,508,554	92.6%	5.3

_____________________

(1) Remaining lease term in years as of December 31, 2016, calculated on a weighted-average basis.

67

The following table details the geographic distribution, by state, of our properties owned as of December 31, 2016:

State	Number of Properties	Rentable Square Feet	Rentable Square Foot %		Annualized Rental Income (1)		Annualized Rental Income %
					(In thousands)
Alabama	8	2,011,213	15.1	%	$	8,858	5.4	%
Arkansas	6	54,620	0.4	%	662		0.4	%
Colorado	3	25,130	0.2	%	504		0.3	%
Connecticut	2	84,045	0.6	%	1,640		1.0	%
District of Columbia	1	2,745	—	%	235		0.1	%
Florida	74	396,436	3.0	%	12,491		7.6	%
Georgia	55	1,778,560	13.4	%	18,191		11.0	%
Idaho	2	13,040	0.1	%	298		0.2	%
Illinois	30	359,408	2.7	%	6,256		3.8	%
Indiana	5	35,056	0.3	%	598		0.4	%
Iowa	6	126,710	0.9	%	1,485		0.9	%
Kentucky	4	113,269	0.8	%	1,207		0.7	%
Louisiana	13	114,185	0.9	%	1,387		0.9	%
Maryland	7	423,354	3.2	%	4,537		2.7	%
Massachusetts	8	1,561,761	11.7	%	13,368		8.1	%
Michigan	13	140,232	1.1	%	2,388		1.4	%
Minnesota	4	311,317	2.3	%	2,882		1.7	%
Mississippi	10	124,121	0.9	%	1,465		0.9	%
Missouri	7	139,566	1.0	%	1,455		0.9	%
New Jersey	7	1,372,311	10.3	%	33,003		20.0	%
New Mexico	1	8,320	0.1	%	94		0.1	%
New York	3	152,348	1.1	%	2,613		1.6	%
North Carolina	41	968,080	7.3	%	10,980		6.6	%
North Dakota	2	145,041	1.1	%	1,069		0.6	%
Ohio	34	139,007	1.0	%	4,304		2.6	%
Oklahoma	2	26,970	0.2	%	486		0.3	%
Pennsylvania	15	70,350	0.5	%	2,686		1.6	%
Rhode Island	2	148,927	1.1	%	2,419		1.5	%
South Carolina	14	900,203	6.8	%	7,147		4.3	%
South Dakota	1	21,662	0.2	%	220		0.1	%
Tennessee	33	268,471	2.0	%	4,111		2.5	%
Texas	11	147,532	1.1	%	2,492		1.5	%
Utah	1	395,787	3.0	%	3,397		2.1	%
Virginia	24	184,109	1.4	%	3,188		1.9	%
West Virginia	1	9,238	0.1	%	117		0.1	%
Wisconsin	4	531,664	4.0	%	6,629		4.0	%
Wyoming	1	14,560	0.1	%	291		0.2	%
Total	455	13,319,348	100.0	%	$	165,153	100.0	%

_____________________________

(1) Annualized rental income as of December 31, 2016 for the in-place leases in the property portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable.

68

The following table details the geographic distribution, by state, of our properties owned as of December 31, 2016 on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties:

State	Number of Properties	Rentable Square Feet	Rentable Square Foot %		Annualized Rental Income (1)		Annualized Rental Income %
					(In thousands)
Alabama	9	2,502,507	12.3	%	$	16,223	6.5	%
Arkansas	6	54,620	0.3	%	663		0.2	%
Colorado	3	25,130	0.1	%	504		0.2	%
Connecticut	2	84,045	0.4	%	1,640		0.7	%
District of Columbia	1	2,745	—	%	235		0.1	%
Florida	78	1,211,983	6.0	%	21,245		8.5	%
Georgia	55	1,778,560	8.8	%	18,191		7.3	%
Idaho	2	13,040	0.1	%	298		0.1	%
Illinois	31	648,685	3.2	%	8,434		3.4	%
Indiana	5	35,056	0.2	%	598		0.2	%
Iowa	6	126,710	0.6	%	1,485		0.6	%
Kansas	1	239,492	1.2	%	2,294		0.9	%
Kentucky	6	500,807	2.5	%	6,764		2.7	%
Louisiana	14	248,461	1.2	%	2,690		1.1	%
Maryland	7	423,354	2.1	%	4,537		1.8	%
Massachusetts	8	1,561,761	7.7	%	13,368		5.3	%
Michigan	14	275,030	1.4	%	3,880		1.6	%
Minnesota	5	693,148	3.4	%	11,701		4.7	%
Mississippi	10	124,121	0.6	%	1,465		0.6	%
Missouri	8	404,518	2.0	%	5,314		2.1	%
Nevada	2	384,289	1.9	%	6,877		2.8	%
New Jersey	4	818,470	4.1	%	20,290		8.1	%
New Mexico	1	8,320	—	%	94		—	%
New York	3	152,348	0.8	%	2,613		1.0	%
North Carolina	46	1,857,348	9.2	%	22,550		9.0	%
North Dakota	2	145,041	0.7	%	1,069		0.4	%
Ohio	36	694,176	3.4	%	10,887		4.4	%
Oklahoma	5	798,686	3.9	%	7,863		3.1	%
Pennsylvania	17	472,044	2.3	%	8,529		3.4	%
Rhode Island	2	148,927	0.7	%	2,419		1.0	%
South Carolina	16	1,379,831	6.8	%	12,444		5.0	%
South Dakota	1	21,662	0.1	%	220		0.1	%
Tennessee	33	268,471	1.3	%	4,111		1.6	%
Texas	17	1,035,317	5.1	%	14,922		6.0	%
Utah	1	395,787	2.0	%	3,397		1.4	%
Virginia	24	184,109	0.9	%	3,188		1.3	%
West Virginia	1	9,238	—	%	117		—	%
Wisconsin	4	531,664	2.6	%	6,629		2.7	%
Wyoming	1	14,560	0.1	%	291		0.1	%
Total	487	20,274,061	100.0	%	$	250,039	100.0	%

_____________________________

(1) Annualized rental income as of December 31, 2016 for the in-place leases in the property portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable.

69

Future Minimum Lease Payments

The following table presents future minimum base rent payments, on a cash basis, due to us over the next ten years and thereafter for the properties we owned as of December 31, 2016. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.

(In thousands)	Future Minimum Base Rent Payments
2017	$	159,895
2018	153,841
2019	155,931
2020	150,760
2021	149,425
2022	140,755
2023	130,691
2024	121,566
2025	105,939
2026	90,392
Thereafter	174,077
	$	1,533,272

The following table presents future minimum base rent payments, on a cash basis, due to us over the next ten years and thereafter for the properties we own as of December 31, 2016 on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.

(In thousands)	Future Minimum Base Rent Payments
2017	$	241,259
2018	223,229
2019	209,924
2020	193,058
2021	182,039
2022	166,953
2023	151,640
2024	136,806
2025	123,994
2026	101,777
Thereafter	221,662
	$	1,952,341

70

Future Lease Expiration Table

The following is a summary of lease expirations for the next ten years at the properties we owned as of December 31, 2016:

Year of Expiration	Number of Leases Expiring	Annualized Rental Income (1)		Percent of Portfolio Annualized Rental Income Expiring		Leased Rentable Square Feet	Percent of Portfolio Rentable Square Feet Expiring
		(In thousands)
2017	55	$	7,147	4.3	%	341,812	2.6	%
2018	4	325		0.2	%	13,501	0.1	%
2019	1	3,970		2.4	%	389,377	2.9	%
2020	1	3,397		2.1	%	395,787	3.0	%
2021	3	7,287		4.4	%	798,536	6.0	%
2022	6	12,334		7.5	%	1,748,390	13.1	%
2023	35	11,363		6.9	%	1,778,038	13.3	%
2024	14	15,719		9.5	%	797,839	6.0	%
2025	18	7,267		4.4	%	557,799	4.2	%
2026	22	29,857		18.1	%	1,381,430	10.4	%
	159	$	98,666	59.8	%	8,202,509	61.6	%

_____________________________

(1) Annualized rental income as of December 31, 2016 for the in-place leases in the property portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable.

The following is a summary of lease expirations for the next ten years at the properties we own as of December 31, 2016 on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties:

Year of Expiration	Number of Leases Expiring	Annualized Rental Income (1)		Percent of Portfolio Annualized Rental Income Expiring		Leased Rentable Square Feet	Percent of Portfolio Rentable Square Feet Expiring
		(In thousands)
2017	65	$	5,802	2.3	%	489,839	2.5	%
2018	170	22,280		8.9	%	1,360,335	6.9	%
2019	125	15,598		6.2	%	1,187,524	6.0	%
2020	100	17,418		7.0	%	1,533,630	7.8	%
2021	72	16,128		6.5	%	1,369,546	6.9	%
2022	49	17,918		7.2	%	2,210,477	11.2	%
2023	51	13,279		5.3	%	2,005,500	10.2	%
2024	55	13,665		5.5	%	827,281	4.2	%
2025	58	17,114		6.8	%	1,302,677	6.6	%
2026	30	25,355		10.1	%	1,215,996	6.2	%
	775	$	164,557	65.8	%	13,502,805	68.5	%

_____________________________

(1) Annualized rental income as of December 31, 2016 for the in-place leases in the property portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable.

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Tenant Concentration

The following table lists the tenants whose rentable square footage or annualized rental income on a straight-line basis represented greater than 10.0% of total portfolio rentable square footage or annualized rental income on a straight-line basis as of December 31, 2016:

Tenant	Industry	Number of Properties Occupied by Tenant	Rentable Square Feet	Rentable Square Feet as a % of Total Portfolio		Lease Expiration	Average Remaining Lease Term (1)	Renewal Options	Annualized Rental Income (2)		Annualized Rental Income as a % of Total Portfolio
									(In thousands)
C&S Wholesale Grocers	Distribution	5	3,044,685	22.9	%	Various	5.8	1 ten-year option, then 6 five-year options	$	16,826	10.2	%
Americold	Refrigerated Warehousing	9	1,407,166	10.6	%	Sep. 2027	10.8	4 five-year options	$	12,720	7.7	%
SunTrust Bank	Retail Banking	201	1,072,719	8.1	%	Various	9.6	1 ten-year option, then 6 five-year options	$	29,208	17.7	%
Sanofi US	Healthcare	1	736,572	5.5	%	Jun. 2026	9.5	2 five-year options	$	18,778	11.4	%

_____________________

(1) Remaining lease term in years as of December 31, 2016, calculated on a weighted-average basis.

(2) Annualized rental income as of December 31, 2016 for the tenant's in-place leases in the portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable.

The following table lists the tenants whose rentable square footage or annualized rental income on a straight-line basis represented greater than 10.0% of total portfolio rentable square footage or annualized rental income on a straight-line basis as of December 31, 2016 on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties:

Tenant	Industry	Number of Properties Occupied by Tenant	Rentable Square Feet	Rentable Square Feet as a % of Total Portfolio		Lease Expiration	Average Remaining Lease Term (1)	Renewal Options	Annualized Rental Income (2)		Annualized Rental Income as a % of Total Portfolio
									(In thousands)
C&S Wholesale Grocers	Distribution	5	3,044,685	15.4	%	Various	5.8	1 ten-year option, then 6 five-year options	$	16,826	6.7	%
SunTrust Bank	Retail Banking	201	1,072,719	5.4	%	Various	9.6	1 ten-year option, then 6 five-year options	$	29,208	11.7	%

_____________________

(1) Remaining lease term in years as of December 31, 2016, calculated on a weighted-average basis.

(2) Annualized rental income as of December 31, 2016 for the tenant's in-place leases in the portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable.

Significant Portfolio Properties

The rentable square feet or annualized rental income on a straight-line basis of the following properties each represents 5.0% or more of our total portfolio's rentable square feet or annualized rental income on a straight-line basis as of December 31, 2016. The rentable square feet or annualized rental income on a straight-line basis of the following properties also represent 5% or more of the total pro forma portfolio's rentable square feet or annualized rental income on a straight-line basis, giving effect to the Mergers and the Merrill Lynch Dispositions as of December 31, 2016. The tenant concentrations of these properties are summarized below:

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C&S Wholesale Grocers - Birmingham, AL

C&S Wholesale Grocers - Birmingham, AL is a freestanding, single-tenant distribution facility, comprised of 1,311,295 total rentable square feet and is 100.0% leased to a subsidiary of C&S Wholesale Grocers, Inc., and the lease is guaranteed by C&S Wholesale Grocers, Inc. As of December 31, 2016, the tenant has 6.5 years remaining on its lease which expires in June 2023. The lease has annualized rental income on a straight-line basis of $4.7 million and contains one ten-year renewal option, followed by six five-year renewal options.

Sanofi US - Bridgewater, NJ

Sanofi US - Bridgewater, NJ is a freestanding, single-tenant office facility, comprised of 736,572 total rentable square feet and is 100.0% leased to Aventis, Inc., a member of the Sanofi-Aventis Group. As of December 31, 2016, the tenant has 9.5 years remaining on its lease which expires in June 2026. The lease has annualized rental income on a straight-line basis of $18.8 million and contains two five-year renewal options.

Property Financings

Our mortgage notes payable as of December 31, 2016 and 2015 consist of the following:

		Outstanding Loan Amount as of						Effective Interest Rate as of
		December 31,						December 31,
Portfolio	Encumbered Properties	2016			2015			2016			2015			Interest Rate	Maturity	Anticipated Repayment
		(In thousands)			(In thousands)
SAAB Sensis I	1	$	7,841		$	8,190		5.93	%		6.01	%		Fixed	Apr. 2025	Apr. 2025
SunTrust Bank II	30	25,000			25,000			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
C&S Wholesale Grocer I	4	82,313			82,313			5.48	%		5.56	%		Fixed	Apr. 2037	Apr. 2017
SunTrust Bank III	112	88,567			99,677			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
SunTrust Bank IV	27	21,243			25,000			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
Sanofi US I	1	125,000			125,000			5.16	%		5.16	%		Fixed	Jul. 2026	Jan. 2021
Stop & Shop I	4	38,271			38,936			5.63	%		5.63	%		Fixed	Jun. 2041	Jun. 2021
Multi-Tenant Mortgage Loan	268	649,532			649,532			4.36	%		4.36	%		Fixed	Sep. 2020	Sep. 2020
Gross mortgage notes payable	447	1,037,767			1,053,648			4.75	%	(1)	4.77	%	(1)
Deferred financing costs, net of accumulated amortization		(15,492		)	(20,066		)
Mortgage notes payable, net of deferred financing costs		$	1,022,275		$	1,033,582

_____________________________________

(1) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated.

As of December 31, 2016, on a pro forma basis, after giving effect to the Mergers and the disposition of the Merrill Lynch Properties, we will have gross mortgage notes outstanding of $1.2 billion and a credit facility outstanding of $304.0 million.

Item 3. Legal Proceedings.

On January 13, 2017, four affiliated stockholders of RCA filed in the United States District Court for the District of Maryland a putative class action lawsuit against the Company, Edward M. Weil, Jr., Leslie D. Michelson, Edward G. Rendell (Weil, Michelson and Rendell, the “Director Defendants”), AR Global, and the Company, alleging violations of Sections 14(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) by RCA and the Director Defendants, violations of Section 20(a) of the Exchange Act by AR Global and the Director Defendants, breaches of fiduciary duty by the Director Defendants, and aiding and abetting breaches of fiduciary duty by AR Global and the Company in connection with the negotiation of and proxy solicitation for a shareholder vote on the proposed merger of the Company and RCA and an amendment to RCA's Articles of Incorporation.  Plaintiffs seek on behalf of the putative class rescission of the merger transaction, which was voted on and approved by stockholders on February 13, 2017, and closed on February 17, 2017, together with unspecified rescissory damages, unspecified actual damages, and costs and disbursements of the action. The Court has not selected a lead plaintiff and has adjourned the deadline for Defendants to answer or move against the Complaint until 45 days after a Court-appointed lead plaintiff either adopts the current Complaint or files an Amended Complaint. The Company and the Director Defendants deny wrongdoing and liability and intend to vigorously defend the action. Due to the early stage of the litigation, no estimate of a probable loss or any reasonable possible losses are determinable at this time. No provisions for such losses have been recorded in the accompanying consolidated financial statements for the year ended December 31, 2016.

There are no other material legal or regulatory proceedings pending or known to be contemplated against the Company.

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Item 4. Mine Safety Disclosures.

Not applicable.

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PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information

Our common stock is not currently traded on a national securities exchange. Our common stock has been approved for listing on the NYSE, subject to us being in compliance with all applicable listing standards on the date it begins trading on the NYSE. We intend to list our common stock on the NYSE at a time yet to be determined. Our approval for listing is valid through August 2017, and we may apply to extend the outside date for listing. Our board of directors has not yet determined when it will request that our common stock be listed and commence trading, and any decision with respect to the timing of listing would be based on market conditions and other factors. There can be no assurance when our common stock will commence trading on the NYSE or whether our shares will trade at a price equal to or greater than the Estimated Per-Share NAV.

There is presently no established market for our shares. If our stockholders are able to find a buyer for their shares, they may not sell their shares unless the buyer meets applicable suitability and minimum purchase standards and the sale does not violate state securities laws. Our charter also prohibits the ownership of more than 9.8% in value of the aggregate of our outstanding shares of stock or more than 9.8% (in value or in number of shares, whichever is more restrictive) of any class or series of shares of our stock by a single investor, unless exempted by our board of directors. Consequently, there is risk that our stockholders may not be able to sell their shares at a time or price acceptable to them.

On March 17, 2016, our board of directors approved an Estimated Per-Share NAV of $24.17 as of December 31, 2015. We intend to publish an Estimated Per-Share NAV as of December 31, 2016 shortly following the filing of this Annual Report on Form 10-K as of and for the year ended December 31, 2016. Consistent with our valuation guidelines, the Advisor engaged Duff & Phelps, LLC ("Duff & Phelps"), an independent third-party real estate advisory firm, to perform appraisals of our real estate assets in accordance with valuation guidelines established by our board of directors and as described below. Duff & Phelps does not have any direct interests in any transaction with us and there are no conflicts of interest between Duff & Phelps, on one hand, and us or our Advisor, on the other (other than to the extent that the findings of Duff & Phelps regarding our assets, or the assets of real estate investment programs sponsored by affiliates of our Advisor, may affect the value of ownership interests owned by, or incentive compensation payable to, directors, officers or affiliates of us and our Advisor).

 Duff & Phelps has extensive experience estimating the fair value of commercial real estate. The method used by Duff & Phelps to appraise our real estate assets in the report furnished to the Advisor and the Company's board of directors by Duff & Phelps (the "Duff & Phelps Real Estate Appraisal Report") complies with the Investment Program Association Practice Guideline 2013-01 titled "Valuations of Publicly Registered Non-Listed REITs," issued April 29, 2013.

Duff & Phelps performed a valuation of the real estate assets utilizing the Income Capitalization approach, as described further below, that is commonly used in the commercial real estate industry. There were two loans that were sold after the valuation date and those prices were utilized as a proxy for fair value.

The Estimated Per-Share NAV is comprised of (i) the sum of (A) the estimated value of the real estate assets and (B) the estimated value of the other assets, minus the sum of (C) estimated value of debt and other liabilities and (D) the estimate of the aggregate incentive fees, participations and limited partnership interests held by or allocable to our Advisor, management or any of their respective affiliates based on the aggregate net asset value of the Company based on Estimated Per-Share NAV and payable in a hypothetical liquidation of the Company as of December 31, 2015, divided by (ii) the number of common shares outstanding on a fully-diluted basis as of December 31, 2015, which was 64,961,346.

Income Capitalization Approach

Duff & Phelps estimated the “as is” market value of substantially all of the real estate assets as of December 31, 2015 using an income capitalization approach, which simulates the reasoning of an investor who views the cash flows that would result from the anticipated revenue and expense on a property throughout its projection period. NOI developed in Duff & Phelps' analysis is the balance of potential income remaining after vacancy and collection loss and operating expenses. This NOI was then capitalized at an appropriate rate to derive an estimate of value (the “Direct Capitalization Method”) or discounted by an appropriate yield rate over a typical projection period in a discounted cash flow analysis (the “Discounted Cash Flow Method”). Thus, two key steps were involved: (1) estimating the NOI applicable to each real estate asset and (2) choosing appropriate capitalization rates and discount rates, as applicable.

Duff & Phelps utilized the Direct Capitalization Method for 391 real estate asset values when there was more than seven years remaining on the existing leases, or whose options will likely be exercised resulting in a remaining lease term greater than seven years, and the Discounted Cash Flow Method for 73 real estate asset values.

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The value of our mortgage notes payable as of December 31, 2015 was estimated using discounted cash flow analyses. The discounted cash flow analyses were based on projected cash flows over the remaining loan terms and utilized estimates of market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. The Advisor recommended, and our board of directors believes, that this assumption reflected the terms available to borrowers seeking borrowing terms similar to ours and with a credit profile similar to our credit profile.

For all other assets and liabilities, including cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable and accrued expenses, deferred rent and other liabilities, and distributions payable, the Advisor believes that cost estimates fair value.

The Estimated Per-Share NAV does not represent: (i) the amount at which our shares would trade on a national securities exchange or a third party would pay to acquire the Company, (ii) the amount a stockholder would obtain if he or she tried to sell his or her shares or (iii) the amount stockholders would receive if we liquidated our assets and distributed the proceeds after paying all of our expenses and liabilities. Accordingly, with respect to the estimated value per share, we can give no assurance that:

• a stockholder would be able to resell his or her shares at Estimated Per-Share NAV;

• a stockholder would ultimately realize distributions per share equal to Estimated Per-Share NAV upon liquidation of the Company's assets and settlement of its liabilities or a sale of the Company;

• the Company's shares would trade at a price equal to or greater than Estimated Per-Share NAV if the shares were listed on a national securities exchange; or

• the methodology used to establish the Estimated Per-Share NAV would be acceptable to FINRA for use on customer account statements, or that the Estimated Per-Share NAV will satisfy the applicable annual valuation requirements under ERISA and the Code with respect to employee benefit plans subject to ERISA and other retirement plans or accounts subject to Section 4975 of the Code.

The Estimated Per-Share NAV was unanimously adopted by our board on March 17, 2016 and reflects the fact that the estimate was calculated at a moment in time. The Estimated Per-Share NAV does not reflect events subsequent to December 31, 2015 that would have affected the Company's net asset value, and does not include the value of the properties acquired or the liabilities assumed in the Merger or otherwise take into consideration the effect of the Merger. The value of our shares will likely change over time and will be influenced by changes to the value of our individual assets as well as changes and developments in the real estate and capital markets. We currently expect to update our Estimated Per-Share NAV on an annual basis. Nevertheless, stockholders should not rely on the Estimated Per-Share NAV in making a decision to buy or sell shares of our common stock.

Holders

As of February 28, 2017, we had 104.3 million shares of common stock outstanding held by a total of 53,840 stockholders.

Distributions

We qualified to be taxed as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2013. As a REIT, we are required, among other things, to distribute at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP and determined without regard for the deduction for dividends paid and excluding net capital gains) to our stockholders annually. The amount of distributions payable to our stockholders is determined by our board of directors and is dependent on a number of factors, including funds available for distribution, financial condition, capital expenditure requirements, as applicable, and annual distribution requirements needed to maintain our status as a REIT under the Code.

In addition, on February 16, 2017, we, the OP, and certain other subsidiaries of ours acting as guarantors, entered into an amendment, assumption, joinder and reaffirmation of guaranties to an unsecured amended and restated credit agreement, dated December 2, 2014, by and among the RCA OP to which the OP is successor by merger, BMO Harris Bank N.A., as administrative agent, letter of credit issuer, swingline lender and a lender, and the other parties thereto, relating to a revolving credit facility (the “Amended Credit Facility”). Under the restricted payments covenant in the Amended Credit Facility, we may declare or pay cash distributions in an aggregate amount (excluding cash distributions reinvested through our DRIP) not to exceed the greater of (i) 120% of our MFFO for each fiscal quarter; or (ii) the amount necessary for us to be able to make distributions required to maintain our status as a REIT. For more information on the Amended Credit Facility, see Note 17 —Subsequent Events, Second Amendment to Amended and Restated Credit Agreement, in the accompanying consolidated financial statements.

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The following table details from a tax perspective, the portion of distributions classified as return of capital and ordinary dividend income, per share per annum, for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(In thousands)	2016				2015				2014
Return of capital	76.0	%	$	1.25	89.9	%	$	1.48	55.5	%	$	0.91
Ordinary dividend income	24.0	%	0.40		10.1	%	0.17		44.2	%	0.73
Capital gain	—	%	—		—	%	—		0.3	%	0.01
Total	100.0	%	$	1.65	100.0	%	$	1.65	100.0	%	$	1.65

On April 9, 2013, our board of directors authorized, and we declared a distribution payable to stockholders of record each day equal to $0.00452054795 per day, which is equivalent to $1.65 per annum, per share of common stock. In March 2016, our board of directors ratified the existing distribution amount equivalent to $1.65 per annum, and, for calendar year 2016, affirmed a change to the daily distribution amount to $0.00450819672 per day per share of common stock, effective January 1, 2016, to reflect that 2016 is a leap year. Distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month.

Distributions payments are dependent on the availability of funds. Our board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distributions payments are not assured. The following table reflects distributions declared and paid in cash and through the DRIP to common stockholders, as well as distributions related to unvested restricted shares, for the years ended December 31, 2016 and 2015:

(In thousands)	Total Distributions Paid		Total Distributions Declared
1st Quarter, 2016	$	26,767	$	26,649
2nd Quarter, 2016	27,004		26,783
3rd Quarter, 2016	27,237		27,279
4th Quarter, 2016	26,996		27,293
Total	$	108,004	$	108,004

(In thousands)	Total Distributions Paid		Total Distributions Declared
1st Quarter, 2015	$	26,663	$	26,721
2nd Quarter, 2015	27,434		27,187
3rd Quarter, 2015	27,614		27,642
4th Quarter, 2015	27,246		27,430
Total	$	108,957	$	108,980

We, our board of directors and Advisor share a similar philosophy with respect to paying our distributions. Distributions should principally be derived from cash flows generated from real estate operations. During the years ended December 31, 2016 and 2015, cash used to pay our distributions was generated from cash flows provided by operations and the proceeds from shares issued pursuant to the DRIP. We expect to continue to use funds received from operating activities to pay our distributions.

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Share-Based Compensation

Restricted Share Plan

We had an employee and director incentive restricted share plan (the "Original RSP"), which provided for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further action by our board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholders' meeting. Restricted stock issued to independent directors vests over a five-year period following the date of grant in increments of 20.0% per annum. The Original RSP provided us with the ability to grant awards of restricted shares to our directors, officers and employees (if we ever have employees), employees of the Advisor and its affiliates, employees of entities that provide services to us, directors of our Advisor or of entities that provide services to us, certain consultants to us and our Advisor and its affiliates or to entities that provide services to us. The total number of shares of common stock granted under the Original RSP could not exceed 5.0% of our outstanding shares of common stock on a fully diluted basis at any time and in any event could not exceed 3.4 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

Restricted share awards entitle the recipient to receive shares of common stock from us under terms that provide for vesting over a specified period of time. For restricted share awards granted prior to 2015, such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with us. Restricted share awards granted during or after 2015 provide for accelerated vesting of the portion of the unvested shares scheduled to vest in the year of the recipient's voluntary termination or the failure to be re-elected to the board. We account for forfeitures when they occur. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock shall be subject to the same restrictions as the underlying restricted shares.

In April 2015, the board of directors adopted an Amended and Restated RSP (the "A&R RSP") that replaces in its entirety the Original RSP. The A&R RSP amends the terms of the Original RSP as follows:

• it increases the number of shares of our capital stock, par value $0.01 per share (our "Capital Stock"), available for awards thereunder from 5.0% of our outstanding shares of Capital Stock on a fully diluted basis at any time, not exceed 3.4 million shares of Capital Stock, to 10.0% of our outstanding shares of Capital Stock on a fully diluted basis at any time;

• it removes the fixed amount of shares that were automatically granted to our independent directors; and

• it adds restricted stock units (including dividend equivalent rights thereon) as a permitted form of award.

As of December 31, 2016 and 2015, we had 9,367 and 7,455 unvested restricted shares in our restricted share plans, respectively.

Recent Sale of Unregistered Equity Securities

There were no recent sales of unregistered equity securities.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Our board of directors has adopted the SRP that enables our stockholders to sell their shares to us under limited circumstances. At the time a stockholder requests a repurchase, we may, subject to certain conditions, repurchase the shares presented for repurchase for cash to the extent we have sufficient funds available.

On December 27, 2016, our board of directors approved an amendment to the SRP to provide that repurchase proceeds for any repurchase requests made during the year ended December 31, 2016 will be paid within 31 days of the consummation of the Merger.

The following table summarizes the repurchases of shares under the SRP cumulatively through December 31, 2016:

	Number of Shares	Weighted-Average Price per Share
Cumulative repurchases as of December 31, 2013	8,082	$	24.98
Year ended December 31, 2014	295,825	23.99
Year ended December 31, 2015	1,769,738	24.13
Year ended December 31, 2016	7,854	24.17
Cumulative repurchases as of December 31, 2016	2,081,499	$	24.12

During the year ended December 31, 2016, 6.8 million shares were requested for repurchase. In March 2017, our board of directors approved the repurchase of 0.8 million of the requested shares at a weighted average repurchase price of $23.84. The approved repurchase requests will be paid within 31 days of the consummation of the Merger, which occurred on February 16, 2017.

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Item 6. Selected Financial Data.

The following selected financial data as of December 31, 2016, 2015, 2014 and 2013, for the years ended December 31, 2016, 2015 and 2014 and for the period from January 22, 2013 (date of inception) to December 31, 2013 should be read in conjunction with the accompanying consolidated financial statements and related notes thereto and "Item 7. Management's Discussion and Analysis of Financial Conditions and Results of Operations" below.

	Historical
	December 31,
Balance sheet data (In thousands)	2016		2015		2014		2013
Total real estate investments, at cost	$	2,024,387	$	2,218,127	$	2,218,127	$	1,147,072
Commercial mortgage loans, held for investment, net	$	17,175	$	17,135	$	—	$	—
Assets held for sale	$	137,602	$	56,884	$	—	$	—
Total assets (1)	$	2,064,459	$	2,237,088	$	2,224,805	$	1,347,309
Mortgage notes payable, net of deferred financing costs (1)	$	1,022,275	$	1,033,582	$	465,854	$	8,764
Credit facility	$	—	$	—	$	423,000	$	—
Total liabilities (1)	$	1,079,593	$	1,110,339	$	959,640	$	35,495
Total stockholders' equity	$	984,866	$	1,126,749	$	1,265,165	$	1,311,814

_____________________________

(1) As a result of a recently adopted accounting pronouncement, we have reclassified $20.1 million, $4.2 million and $0.1 million of deferred issuance costs related to our mortgage notes payable from deferred costs, net to mortgage notes payable in our consolidated balance sheets as of December 31, 2015, 2014 and 2013, respectively.

	Historical
	Year Ended December 31,									Period from January 22, 2013 (date of inception) to December 31, 2013
Operating data (In thousands, except share and per share data)	2016			2015			2014
Total revenues	$	177,668		$	174,498		$	158,380		$	24,289
Operating expenses	178,287			141,347			135,477			47,105
Operating (loss) income	(619		)	33,151			22,903			(22,816		)
Other (expense) income	(53,636		)	(54,268		)	(24,900		)	2,019
Net loss	$	(54,255	)	$	(21,117	)	$	(1,997	)	$	(20,797	)
Other data:
Cash flows provided by (used in) operating activities	$	73,369		$	89,458		$	99,811		$	(13,617	)
Cash flows provided by (used in) investing activities	$	37,830		$	(61,718	)	$	(490,814	)	$	(1,225,532	)
Cash flows (used in) provided by financing activities	$	(110,484	)	$	28,000		$	364,587		$	1,340,325
Per share data:
Basic and diluted net loss per share	$	(0.83	)	$	(0.32	)	$	(0.03	)	$	(0.72	)
Distributions declared per share	$	1.65		$	1.65		$	1.65		$	1.65
Basic and diluted weighted-average shares outstanding	65,450,432			66,028,245			64,333,260			28,954,769

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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements. The following information contains forward-looking statements, which are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements. Please see "Forward-Looking Statements" elsewhere in this report for a description of these risks and uncertainties.

Overview

American Finance Trust, Inc. (the "Company," "we" "our" or "us") is a diversified REIT with a retail focus. We own a diversified portfolio of commercial properties which are net leased primarily to investment grade and other creditworthy tenants and a portfolio of stabilized core retail properties, consisting primarily of power centers and lifestyle centers, which were acquired in the Merger (as defined below). Prior to the Merger, we acquired a diversified portfolio of commercial properties comprised primarily of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants. We intend to focus our future acquisitions primarily on net leased retail properties and stabilized core retail properties. As of December 31, 2016, we owned 455 properties with an aggregate purchase price of $2.2 billion, comprised of 13.3 million rentable square feet, which were 100.0% leased. If the Merger and the disposition of the Merrill Lynch Properties (defined below) had been completed on December 31, 2016, we would have owned 487 properties comprised of 20.3 million rentable square feet, which would have been 97.3% leased, including 452 net leased commercial properties and 35 stabilized core retail properties.

Incorporated on January 22, 2013, we are a Maryland corporation that elected and qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with the taxable year ended December 31, 2013. Substantially all of our business is conducted through American Finance Operating Partnership, L.P. (the "OP"), a Delaware limited partnership, and its wholly-owned subsidiaries.

On April 4, 2013, we commenced our initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 68.0 million shares of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. The IPO closed in October 2013. As of December 31, 2016, we had 65.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to our distribution reinvestment plan (the "DRIP"), and had received total proceeds from the IPO and the DRIP, net of share repurchases, of $1.6 billion. In 2017, we issued approximately 38.2 million shares of common stock pursuant to the Merger.

On March 17, 2016, our board of directors approved an estimated net asset value per share of our common stock ("Estimated Per-Share NAV") equal to $24.17 as of December 31, 2015, which was published on March 18, 2016. Our shares of common stock have been approved for listing on the NYSE under the symbol "AFIN" (the "Listing"), subject to compliance with all applicable listing standards on the date it begins trading on the NYSE. Our approval for listing is valid through August 2017, although we may apply to extend the outside date for listing. While we intend to list our shares of common stock on the NYSE at a time yet to be determined by our board of directors, there can be no assurance as to when or if our common stock will commence trading on the NYSE.

We have no employees. We have retained American Finance Advisors, LLC (our "Advisor") to manage our affairs on a day-to-day basis. American Finance Properties, LLC (the "Property Manager") serves as our property manager. The Advisor and the Property Manager are wholly owned subsidiaries of AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global" or our "Sponsor"), as a result of which, they are related parties of ours, and each have received or may receive, as applicable, compensation, fees and expense reimbursements for services related to managing our business.

Completed Mergers and Significant Disposals

American Realty Capital — Retail Centers of America, Inc. Merger

On September 6, 2016, the Company and the OP entered into an Agreement and Plan of Merger (the “Merger Agreement”) with American Realty Capital — Retail Centers of America, Inc. ("RCA"), American Realty Capital Retail Operating Partnership, L.P. (the “RCA OP”) and Genie Acquisition, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (the “Merger Sub”). The Merger Agreement provided for (a) the merger of RCA with and into the Merger Sub (the “Merger”), with the Merger Sub surviving as a wholly owned subsidiary of the Company and (b) the merger of theRCA OP with and into the OP, with the OP as the surviving entity (the “Partnership Merger”, and together with the Merger, the “Mergers”). The Mergers became effective on February 16, 2017.

Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Mergers (the “Effective Time”), each outstanding share of common stock of RCA, $0.01 par value per share (“RCA Common Stock”) (including any restricted shares of RCA Common Stock and fractional shares), was converted into the right to receive (x) a number of shares of our common stock, $0.01 par value per share (the “Company Common Stock”) equal to 0.385 shares of Company Common Stock (the “Stock Consideration”) and (y) cash from us, in an amount equal to $0.95 per share (the “Cash Consideration,” and together with the Stock Consideration, the “Merger Consideration”).

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In addition, at the Effective Time, (i) each unit of partnership interest of the RCA OP designated as an OP Unit issued and outstanding immediately prior to the Effective Time (other than those held by RCA as described in clause (ii) below) was automatically converted into 0.424 validly issued units of limited partnership interest of the OP (the “Partnership Merger Consideration”); (ii) each unit of partnership interest of the RCA OP designated as either an OP Unit or a GP Unit held by RCA and issued and outstanding immediately prior to the Effective Time was automatically converted into 0.385 validly issued units of limited partnership interest of the OP; (iii) each unit of partnership interest of the RCA OP designated as a Class B Unit held by RCA’s advisor and a sub-advisor issued and outstanding immediately prior to the Effective Time was converted into the Partnership Merger Consideration (the “Class B Consideration,” and together with the Partnership Merger Consideration and the Merger Consideration, the “Total Merger Consideration”) and (iv) the interest of American Realty Capital Retail Advisor, LLC, the special limited partner of the RCA OP (the “RCA Advisor”), in the RCA OP was redeemed for a cash payment, determined in accordance with the existing terms of the RCA OP’s agreement of limited partnership.

In addition, as provided in the Merger Agreement, all outstanding restricted stock of RCA became fully vested and entitled to receive the Merger Consideration.

In 2017, we issued approximately 38.2 million shares of Company Common Stock as consideration in the Merger and paid approximately $94.3 million as Cash Consideration.

In connection with the execution of the Merger Agreement, the OP entered into a binding commitment, pursuant to which UBS Securities LLC, UBS AG, Stamford Branch and Citizens Bank, N.A. have committed to provide a $360.0 million bridge loan facility, subject to customary conditions. We did not borrow any funds under the bridge loan facility.

Prior to the Mergers, the Company and RCA each were sponsored, directly or indirectly, by AR Global. AR Global and its affiliates provide investment and advisory services to us, and previously provided such services to RCA, pursuant to written advisory agreements. In 2017, in connection with, and subject to the terms and conditions of the Merger Agreement, RCA OP units held by AR Global and its affiliates were exchanged for OP Units of the Company and certain special limited partner interests in the RCA OP held by AR Global and its affiliates were, consistent with the terms of the RCA OP partnership agreement, redeemed for a cash payment of approximately $2.8 million.

The RCA Advisor was previously party to a service agreement, a property management and a leasing agreement with an independent third party, Lincoln Retail REIT Services, LLC, a Delaware limited liability company ("Lincoln"), pursuant to which Lincoln provided, subject to the RCA Advisor's oversight, real estate-related services, including acquisition, disposition, asset management and property management services, and leasing and construction oversight, as needed. The RCA Advisor passed through to Lincoln a portion of the fees and/or other expense reimbursements payable to the RCA Advisor for the performance of certain real estate-related services. In connection with the Mergers, the Advisor engaged in discussions with Lincoln for the engagement of Lincoln as the service provider for certain of RCA’s retail properties that are now owned by us, such that Lincoln would provide acquisition, property management and leasing services related to such retail properties. However, the Advisor and Lincoln were unable to enter into a satisfactory definitive agreement prior to the closing of the Mergers, and, on February 16, 2017, RCA provided Lincoln with notice of termination of the service agreement, the property management agreement and the leasing agreement. The Advisor and Lincoln continue to engage in discussions related to Lincoln providing such retail properties certain services.

Accounting Treatment for the Mergers

The Mergers will be accounted for under the acquisition method of accounting under U.S. GAAP. Under the acquisition method of accounting, the assets acquired and liabilities assumed from RCA will be recorded as of the acquisition date at their respective fair values. Any excess of purchase price over the fair values will be recorded as goodwill. Alternatively, if fair value of net assets acquired exceeds fair value of the Total Merger Consideration, the transaction could result in a bargain purchase gain that we would recognize immediately in earnings. Results of operations for RCA will be included in our consolidated financial statements subsequent to the Effective Date.

Merrill Lynch Disposition

We entered into a purchase and sale agreement dated as of October 11, 2016, as amended on November 10, 2016, November 18, 2016, November 23, 2016 and December 1, 2016, for the sale of three properties leased to Merrill Lynch, Pierce, Fenner & Smith (the "Merrill Lynch Properties") owned by us for a purchase price of $148.0 million, exclusive of closing costs. We consummated the disposition of the Merrill Lynch Properties on January 31, 2017. The disposal of the Merrill Lynch Properties does not represent a strategic shift.

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Significant Accounting Estimates and Critical Accounting Policies

Set forth below is a summary of the significant accounting estimates and critical accounting policies that management believes are important to the preparation of our consolidated financial statements. Certain of our accounting estimates are particularly important for an understanding of our financial position and results of operations and require the application of significant judgment by our management. As a result, these estimates are subject to a degree of uncertainty. These significant accounting estimates and critical accounting policies include:

Revenue Recognition

Our revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Because many of our leases provide for rental increases at specified intervals, straight-line basis accounting requires us to record a receivable, and include in revenues, unbilled rents receivable that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When we acquire a property, the acquisition date is considered to be the commencement date for purposes of this calculation. For new leases after acquisition, the commencement date is considered to be the date the tenant takes control of the space. For lease modifications, the commencement date is considered to be the date the lease is executed. We defer the revenue related to lease payments received from tenants in advance of their due dates.

We own certain properties with leases that include provisions for the tenant to pay contingent rental income based on a percent of the tenant's sales upon the achievement of certain sales thresholds or other targets which may be monthly, quarterly or annual targets. As the lessor to the aforementioned leases, we defer the recognition of contingent rental income, until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known. Contingent rental income is included in rental income on the consolidated statements of operations and comprehensive (loss) income.

We continually review receivables related to rent and unbilled rents receivable and determine collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, we record an increase in our allowance for uncollectible accounts or record a direct write-off of the receivable in our consolidated statements of operations and comprehensive (loss) income.

Cost recoveries from tenants are included in operating expense reimbursements in our consolidated statements of operations and comprehensive (loss) income in the period the related costs are incurred, as applicable.

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

We evaluate the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive (loss) income. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings, fixtures and tenant improvements. Intangible assets may include the value of in-place leases and above- and below- market leases. In addition, any assumed mortgages receivable or payable and any assumed or issued noncontrolling interests are recorded at their estimated fair values.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease, including any below-market fixed rate renewal options for below-market leases.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above or below-market interest rates.

In allocating non-controlling interests, amounts are recorded based on the fair value of units issued at the date of acquisition, as determined by the terms of the applicable agreement.

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In making estimates of fair values for purposes of allocating purchase price, we utilize a number of sources, including real estate valuations, prepared by independent valuation firms. We also consider information and other factors including: market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e.: location, size, demographics, value and comparative rental rates, tenant credit profile, store profitability and the importance of the location of the real estate to the operations of the tenant's business.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on our operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations and comprehensive (loss) income for all applicable periods.

Depreciation and Amortization

We are required to make subjective assessments as to the useful lives of the components of our real estate investments for purposes of determining the amount of depreciation to record on an annual basis. These assessments have a direct impact on our net income because if we were to shorten the expected useful lives of our real estate investments, we would depreciate these investments over fewer years, resulting in more depreciation expense and lower net income on an annual basis.

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are amortized as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

Assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining terms of the respective mortgages.

Impairment of Long-Lived Assets

When circumstances indicate the carrying value of a property may not be recoverable, we review the property for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Commercial Mortgage Loans

Commercial mortgage loans held for investment purposes are anticipated to be held until maturity, and accordingly, are carried at cost, net of unamortized acquisition fees and expenses capitalized, discounts or premiums and unfunded commitments. Commercial mortgage loans that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums and capitalized acquisition fees and expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income from debt investments in our consolidated statements of operations and comprehensive (loss) income. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan exit fees is recognized in interest income from debt investments in our consolidated statements of operations and comprehensive (loss) income.

Acquisition fees and expenses incurred in connection with the origination and acquisition of commercial mortgage loan investments are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment.

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Commercial mortgage loans held for sale are carried at the lower of cost or fair value. We evaluate fair value on an individual loan basis. The amount by which cost exceeds fair value is accounted for as a valuation allowance, and changes in the valuation allowance are included in net income. Purchase discounts are no longer amortized during the period the loans are held for sale.

Recently Adopted Accounting Pronouncements

In February 2015, the Financial Accounting Standards Board ("FASB") amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIE") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. We elected to adopt this guidance effective January 1, 2016. We have evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined our OP is considered a VIE. However, we meet the disclosure exemption criteria as we are the primary beneficiary of the VIE and our partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, the new guidance did not have a material impact on our consolidated financial statements.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. We elected to adopt this guidance effective January 1, 2016. As a result, we reclassified $15.5 million and $20.1 million of deferred issuance costs related to our mortgage notes payable from deferred costs, net to mortgage notes payable in our consolidated balance sheets as of December 31, 2016 and December 31, 2015, respectively.

In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. We have adopted the provisions of this guidance beginning January 1, 2016, electing to account for forfeitures when they occur, and determined that there is no impact to our consolidated financial position, results of operations and cash flows.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. We are evaluating the impact of the implementation of this guidance, including performing a preliminary review of all revenue streams to identify any differences in the timing, measurement or presentation of revenue recognition. We are continuing to evaluate the allowable methods of adoption.

In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity's accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. We are currently evaluating the impact of the new guidance.

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In February 2016, the FASB issued an update which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. We have begun developing an inventory of all leases as well as identifying any non-lease components in our lease arrangements. We are continuing to evaluate the impact of this new guidance.

In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of this new guidance.

In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. We are currently evaluating the impact of this new guidance.

In August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of this new guidance.

In October 2016, the FASB issued guidance relating to interest held through related parties that are under common control, where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the impact of this new guidance.

In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of this new guidance.

In January 2017, the FASB issued guidance that revises the definition of a business. This new guidance is applicable when evaluating whether an acquisition should be treated as either a business acquisition or an asset acquisition. Under the revised guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset or group of similar assets, the assets acquired would not be considered a business. The revised guidance is effective for reporting periods beginning after December 15, 2017, and the amendments will be applied prospectively. Early application is permitted only for transactions that have not previously been reported in issued financial statements. We have assessed this revised guidance and expect, based on historical property acquisitions, for future properties acquired to qualify as an asset acquisition rather than a business acquisition, which would result in the capitalization of related transaction costs. We have not adopted this guidance as of December 31, 2016.

Results of Operations

We were incorporated on January 22, 2013 and purchased our first property and commenced active operations on April 29, 2013. As of December 31, 2016, we owned 455 properties with an aggregate base purchase price of $2.2 billion, comprised of 13.3 million rentable square feet that were 100.0% leased on a weighted-average basis.

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Comparison of the Year Ended December 31, 2016 to the Year Ended December 31, 2015

There were 451 properties that we owned for the entirety of the years ended December 31, 2016 and 2015 (our "2015-2016 Same Store") with an aggregate base purchase price of $2.1 billion, comprised of 13.0 million rentable square feet that were 100.0% leased. In February 2016, we acquired four properties (our "2016 Acquisitions) for an aggregate base purchase price of $34.4 million, comprised of 0.3 million rentable square feet. During 2016, we sold 12 properties (our "2016 Disposals"), which had an aggregate base purchase price of $31.8 million and consisted of 0.1 million rentable square feet, for an aggregate contract price of$30.2 million, inclusive of closing costs. Also during 2016,we amended terms on160of our leases with SunTrust Bank (our "2016 Leasing Activity"), which in general extended the remaining lease terms of these leases, increasing our annualized straight-line rent from these properties. We did not purchase or sell any properties, or amend any lease terms during 2015.

Rental Income

Rental income increased $3.5 million to $164.4 million for the year ended December 31, 2016, compared to $160.9 million for the year ended December 31, 2015. This increase in rental income was primarily due to $2.2 million of incremental income from our 2016 acquisitions, as well as an increase in our 2015-2016 Same Store rental income of $2.5 million as a result of our 2016 Leasing Activity. These increases were partially offset by a decrease in rental income of $1.2 million due to our 2016 Disposals.

Operating Expense Reimbursements

Operating expense reimbursement revenue increased $0.7 million to $12.2 million for the year ended December 31, 2016, compared to $11.5 million for the year ended December 31, 2015. This increase was primarily driven by $0.3 million of operating expense reimbursements on our 2016 Acquisitions. Additionally, we received $0.3 million of contractual payments in connection with the sale of our 2016 Dispositions. Pursuant to certain of our lease agreements, tenants are required to reimburse us for certain property operating expenses, in addition to base rent, whereas under certain other lease agreements, the tenants are directly responsible for all operating costs of the respective properties.

Interest Income from Debt Investments

Interest income from debt investments decreased $1.0 million to $1.1 million for the year ended December 31, 2016 compared to $2.1 million for the year ended December 31, 2015. This decrease resulted from our sale of two of our commercial mortgage loans in the first quarter of 2016, as well as the sale of our commercial mortgage-backed securities during 2015. For the year ended December 31, 2016, the average carrying value of our commercial mortgage loans was $21.5 million, with a weighted-average yield of 4.57%. For the year ended December 31, 2015, we had commercial mortgage loans with a weighted-average balance of $26.7 million and a weighted-average yield of 5.16%, as well as commercial mortgage-backed securities with a weighted-average balance of $9.2 million and a weighted-average yield of 7.09%.

Asset Management Fees to Related Party

Asset management fees to related party increased $5.0 million to $18.0 million for the year ended December 31, 2016, compared to $13.0 million for the year ended December 31, 2015. We pay these fees to our Advisor for managing our day-to-day operations. The $5.0 million increase was due to changes in the contractual terms of our advisory agreement. From April 1, 2015 through July 20, 2015, we paid an asset management fee to our Advisor on a monthly basis based on our cost of assets. Subsequent to July 20, 2015, we pay our Advisor i) a base management fee with a fixed portion of $1.5 million payable monthly and a variable portion, if applicable, payable quarterly in arrears, and ii) a variable management fee, if applicable, payable quarterly in arrears. We did not incur the variable portion of the base management fee or a variable management fee during the years ended December 31, 2016 and 2015. Please see Note 12 —Related Party Transactions and Arrangements to our consolidated financial statements included in this Annual Report on Form 10-K for more information on fees incurred from our Advisor.

Property Operating Expense

Property operating expense increased $0.3 million to $13.6 million for the year ended December 31, 2016, compared to $13.3 million for the year ended December 31, 2015. This increase was primarily driven by property operating expense of $0.3 million from our 2016 Acquisitions. Property operating expenses primarily relate to the costs associated with maintaining our properties including real estate taxes, utilities, and repairs and maintenance. Most of these expenses are passed through and reimbursed by our tenants.

Impairment Charges

We incurred $27.3 million of impairment charges during the year ended December 31, 2016. As of December 31, 2016, there were 57 held for use single-tenant net lease properties operated by SunTrust which had lease terms set to expire between December 31, 2017 and March 31, 2018. As a result, we reconsidered our intended holding period for these properties and evaluated the impact on our ability to recover the carrying value of such properties based on the expected cash flows over our intended holding period. As a result of our consideration of impairment, we determined that the carrying value of 43 of the held for use SunTrust properties noted above exceeded their estimated fair values and recognized an aggregate impairment charge of $24.7 million for the year ended December 31, 2016.

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Additionally, $1.3 million of impairment charges related to the loss on sale of four single-tenant net lease properties operated by SunTrust, which were sold during the year ended December 31, 2016. The remaining $1.4 million of impairment charges were a result of reclassifying two additional single-tenant net lease properties operated by SunTrust as assets held for sale as of December 31, 2016, as the carrying amount of the long-lived assets associated with these properties was greater than the Company's estimate of their fair value less estimated costs to sell. We closed on the sale of these properties during the first quarter of 2017. No impairment charges were incurred during the year ended December 31, 2015.

Acquisition and Transaction Related Expense

Acquisition and transaction related expense increased $4.9 million to $7.1 million for the year ended December 31, 2016, compared to $2.2 million for the year ended December 31, 2015. Acquisition and transaction related expenses for the year ended December 31, 2016 were primarily due to costs incurred in connection with the Mergers of $6.5 million. These costs include fees to the special committee's financial advisor and legal counsel of $4.3 million, legal and other costs related to preparing Merger agreements and preparing and filing our joint registration statement on Form S-4 of $1.6 million, proxy solicitation fees of $0.4 million and fees to the special committee of the board of directors for their review of the Mergers of $0.2 million. Additionally, we incurred costs in connection with our sales of real estate investments and commercial mortgage loans of $0.6 million. Acquisition and transaction related expenses for the year ended December 31, 2015 primarily related to acquisition fees, legal fees and other closing costs associated with the origination and acquisition of our Commercial Real Estate ("CRE") Debt Investments and third party appraisal costs incurred in connection with our purchase price allocation procedures. There were no property acquisitions during the year ended December 31, 2015.

General and Administrative Expense

General and administrative expense decreased $0.1 million to $11.2 million for the year ended December 31, 2016, compared to $11.3 million for year ended December 31, 2015. This decrease primarily related to a decrease in audit and legal fees. This decrease was partially offset by an increase in fees incurred from related parties for cost reimbursements including personnel costs.

Depreciation and Amortization Expense

Depreciation and amortization expense decreased $0.4 million to $101.1 million for the year ended December 31, 2016, compared to $101.5 million for the year ended December 31, 2015. This decrease was driven primarily by a decrease in depreciation and amortization expense of $0.8 million on our 2016 Disposals. Additionally, our 2015-2016 Same Store depreciation and amortization expense decreased $0.7 million, primarily due to the fact that we stopped recognizing depreciation and amortization expense on the Merrill Lynch Properties once they were reclassified to assets held for sale. These decreases were partially offset by an increase in depreciation and amortization expense from our 2016 Acquisitions of $1.1 million. The purchase price of acquired properties is allocated to tangible and identifiable intangible assets and depreciated or amortized over their estimated useful lives.

Interest Expense

Interest expense increased $13.4 million to $54.3 million for the year ended December 31, 2016, compared to $40.9 million for the year ended December 31, 2015. This increase is primarily related to an increase in our weighted-average mortgage notes payable outstanding, partially offset by a decrease in our weighted-average credit facility outstanding, as we paid down and terminated the credit facility effective August 7, 2015. Additionally, we incurred $4.2 million of amortization related to commitment fees on a bridge loan facility in connection with the merger, which we did not draw on. The following table presents the weighted-average balances of our fixed-rate debt and credit facility borrowings outstanding, associated interest expense and corresponding weighted-average interest rates for the years ended December 31, 2016 and 2015, as well as the amortization of deferred financing costs and mortgage premiums for such periods:

	Year Ended December 31,
	2016							2015
(Dollar amounts in thousands)	Weighted-Average Carrying Value		Interest Expense			Weighted-Average Interest Rate		Weighted-Average Carrying Value		Interest Expense			Weighted-Average Interest Rate
Mortgage Notes Payable	$	1,045,695	$	49,814		4.75	%	$	715,256	$	37,754		5.19	%
Credit Facility	$	—	—			—	%	$	260,308	5,246			1.93	%
Amortization of deferred financing costs			8,650							5,099
Amortization of mortgage premiums			(4,211		)					(7,208		)
Interest Expense			$	54,253						$	40,891

Loss on Extinguishment of Debt

During theyear ended December 31, 2015, in connection with the termination of our credit facility, we wrote off $7.6 million of related deferred financing costs as a loss on extinguishment of debt. We did not incur any loss on extinguishment of debt during the year ended December 31, 2016.

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Loss on Sale of Commercial Mortgage-Backed Securities

We incurred a loss on the sale of our commercial mortgage-backed securities of $1.6 million during the year ended December 31, 2015, which had an aggregate cost basis of $30.3 million and sold for $28.7 million. No commercial mortgage-backed securities were sold during the year ended December 31, 2016.

Gain on Sale of Other Real Estate Securities

Gain on sale of other real estate securities of $0.7 million for the year ended December 31, 2015 resulted from the sale of investments in redeemable preferred stock and senior notes with an aggregate cost basis of $18.6 million for $19.3 million. No other real estate securities were sold during the year ended December 31, 2016.

Gain on Sale of Real Estate Investments

Gain on sale of real estate investments of $0.5 million for the year ended December 31, 2016 resulted from the sale of eight single-tenant net lease properties operated by SunTrust with an aggregate cost basis of $27.8 million for an aggregate contract price of $28.3 million, inclusive of closing costs. No real estate investments were sold during the year ended December 31, 2015.

Loss on Commercial Mortgage Loans Held for Sale

Loss on commercial mortgage loans held for sale of$5.5 millionfor theyear ended December 31, 2015relates to a fair value adjustment on our commercial mortgage loans, held for sale. Two of our commercial mortgage loans were held for sale as ofDecember 31, 2015, with a net cost of $62.4 million and a fair value of$56.9 million. We closed on the sale of these loans during the first quarter of 2016. There were no commercial mortgage loans held for sale as of December 31, 2016.

Comparison of the Year Ended December 31, 2015 to the Year Ended December 31, 2014

As of January 1, 2014, we owned 239 properties (our "Same Store") with an aggregate base purchase price of $1.1 billion, comprised of 7.5 million rentable square feet that were 100.0% leased on a weighted-average basis. We have acquired 224 properties since January 1, 2014 (our "2014 Acquisitions") for an aggregate base purchase price of $1.1 billion, comprised of 5.6 million rentable square feet. Accordingly, our results of operations for the year ended December 31, 2015 as compared to the year ended December 31, 2014 reflect significant increases in most categories due to our acquisition activity.

Rental Income

Rental income increased $14.8 million to $160.9 million for the year ended December 31, 2015, compared to $146.1 million for the year ended December 31, 2014. This increase in rental income was primarily due to our 2014 Acquisitions. Our Same Store rental income remained constant at $87.6 million.

Operating Expense Reimbursements

Operating expense reimbursement revenue decreased $0.7 million to $11.5 million for the year ended December 31, 2015, compared to $12.2 million for the year ended December 31, 2014. Pursuant to certain of our lease agreements, tenants are required to reimburse us for certain property operating expenses, in addition to base rent, whereas under certain other lease agreements, the tenants are directly responsible for all operating costs of the respective properties. This decrease was primarily driven by a decrease in our Same Store operating expense reimbursements of $0.9 million, as a result of a decrease in Same Store property operating expense. This decrease was partially offset by an increase in operating expense reimbursements from our 2014 Acquisitions of $0.2 million.

Interest Income from Debt Investments

Interest income from debt investments for the year ended December 31, 2015 of $2.1 million related to our CRE Debt Investments. For the year ended December 31, 2015, the average carrying value of our commercial mortgage loans and CMBS were $26.7 million and $9.2 million, respectively. For the year ended December 31, 2015, the weighted-average yields of our commercial mortgage loans and CMBS were 5.16% and 7.09%, respectively. We did not have CRE Debt Investments during the year ended December 31, 2014.

Asset Management Fees to Related Party

Asset management fees to related party for the year ended December 31, 2015 of $13.0 million were related to services that we received from our Advisor in connection with the management of our assets. From April 1, 2015 through July 20, 2015, we paid an asset management fee to our Advisor on a monthly basis based on our cost of assets. Subsequent to July 20, 2015, we pay a base management fee of $1.5 million per month that replaces the asset management fee. As of December 31, 2015, the Company had not incurred a variable management fee. Please see Note 12 —Related Party Transactions and Arrangements to our consolidated financial statements included in this Annual Report on Form 10-K for more information on fees incurred from our Advisor. There were no asset management fees to related party incurred during the year ended December 31, 2014.

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Property Operating Expense

Property operating expense decreased $0.2 million to $13.3 million for the year ended December 31, 2015, compared to $13.5 million for the year ended December 31, 2014. This decrease was primarily driven by a decrease in our Same Store property operating expense of $0.4 million, as a result of decreased utilities and maintenance expenses. This decrease was partially offset by an increase in property operating expense from our 2014 Acquisitions of $0.2 million. Property operating expenses primarily relate to the costs associated with maintaining our properties including real estate taxes, utilities, and repairs and maintenance.

Acquisition and Transaction Related Expense

Acquisition and transaction related expense decreased $20.4 million to $2.2 million for the year ended December 31, 2015, compared to $22.6 million for the year ended December 31, 2014. These expenses related to acquisition fees, legal fees and other closing costs associated with the origination and acquisition of our CRE Debt Investments and third party appraisal costs incurred in connection with our purchase price allocation procedures. These costs also related to advisory, investment banking, legal and marketing costs incurred related to the Listing. For the year ended December 31, 2014, acquisition and transaction related expense related to acquisition fees, legal fees and other closing costs associated with our 2014 Acquisitions, as well as costs related to advisory, investment banking, legal and marketing costs incurred related to the Listing. We did not acquire any properties during the year ended December 31, 2015.

General and Administrative Expense

General and administrative expense increased $5.3 million to $11.3 million (including $5.6 million incurred from related parties) for the year ended December 31, 2015, compared to $6.0 million (including $3.0 million incurred from related parties) for year ended December 31, 2014. This increase is partially due to higher legal and accounting fees, audit fees and state and local income taxes to support our current real estate portfolio. Additionally, there was an increase of $2.6 million in general and administrative costs incurred from related parties from the year ended December 31, 2014 to the year ended December 31, 2015, largely resulting from administrative services reimbursement expenses we began to incur in the third quarter of 2015 and increased OP Unit distribution expenses.

Depreciation and Amortization Expense

Depreciation and amortization expense increased $8.1 million to $101.5 million for the year ended December 31, 2015, compared to $93.4 million for the year ended December 31, 2014. This increase was primarily attributable to our 2014 Acquisitions, which resulted in an increase in depreciation and amortization expenses of $7.9 million. In addition, Same Store depreciation and amortization expense increased $0.2 million. The purchase price of acquired properties is allocated to tangible and identifiable intangible assets and depreciated or amortized over their estimated useful lives.

Interest Expense

Interest expense increased $13.2 million to $40.9 million for the year ended December 31, 2015, compared to $27.7 million for the year ended December 31, 2014. This increase is primarily related to an increase in our weighted-average mortgage notes payable outstanding, partially offset by a decrease in our weighted-average credit facility borrowings outstanding and an increase in amortization of mortgage premium. The following table presents the weighted-average balances of our fixed-rate debt and credit facility borrowings outstanding, associated interest expense and corresponding weighted-average interest rates for the years ended December 31, 2015 and 2014, as well as the amortization of deferred financing costs and mortgage premiums for such periods:

	Year Ended December 31,
	2015							2014
(Dollar amounts in thousands)	Weighted-Average Carrying Value		Interest Expense			Weighted-Average Interest Rate		Weighted-Average Carrying Value		Interest Expense			Weighted-Average Interest Rate
Mortgage Notes Payable	$	715,256	$	37,754		5.19	%	$	367,993	$	21,456		5.66	%
Credit Facility	$	260,308	5,246			1.93	%	$	338,308	7,718			2.12	%
Amortization of deferred financing costs			5,099							4,588
Amortization of mortgage premiums			(7,208		)					(6,097		)
Interest Expense			$	40,891						$	27,665

Loss on Extinguishment of Debt

During theyear ended December 31, 2015, in connection with the termination of our credit facility, we wrote off $7.6 million of related deferred financing costs as a loss on extinguishment of debt. We did not incur any loss on extinguishment of debt during the year ended December 31, 2014.

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Loss on Sale of Commercial Mortgage-Backed Securities

We incurred a loss on the sale of our commercial mortgage-backed securities of $1.6 million during the year ended December 31, 2015, which had an aggregate cost basis of $30.3 million and sold for $28.7 million. No commercial mortgage-backed securities were sold during the year ended December 31, 2014.

Distribution Income from Other Real Estate Securities

Distribution income from other real estate securities decreased $1.9 million to $0.4 million for the year ended December 31, 2015, compared to $2.3 million for the year ended December 31, 2014. This decrease resulted primarily from the sale of investments in redeemable preferred stock and senior notes during the year ended December 31, 2015. We held other real estate securities, at fair value, of $19.0 million as of December 31, 2014. We did not hold any such securities as of December 31, 2015.

Gain on Sale of Other Real Estate Securities

Gain on sale of investment securities increased $0.4 million to $0.7 million for the year ended December 31, 2015, compared to $0.3 million for the year ended December 31, 2014. The gain on sale of investment securities for the year ended December 31, 2015 resulted from the sale of investments in redeemable preferred stock and senior notes with an aggregate cost basis of $18.5 million for $19.3 million. The gain on sale of investment securities for the year ended December 31, 2014 resulted from the sale of investments in redeemable preferred stock and senior notes with an aggregate cost basis of $47.0 million for $47.3 million.

Loss on Commercial Mortgage Loans for Sale

Loss on commercial mortgage loans held for sale of $5.5 million relates to a fair value adjustment on our commercial mortgage loans, held for sale. Two of our commercial mortgage loans were held for sale as of December 31, 2015, with a net cost of $62.4 million and a fair value of $56.9 million. There were no assets held for sale as of December 31, 2014.

Other Income

Other income decreased $0.1 million to $0.1 million for the year ended December 31, 2015, compared to $0.2 million for the year ended December 31, 2014. Other income is primarily related to interest earned on our cash and cash equivalents.

Cash Flows for the Year Ended December 31, 2016

Cash flows provided by operating activities of $73.4 million during the year ended December 31, 2016 included a net loss adjusted for non-cash items of $78.7 million (net loss of $54.3 million adjusted for non-cash items, including depreciation and amortization of tangible and intangible real estate assets, amortization of deferred financing costs, impairment charges and share-based compensation, partially offset by amortization of mortgage premiums, discount accretion and premium amortization on investments, net and gain on sale of real estate investments of $133.0 million), an increase in accounts payable and accrued expenses of $3.2 million and an increase in deferred rent and other liabilities of $0.4 million. These operating cash flows were partially offset by an increase in prepaid expenses and other assets of $8.9 million.

The net cash provided by investing activities during the year ended December 31, 2016 of $37.8 million was generated from the proceeds from the sale of commercial mortgage loans of $56.9 million and the sale of real estate investments of $15.2 million, partially offset by amounts invested in real estate and other assets of $34.2 million.

The net cash used in financing activities of $110.5 million during the year ended December 31, 2016 consisted primarily of cash distributions of $87.5 million, common stock repurchases of $16.3 million, payments of deferred financing costs of $5.7 million and payments of mortgage notes payable of $1.0 million.

Cash Flows for the Year Ended December 31, 2015

During the year ended December 31, 2015, we had cash flows provided by operating activities of $89.5 million. The level of cash flows used in or provided by operating activities is affected by, among other things, the amount of acquisition and transaction related costs incurred, as well as the receipt of scheduled rent payments. Cash flows from operating activities during the year ended December 31, 2015 include $2.2 million of acquisition and transaction related costs. Cash flows from operating activities during the year ended December 31, 2015 included a net loss adjusted for non-cash items of $93.9 million (net loss of $21.1 million adjusted for non-cash items, including depreciation and amortization of tangible and intangible real estate assets, amortization of deferred financing costs, amortization of mortgage premiums, net accretion of discount and premium on investments, share-based compensation, loss on sale of CMBS, gain on sale of other real estate securities and loss on assets held for sale of $115.0 million), an increase in accounts payable and accrued expenses of $1.2 million and an increase in deferred rent of $2.3 million. Cash inflows were partially offset by a decrease in prepaid expenses and other assets of $7.9 million.

Net cash used in investing activities during the year ended December 31, 2015 of $61.7 million related to our origination of commercial mortgage loans of $79.4 million and our purchase of commercial mortgage-backed securities of $30.2 million, partially offset by proceeds from the sale of other real estate securities of $19.3 million and proceeds from the sale of commercial mortgage-backed securities of $28.6 million.

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Net cash provided by financing activities of $28.0 million during the year ended December 31, 2015 consisted primarily of proceeds from our mortgage notes payable of $780.0 million. These cash inflows were partially offset by cash distributions of $74.2 million, payments of deferred financing costs of $18.8 million, common stock repurchases of $31.7 million, payments on our credit facility of $423.0 million, payments of mortgage notes payable of $196.4 million and an increase in restricted cash of $7.9 million.

Cash Flows for the Year Ended December 31, 2014

During the year ended December 31, 2014, we had cash flows provided by operating activities of $99.8 million. The level of cash flows used in or provided by operating activities is affected by, among other things, the amount of acquisition and transaction related costs incurred, as well as the receipt of scheduled rent payments. Cash flows from operating activities during the year ended December 31, 2014 include $22.6 million of acquisition and transaction related costs. Cash flows from operating activities during the year ended December 31, 2014 included a net loss adjusted for non-cash items of $91.0 million (net loss of $2.0 million adjusted for non-cash items, including depreciation and amortization of tangible and intangible real estate assets, amortization of deferred financing costs, share-based compensation, gain on sale of investments and amortization of mortgage premiums, of $93.0 million). Cash flows from operating activities also included an increase in deferred rent and other liabilities of $6.0 million and an increase in accounts payable and accrued expenses of $2.4 million.

The net cash used in investing activities during the year ended December 31, 2014 of $490.8 million related to our investments in real estate and other assets of $538.1 million, partially offset by proceeds from the sale of investment securities of $47.3 million.

The net cash provided by financing activities of $364.6 million during the year ended December 31, 2014 consisted primarily of proceeds from our credit facility of $423.0 million. These cash inflows were partially offset by cash distributions of $44.9 million, payments of deferred financing costs of $10.6 million, common stock repurchases of $2.0 million and payments of mortgage notes payable of $1.0 million.

Liquidity and Capital Resources

As ofDecember 31, 2016, we had cash and cash equivalents of $131.2 million.Our principal demandsfor funds are forpayment of our operating and administrative expenses, debt service obligations, cash distributions to our stockholders and repurchases of our common stock pursuant to the share repurchase program (as amended and restated, the "SRP").

We expect to fund our future short-term operating liquidity requirements through a combination of cash on hand, net cash provided by our current property operations, proceeds from shares issued through our DRIP and proceeds from our secured mortgage financings.

We use debt financing to fund a portion of our capital needs. As of December 31, 2016, we had $1.0 billion of mortgage notes payable outstanding with a leverage ratio (total debt divided by total assets) of 50.0%. In connection with the Merger, we assumed from RCA mortgage notes payable of $127.7 million, as well as a credit facility with $304.0 million outstanding. The Company's mortgage notes payable and RCA's mortgage notes payable agreements require the compliance of certain property-level financial covenants including debt service coverage ratios. As of December 31, 2016, the Company and RCA were in compliance with the financial covenants under their mortgage notes payable agreements. Additionally, RCA's credit facility required RCA to meet certain financial covenants, including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. As of December 31, 2016, RCA was in compliance with the financial covenants under the Credit Agreement (as defined below).

On February 16, 2017, we, the OP, and certain other subsidiaries of ours acting as guarantors, entered into an amendment, assumption, joinder and reaffirmation of guaranties (the “Second Amendment”) to an unsecured amended and restated credit agreement, dated December 2, 2014 (the "Original Credit Agreement", and as amended by the Second Amendment, the “Credit Agreement”), by and among the RCA OP to which the OP is successor by merger, BMO Harris Bank N.A., as administrative agent, letter of credit issuer, swingline lender and a lender, and the other parties thereto, relating to the revolving credit facility noted above (the “Amended Credit Facility”), which related to the credit facility described above. The Second Amendment provides for, among other things, the OP to become the borrower and principal obligor under the Credit Agreement and the Amended Credit Facility, and for the Company to become a guarantor under the Amended Credit Facility. RCA and the RCA OP were parties to the Credit Agreement prior to closing of the Merger.

The Amended Credit Facility provides for aggregate revolving loan borrowings of up to $325.0 million (subject to unencumbered asset pool availability), a swingline subfacility of $25.0 million and a $20.0 million letter of credit subfacility, subject to certain conditions. Through an uncommitted “accordion feature,” the OP, subject to certain conditions, may increase commitments under the Amended Credit Facility to up to $575.0 million.

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The Amended Credit Facility will mature on May 1, 2018. Borrowings under the Amended Credit Facility will bear interest at either (i) the base rate (which is defined in the Credit Agreement as the greatest of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.50%, and (c) LIBOR for a one month interest period plus 1.00%) plus an applicable spread ranging from 0.35% to 1.00%, depending on the Company’s consolidated leverage ratio, or (ii) LIBOR plus an applicable spread ranging from 1.35% to 2.00%, depending on the Company’s consolidated leverage ratio.

The Amended Credit Facility provides for quarterly interest payments for each base rate loan and periodic interest payments for each LIBOR loan, based upon the applicable interest period (though no longer than three months) with respect to such LIBOR loan, with all principal outstanding being due on the maturity date. The Amended Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty. Upon the occurrence of an event of default, the requisite lenders have the right to terminate their obligations under the Amended Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Company, certain of its subsidiaries and certain subsidiaries of the OP will guarantee the obligations under the Amended Credit Facility.

Upon the closing of the Mergers, we paid the Cash Consideration of $94.3 million to RCA shareholders, which was funded from cash on hand at the time the Mergers were completed.

On January 31, 2017, we closed on the sale of the Merrill Lynch Properties for a purchase price of $148.0 million, exclusive of closing costs. This disposition resulted in net proceeds to us of $138.3 million.

Our board of directors has adopted the SRP that enables our stockholders to sell their shares to us under limited circumstances. At the time a stockholder requests a repurchase, we may, subject to certain conditions, repurchase the shares presented for repurchase for cash to the extent we have sufficient funds available. See Note 10 — Common Stock to our consolidated financial statements included in this Annual Report on Form 10-K for more information on terms and conditions of the SRP.

Funds from Operations and Modified Funds from Operations

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings, improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset diminishes predictably over time. We believe that, because real estate values historically rise and fall with market conditions, including, but not limited to, inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using the historical accounting convention for depreciation and certain other items may be less informative.

Because of these factors, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has published a standardized measure of performance known as funds from operations ("FFO"), which is used in the REIT industry as a supplemental performance measure. We believe FFO, which excludes certain items such as real estate-related depreciation and amortization, is an appropriate supplemental measure of a REIT's operating performance. FFO is not equivalent to our net income or loss as determined under GAAP.

We define FFO, a non-GAAP measure, consistent with the standards set forth in the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, but excluding gains or losses from sales of property and real estate related impairments, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

We believe that the use of FFO provides a more complete understanding of our performance to investors and to management, and reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income.

Changes in the accounting and reporting promulgations under GAAP that were put into effect in 2009 subsequent to the establishment of NAREIT's definition of FFO, such as the change to expense as incurred rather than capitalize and depreciate acquisition fees and expenses incurred for business combinations, have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses, as items that are expensed under GAAP across all industries. These changes had a particularly significant impact on publicly registered, non-listed REITs, which typically have a significant amount of acquisition activity in the early part of their existence, particularly during the period when they are raising capital through ongoing initial public offerings.

Because of these factors, the Investment Program Association (the "IPA"), an industry trade group, published a standardized measure of performance known as modified funds from operations ("MFFO"), which the IPA has recommended as a supplemental measure for publicly registered, non-listed REITs. MFFO is designed to be reflective of the ongoing operating performance of publicly registered, non-listed REITs by adjusting for those costs that are more reflective of acquisitions and investment activity, along with other items the IPA believes are not indicative of the ongoing operating performance of a publicly registered, non-listed REIT, such as straight-lining of rents as required by GAAP. We believe it is appropriate to use MFFO as a supplemental measure of operating performance because we believe that both before and after we have deployed all of our offering proceeds and are no longer incurring a significant amount of acquisitions fees or other related costs, it reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. MFFO is not equivalent to our net income or loss as determined under GAAP.

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We define MFFO, a non-GAAP measure, consistent with the IPA's Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the "Practice Guideline") issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for acquisition and transaction related fees and expenses and other items. In calculating MFFO, we follow the Practice Guideline and exclude acquisition and transaction-related fees and expenses (which includes costs incurred in connection with strategic alternatives), amounts relating to deferred rent receivables and amortization of market lease and other intangibles, net (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments), accretion of discounts and amortization of premiums on debt investments and borrowings, mark-to-market adjustments included in net income (including gains or losses incurred on assets held for sale), gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis.

We believe that, because MFFO excludes costs that we consider more reflective of acquisition activities and other non-operating items, MFFO can provide, on a going-forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring properties and once our portfolio is stabilized. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry and allows for an evaluation of our performance against other publicly registered, non-listed REITs.

Not all REITs, including publicly registered, non-listed REITs, calculate FFO and MFFO the same way. Accordingly, comparisons with other REITs, including publicly registered, non-listed REITs, may not be meaningful. Furthermore, FFO and MFFO are not indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as determined under GAAP as an indication of our performance, as an alternative to cash flows from operations, as an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with other GAAP measurements as an indication of our performance. FFO and MFFO should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The methods utilized to evaluate the performance of a publicly registered, non-listed REIT under GAAP should be construed as more relevant measures of operational performance and considered more prominently than the non-GAAP measures, FFO and MFFO, and the adjustments to GAAP in calculating FFO and MFFO.

Neither the SEC, NAREIT, the IPA nor any other regulatory body or industry trade group has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, NAREIT, the IPA or another industry trade group may publish updates to the White Paper or the Practice Guidelines or the SEC or another regulatory body could standardize the allowable adjustments across the publicly registered, non-listed REIT industry, and we would have to adjust our calculation and characterization of FFO or MFFO accordingly.

The table below reflects the items deducted or added to net loss in our calculation of FFO and MFFO for the periods presented:

	Three Months Ended												Year Ended December 31, 2016
(In thousands)	March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Net loss (in accordance with GAAP)	$	(5,854	)	$	(4,077	)	$	(8,729	)	$	(35,595	)	$	(54,255	)
Gain on sale of real estate investments	—			(454		)	—			—			(454		)
Impairment charges	—			—			117			27,182			27,299
Depreciation and amortization	25,493			25,538			25,446			24,666			101,143
FFO	19,639			21,007			16,834			16,253			73,733
Acquisition and transaction related fees and expenses	343			734			4,381			1,605			7,063
Amortization of market and other intangibles, net	415			119			(28		)	(29		)	477
Straight-line rent	(1,723		)	(1,682		)	(1,746		)	(1,679		)	(6,830		)
Amortization of mortgage premiums on borrowings	(976		)	(1,265		)	(980		)	(990		)	(4,211		)
Discount accretion on investments	(7		)	(8		)	(13		)	(12		)	(40		)
MFFO	$	17,691		$	18,905		$	18,448		$	15,148		$	70,192

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Distributions

In April 2013, our board of directors authorized, and we declared, a distribution payable on a monthly basis to stockholders of record on each day at a rate equal to $0.00452054795 per day, which is equivalent to $1.65 per annum, per share of common stock. In March 2016, our board of directors ratified the existing distribution amount equivalent to $1.65 per annum, and, for calendar year 2016, affirmed a change to the daily distribution amount to $0.00450819672 per day per share of common stock, effective January 1, 2016, to reflect that 2016 is a leap year. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month.

The amount of distributions payable to our stockholders is determined by our board of directors and is dependent on a number of factors, including funds available for distribution, our financial condition, capital expenditure requirements, as applicable, requirements of Maryland law and annual distribution requirements needed to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). Our board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

During the year ended December 31, 2016, distributions paid to common stockholders totaled $108.0 million, inclusive of $20.5 million of distributions that were reinvested in additional shares of our common stock through our DRIP. During the year ended December 31, 2016, cash used to pay distributions was generated from cash flows provided by operations and retained cash flows from prior years.

The following table shows the sources for the payment of distributions to common stockholders, including distributions on unvested restricted stock, for the periods indicated:

	Three Months Ended																				Year Ended December 31, 2016
	March 31, 2016					June 30, 2016					September 30, 2016					December 31, 2016
(Dollar amounts in thousands)				Percentage of Distributions					Percentage of Distributions					Percentage of Distributions					Percentage of Distributions					Percentage of Distributions
Distributions to stockholders	$	26,767				$	27,004				$	27,237				$	26,996				$	108,004
Source of distribution coverage:
Cash flows provided by operations (1)	$	26,767		100.0	%	$	27,004		100.0	%	$	27,237		100.0	%	$	26,996		100.0	%	$	108,004		100.0	%
Total source of distribution coverage	$	26,767		100.0	%	$	27,004		100.0	%	$	27,237		100.0	%	$	26,996		100.0	%	$	108,004		100.0	%
Cash flows provided by operations (GAAP basis)	$	20,585				$	17,630				$	17,539				$	17,615				$	73,369
Net loss (in accordance with GAAP)	$	(5,854	)			$	(4,077	)			$	(8,729	)			$	(35,595	)			$	(54,255	)

_____________________

(1) Includes $6.2 million, $9.4 million, $9.7 million, $9.3 million and $34.6 million of cash flows provided by operations in prior periods and not previously distributed for the three months ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016 and the year ended December 31, 2016, respectively.

Loan Obligations

The payment terms of certain of our mortgage loan obligations require principal and interest payments monthly, with all unpaid principal and interest due at maturity. Our loan agreements stipulate that we comply with specific reporting covenants. As of December 31, 2016, we were in compliance with the debt covenants under our loan agreements.

Our Advisor may, with approval from our board of directors, seek to borrow short-term capital that, combined with secured mortgage financing, exceeds our targeted leverage ratio. As of December 31, 2016, our leverage ratio (total debt divided by total assets) was 50.0%.

94

Contractual Obligations

The following table reflects contractual debt obligations under our mortgage notes payable based on anticipated repayment dates, as well as minimum base rental cash payments due for leasehold interests over the next five years and thereafter as of December 31, 2016. These minimum base rental cash payments due for leasehold interests amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items:

			Years Ended December 31,
(In thousands)	Total		2017		2018-2019		2020-2021		Thereafter
Principal on mortgage notes payable	$	1,037,767	$	83,393	$	2,354	$	946,272	$	5,748
Interest on mortgage notes payable	179,703		45,634		89,298		43,801		970
Ground lease rental payments due	8,375		921		1,805		1,019		4,630
	$	1,225,845	$	129,948	$	93,457	$	991,092	$	11,348

The following table reflects contractual debt obligations under our mortgage notes payable based on anticipated repayment dates, as well as minimum base rental cash payments due for leasehold interests over the next five years and thereafter as of December 31, 2016 on a pro forma basis, giving effect to the Mergers and the disposition of the Merrill Lynch Properties. These minimum base rental cash payments due for leasehold interests amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items:

			Years Ended December 31,
(In thousands)	Total		2017		2018-2019		2020-2021		Thereafter
Principal on mortgage notes payable	$	1,165,600	$	84,578	$	67,715	$	986,369	$	26,938
Interest on mortgage notes payable	200,764		51,686		97,610		48,194		3,274
Credit Facility	304,000		—		304,000		—		—
Interest on Credit Facility	11,809		6,149		5,660		—		—
Ground lease rental payments due	8,375		921		1,805		1,019		4,630
	$	1,690,548	$	143,334	$	476,790	$	1,035,582	$	34,842

Several of the loan agreements on our mortgage notes payable feature anticipated repayment dates in advance of the stated maturity dates. Please see table below:

Portfolio	Maturity	Anticipated Repayment
SAAB Sensis I	Apr. 2025	Apr. 2025
SunTrust Bank II	Jul. 2031	Jul. 2021
C&S Wholesale Grocer I	Apr. 2037	Apr. 2017
SunTrust Bank III	Jul. 2031	Jul. 2021
SunTrust Bank IV	Jul. 2031	Jul. 2021
Sanofi US I - New Loan	Jul. 2026	Jan. 2021
Stop & Shop I	Jun. 2041	Jun. 2021
Multi-Tenant Mortgage Loan	Sep. 2020	Sep. 2020

Election as a REIT

We elected to be taxed as a REIT under Sections 856 through 860 of the Code, effective for our taxable year ended December 31, 2013. We believe that, commencing with such taxable year, we have been organized and have operated in a manner so that we qualify for taxation as a REIT under the Code. We intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to remain qualified as a REIT. In order to continue to qualify for taxation as a REIT, we must distribute annually at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard for the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organizational and operational requirements. If we continue to qualify for taxation as a REIT, we generally will not be subject to federal corporate income tax on that portion of our REIT taxable income that we distribute to our stockholders. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and properties, as well as federal income and excise taxes on our undistributed income.

95

Inflation

Some of our leases with our tenants contain provisions designed to mitigate the adverse impact of inflation. These provisions generally increase rental rates during the terms of the leases either at fixed rates or indexed escalations (based on the Consumer Price Index or other measures). We may be adversely impacted by inflation on the leases that do not contain indexed escalation provisions. However, our net leases require the tenant to pay its allocable share of operating expenses, which may include common area maintenance costs, real estate taxes and insurance. This may reduce our exposure to increases in costs and operating expenses resulting from inflation.

Related-Party Transactions and Agreements

Please see Note 12 —Related Party Transactions and Arrangements to our consolidated financial statements included in this Annual Report on Form 10-K.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse changes in market prices or interest rates.  Our long-term debt, which consists of secured financings, bears interest at fixed rates. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. We would not hold or issue these derivative contracts for trading or speculative purposes. We do not have any foreign operations and thus are not exposed to foreign currency fluctuations.

As of December 31, 2016, our debt consisted of fixed-rate secured mortgage financings with a gross carrying value of $1.0 billion and a fair value of $1.1 billion. Changes in market interest rates on our fixed-rate debt impact the fair value of the debt, but it has no impact on interest expense incurred or cash flow. For instance, if interest rates rise 100 basis points and our fixed-rate debt balance remains constant, we expect the fair value of our obligation to decrease, the same way the price of a bond declines as interest rates rise. The sensitivity analysis related to our fixed–rate debt assumes an immediate 100 basis point move in interest rates from their December 31, 2016 levels, with all other variables held constant. A 100 basis point increase in market interest rates would result in a decrease in the fair value of our fixed-rate debt by $34.4 million. A 100 basis point decrease in market interest rates would result in an increase in the fair value of our fixed-rate debt by $35.7 million.

These amounts were determined by considering the impact of hypothetical interest rate changes on our borrowing costs, and, assuming no other changes in our capital structure. The information presented above includes only those exposures that existed as of December 31, 2016 and does not consider exposures or positions arising after that date. The information represented herein has limited predictive value. Future actual realized gains or losses with respect to interest rate fluctuations will depend on cumulative exposures, hedging strategies employed and the magnitude of the fluctuations.

Item 8. Financial Statements and Supplementary Data.

The information required by this Item 8 is hereby incorporated by reference to our Consolidated Financial Statements beginning on page F-1 of this Annual Report on Form 10-K.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Company is required to establish and maintain disclosure controls and procedures as defined in subparagraph (e) of that rule. Management is required to evaluate, with the participation of its Chief Executive Officer and Chief Financial Officer, the effectiveness of its disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 10-K. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded, as of the end of such period, that our disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in our reports that we file or submit under the Exchange Act.

96

Management's Annual Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) promulgated under the Exchange Act and as set forth below. Under Rule 13a-15(c), management must evaluate, with the participation of the Chief Executive Officer and Chief Financial Officer, the effectiveness, as of the end of each calendar year, of the Company's internal control over financial reporting. The term internal control over financial reporting is defined as a process designed by, or under the supervision of, the issuer's principal executive and principal financial officers, or persons performing similar functions, and effected by the issuer's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer;

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

In the course of preparing this Annual Report on Form 10-K and the consolidated financial statements included herein, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2016 using the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the Internal Control-Integrated Framework (2013). Based on that evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2016.

KPMG LLP, an independent registered public accounting firm was engaged to audit the consolidated financial statements as of and for the years ended December 31, 2016 and 2015 included in this Annual Report on Form 10-K, and their audit report is included on Page F-2 of this Annual Report on Form 10-K. KPMG LLP was not engaged to audit the effectiveness of the Company's internal control over financial reporting as of December 31, 2016 and accordingly you will not find a report from KPMG LLP regarding the effectiveness of internal controls over financial reporting in this Annual Report on Form 10-K.

Changes in Internal Control over Financial Reporting

No change occurred in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended December 31, 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item9B. Other Information.

None.

97

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

We have adopted a Code of Ethics that applies to all of our executive officers and directors, including but not limited to, our principal executive officer and principal financial officer. A copy of our code of ethics may be obtained, free of charge, by sending a written request to our executive office: 405 Park Avenue – 14th Floor, New York, NY 10022, Attention: Chief Financial Officer. Our code of ethics is also publicly available on our website at www.americanfinancetrust.com/wp-content/uploads/2013/10/ARCTVCodeofethics.pdf. If we make any substantive amendments to the code of ethics or grant any waiver, including any implicit waiver, from a provision of the code of ethics to our chief executive officer, chief financial officer, chief accounting officer or controller or persons performing similar functions, we will disclose the nature of the amendment or waiver on that website or in a report on Form 8-K.

Additional information required by this Item is incorporated by reference to our proxy statement to be filed with the SEC with respect to our 2017 annual meeting of stockholders (the "Proxy Statement").

Item 11. Executive Compensation.

The information required by this Item is incorporated by reference to our Proxy Statement to be filed with the SEC with respect to our 2017 annual meeting of stockholders.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information required by this Item is incorporated by reference to our Proxy Statement to be filed with the SEC with respect to our 2017 annual meeting of stockholders.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information required by this Item is incorporated by reference to our Proxy Statement to be filed with the SEC with respect to our 2017 annual meeting of stockholders.

Item 14. Principal Accounting Fees and Services.

The information required by this Item is incorporated by reference to our Proxy Statement to be filed with the SEC with respect to our 2017 annual meeting of stockholders.

98

PART IV

Item 15. Exhibits, Financial Statement Schedules.

(a)    Financial Statement Schedules

See the Index to Consolidated Financial Statements at page F-1 of this report.

The following financial statement schedules are included herein beginning at page F-36 of this report:

Schedule III — Real Estate and Accumulated Depreciation — Part I

Schedule III — Real Estate and Accumulated Depreciation — Part II

Schedule IV — Mortgage Loans on Real Estate

(b)    Exhibits

EXHIBIT INDEX

The following exhibits are included, or incorporated by reference, in this Annual Report on Form 10-K for the year ended December 31, 2016 (and are numbered in accordance with Item 601 of Regulation S-K):

Exhibit No.	Description
2.1 (14)	Agreement and Plan of Merger, dated as of September 6, 2016, among American Finance Trust, Inc., American Finance Operating Partnership, L.P., Genie Acquisition, LLC, American Realty Capital - Retail Centers of America, Inc. and American Realty Capital Retail Operating Partnership, L.P.
3.1 (8)	Articles of Amendment and Restatement
3.2 (7)	Third Amended and Restated Bylaws
4.1 (11)	Amended and Restated Agreement of Limited Partnership of American Finance Operating Partnership, L.P., dated as of September 6, 2016
4.2 (14)	Amendment No. 1 to Amended and Restated Limited Partnership Agreement of American Finance Operating Partnership, L.P., dated as of February 16, 2017
10.1 (11)	Third Amended and Restated Advisory Agreement, dated as of September 6, 2016, by and among the Company, American Finance Operating Partnership, L.P. and American Finance Advisors, LLC
10.2 (11)	Amended and Restated Property Management Agreement, dated as of September 6, 2016, by and among the Company and American Finance Properties, LLC (as assignee of American Realty Capital Retail Advisor, LLC)
10.3 (11)	Amended and Restated Leasing Agreement, dated as of September 6, 2016, by and among American Finance Trust, Inc. and American Finance Properties, LLC (as assignee of American Realty Capital Retail Advisor, LLC)
10.4 (11)	Amended and Restated Property Management and Leasing Agreement, dated as of September 6, 2016, by and among American Finance Trust, Inc., American Finance Trust Operating Partnership, L.P. and American Finance Properties, LLC
10.5 (7)	Amended and Restated Employee and Director Incentive Restricted Share Plan of the Company
10.6 (10)	Form of Restricted Stock Unit Award Agreement Pursuant to the Employee and Director Incentive Restricted Share Plan of American Finance Trust, Inc.
10.7 (2)	Credit Agreement, dated as of September 23, 2013, among American Realty Capital Operating Partnership V, L.P., the lenders party thereto and JPMorgan Chase Bank, N.A.
10.8 (3)	First Amendment to Credit Agreement, dated as of November 22, 2013, among American Realty Capital Operating Partnership V, L.P., the Company, the lenders party thereto and JPMorgan Chase Bank, N.A.
10.9 (3)	Second Amendment to Credit Agreement, dated as of December 19, 2013, among American Realty Capital Operating Partnership V, L.P., the Company, the lenders party thereto and JPMorgan Chase Bank, N.A.
10.10 (4)	Third Amendment to Credit Agreement, dated as of February 11, 2014, among American Realty Capital Operating Partnership V, L.P., the Company, the lenders party thereto and JPMorgan Chase Bank, N.A.
10.11 (4)	Fourth Amendment to Credit Agreement, dated as of March 12, 2014, among American Realty Capital Operating Partnership V, L.P., the Company, the lenders party thereto and JPMorgan Chase Bank, N.A.
10.12 (5)	Fifth Amendment to Credit Agreement, dated as of June 6, 2014, among American Realty Capital Operating Partnership V, L.P., the Company, the lenders party thereto and JPMorgan Chase Bank, N.A.
10.13 (8)	Loan Agreement dated as of August 7, 2015 among Barclays Bank PLC, Column Financial, Inc. and UBS Real Estate Securities, Inc. as Lenders and certain subsidiaries of American Finance Operating Partnership, LP, as Borrowers
10.14 (8)	Limited Recourse Guaranty dated as of August 7, 2015 by American Finance Trust, Inc. in favor of Barclays Bank PLC, Column Financial, Inc. and UBS Real Estate Securities, Inc.

99

Exhibit No.	Description
10.15 (7)	Indemnification Agreement by and among the Company, Peter M. Budko, Robert H. Burns, David Gong, William M. Kahane, Stanley R. Perla, Nicholas Radesca, Nicholas S. Schorsch, Edward M. Weil, Jr., American Realty Capital Advisors V, LLC, AR Capital, LLC and RCS Capital Corporation, dated December 31, 2014
10.16 (12)	Indemnification Agreement by and between the Company and Herbert Vederman, dated May 14, 2015
10.17 (13)	Indemnification Agreement by and between the Company, Donald MacKinnon, Donald R. Ramon and Andrew Winer, dated May 26, 2015
10.18 (8)	Indemnification Agreement by and between the Company and Lisa D. Kabnick, dated August 3, 2015
10.19 *	Agreement for Purchase and Sale of Real Property, dated as of October 12, 2016, by and between ARC DB5PROP001, LLC, American Finance Operating Partnership, L.P. and Capital Commercial Investments, Inc.
10.20 *	First Amendment to Agreement for Purchase and Sale of Real Property, dated as of November 10, 2016, by and between ARC DB5PROP001, LLC, American Finance Operating Partnership, L.P. and Capital Commercial Investments, Inc.
10.21 *	Second Amendment to Agreement for Purchase and Sale of Real Property, dated as of November 18, 2016, by and between ARC DB5PROP001, LLC, American Finance Operating Partnership, L.P. and Capital Commercial Investments, Inc.
10.22 *	Third Amendment to Agreement for Purchase and Sale of Real Property, dated as of November 23, 2016, by and between ARC DB5PROP001, LLC, American Finance Operating Partnership, L.P. and Capital Commercial Investments, Inc.
10.23 *	Reinstatement and Fourth Amendment to Agreement for Purchase and Sale of Real Property, dated as of December 1, 2016, by and between ARC DB5PROP001, LLC, American Finance Operating Partnership, L.P. and Capital Commercial Investments, Inc.
10.24 (14)	Second Amendment to Amended and Restated Credit Agreement, Assumption, Joinder and Reaffirmation of Guaranties, dated as of February 16, 2017, among American Finance Operating Partnership, L.P., as successor to American Realty Capital Operating Partnership, L.P., Genie Acquisition, LLC as successor to American Realty Capital - Retail Centers of America, Inc., American Finance Trust, Inc., the guarantors party thereto, the lenders party thereto and BMO Harris Bank N.A.
10.25 (14)	Indemnification Agreement, dated as of February 16, 2017, by and between American Finance Trust, Inc. and Leslie D. Michelson and Edward G. Rendell
14.1 (1)	Code of Ethics
16.1 (6)	Letter from Grant Thornton LLP to the Securities and Exchange Commission dated January 28, 2015
21.1 *	List of Subsidiaries
31.1 *	Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 *	Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32 *	Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 *	XBRL (eXtensible Business Reporting Language). The following materials from American Finance Trust, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2016, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive (Loss) Income, (iii) the Consolidated Statements of Changes in Stockholders' Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements.

____________________

*     Filed herewith.

(1) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 on May 14, 2013.

(2) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 filed with the SEC on November 14, 2013.

(3) Filed as an exhibit to the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 10, 2014.

(4) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 filed with the SEC on May 13, 2014.

(5) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 filed with the SEC on August 1, 2014.

(6) Filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on January 28, 2015.

(7) Filed as an exhibit to the Company's Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on May 15, 2015.

100

(8) Filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 filed with the SEC on August 11, 2015.

(9) Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 filed with the SEC on May 13, 2016.

(10) Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 filed with the SEC on August 11, 2016.

(11) Filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on September 7, 2016.

(12) Filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 filed with the SEC on November 10, 2016.

(13) Filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on December 30, 2016

(14) Filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on February 17, 2017.

101

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized this 13th day of March, 2017.

AMERICAN FINANCE TRUST, INC.
By:	/s/ EDWARD M. WEIL, JR.
	EDWARD M. WEIL, JR.
	CHIEF EXECUTIVE OFFICER, PRESIDENT AND CHAIRMAN OF THE BOARD OF DIRECTORS

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name	Capacity	Date
/s/ Edward M. Weil, Jr.	Chief Executive Officer, President and Chairman of the Board of Directors (Principal Executive Officer)	March 13, 2017
Edward M. Weil, Jr.
/s/ Nicholas Radesca	Chief Financial Officer, Treasurer and Secretary (Principal Financial Officer and Principal Accounting Officer)	March 13, 2017
Nicholas Radesca
/s/ David Gong	Lead Independent Director	March 13, 2017
David Gong
/s/ Stanley Perla	Independent Director	March 13, 2017
Stanley Perla
/s/ Lisa D. Kabnick	Independent Director	March 13, 2017
Lisa D. Kabnick
/s/ Leslie D. Michelson	Independent Director	March 13, 2017
Leslie D. Michelson
/s/ Edward G. Rendell	Independent Director	March 13, 2017
Edward G. Rendell

102

AMERICAN FINANCE TRUST, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of December 31, 2016 and 2015	F-3
Consolidated Statements of Operations and Comprehensive (Loss) Income for the Years Ended December 31, 2016, 2015 and 2014	F-4
Consolidated Statements of Changes in Stockholders' Equity for the Years Ended December 31, 2016, 2015 and 2014	F-5
Consolidated Statements of Cash Flows for the Years Ended December 31, 2016, 2015 and 2014	F-6
Notes to Consolidated Financial Statements	F-8
Financial Statement Schedules:
Schedule III — Real Estate and Accumulated Depreciation — Part I	F-38
Schedule III — Real Estate and Accumulated Depreciation — Part II	F-52
Schedule IV — Mortgage Loans on Real Estate	F-53

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders

American Finance Trust, Inc.:

We have audited the accompanying consolidated balance sheets of American Finance Trust, Inc. and subsidiaries (the "Company") as of December 31, 2016 and 2015, and the related consolidated statements of operations and comprehensive (loss) income, changes in stockholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2016. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedules titled Schedule III — Real Estate and Accumulated Depreciation — Part I, as of December 31, 2016, Schedule III — Real Estate and Accumulated Depreciation — Part II, for the years ended December 31, 2016, 2015 and 2014, and Schedule IV — Mortgage Loans on Real Estate as of December 31, 2016. These consolidated financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of American Finance Trust, Inc. and subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

/s/ KPMG LLP

New York, New York

March 13, 2017

F-2

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	December 31,
	2016			2015
ASSETS
Real estate investments, at cost:
Land	$	328,656		$	358,278
Buildings, fixtures and improvements	1,395,602			1,540,821
Acquired intangible lease assets	300,129			319,028
Total real estate investments, at cost	2,024,387			2,218,127
Less: accumulated depreciation and amortization	(287,090		)	(215,427		)
Total real estate investments, net	1,737,297			2,002,700
Cash and cash equivalents	131,215			130,500
Restricted cash	7,890			7,887
Commercial mortgage loan, held for investment, net	17,175			17,135
Prepaid expenses and other assets	29,513			21,982
Deferred costs, net	3,767			—
Assets held for sale	137,602			56,884
Total assets	$	2,064,459		$	2,237,088
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable, net of deferred financing costs	$	1,022,275		$	1,033,582
Mortgage premiums, net	10,681			14,892
Market lease liabilities, net	13,915			18,133
Accounts payable and accrued expenses (including $910 and $541 due to related parties as of December 31, 2016 and 2015, respectively)	13,553			24,964
Deferred rent and other liabilities	9,970			9,569
Distributions payable	9,199			9,199
Total liabilities	1,079,593			1,110,339
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, none issued and outstanding	—			—
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 65,805,184 and 64,961,256 shares issued and outstanding as of December 31, 2016 and 2015, respectively	658			650
Additional paid-in capital	1,449,662			1,429,294
Accumulated deficit	(465,454		)	(303,195		)
Total stockholders' equity	984,866			1,126,749
Total liabilities and stockholders' equity	$	2,064,459		$	2,237,088

The accompanying notes are an integral part of these audited consolidated financial statements.

F-3

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

(In thousands, except share and per share data)

	Year Ended December 31,
	2016			2015			2014
Revenues:
Rental income	$	164,386		$	160,865		$	146,139
Operating expense reimbursements	12,232			11,495			12,241
Interest income from debt investments	1,050			2,138			—
Total revenues	177,668			174,498			158,380
Operating expenses:
Asset management fees to related party	18,000			13,009			—
Property operating	13,614			13,258			13,492
Impairment charges	27,299			—			—
Acquisition and transaction related	7,063			2,220			22,595
General and administrative	11,168			11,314			6,011
Depreciation and amortization	101,143			101,546			93,379
Total operating expenses	178,287			141,347			135,477
Operating (loss) income	(619		)	33,151			22,903
Other (expense) income:
Interest expense	(54,253		)	(40,891		)	(27,665		)
Loss on extinguishment of debt	—			(7,564		)	—
Loss on sale of commercial mortgage-backed securities	—			(1,585		)	—
Distribution income from other real estate securities	—			363			2,279
Gain on sale of other real estate securities, net	—			738			297
Gain on sale of real estate investments	454			—			—
Loss on commercial mortgage loans held for sale	—			(5,476		)	—
Other income	163			147			189
Total other expense, net	(53,636		)	(54,268		)	(24,900		)
Net loss	$	(54,255	)	$	(21,117	)	$	(1,997	)
Other comprehensive (loss) income:
Change in unrealized (loss) income on investment securities	—			(463		)	7,444
Comprehensive (loss) income	$	(54,255	)	$	(21,580	)	$	5,447
Basic and diluted weighted-average shares outstanding	65,450,432			66,028,245			64,333,260
Basic and diluted net loss per share	$	(0.83	)	$	(0.32	)	$	(0.03	)

The accompanying notes are an integral part of these audited consolidated financial statements.

F-4

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(In thousands, except share data)

	Common Stock
	Number of Shares		Par Value			Additional Paid-in Capital			Accumulated Other Comprehensive (Loss) Income			Accumulated Deficit			Total Stockholders' Equity
Balance, December 31, 2013	62,985,937		$	630		$	1,383,066		$	(6,981	)	$	(64,901	)	$	1,311,814
Changes in offering costs	—		—			201			—			—			201
Common stock issued through distribution reinvestment plan	2,566,242		26			60,951			—			—			60,977
Common stock repurchases	(295,825	)	(3		)	(7,092		)	—			—			(7,095		)
Share-based compensation, net of forfeitures	1,600		—			21			—			—			21
Distributions declared	—		—			—			—			(106,200		)	(106,200		)
Net loss	—		—			—			—			(1,997		)	(1,997		)
Other comprehensive income	—		—			—			7,444			—			7,444
Balance, December 31, 2014	65,257,954		653			1,437,147			463			(173,098		)	1,265,165
Common stock issued through distribution reinvestment plan	1,469,319		15			34,791			—			—			34,806
Common stock repurchases	(1,769,738	)	(18		)	(42,695		)	—			—			(42,713		)
Share-based compensation, net of      forfeitures	3,721		—			51			—			—			51
Distributions declared	—		—			—			—			(108,980		)	(108,980		)
Net loss	—		—			—			—			(21,117		)	(21,117		)
Other comprehensive loss	—		—			—			(463		)	—			(463		)
Balance, December 31, 2015	64,961,256		650			1,429,294			—			(303,195		)	1,126,749
Common stock issued through distribution reinvestment plan	848,059		8			20,491			—			—			20,499
Common stock repurchases	(7,854	)	—			(190		)	—			—			(190		)
Share-based compensation	3,723		—			67			—			—			67
Distributions declared	—		—			—			—			(108,004		)	(108,004		)
Net loss	—		—			—			—			(54,255		)	(54,255		)
Balance, December 31, 2016	65,805,184		$	658		$	1,449,662		$	—		$	(465,454	)	$	984,866

The accompanying notes are an integral part of these audited consolidated financial statements.

F-5

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Year Ended December 31,
	2016			2015			2014
Cash flows from operating activities:
Net loss	$	(54,255	)	$	(21,117	)	$	(1,997	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	66,831			66,946			62,571
Amortization of in-place lease assets	34,247			34,600			30,808
Amortization (including accelerated write-off) of deferred costs	8,716			12,663			4,588
Amortization of mortgage premiums on borrowings	(4,211		)	(7,208		)	(6,096		)
Discount accretion and premium amortization on investments, net	(40		)	(96		)	—
Amortization of market lease intangibles, net	477			1,666			1,421
Share-based compensation	67			51			21
Gain on sale of real estate investments	(454		)	—			—
Impairment charges	27,299			—			—
Loss on sale of commercial mortgage-backed securities	—			1,585			—
Gain on sale of other real estate securities, net	—			(738		)	(297		)
Loss on commercial mortgage loans held for sale	—			5,476			—
Changes in assets and liabilities:
Prepaid expenses and other assets	(8,882		)	(7,878		)	353
Accounts payable and accrued expenses	3,173			1,177			2,417
Deferred rent and other liabilities	401			2,331			6,022
Net cash provided by operating activities	73,369			89,458			99,811
Cash flows from investing activities:
Origination of commercial mortgage loans	—			(79,410		)	—
Proceeds from sale of commercial mortgage loans	56,884			—			—
Proceeds from sale of commercial mortgage-backed securities	—			28,624			—
Purchase of commercial mortgage-backed securities	—			(30,198		)	—
Investments in real estate and other assets	(34,244		)	—			(538,130		)
Proceeds from sale of real estate investments	15,190			—			—
Proceeds from sale of other real estate securities	—			19,266			47,316
Net cash provided by (used in) investing activities	37,830			(61,718		)	(490,814		)
Cash flows from financing activities:
Proceeds from mortgage notes payable	—			780,000			—
Payments on mortgage notes payable	(1,014		)	(196,431		)	(989		)
Proceeds from credit facility	—			—			423,000
Payments on credit facility	—			(423,000		)	—
Payments of financing costs	(5,709		)	(18,806		)	(10,622		)
Proceeds from issuances of common stock	—			—			127
Payments of offering costs and fees related to stock issuances, net	—			—			(37		)
Common stock repurchases	(16,253		)	(31,725		)	(2,020		)
Distributions paid	(87,505		)	(74,151		)	(44,872		)
Restricted cash	(3		)	(7,887		)	—
Net cash (used in) provided by financing activities	(110,484		)	28,000			364,587
Net change in cash and cash equivalents	715			55,740			(26,416		)
Cash and cash equivalents, beginning of period	130,500			74,760			101,176
Cash and cash equivalents, end of period	$	131,215		$	130,500		$	74,760

F-6

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Supplemental Disclosures:
Cash paid for interest	$	49,140		$	42,696	$	27,115
Cash paid for income taxes	$	739		$	877	$	422
Accrued common stock repurchases	$	—		$	16,063	$	5,075
Non-Cash Investing and Financing Activities:
Mortgage notes payable released in connection with disposition of real estate	$	(14,867	)	$	—	$	—
Mortgage notes payable assumed or used to acquire investments in real estate	$	—		$	—	$	462,238
Premiums on assumed mortgage notes payable	$	—		$	—	$	27,862
Common stock issued through distribution reinvestment plan	$	20,499		$	34,806	$	60,977

The accompanying notes are an integral part of these audited consolidated financial statements.

F-7

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Note 1 — Organization

American Finance Trust, Inc. (the "Company"), formerly known as American Realty Capital Trust V, Inc., is a diversified REIT with a retail focus. The Company owns a diversified portfolio of commercial properties which are net leased primarily to investment grade and other creditworthy tenants and a portfolio of stabilized core retail properties, consisting primarily of power centers and lifestyle centers, which were acquired in the Merger (as defined in Note 2 — Completed Mergers and Significant Disposals). Prior to the Merger, the Company acquired a diversified portfolio of commercial properties comprised primarily of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants. The Company intends to focus its future acquisitions on net leased properties, which are expected to consist primarily of retail properties, and stabilized core retail properties. As of December 31, 2016, the Company owned 455 properties with an aggregate purchase price of $2.2 billion, comprised of 13.3 million rentable square feet, which were 100.0% leased.

The Company, incorporated on January 22, 2013, is a Maryland corporation that elected and qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with the taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through American Finance Operating Partnership, L.P. (the "OP"), a Delaware limited partnership and its wholly-owned subsidiaries.

On April 4, 2013, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 68.0 million shares of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. The IPO closed in October 2013. As of December 31, 2016, the Company had 65.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the Company's distribution reinvestment plan (the "DRIP"), and had received total proceeds from the IPO and the DRIP, net of share repurchases, of $1.6 billion.

The Company has no employees. The Company has retained American Finance Advisors, LLC (the "Advisor") to manage the Company's affairs on a day-to-day basis. American Finance Properties, LLC (the "Property Manager") serves as the Company's property manager. The Advisor and the Property Manager are wholly owned subsidiaries of AR Global Investments, LLC (the successor business to AR Capital, LLC, the "Sponsor" or "AR Global"), as a result of which, they are related parties of the Company, and each have received or will receive, as applicable, compensation, fees and expense reimbursements for services related to managing the Company's business.

The shares of the Company's common stock have been approved for listing on the New York Stock Exchange (the "NYSE") under the symbol "AFIN" (the "Listing"), subject to the Company being in compliance with all applicable listing standards on the date it begins trading on the NYSE. The Company's approval for listing is valid through August 2017, although it may apply to extend the outside date for listing. While the Company intends to list its shares of common stock on the NYSE at a time yet to be determined by its board of directors, there can be no assurance as to when or if the Company's common stock will commence trading on the NYSE.

Note 2 — Completed Mergers and Significant Disposals

American Realty Capital — Retail Centers of America, Inc. Merger

On September 6, 2016, the Company and the OP entered into an Agreement and Plan of Merger (the “Merger Agreement”) with American Realty Capital — Retail Centers of America, Inc. (“RCA”), American Realty Capital Retail Operating Partnership, L.P. (the “RCA OP”) and Genie Acquisition, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (the “Merger Sub”). The Merger Agreement provided for (a) the merger of RCA with and into the Merger Sub (the “Merger”), with the Merger Sub surviving as a wholly owned subsidiary of the Company and (b) the merger of the RCA OP with and into the OP, with the OP as the surviving entity (the “Partnership Merger”, and together with the Merger, the “Mergers”). The Mergers became effective on February 16, 2017.

Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Mergers (the “Effective Time”), each outstanding share of common stock of RCA, $0.01 par value per share (“RCA Common Stock”) (including any restricted shares of RCA Common Stock and fractional shares), was converted into the right to receive (x) a number of shares of common stock of the Company, $0.01 par value per share (the “Company Common Stock”) equal to 0.385 shares of Company Common Stock (the “Stock Consideration”) and (y) cash from the Company, in an amount equal to $0.95 per share (the “Cash Consideration,” and together with the Stock Consideration, the “Merger Consideration”).

F-8

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

In addition, at the Effective Time, (i) each unit of partnership interest of the RCA OP designated as an OP Unit issued and outstanding immediately prior to the Effective Time (other than those held by RCA as described in clause (ii) below) was automatically converted into 0.424 validly issued units of limited partnership interest of the OP (the “Partnership Merger Consideration”); (ii) each unit of partnership interest of the RCA OP designated as either an OP Unit or a GP Unit held by RCA and issued and outstanding immediately prior to the Effective Time was automatically converted into 0.385 validly issued units of limited partnership interest of the OP; (iii) each unit of partnership interest of the RCA OP designated as a Class B Unit held by RCA’s advisor and a sub-advisor issued and outstanding immediately prior to the Effective Time was converted into the Partnership Merger Consideration (the “Class B Consideration,” and together with the Partnership Merger Consideration and the Merger Consideration, the “Total Merger Consideration”) and (iv) the interest of American Realty Capital Retail Advisor, LLC, the special limited partner of the RCA OP (the “RCA Advisor”), in the RCA OP was redeemed for a cash payment, determined in accordance with the existing terms of the RCA OP’s agreement of limited partnership.

In addition, as provided in the Merger Agreement, all outstanding restricted stock of RCA became fully vested and entitled to receive the Merger Consideration.

In 2017, the Company issued approximately 38.2 million shares of Company Common Stock as consideration in the Merger and paid approximately $94.3 million in Cash Consideration.

In connection with the execution of the Merger Agreement, the OP entered into a binding commitment, pursuant to which UBS Securities LLC, UBS AG, Stamford Branch and Citizens Bank, N.A. committed to provide a $360.0 million bridge loan facility, subject to customary conditions. The Company did not borrow any funds under the bridge loan facility.

Prior to the Mergers, the Company and RCA each were sponsored, directly or indirectly, by AR Global. AR Global and its affiliates provide investment and advisory services to the Company, and previously provided such services to RCA, pursuant to written advisory agreements. In 2017, in connection with, and subject to the terms and conditions of the Merger Agreement, RCA OP units held by AR Global and its affiliates were exchanged for OP Units of the Company and certain special limited partner interests in the RCA OP held by AR Global and its affiliates were, consistent with the terms of the RCA OP partnership agreement, redeemed for a cash payment of approximately $2.8 million.

The RCA Advisor was previously party to a service agreement, a property management and a leasing agreement with an independent third party, Lincoln Retail REIT Services, LLC, a Delaware limited liability company ("Lincoln"), pursuant to which Lincoln provided, subject to the RCA Advisor's oversight, real estate-related services, including acquisition, disposition, asset management and property management services, and leasing and construction oversight, as needed. The RCA Advisor passed through to Lincoln a portion of the fees and/or other expense reimbursements payable to the RCA Advisor for the performance of certain real estate-related services. In connection with the Mergers, the Advisor engaged in discussions with Lincoln for the engagement of Lincoln as the service provider for certain of RCA’s retail properties that are now owned by the Company, such that Lincoln would provide acquisition, property management and leasing services related to such retail properties. However, the Advisor and Lincoln were unable to enter into a satisfactory definitive agreement prior to the closing of the Mergers, and, on February 16, 2017, RCA provided Lincoln with notice of termination of the service agreement, the property management agreement and the leasing agreement. The Advisor and Lincoln continue to engage in discussions related to Lincoln providing such retail properties certain services.

Accounting Treatment for the Mergers

The Mergers will be accounted for under the acquisition method of accounting under U.S. GAAP. Under the acquisition method of accounting, the assets acquired and liabilities assumed from RCA will be recorded as of the acquisition date at their respective fair values. Any excess of purchase price over the fair values will be recorded as goodwill. Alternatively, if fair value of net assets acquired exceeds fair value of the Total Merger Consideration, the transaction could result in a bargain purchase gain that the Company would recognize immediately in earnings. Results of operations for RCA will be included in the Company’s consolidated financial statements subsequent to the Effective Date.

Merrill Lynch Disposition

The Company entered into a purchase and sale agreement dated as of October 11, 2016, as amended on November 10, 2016, November 18, 2016, November 23, 2016 and December 1, 2016, for the sale of three properties leased to Merrill Lynch, Pierce, Fenner & Smith (the "Merrill Lynch Properties") owned by the Company for a purchase price of $148.0 million, exclusive of closing costs. The Company consummated the disposition of the Merrill Lynch Properties on January 31, 2017. The disposal of the Merrill Lynch Properties does not represent a strategic shift.

F-9

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Note 3 —Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP").

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.

Reportable Segment

The Company has one reportable segment, income-producing properties, which consists of activities related to investing in real estate. 

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, and fair value measurements, as applicable.

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company evaluates the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive (loss) income. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings, fixtures and tenant improvements. Intangible assets may include the value of in-place leases and above- and below- market leases. In addition, any assumed mortgages receivable or payable and any assumed or issued noncontrolling interests are recorded at their estimated fair values.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease, including any below-market fixed rate renewal options for below-market leases.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above or below-market interest rates.

In allocating non-controlling interests, amounts are recorded based on the fair value of units issued at the date of acquisition, as determined by the terms of the applicable agreement.

F-10

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including real estate valuations, prepared by independent valuation firms. The Company also considers information and other factors including: market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e.: location, size, demographics, value and comparative rental rates, tenant credit profile, store profitability and the importance of the location of the real estate to the operations of the tenant's business.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations and comprehensive (loss) income for all applicable periods.

Depreciation and Amortization

The Company is required to make subjective assessments as to the useful lives of the components of the Company's real estate investments for purposes of determining the amount of depreciation to record on an annual basis. These assessments have a direct impact on the Company's net income because if the Company were to shorten the expected useful lives of its real estate investments, it would depreciate these investments over fewer years, resulting in more depreciation expense and lower net income on an annual basis.

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are amortized as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

Assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining terms of the respective mortgages.

Impairment of Long-Lived Assets

When circumstances indicate the carrying value of a property may not be recoverable, we review the property for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Commercial Mortgage Loans

Commercial mortgage loans held for investment purposes are anticipated to be held until maturity, and accordingly, are carried at cost, net of unamortized acquisition fees and expenses capitalized, discounts or premiums and unfunded commitments. Commercial mortgage loans that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums and capitalized acquisition fees and expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income from debt investments in the Company's consolidated statements of operations and comprehensive (loss) income. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan exit fees is recognized in interest income from debt investments in the Company's consolidated statements of operations and comprehensive (loss) income.

F-11

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Acquisition fees and expenses incurred in connection with the origination and acquisition of commercial mortgage loan investments are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment.

Commercial mortgage loans held for sale are carried at the lower of cost or fair value. The Company evaluates fair value on an individual loan basis. The amount by which cost exceeds fair value is accounted for as a valuation allowance, and changes in the valuation allowance are included in net income. Purchase discounts are no longer amortized during the period the loans are held for sale.

Cash and Cash Equivalents

Cash and cash equivalents include cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less and funds in overnight sweeps, in which excess funds over an established threshold are swept daily. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (the "FDIC") up to an insurance limit. As of December 31, 2016, the Company had deposits of $131.2 million of which $130.7 million were in excess of the amount insured by the FDIC. As of December 31, 2015, the Company had deposits of $130.5 million of which $129.7 million were in excess of the amount insured by the FDIC. Although the Company bears risk to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result thereof.

Deferred Costs, Net

Deferred costs, net consists of deferred financing costs, deferred commitment fees and deferred leasing costs, net of accumulated amortization.

Deferred financing costs represent legal fees and other costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method and included in interest expense on the accompanying consolidated statements of operations and comprehensive (loss) income. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity.  Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

Deferred commitment fees represent fees associated with obtaining commitments for financing. These costs are amortized over the term of the commitment period.

Deferred leasing costs, consisting primarily of lease commissions and payments made to execute new leases, are deferred and amortized over the term of the lease.

Revenue Recognition

The Company's revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Because many of the Company's leases provide for rental increases at specified intervals, straight-line basis accounting requires the Company to record a receivable, and include in revenues, unbilled rents receivable that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When the Company acquires a property, acquisition date is considered to be the commencement date for purposes of this calculation. For new leases after acquisition, the commencement date is considered to be the date the tenant takes control of the space. For lease modifications, the commencement date is considered to be the date the lease is executed. The Company defers the revenue related to lease payments received from tenants in advance of their due dates.

The Company owns certain properties with leases that include provisions for the tenant to pay contingent rental income based on a percent of the tenant's sales upon the achievement of certain sales thresholds or other targets which may be monthly, quarterly or annual targets. As the lessor to the aforementioned leases, the Company defers the recognition of contingent rental income, until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known. Contingent rental income is included in rental income on the accompanying consolidated statements of operations and comprehensive (loss) income.

The Company continually reviews receivables related to rent and unbilled rents receivable and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company records an increase in the Company's allowance for uncollectible accounts or records a direct write-off of the receivable in the Company's consolidated statements of operations and comprehensive (loss) income.

F-12

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Cost recoveries from tenants are included in operating expense reimbursements on the accompanying consolidated statements of operations and comprehensive (loss) income in the period the related costs are incurred, as applicable.

Offering and Related Costs

Offering and related costs included all expenses incurred in connection with the Company's IPO. Some offering costs (other than selling commissions and the dealer manager fee) of the Company were paid by the Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. These costs included but were not limited to (i) legal, accounting, printing, mailing, and filing fees; (ii) escrow related fees; (iii) reimbursement of the Former Dealer Manager for amounts it paid to reimburse the itemized and detailed due diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organization and offering costs paid by them on behalf of the Company, provided that the Advisor is obligated to reimburse the Company to the extent organization and offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in its offering exceed 2.0% of gross offering proceeds. As a result, these costs were only a liability of the Company to the extent selling commissions, the dealer manager fees and other organization and offering costs did not exceed 12.0% of the gross proceeds determined at the end of the IPO. As of the end of the IPO, offering costs were less than 12.0% of the gross proceeds received in the IPO (See Note 12 —Related Party Transactions and Arrangements).

Share-Based Compensation

The Company has a stock-based award plan, which is accounted for under the guidance for share based payments. The expense for such awards is included in general and administrative expenses and is recognized in accordance with the service period required or when the requirements for exercise of the award have been met (See Note 14 —Share-Based Compensation).

Income Taxes

The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with the taxable year ended December 31, 2013. The Company believes that, commencing with such taxable year, it has been organized and has operated in a manner so that it qualifies for taxation as a REIT under the Code. The Company intends to continue to operate in such a manner, but no assurance can be given that the Company will operate in a manner so as to remain qualified as a REIT. In order to continue to qualify for taxation as a REIT, the Company must distribute annually at least 90% of its REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard for the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organizational and operational requirements. If the Company continues to qualify for taxation as a REIT, it generally will not be subject to federal corporate income tax on that portion of its REIT taxable income that it distributes to its stockholders. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and properties, as well as federal income and excise taxes on its undistributed income.

The amount of distributions payable to the Company's stockholders is determined by the board of directors and is dependent on a number of factors, including funds available for distribution, financial condition, capital expenditure requirements, as applicable, and annual distribution requirements needed to qualify and maintain the Company's status as a REIT under the Code.

The following table details from a tax perspective, the portion of distributions classified as return of capital, ordinary dividend income and capital gain, per share per annum, for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
	2016				2015				2014
Return of capital	76.0	%	$	1.25	89.9	%	$	1.48	55.5	%	$	0.91
Ordinary dividend income	24.0	%	0.40		10.1	%	0.17		44.2	%	0.73
Capital gain	—	%	—		—	%	—		0.3	%	0.01
Total	100.0	%	$	1.65	100.0	%	$	1.65	100.0	%	$	1.65

Per Share Data

Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock considers the effect of potentially dilutive instruments outstanding during such period.

F-13

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Recently Adopted Accounting Pronouncements

In February 2015, the Financial Accounting Standards Board ("FASB") amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company elected to adopt this guidance effective January 1, 2016. As a result, the Company reclassified $15.5 million and $20.1 million of deferred issuance costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable in the Company's consolidated balance sheets as of December 31, 2016 and December 31, 2015, respectively.

In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016, electing to account for forfeitures when they occur, and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company is evaluating the impact of the implementation of this guidance, including performing a preliminary review of all revenue streams to identify any differences in the timing, measurement or presentation of revenue recognition. The Company is continuing to evaluate the allowable methods of adoption.

In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity's accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of the new guidance.

F-14

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

In February 2016, the FASB issued an update which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company has begun developing an inventory of all leases as well as identifying any non-lease components in our lease arrangements. The Company is continuing to evaluate the impact of this new guidance.

In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. The company is currently evaluating the impact of this new guidance.

In August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In October 2016, the FASB issued guidance relating to interest held through related parties that are under common control, where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In January 2017, the FASB issued guidance that revises the definition of a business. This new guidance is applicable when evaluating whether an acquisition should be treated as either a business acquisition or an asset acquisition. Under the revised guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset or group of similar assets, the assets acquired would not be considered a business. The revised guidance is effective for reporting periods beginning after December 15, 2017, and the amendments will be applied prospectively. Early application is permitted only for transactions that have not previously been reported in issued financial statements. The Company has assessed this revised guidance and expects, based on historical property acquisitions, for future properties acquired to qualify as an asset acquisition rather than a business acquisition, which would result in the capitalization of related transaction costs. The Company has not adopted this guidance as of December 31, 2016.

F-15

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Note 4 — Real Estate Investments

The Company owned 455 properties, which were acquired for investment purposes, as of December 31, 2016. The following table presents the allocation of assets acquired and liabilities assumed during the years ended December 31, 2016 and 2014. No properties were acquired during the year ended December 31, 2015.

(Dollar amounts in thousands)	Year Ended December 31, 2016			Year Ended December 31, 2014
Real estate investments, at cost:
Land	$	1,729		$	210,379
Buildings, fixtures and improvements	29,664			672,121
Total tangible assets	31,393			882,500
Acquired intangibles:
In-place leases (1)	3,162			175,152
Above-market lease assets (1)	548			13,403
Above-market ground lease liability (1)	(85		)	—
Below-market lease liabilities (1)	(774		)	(19,692		)
Total intangible assets, net	2,851			168,863
Mortgage notes payable assumed	—			(462,238		)
Premiums on mortgage notes payable assumed	—			(27,862		)
Deposits paid in prior periods	—			(33,035		)
Cash paid for acquired real estate investments	$	34,244		$	528,228
Number of properties purchased	4			224

_____________________________________

(1) Weighted-average remaining amortization periods for in-place leases, above-market lease assets, above-market ground lease liability and below-market lease liabilities acquired during the year ended December 31, 2016 were 9.5 years, 9.6 years, 48.6 years and 9.5 years, respectively, as of each property's respective acquisition date.

Total acquired intangible lease assets and liabilities consist of the following as of the dates presented:

	December 31, 2016						December 31, 2015
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	286,548	$	95,547	$	191,001	$	305,245	$	68,278	$	236,967
Above-market leases	13,581		8,106		5,475		13,783		5,555		8,228
Total acquired intangible lease assets	$	300,129	$	103,653	$	196,476	$	319,028	$	73,833	$	245,195
Intangible liabilities:
Above-market ground lease liability	$	85	$	1	$	84	$	—	$	—	$	—
Below-market lease liabilities	18,443		4,612		13,831		20,623		2,490		18,133
Total acquired intangible lease liabilities	$	18,528	$	4,613	$	13,915	$	20,623	$	2,490	$	18,133

F-16

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

The following table presents amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(In thousands)	2016			2015			2014
In-place leases	$	34,247		$	34,600		$	30,808
Total added to depreciation and amortization	$	34,247		$	34,600		$	30,808
Above-market leases	$	(2,943	)	$	(3,006	)	$	(2,549	)
Below-market lease liabilities	2,465			1,340			1,128
Total deducted from rental income	$	(478	)	$	(1,666	)	$	(1,421	)
Above-market ground lease liability	$	(1	)	$	—		$	—
Total deducted from property operating expense	$	(1	)	$	—		$	—

The following table provides the projected amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the next five years:

(In thousands)	2017			2018			2019			2020			2021
In-place leases	$	31,788		$	22,598		$	22,581		$	20,964		$	19,718
Total to be added to depreciation and amortization	$	31,788		$	22,598		$	22,581		$	20,964		$	19,718
Above-market leases	$	(2,815	)	$	(526	)	$	(526	)	$	(526	)	$	(526	)
Below-market lease liabilities	2,332			963			963			963			963
Total to be added to rental income	$	(483	)	$	437		$	437		$	437		$	437
Above-market ground lease liability	$	(2	)	$	(2	)	$	(2	)	$	(2	)	$	(2	)
Total to be deducted from property operating expense	$	(2	)	$	(2	)	$	(2	)	$	(2	)	$	(2	)

The following table presents unaudited pro forma information as if the acquisitions during the year ended December 31, 2016 had been consummated on January 1, 2015:

	Year Ended December 31,
(In thousands, except per share data)	2016 (1)			2015
Pro forma revenues	$	178,057		$	177,352
Pro forma net loss	$	(54,129	)	$	(19,902	)
Basic and diluted pro forma net loss per share	$	(0.83	)	$	(0.30	)

_____________________

(1) For the year ended December 31, 2016, aggregate revenues and net income derived from the Company's 2016 acquisitions (for the Company's period of ownership) were $2.5 million and $1.1 million, respectively.

F-17

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items:

(In thousands)	Future Minimum Base Rent Payments
2017	$	159,895
2018	153,841
2019	155,931
2020	150,760
2021	149,425
Thereafter	763,420
	$	1,533,272

The following table lists the tenants (including, for this purpose, all affiliates of such tenants) from which the Company derives annualized rental income on a straight-line basis constituting 10.0% or more of the Company's consolidated annualized rental income on a straight-line basis for all portfolio properties as of the dates indicated:

	December 31,
Tenant	2016	2015
SunTrust Bank	17.7%	17.9%
Sanofi US	11.4%	11.6%
C&S Wholesale Grocer	10.2%	10.4%

The termination, delinquency or non-renewal of leases by one or more of the above tenants may have a material adverse effect on revenues. No other tenant represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of December 31, 2016 and 2015.

The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis each represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of December 31, 2016 and 2015:

	December 31,
State	2016	2015
New Jersey	20.0%	20.3%
Georgia	11.0%	11.2%

The Company did not own properties in any other state that in total represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of December 31, 2016 and 2015.

Real Estate Held For Sale

The Company entered into a purchase and sale agreement dated as of October 11, 2016, as amended on November 10, 2016, November 18, 2016, November 23, 2016 and December 1, 2016, for the sale of the Merrill Lynch Properties for a purchase price of $148.0 million, exclusive of closing costs. The buyer's obligation to close on its acquisition of the Merrill Lynch Properties was subject to the satisfactory completion of the buyer's due diligence review, which the buyer completed on December 1, 2016, as well as a financing contingency, which expired on December 13, 2016. The Company also entered into purchase and sale agreements during 2016 for the sale of two single-tenant net lease properties operated by SunTrust Bank, a wholly owned subsidiary of SunTrust Banks, Inc. ("SunTrust") in Sylva, North Carolina and Landover, Maryland for an aggregate contract price of $1.0 million, exclusive of closing costs. These properties were subsequently sold during the first quarter of 2017.

F-18

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Concurrently with entering into these agreements and satisfactory completion of the conditions noted above, the Company stopped recognizing depreciation and amortization expense and reclassified the long-lived assets associated with these properties as held for sale on the consolidated balance sheet as of December 31, 2016. The disposal of the properties referenced above does not represent a strategic shift. Accordingly, the operating results of these properties remain classified within continuing operations for all periods presented.

The Company recognized impairment charges of $1.4 million related to the two SunTrust properties, as the carrying amount of the long-lived assets associated with them was greater than the Company's estimate of their fair value less estimated costs to sell, which is reflected in impairment charges on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. No impairment was recognized related to the Merrill Lynch Properties, as the carrying amount of the long-lived assets associated with them was less than the Company's estimate of their fair value less estimated costs to sell.

The following table details the major classes of assets associated with the properties that have been reclassified as held for sale as of December 31, 2016. There were no properties held for sale as of December 31, 2015:

(Dollar amounts in thousands)	Year Ended December 31, 2016
Real estate investments held for sale, at cost:
Land	$	7,225
Buildings, fixtures and improvements	142,798
Acquired intangible lease assets	18,145
Total real estate assets held for sale, at cost	168,168
Less accumulated depreciation and amortization	(29,213		)
Total real estate investments held for sale, net	138,955
Impairment charges related to properties reclassified as held for sale	(1,353		)
Assets held for sale	$	137,602

Real Estate Sales

During the year ended December 31, 2016, the Company sold 12 single-tenant net lease properties operated by SunTrust for an aggregate contract price of $30.2 million, exclusive of closing costs. The sale of these properties resulted in impairment charges of $1.3 million, which is reflected in impairment charges on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016, and a gain of $0.5 million, which is reflected in gain on sale of real estate investments on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. The Company did not sell any properties during the years ended December 31, 2015 and 2014.

The disposal of the properties referenced above did not represent a strategic shift. Accordingly, the operating results of the properties sold remain classified within continuing operations for all periods presented until the date of disposal.

Impairment of Held for Use Real Estate Investments

As of December 31, 2016, the Company owned 57 held for use single-tenant net lease properties operated by SunTrust which had lease terms set to expire between December 31, 2017 and March 31, 2018. As a result, the Company reconsidered its intended holding period for these properties and evaluated the impact on its ability to recover the carrying value of such properties based on the expected cash flows over its intended holding period. The Company primarily used a market approach to estimate the future cash flows expected to be generated. This approach involved evaluating comparable sales of properties in the same geographic region as the SunTrust properties in order to generate an estimated sale price. The Company made certain assumptions in this approach including, among others, that the properties in the comparable sales used in the analysis share similar characteristics to the SunTrust properties, and that market and economic conditions at the time of any potential sales of these SunTrust properties, such as discount rates, demand for space, competition for tenants, changes in market rental rates, and costs to operate the property, would be similar to those in the comparable sales analyzed. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analysis may not be achieved, and actual losses or impairment may be realized in the future.

F-19

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

For some of the held for use SunTrust properties noted above, the Company has an executed letter of intent ("LOI") or purchase and sale agreement ("PSA") to sell the property. In those instances, the Company used the sale price from the LOI or PSA to estimate the future cash flows expected to be generated. The Company made certain assumptions in this approach as well, mainly that the sale of these properties would close at the terms specified in the LOI or PSA. There can be no guarantee that the sales of these properties will close under these terms or at all.

As a result of its consideration of impairment, the Company determined that the carrying value of 43 of the held for use SunTrust properties noted above exceeded their estimated fair values and recognized an aggregate impairment charge of $24.7 million, which is included on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. The estimated fair value of the remaining 14 properties evaluated was greater than their carrying value. No impairment was recognized during the years ended December 31, 2015 and 2014.

Note 5 — Commercial Mortgage Loans

The following table is a summary of the Company's commercial loan portfolio:

		December 31, 2016				December 31, 2015
Loan Type	Property Type	Par Value		Percentage		Par Value			Percentage
		(In thousands)				(In thousands)
Senior	Student Housing — Multifamily	$	17,200	100	%	$	17,200		21.6	%
Senior	Retail	—		—	%	18,150		(1)	22.7	%
Senior	Hospitality	—		—	%	44,500		(1)	55.7	%
		$	17,200	100.0	%	$	79,850		100.0	%

_____________________________________

(1) These loans were classified as held for sale as of December 31, 2015 and were sold during the year ended December 31, 2016 for $56.9 million. The Company recognized a loss of $5.5 million on its commercial mortgage loans held for sale during the year ended December 31, 2015.

Credit Characteristics

As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The loans are scored on a scale of 1 to 5 as follows:

Investment Rating	Summary Description
1	Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2	Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3	Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4	Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative.
5	Underperforming investment with expected loss of interest and some principal.

All commercial mortgage loans are assigned an initial risk rating of 2. As of December 31, 2016, the risk rating of the Company's commercial loan held for investment was 3. As of December 31, 2016, the Company did not have any loans that were past due on their payments, in non-accrual status or impaired. No allowance for loan losses has been recorded as of December 31, 2016.

F-20

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

For the year ended December 31, 2016, the activity in the Company's commercial mortgage loans, held for investment, was as follows:

(In thousands)	Year Ended December 31, 2016		December 31, 2015
Beginning balance	$	17,135	$	—
Originations	—		79,410
Reclassifications to assets held for sale	—		(56,884		)
Loss on assets held for sale	—		(5,476		)
Discount accretion and premium amortization (1)	40		85
Ending balance	$	17,175	$	17,135

_____________________________________

(1) Includes amortization of capitalized origination fees and expenses.

Note 6 — Commercial Mortgage-Backed Securities

The following table details the realized loss on commercial mortgage-backed securities ("CMBS") sold during the year ended December 31, 2015. No CMBS were acquired or sold during the years ended December 31, 2016 or 2014:

(In thousands)	Amortized Cost		Sale Price		Realized Loss
Year Ended December 31, 2015	$	30,209	$	28,624	$	1,585

The Company did not have any investments in CMBS as of December 31, 2016 or 2015.

Note 7 — Other Real Estate Securities

The following table details the realized gains on sale of the Company's other real estate securities, which consisted of redeemable preferred stock, during the years ended December 31, 2015 and 2014. There were no other real estate securities sold during the year ended December 31, 2016:

(In thousands)	Aggregate Cost Basis		Sale Price		Realized Gain, Net
Year Ended December 31, 2015	$	18,528	$	19,266	$	738
Year Ended December 31, 2014	$	47,020	$	47,317	$	297

As of December 31, 2016 and 2015, the Company had no investments in other real estate securities.

F-21

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Note 8 — Mortgage Notes Payable

The Company's mortgage notes payable as of December 31, 2016 and 2015 consisted of the following:

		Outstanding Loan Amount as of						Effective Interest Rate as of
		December 31,						December 31,
Portfolio	Encumbered Properties	2016			2015			2016			2015			Interest Rate	Maturity	Anticipated Repayment
		(In thousands)			(In thousands)
SAAB Sensis I	1	$	7,841		$	8,190		5.93	%		6.01	%		Fixed	Apr. 2025	Apr. 2025
SunTrust Bank II	30	25,000			25,000			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
C&S Wholesale Grocer I	4	82,313			82,313			5.48	%		5.56	%		Fixed	Apr. 2037	Apr. 2017
SunTrust Bank III	112	88,567			99,677			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
SunTrust Bank IV	27	21,243			25,000			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
Sanofi US I	1	125,000			125,000			5.16	%		5.16	%		Fixed	Jul. 2026	Jan. 2021
Stop & Shop I	4	38,271			38,936			5.63	%		5.63	%		Fixed	Jun. 2041	Jun. 2021
Multi-Tenant Mortgage Loan	268	649,532			649,532			4.36	%		4.36	%		Fixed	Sep. 2020	Sep. 2020
Gross mortgage notes payable	447	1,037,767			1,053,648			4.75	%	(1)	4.77	%	(1)
Deferred financing costs, net of accumulated amortization		(15,492		)	(20,066		)
Mortgage notes payable, net of deferred financing costs		$	1,022,275		$	1,033,582

_____________________________________

(1) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated.

As of December 31, 2016 and 2015, the Company had pledged $1.9 billion in real estate investments as collateral for its mortgage notes payable. This real estate is not available to satisfy other debts and obligations unless first satisfying the mortgage notes payable on the properties.

During August 2015, certain subsidiaries of the Company entered into a $655.0 million mortgage loan agreement ("Multi-Tenant Mortgage Loan") with Barclays Bank PLC, Column Financial Inc. and UBS Real Estate Securities Inc. (together, the "Lenders"). The Multi-Tenant Mortgage Loan has a stated maturity of September 6, 2020 and a stated annual interest rate of 4.30%. As of December 31, 2016, the Multi-Tenant Mortgage Loan was secured by mortgage interests in 268 of the Company's properties. As of December 31, 2016, the outstanding balance under the Multi-Tenant Mortgage Loan was $649.5 million.

At the closing of the Multi-Tenant Mortgage Loan, the Lenders placed $42.5 million of the proceeds from the Multi-Tenant Mortgage Loan in escrow, to be released to the Company upon certain conditions, including the receipt of ground lease estoppels, performance of certain repairs and receipt of environmental insurance. As of December 31, 2016, the Lenders had released $34.6 million of the amount originally placed in escrow to the Company. As of December 31, 2016, $7.9 million of the proceeds from the Multi-Tenant Mortgage Loan remained in escrow and is included in restricted cash on the consolidated balance sheet as of December 31, 2016.

The following table summarizes the scheduled aggregate principal payments on mortgage notes payable based on stated maturity dates for the five years subsequent to December 31, 2016 and thereafter:

(In thousands)	Future Principal Payments
2017	$	1,080
2018	1,143
2019	1,211
2020	650,808
2021	910
Thereafter	382,615
	$	1,037,767

The Company's mortgage notes payable agreements require the compliance of certain property-level financial covenants including debt service coverage ratios. As of December 31, 2016, the Company was in compliance with financial covenants under its mortgage notes payable agreements.

F-22

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Note 9 — Fair Value Measurements

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred sources of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3 — Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

The Company had impaired real estate investments held for sale, which were carried at fair value on the consolidated balance sheet as of December 31, 2016. Impaired real estate investments held for sale were valued using the sale price from the PSA less costs to sell, which is an observable input. As a result, the Company's impaired real estate investments held for sale are classified in Level 2 of the fair value hierarchy. There were no impaired real estate investments held for sale as of December 31, 2015.

The Company also had impaired real estate investments held for use, which were carried at fair value on the consolidated balance sheet as of December 31, 2016. As of December 31, 2016, the Company owned 57 held for use single-tenant net lease properties operated by SunTrust which had lease terms set to expire between December 31, 2017 and March 31, 2018. As a result, the Company reconsidered its intended holding period for these properties and evaluated the impact on its ability to recover the carrying value of such properties based on the expected cash flows over its intended holding period. As a result of its consideration of impairment, the Company determined that the carrying value of 43 of the held for use SunTrust properties noted above exceeded their estimated fair values and recognized an aggregate impairment charge of $24.7 million, which is included on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. The Company primarily used a market approach to estimate the future cash flows expected to be generated. This approach involved evaluating comparable sales of properties in the same geographic region as the SunTrust properties in order to generate an estimated sale price, which is an unobservable input. As a result, the impaired properties that the Company evaluated using this approach are classified in Level 3 of the fair value hierarchy.

For some of the SunTrust properties noted above, the Company has an executed LOI or PSA to sell the property. In those instances, the Company used the sale price from the LOI or PSA to estimate the future cash flows expected to be generated, which is an observable input. As a result, the impaired properties that the Company evaluated using this approach are classified in Level 2 of the fair value hierarchy.

The Company had commercial mortgage loans held for sale, which were carried at fair value on the consolidated balance sheet as of December 31, 2015. Commercial mortgage loans held for sale were valued using the sale price from the term sheet, which is an observable input. As a result, the Company's commercial mortgage loans held for sale were classified in Level 2 of the fair value hierarchy. There were no commercial mortgage loans held for sale as of December 31, 2016.

F-23

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

The following table presents information about the Company's assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2016 and 2015, aggregated by the level in the fair value hierarchy within which those instruments fall. There were no financial instruments measured at fair value on a recurring basis as of December 31, 2016 or 2015:

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
December 31, 2016
Impaired real estate investments held for sale	$	—	$	961	$	—	$	961
Impaired real estate investments held for use	—		6,525		45,032		51,557
Total	$	—	$	7,486	$	45,032	$	52,518
December 31, 2015
Commercial mortgage loans held for sale	$	—	$	56,884	$	—	$	56,884

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets and liabilities. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2016 and 2015. There were no transfers into or out of Level 3 of the fair value hierarchy during the year ended December 31, 2016 and 2015.

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable and accrued expenses and distributions payable approximates their carrying value on the consolidated balance sheets due to their short-term nature. The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets as of December 31, 2016 and 2015 are reported in the following table:

		Carrying Amount at		Fair Value at		Carrying Amount at		Fair Value at
(In thousands)	Level	December 31, 2016		December 31, 2016		December 31, 2015		December 31, 2015
Commercial mortgage loan, held for investment	3	$	17,175	$	17,200	$	17,135	$	17,200
Gross mortgage notes payable and mortgage premiums, net	3	$	1,048,448	$	1,076,065	$	1,068,540	$	1,103,352

The fair value of the commercial mortgage loan is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments. The fair value of gross mortgage notes payable is based on combinations of independent third party estimates and management's estimates of market interest rates.

Note 10 — Common Stock

As of December 31, 2016 and 2015, the Company had 65.8 million and 65.0 million shares of common stock outstanding, respectively, including unvested restricted shares and shares issued pursuant to the DRIP.

In April 2013, the Company's board of directors authorized, and the Company declared, a distribution payable on a monthly basis to stockholders of record on each day at a rate equal to $0.00452054795 per day, which is equivalent to $1.65 per annum, per share of common stock. In March 2016, the Company’s board of directors ratified the existing distribution amount equivalent to $1.65 per annum, and, for calendar year 2016, affirmed a change to the daily distribution amount to $0.00450819672 per day per share of common stock, effective January 1, 2016, to reflect that 2016 is a leap year. Distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distributions payments are not assured.

F-24

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

On March 17, 2016, the Company's board of directors approved an estimated net asset value per share of the Company's common stock ("Estimated Per-Share NAV) as of December 31, 2015, which was published on March 18, 2016. The Company intends to publish subsequent valuations of Estimated Per-Share NAV periodically at the discretion of the Company's board of directors, provided that such valuations will be made at least once annually. The Estimated Per-Share NAV does not represent: (1) the amount at which the Company's shares would trade on a national securities exchange or a third party would pay for the Company, (2) the amount a stockholder would obtain if he or she tried to sell his or her shares or (3) the amount stockholders would receive if the Company liquidated its assets and distributed the proceeds after paying all of its expenses and liabilities. In addition, the Estimated Per-Share NAV does not reflect events subsequent to December 31, 2015 that would have affected the Company's net asset value.

Share Repurchase Program

The Company's board of directors has adopted the share repurchase program (as amended and restated, the "SRP"), which permits investors to sell their shares back to the Company after they have held them for at least one year, subject to certain conditions and limitations. The Company may repurchase shares on a semiannual basis, at each six-month period ending June 30 and December 31.

Under the SRP, the repurchase price per share for requests other than for death or disability are as follows:

• after one year from the purchase date — 92.5% of the then-current Estimated Per-Share NAV;

• after two years from the purchase date — 95.0% of the then-current Estimated Per-Share NAV;

• after three years from the purchase date — 97.5% of the then-current Estimated Per-Share NAV; and

• after four years from the purchase date — 100.0% of the then-current Estimated Per-Share NAV.

In the case of requests for death or disability, the repurchase price per share will be equal to Estimated Per-Share NAV at the time of repurchase.

Under the SRP, repurchases at each semiannual period are limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Repurchases pursuant to the SRP for any given semiannual period are funded from proceeds received during that same semiannual period through the issuance of common stock pursuant to the DRIP, as well as any reservation of funds the board of directors may, in its sole discretion, make available for this purpose. If the establishment of an Estimated Per-Share NAV occurs during any semiannual period, any repurchase requests received during such semiannual period are paid at a price based on Estimated Per-Share NAV applicable on the last day of the semiannual period, as described above.

On June 28, 2016, in consideration of the strategic review process, the board of directors of the Company determined to amend the SRP to provide for one twelve-month repurchase period for calendar year 2016 instead of two semi-annual periods ending June 30 and December 31. The annual limit on repurchases under the SRP remains unchanged and continues to be limited to a maximum of 5.0% of the weighted average number of shares of common stock of the Company outstanding during its prior fiscal year and is subject to the terms and limitations set forth in the SRP. Following calendar year 2016, the repurchase periods will return to two semi-annual periods and applicable limitations set forth in the SRP. On December 27, 2016, the board of directors of the Company approved an amendment to the SRP to provide that repurchase proceeds for any repurchase requests made during the twelve-month period that commenced on January 1, 2016 will be paid within 31 days of the earlier to occur of (1) the consummation of the Merger, and (2) the termination of the Merger Agreement.

The Company's board of directors reserves the right, in its sole discretion, at any time and from time to time, to reject any request for repurchase, change the purchase price for repurchases or otherwise amend the terms of, suspend or terminate the SRP pursuant to any applicable notice requirements under the SRP. Due to these limitations, the Company cannot guarantee that it will be able to accommodate all repurchase requests.

When a stockholder requests repurchases and the repurchases are approved, the Company reclassifies such an obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased have the status of authorized but unissued shares.

F-25

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

The following table summarizes the repurchases of shares under the SRP cumulatively through December 31, 2016:

	Number of Shares	Weighted-Average Price per Share
Cumulative repurchases as of December 31, 2013	8,082	$	24.98
Year ended December 31, 2014	295,825	23.99
Year ended December 31, 2015	1,769,738	24.13
Year ended December 31, 2016	7,854	24.17
Cumulative repurchases as of December 31, 2016	2,081,499	$	24.12

During the year ended December 31, 2016, 6.8 million shares were requested for repurchase. In March 2017, the Company's board of directors approved the repurchase of 0.8 million of the requested shares at a weighted average repurchase price of $23.84. The approved repurchase requests will be paid within 31 days of the consummation of the Merger.

Distribution Reinvestment Plan

Pursuant to the DRIP, the Company's stockholders could elect to reinvest distributions by purchasing shares of common stock. Until November 14, 2014, the Company offered shares pursuant to the DRIP at $23.75, which was 95.0% of the initial offering price of shares of common stock in the IPO. Effective November 14, 2014, the Company began offering shares pursuant to the DRIP at the then-current Estimated Per-Share NAV. The DRIP was suspended following the payment of the Company's June 2015 distribution on July 1, 2015.

On April 1, 2016, the Company reinstated the DRIP and registered an additional 7.7 million shares of common stock, offered at the then-current Estimated Per-Share NAV, for use under the DRIP pursuant to a registration statement on Form S-3 (File No. 333-210532). On August 30, 2016, in consideration of the Merger, the Company's board of directors determined to suspend the DRIP effective immediately. Accordingly, the final issuance of shares of common stock pursuant to the DRIP prior to the suspension occurred in connection with the Company's July 2016 distribution, paid in August 2016. Following the effectiveness of the joint proxy statement/prospectus in relation to the Mergers on December 16, 2016, the Company reinstated the DRIP.

No dealer manager fees or selling commissions were paid with respect to shares purchased pursuant to the DRIP. Shares issued pursuant to the DRIP are recorded within stockholders' equity in the accompanying consolidated balance sheets in the period distributions are declared. During the year ended December 31, 2016, approximately 0.8 million shares of common stock were issued pursuant to the DRIP.

Note 11 — Commitments and Contingencies

Future Minimum Ground Lease Payments

The Company entered into ground lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter:

(In thousands)	Future Minimum Base Rent Payments
2017	$	921
2018	903
2019	902
2020	674
2021	345
Thereafter	4,630
	$	8,375

F-26

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Unfunded Commitments Under Commercial Mortgage Loans

As of December 31, 2016, the Company had unfunded commitments which will generally be funded to finance capital expenditures by the borrowers under the Company's commercial mortgage loan. The following table reflects the expiration of these commitments over the next five years and thereafter:

(In thousands)	Funding Expiration
2017	$	2,450	(1)
2018	—
2019	—
2020	—
2021	—
Thereafter	—
	$	2,450

_____________________________________

(1) This commitment expired in February 2017 with no funding provided by the Company.

Litigation and Regulatory Matters

On January 13, 2017, four affiliated stockholders of RCA filed in the United States District Court for the District of Maryland a putative class action lawsuit against the Company, Edward M. Weil, Jr., Leslie D. Michelson, Edward G. Rendell (Weil, Michelson and Rendell, the “Director Defendants”), AR Global, and the Company, alleging violations of Sections 14(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) by RCA and the Director Defendants, violations of Section 20(a) of the Exchange Act by AR Global and the Director Defendants, breaches of fiduciary duty by the Director Defendants, and aiding and abetting breaches of fiduciary duty by AR Global and the Company in connection with the negotiation of and proxy solicitation for a shareholder vote on the proposed merger of the Company and RCA and an amendment to RCA's Articles of Incorporation.  Plaintiffs seek on behalf of the putative class rescission of the merger transaction, which was voted on and approved by stockholders on February 13, 2017, and closed on February 17, 2017, together with unspecified rescissory damages, unspecified actual damages, and costs and disbursements of the action. The Court has not selected a lead plaintiff and has adjourned the deadline for Defendants to answer or move against the Complaint until 45 days after a Court-appointed lead plaintiff either adopts the current Complaint or files an Amended Complaint. The Company and the Director Defendants deny wrongdoing and liability and intend to vigorously defend the action. Due to the early stage of the litigation, no estimate of a probable loss or any reasonable possible losses are determinable at this time. No provisions for such losses have been recorded in the accompanying consolidated financial statements for the year ended December 31, 2016.

There are no other material legal or regulatory proceedings pending or known to be contemplated against the Company.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company maintains environmental insurance for its properties that provides coverage for potential environmental liabilities, subject to the policy's coverage conditions and limitations. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on its financial position or results of operations.

Note 12 —Related Party Transactions and Arrangements

As of December 31, 2016 and 2015, American Finance Special Limited Partner, LLC (the "Special Limited Partner"), an entity controlled by the Sponsor, owned 8,888 shares of the Company's outstanding common stock and 90 units of limited partner interests in the OP ("OP Units"). After holding the OP Units for a period of one year, or upon liquidation of the OP or sale of substantially all of the assets of the OP, holders of OP Units have the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, in accordance with the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.

F-27

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Realty Capital Securities, LLC (the "Former Dealer Manager") served as the dealer manager of the IPO. American National Stock Transfer, LLC ("ANST"), a subsidiary of the parent company of the Former Dealer Manager, provided other general professional services through January 2016. RCS Capital Corporation ("RCAP"), the parent company of the Former Dealer Manager and certain of its affiliates that provided services to the Company, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was under common control with the Sponsor. In May 2016, RCAP and its affiliated debtors emerged from bankruptcy under the new name, Aretec Group, Inc. On March 8, 2017, the creditor trust established in connection with the RCAP bankruptcy filed suit against the Sponsor, the Advisor, advisors of other entities sponsored by the Sponsor, and the Sponsor’s principals (including Edward M. Weil, Jr.). The suit alleges, among other things, certain breaches of duties to RCAP. The Company is not named in the suit, nor are there any allegations related to the services the Advisor provides to the Company.  The Advisor has informed the Company that it believes that the suit is without merit and intends to defend against it vigorously.

Fees Paid in Connection With the Operations of the Company

On April 29, 2015, the independent directors of the board of directors unanimously approved certain amendments to the Amended and Restated Advisory Agreement, as amended (the "Original A&R Advisory Agreement"), by and among the Company, the OP and the Advisor (the "Second A&R Advisory Agreement"). The Second A&R Advisory Agreement, which superseded the Original A&R Advisory Agreement, took effect on July 20, 2015, the date on which the Company filed certain changes to the Company's Articles of Amendment and Restatement, which were approved by the Company's stockholders on June 23, 2015. The initial term of the Second A&R Advisory Agreement is 20 years beginning on April 29, 2015, and is automatically renewable for another 20-year term upon each 20-year anniversary unless terminated by the board of directors for cause.

Prior to January 16, 2016, the Advisor was paid an acquisition fee equal to 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment. The Advisor also has been and may continue to be reimbursed for costs it incurs in providing investment-related services, or "insourced expenses." These insourced expenses may not exceed, 0.5% of the contract purchase price of each acquired property and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company has paid and may continue to pay third party acquisition expenses. The aggregate amount of acquisition fees and financing coordination fees (as described below) were not to exceed 1.5% of the contract purchase price and the amount advanced for a loan or other investment for all the assets acquired. The Second A&R Advisory Agreement terminated the acquisition fee and financing coordination fee (both as defined in the Second A&R Advisory Agreement) effective January 16, 2016. As of January 16, 2016, aggregate acquisition fees and financing coordination fees did not exceed the 1.5% threshold. Further, the total of all acquisition fees, acquisition expenses and any financing coordination fees payable was not to exceed 4.5% of the Company's total portfolio contract purchase price or 4.5% of the amount advanced for the Company's total portfolio of loans or other investments. As of January 16, 2016, the total of all cumulative acquisition fees, acquisition expenses and financing coordination fees did not exceed the 4.5% threshold.

Additionally, prior to January 16, 2016, if the Advisor provided services in connection with the origination or refinancing of any debt that the Company obtained and used to acquire properties or to make other permitted investments, or that was assumed, directly or indirectly, in connection with the acquisition of properties, the Company paid the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations.

Prior to April 15, 2015, in connection with asset management services provided by the Advisor, the Company issued to the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." The Class B Units were intended to be profit interests and will vest, and no longer be subject to forfeiture, at such time as: (a) the value of the OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 6.0% cumulative, pretax, non-compounded annual return thereon (the "economic hurdle"); (b) any one of the following events occurs concurrently with or subsequently to the achievement of the economic hurdle described above: (i) a listing; (ii) a transaction to which the Company or the OP is a party, as a result of which OP Units or the Company's common stock are exchanged for, or converted into, the right, or the holders of such securities are otherwise entitled, to receive cash, securities or other property or any combination thereof; or (iii) the termination of the advisory agreement without cause; and (c) the Advisor pursuant to the advisory agreement is providing services to the Company immediately prior to the occurrence of an event of the type described in clause (b) above, unless the failure to provide such services is attributable to the termination without cause of the advisory agreement by an affirmative vote of a majority of the Company's independent directors after the economic hurdle described above has been met. Unvested Class B Units will be forfeited immediately if: (x) the advisory agreement is terminated for any reason other than a termination without cause; or (y) the advisory agreement is terminated without cause by an affirmative vote of a majority of the board of directors before the economic hurdle described above has been met.

F-28

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

The Class B Units were issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter was equal to the cost of the Company's assets multiplied by 0.1875%, divided by the value of one share of common stock as of the last day of such calendar quarter, which was initially equal to $22.50 (the initial offering price in the IPO minus selling commissions and dealer manager fees) and, as of the Initial NAV Pricing Date, to Estimated Per-Share NAV. On April 15, 2015, the Company's board of directors approved an amendment (the "Amendment") to the Original A&R Advisory Agreement, which, among other things, provided that, effective as of April 15, 2015 until July 20, 2015:

(i) for any period commencing on or after April 1, 2015, the Company paid the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee (as defined in the Original A&R Advisory Agreement) equal to 0.75% per annum of the Cost of Assets (as defined in the Original A&R Advisory Agreement);

(ii) such Asset Management Fee was payable monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment determined in the sole discretion of the Advisor; and

(iii) the Company would not cause the OP to issue any Class B Units in respect of periods subsequent to March 31, 2015.

As of December 31, 2016, in aggregate, the Company's board of directors had approved and the Company had issued 1,052,420 Class B Units to the Advisor in connection with the arrangement described above. As of December 31, 2016, the Company could not determine the probability of achieving the performance condition, as such, no expense was recognized in connection with this arrangement during the years ended December 31, 2016, 2015 and 2014. The Advisor receives distributions on unvested Class B Units equal to the distribution amount received on the same number of shares of the Company's common stock. Such distributions on issued Class B Units are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. As stated above, pursuant to the Amendment, the OP will not issue any further Class B Units. The changes made pursuant to the Amendment were incorporated into the Agreement of Limited Partnership of the OP (the "OP Agreement") through a Third Amendment to the OP Agreement, which was approved by the board of directors and entered into on April 29, 2015.

Effective July 20, 2015, the Second A&R Advisory Agreement requires the Company to pay the Advisor a base management fee. Effective October 1, 2015, the fixed portion of the base management fee, which is equal to $1.5 million per month, is payable on the first business day of each month, while the variable portion of the base management fee, which is equal to 0.375% of the cumulative net proceeds of any equity raised subsequent to the potential Listing, is payable quarterly in arrears. Base management fees are included in asset management fees to related party on the consolidated statements of operations and comprehensive loss for the years ended December 31, 2016 and 2015.

In addition, the Second A&R Advisory Agreement requires the Company to pay the Advisor a variable management fee equal to (x) 15.0% of the applicable quarter's Core Earnings (as defined below) per share in excess of $0.375 per share plus (y) 10.0% of the applicable quarter's Core Earnings per share in excess of $0.50 per share, in each case as adjusted for changes in the number of shares of common stock outstanding. Core Earnings are defined as, for the applicable period, GAAP net income or loss excluding non-cash equity compensation expense, the variable management fee, acquisition and transaction related fees and expenses, financing related fees and expenses, depreciation and amortization, realized gains and losses on the sale of assets, any unrealized gains, losses or other non-cash items recorded in net loss for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income, one-time events pursuant to changes in GAAP and certain non-cash charges, impairment losses on real estate related investments and other than temporary impairment of securities, amortization of deferred financing costs, amortization of tenant inducements, amortization of straight-line rent, amortization of market lease intangibles, provision for loss loans, and other non-recurring revenue and expenses. The Company did not incur a variable management fee during the years ended December 31, 2016 and 2015.

The Company reimburses the Advisor's costs of providing administrative services, but may not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expenses or real estate commissions. During the years ended December 31, 2016 and 2015, the Company incurred $2.9 million and $1.2 million, respectively, of reimbursement expenses from the Advisor for providing administrative services. These reimbursements are included in general and administrative expense on the consolidated statements of operations and comprehensive loss. No reimbursement expenses were incurred from the Advisor for providing administrative services during the year ended December 31, 2014.

F-29

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to forgive certain fees. Because the Advisor may forgive certain fees, cash flows from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that are forgiven are not deferrals and, accordingly, will not be paid to the Advisor. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's general and administrative costs or property operating costs. No such fees were forgiven or costs were absorbed by the Advisor during the years ended December 31, 2016, 2015 and 2014.

The following table details amounts incurred and payable to related parties in connection with the operations-related services described above as of and for the periods presented:

	Year Ended December 31,						Payable as of December 31,
(In thousands)	2016		2015		2014		2016		2015
One-time fees and reimbursements:
Acquisition fees and related cost reimbursements (1)	$	—	$	1,330	$	10,578	$	—	$	—
Financing coordination fees	—		5,850		5,678		—		—
Ongoing fees:
Asset management fees	18,000		13,009		—		—		—
Professional fees and other reimbursements (2)	3,104		4,020		2,364		763		541
Distributions on Class B Units (2)	1,736		1,573		602		147		—
Total related party operation fees and reimbursements	$	22,840	$	25,782	$	19,222	$	910	$	541

_________________________________

(1) Acquisition fees and expenses from related parties of $0.9 million were recognized in acquisition and transaction related expense on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2015. In addition, over the same period, the Company capitalized $0.4 million of acquisition expenses to the Company's consolidated balance sheet, which are amortized over the life of each investment using the effective interest method. No acquisition expenses were capitalized during the years ended December 31, 2016 and 2014.

(2) These costs are included in general and administrative expense on the consolidated statements of operations and comprehensive loss.

During the year ended December 31, 2016, the Company incurred $1.3 million of cost reimbursements from the Advisor for lease commissions relating to the execution of new SunTrust leases. The lease commissions are included in deferred costs, net on the consolidated balance sheet as of December 31, 2016, and are amortized over the terms of the respective leases. No such costs were incurred during the years ended December 31, 2015 and 2014.

The predecessor to the Sponsor was party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager ("RCS Advisory"), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory.

The Company was also party to a transfer agency agreement with ANST, pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by DST Systems, Inc., a third-party transfer agent ("DST"). The Sponsor received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services).

F-30

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Fees Incurred in Connection with the Liquidation or Listing of the Company's Real Estate Assets

In connection with the Listing, the Company, as the general partner of the OP, would cause the OP to issue a note (the "Listing Note") to the Special Limited Partner to evidence the OP's obligation to distribute to the Special Limited Partner an aggregate amount (the "Listing Amount") equal to 15.0% of the difference (to the extent the result is a positive number) between:

• the sum of (i) the "market value" (as defined in the Listing Note) of the Company's common stock plus (ii) the sum of all distributions or dividends (from any source) paid by the Company to its stockholders prior to the Listing; and

• the sum of (i) the gross proceeds ("Gross Proceeds") of all public and private offerings, including issuance of the Company's common stock pursuant to a merger or business combination (an "Offering") plus (ii) the total amount of cash that, if distributed to those stockholders who purchased shares of common stock in an Offering, would have provided those stockholders a 6.0% cumulative, non-compounded, pre-tax annual return (based on a 365-day year) on the Gross Proceeds.

The "market value" used to calculate the Listing Amount will not be determinable until the end of a measurement period, the period of 30 consecutive trading days, commencing on the 180th day following the Listing, unless another liquidity event, such as a merger, occurs prior to the end of the measurement period. If another liquidity event occurs prior to the end of the measurement period, the Listing Note provides for appropriate adjustment to the calculation of the Listing Amount.

The Special Limited Partner will have the right to receive distributions of "Net Sales Proceeds," as defined in the Listing Note, until the Listing Note is paid in full; provided that, the Special Limited Partner has the right, but not the obligation, to convert the entire Special Limited Partner interest into OP Units. OP Units are convertible into shares of the Company's common stock in accordance with the terms governing conversion of OP Units into shares of common stock and contained in the Second Amended and Restated Agreement of Limited Partnership of the OP by the Company, as general partner of its OP, with the limited partners party thereto (the "Second A&R OP Agreement"), which will be entered into at Listing.

On April 29, 2015, the board of directors authorized the execution, in conjunction with the potential Listing, the Second A&R OP Agreement to conform more closely with agreements of limited partnership of other operating partnerships controlled by real estate investment trusts whose securities are publicly traded and listed, and to add long term incentive plan units ("LTIP Units") as a new class of units of limited partnership in the OP to the existing common units ("OP Units"). The Company may at any time cause the OP to issue LTIP Units pursuant to an outperformance agreement. On April 29, 2015, the board of directors approved the general terms of a Multi-Year Outperformance Agreement to be entered into with the Company, the OP and the Advisor in connection with the Listing.

The Advisor was paid a brokerage commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and one-half of the total brokerage commission paid, if a third party broker was also involved; provided, however, that in no event could the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. During the year ended December 31, 2016, the Company incurred $0.6 million of real estate commissions from the Advisor for its services in connection with the sale of real estate investments. The impact of the real estate commissions is included in gain on sale of real estate investments on the consolidated statements of operations and comprehensive loss for the year ended December 31, 2016. No such commissions were incurred during the years ended December 31, 2015 and 2014. The Second A&R Advisory Agreement terminated the brokerage commission to the Advisor.

F-31

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Related Party Agreements Executed in Connection with the Mergers

On September 6, 2016, the Company entered into an amendment of the Second A&R Advisory Agreement (the "Third A&R Advisory Agreement"), which became effective upon the Effective Time. Under the Third A&R Advisory Agreement, the fixed portion of the base management fee increases from $18.0 million annually to (i) $21.0 million annually for the first year following the Effective Time; (ii) $22.5 million annually for the second year following the Effective Time; and (iii) $24.0 million annually for the remainder of the term. If the Company acquires (whether by merger, consolidation or otherwise) any REIT, other than RCA, that is advised by an entity that is wholly-owned, directly or indirectly, by AR Global, other than any joint ventures, (a "Specified Transaction") the fixed portion of the base management fee will be increased by an amount equal to the consideration paid for the acquired company's equity multiplied by 0.0031, 0.0047 and 0.0062 for years one, two and three and thereafter, respectively, following the Specified Transaction. The variable portion of the base management fee changes from a quarterly fee equal to 0.375% of the cumulative net proceeds of any equity raised after the Company lists its common stock on a national securities exchange to a monthly fee equal to one-twelfth of 1.25% of the cumulative net proceeds of any equity raised by the Company or its subsidiaries from and after the Effective Time. The Company will continue to pay a variable management fee of 15% of quarterly core earnings per adjusted share for the previous quarter over $0.375 plus 10% of quarterly core earnings per adjusted share for the previous quarter over $0.50.

Under the Third A&R Advisory Agreement, the Company has the right to internalize the services and terminate the Advisory Agreement, referred to as an “internalization,” after January 1, 2018 as long as (1) more than 67% of the Company’s independent directors approve the internalization; (2) the Company provides written notice to the Advisor; and (3) the Company pays the Advisor a fee equal to (a) $15.0 million plus (b) either (x) if the internalization occurs on or before December 31, 2028, the Subject Fees (defined below) multiplied by 4.5 or (y) if the internalization occurs on or after January 1, 2029, the Subject Fees multiplied by 3.5 plus (c)(x) 1% of the purchase price (excluding the portion of the purchase price funded with equity proceeds raised prior to the end of the fiscal quarter in which the notice of election occurs) of each acquisition or merger that occurs between the end of the fiscal quarter in which notice is given and the internalization and (y) without duplication, 1% of the amount of new equity raised by the Company between the end of the fiscal quarter in which notice is given and the internalization. Subject Fees means (I) (A) all amounts payable pursuant to the Advisory Agreement and the Property Management Agreement for the fiscal quarter in which notice occurs multiplied by (B) four plus (II) without duplication, the annual increase in the base management fee resulting from the amount of new equity raised by the Company within the fiscal quarter in which notice occurs, as described above. The initial term of the Third A&R Advisory Agreement, commencing upon the Effective Time, will extend to April 29, 2035, and is automatically renewable for another 20-year term upon each 20-year anniversary.

On September 6, 2016, the Company entered into an amendment to the agreement of limited partnership of the OP (the “A&R OP Agreement”), which became effective upon the Effective Time. The A&R OP Agreement makes certain changes to the provisions of the partnership agreement relating to (a) distributions of net sales proceeds and the Termination Note (as defined in the A&R OP Agreement) issuable on termination of the Third A&R Advisory Agreement to address the issuance of shares of the Company’s common stock pursuant to the Merger and in future transactions; (b) internalization of the Advisor’s services after the Effective Time pursuant to the conditions in the Third A&R Advisory Agreement; and (c) certain matters related to changes in the Third A&R Advisory Agreement.

On September 6, 2016, RCA Advisor, as RCA’s former property manager and leasing agent, assigned RCA’s existing property management agreement (the "Target Property Management Agreement") and existing leasing agreement (the "Target Leasing Agreement") to the Property Manager, in respect of (1) the properties owned by RCA prior to the Merger, and (2) any existing anchored, stabilized core retail properties, such as power centers and lifestyle centers, acquired by the Company after the Effective Time and during the term of the Target Property Management Agreement and the Target Leasing Agreement, (collectively, the "Target Properties"). The Target Property Management Agreement and the Target Leasing Agreement became effective at the Effective Time.

 In connection with the Merger Agreement, the Target Property Management Agreement and the Target Leasing Agreement, the Company has entered into an amended and restated property management and leasing agreement (the “Property Management Agreement”) with the Property Manager in respect of (1) the properties owned by the Company prior to the Merger and (2) any double- and triple-net leased single tenant properties acquired by the Company after the Effective Time and during the term of the Property Management Agreement (collectively, the "Company Properties" and together with the Target Properties, the "Properties"). The Property Management Agreement became effective at the Effective Time. 

F-32

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

The Target Property Management Agreement provides that the Property Manager is entitled to a management fee equal to 4% of the gross rental receipts from the Target Properties, including common area maintenance reimbursements, tax and insurance reimbursements, percentage rental payments, utility reimbursements, late fees, vending machine collections, service charges, rental interruption insurance, and a 15% administrative charge for common area expenses.

In addition, the Property Manager is entitled to transition fees of up to $2,500 for each Target Property managed, a construction fee equal to 6% of construction costs incurred, if any, and reimbursement of all expenses specifically related to the operation of a Target Property, including compensation and benefits of property management, accounting, lease administration, executive and supervisory personnel of the Property Manager, and excluding expenses of the Property Manager’s corporate and general management office and excluding compensation and other expenses applicable to time spent on matters other than the Target Properties.

The Target Property Management Agreement, the Target Leasing Agreement and the Property Management Agreement each have an initial term ending October 1, 2018, with automatic renewal for successive one-year terms unless terminated 60 days prior to the end of a term or terminated for cause due to material breach of the agreement, fraud, criminal conduct or willful misconduct, insolvency or bankruptcy of the Property Manager.

In connection with, and subject to the terms and conditions of the Merger Agreement, special limited partner interests in the RCA OP held by AR Global and its affiliates were, consistent with the terms of the RCA OP partnership agreement, redeemed for a cash payment of approximately $2.8 million.

Note 13 — Economic Dependency

Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, as well as other administrative responsibilities for the Company including accounting and legal services, human resources and information technology.

As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

Note 14 —Share-Based Compensation

Restricted Share Plan

The Company had an employee and director incentive restricted share plan (the "Original RSP"), which provided for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further action by the Company's board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholders' meeting. Restricted stock issued to independent directors vests over a five-year period following the date of grant in increments of 20.0% per annum. The Original RSP provided the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to other entities that provide services to the Company. The total number of shares of common stock granted under the Original RSP could not exceed 5.0% of the Company's shares of common stock on a fully diluted basis at any time, and in any event could not exceed 3.4 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

Restricted share awards entitle the recipient to receive shares of common stock from the Company under terms that provide for vesting over a specified period of time. For restricted share awards granted prior to 2015, such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. Restricted share awards granted during or after 2015 provide for accelerated vesting of the portion of the unvested shares scheduled to vest in the year of the recipient's voluntary termination or the failure to be re-elected to the board. The Company accounts for forfeitures when they occur. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock are subject to the same restrictions as the underlying restricted shares.

F-33

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

In April 2015, the board of directors adopted an Amended and Restated RSP (the "A&R RSP") that replaces in its entirety the Original RSP. The A&R RSP amends the terms of the Original RSP as follows:

• it increases the number of shares of Company capital stock, par value $0.01 per share (the "Capital Stock"), available for awards thereunder from 5.0% of the Company's outstanding shares of Capital Stock on a fully diluted basis at any time, not to exceed 3.4 million shares of Capital Stock, to 10.0% of the Company's outstanding shares of Capital Stock on a fully diluted basis at any time;

• it removes the fixed amount of shares that were automatically granted to the Company's independent directors; and

• it adds restricted stock units (including dividend equivalent rights thereon) as a permitted form of award.

The following table reflects restricted share award activity for the years ended December 31, 2016, 2015 and 2014:

	Number of Shares of Common Stock		Weighted-Average Issue Price
Unvested, December 31, 2013	4,000		$	22.50
Granted	3,999		22.50
Vested	(800	)	22.50
Forfeited	(2,400	)	22.50
Unvested, December 31, 2014	4,799		22.50
Granted	6,240		24.04
Vested	(1,067	)	22.50
Forfeited	(2,517	)	23.83
Unvested, December 31, 2015	7,455		23.34
Granted	3,723		24.17
Vested	(1,811	)	23.19
Unvested, December 31, 2016	9,367		$	23.70

As of December 31, 2016, the Company had $0.2 million of unrecognized compensation cost related to unvested restricted share awards granted. That cost is expected to be recognized over a weighted-average period of 3.2 years.

The fair value of the restricted shares is being expensed in accordance with the service period required. Compensation expense related to restricted stock was approximately $67,000, $51,000 and $21,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Compensation expense related to restricted stock is included in general and administrative expense on the accompanying consolidated statements of operations and comprehensive (loss) income.

Other Share-Based Compensation

The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors at each director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. There were no shares of common stock issued to directors in lieu of cash compensation during the years ended December 31, 2016, 2015 and 2014.

Note 15 — Net Loss Per Share

The following table sets forth the basic and diluted net loss per share computations for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
	2016			2015			2014
Basic and diluted net loss (in thousands)	$	(54,255	)	$	(21,117	)	$	(1,997	)
Basic and diluted weighted-average shares outstanding	65,450,432			66,028,245			64,333,260
Basic and diluted net loss per share	$	(0.83	)	$	(0.32	)	$	(0.03	)

F-34

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

Diluted net loss per share assumes the conversion of all common stock equivalents into an equivalent number of common shares, unless the effect is antidilutive. The Company considers unvested restricted stock, OP Units and Class B Units to be common share equivalents. The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented:

	December 31,
	2016	2015	2014
Unvested restricted stock (1)	7,985	6,349	5,221
OP Units	90	90	90
Class B Units (2)	1,052,420	953,086	364,786
Total weighted-average antidilutive common stock equivalents	1,060,495	959,525	370,097

_____________________

(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 9,367, 7,455 and 4,799 shares of unvested restricted stock outstanding as of December 31, 2016, 2015 and 2014, respectively.

(2) Weighted-average number of issued and unvested Class B Units outstanding for the periods presented. As of December 31, 2016, 2015 and 2014, there were 1,052,420, 1,052,420 and 703,796 Class B Units outstanding, respectively.

Note 16 – Quarterly Results (Unaudited)

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2016, 2015 and 2014:

	Quarters Ended
(In thousands, except share and per share amounts)	March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Total revenues	$	43,786		$	44,277		$	44,758		$	44,847
Basic and diluted net loss	$	(5,854	)	$	(4,077	)	$	(8,729	)	$	(35,595	)
Basic and diluted weighted-average shares outstanding	64,955,420			65,301,764			65,741,735			65,795,812
Basic and diluted net loss per share	$	(0.09	)	$	(0.06	)	$	(0.13	)	$	(0.54	)

	Quarters Ended
(In thousands, except share and per share amounts)	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Total revenues	$	42,866		$	43,269		$	44,051		$	44,312
Basic net income (loss)	$	4,901		$	(1,624	)	$	(11,428	)	$	(12,966	)
Adjustments to net income (loss) for common share equivalents	(116		)	—			—			—
Diluted net income (loss)	$	4,785		$	(1,624	)	$	(11,428	)	$	(12,966	)
Basic weighted-average shares outstanding	65,672,016			66,045,785			66,450,057			65,937,566
Basic net income (loss) per share	$	0.07		$	(0.02	)	$	(0.17	)	$	(0.20	)
Diluted weighted-average shares outstanding	65,677,204			66,045,785			66,450,057			65,937,566
Diluted net income (loss) per share	$	0.07		$	(0.02	)	$	(0.17	)	$	(0.20	)

F-35

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

	Quarters Ended (1)
(In thousands, except share and per share amounts)	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Total revenues	$	30,124		$	42,076		$	43,222		$	42,958
Basic net (loss) income	$	(9,569	)	$	1,127		$	1,610		$	4,835
Adjustments to net (loss) income for common share equivalents	—			(156		)	(98		)	(92		)
Diluted net income (loss)	$	(9,569	)	$	971		$	1,512		$	4,743
Basic weighted-average shares outstanding	62,693,554			64,018,318			64,654,279			65,243,247
Basic net (loss) income per share	$	(0.15	)	$	0.02		$	0.02		$	0.07
Diluted weighted-average shares outstanding	62,693,554			64,023,762			64,661,074			65,248,137
Diluted net (loss) income per share	$	(0.15	)	$	0.02		$	0.02		$	0.07

______________________________

(1) The aforementioned unaudited quarterly financial information has been revised to reflect certain adjustments and final purchase price allocations to previously reported quarterly information associated with acquisitions completed during 2014. As a result, amortization and accretion of above-market lease assets and below-market lease liabilities decreased total revenue by $0.1 million, $0.4 million and $0.4 million for the three months ended March 31, June 30 and September 30, 2014, respectively. Additionally, the Company decreased depreciation and amortization expense by $1.2 million, $3.4 million and $3.7 million, for the three months ended March 31, June 30 and September 30, 2014, respectively.

Note 17 —Subsequent Events

The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K, and determined that there have not been any events that have occurred that would require adjustments to, or disclosures in, the consolidated financial statements except for the following disclosures:

American Realty Capital — Retail Centers of America, Inc. Merger

On February 16, 2017, the Mergers became effective. As a result of the Mergers, the Company acquired RCA, which, immediately prior to the Effective Time, owned a portfolio of 35 anchored, stabilized core retail properties. See Note 2 — Completed Mergers and Significant Disposals for additional details on the Mergers.

Second Amendment to Amended and Restated Credit Agreement

On February 16, 2017, the Company, the OP, and certain other subsidiaries of the Company acting as guarantors, entered into an amendment, assumption, joinder and reaffirmation of guaranties (the “Second Amendment”) to an unsecured amended and restated credit agreement, dated December 2, 2014 (as amended by the Second Amendment, the “Credit Agreement”), by and among the RCA OP to which the OP is successor by merger, BMO Harris Bank N.A., as administrative agent, letter of credit issuer, swingline lender and a lender, and the other parties thereto, relating to a revolving credit facility (the “Amended Credit Facility”). The Second Amendment provides for, among other things, the OP to become the borrower and principal obligor under the Credit Agreement and the Amended Credit Facility, and for the Company to become a guarantor under the Amended Credit Facility. RCA and the RCA OP were parties to the Credit Agreement prior to closing of the Merger.

The Amended Credit Facility provides for aggregate revolving loan borrowings of up to $325.0 million (subject to unencumbered asset pool availability), a swingline subfacility of $25.0 million and a $20.0 million letter of credit subfacility, subject to certain conditions. Through an uncommitted “accordion feature,” the OP, subject to certain conditions, may increase commitments under the Amended Credit Facility to up to $575.0 million.

The Amended Credit Facility will mature on May 1, 2018. Borrowings under the Amended Credit Facility will bear interest at either (i) the base rate (which is defined in the Credit Agreement as the greatest of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.50%, and (c) LIBOR for a one month interest period plus 1.00%) plus an applicable spread ranging from 0.35% to 1.00%, depending on the Company’s consolidated leverage ratio, or (ii) LIBOR plus an applicable spread ranging from 1.35% to 2.00%, depending on the Company’s consolidated leverage ratio.

F-36

AMERICAN FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2016

The Amended Credit Facility provides for quarterly interest payments for each base rate loan and periodic interest payments for each LIBOR loan, based upon the applicable interest period (though no longer than three months) with respect to such LIBOR loan, with all principal outstanding being due on the maturity date. The Amended Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty. Upon the occurrence of an event of default, the requisite lenders have the right to terminate their obligations under the Amended Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Company, certain of its subsidiaries and certain subsidiaries of the OP will guarantee the obligations under the Amended Credit Facility.

Amendment to Agreement of Limited Partnership

In connection with the Mergers, the Agreement of Limited Partnership of the OP was amended in order to admit to the partnership certain entities which received units of limited partnership interest in the OP pursuant to the Merger Agreement.

Property Dispositions

On January 24, 2017, the Company closed on its sale of a single-tenant net lease property operated by SunTrust in Sylva, North Carolina for a contract price of $0.2 million, exclusive of closing costs. On January 31, 2017, the Company closed on its sale of the Merrill Lynch Properties for a contract price of $148.0 million, exclusive of closing costs. On February 17, 2017, the Company closed on its sale of a single-tenant net lease property operated by SunTrust in Landover, Maryland for a contract price of $0.8 million, exclusive of closing costs. All of these properties were classified as held for sale on the consolidated balance sheet as of December 31, 2016. See Note 4 — Real Estate Investments for more information on the Company's real estate investments held for sale as of December 31, 2016.

F-37

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)							Initial Costs				Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016			Land		Building and Improvements		Land (5)		Building and Improvements (5)				Accumulated Depreciation (8) (9)
Dollar General I	Mission	TX	4/29/2013	$	—	(1)	$	142	$	807	$	—	$	—	$	949	$	166
Dollar General I	Sullivan	MO	5/3/2013	—		(1)	146		825		—		—		971		170
Walgreens I	Pine Bluff	AR	7/8/2013	—		(1)	159		3,016		—		—		3,175		633
Dollar General II	Bogalusa	LA	7/12/2013	—		(1)	107		965		—		—		1,072		190
Dollar General II	Donaldsonville	LA	7/12/2013	—		(1)	97		871		—		—		968		171
AutoZone I	Cut Off	LA	7/16/2013	—		(1)	67		1,282		—		—		1,349		246
Dollar General III	Athens	MI	7/16/2013	—		(1)	48		907		—		—		955		174
Dollar General III	Fowler	MI	7/16/2013	—		(1)	49		940		—		—		989		181
Dollar General III	Hudson	MI	7/16/2013	—		(1)	102		922		—		—		1,024		177
Dollar General III	Muskegon	MI	7/16/2013	—		(1)	49		939		—		—		988		180
Dollar General III	Reese	MI	7/16/2013	—		(1)	150		848		—		—		998		163
BSFS I	Fort Myers	FL	7/18/2013	—		(1)	1,215		1,822		—		—		3,037		361
Dollar General IV	Bainbridge	GA	7/29/2013	—		(1)	233		700		—		—		933		134
Dollar General IV	Vanleer	TN	7/29/2013	—		(1)	78		705		—		—		783		135
Tractor Supply I	Vernon	CT	8/1/2013	—		(1)	358		3,220		—		—		3,578		525
Dollar General V	Meraux	LA	8/2/2013	—		(1)	708		1,315		—		—		2,023		253
Mattress Firm I	Tallahassee	FL	8/7/2013	—		(1)	1,015		1,241		—		—		2,256		238
Family Dollar I	Butler	KY	8/12/2013	—		(1)	126		711		—		—		837		137
Food Lion I	Charlotte	NC	8/19/2013	—		(1)	3,132		4,697		—		—		7,829		771
Lowe's I	Macon	GA	8/19/2013	—		(1)	—		8,420		—		—		8,420		1,323
Lowe's I	Fayetteville	NC	8/19/2013	—			—		6,422		—		—		6,422		1,009
Lowe's I	New Bern	NC	8/19/2013	—		(1)	1,812		10,269		—		—		12,081		1,614
Lowe's I	Rocky Mount	NC	8/19/2013	—		(1)	1,931		10,940		—		—		12,871		1,719
O'Reilly Auto Parts I	Manitowoc	WI	8/19/2013	—		(1)	85		761		—		—		846		143
Lowe's I	Aiken	SC	8/21/2013	—		(1)	1,764		7,056		—		—		8,820		1,107
Family Dollar II	Danville	AR	8/22/2013	—		(1)	170		679		—		—		849		127
Dollar General VI	Natalbany	LA	8/23/2013	—		(1)	379		883		—		—		1,262		165
Dollar General VII	Gasburg	VA	8/23/2013	—		(1)	52		993		—		—		1,045		186
Walgreens II	Tucker	GA	8/23/2013	—		(1)	—		2,524		—		—		2,524		505
Family Dollar III	Challis	ID	8/27/2013	—		(1)	44		828		—		—		872		155
Chili's I	Lake Jackson	TX	8/30/2013	—		(1)	746		1,741		—		—		2,487		409
Chili's I	Victoria	TX	8/30/2013	—		(1)	813		1,897		—		—		2,710		445
CVS I	Anniston	AL	8/30/2013	—		(1)	472		1,887		—		—		2,359		377
Joe's Crab Shack I	Westminster	CO	8/30/2013	—		(1)	1,136		2,650		—		—		3,786		622
Joe's Crab Shack I	Houston	TX	8/30/2013	—		(1)	1,169		2,171		—		—		3,340		510

F-38

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
Tire Kingdom I	Lake Wales	FL	9/4/2013	—	(1)	556	1,296	—		—		1,852	251
AutoZone II	Temple	GA	9/6/2013	—	(1)	569	854	—		—		1,423	160
Dollar General VIII	Stanleytown	VA	9/6/2013	—	(1)	185	1,049	—		—		1,234	196
Family Dollar IV	Oil City	LA	9/9/2013	—	(1)	76	685	—		—		761	128
Fresenius I	Montevallo	AL	9/12/2013	—	(1)	300	1,699	—		—		1,999	266
Dollar General IX	Mabelvale	AR	9/13/2013	—	(1)	38	723	—		—		761	135
Advance Auto I	Angola	IN	9/19/2013	—	(1)	35	671	—		—		706	123
Arby's I	Hernando	MS	9/19/2013	—	(1)	624	1,455	—		—		2,079	333
CVS II	Holyoke	MA	9/19/2013	—	(1)	—	2,258	—		—		2,258	440
Walgreens III	Lansing	MI	9/19/2013	—	(1)	216	4,099	—		—		4,315	799
Walgreens IV	Beaumont	TX	9/20/2013	—	(1)	499	1,995	—		—		2,494	389
American Express Travel Related Services I	Salt Lake City	UT	9/24/2013	—	(1)	4,150	32,789	—		—		36,939	8,352
American Express Travel Related Services I	Greensboro	NC	9/24/2013	—	(1)	1,620	41,401	—		—		43,021	9,770
AmeriCold I	Piedmont	SC	9/24/2013	—	(1)	3,030	24,067	—		—		27,097	4,771
AmeriCold I	Gaffney	SC	9/24/2013	—	(1)	1,360	5,666	—		—		7,026	1,123
AmeriCold I	Pendergrass	GA	9/24/2013	—	(1)	2,810	26,572	—		—		29,382	5,268
AmeriCold I	Gainesville	GA	9/24/2013	—	(1)	1,580	13,838	—		—		15,418	2,743
AmeriCold I	Cartersville	GA	9/24/2013	—	(1)	1,640	14,533	—		—		16,173	2,881
AmeriCold I	Douglas	GA	9/24/2013	—	(1)	750	7,076	—		—		7,826	1,403
AmeriCold I	Belvidere	IL	9/24/2013	—	(1)	2,170	17,843	—		—		20,013	3,537
AmeriCold I	Brooklyn Park	MN	9/24/2013	—	(1)	1,590	11,940	—		—		13,530	2,367
AmeriCold I	Zumbrota	MN	9/24/2013	—	(1)	2,440	18,152	—		—		20,592	3,599
Dollar General X	Greenwell Springs	LA	9/24/2013	—	(1)	114	1,029	—		—		1,143	188
Home Depot I	Valdosta	GA	9/24/2013	—	(1)	2,930	30,538	—		—		33,468	4,673
Home Depot I	Birmingham	AL	9/24/2013	—	(1)	3,660	33,667	—		—		37,327	5,152
L.A. Fitness I	Houston	TX	9/24/2013	—	(1)	2,540	8,379	—		—		10,919	1,359
National Tire & Battery I	San Antonio	TX	9/24/2013	—	(1)	577	577	—		—		1,154	109
New Breed Logistics I	Hanahan	SC	9/24/2013	—	(1)	2,940	19,171	—		—		22,111	3,801
SunTrust Bank I	Atlanta	GA	9/24/2013	—	(1)	2,190	5,666	(291	)	(641	)	6,924	843
SunTrust Bank I	Washington	DC	9/24/2013	—	(1)	590	2,366	—		—		2,956	412
SunTrust Bank I	New Smyrna Beach	FL	9/24/2013	—	(1)	740	2,859	—		—		3,599	498
SunTrust Bank I	Brooksville	FL	9/24/2013	—	(1)	360	127	(137	)	(40	)	310	22
SunTrust Bank I	West Palm Beach	FL	9/24/2013	—	(1)	520	2,264	(177	)	(636	)	1,971	394
SunTrust Bank I	Orlando	FL	9/24/2013	—	(1)	540	3,069	—		—		3,609	534

F-39

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank I	Orlando	FL	9/24/2013	—	(1)	410	2,078	—		—		2,488	362
SunTrust Bank I	Fort Pierce	FL	9/24/2013	—	(1)	720	1,434	—		—		2,154	250
SunTrust Bank I	Atlanta	GA	9/24/2013	—	(1)	570	1,152	—		—		1,722	201
SunTrust Bank I	Thomson	GA	9/24/2013	—	(1)	480	1,015	—		—		1,495	177
SunTrust Bank I	Waycross	GA	9/24/2013	—	(1)	300	1,425	—		—		1,725	248
SunTrust Bank I	Cary	NC	9/24/2013	—	(1)	370	841	—		—		1,211	147
SunTrust Bank I	Stokesdale	NC	9/24/2013	—	(1)	230	581	—		—		811	101
SunTrust Bank I	Summerfield	NC	9/24/2013	—	(1)	210	605	—		—		815	105
SunTrust Bank I	Waynesville	NC	9/24/2013	—	(1)	200	874	—		—		1,074	152
SunTrust Bank I	Fountain Inn	SC	9/24/2013	—	(1)	290	1,086	(155	)	(479	)	742	189
SunTrust Bank I	Nashville	TN	9/24/2013	—	(1)	190	666	—		—		856	116
SunTrust Bank I	Savannah	TN	9/24/2013	—	(1)	390	1,179	—		—		1,569	205
SunTrust Bank I	Chattanooga	TN	9/24/2013	—	(1)	220	781	—		—		1,001	136
SunTrust Bank I	Oak Ridge	TN	9/24/2013	—	(1)	500	1,277	—		—		1,777	222
SunTrust Bank I	Doswell	VA	9/24/2013	—	(1)	190	510	—		—		700	89
SunTrust Bank I	Vinton	VA	9/24/2013	—	(1)	120	366	—		—		486	64
SunTrust Bank I	New Market	VA	9/24/2013	—	(1)	330	948	—		—		1,278	165
SunTrust Bank I	Brunswick	GA	9/24/2013	—	(1)	80	249	—		—		329	43
SunTrust Bank I	Burlington	NC	9/24/2013	—	(1)	200	497	(21	)	(43	)	633	87
SunTrust Bank I	Pittsboro	NC	9/24/2013	—	(1)	100	304	(20	)	(50	)	334	53
SunTrust Bank I	Dunwoody	GA	9/24/2013	—	(1)	460	2,714	(85	)	(412	)	2,677	473
SunTrust Bank I	Athens	GA	9/24/2013	—	(1)	610	1,662	(97	)	(218	)	1,957	289
SunTrust Bank I	Spencer	NC	9/24/2013	—	(1)	280	717	(67	)	(141	)	789	125
SunTrust Bank I	Cleveland	TN	9/24/2013	—	(1)	170	461	(21	)	(47	)	563	80
SunTrust Bank I	Nassawadox	VA	9/24/2013	—	(1)	70	484	(8	)	(47	)	499	84
Circle K I	Burlington	IA	9/25/2013	—	(1)	224	523	—		—		747	96
Circle K I	Clinton	IA	9/25/2013	—	(1)	334	779	—		—		1,113	142
Circle K I	Muscatine	IA	9/25/2013	—	(1)	274	821	—		—		1,095	150
Circle K I	Aledo	IL	9/25/2013	—	(1)	427	1,709	—		—		2,136	312
Circle K I	Bloomington	IL	9/25/2013	—	(1)	316	586	—		—		902	107
Circle K I	Bloomington	IL	9/25/2013	—	(1)	395	592	—		—		987	108
Circle K I	Champaign	IL	9/25/2013	—	(1)	412	504	—		—		916	92
Circle K I	Galesburg	IL	9/25/2013	—	(1)	355	829	—		—		1,184	151
Circle K I	Jacksonville	IL	9/25/2013	—	(1)	351	818	—		—		1,169	149
Circle K I	Jacksonville	IL	9/25/2013	—	(1)	316	474	—		—		790	87

F-40

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition		Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)	Building and Improvements (5)		Accumulated Depreciation (8) (9)
Circle K I	Mattoon	IL	9/25/2013	—	(1)	608	1,129	—	—	1,737	206
Circle K I	Morton	IL	9/25/2013	—	(1)	350	525	—	—	875	96
Circle K I	Paris	IL	9/25/2013	—	(1)	429	797	—	—	1,226	146
Circle K I	Staunton	IL	9/25/2013	—	(1)	467	1,867	—	—	2,334	341
Circle K I	Vandalia	IL	9/25/2013	—	(1)	529	983	—	—	1,512	179
Circle K I	Virden	IL	9/25/2013	—	(1)	302	1,208	—	—	1,510	220
Circle K I	Lafayette	IN	9/25/2013	—	(1)	401	746	—	—	1,147	136
Circle K I	Bedford	OH	9/25/2013	—	(1)	702	702	—	—	1,404	128
Circle K I	Streetsboro	OH	9/25/2013	—	(1)	540	540	—	—	1,080	99
Walgreens V	Oklahoma City	OK	9/27/2013	—	(1)	1,295	3,884	—	—	5,179	757
Walgreens VI	Gillette	WY	9/27/2013	—	(1)	1,198	2,796	—	—	3,994	545
1st Constitution Bancorp I	Hightstown	NJ	9/30/2013	—	(1)	260	1,471	—	—	1,731	256
American Tire Distributors I	Chattanooga	TN	9/30/2013	—	(1)	401	7,626	—	—	8,027	1,512
FedEx Ground I	Watertown	SD	9/30/2013	—	(1)	136	2,581	—	—	2,717	512
Krystal I	Jacksonville	FL	9/30/2013	—	(1)	533	799	—	—	1,332	183
Krystal I	Columbus	GA	9/30/2013	—	(1)	143	1,288	—	—	1,431	295
Krystal I	Ft. Oglethorpe	GA	9/30/2013	—	(1)	181	1,024	—	—	1,205	234
Krystal I	Chattanooga	TN	9/30/2013	—	(1)	285	855	—	—	1,140	196
Krystal I	Cleveland	TN	9/30/2013	—	(1)	207	1,172	—	—	1,379	268
Krystal I	Madison	TN	9/30/2013	—	(1)	416	624	—	—	1,040	143
O'Charley's I	Lexington	KY	9/30/2013	—	(1)	409	955	—	—	1,364	219
O'Charley's I	Conyers	GA	9/30/2013	—	(1)	373	2,113	—	—	2,486	484
O'Charley's I	Southaven	MS	9/30/2013	—	(1)	836	1,553	—	—	2,389	355
O'Charley's I	Daphne	AL	9/30/2013	—	(1)	142	1,275	—	—	1,417	292
O'Charley's I	Kennesaw	GA	9/30/2013	—	(1)	142	1,280	—	—	1,422	293
O'Charley's I	Springfield	OH	9/30/2013	—	(1)	262	1,484	—	—	1,746	340
O'Charley's I	Murfreesboro	TN	9/30/2013	—	(1)	597	1,109	—	—	1,706	254
O'Charley's I	Mcdonough	GA	9/30/2013	—	(1)	335	1,899	—	—	2,234	434
O'Charley's I	Simpsonville	SC	9/30/2013	—	(1)	349	1,395	—	—	1,744	319
O'Charley's I	Grove City	OH	9/30/2013	—	(1)	387	1,546	—	—	1,933	354
O'Charley's I	Clarksville	TN	9/30/2013	—	(1)	917	1,376	—	—	2,293	315
O'Charley's I	Champaign	IL	9/30/2013	—	(1)	256	1,449	—	—	1,705	332
O'Charley's I	Columbus	OH	9/30/2013	—	(1)	271	1,533	—	—	1,804	351
O'Charley's I	Foley	AL	9/30/2013	—	(1)	264	1,495	—	—	1,759	342

F-41

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition		Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)	Building and Improvements (5)		Accumulated Depreciation (8) (9)
O'Charley's I	Corydon	IN	9/30/2013	—	(1)	260	1,473	—	—	1,733	337
O'Charley's I	Salisbury	NC	9/30/2013	—	(1)	439	1,024	—	—	1,463	234
O'Charley's I	Carrollton	GA	9/30/2013	—	(1)	457	1,067	—	—	1,524	244
O'Charley's I	Lake Charles	LA	9/30/2013	—	(1)	1,118	1,367	—	—	2,485	313
O'Charley's I	Hattiesburg	MS	9/30/2013	—	(1)	413	1,651	—	—	2,064	378
O'Charley's I	Greenfield	IN	9/30/2013	—	(1)	507	1,184	—	—	1,691	271
Walgreens VII	Monroe	MI	9/30/2013	—	(1)	1,149	2,680	—	—	3,829	523
Walgreens VII	St Louis	MO	9/30/2013	—	(1)	903	2,107	—	—	3,010	411
Walgreens VII	Rockledge	FL	9/30/2013	—	(1)	1,040	1,931	—	—	2,971	377
Walgreens VII	Florissant	MO	9/30/2013	—	(1)	474	1,422	—	—	1,896	277
Walgreens VII	Florissant	MO	9/30/2013	—	(1)	561	1,309	—	—	1,870	255
Walgreens VII	Alton	IL	9/30/2013	—	(1)	1,158	3,474	—	—	4,632	677
Walgreens VII	Springfield	IL	9/30/2013	—	(1)	1,319	3,078	—	—	4,397	600
Walgreens VII	Washington	IL	9/30/2013	—	(1)	964	2,893	—	—	3,857	564
Walgreens VII	Bloomington	IL	9/30/2013	—	(1)	1,568	3,659	—	—	5,227	713
Walgreens VII	Mahomet	IL	9/30/2013	—	(1)	1,432	2,659	—	—	4,091	519
Tractor Supply II	Houghton	MI	10/3/2013	—	(1)	204	1,158	—	—	1,362	179
National Tire & Battery II	Mundelein	IL	10/4/2013	—	(1)	—	1,742	—	—	1,742	328
United Healthcare I	Howard (Green Bay)	WI	10/7/2013	—	(1)	3,805	47,565	—	—	51,370	4,118
Tractor Supply III	Harlan	KY	10/16/2013	—	(1)	248	2,232	—	—	2,480	337
Mattress Firm II	Knoxville	TN	10/18/2013	—	(1)	189	754	—	—	943	134
Dollar General XI	Greenville	MS	10/23/2013	—	(1)	192	769	—	—	961	137
Academy Sports I	Cape Girardeau	MO	10/29/2013	—	(1)	384	7,292	—	—	7,676	1,110
Talecris Plasma Resources I	Eagle Pass	TX	10/29/2013	—	(1)	286	2,577	—	—	2,863	384
Amazon I	Winchester	KY	10/30/2013	—	(1)	362	8,070	—	—	8,432	1,306
Fresenius II	Montclair	NJ	10/31/2013	—	(1)	1,214	2,255	—	—	3,469	336
Fresenius II	Sharon Hill	PA	10/31/2013	—	(1)	345	1,956	—	—	2,301	291
Dollar General XII	Le Center	MN	11/1/2013	—	(1)	47	886	—	—	933	158
Advance Auto II	Bunnell	FL	11/7/2013	—	(1)	92	1,741	—	—	1,833	310
Advance Auto II	Washington	GA	11/7/2013	—	(1)	55	1,042	—	—	1,097	185
Dollar General XIII	Vidor	TX	11/7/2013	—	(1)	46	875	—	—	921	156
FedEx Ground II	Leland	MS	11/12/2013	—	(1)	220	4,186	—	—	4,406	809

F-42

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition		Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)	Building and Improvements (5)		Accumulated Depreciation (8) (9)
Burger King I	Algonquin	IL	11/14/2013	—	(1)	798	798	—	—	1,596	140
Burger King I	Antioch	IL	11/14/2013	—	(1)	706	471	—	—	1,177	83
Burger King I	Crystal Lake	IL	11/14/2013	—	(1)	541	232	—	—	773	41
Burger King I	Grayslake	IL	11/14/2013	—	(1)	582	476	—	—	1,058	84
Burger King I	Gurnee	IL	11/14/2013	—	(1)	931	931	—	—	1,862	163
Burger King I	McHenry	IL	11/14/2013	—	(1)	742	318	—	—	1,060	56
Burger King I	Round Lake Beach	IL	11/14/2013	—	(1)	1,273	1,042	—	—	2,315	183
Burger King I	Waukegan	IL	11/14/2013	—	(1)	611	611	—	—	1,222	107
Burger King I	Woodstock	IL	11/14/2013	—	(1)	869	290	—	—	1,159	51
Burger King I	Austintown	OH	11/14/2013	—	(1)	221	1,251	—	—	1,472	219
Burger King I	Beavercreek	OH	11/14/2013	—	(1)	410	761	—	—	1,171	134
Burger King I	Celina	OH	11/14/2013	—	(1)	233	932	—	—	1,165	164
Burger King I	Chardon	OH	11/14/2013	—	(1)	332	497	—	—	829	87
Burger King I	Chesterland	OH	11/14/2013	—	(1)	320	747	—	—	1,067	131
Burger King I	Cortland	OH	11/14/2013	—	(1)	118	1,063	—	—	1,181	187
Burger King I	Dayton	OH	11/14/2013	—	(1)	464	862	—	—	1,326	151
Burger King I	Fairborn	OH	11/14/2013	—	(1)	421	982	—	—	1,403	172
Burger King I	Girard	OH	11/14/2013	—	(1)	421	1,264	—	—	1,685	222
Burger King I	Greenville	OH	11/14/2013	—	(1)	248	993	—	—	1,241	174
Burger King I	Madison	OH	11/14/2013	—	(1)	282	845	—	—	1,127	148
Burger King I	Mentor	OH	11/14/2013	—	(1)	196	786	—	—	982	138
Burger King I	Niles	OH	11/14/2013	—	(1)	304	1,214	—	—	1,518	213
Burger King I	North Royalton	OH	11/14/2013	—	(1)	156	886	—	—	1,042	156
Burger King I	Painesville	OH	11/14/2013	—	(1)	170	965	—	—	1,135	169
Burger King I	Poland	OH	11/14/2013	—	(1)	212	847	—	—	1,059	149
Burger King I	Ravenna	OH	11/14/2013	—	(1)	391	1,172	—	—	1,563	206
Burger King I	Salem	OH	11/14/2013	—	(1)	352	1,408	—	—	1,760	247
Burger King I	Trotwood	OH	11/14/2013	—	(1)	266	798	—	—	1,064	140
Burger King I	Twinsburg	OH	11/14/2013	—	(1)	458	850	—	—	1,308	149
Burger King I	Vandalia	OH	11/14/2013	—	(1)	182	728	—	—	910	128
Burger King I	Warren	OH	11/14/2013	—	(1)	176	997	—	—	1,173	175
Burger King I	Warren	OH	11/14/2013	—	(1)	168	1,516	—	—	1,684	266

F-43

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition		Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)	Building and Improvements (5)		Accumulated Depreciation (8) (9)
Burger King I	Willoughby	OH	11/14/2013	—	(1)	394	920	—	—	1,314	161
Burger King I	Youngstown	OH	11/14/2013	—	(1)	300	901	—	—	1,201	158
Burger King I	Youngstown	OH	11/14/2013	—	(1)	186	1,675	—	—	1,861	294
Burger King I	Youngstown	OH	11/14/2013	—	(1)	147	1,324	—	—	1,471	232
Burger King I	Youngstown	OH	11/14/2013	—	(1)	370	1,481	—	—	1,851	260
Burger King I	Bethel Park	PA	11/14/2013	—	(1)	342	634	—	—	976	111
Burger King I	North Fayette	PA	11/14/2013	—	(1)	463	1,388	—	—	1,851	244
Burger King I	North Versailles	PA	11/14/2013	—	(1)	553	1,659	—	—	2,212	291
Burger King I	Columbiana	OH	11/14/2013	—	(1)	581	871	—	—	1,452	153
Dollar General XIV	Fort Smith	AR	11/20/2013	—	(1)	184	1,042	—	—	1,226	180
Dollar General XIV	Hot Springs	AR	11/20/2013	—	(1)	287	862	—	—	1,149	149
Dollar General XIV	Royal	AR	11/20/2013	—	(1)	137	777	—	—	914	135
Dollar General XV	Wilson	NY	11/20/2013	—	(1)	172	972	—	—	1,144	168
Mattress Firm I	McDonough	GA	11/22/2013	—	(1)	185	1,663	—	—	1,848	288
FedEx Ground III	Bismarck	ND	11/25/2013	—	(1)	554	3,139	—	—	3,693	590
Dollar General XVI	LaFollette	TN	11/27/2013	—	(1)	43	824	—	—	867	143
Family Dollar V	Carrollton	MO	11/27/2013	—	(1)	37	713	—	—	750	124
Walgreens VIII	Bettendorf	IA	12/6/2013	—	(1)	1,398	3,261	—	—	4,659	603
CVS III	Detroit	MI	12/10/2013	—	(1)	447	2,533	—	—	2,980	469
Family Dollar VI	Walden	CO	12/10/2013	—	(1)	100	568	—	—	668	98
Mattress Firm III	Valdosta	GA	12/17/2013	—	(1)	169	1,522	—	—	1,691	256
Arby's II	Virginia	MN	12/23/2013	—	(1)	117	1,056	—	—	1,173	176
Family Dollar VI	Kremmling	CO	12/23/2013	—	(1)	194	778	—	—	972	131
SAAB Sensis I	Syracuse	NY	12/23/2013	7,841		2,516	12,570	—	—	15,086	1,071
Citizens Bank I	Doylestown	PA	12/27/2013	—	(1)	588	1,373	—	—	1,961	221
Citizens Bank I	Lansdale	PA	12/27/2013	—	(1)	531	1,238	—	—	1,769	199
Citizens Bank I	Lima	PA	12/27/2013	—	(1)	1,376	1,682	—	—	3,058	270
Citizens Bank I	Philadelphia	PA	12/27/2013	—	(1)	473	2,680	—	—	3,153	431
Citizens Bank I	Philadelphia	PA	12/27/2013	—	(1)	412	2,337	—	—	2,749	376
Citizens Bank I	Philadelphia	PA	12/27/2013	—	(1)	321	2,889	—	—	3,210	464
Citizens Bank I	Philadelphia	PA	12/27/2013	—	(1)	388	1,551	—	—	1,939	249
Citizens Bank I	Richboro	PA	12/27/2013	—	(1)	642	1,193	—	—	1,835	192

F-44

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
Citizens Bank I	Wayne	PA	12/27/2013	—	(1)	1,923	1,923	—		—		3,846	309
Walgreens IX	Waterford	MI	1/3/2014	—	(1)	514	4,531	—		—		5,045	359
SunTrust Bank II	Lakeland	FL	1/8/2014	—	(2)	590	705	—		—		1,295	72
SunTrust Bank II	Pensacola	FL	1/8/2014	—	(2)	513	297	(74	)	(39	)	697	31
SunTrust Bank II	Plant City	FL	1/8/2014	—	(2)	499	1,139	—		—		1,638	106
SunTrust Bank II	Vero Beach	FL	1/8/2014	—	(2)	825	2,682	—		—		3,507	224
SunTrust Bank II	Osprey	FL	1/8/2014	—	(2)	450	2,086	(187	)	(787	)	1,562	196
SunTrust Bank II	Panama City	FL	1/8/2014	—	(2)	484	1,075	—		—		1,559	98
SunTrust Bank II	Miami	FL	1/8/2014	—	(2)	3,187	3,224	—		—		6,411	272
SunTrust Bank II	Winter Park	FL	1/8/2014	—	(2)	2,264	1,079	—		—		3,343	101
SunTrust Bank II	Fruitland Park	FL	1/8/2014	—	(2)	305	785	(126	)	(292	)	672	75
SunTrust Bank II	Seminole	FL	1/8/2014	—	(2)	1,329	3,486	—		—		4,815	286
SunTrust Bank II	Okeechobee	FL	1/8/2014	—	(2)	339	1,569	—		—		1,908	170
SunTrust Bank II	Norcross	GA	1/8/2014	—	(2)	660	252	(255	)	(88	)	569	25
SunTrust Bank II	Douglasville	GA	1/8/2014	—	(2)	410	749	—		—		1,159	66
SunTrust Bank II	Duluth	GA	1/8/2014	—	(2)	1,081	2,111	—		—		3,192	179
SunTrust Bank II	Atlanta	GA	1/8/2014	—	(2)	1,071	2,293	—		—		3,364	196
SunTrust Bank II	Kennesaw	GA	1/8/2014	—	(2)	930	1,727	(437	)	(741	)	1,479	151
SunTrust Bank II	Cockeysville	MD	1/8/2014	—	(2)	2,184	479	—		—		2,663	41
SunTrust Bank II	Apex	NC	1/8/2014	—	(2)	296	1,240	—		—		1,536	102
SunTrust Bank II	Arden	NC	1/8/2014	—	(2)	374	216	—		—		590	23
SunTrust Bank II	Greensboro	NC	1/8/2014	—	(2)	650	712	(192	)	(189	)	981	71
SunTrust Bank II	Greensboro	NC	1/8/2014	—	(2)	326	633	—		—		959	55
SunTrust Bank II	Salisbury	NC	1/8/2014	—	(2)	264	293	—		—		557	33
SunTrust Bank II	Mauldin	SC	1/8/2014	—	(2)	542	704	—		—		1,246	69
SunTrust Bank II	Nashville	TN	1/8/2014	—	(2)	890	504	—		—		1,394	53
SunTrust Bank II	Chattanooga	TN	1/8/2014	—	(2)	358	564	—		—		922	50
SunTrust Bank II	East Ridge	TN	1/8/2014	—	(2)	276	475	—		—		751	47
SunTrust Bank II	Fredericksburg	VA	1/8/2014	—	(2)	1,623	446	—		—		2,069	46
SunTrust Bank II	Lynchburg	VA	1/8/2014	—	(2)	584	1,255	—		—		1,839	111
SunTrust Bank II	Chesapeake	VA	1/8/2014	—	(2)	490	695	—		—		1,185	64
SunTrust Bank II	Bushnell	FL	1/8/2014	—	(2)	385	1,216	—		—		1,601	96

F-45

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
Mattress Firm IV	Meridian	ID	1/9/2014	—	(1)	691	1,193	—		—		1,884	107
Dollar General XII	Sunrise Beach	MO	1/15/2014	—	(1)	105	795	—		—		900	100
FedEx Ground IV	Council Bluffs	IA	1/24/2014	—	(1)	768	3,908	—		—		4,676	365
Mattress Firm V	Florence	AL	1/28/2014	—	(1)	299	1,478	—		—		1,777	128
Mattress Firm I	Aiken	SC	2/5/2014	—	(1)	426	1,029	—		—		1,455	103
Family Dollar VII	Bernice	LA	2/7/2014	—	(1)	51	527	—		—		578	48
Aaron's I	Erie	PA	2/10/2014	—	(1)	126	708	—		—		834	58
AutoZone III	Caro	MI	2/13/2014	—	(1)	135	855	—		—		990	73
C&S Wholesale Grocer I	Westfield	MA	2/21/2014	29,500		12,050	29,727	—		—		41,777	2,737
C&S Wholesale Grocer I	Hatfield (North)	MA	2/21/2014	20,280		1,951	27,528	—		—		29,479	2,514
C&S Wholesale Grocer I	Hatfield (South)	MA	2/21/2014	10,000		1,420	14,169	—		—		15,589	1,047
C&S Wholesale Grocer I	Aberdeen	MD	2/21/2014	22,533		3,615	27,684	—		—		31,299	2,005
C&S Wholesale Grocer I	Birmingham	AL	2/21/2014	—	(1)	4,951	36,894	—		—		41,845	2,685
Advance Auto III	Taunton	MA	2/25/2014	—	(1)	404	1,148	—		—		1,552	88
Family Dollar VIII	Dexter	NM	3/3/2014	—	(1)	79	745	—		—		824	74
Family Dollar VIII	Hale Center	TX	3/3/2014	—	(1)	111	624	—		—		735	62
Family Dollar VIII	Plains	TX	3/3/2014	—	(1)	100	624	—		—		724	62
Dollar General XVII	Tullos	LA	3/5/2014	—	(1)	114	736	—		—		850	63
SunTrust Bank III	Muscle Shoals	AL	3/10/2014	—	(3)	242	1,480	(31	)	(174	)	1,517	135
SunTrust Bank III	Sarasota	FL	3/10/2014	—	(3)	741	852	—		—		1,593	77
SunTrust Bank III	Vero Beach	FL	3/10/2014	—	(3)	675	483	(372	)	(240	)	546	47
SunTrust Bank III	Fort Meade	FL	3/10/2014	—	(3)	175	2,375	(72	)	(899	)	1,579	188
SunTrust Bank III	Port St. Lucie	FL	3/10/2014	—	(3)	913	1,772	—		—		2,685	153
SunTrust Bank III	Mulberry	FL	3/10/2014	—	(3)	406	753	—		—		1,159	67
SunTrust Bank III	Gainesville	FL	3/10/2014	—	(3)	458	2,139	—		—		2,597	170
SunTrust Bank III	Gainesville	FL	3/10/2014	—	(3)	457	816	—		—		1,273	73
SunTrust Bank III	Gulf Breeze	FL	3/10/2014	—	(3)	1,092	1,569	—		—		2,661	134
SunTrust Bank III	Sarasota	FL	3/10/2014	—	(3)	955	1,329	—		—		2,284	112
SunTrust Bank III	Hobe Sound	FL	3/10/2014	—	(3)	442	1,521	(182	)	(574	)	1,207	124
SunTrust Bank III	Port St. Lucie	FL	3/10/2014	—	(3)	996	872	(555	)	(441	)	872	81
SunTrust Bank III	Mount Dora	FL	3/10/2014	—	(3)	570	1,933	—		—		2,503	153
SunTrust Bank III	Daytona Beach	FL	3/10/2014	—	(3)	376	1,379	(174	)	(585	)	996	117
SunTrust Bank III	Lutz	FL	3/10/2014	—	(3)	438	1,477	—		—		1,915	117
SunTrust Bank III	Jacksonville	FL	3/10/2014	—	(3)	871	372	—		—		1,243	37
SunTrust Bank III	Jacksonville	FL	3/10/2014	—	(3)	366	1,136	—		—		1,502	95

F-46

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank III	Boca Raton	FL	3/10/2014	—	(3)	1,617	690	(364	)	(142	)	1,801	60
SunTrust Bank III	Tamarac	FL	3/10/2014	—	(3)	997	1,241	—		—		2,238	105
SunTrust Bank III	Pompano Beach	FL	3/10/2014	—	(3)	886	2,024	—		—		2,910	159
SunTrust Bank III	St. Cloud	FL	3/10/2014	—	(3)	1,046	1,887	—		—		2,933	155
SunTrust Bank III	Ormond Beach	FL	3/10/2014	—	(3)	1,047	1,566	—		—		2,613	137
SunTrust Bank III	Daytona Beach	FL	3/10/2014	—	(3)	443	1,586	—		—		2,029	137
SunTrust Bank III	Ormond Beach	FL	3/10/2014	—	(3)	854	1,385	—		—		2,239	117
SunTrust Bank III	Ormond Beach	FL	3/10/2014	—	(3)	873	2,235	—		—		3,108	178
SunTrust Bank III	Brooksville	FL	3/10/2014	—	(3)	460	954	(175	)	(331	)	908	84
SunTrust Bank III	Inverness	FL	3/10/2014	—	(3)	867	2,559	—		—		3,426	210
SunTrust Bank III	Indian Harbour Beach	FL	3/10/2014	—	(3)	914	1,181	—		—		2,095	138
SunTrust Bank III	Melbourne	FL	3/10/2014	—	(3)	772	1,927	—		—		2,699	158
SunTrust Bank III	Orlando	FL	3/10/2014	—	(3)	1,234	1,125	—		—		2,359	97
SunTrust Bank III	Orlando	FL	3/10/2014	—	(3)	874	1,922	—		—		2,796	154
SunTrust Bank III	St. Petersburg	FL	3/10/2014	—	(3)	803	1,043	—		—		1,846	86
SunTrust Bank III	Casselberry	FL	3/10/2014	—	(3)	609	2,443	—		—		3,052	195
SunTrust Bank III	Rockledge	FL	3/10/2014	—	(3)	742	1,126	—		—		1,868	94
SunTrust Bank III	New Smyrna Beach	FL	3/10/2014	—	(3)	244	1,245	(115	)	(536	)	838	104
SunTrust Bank III	New Port Richey	FL	3/10/2014	—	(3)	602	1,104	(330	)	(554	)	822	93
SunTrust Bank III	Tampa	FL	3/10/2014	—	(3)	356	1,042	(149	)	(394	)	855	103
SunTrust Bank III	Lakeland	FL	3/10/2014	—	(3)	927	1,594	—		—		2,521	155
SunTrust Bank III	Ocala	FL	3/10/2014	—	(3)	347	1,336	—		—		1,683	151
SunTrust Bank III	St. Petersburg	FL	3/10/2014	—	(3)	211	1,237	(107	)	(576	)	765	103
SunTrust Bank III	Atlanta	GA	3/10/2014	—	(3)	3,027	4,873	—		—		7,900	367
SunTrust Bank III	Atlanta	GA	3/10/2014	—	(3)	4,422	1,559	—		—		5,981	130
SunTrust Bank III	Stone Mountain	GA	3/10/2014	—	(3)	605	522	—		—		1,127	43
SunTrust Bank III	Lithonia	GA	3/10/2014	—	(3)	212	770	—		—		982	64
SunTrust Bank III	Union City	GA	3/10/2014	—	(3)	400	542	—		—		942	48
SunTrust Bank III	Peachtree City	GA	3/10/2014	—	(3)	887	2,242	—		—		3,129	188
SunTrust Bank III	Stockbridge	GA	3/10/2014	—	(3)	358	760	—		—		1,118	66
SunTrust Bank III	Conyers	GA	3/10/2014	—	(3)	205	1,334	—		—		1,539	105
SunTrust Bank III	Morrow	GA	3/10/2014	—	(3)	400	1,759	(74	)	(301	)	1,784	139
SunTrust Bank III	Marietta	GA	3/10/2014	—	(3)	2,168	1,169	—		—		3,337	103
SunTrust Bank III	Marietta	GA	3/10/2014	—	(3)	1,087	2,056	—		—		3,143	159
SunTrust Bank III	Thomson	GA	3/10/2014	—	(3)	91	719	—		—		810	66

F-47

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank III	Savannah	GA	3/10/2014	—	(3)	224	1,116	—		—		1,340	91
SunTrust Bank III	Savannah	GA	3/10/2014	—	(3)	458	936	—		—		1,394	92
SunTrust Bank III	Macon	GA	3/10/2014	—	(3)	214	771	—		—		985	71
SunTrust Bank III	Albany	GA	3/10/2014	—	(3)	260	531	(25	)	(45	)	721	61
SunTrust Bank III	Sylvester	GA	3/10/2014	—	(3)	242	845	—		—		1,087	72
SunTrust Bank III	Brunswick	GA	3/10/2014	—	(3)	384	888	—		—		1,272	77
SunTrust Bank III	Athens	GA	3/10/2014	—	(3)	427	472	—		—		899	60
SunTrust Bank III	Cartersville	GA	3/10/2014	—	(3)	658	1,734	—		—		2,392	140
SunTrust Bank III	Annapolis	MD	3/10/2014	—	(3)	3,331	1,655	(1,739	)	(803	)	2,444	117
SunTrust Bank III	Cambridge	MD	3/10/2014	—	(3)	1,130	1,265	(187	)	(194	)	2,014	92
SunTrust Bank III	Avondale	MD	3/10/2014	—	(3)	1,760	485	—		—		2,245	42
SunTrust Bank III	Asheboro	NC	3/10/2014	—	(3)	458	774	—		—		1,232	68
SunTrust Bank III	Bessemer City	NC	3/10/2014	—	(3)	212	588	(47	)	(119	)	634	49
SunTrust Bank III	Charlotte	NC	3/10/2014	—	(3)	529	650	—		—		1,179	53
SunTrust Bank III	Charlotte	NC	3/10/2014	—	(3)	563	750	—		—		1,313	67
SunTrust Bank III	Dunn	NC	3/10/2014	—	(3)	384	616	—		—		1,000	57
SunTrust Bank III	Durham	NC	3/10/2014	—	(3)	488	742	—		—		1,230	60
SunTrust Bank III	Durham	NC	3/10/2014	—	(3)	284	506	—		—		790	51
SunTrust Bank III	Greensboro	NC	3/10/2014	—	(3)	488	794	—		—		1,282	72
SunTrust Bank III	Hendersonville	NC	3/10/2014	—	(3)	468	945	—		—		1,413	79
SunTrust Bank III	Lenoir	NC	3/10/2014	—	(3)	1,021	3,980	—		—		5,001	302
SunTrust Bank III	Lexington	NC	3/10/2014	—	(3)	129	266	(18	)	(33	)	344	34
SunTrust Bank III	Mebane	NC	3/10/2014	—	(3)	500	887	—		—		1,387	71
SunTrust Bank III	Oxford	NC	3/10/2014	—	(3)	530	1,727	—		—		2,257	133
SunTrust Bank III	Rural Hall	NC	3/10/2014	—	(3)	158	193	(61	)	(67	)	223	20
SunTrust Bank III	Winston-Salem	NC	3/10/2014	—	(3)	362	513	—		—		875	45
SunTrust Bank III	Yadkinville	NC	3/10/2014	—	(3)	438	765	—		—		1,203	61
SunTrust Bank III	Greenville	SC	3/10/2014	—	(3)	377	871	—		—		1,248	73
SunTrust Bank III	Greenville	SC	3/10/2014	—	(3)	264	684	—		—		948	58
SunTrust Bank III	Greenville	SC	3/10/2014	—	(3)	590	1,007	—		—		1,597	89
SunTrust Bank III	Greenville	SC	3/10/2014	—	(3)	449	1,640	—		—		2,089	168
SunTrust Bank III	Nashville	TN	3/10/2014	—	(3)	204	740	—		—		944	57
SunTrust Bank III	Nashville	TN	3/10/2014	—	(3)	1,776	1,601	—		—		3,377	148
SunTrust Bank III	Brentwood	TN	3/10/2014	—	(3)	885	1,987	—		—		2,872	160
SunTrust Bank III	Brentwood	TN	3/10/2014	—	(3)	996	1,536	—		—		2,532	126

F-48

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank III	Smyrna	TN	3/10/2014	—	(3)	501	767	—		—		1,268	71
SunTrust Bank III	Murfreesboro	TN	3/10/2014	—	(3)	451	847	—		—		1,298	65
SunTrust Bank III	Murfreesboro	TN	3/10/2014	—	(3)	262	182	—		—		444	21
SunTrust Bank III	Soddy Daisy	TN	3/10/2014	—	(3)	338	624	—		—		962	49
SunTrust Bank III	Signal Mountain	TN	3/10/2014	—	(3)	296	697	—		—		993	57
SunTrust Bank III	Chattanooga	TN	3/10/2014	—	(3)	419	811	—		—		1,230	65
SunTrust Bank III	Chattanooga	TN	3/10/2014	—	(3)	191	335	—		—		526	27
SunTrust Bank III	Kingsport	TN	3/10/2014	—	(3)	162	260	—		—		422	24
SunTrust Bank III	Loudon	TN	3/10/2014	—	(3)	331	541	(38	)	(56	)	778	45
SunTrust Bank III	Morristown	TN	3/10/2014	—	(3)	214	444	—		—		658	51
SunTrust Bank III	Richmond	VA	3/10/2014	—	(3)	153	313	—		—		466	31
SunTrust Bank III	Richmond	VA	3/10/2014	—	(3)	233	214	—		—		447	21
SunTrust Bank III	Fairfax	VA	3/10/2014	—	(3)	2,835	1,081	—		—		3,916	86
SunTrust Bank III	Lexington	VA	3/10/2014	—	(3)	122	385	—		—		507	36
SunTrust Bank III	Roanoke	VA	3/10/2014	—	(3)	316	734	—		—		1,050	60
SunTrust Bank III	Williamsburg	VA	3/10/2014	—	(3)	447	585	—		—		1,032	55
SunTrust Bank III	Onancock	VA	3/10/2014	—	(3)	829	1,300	—		—		2,129	99
SunTrust Bank III	Accomac	VA	3/10/2014	—	(3)	149	128	—		—		277	10
SunTrust Bank III	Painter	VA	3/10/2014	—	(3)	89	259	(14	)	(37	)	297	24
SunTrust Bank III	Stafford	VA	3/10/2014	—	(3)	2,130	1,714	—		—		3,844	138
SunTrust Bank III	Roanoke	VA	3/10/2014	—	(3)	753	1,165	—		—		1,918	99
SunTrust Bank III	Melbourne	FL	3/10/2014	—	(3)	788	1,888	—		—		2,676	149
SunTrust Bank III	Raleigh	NC	3/10/2014	—	(3)	629	1,581	—		—		2,210	118
SunTrust Bank III	Richmond	VA	3/10/2014	—	(3)	3,141	7,441	(706	)	(1,517	)	8,359	692
SunTrust Bank IV	Lake Mary	FL	3/10/2014	—	(4)	1,911	2,849	—		—		4,760	226
SunTrust Bank IV	Bayonet Point	FL	3/10/2014	—	(4)	528	1,172	(257	)	(524	)	919	97
SunTrust Bank IV	St. Augustine	FL	3/10/2014	—	(4)	489	2,129	—		—		2,618	168
SunTrust Bank IV	Deltona	FL	3/10/2014	—	(4)	631	1,512	(300	)	(655	)	1,188	132
SunTrust Bank IV	Spring Hill	FL	3/10/2014	—	(4)	673	2,550	—		—		3,223	197
SunTrust Bank IV	Pembroke Pines	FL	3/10/2014	—	(4)	1,688	548	—		—		2,236	56
SunTrust Bank IV	Palm Coast	FL	3/10/2014	—	(4)	447	1,548	(218	)	(691	)	1,086	130
SunTrust Bank IV	Clearwater	FL	3/10/2014	—	(4)	783	1,936	—		—		2,719	149
SunTrust Bank IV	Ocala	FL	3/10/2014	—	(4)	581	1,091	—		—		1,672	104
SunTrust Bank IV	Ocala	FL	3/10/2014	—	(4)	559	750	—		—		1,309	80
SunTrust Bank IV	Chamblee	GA	3/10/2014	—	(4)	1,029	813	—		—		1,842	72

F-49

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank IV	Stone Mountain	GA	3/10/2014	—	(4)	461	475	—		—		936	41
SunTrust Bank IV	Columbus	GA	3/10/2014	—	(4)	417	1,395	—		—		1,812	114
SunTrust Bank IV	Madison	GA	3/10/2014	—	(4)	304	612	—		—		916	47
SunTrust Bank IV	Prince Frederick	MD	3/10/2014	—	(4)	2,431	940	—		—		3,371	83
SunTrust Bank IV	Charlotte	NC	3/10/2014	—	(4)	651	444	—		—		1,095	46
SunTrust Bank IV	Creedmoor	NC	3/10/2014	—	(4)	306	789	—		—		1,095	67
SunTrust Bank IV	Greensboro	NC	3/10/2014	—	(4)	619	742	—		—		1,361	78
SunTrust Bank IV	Pittsboro	NC	3/10/2014	—	(4)	61	510	—		—		571	37
SunTrust Bank IV	Roxboro	NC	3/10/2014	—	(4)	234	1,100	—		—		1,334	84
SunTrust Bank IV	Liberty	SC	3/10/2014	—	(4)	254	911	(145	)	(478	)	542	72
SunTrust Bank IV	Nashville	TN	3/10/2014	—	(4)	1,035	745	—		—		1,780	60
SunTrust Bank IV	Johnson City	TN	3/10/2014	—	(4)	174	293	—		—		467	32
SunTrust Bank IV	Gloucester	VA	3/10/2014	—	(4)	154	2,281	—		—		2,435	177
SunTrust Bank IV	Collinsville	VA	3/10/2014	—	(4)	215	555	—		—		770	47
SunTrust Bank IV	Stuart	VA	3/10/2014	—	(4)	374	1,532	—		—		1,906	122
SunTrust Bank IV	Douglas	GA	3/10/2014	—	(4)	73	1,248	—		—		1,321	97
Dollar General XVIII	Deville	LA	3/19/2014	—	(1)	93	741	—		—		834	61
Mattress Firm I	Holland	MI	3/19/2014	—	(1)	507	1,014	—		—		1,521	93
Sanofi US I	Bridgewater	NJ	3/20/2014	125,000		16,009	194,287	—		—		210,296	14,315
Dollar General XVII	Hornbeck	LA	3/25/2014	—	(1)	82	780	—		—		862	64
Family Dollar IX	Fannettsburg	PA	4/8/2014	—	(1)	165	803	—		—		968	64
Mattress Firm I	Saginaw	MI	4/8/2014	—	(1)	337	1,140	—		—		1,477	99
Bi-Lo I	Greenville	SC	5/8/2014	—	(1)	1,504	4,770	—		—		6,274	363
Stop & Shop I	Bristol	RI	5/8/2014	7,715		2,860	10,010	—		—		12,870	743
Stop & Shop I	Cumberland	RI	5/8/2014	—	(1)	3,295	13,693	—		—		16,988	1,044
Stop & Shop I	Framingham	MA	5/8/2014	8,572		3,971	12,289	—		—		16,260	851
Stop & Shop I	Hyde Park	NY	5/8/2014	—	(1)	3,154	10,646	—		—		13,800	787
Stop & Shop I	Malden	MA	5/8/2014	11,752		4,418	15,195	—		—		19,613	1,048
Stop & Shop I	Sicklerville	NJ	5/8/2014	—	(1)	2,367	9,873	—		—		12,240	711
Stop & Shop I	Southington	CT	5/8/2014	—	(1)	3,238	13,169	—		—		16,407	960
Stop & Shop I	Swampscott	MA	5/8/2014	10,232		3,644	12,982	—		—		16,626	894
Dollar General XVII	Forest Hill	LA	5/12/2014	—	(1)	83	728	—		—		811	59
Dollar General XIX	Chelsea	OK	5/13/2014	—	(1)	231	919	—		—		1,150	81
Dollar General XX	Brookhaven	MS	5/14/2014	—	(1)	186	616	—		—		802	49
Dollar General XX	Columbus	MS	5/14/2014	—	(1)	370	491	—		—		861	44

F-50

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part I

December 31, 2016

(In thousands)							Initial Costs				Subsequent to Acquisition						Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016			Land		Building and Improvements		Land (5)			Building and Improvements (5)					Accumulated Depreciation (8) (9)
Dollar General XX	Forest	MS	5/14/2014	—		(1)	72		856		—			—			928		64
Dollar General XX	Rolling Fork	MS	5/14/2014	—		(1)	244		929		—			—			1,173		71
Dollar General XX	West Point	MS	5/14/2014	—		(1)	318		506		—			—			824		48
Dollar General XXI	Huntington	WV	5/29/2014	—		(1)	101		1,101		—			—			1,202		91
Dollar General XXII	Warren	IN	5/30/2014	—		(1)	88		962		—			—			1,050		67
FedEx Ground V	Sioux City	IA	2/17/2016	—			199		5,639		—			—			5,838		137
FedEx Ground VI	Grand Forks	ND	2/19/2016	—			1,287		8,988		—			—			10,275		247
FedEx Ground VII	Eagle River	WI	2/19/2016	—			40		6,022		—			—			6,062		157
FedEx Ground VIII	Wausau	WI	2/23/2016	—			202		9,017		—			—			9,219		250
Encumbrances allocated based on notes below				784,342
Total				$	1,037,767		$	337,461	$	1,411,458	$	(8,805	)	$	(15,856	)	$	1,724,258	$	183,437

  ___________________________________

(1) These properties collateralize a multi-tenant mortgage loan, which had $649.5 million outstanding as of December 31, 2016.

(2) These properties collateralize a mortgage note payable of $25.0 million as of December 31, 2016.

(3) These properties collateralize a mortgage note payable of $88.6 million as of December 31, 2016.

(4) These properties collateralize a mortgage note payable of $21.2 million as of December 31, 2016.

(5) During the year ended December 31, 2016, the Company determined that the carrying value of 43 properties operated by SunTrust exceeded their estimated fair values and recognized an impairment charge of $24.7 million.

(6) Acquired intangible lease assets allocated to individual properties in the amount of $300.1 million are not reflected in the table above.

(7) The tax basis of aggregate land, buildings and improvements as of December 31, 2016 is $2.0 billion.

(8) The accumulated depreciation column excludes $103.7 million of accumulated amortization associated with acquired intangible lease assets.

(9) Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements and five years for fixtures.

F-51

AMERICAN FINANCE TRUST, INC.

Real Estate and Accumulated Depreciation

Schedule III — Part II

December 31, 2016

The following is a summary of activity for real estate and accumulated depreciation for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(In thousands)	2016			2015		2014
Real estate investments, at cost:
Balance at beginning of year	$	1,899,099		$	1,899,099	$	1,016,599
Additions - acquisitions	31,392			—		882,500
Disposals	(31,547		)	—		—
Impairment charges	(24,661		)	—		—
Reclassified to assets held for sale	(150,025		)	—		—
Balance at end of the year	$	1,724,258		$	1,899,099	$	1,899,099
Accumulated depreciation:
Balance at beginning of year	$	141,594		$	74,648	$	12,077
Depreciation expense	66,831			66,946		62,571
Disposals	(1,018		)	—		—
Reclassified to assets held for sale	(23,970		)	—		—
Balance at end of the year	$	183,437		$	141,594	$	74,648

F-52

AMERICAN FINANCE TRUST, INC.

Mortgage Loans on Real Estate

Schedule IV

December 31, 2016

(Dollar amounts in thousands)
Loan Type	Property Type	Par Value		Carrying Amount		Interest Rate	Payment Terms	Maturity Date
Senior	Student Housing — Multifamily	$	17,200	$	17,175	1M LIBOR + 4.5%	Interest Only	Nov. 2018
		$	17,200	$	17,175

F-53

EX-10.19

Exhibit 10.19

AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY

Merrill Lynch – 1300, 1350, and 1400 American Boulevard, Hopewell Township, NJ

THIS AGREEMENT (“Agreement”) is made and entered into as of the Effective Date by and between ARC DB5PROP001, LLC, a Delaware limited liability company and, its sole member, AMERICAN FINANCE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (collectively “Seller”), and CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation (“Buyer”).

In consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

1.Terms and Definitions. The terms listed below shall have the respective meaning given them as set forth adjacent to each term.

(a)“Broker” shall mean Cushman & Wakefield, acting as Seller’s agent.

(b)“Closing” shall mean the consummation of the transaction contemplated herein, which shall occur, subject to any applicable extension periods set forth in this Agreement, on the date that is twenty (20) days after the last day of the Due Diligence Period (as defined herein) unless the Buyer waives the full Due Diligence Period and elects to close earlier by providing written notice thereof to Seller. The date of Closing is sometimes hereinafter referred to as the “Closing Date.” Neither party will need to be present at Closing, it being anticipated that the parties will deliver all Closing documents and deliverables in escrow to the Escrow Agent prior to the date of Closing.

(c)“Due Diligence Period” shall mean the period beginning upon the Effective Date and extending until 11:59 PM ET on the date that is thirty (30) days thereafter or the earlier date on which Seller receives written notice of Buyer’s waiver of the Due Diligence Period.

(d)“Earnest Money” shall mean, collectively, (i) “Initial Earnest Money” in the amount of ONE MILLION and NO/100 DOLLARS ($1,000,000.00) and (ii) “Additional Earnest Money” in the amount of TWO MILLION and No/100 Dollars ($2,000,000.00). The Initial Earnest Money shall be delivered to Escrow Agent within three (3) business days after the Effective Date. The Additional Earnest Money shall be delivered to Escrow Agent within three (3) business days after the expiration of the Due Diligence Period. The Earnest Money shall be deposited by Buyer in escrow with Escrow Agent, to be applied as part payment of the Purchase Price at the time the sale is closed, or disbursed as agreed upon in accordance with the terms of this Agreement.

PSA –Merrill Lynch – 1300, 1350, and 1450 American Boulevard, Hopewell Township, NJ

(e)“Effective Date” This Agreement shall be signed by both Seller and Buyer. The date of execution and delivery of this Agreement by both Seller and Buyer shall be the “Effective Date” of this Agreement.

(f)“Escrow Agent” shall mean Chicago Title Insurance Company, whose address is 2828 Routh Street, Suite 800, Dallas, Texas; Attention: Pamela Medlin, Telephone: 214.220.1824; Telecopy: 214.965.1627; E-mail: pmedlin@fnf.com. The parties agree that the Escrow Agent shall be responsible for (i) organizing the issuance of the Title Commitment and title policy, (ii) preparation of the closing statement, and (iii) collection and disbursement of the funds.

(i) “Lease” shall mean that certain Lease Agreement, dated as of December 12, 2012, between Seller, as successor in interest to CF Hopewell Core LLC, as landlord, and Merrill Lynch, Pierce, Fenner & Smith, Incorporated, as tenant (“Tenant”), as amended.

(a)“Property” shall mean (i) that certain real property located at 1300, 1350, and 1400 American Boulevard, Hopewell Township, NJ, being more particularly described on Exhibit A attached hereto and incorporated herein (the “Real Property”) together with the buildings, facilities and other improvements located thereon (collectively, the “Improvements”); (ii) all right, title and interest of Seller in and to all air and subsurface rights appurtenant to the Real Property; (iii) all right, title and interest of Seller under the Lease and all prepaid rents and security deposits (if any) as set forth in the Lease; (iv) all right, title and interest of Seller in and to the machinery, lighting, electrical, mechanical, plumbing and heating, ventilation, air conditioning systems and furniture used in connection with the Real Property and the Improvements, and all carpeting, draperies, appliances and other fixtures and equipment attached or appurtenant to the Real Property together with all personal property (other than furniture, equipment not necessary to operate the Improvements or building systems and not permanently affixed to the Improvements or Real Property, trade fixtures and inventory) owned by Seller and located on the Real Property or on and/or in the Improvements; (v) all right, title and interest of Seller to any unpaid award, if any, for (1) any taking or condemnation of the Property or any portion thereof, or (1) any damage to the Property or the Improvements or any portion thereof; (vi) all easements, licenses, rights and appurtenances relating to any of the foregoing; and (vii) all right, title and interest of Seller in and to all plans, site plans, surveys and specifications, architectural drawings, building permits and other permits issued in connection with the construction, operation, use or occupancy of the Improvements, and any warranties, tradenames, logos (including any federal or state trademark or tradename registrations), or other identifying name or mark now used in connection with the Real Property and/or the Improvements, but expressly excluding any such property to the extent owned by Tenant.

(b) “Purchase Price” shall mean ONE HUNDRED FORTY-EIGHT MILLION and NO/100 DOLLARS ($148,000,000.00).

2

(c)Seller and Buyer’s Notice address

(i)“Buyer’s Notice Address” shall be as follows, except as same may be changed pursuant to the Notice section herein:

Capital Commercial Investments, Inc.

800 Brazos Street, Suite 660

Austin, TX 78701

Attn: Paul D. Agarwal and Robb Buchanan

Tel. No.: 512-628-2769 – Agarwal; 512-628-2788 – Buchanan

Fax No. 512-472-7056

Email: dagarwal@capitalcommercial.com

rbuchanan@capitalcommercial.com

And to:

Sneed, Vine & Perry, P.C.

900 Congress Ave., Suite 300

Austin, Texas 78701

Attn: William D. Brown

Tel No.: 512-494-3128

Fax No.: 512-476-1825

Email: bbrown@sneedvine.com

(ii)“Seller’s Notice Address” shall be as follows, except as same may be changed pursuant to the Notice section herein:

ARC DB5PROP001, LLC

c/o AR Global Investments, LLC

405 Park Avenue, 15^th Floor

New York, New York 10022

Attn: Jesse C. Galloway

Tel No.: 212-415-6500

E-mail: jgalloway@ar-global.com

With a copy to:

Ryan Reimers

AR Global Investments, LLC

7621 Little Avenue, Suite 200

Charlotte, North Carolina 28226

Tel. No.: 704-626-4403

Email: rreimers@ar-global.com

2.Purchase and Sale of the Property. Subject to the terms of this Agreement, Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Property for the Purchase Price.

3

3.Payment of Purchase Price. The Purchase Price to be paid by Buyer to Seller shall be paid by wire transfer of immediately available funds in the amount of the Purchase Price plus or minus prorations, credits and adjustments as provided in Section 4 and elsewhere in this Agreement to Escrow Agent, at the time of Closing, or as otherwise agreed to between Buyer and Seller.

4.Proration of Expenses and Payment of Costs and Recording Fees.

(a)The parties will each execute and deliver to Escrow Agent for the Closing a closing statement setting forth the Purchase Price and all closing credits, prorations, charges, costs and adjustments contemplated by this Agreement. All prorations will be calculated as of the Closing Date, based upon the latest available information, with all income and expense for the Closing Date being allocated to Buyer. Buyer will receive a credit for any rent and other amounts paid or payable by the Tenant for the period beginning with and including the Closing Date through and including the last day of the month in which Closing occurs (including any monthly estimates of common area maintenance charges, taxes, insurance or similar expenses). All other income, expense, credits and charges to Buyer and Seller will be similarly prorated as of the Closing Date. Real estate taxes and assessments, to the extent not the sole responsibility of the Tenant under the Lease and paid directly by Tenant to the applicable taxing authority, will be prorated on an accrual basis and, if actual amounts are not available, will be based upon the current valuation and latest available tax rates or assessments. All pre-paid or abated Rents or deposit amounts (including any tax or expense escrows and any security deposits) held by Seller under the Lease, if any, will be paid to Buyer in the form of a credit against the Purchase Price.

(b)No later than ninety days after the Closing Date (“Final Adjustment Date”), Seller and Buyer will make a final adjustment of any income and expense amounts for which final adjustments or prorations were not determined at Closing, if any. Any net adjustment in favor of Buyer or Seller is to be paid in cash by the other no later than thirty (30) days after such final adjustment has been made. If after Closing either party otherwise discovers any errors, or receives additional information, indicating that the prorations were inaccurate, such party will promptly notify the other and the parties will correctly re-prorate the amounts in question. No such correction will be required later than twelve (12) months after the Closing Date unless prior to such date the party seeking the correction has given a written notice to the other Party specifying the nature and basis for such correction. This Section 4(b) shall survive Closing.

(c)Seller shall pay or be charged with the following costs and expenses in connection with this transaction which costs shall be referred to as “Seller’s Closing Costs”:

(i)Broker’s commission payments (for sales commissions earned), in accordance with Section 23 of this Agreement;

(ii)Title policy premiums for any endorsements issued in connection with such policies that Seller elects to purchase to cover title issues, if any;

(iii)Transfer taxes and conveyance fees on the sale and transfer of the Property; and

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(iv)Any costs incurred in connection with the release of existing debt, including, but not limited to, prepayment penalty fees and recording fees for documents providing for the release of the applicable Property from the existing debt.

(d)Buyer shall pay or be charged with the following costs and expenses in connection with this transaction, which costs shall be referred to as “Buyer’s Closing Costs”:

(i)100% of all title policy premiums, including search costs and any endorsements issued in connection with such policies other than endorsements that Seller elects to purchase to cover title issues, if any all fees relating to the granting, executing and recording of the deed for the Property;

(ii)All costs and expenses in connection with Buyer’s financing, including appraisal, points, commitment fees and the like and costs for the filing of all documents necessary to complete such financing and related documentary stamp tax and intangibles tax and/or mortgage tax;

(iii)Buyer shall pay for the cost of its own survey, Phase 1 environmental study and due diligence investigations; and

(iv)Mansion taxes.

(e)Each party shall pay its own legal fees incidental to the negotiation, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.

(f)Seller and Buyer each shall pay one-half of all reasonable escrow fees charged by Escrow Agent.

5.Title. At Closing, Seller agrees to convey to Buyer fee simple marketable title to the Property by special warranty deed, free and clear of all liens, defects of title, conditions, easements, assessments, restrictions, and encumbrances except for Permitted Exceptions (as hereinafter defined).

6.Examination of Property. Seller and Buyer hereby agree as follows:

(a)Buyer shall order a title insurance commitment (the “Title Commitment”) from Escrow Agent and a current or updated survey for the Property (the “Survey”) promptly after the date hereof. Buyer shall have ten (10) days after receipt of the Title Commitment and the Survey, but in no event later than the expiration of the Due Diligence Period, to object to all matters shown in the Title Commitment or Survey (“Title Matters”) by delivering written notice thereof to Seller and the Escrow Agent (“Objections”). With respect to any Title Matters which Buyer fails to make an Objection prior to the expiration of the Due Diligence Period, such Title Matters shall be deemed “Permitted Exceptions”. However, Permitted Exceptions shall not include any mechanic’s lien or other monetary lien encumbering the fee interest of Seller in the Property, or any deeds of trust, mortgage, or other loan documents secured by the Property, (collectively, “Liens”). Seller shall be

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required to cure or remove all Liens (by payment, bond deposit or indemnity acceptable to Escrow Agent). Seller shall have no obligation to cure any Objections, except as aforesaid, provided Seller notifies Buyer of any Objections which Seller elects not to remove or cure within five (5) business days following receipt of Buyer’s Objections and if no such notice is given, it will be deemed that Seller has elected not to remove or cure such Objection. In the event that Seller refuses (or is deemed to have refused) to remove or cure any Objections, Buyer shall have the right to terminate this Agreement upon written notice to Seller given within five (5) business days after receipt (or deemed receipt) of Seller’s notice, upon which termination the Earnest Money shall be returned to Buyer and neither party shall have any further obligation hereunder, except as otherwise expressly set forth herein. If no such notice is given by Buyer within such five (5) business day period, then Buyer’s right of termination will be deemed waived and all such title Objections will be deemed Permitted Exceptions. If any matter not revealed in the Title Commitment is discovered by Buyer or by the Escrow Agent and is added to the Title Commitment by the Escrow Agent at or prior to Closing, Buyer shall have three (3) business days after the Buyer’s receipt of the updated, revised Title Commitment showing the new title exception, together with a legible copy of any such new matter, to provide Seller and Escrow Agent with an Objection to any such new title exception. Seller shall have two (2) business days after receipt of Buyer’s new Objection to notify Buyer as to whether Seller elects to remove or cure such new Objection and the Closing shall be adjourned until the date that is five (5) days after Seller delivers such notification to Buyer. If Seller does not elect to remove or cure such new Objection, or if Seller fails to remove or cure such Objection prior to the date of Closing (as may have been adjourned as set forth above), Buyer may terminate this Agreement, in which case the Earnest Money (less the Independent Consideration) shall be returned to Buyer and neither party shall have any further obligation hereunder, except as otherwise expressly set forth herein.

(b)Within five (5) days following the Effective Date, Seller shall provide to Buyer copies of the documents and materials pertaining to the Property as set forth on Exhibit H, (“Due Diligence Materials”), to the extent within Seller’s possession or reasonably obtainable by Seller. Additionally, during the term of this Agreement, Buyer, its agents, contractors and designees, (collectively “Buyer’s Representatives”) shall have the right, subject to the rights of Tenant, to enter the Property for the purposes of inspecting the Property, conducting soil tests, and making surveys, mechanical and structural engineering studies, inspecting construction, and conducting any other investigations and inspections as Buyer may reasonably require to assess the condition and suitability of the Property; provided, however, that such activities by or on behalf of Buyer or Buyer’s Representatives on the Property shall not damage the Property nor interfere with construction on the Property or the conduct of business by Tenant under the Lease; and provided further, however, that Buyer shall indemnify and hold Seller harmless from and against any and all claims or damages to the extent resulting from the activities of Buyer or Buyer’s Representative on the Property, and Buyer shall repair any and all damage caused, in whole or in part, by Buyer and return the Property to its condition prior to such damage, which obligation shall survive Closing or any termination of this Agreement. The foregoing indemnity shall not include any claims, demands, causes of action, losses, damages, liabilities, costs or expenses (including attorneys’ fees and disbursements) that result from (y) the mere discovery, by Buyer or Buyer’s Representatives, of any violations of laws or pre-existing conditions on the Property during Buyer’s investigations conducted pursuant to, and in accordance with, the terms of this Agreement or (z) the negligence

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or willful misconduct of Seller or any of Seller’s representatives. Seller shall reasonably cooperate with the efforts of Buyer and Buyer’s Representatives to inspect the Property and the Improvements. Notwithstanding the foregoing, Buyer shall not have the right to conduct an environmental Phase II examination without the express prior written consent of Seller. Notwithstanding anything herein to the contrary, Buyer’s environmental consultant may perform a Phase I Environmental Site Assessment on the Property. Buyer, in performing such due diligence, agrees to use commercially reasonable efforts to comply with reasonable procedures and with any and all laws, ordinances, rules, and regulations applicable to the Property and will not engage in any activities which would violate any permit, license, or Environmental Law or other regulation. During the time period in which Buyer or Buyer’s Representatives are accessing the Property, Buyer shall maintain, and shall cause Buyer’s Representatives to maintain, at Buyer's expense, a policy of comprehensive general public liability insurance with a combined single limit of not less than $2,000,000 per occurrence for bodily injury and property damage, insuring Buyer and Seller, as additional insureds, against any injuries or damages to persons or property that may result from or are related to Buyer's or Buyer’s Representative’s entry upon the Property and any investigations or other activities conducted thereon. Prior to the first entry on the Property, Buyer shall deliver, and shall cause Buyer’s Representatives to deliver, certificates of insurance to Seller confirming compliance with the foregoing insurance requirements. Upon signing this Agreement, Seller shall provide Buyer with the name of a contact person(s) for the purpose of arranging site visits. Buyer shall give Seller reasonable written notice (which in any event shall not be less than two (2) business days) before entering the Property, and Seller may have a representative present during any and all examinations, inspections and/or studies on the Property. Buyer shall have the unconditional right, for any reason or no reason, to terminate this Agreement by giving written notice thereof to Seller and the Escrow Agent prior to the expiration of the Due Diligence Period, in which event this Agreement shall become null and void, Buyer shall receive a refund of the Earnest Money less the sum of $100.00 to be paid to Seller as independent consideration (the “Independent Consideration”), and all rights, liabilities and obligations of the parties under this Agreement shall expire, except as otherwise expressly set forth herein. If no such notice of termination is given by Buyer prior to the expiration of the Due Diligence Period, Buyer’s right of termination pursuant to this Section 6(b) will be deemed waived, Buyer shall be deemed to be satisfied with condition of the Property, the Earnest Money will be deemed non-refundable (except as otherwise provided in Section 6 with respect to title objections not cured by Seller, in Section 7 with respect to a casualty loss or condemnation prior to Closing, in Section 6(c) with respect to Seller’s failure to the deliver the required Tenant Estoppel Certificate, and in Section 9(a) with respect to Seller’s default) and the parties will proceed to Closing in accordance with this Agreement.

(c)Within five (5) business days following the expiration of the Due Diligence Period, Seller shall request an estoppel certificate certified to the Buyer and Buyer’s lender (and simultaneously provide Buyer with a copy of such request) and a waiver of Tenant’s right of first refusal, if any. It shall be a condition of Closing that Seller shall have obtained an estoppel certificate from Tenant substantially in the form attached hereto as Exhibit F or, if applicable, in the Tenant’s standard approved form of estoppel certificate (the “Tenant Estoppel Certificate”) and Seller shall use good faith efforts to obtain the same. Seller shall promptly deliver to Buyer photocopies or pdf files of the executed estoppel certificate when Seller receives the same. If Seller does not provide the Tenant Estoppel Certificate at least five (5) business days prior to Closing, the Closing shall be

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adjourned to the date that is five (5) business days after the date Seller delivers the Tenant Estoppel Certificate to Buyer. If Seller fails to provide the Tenant Estoppel Certificate within thirty (30) days from the original scheduled Closing Date, then Buyer may terminate this Agreement by delivering written notice thereof to Seller, upon which termination the Earnest Money (less the Independent Consideration) shall be refunded to Buyer, and Seller and Buyer shall be released from any and all rights, obligations and liability hereunder, except those which are specifically stated herein to survive any termination hereof.

(d)Seller shall use good faith efforts to obtain estoppel certificates with respect to reciprocal easement agreements as may be reasonably requested by Buyer (the “REA Estoppels”). To the extent any such reciprocal easement agreement provides for the delivery of an estoppel certificate, Buyer’s receipt of the REA Estoppels shall be a condition precedent to Buyer’s obligation to close the purchase of the Property and the failure of the applicable third parties to deliver any applicable estoppel certificate as to a reciprocal easement agreement shall afford Buyer the right to either extend the Closing Date for up to ten (10) days to afford Seller additional time to deliver the REA Estoppels to Buyer, or Buyer may terminate this Agreement by delivering written notice thereof to Seller no later than Closing Date, upon which termination the Earnest Money (less the Independent Consideration) shall be refunded to Buyer, and Seller and Buyer shall be released from any and all rights, obligations and liability hereunder, except those which are specifically stated herein to survive any termination hereof.

7.Risk of Loss/Condemnation. Upon an occurrence of a casualty, condemnation or taking, Seller shall notify Buyer in writing of same. Until Closing, the risk of loss or damage to the Property, except solely as to loss or damage caused by Buyer or Buyer’s Representatives during the Due Diligence Period, shall be borne by Seller. In the event all or any portion of the Property is damaged in any casualty or condemned or taken (or notice of any condemnation or taking is issued) so that: (a) Tenant has a right of termination or abatement of rent under the Lease, or (b) with respect to any casualty, if the cost to repair such casualty would exceed $1,000,000, or (c) with respect to any condemnation, any Improvements (including any portion of the parking lots located on the Real Property) or access to the Property or more than ten percent (15%) of the Property is (or will be) condemned or taken, then, Buyer may elect to terminate this Agreement by providing written notice of such termination to Seller within ten (10) business days after Buyer’s receipt of notice of such condemnation, taking or damage, upon which termination the Earnest Money (less the Independent Consideration) shall be returned to the Buyer and neither party hereto shall have any further rights, obligations or liabilities under this Agreement, except as otherwise expressly set forth herein. With respect to any condemnation or taking (of any notice thereof), if Buyer does not elect to cancel this Agreement as aforesaid, there shall be no abatement of the Purchase Price and Seller shall assign to Buyer at the Closing the rights of Seller to the awards, if any, for the condemnation or taking, and Buyer shall be entitled to receive and keep all such awards. With respect to a casualty, if Buyer does not elect to terminate this Agreement or does not have the right to terminate this Agreement as aforesaid, there shall be no abatement of the Purchase Price and Seller shall assign to Buyer at the Closing the rights of Seller to the proceeds under Seller’s insurance policies covering the Property with respect to such damage or destruction (or pay to Buyer any such proceeds received prior to Closing), together with all of Seller’s rights to fully adjust and settle the

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insurance claim and pay to Buyer the amount of any deductible with respect thereto, and Buyer shall be entitled to receive and keep any monies received from such insurance policies.

8.Earnest Money Disbursement. The Earnest Money shall be held by Escrow Agent, in trust, and disposed of only in accordance with the following provisions:

(a)If the Closing occurs, Escrow Agent shall deliver the Earnest Money to, or upon the instructions of, Seller and Buyer on the Closing Date to be applied as part payment of the Purchase Price. If for any reason the Closing does not occur, Escrow Agent shall deliver the Earnest Money to Seller or Buyer only upon receipt of a written demand therefor from such party, subject to the following provisions of this clause (a). Subject to the last sentence of this clause (a), if for any reason the Closing does not occur and either party makes a written demand (the “Demand”) upon Escrow Agent for payment of the Earnest Money, Escrow Agent shall give written notice to the other party of the Demand within one business day after receipt of the Demand. If Escrow Agent does not receive a written objection from the other party to the proposed payment within five (5) business days after the giving of such notice by Escrow Agent, Escrow Agent is hereby authorized to make the payment set forth in the Demand. If Escrow Agent does receive such written objection within such period, Escrow Agent shall continue to hold such amount until otherwise directed by written instructions signed by Seller and Buyer or a final judgment of a court. Notwithstanding the foregoing provisions of this clause (a) if Buyer delivers a notice to Escrow Agent and Seller stating that Buyer has terminated this Agreement on or prior to the expiration of the Due Diligence Period, then Escrow Agent shall immediately return the Earnest Money to Buyer without the necessity of delivering any notice to, or receiving any notice from Seller.

(b)The parties acknowledge that Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that Escrow Agent shall not be deemed to be the agent of either of the parties, and that Escrow Agent shall not be liable to either of the parties for any action or omission on its part taken or made in good faith, and not in disregard of this Agreement, but shall be liable for its negligent acts and for any liabilities (including reasonable attorneys’ fees, expenses and disbursements) incurred by Seller or Buyer resulting from Escrow Agent’s mistake of law respecting Escrow Agent scope or nature of its duties. Seller and Buyer shall jointly and severally indemnify and hold Escrow Agent harmless from and against all liabilities (including reasonable attorneys’ fees, expenses and disbursements) incurred in connection with the performance of Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or made by Escrow Agent in bad faith, in disregard of this Agreement or involving negligence on the part of Escrow Agent. Escrow Agent has executed this Agreement in the place indicated on the signature page hereof in order to confirm that Escrow Agent shall hold the Earnest Money in escrow and shall disburse the Earnest Money pursuant to the provisions of this Section 8.

9.Default

(a)In the event that Seller is ready, willing and able to close in accordance with the terms and provisions hereof, and Buyer defaults in any of its obligations undertaken in this Agreement, then subject to the notice and cure rights set forth below, Seller shall be entitled to, as its sole and exclusive remedy to either: (i) waive such default and proceed to Closing in accordance with the terms and provisions hereof; or (ii) declare this Agreement to be terminated, and Seller

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shall be entitled to immediately receive all of the Earnest Money as liquidated damages as and for Seller’s sole remedy. Upon such termination, neither Buyer nor Seller shall have any further rights, obligations or liabilities hereunder, except as otherwise expressly provided herein. Seller and Buyer agree that (x) actual damages due to Buyer’s default hereunder would be difficult and inconvenient to ascertain and that such amount is not a penalty and is fair and reasonable in light of all relevant circumstances, (y) the amount specified as liquidated damages is not disproportionate to the damages that would be suffered and the costs that would be incurred by Seller as a result of having withdrawn the Property from the market, and (z) Buyer desires to limit its liability under this Agreement to the amount of the Earnest Money paid in the event Buyer fails to complete Closing. Seller hereby waives any right to recover the balance of the Purchase Price, or any part thereof, and the right to pursue any other remedy permitted at law or in equity against Buyer. Nothing contained herein shall limit or restrict Seller's ability to pursue any rights or remedies it may have against Buyer with respect to Buyer’s obligations in Section 23, Section 29 and the specific indemnification obligations described in Section 6(b) resulting from Buyer or Buyer’s Representatives’ due diligence investigations conducted on the Property, all of which expressly survive the termination of this Agreement as provided herein. In no event under this Section or otherwise shall Buyer be liable to Seller for any punitive, speculative or consequential damages. Notwithstanding the foregoing, if Buyer is in default of any of its obligations, covenants or agreements contained in this Agreement, Seller agrees to give Buyer written notice specifically setting forth such default, and Buyer shall have three (3) business days to cure such default prior to Seller having the right exercise the remedies set forth above; provided, however, in no event shall such cure period extend beyond the Closing Date and there shall be no notice required or cure period allowed if such default relates to any covenant or agreement to be performed by Buyer at the Closing.

(b)In the event that Buyer is ready, willing and able to close in accordance with the terms and provisions hereof, and Seller defaults in the obligations herein taken by Seller with respect to the Property, then subject to the notice and cure rights set forth below, Buyer may, as its sole and exclusive remedy, either: (i) waive any unsatisfied conditions and proceed to Closing in accordance with the terms and provisions hereof; (ii) terminate this Agreement by delivering written notice thereof to Seller no later than Closing, upon which termination the Earnest Money shall be refunded to Buyer and Seller shall reimburse Buyer for Buyer’s actual, out-of-pocket expenses incurred in connection with this transaction, in an amount not to exceed $25,000.00, which return and payment shall operate as liquidated damages, and to terminate this Agreement and release Seller and Buyer from any and all rights, obligations and liability hereunder, except those which are specifically stated herein to survive any termination hereof; (iii) by notice to Seller given on or before the Closing Date, extend the Closing Date for a period of up to thirty (30) days (the “Closing Extension Period”) to permit Seller to remedy such default, and the “Closing Date” shall be moved to the last day of the Closing Extension Period, or (iv) file an action for specific performance of this Agreement, provided however, any such action for specific performance must be filed within thirty (30) days of Seller’s default. If specific performance is unavailable to Buyer due to Seller’s willful or fraudulent act of transferring title to a third party, then in addition to the foregoing remedies, Buyer shall have the right to pursue a claim for damages. If Buyer so extends the Closing Date, then Seller may, but shall not be obligated to, cause said conditions to be satisfied during the Closing Extension Period. If Seller does not cause said conditions to be satisfied during the Closing Extension Period, then Buyer shall have the remedies set forth in Section 9(b) (i) through (iv) above except

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that the term “Closing” shall read “Extended Closing”. In no event under this Section or otherwise shall Seller be liable to Buyer for any punitive, speculative or consequential damages. Notwithstanding the foregoing, if Seller is in default of any of its obligations, covenants or agreements contained in this Agreement, Buyer agrees to give Seller written notice specifically setting forth such default, and Seller shall have three (3) business days to cure such default prior to Buyer having the right exercise the remedies set forth above; provided, however, in no event shall such cure period extend beyond the Closing Date and there shall be no notice required or cure period allowed if such default relates to any covenant or agreement to be performed by Seller at the Closing.

10.Closing. The Closing shall consist of the execution and delivery of documents by Seller and Buyer, as set forth below, and delivery by Buyer to Seller of the Purchase Price in accordance with the terms of this Agreement. Seller shall deliver to Escrow Agent for the benefit of Buyer at Closing the following executed documents:

(a)A Special Warranty Deed in the form attached hereto as Exhibit B;

(b)An Assignment and Assumption of Lease, in the form attached hereto as Exhibit C;

(c)A Bill of Sale for the personal property, if any, in the form attached hereto as Exhibit D;

(d)An Assignment of Contracts, Permits, Licenses and Warranties in the form of Exhibit E;

(e)A settlement statement setting forth the Purchase Price, all prorations and other adjustments to be made pursuant to the terms hereof, and the funds required for Closing as contemplated hereunder;

(f)All transfer tax statements, declarations, affidavits of consideration, and filings as may be necessary or appropriate for purposes of recordation of the deed;

(g)A certificate pursuant to Section 1445 of the Internal Revenue Code of 1986, as amended, or the regulations issued pursuant thereto, certifying the non-foreign status of Seller;

(h)Letter to Tenant in form of Exhibit G attached hereto; and

(i)Such other instruments as are reasonably required by Escrow Agent to close the escrow and consummate the purchase of the Property in accordance with the terms hereof.

At Closing, Buyer shall instruct Escrow Agent to deliver the Earnest Money to Seller which shall be applied to the Purchase Price, shall deliver the balance of the Purchase Price to Seller and shall execute and deliver execution counterparts, as applicable, of the closing documents referenced above. The Closing shall be held through the mail by delivery of the closing documents to the Escrow Agent on or prior to the Closing or such other place or manner as the parties hereto may mutually agree. Buyer shall have the right to advance the Closing upon ten (10) days prior written notice to Seller; provided that all conditions precedent to both Buyer’s and Seller’s respective

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obligations to proceed with Closing under this Agreement have been satisfied (or, if there are conditions to a party’s obligation to proceed with Closing that remain unsatisfied, such conditions have been waived by such party). Buyer shall have a one-time option to extend the Closing Date by up to thirty (30) days by delivering to Escrow Agent an additional ONE MILLION and NO/100 DOLLARS ($1,000,000.00) (“Extension Earnest Money”), provided Buyer provides Seller with notice of such extension five (5) days prior to the previously scheduled Closing Date. The Extension Earnest Money shall become part the Earnest Money and shall be deemed non-refundable except as otherwise set forth in this Agreement. The Closing shall be held through the mail by delivery of the closing documents to the Escrow Agent on or prior to the Closing or such other place or manner as the parties hereto may mutually agree.

11.Representations by Seller. For the purpose of inducing Buyer to enter into this Agreement and to consummate the sale and purchase of the Property in accordance herewith, Seller makes the following representations and warranties to Buyer as of the date hereof and as of the Closing Date:

(a)Seller is duly organized (or formed), validly existing and in good standing under the laws of its state of organization, and to the extent required by law, the state in which the Property is located. Seller has the power and authority to execute and deliver this Agreement and all closing documents to be executed by Seller, and to perform all of Seller’s obligations hereunder and thereunder. Neither the execution and delivery of this Agreement and all closing documents to be executed by Seller, nor the performance of the obligations of Seller hereunder or thereunder will result in the violation of any law or any provision of the organizational documents of Seller or will conflict with any order or decree of any court or governmental instrumentality of any nature by which Seller is bound;

(b)Except for any tax appeals and/or contests initiated by Seller and/or Tenant, if any, Seller has not received any written notice of any current or pending litigation, condemnation proceeding or tax appeals affecting Seller or the Property and Seller does not have any knowledge of any threatened litigation, condemnation proceeding or tax appeals against Seller or the Property;

(c)Seller has not entered into any contracts, subcontracts or agreements affecting the Property which will be binding upon Buyer after the Closing other than the Lease;

(d)Except for violations cured or remedied on or before the date hereof, Seller has not received any written notice from (or delivered any notice to) any governmental authority regarding any violation of any law applicable to the Property (which has not been cured) and Seller has no knowledge of any such violation;

(e)Seller has fee simple title to the Property, and as of the Closing, such title will be free and clear of all liens and encumbrances except for Permitted Exceptions and Seller is the sole owner of the entire lessor’s interest in the Lease. The Property constitutes one or more separate tax parcels for purposes of ad valorem taxation;

(f)With respect to the Lease: (i) the Lease forwarded to Buyer under Section 6(b)(i) is a true, correct and complete copy of the Lease; (ii) the Lease is in full force and effect and

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there is no default by landlord under the Lease or any pending dispute between the landlord and Tenant thereunder; (iii) no brokerage or leasing commissions or other compensation is or will be due or payable to any person, firm, corporation or other entity with respect to or on account of the current term of the Lease or any extension or renewal thereof; (iv) Seller has no outstanding obligation to provide Tenant with an allowance to construct, or to construct at its own expense, any tenant improvements.

(g)There are no occupancy rights, leases or tenancies affecting the Property other than the Lease. Neither this Agreement nor the consummation of the transactions contemplated hereby is subject to any first right of refusal or other purchase right in favor of any other person or entity; and apart from this Agreement, Seller has not entered into any written agreements for the purchase or sale of the Property, or any interest therein which has not been terminated;

(h)To Seller’s knowledge, except as set forth in the environmental reports previously delivered by Seller to Buyer, no hazardous substances have been generated, stored, released, or disposed of on or about the Property by Seller in violation of any law, rule or regulation applicable to the Property which regulates or controls matters relating to the environment or public health or safety (collectively, “Environmental Laws”). For purposes of this Subsection, “hazardous substances” shall mean any substance or material which is defined or deemed to be hazardous or toxic pursuant to any Environmental Laws; and

As used in this Agreement, the words “Seller's knowledge” or words of similar import shall be deemed to mean, and shall be limited to, the actual (as distinguished from implied, imputed or constructive) knowledge of Akomea Poku-Kankam, without any duty of inquiry or investigation, and shall not be construed to refer to the knowledge of any other officer, agent or employee of Seller or any affiliate thereof. Seller represents to Buyer that Akomea Poku-Kankam is the Seller’s representative that has the most knowledge about the ownership, operation and management of the Property. To the extent Buyer discovers prior to the Closing or acquires actual knowledge of any inaccuracy in a representation and warranty of Seller in this Agreement and the Closing occurs, such representation and warranty shall be deemed modified to reflect the inaccuracy discovered by Buyer. Seller’s representations and warranties set forth in this Agreement shall survive the Closing for a period of six (6) months and any action brought on Seller’s representations and warranties shall be commenced within said six (6) month period or shall be forever barred and waived. In no event shall Buyer be entitled to make a claim for breach of such representations or warranties and Seller shall have no liability in connection therewith (i) unless and until the aggregate amount of all such claims exceeds $50,000.00 or (ii) for any amount in excess of $500,000.00 in the aggregate.

12.Representationsby Buyer. Buyer represents and warrants to, and covenants with, Seller as of the date hereof and as of the Closing Date as follows:

(a)Buyer is duly formed, validly existing and in good standing under the laws of its state of organization, and on the Closing Date, to the extent required by law, the State in which the Property is located is authorized to consummate the transaction set forth herein and fulfill all of its obligations hereunder and under all closing documents to be executed by Buyer, and has all necessary power and authority to execute and deliver this Agreement and all closing documents to be executed by Buyer, and to perform all of Buyer’s obligations hereunder and thereunder.

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(b)This Agreement and all closing documents to be executed by Buyer have been duly authorized by all requisite corporate or other required action on the part of Buyer and are the valid and legally binding obligation of Buyer, enforceable in accordance with their respective terms.

(c)Neither the execution and delivery of this Agreement and all closing documents to be executed by Buyer, nor the performance of the obligations of Buyer hereunder or thereunder will result in the violation of any law or any provision of the organizational documents of Buyer or will conflict with any order or decree of any court or governmental instrumentality of any nature by which Buyer is bound.

The representations and warranties of Buyer shall survive Closing for a period of six (6) months.

13.Conditions Precedent to Buyer’s Obligations. Buyer’s obligation to pay the Purchase Price, and to accept title to the Property, shall be subject to the following conditions precedent on and as of the date of Closing:

(a)Seller shall deliver to Escrow Agent on or before the Closing the items set forth in Section 10 above;

(b)The representations and warranties of Seller contained in this Agreement shall have been true when made and shall be true in all material respects at and as of the date of Closing as if such representations and warranties were made at and as of the Closing, and Seller shall have performed and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed or complied with by Seller prior to or at the Closing; and

(c)Seller shall have delivered to Buyer a written waiver by any party of any right of first refusal, right of first offer or other purchase option that Tenant or any other such party has pursuant to the Lease or otherwise to purchase the Property from Seller, if any.

In the event that the foregoing conditions precedent have not been satisfied as of Closing, Buyer shall have the rights and remedies set forth in Section 9(b) of this Agreement.

14.Conditions Precedent to Seller’s Obligations. Seller’s obligation to deliver title to the Property shall be subject to compliance by Buyer with the following conditions precedent on and as of the date of Closing:

(a)Buyer shall deliver to Escrow Agent on the Closing Date the remainder of the Purchase Price, subject to adjustment of such amount pursuant to Section 4 hereof and all applicable documents to be delivered by Buyer in accordance with Section 10 above;

(b)The representations and warranties of Buyer contained in this Agreement shall have been true when made and shall be true in all material respects at and as of the date of Closing as if such representations and warranties were made at and as of the Closing, and Buyer

14

shall have performed and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed or complied with by Buyer prior to or at the Closing; and

15.Notices. Unless otherwise provided herein, all notices and other communications which may be or are required to be given or made by any party to the other in connection herewith shall be in writing and shall be deemed to have been properly given and received on the date: (i) delivered by facsimile transmission or by electronic mail (e.g. email), (ii) delivered in person, (iii) upon the dated tendered for delivery to the recipient if deposited in the United States mail, registered or certified, return receipt requested, or (iv) on the next business day following delivery to a nationally recognized overnight courier for next business day delivery, to the addresses set out in Section 1, or at such other addresses as specified by written notice delivered in accordance herewith. Notwithstanding the foregoing, Seller and Buyer agree that notice may be given on behalf of each party by the counsel for each party and notice by such counsel in accordance with this Section 15 shall constitute notice under this Agreement.

16.Seller Covenants. Seller agrees that it: (a) shall, to the extent of its obligations under the Lease, continue to operate and manage the Property in the same manner in which Seller has previously operated and managed the Property; (b) shall, to the extent of its obligations under the Lease, subject to Section 7 hereof and subject to reasonable wear and tear, maintain the Property in the same (or better) condition as exists on the date hereof; and (c) shall not, except as may be required by the terms of the Lease, without Buyer’s prior written consent; (i) amend the Lease in any manner, nor enter into any new lease, license agreement or other occupancy agreement with respect to the Property; (ii) consent to an assignment of the Lease or a sublease of the premises demised thereunder or a termination or surrender thereof; (iii) terminate the Lease nor release any guarantor of or security for the Lease, if any; and/or (iv) cause, permit or consent to an alteration of the premises demised thereunder (unless such consent is non-discretionary).

17.Performance on Business Days. A "business day" is a day which is not a Saturday, Sunday or legal holiday recognized by the Federal Government. Furthermore, if any date upon which or by which action is required under this Agreement is not a business day, then the date for such action shall be extended to the first day that is after such date and is a business day. When calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded. If the last day of such period is a non-business day, the period in question shall end on the next succeeding business day.

18.Entire Agreement. This Agreement constitutes the sole and entire agreement among the parties hereto and no modification of this Agreement shall be binding unless in writing and signed by all parties hereto. No prior agreement or understanding pertaining to the subject matter hereof (including, without limitation, any letter of intent executed prior to this Agreement) shall be valid or of any force or effect from and after the date hereof.

19.Severability. If any provision of this Agreement, or the application thereof to any person or circumstance, shall be invalid or unenforceable, at any time or to any extent, then the remainder of this Agreement, or the application of such provision to persons or circumstances other

15

than those as to which it is invalid or unenforceable, shall not be affected thereby. Each provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

20.No Representations or Warranties/    As is Release.

(a)Buyer hereby acknowledges, understands and agrees that it has an opportunity to inspect the Property as set forth in Section 6 herein, and except as set forth in this Agreement, including specifically, but without limitation, Section 11 of this Agreement, and Seller’s special warranty of title contained in the Deed, the Property shall be conveyed at Closing to Buyer in “as-is” condition with no representation or warranties whatsoever.

(b)Buyer acknowledges and agrees that the Property shall be sold, and Buyer shall accept possession of the Property on the Closing Date “AS IS – WHERE IS, WITH ALL FAULTS,” with no right of setoff or reduction in the Purchase Price, and Buyer shall assume the risk that adverse physical, environmental, economic or legal conditions may not have been revealed by Buyer's investigations. Except as expressly set forth in Section 11 and in the documents delivered at Closing as described in Section 10, neither Seller, its employees, representatives, agents, counsel, broker, sales agent, nor any partner, member, officer, director, employee, trustee, shareholder, principal, parent, subsidiary, affiliate, agent or attorney of Seller, its counsel, broker or sales agent, nor any other party related in any way to any of the foregoing (collectively, “Seller's Representatives”) have or shall be deemed to have made any representations or warranties, express or implied, regarding the Property or any matters affecting the Property, including without limitation the physical condition of the Property, title to or boundaries of the Property, pest control, soil conditions, the presence or absence, location or scope of any hazardous materials in, at, or under the Property, compliance with building, health, safety, land use or zoning Laws, other engineering characteristics, traffic patterns and all other information pertaining to the Property. Buyer moreover acknowledges (i) that Buyer is a sophisticated buyer, knowledgeable and experienced in the financial and business risks attendant to an investment in real property and capable of evaluating the merits and risks of entering into this Agreement and purchasing the Property, (ii) that Buyer has entered into this Agreement in reliance on its own (or its experts') investigation of the physical, environmental, economic and legal condition of the Property, and (iii) that Buyer is not relying upon any representation or warranty concerning the Property made by Seller or Seller’s Representatives other than as expressly set forth in Section 11 and in the documents delivered at Closing as described in Section 10. Seller shall not have any liability of any kind or nature for any subsequently discovered defects in the Property, whether the defects were latent or patent.

(c)Buyer acknowledges that prior to the Closing, Buyer was afforded the opportunity for full and complete investigations, examinations and inspections of the Property. Buyer acknowledges and agrees that (i) all information and documents in any way relating to the Property furnished to, or otherwise made available for review by Buyer (the “Property Information”) may have been prepared by third parties and may not be the work product of Seller and/or Seller's Representatives; (ii) neither Seller nor any of Seller's Representatives has made any independent investigation or verification of, or has any knowledge of, the accuracy or completeness of, the Property Information; and (iii) Buyer is relying solely on its own investigations, examinations

16

and inspections of the Property and is not relying in any way on the Property Information furnished by Seller or any of Seller's Representatives.

(d)Buyer or anyone claiming by, through or under Buyer hereby fully and irrevocably releases Seller and Seller's Representatives from any and all claims that it may now have or hereafter acquire against Seller or Seller's Representatives for any cost, loss, liability, damage, expense, action or cause of action, whether foreseen or unforeseen, arising from or related to any structural, engineering or environmental condition at the Property, including without limitation the presence or absence, location or scope of any hazardous materials in, at, or under the Property (whether patent, latent or otherwise) as of the date of Closing. Buyer further acknowledges and agrees that this release shall be given full force and effect according to each of its expressed terms and provisions, including but not limited to those relating to unknown and suspected claims, damages and causes of action.

21.Applicable Law. This Agreement shall be construed under the laws of the State or Commonwealth in which the Property is located, without giving effect to any state's conflict of laws principles.

SELLER AND BUYER HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY RIGHT EACH MAY HAVE TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER ARISING IN TORT OR CONTRACT) BROUGHT BY EITHER AGAINST THE OTHER ON ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED AND DELIVERED BY A PARTY IN CONNECTION HEREWITH (INCLUDING ANY ACTION TO RESCIND OR CANCEL THIS AGREEMENT WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE).

22.Tax-Deferred Exchange. Buyer and Seller respectively acknowledge that the purchase and sale of the Property contemplated hereby may be part of a separate exchange (an “Exchange”) being made by each party pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated with respect thereto. In the event that either party (the “Exchanging Party”) desires to effectuate such an exchange, then the other party (the “Non-Exchanging Party”) agrees to cooperate fully with the Exchanging Party in order that the Exchanging Party may effectuate such an exchange; provided, however, that with respect to such Exchange (a) all additional costs, fees and expenses related thereto shall be the sole responsibility of, and borne by, the Exchanging Party; (b) the Non-Exchanging Party shall incur no additional liability as a result of such exchange; (c) the contemplated exchange shall not delay any of the time periods or other obligations of the Exchanging Party hereby, and without limiting the foregoing, the scheduled date for Closing shall not be delayed or adversely affected by reason of the Exchange; (d) the accomplishment of the Exchange shall not be a condition precedent or condition subsequent to the Exchanging Party's obligations under the Agreement; and (e) the Non-Exchanging Party shall not be required to hold title to any land other than the Property for purposes of the Exchange. The Exchanging Party agrees to defend, indemnify and hold the Non-Exchanging Party harmless from any and all liability, damage or cost, including, without limitation, reasonable attorney's fees that

17

may result from Non-Exchanging Party's cooperation with the Exchange. The Non-Exchanging Party shall not, by reason of the Exchange, (i) have its rights under this Agreement, including, without limitation, any representations, warranties and covenants made by the Exchanging Party in this Agreement (including but not limited to any warranties of title, which, if Seller is the Exchanging Party, shall remain warranties of Seller), or in any of the closing documents (including but not limited to any warranties of title, which, if Seller is the Exchanging Party, shall remain warranties of Seller) contemplated hereby, adversely affected or diminished in any manner, or (ii) be responsible for compliance with or deemed to have warranted to the Exchanging Party that the Exchange complies with Section 1031 of the Code.

23.Broker’s Commissions. Buyer and Seller each hereby represent that, except for the Broker listed herein, there are no other brokers involved or that have a right to proceeds in this transaction. Seller shall be responsible for payment of commissions to the Broker pursuant to a separate written agreement executed by Seller. Seller and Buyer each hereby agree to indemnify and hold the other harmless from all loss, cost, damage or expense (including reasonable attorneys' fees at both trial and appellate levels) incurred by the other as a result of any claim arising out of the acts of the indemnifying party (or others on its behalf) for a commission, finder's fee or similar compensation made by any broker, finder or any party who claims to have dealt with such party (except that Buyer shall have no obligations hereunder with respect to any claim by Broker). The representations, warranties and indemnity obligations contained in this section shall survive the Closing or the earlier termination of this Agreement.

24.Assignment. This Agreement may be not assigned by Buyer, and any assignment or attempted assignment by Buyer shall constitute a default by Buyer hereunder and shall be null and void, provided, however, Buyer may assign this Agreement to a newly formed special purpose entity (either a limited liability company or limited partnership) where an affiliate of Buyer who is either controlled by or under common control with Buyer or Paul D. Agarwal (the sole shareholder of Buyer) serves as a manager, managing member or general partner of the assignee, without Seller’s consent, provided further that Buyer shall remain primarily obligated hereunder notwithstanding such assignment.

25.Attorneys’ Fees. In any action between Buyer and Seller as a result of failure to perform or a default under this Agreement, the prevailing party shall be entitled to recover from the other party, and the other party shall pay to the prevailing party, the prevailing party’s attorneys’ fees and disbursements and court costs incurred in such action.

26.Time of the Essence. Time is of the essence with respect to each of Buyer’s and Seller’s obligations hereunder.

27.Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become a binding agreement when one or more counterparts have been signed by each of the parties and delivered to the other party. Signatures on this Agreement which are transmitted by electronically shall be valid for all purposes, however any party shall deliver an original signature on this Agreement to the other party upon request.

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28.Anti-Terrorism. Neither Buyer or Seller, nor any of their affiliates, are in violation of any Anti-Terrorism Law (as hereinafter defined) or engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. “Anti-Terrorism Laws” shall mean any laws relating to terrorism or money laundering, including: Executive Order No. 13224; the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or may hereafter be, renewed, extended, amended or replaced; the applicable laws comprising or implementing the Bank Secrecy Act; and the applicable laws administered by the United States Treasury Department’s Office of Foreign Asset Control (as any of the foregoing may from time to time be amended, renewed, extended, or replaced).

1.Confidentiality.

(a)Buyer agrees that neither it nor Buyer’s Representatives shall at any time or in any manner, either directly or indirectly, divulge, disclose or communicate to any person, entity or association any knowledge or information acquired by Buyer or Buyer’s Representatives from Seller or by Buyer’s own inspections and investigations, other than matters that were in the public domain at the time of receipt by Buyer, provided that Buyer may disclose such terms of this Agreement and its reports, studies, documents and other matters generated by it as Buyer deems necessary or desirable to Buyer’s attorneys, accountants, financial advisors, investors and lenders, in connection with Buyer’s investigation of the Property and/or purchase of the Property, provided that the parties to whom such information is disclosed are informed of the confidential nature thereof and agree to keep the same confidential in accordance with this Agreement.

(b)Buyer acknowledges that damages alone may be an inadequate remedy for any breach by it or Buyer’s Representatives of the terms of this Section 29 and agrees that, in addition to any other remedies that Seller may have, Seller shall be entitled to injunctive relief in any court of competent jurisdiction against any breach of this Section 29.

[SIGNATURES APPEAR ON THE FOLLOWING PAGES]

19

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

SELLER: ARC DB5PROP001, LLC, a Delaware limited liability company By: American Finance Operating Partnership, L.P., a Delaware limited partnership, its sole member By: American Finance Trust, Inc., a Maryland Corporation, its general partner By: /s/ Jesse C. Galloway   Name: Jesse C. Galloway   Title: Authorized Signatory   Date: October 11, 2016 BUYER: CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation By: /s/ Paul D. Agarwal   Name: Paul D. Agarwal   Title: President   Date: October 11, 2016

AMERICAN FINANCE OPERATING

PARTNERSHIP, L.P., a Delaware limited

partnership

By: American Finance Trust, Inc.,

a Maryland Corporation, its general partner

By: /s/ Jesse C. GallowayName: Jesse C. GallowayTitle: Authorized SignatoryDate: October 11, 2016

[SIGNATURE PAGE TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY]

THE UNDERSIGNED HEREBY ACKNOWLEDGES AND AGREES TO BE BOUND BY THE TERMS OF THIS AGREEMENT RELATING TO ESCROW AGENT AND THE EARNEST MONEY.

ESCROW AGENT:

CHICAGO TITLE INSURANCE COMPANY

By:     /s/ Pamela Medlin            

Name:    Pamela Medlin            

Title:     Escrow Office                

Date:     October 12, 2016            

21

EXHIBITS

Exhibit A    -    Legal Description of Real Property

Exhibit B    -    Form of Special Warranty Deed

Exhibit C    -    Form of Assignment and Assumption of Lease

Exhibit D    -    Form of Bill of Sale

Exhibit E    -    Form of Assignment of Contracts, Permits, Licenses and Warranties

Exhibit F    -    Form of Tenant Estoppel Certificate

Exhibit G    -    Form of Tenant Notice

Exhibit H    -    Due Diligence Materials

EXHIBIT A

LEGAL DESCRIPTION OF REAL PROPERTY

All that certain plot, piece or parcel of land, with the building and improvements thereon erected, situate, lying and being in the Township of Hopewell, County of Mercer, State of New Jersey, bounded and described as follows:

All lots 3.03 and 3.04 in Block 91, as shown on titled "Scotch Road Office park North Campus Final Subdivision of Lots 1.03, 2 and 3 in Block 91" file April 7, 1999 in the Mercer County Clerk's Office as Filed Map No. 3385 A, B and C.

Together with the benefit of a Perpetual, non exclusive rights and easement of access and utility, drainage and ground water system facilities as set forth in Corrected Easement Agreement recorded February 21, 2008 in Book 5809 page 119, and the benefit of, non exclusive rights and easement of use in and to the Common Areas and Facilities as set forth in Corrected Amended and Restated Declaration and Covenants, easements, Restrictions of South field Office Park recorded February 21, 2008 in Book 5810 page 1, and Perpetual, non exclusive rights and easement of access and parking and common space as set forth in Reciprocal Easement Agreement Hopewell Campus recorded December 19, 2012 in Book 6161 page 1226.

A-1

EXHIBIT B

FORM OF SPECIAL WARRANTY DEED[Subject to Local Counsel Review]

This document prepared by:
(and return to :)

___________________________
___________________________
___________________________
___________________________

Tax Parcel No. ______________________________

SPECIAL WARRANTY DEED

THIS INDENTURE, made on the _____ day of ______________, 2016, by and between ARC DB5PROP001, LLC, a Delaware limited liability company ("Grantor"), and ________________________________________, a ______________, whose address is ________________________________ ("Grantee")

W I T N E S S E T H:

THAT Grantor, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, does by these presents, sell and convey unto the said Grantee, its successors and assigns, the lots, tracts or parcels of land lying, being and situated in the County of Mercer, State of New Jersey, and more fully described on Exhibit "A" attached hereto and incorporated herein by reference, together with all buildings, facilities and other improvements, located thereon.

SUBJECT TO any taxes and assessments not yet due and payable, easements, covenants and restrictions of record, legal highways, and any matters which would be disclosed by a current survey of the Property.

TO HAVE AND TO HOLD the premises aforesaid with all and singular, the rights, easements, privileges, appurtenances and immunities thereto belonging or in any wise appertaining unto the said Grantee and unto Grantee's successors and assigns forever, the said Grantor hereby covenanting that Grantor will warrant and defend the title to said premises unto the said Grantee and unto Grantee's successors and assigns, against the lawful claims and demands of all persons claiming under or through Grantor, but not otherwise.

B-1

IN WITNESS WHEREOF, Grantor has executed this Special Warranty Deed the day and year first above written.

GRANTOR:

ARC DB5PROP001, LLC, a Delaware limited liability company

By:                         Name:                        Its:

[ACKNOWLEDGMENT]

B-2

EXHIBIT C

FORM OF
ASSIGNMENT AND ASSUMPTION OF LEASE

ARC DB5PROP001, LLC, a Delaware limited liability company ("Assignor"), in consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid and other good and valuable consideration, the receipt of which is hereby acknowledged, hereby assigns, transfers, sets over and conveys to ______________________________ ("Assignee"), all of Assignor's right, title and interest in and to that certain Lease dated December 12, 2012, between Assignor, as successor in interest to CF Hopewell Core LLC, as landlord, and Merrill Lynch, Pierce, Fenner & Smith, Incorporated, as tenant (as amended from time to time, the “Lease”), including any and all security deposits under the Lease, if any.

Subject to the limitations set forth below, Assignor does hereby agree to defend, indemnify and hold harmless Assignee from any liability, damages (excluding speculative damages, consequential damages and lost profits), causes of action, expenses and reasonable attorneys' fees incurred by Assignee by reason of the failure of Assignor to have fulfilled, performed and discharged all of the various commitments, obligations and liabilities of the lessor, or landlord under and by virtue of the Lease prior to the date of this Assignment. Subject to the limitations set forth below, Assignee does hereby agree to defend, indemnify and hold harmless Assignor from any liability, damages (excluding speculative damages, consequential damages and lost profits), causes of action, expenses and reasonable attorneys' fees incurred by Assignor by reason of the failure of Assignee to have fulfilled, performed and discharged all of the various commitments, obligations and liabilities of the lessor or landlord under and by virtue of the Lease on and after the date of this Assignment.

By executing this assignment, Assignee hereby accepts the assignment of and assumes Assignor’s obligations and liabilities set forth in the Lease from and after the date hereof.

IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment this ______ day of ______________, 2016, which Assignment is effective this date. This Assignment may be executed in counterparts, which when taken together shall be deemed one agreement.

ASSIGNOR:        ASSIGNEE:

ARC DB5PROP001, LLC,

a Delaware limited liability company        

By:     By:_________________________________

Name:     Name:

Title:     Title:

C-1

EXHIBIT D

FORM OF BILL OF SALE

For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, ARC DB5PROP001, LLC, a Delaware limited liability company, having an address at c/o AR Global Investments, LLC, 405 Park Avenue, 15^th Floor, New York, New York 10022 (“Seller”), hereby bargains, sells, conveys and transfers to ____________________________ (“Buyer”), a _______________________________, all of Seller’s right, title and interest in and to those certain items of personal and intangible property (including any warranty made by third parties in connection with the same and the right to sue on any claim for relief under such warranties) (the “Personal Property”) owned by Seller and located at or held in connection with that certain real property located in the State of New Jersey, as more particularly described on Schedule A attached hereto and made a part hereof.

Seller has not made and does not make any express or implied warranty or representation of any kind whatsoever with respect to the Personal Property, including, without limitation, with respect to title, merchantability of the Personal Property or its fitness for any particular purpose, the design or condition of the Personal Property; the quality or capacity of the Personal Property; workmanship or compliance of the Personal Property with the requirements of any law, rule, specification or contract pertaining thereto; patent infringement or latent defects. Buyer accepts the Personal Property on an “as is, where is” basis.

IN WITNESS WHEREOF, Seller has caused this instrument to be executed and delivered as of this ___ day of _______, 2016.

SELLER:

ARC DB5PROP001, LLC,

a Delaware limited liability company

By:

Name:

Title:

D-1

SCHEDULE A

TO BILL OF SALE

[Add legal description of Real Property]

D-2

EXHIBIT E

FORM OF ASSIGNMENT OF CONTRACTS,
PERMITS, LICENSES AND WARRANTIES

THIS ASSIGNMENT, made as of the ___ day of ________, 2016, by ARC DB5PROP001, LLC, a Delaware limited liability company (“Assignor”), to _____________________________, a __________________________________________(“Assignee”).

W I T N E S S E T H:

WHEREAS, by Agreement of Purchase and Sale (the “Purchase Agreement”) dated as of ________, 2016, between Assignor and Assignee, Assignee has agreed to purchase from Assignor as of the date hereof, and Assignor has agreed to sell to Assignee, that certain property located at 1300, 1350 and 1400 American Boulevard, Hopewell Township, Mercer County, New Jersey (the “Property”); and

WHEREAS, Assignor desires to assign to Assignee as of the date hereof all of Assignor’s right, title and interest in contracts, permits, trademarks, licenses and warranties held by Assignor in connection with the Property (collectively, the “Contracts”).

NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Assignor hereby assigns, sets over and transfers unto Assignee to have and to hold from and after the date hereof all of the right, title and interest of Assignor in, to and under the Contracts. Assignor agrees without additional consideration to execute and deliver to Assignee any and all additional forms of assignment and other instruments and documents that may be reasonably necessary or desirable to transfer or evidence the transfer to Assignee of any of Assignor's right, title and interest to any of the Contracts.

By executing this assignment, Assignee hereby accepts the assignment of and assumes Assignor’s obligations and liabilities set forth in the Contracts from and after the date hereof. This Assignment shall be governed by the laws of the State of New Jersey, applicable to agreements made and to be performed entirely within said State.

IN WITNESS WHEREOF, Assignor has duly executed this Assignment as of the date first above written.

ASSIGNOR:        ASSIGNEE:

ARC DB5PROP001, LLC,

a Delaware limited liability company        

By:     By

E-1

Name:     Name:______________________________

Title:     Title:

EXHIBIT F

FORM OF TENANT ESTOPPEL CERTIFICATE

The undersigned, Merrill Lynch, Pierce, Fenner & Smith, Incorporated, as tenant (“Tenant”), under that certain lease agreement dated December __, 2012, between ARC DB5PROP001, LLC, a Delaware limited liability company, Assignor, as successor in interest to CF Hopewell Core LLC, as landlord (“Landlord”), and Tenant, as tenant, relating to certain premises commonly known as 1300, 1350 and 1400 American Boulevard, Hopewell Township, Mercer County, New Jersey, does hereby certify to (a) (“Buyer”), (b) (“Buyer’s Lender”)and its successors and assigns, and (c) Fidelity National Title Insurance Company, as follows:

1.Attached hereto as Exhibit A is a true and complete copy of the lease, and all
endorsements, modifications, supplements, guarantees and other agreements relating thereto (collectively, the “Lease”).

2.The Lease is presently in full force and effect and has not been amended,
modified or assigned, except as set forth on Exhibit A. Tenant has no notice of any assignment, pledge or hypothecation by Landlord of the rents due under the Lease since the date of the Lease.

3.The term of the Lease has commenced and the full rental, together with additional
rent as provided in the Lease, is now accruing thereunder. The fixed monthly rental (the “Fixed

Rent”) as of the date hereof is $    . There exists no dispute

between Landlord and Tenant as to the Fixed Rent as provided in the Lease.

4.Tenant’s proportionate share of real estate taxes and operating expenses as set
forth in the Lease (collectively, “Additional Rent”) is 100%. There exists no dispute between Landlord and Tenant as to current or past Additional Rent as provided in the Lease.

5.The premises demised pursuant to the Lease (the “Premises”), including any
improvements required by the terms of the Lease to be made by Landlord, have been completed to the satisfaction of Tenant, and Tenant has accepted possession of the same pursuant to the Lease. All construction obligations and other material obligations relating to the preparation of the Premises for occupancy by Tenant to be performed by Landlord pursuant to the Lease have been satisfied. All payments, if any, required to be made by Landlord to the Tenant for any leasehold improvements have been made.

6.The term of the Lease commenced on December ___, 2012, and expires on , 20___.

7.The Fixed Rent due under the Lease has been paid as provided in the Lease
through December, 2012, and all amounts billed by Landlord for Additional Rent have been paid to date as provided in the Lease and no payment due under the Lease has been made more than 30 days in advance of its due date.

8.There exist no defenses or offsets to the enforcement of the Lease by Landlord
and there are no defaults or breaches on the part of the Landlord under the Lease. No event has occurred which, with the passage of time, the giving of notice, or both, would constitute a default or breach under the Lease. Tenant is not entitled to any abatements, offsets, credits, or deductions of the Fixed Rent or Additional Rent due under the Lease. Tenant has no present right to cancel or terminate the Lease under the terms thereof or otherwise except as provided in the Lease.

9.Except as expressly set forth in the Lease, there exist no options to purchase, rights of first refusal, rights of first offer, options to renew, or options to expand or contract the Premises, in favor of Tenant.

10.Tenant has not executed or otherwise agreed to any sublease, assignment or other rental or occupancy agreement with respect to the Premises.

11.No security deposit or other deposit is required to be paid or has been paid to Landlord under the Lease.

12.The address for notices to be sent to Tenant is:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Corporate Real Estate

Mail Code NC2-109-06-05

13850 Ballantyne Corporate Place

Charlotte, NC 28277

Attn: Lease Administration

With a copy to:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Mail Code AZ3-162-01-01 3075 Chandler, AZ 28277 Attn: Transaction Specialist

13.No petition has been filed by or against Tenant for protection under bankruptcy, creditor’s rights, insolvency or other similar statutes.

[Remainder of this page intentionally left blank; Signature page follows]

This certification may be relied upon by Agent and Lenders and their respective successors and assigns, and First American Title Insurance Company, as well as any persons dealing with any of such parties.

Dated: _____, 2016.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, a Delaware corporation

By: _____________________________

Name:

Title:

EXHIBIT G

FORM OF NOTICE TO TENANT

TO:    Merrill Lynch, Pierce, Fenner & Smith, Incorporated

Corporate Real Estate

Mail Code NC2-109-06-05

13850 Ballantyne Corporate Place

Charlotte, NC 28277

Attn: Lease Administration

Re:    Notice of Change of Ownership of 1300, 1350 and 1400 American Boulevard, Hopewell Township, Mercer County, New Jersey

Ladies and Gentlemen:

YOU ARE HEREBY NOTIFIED AS FOLLOWS:

That as of the date hereof, the undersigned has transferred, sold, assigned, and conveyed all of its right, title and interest in and to the above-described property, (the “Property”) to [INSERT NAME OF BUYER] (the “New Owner”) and assigned to New Owner, all of the undersigned’s right, title and interest under that certain Lease, dated December 12, 2012, between Merrill Lynch, Pierce, Fenner & Smith, Incorporated as tenant and ARC DB5PROP001, LLC, a Delaware limited liability company, as successor in interest to CF Hopewell Core LLC, as landlord (the “Lease”), together with any security deposits or letters of credit held thereunder.

Accordingly, New Owner is the landlord under the Lease and future notices and correspondence with respect to your leased premises at the Property should be made to the New Owner at the following address:

You will receive a separate notification from New Owner regarding the new address for the payment of rent. In addition, to the extent required by the Lease, please amend all insurance policies you are required to maintain pursuant to the Lease to name New Owner as an additional insured thereunder and promptly provide New Owner with evidence thereof.

G-1

Very truly yours,

ARC DB5PROP001, LLC, a Delaware limited liability company

By:

Name:

Title:

G-2

EXHIBIT H

DUE DILIGENCE MATERIALS

1. Lease between the Seller and Tenant, and all other agreements covering all or any part of the Property, including any and all modifications, supplements or amendments thereto;

2. All service, maintenance, management or other contracts relating to the ownership and operation of the Property;

3. All licenses and permits with respect to the ownership and operation of the Property, including but not limited to, building permits and certificates of occupancy in Seller's possession;

4. All certificates of all fire, hazard, liability and other insurance policies covering or relating to the Property;

5. The most current real estate and personal property tax statements with respect to the Property;

6. Any existing surveys of the Property and as-built plans, BOMA measurements and specifications with respect to any improvements thereto or any part thereof in Seller's possession;

7. If applicable, an original, current inventory of all tangible personal property and fixtures owned by Seller or any affiliate of Seller and located on, attached to or used or purchased for us in connection with the Property, certified by Seller to be true and correct as of the date of delivery;

8. All warranties and guaranties relating to the Property, or any part thereof, or to the tangible personal property and fixtures owned by Seller or any affiliate of Seller and located on, attached to or used or purchased for use in connection with the Property;

9. A rent roll certified by the existing management company currently operating the Improvements as being true, correct and complete as of the date of delivery;

10. The written results of any inspections, studies, tests or other third party assessment reports conducted with respect to the Property in connection with Seller's acquisition thereof, including without limitation any environmental audits or reports;

11. The most current financial statements available for the Property together with financial statements for the two (2) most recent completed fiscal years, such financial statements to contain for each such period at least a balance sheet and an income statement; and

12. Any and all other documents, instruments, statements and information pertaining to the Property in Seller's possession that may be reasonably requested by Purchaser.

H-1

EX-10.20

Exhibit 10.20

FIRST AMENDMENT TO AGREEMENT

FOR PURCHASE AND SALE OF REAL PROPERTY

THIS FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY (this “Amendment”) is made to be effective as of November 11, 2016, by and between ARC DB5PROP001, LLC, a Delaware limited liability company and, its sole member, AMERICAN FINANCE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (collectively “Seller”), and CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation (“Buyer”), (Seller and Buyer sometimes collectively referred to herein as the “Parties”).

Recitals

A.    The Parties entered into that certain Agreement for Purchase and Sale of Real Property (the “Agreement”), with an effective date of October 11, 2016, pursuant to which Buyer agreed to purchase from Seller the real property located at 1300, 1350, and 1400 American Boulevard, Hopewell Township, NJ, such real property being more particularly described therein (the “Property”).

B.    Seller and Buyer desire to amend the Agreement as hereinafter set forth.

Amendment

For and in consideration of the premises and the mutual covenants and agreements hereinafter made, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby amend the Agreement as follows:

1.    Due Diligence Period. Seller and Buyer agree the Due Diligence Period and Buyer’s right to terminate referenced in Section 6(b) of the Agreement is hereby amended to be 5:00 p.m. Central Standard Time on Friday, November 18, 2016.

2.    Closing Date. The definition of “Closing” in Section 1(b) of the Agreement is amended to read as follows:

“Closing” shall mean the consummation of the transaction contemplated herein, which shall occur, subject to any applicable extension periods set forth in this Agreement, on November 30, 2016, unless the Buyer elects to close earlier by providing written notice thereof to Seller. The date of Closing is sometimes hereinafter referred to as the “Closing Date.” Neither party will need to be present at Closing, it being anticipated that the parties will deliver all Closing documents and deliverables in escrow to the Escrow Agent prior to the date of Closing.

3.    Miscellaneous.

a.    All terms and conditions of the Agreement not expressly modified by this Amendment shall remain in full force and effect, and, in the event of any inconsistencies between this Amendment and the terms of the Agreement, the terms set forth in this Amendment shall govern and control. Except as expressly amended hereby, the Agreement shall remain in full force and effect as of the date thereof. Unless specifically defined herein or the context requires otherwise, all capitalized terms used herein shall have the meaning ascribed to them in the Agreement.

b.    This Amendment may be executed in one or more counterparts which shall be construed together as one document. For purposes of the execution hereof, signatures delivered by facsimile transmission or by electronic mail (e.g. email) may be treated as originals.

c.    This Amendment shall be binding upon and shall inure to the benefit of each of the Parties and their respective successors and assigns.

EXECUTED as of the date first written above.

SELLER: ARC DB5PROP001, LLC, a Delaware limited liability company By: American Finance Operating Partnership, L.P., a Delaware limited partnership, its sole member By: American Finance Trust, Inc., a Maryland Corporation, its general partner By: /s/ Jesse C. Galloway   Name: Jesse C. Galloway   Title: Authorized Signatory BUYER: CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation By: /s/ Paul D. Agarwal   Name: Paul D. Agarwal   Title: President

AMERICAN FINANCE OPERATING

PARTNERSHIP, L.P., a Delaware limited

partnership

By: American Finance Trust, Inc.,

a Maryland Corporation, its general partner

By: /s/ Jesse C. GallowayName: Jesse C. GallowayTitle: Authorized Signatory

EX-10.21

Exhibit 10.21

SECOND AMENDMENT TO AGREEMENT
FOR PURCHASE AND SALE OF REAL PROPERTY

THIS SECOND AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY (this "Amendment") is made to be effective as of November 18, 2016, by and between ARC DB5PROP001, LLC, a Delaware limited liability company and, its sole member, AMERICAN FINANCE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (collectively "Seller"), and CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation ("Buyer"), (Seller and Buyer sometimes collectively referred to herein as the "Parties").

Recitals

A.The Parties entered into that certain Agreement for Purchase and Sale of Real Property (the "Original Agreement"), with an effective date of October 11, 2016, pursuant to which Buyer agreed to purchase from Seller the real property located at 1300, 1350, and 1400 American Boulevard, Hopewell Township, NJ, such real property being more particularly described therein (the "Property"). The Original Agreement was amended by First Amendment to Agreement for Purchase and Sale of Real Property dated November 10, 2016 (the "First Amendment"). The Original Agreement, as amended by the First Amendment, is hereinafter referred to as the "Agreement".

B.Seller and Buyer desire to further amend the Agreement as hereinafter set forth.

Amendment

For and in consideration of the premises and the mutual covenants and agreements hereinafter made, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby amend the Agreement as follows:

1.Due Diligence Period. Seller and Buyer agree the Due Diligence Period and Buyer's
right to terminate referenced in Section 6(b) of the Agreement is hereby amended to be 5:00 p.m. Central Standard Time on Wednesday, November 23, 2016. Buyer agrees as of the effective date of this Amendment, Buyer's right to terminate under Section 6(b) of the Agreement is limited to Buyer resolving its parking issues related to the Property. Except for resolution of the parking issues, Buyer acknowledges it is satisfied with the physical condition of the Property.

2.Miscellaneous.

a.    All terms and conditions of the Agreement not expressly modified by this

Amendment shall remain in full force and effect, and, in the event of any inconsistencies between this Amendment and the terms of the Agreement, the terms set forth in this Amendment shall govern and control. Except as expressly amended hereby, the Agreement shall remain in full force and effect as of the date thereof. Unless specifically defined herein or the context requires otherwise, all capitalized terms used herein shall have the meaning ascribed to them in the Agreement.

b.This Amendment may be executed in one or more counterparts which shall be construed together as one document. For purposes of the execution hereof, signatures delivered by facsimile transmission or by electronic mail (e.g. email) may be treated as originals.

c.This Amendment shall be binding upon and shall inure to the benefit of each
of the Parties and their respective successors and assigns.

EXECUTED as of the date first written above.

SELLER: ARC DB5PROP001, LLC, a Delaware limited liability company By: American Finance Operating Partnership, L.P., a Delaware limited partnership, its sole member By: American Finance Trust, Inc., a Maryland Corporation, its general partner By: /s/ Jesse C. Galloway   Name: Jesse C. Galloway   Title: Authorized Signatory BUYER: CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation By: /s/ Paul D. Agarwal   Name: Paul D. Agarwal   Title: President

AMERICAN FINANCE OPERATING

PARTNERSHIP, L.P., a Delaware limited

partnership

By: American Finance Trust, Inc.,

a Maryland Corporation, its general partner

By: /s/ Jesse C. GallowayName: Jesse C. GallowayTitle: Authorized Signatory

EX-10.22

Exhibit 10.22

THIRD AMENDMENT TO AGREEMENT
FOR PURCHASE AND SALE OF REAL PROPERTY

THIS THIRD AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY (this "Amendment") is made to be effective as of November 23, 2016, by and between ARC DB5PROP001, LLC, a Delaware limited liability company and, its sole member, AMERICAN FINANCE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (collectively "Seller"), and CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation ("Buyer"), (Seller and Buyer sometimes collectively referred to herein as the "Parties").

Recitals

A.The Parties entered into that certain Agreement for Purchase and Sale of Real Property (the "Original Agreement"), with an effective date of October 11, 2016, pursuant to which Buyer agreed to purchase from Seller the real property located at 1300, 1350, and 1400 American Boulevard, Hopewell Township, NJ, such real property being more particularly described therein (the "Property"). The Original Agreement was amended by First Amendment to Agreement for Purchase and Sale of Real Property dated November 10, 2016 (the "First Amendment") and Second Amendment to Agreement for Purchase and Sale of Real Property dated November 18, 2016 (the "Second Amendment"). The Original Agreement, as amended by the First Amendment and Second Amendment, is hereinafter referred to as the "Agreement".

B.Seller and Buyer desire to further amend the Agreement as hereinafter set forth.

Amendment

For and in consideration of the premises and the mutual covenants and agreements hereinafter made, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby amend the Agreement as follows:

1.Due Diligence Period. Seller and Buyer agree the Due Diligence Period and Buyer's right to terminate referenced in Section 6(b) of the Agreement is hereby amended to be 5:00 p.m. Central Standard Time on Thursday, December 1, 2016.

2.Additional Earnest Money. Section 1(d) of the Agreement is amended to provide that Buyer agrees to deliver the Additional Earnest Money, in the amount of Two Million and NO/100 Dollars ($2,000,000.00), to the Escrow Agent on Friday, November 25, 2016.

3.Miscellaneous.

a.    All terms and conditions of the Agreement not expressly modified by this

Amendment shall remain in full force and effect, and, in the event of any inconsistencies between this Amendment and the terms of the Agreement, the terms set forth in this Amendment shall govern and control. Except as expressly amended hereby, the Agreement shall remain in full force and effect as of the date thereof Unless specifically defined herein or the context requires otherwise, all capitalized terms used herein shall have the meaning ascribed to them in the Agreement.

b.This Amendment may be executed in one or more counterparts which shall be construed together as one document. For purposes of the execution hereof, signatures delivered by facsimile transmission or by electronic mail (e.g. email) may be treated as originals.

c.This Amendment shall be binding upon and shall inure to the benefit of each
of the Parties and their respective successors and assigns.

EXECUTED as of the date first written above.

SELLER: ARC DB5PROP001, LLC, a Delaware limited liability company By: American Finance Operating Partnership, L.P., a Delaware limited partnership, its sole member By: American Finance Trust, Inc., a Maryland Corporation, its general partner By: /s/ Jesse C. Galloway   Name: Jesse C. Galloway   Title: Authorized Signatory BUYER: CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation By: /s/ Paul D. Agarwal   Name: Paul D. Agarwal   Title: President

AMERICAN FINANCE OPERATING

PARTNERSHIP, L.P., a Delaware limited

partnership

By: American Finance Trust, Inc.,

a Maryland Corporation, its general partner

By: /s/ Jesse C. GallowayName: Jesse C. GallowayTitle: Authorized Signatory

EX-10.23

Exhibit 10.23

REINSTATEMENT AND FOURTH AMENDMENT TO AGREEMENT
FOR PURCHASE AND SALE OF REAL PROPERTY

THIS FOURTH AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY (this Amendment") is made to be effective as of December 1, 2016, by and between ARC DB5PROP001, LLC, a Delaware limited liability company and, its sole member, AMERICAN FINANCE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (collectively "Seller"), and CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation ("Buyer"), (Seller and Buyer sometimes collectively referred to herein as the "Parties").

Recitals

A.The Parties entered into that certain Agreement for Purchase and Sale of Real Property (the"Original Agreement"), with an effective date of October 11, 2016, pursuant to which Buyer agreed to purchase from Seller the real property located at 1300, 1350, and 1400 American Boulevard, Hopewell Township, NJ, such real property being more particularly described therein (the "Property"). The Original Agreement was amended by First Amendment to Agreement for Purchase and Sale of Real Property dated November 10, 2016 (the "First Amendment"), Second Amendment to Agreement for Purchase and Sale of Real Property dated November 18, 2016 (the "Second Amendment") and Third Amendment to Agreement for Purchase and Sale of Real Property dated November 23, 2016 (the "Third Amendment"). The Original Agreement, as amended by the First Amendment, Second Amendment and Third Amendment, is hereinafter referred to as the "Agreement".

B.By letter dated December 1, 2016, Buyer notified Seller it elected to terminate the Agreement
in accordance with the terms of the Agreement.

C.Seller and Buyer desire to reinstate and further amend the Agreement as hereinafter set forth.Amendment

For and in consideration of the premises and the mutual covenants and agreements hereinafter made, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby amend the Agreement as follows:

1.Reinstatement. Buyer and Seller hereby reinstate the Agreement, subject however, to the
terms and conditions of this Amendment.

2.Due Diligence Period. Seller and Buyer agree the Due Diligence Period and Buyer's right to
terminate referenced in Section 6(b) of the Agreement has expired and Buyer has no further right to terminate the Contract in accordance with Section 6(b). Buyer agrees and acknowledges that ONE MILLION and NO/100 DOLLARS ($1,000,000.00) of the Earnest Money shall be deemed non-refundable in all events, excluding a Seller default. The remaining TWO MILLION and NO/100 DOLLARS ($2,000,000.00) of the Earnest Money shall be deemed non-refundable, except in the event for the failure of Minimum Financing Requirements as set forth below, or as otherwise may be expressly provided for in the Agreement. The entirety of the Earnest Money shall remain applicable to the Purchase Price.

3.Financing Contingency. Notwithstanding the foregoing, Buyer's obligation to acquire the
Property in accordance with the terms of the Agreement are contingent upon Buyer obtaining third party loan(s) secured by the Property in the amount of $95,000,000, for not less than five (5) years with the initial interest rate not to exceed 5% per annum, with interest only payments for the first two (2) years and on such other terms and conditions which are reasonably acceptable to Buyer ("Minimum Financing Requirements").

In the event that Buyer is not able to secure the Minimum Financing Requirements by 5:00 PM CST December 13, 2016, Buyer shall have the right to terminate this Agreement upon written notice to Seller, upon which termination TWO MILLION and NO/100 DOLLARS ($2,000,000.00) of the Earnest Money shall be returned to Buyer and neither party shall have any further obligation hereunder, except as otherwise expressly set forth herein.

4.Closing Date. The definition of "Closing" in Section 1(b) of the Agreement is amended to read as follows:

"Closing" shall mean the consummation of the transaction contemplated herein, which shall occur, subject to any applicable extension periods set forth in this Agreement (including the 30-day extension set forth in Section 10), on December 30, 2016, unless the Buyer elects to close earlier by providing written notice thereof to Seller. The date of Closing is sometimes hereinafter referred to as the "Closing Date." Neither party will need to be present at Closing, it being anticipated that the parties will deliver all Closing documents and deliverables in escrow to the Escrow Agent prior to the date of Closing."

5.Closing Extension. In accordance with Section 10 of the Agreement, Buyer shall have a onetime option to extend the Closing Date to January 31, 2017 by delivering to Escrow Agent an additional TWO MILLION and NO/100 DOLLARS ($2,000,000.00) ("Extension Earnest Money"); provided, however, Buyer shall not be required to provide any additional advance notice. The Extension Earnest Money shall become part the Earnest Money and shall be deemed non-refundable except as otherwise set forth in this Agreement. The Closing shall be held through the mail by delivery of the closing documents to the Escrow Agent on or prior to the Closing or such other place or manner as the parties hereto.

6.Miscellaneous.

a.All terms and conditions of the Agreement not expressly modified by this Amendment
shall remain in full force and effect, and, in the event of any inconsistencies between this Amendment and the terms of the Agreement, the terms set forth in this Amendment shall govern and control. Except as expressly amended hereby, the Agreement shall remain in full force and effect as of the date thereof. Unless specifically defined herein or the context requires otherwise, all capitalized terms used herein shall have the meaning ascribed to them in the Agreement.

b.This Amendment may be executed in one or more counterparts which shall be
construed together as one document. For purposes of the execution hereof, signatures delivered by facsimile transmission or by electronic mail (e.g. email) may be treated as originals.

c.This Amendment shall be binding upon and shall inure to the benefit of each of the
Parties and their respective successors and assigns.

[signature page to follow]

EXECUTED as of the date first written above.

SELLER: ARC DB5PROP001, LLC, a Delaware limited liability company By: American Finance Operating Partnership, L.P., a Delaware limited partnership, its sole member By: American Finance Trust, Inc., a Maryland Corporation, its general partner By: /s/ Jesse C. Galloway   Name: Jesse C. Galloway   Title: Authorized Signatory BUYER: CAPITAL COMMERCIAL INVESTMENTS, INC., a Texas corporation By: /s/ Paul D. Agarwal   Name: Paul D. Agarwal   Title: President

AMERICAN FINANCE OPERATING

PARTNERSHIP, L.P., a Delaware limited

partnership

By: American Finance Trust, Inc.,

a Maryland Corporation, its general partner

By: /s/ Jesse C. GallowayName: Jesse C. GallowayTitle: Authorized Signatory

EX-21.1

Exhibit 21.1

Subsidiaries of American Finance Trust, Inc.

Name	Jurisdiction of Formation/Incorporation
AFIN BB Loan, LLC	Delaware
AFIN Commercial Lending, LLC	Delaware
AFIN CS Loan, LLC	Delaware
AFIN High Yield Securities, LLC	Delaware
AFIN Subsidiary REIT, LLC	Delaware
AFIN UBS Loan, LLC	Delaware
American Finance Operating Partnership, L.P.	Delaware
55 Corporate Drive Condominium Association, LLC	Delaware
ARC AAANGIN001, LLC	Delaware
ARC AABNLFL001, LLC	Delaware
ARC AATNTMA001, LLC	Delaware
ARC AAWSNGA001, LLC	Delaware
ARC ABHNDMS001, LLC	Delaware
ARC AMWNRKY001, LLC	Delaware
ARC ARERIPA001, LLC	Delaware
ARC ARVIRMN001, LLC	Delaware
ARC ASCGRMO001, LLC	Delaware
ARC AZCROMI001, LLC	Delaware
ARC AZCTOLA001, LLC	Delaware
ARC AZTMPGA001, LLC	Delaware
ARC BFFTMFL001, LLC	Delaware
ARC BKMST41001, LLC	Delaware
ARC CBDTNPA001, LLC	Delaware
ARC CBLDLPA001, LLC	Delaware
ARC CBLMAPA001, LLC	Delaware
ARC CBPHLPA001, LLC	Delaware
ARC CBPHLPA002, LLC	Delaware
ARC CBPHLPA003, LLC	Delaware
ARC CBPLHPA004, LLC	Delaware
ARC CBRBRPA001, LLC	Delaware
ARC CBWNEPA001, LLC	Delaware
ARC CHLKJTX001, LLC	Delaware
ARC CHVCTTX001, LLC	Delaware
ARC CKMST19001, LLC	Delaware
ARC CVANSAL001, LLC	Delaware
ARC CVDETMI001, LLC	Delaware
ARC CVHYKMA001, LLC	Delaware
ARC DB5PROP001, LLC	Delaware
ARC DB5SAAB001, LLC	Delaware
ARC DGATHMI001, LLC	Delaware
ARC DGBGLLA001, LLC	Delaware
ARC DGBKHMS001, LLC	Delaware

ARC DGBNBGA001, LLC	Delaware
ARC DGCHEOK001, LLC	Delaware
ARC DGCMBMS001, LLC	Delaware
ARC DGDNDLA001, LLC	Delaware
ARC DGDVLLA001, LLC	Delaware
ARC DGFHLLA001, LLC	Delaware
ARC DGFLRMI001, LLC	Delaware
ARC DGFRTMS001, LLC	Delaware
ARC DGFTSAR001, LLC	Delaware
ARC DGGNWLA001, LLC	Delaware
ARC DGGSBVA001, LLC	Delaware
ARC DGGVLMS002, LLC	Delaware
ARC DGHBKLA001, LLC	Delaware
ARC DGHDNMI001, LLC	Delaware
ARC DGHTGWV001, LLC	Delaware
ARC DGHTSAR001, LLC	Delaware
ARC DGLAFTN001, LLC	Delaware
ARC DGLCRMN002, LLC	Delaware
ARC DGMBLAR001, LLC	Delaware
ARC DGMKNMI001, LLC	Delaware
ARC DGMRALA001, LLC	Delaware
ARC DGMSNTX002, LLC	Delaware
ARC DGNTALA001, LLC	Delaware
ARC DGRLFMS001, LLC	Delaware
ARC DGRSEMI001, LLC	Delaware
ARC DGRYLAR001, LLC	Delaware
ARC DGSRBMO001, LLC	Delaware
ARC DGSTNVA001, LLC	Delaware
ARC DGSVNMO001, LLC	Delaware
ARC DGTLSLA001, LLC	Delaware
ARC DGVDRTX001, LLC	Delaware
ARC DGVNLTN001, LLC	Delaware
ARC DGWPTMS001, LLC	Delaware
ARC DGWRNIN001, LLC	Delaware
ARC DGWSNNY001, LLC	Delaware
ARC FDBRNLA001, LLC	Delaware
ARC FDBTLKY001, LLC	Delaware
ARC FDCHLID001, LLC	Delaware
ARC FDCRLMO001, LLC	Delaware
ARC FDDNVAR001, LLC	Delaware
ARC FDDXRNM001, LLC	Delaware
ARC FDFNTPA001, LLC	Delaware
ARC FDHCRTX001, LLC	Delaware
ARC FDKRMCO001, LLC	Delaware
ARC FDOCYLA001, LLC	Delaware
ARC FDPLSTX001, LLC	Delaware

ARC FDWLDCO001, LLC	Delaware
ARC FEBSMND001, LLC	Delaware
ARC FECNBIA001, LLC	Delaware
ARC FEEGLWI001, LLC	Delaware
ARC FEGRFND001, LLC	Delaware
ARC FELELMS001, LLC	Delaware
ARC FESOUIA001, LLC	Delaware
ARC FEWAUWI001, LLC	Delaware
ARC FEWTNSD001, LLC	Delaware
ARC FLCLTNC001, LLC	Delaware
ARC FMMTCNJ001, LLC	Delaware
ARC FMMTVAL001, LLC	Delaware
ARC FMSNHPA001, LLC	Delaware
ARC HR5BEIL001, LLC	Delaware
ARC HR5BIAL001, LLC	Delaware
ARC HR5BPMN001, LLC	Delaware
ARC HR5CSAL001, LLC	Delaware
ARC HR5CSMA001, LLC	Delaware
ARC HR5CSMA002, LLC	Delaware
ARC HR5CSMA003, LLC	Delaware
ARC HR5CSMD001, LLC	Delaware
ARC HR5CURI001, LLC	Delaware
ARC HR5CVGA001, LLC	Delaware
ARC HR5DOGA001, LLC	Delaware
ARC HR5GAGA001, LLC	Delaware
ARC HR5GANC001, LLC	Delaware
ARC HR5GASC001, LLC	Delaware
ARC HR5GAVA001, LLC	Delaware
ARC HR5GBNC001, LLC	Delaware
ARC HR5GRSC001, LLC	Delaware
ARC HR5HASC001, LLC	Delaware
ARC HR5HOTX001, LP	Delaware
ARC HR5HOWI001, LLC	Delaware
ARC HR5HPNY001, LLC	Delaware
ARC HR5MCFL001, LLC	Delaware
ARC HR5MSSE001, LLC	Delaware
ARC HR5NCTN001, LLC	Delaware
ARC HR5PEGA001, LLC	Delaware
ARC HR5PISC001, LLC	Delaware
ARC HR5SINJ001, LLC	Delaware
ARC HR5SLUT001, LLC	Delaware
ARC HR5SNFI001 SPE, LLC	Delaware
ARC HR5SNFI001, LLC	Delaware
ARC HR5SOCT001, LLC	Delaware
ARC HR5SSMA001, LLC	Delaware
ARC HR5SSMA002, LLC	Delaware

ARC HR5SSMA003, LLC	Delaware
ARC HR5SSRI001, LLC	Delaware
ARC HR5STP1001, LLC	Delaware
ARC HR5STP1002, LLC	Delaware
ARC HR5STP2001, LLC	Delaware
ARC HR5STP2002, LLC	Delaware
ARC HR5STP3001, LLC	Delaware
ARC HR5STP3002, LLC	Delaware
ARC HR5VAGA001, LLC	Delaware
ARC HR5ZUMN001, LLC	Delaware
ARC JCHUSTX001, LLC	Delaware
ARC JCWSTCO001, LLC	Delaware
ARC LWAKNSC001, LLC	Delaware
ARC LWFYTNC001, LLC	Delaware
ARC LWMCNGA001, LLC	Delaware
ARC LWNBNNC001, LLC	Delaware
ARC LWRMTNC001, LLC	Delaware
ARC MFAKNSC001, LLC	Delaware
ARC MFFNCAL001, LLC	Delaware
ARC MFHLDMI001, LLC	Delaware
ARC MFKXVTN002, LLC	Delaware
ARC MFMCDGA001, LLC	Delaware
ARC MFMDNID001, LLC	Delaware
ARC MFSGWMI001, LLC	Delaware
ARC MFTSEFL002, LLC	Delaware
ARC MFVALGA001, LLC	Delaware
ARC NTMNDIL001, LLC	Delaware
ARC NTSNTTX001, LLC	Delaware
ARC ORMNTWI001, LLC	Delaware
ARC TKLWSFL001, LLC	Delaware
ARC TPEGPTX001, LLC	Delaware
ARC TSHRLKY001, LLC	Delaware
ARC TSHTNMI001, LLC	Delaware
ARC TSVRNCT001, LLC	Delaware
ARC WGBEATX001, LLC	Delaware
ARC WGBTDIAOO1, LLC	Delaware
ARC WGGLTWY001, LLC	Delaware
ARC WGLNSMI001, LLC	Delaware
ARC WGOKCOK001, LLC	Delaware
ARC WGPNBAR001, LLC	Delaware
ARC WGTKRGA001, LLC	Delaware
ARC WGWFDMI001, LLC	Delaware
Genie Acquisition, LLC	Delaware

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Edward M. Weil, Jr., certify that:

1. I have reviewed this Annual Report on Form 10-K of American Finance Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 13th day of March, 2017	/s/ Edward M. Weil, Jr.
	Edward M. Weil, Jr.
	Chief Executive Officer and President
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) AND 15d-14(a) UNDER

THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Nicholas Radesca, certify that:

1. I have reviewed this Annual Report on Form 10-K of American Finance Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated this 13th day of March, 2017	/s/ Nicholas Radesca
	Nicholas Radesca
	Chief Financial Officer, Treasurer and Secretary
	(Principal Financial Officer and Principal Accounting Officer)

EX-32

Exhibit 32

SECTION 1350 CERTIFICATIONS

This Certificate is being delivered pursuant to the requirements of Section 1350 of Chapter 63 (Mail Fraud) of Title 18 (Crimes and Criminal Procedures) of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

The undersigned, who are the Chief Executive Officer and Chief Financial Officer of American Finance Trust, Inc. (the “Company”), each hereby certify as follows:

The Annual Report on Form 10-K of the Company, which accompanies this Certificate, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and all information contained in this Annual report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated this 13th day of March, 2017

/s/ Edward M. Weil, Jr.

Edward M. Weil, Jr.

Chief Executive Officer and President

(Principal Executive Officer)

/s/ Nicholas Radesca

Nicholas Radesca

Chief Financial Officer, Treasurer and Secretary

(Principal Financial Officer and Principal Accounting Officer)

XML

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2016	Feb. 28, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN FINANCE TRUST, INC.
Entity Central Index Key	0001568162
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		104,329,255
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 0.0

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Real estate investments, at cost:
Land	$ 328,656	$ 358,278
Buildings, fixtures and improvements	1,395,602	1,540,821
Acquired intangible lease assets	300,129	319,028
Total real estate investments, at cost	2,024,387	2,218,127
Less: accumulated depreciation and amortization	(287,090)	(215,427)
Total real estate investments, net	1,737,297	2,002,700
Cash and cash equivalents	131,215	130,500
Restricted cash	7,890	7,887
Commercial mortgage loan, held for investment, net	17,175	17,135
Prepaid expenses and other assets	29,513	21,982
Deferred costs, net	3,767	0
Assets held for sale	137,602	56,884
Total assets	2,064,459	2,237,088
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable, net of deferred financing costs	1,022,275	1,033,582
Mortgage premiums, net	10,681	14,892
Market lease liabilities, net	13,915	18,133
Accounts payable and accrued expenses (including $910 and $541 due to related parties as of December 31, 2016 and 2015, respectively)	13,553	24,964
Deferred rent and other liabilities	9,970	9,569
Distributions payable	9,199	9,199
Total liabilities	1,079,593	1,110,339
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 65,805,184 and 64,961,256 shares issued and outstanding as of December 31, 2016 and 2015, respectively	658	650
Additional paid-in capital	1,449,662	1,429,294
Accumulated deficit	(465,454)	(303,195)
Total stockholders' equity	984,866	1,126,749
Total liabilities and stockholders' equity	$ 2,064,459	$ 2,237,088

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Due to related parties (in usd)	$ 910	$ 541
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized	50,000,000	50,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	300,000,000	300,000,000
Common stock, issued	65,805,184	64,961,256
Common stock, outstanding	65,805,184	64,961,256

XML

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Rental income	$ 164,386	$ 160,865	$ 146,139
Operating expense reimbursements	12,232	11,495	12,241
Interest income from debt investments	1,050	2,138	0
Total revenues	177,668	174,498	158,380
Operating expenses:
Asset management fees to related party	18,000	13,009	0
Property operating	13,614	13,258	13,492
Impairment charges	27,299	0	0
Acquisition and transaction related	7,063	2,220	22,595
General and administrative	11,168	11,314	6,011
Depreciation and amortization	101,143	101,546	93,379
Total operating expenses	178,287	141,347	135,477
Operating (loss) income	(619)	33,151	22,903
Other income (expense):
Interest expense	(54,253)	(40,891)	(27,665)
Loss on extinguishment of debt	0	(7,564)	0
Loss on sale of commercial mortgage-backed securities	0	(1,585)	0
Income from investment securities	0	363	2,279
Gain on sale of other real estate securities, net	0	738	297
Gain on sale of real estate investments	454	0	0
Loss on commercial mortgage loans held for sale	0	(5,476)	0
Other income	163	147	189
Total other expense, net	(53,636)	(54,268)	(24,900)
Net loss	(54,255)	(21,117)	(1,997)
Other comprehensive (loss) income:
Change in unrealized (loss) income on investment securities	0	(463)	7,444
Comprehensive (loss) income	$ (54,255)	$ (21,580)	$ 5,447
Basic and diluted weighted-average shares outstanding (in shares)	65,450,432	66,028,245	64,333,260
Basic and diluted net loss per share (in dollars per share)	$ (0.83)	$ (0.32)	$ (0.03)

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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Accumulated Deficit [Member]
Beginning Balance (in shares) at Dec. 31, 2013		62,985,937
Beginning Balance at Dec. 31, 2013	$ 1,311,814	$ 630	$ 1,383,066	$ (6,981)	$ (64,901)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Changes in offering costs	201		201
Common stock issued through distribution reinvestment plan (in shares)		2,566,242
Common stock issued through distribution reinvestment plan	$ 60,977	$ 26	60,951
Common stock repurchases (in shares)	(295,825)	(295,825)
Common stock repurchases	$ (7,095)	$ (3)	(7,092)
Share-based compensation, net of forfeitures (in shares)		1,600
Share-based compensation, net of forfeitures	21		21
Distributions declared	(106,200)				(106,200)
Net loss	(1,997)				(1,997)
Other comprehensive income (loss)	7,444			7,444
Ending Balance (in shares) at Dec. 31, 2014		65,257,954
Ending Balance at Dec. 31, 2014	1,265,165	$ 653	1,437,147	463	(173,098)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued through distribution reinvestment plan (in shares)		1,469,319
Common stock issued through distribution reinvestment plan	$ 34,806	$ 15	34,791
Common stock repurchases (in shares)	(1,769,738)	(1,769,738)
Common stock repurchases	$ (42,713)	$ (18)	(42,695)
Share-based compensation, net of forfeitures (in shares)		3,721
Share-based compensation, net of forfeitures	51		51
Distributions declared	(108,980)				(108,980)
Net loss	(21,117)				(21,117)
Other comprehensive income (loss)	(463)			(463)
Ending Balance (in shares) at Dec. 31, 2015		64,961,256
Ending Balance at Dec. 31, 2015	$ 1,126,749	$ 650	1,429,294	0	(303,195)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued through distribution reinvestment plan (in shares)	848,067	848,059
Common stock issued through distribution reinvestment plan	$ 20,499	$ 8	20,491
Common stock repurchases (in shares)	(7,854)	(7,854)
Common stock repurchases	$ (190)	$ 0	(190)
Share-based compensation, net of forfeitures (in shares)		3,723
Share-based compensation, net of forfeitures	67		67
Distributions declared	(108,004)				(108,004)
Net loss	(54,255)				(54,255)
Ending Balance (in shares) at Dec. 31, 2016		65,805,184
Ending Balance at Dec. 31, 2016	$ 984,866	$ 658	$ 1,449,662	$ 0	$ (465,454)

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (54,255)	$ (21,117)	$ (1,997)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	66,831	66,946	62,571
Amortization of in-place lease assets	34,247	34,600	30,808
Amortization of deferred financing costs	8,716	12,663	4,588
Amortization of mortgage premiums on borrowings	(4,211)	(7,208)	(6,096)
Discount accretion and premium amortization on investments, net	(40)	(96)	0
Amortization of market lease intangibles, net	477	1,666	1,421
Share-based compensation	67	51	21
Gain on sale of real estate investments	(454)	0	0
Impairment charges	27,299	0	0
Loss on sale of commercial mortgage-backed securities	0	1,585	0
Gain on sale of other real estate securities, net	0	(738)	(297)
Loss on commercial mortgage loans held for sale	0	5,476	0
Changes in assets and liabilities:
Prepaid expenses and other assets	(8,882)	(7,878)	353
Accounts payable and accrued expenses	3,173	1,177	2,417
Deferred rent and other liabilities	401	2,331	6,022
Net cash provided by operating activities	73,369	89,458	99,811
Cash flows from investing activities:
Origination of commercial mortgage loans	0	(79,410)	0
Purchase of commercial mortgage-backed securities	0	(30,198)	0
Investment in real estate and other assets	(34,244)	0	(538,130)
Proceeds from sale of real estate investments	15,190	0	0
Proceeds from investment securities	0	19,266	47,316
Net cash provided by (used in) investing activities	37,830	(61,718)	(490,814)
Cash flows from financing activities:
Proceeds from mortgage notes payable	0	780,000	0
Payments on mortgage notes payable	(1,014)	(196,431)	(989)
Proceeds from credit facility	0	0	423,000
Payments on credit facility	0	(423,000)	0
Payments of financing costs	(5,709)	(18,806)	(10,622)
Proceeds from issuances of common stock	0	0	127
Payments of offering costs and fees related to stock issuances	0	0	(37)
Common stock repurchases	(16,253)	(31,725)	(2,020)
Distributions paid	(87,505)	(74,151)	(44,872)
Restricted cash	(3)	(7,887)	0
Net cash (used in) provided by financing activities	(110,484)	28,000	364,587
Net change in cash and cash equivalents	715	55,740	(26,416)
Cash and cash equivalents, beginning of period	130,500	74,760	101,176
Cash and cash equivalents, end of period	131,215	130,500	74,760
Supplemental Disclosures:
Cash paid for interest	49,140	42,696	27,115
Cash paid for income taxes	739	877	422
Accrued common stock repurchases	0	16,063	5,075
Non-Cash Investing and Financing Activities:
Mortgage notes payable released in connection with disposition of real estate	(14,867)	0	0
Mortgage notes payable assumed or used to acquire investments in real estate	0	0	462,238
Premiums on assumed mortgage notes payable	0	0	27,862
Common stock issued through distribution reinvestment plan	20,499	34,806	60,977
Commercial mortgage-backed securities [Member]
Cash flows from investing activities:
Proceeds from sale of commercial mortgage-backed securities	0	28,624	0
Proceeds from investment securities	28,624
Commercial mortgage loans [Member]
Cash flows from investing activities:
Proceeds from sale of commercial mortgage-backed securities	$ 56,884	$ 0	$ 0

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Organization

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Note 1 — Organization

American Finance Trust, Inc. (the "Company"), formerly known as American Realty Capital Trust V, Inc., is a diversified REIT with a retail focus. The Company owns a diversified portfolio of commercial properties which are net leased primarily to investment grade and other creditworthy tenants and a portfolio of stabilized core retail properties, consisting primarily of power centers and lifestyle centers, which were acquired in the Merger (as defined in Note 2 — Completed Mergers and Significant Disposals). Prior to the Merger, the Company acquired a diversified portfolio of commercial properties comprised primarily of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants. The Company intends to focus its future acquisitions on net leased properties, which are expected to consist primarily of retail properties, and stabilized core retail properties. As of December 31, 2016, the Company owned 455 properties with an aggregate purchase price of $2.2 billion, comprised of 13.3 million rentable square feet, which were 100.0% leased.

The Company, incorporated on January 22, 2013, is a Maryland corporation that elected and qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with the taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through American Finance Operating Partnership, L.P. (the "OP"), a Delaware limited partnership and its wholly-owned subsidiaries.

On April 4, 2013, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 68.0 million shares of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. The IPO closed in October 2013. As of December 31, 2016, the Company had 65.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the Company's distribution reinvestment plan (the "DRIP"), and had received total proceeds from the IPO and the DRIP, net of share repurchases, of $1.6 billion.

The Company has no employees. The Company has retained American Finance Advisors, LLC (the "Advisor") to manage the Company's affairs on a day-to-day basis. American Finance Properties, LLC (the "Property Manager") serves as the Company's property manager. The Advisor and the Property Manager are wholly owned subsidiaries of AR Global Investments, LLC (the successor business to AR Capital, LLC, the "Sponsor" or "AR Global"), as a result of which, they are related parties of the Company, and each have received or will receive, as applicable, compensation, fees and expense reimbursements for services related to managing the Company's business.

The shares of the Company's common stock have been approved for listing on the New York Stock Exchange (the "NYSE") under the symbol "AFIN" (the "Listing"), subject to the Company being in compliance with all applicable listing standards on the date it begins trading on the NYSE. The Company's approval for listing is valid through August 2017, although it may apply to extend the outside date for listing. While the Company intends to list its shares of common stock on the NYSE at a time yet to be determined by its board of directors, there can be no assurance as to when or if the Company's common stock will commence trading on the NYSE.

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Completed Mergers and Significant Disposals

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Completed Mergers and Significant Disposals

Note 2 — Completed Mergers and Significant Disposals

American Realty Capital — Retail Centers of America, Inc. Merger

On September 6, 2016, the Company and the OP entered into an Agreement and Plan of Merger (the “Merger Agreement”) with American Realty Capital — Retail Centers of America, Inc. (“RCA”), American Realty Capital Retail Operating Partnership, L.P. (the “RCA OP”) and Genie Acquisition, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (the “Merger Sub”). The Merger Agreement provided for (a) the merger of RCA with and into the Merger Sub (the “Merger”), with the Merger Sub surviving as a wholly owned subsidiary of the Company and (b) the merger of the RCA OP with and into the OP, with the OP as the surviving entity (the “Partnership Merger”, and together with the Merger, the “Mergers”). The Mergers became effective on February 16, 2017.

Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Mergers (the “Effective Time”), each outstanding share of common stock of RCA, $0.01 par value per share (“RCA Common Stock”) (including any restricted shares of RCA Common Stock and fractional shares), was converted into the right to receive (x) a number of shares of common stock of the Company, $0.01 par value per share (the “Company Common Stock”) equal to 0.385 shares of Company Common Stock (the “Stock Consideration”) and (y) cash from the Company, in an amount equal to $0.95 per share (the “Cash Consideration,” and together with the Stock Consideration, the “Merger Consideration”).

In addition, at the Effective Time, (i) each unit of partnership interest of the RCA OP designated as an OP Unit issued and outstanding immediately prior to the Effective Time (other than those held by RCA as described in clause (ii) below) was automatically converted into 0.424 validly issued units of limited partnership interest of the OP (the “Partnership Merger Consideration”); (ii) each unit of partnership interest of the RCA OP designated as either an OP Unit or a GP Unit held by RCA and issued and outstanding immediately prior to the Effective Time was automatically converted into 0.385 validly issued units of limited partnership interest of the OP; (iii) each unit of partnership interest of the RCA OP designated as a Class B Unit held by RCA’s advisor and a sub-advisor issued and outstanding immediately prior to the Effective Time was converted into the Partnership Merger Consideration (the “Class B Consideration,” and together with the Partnership Merger Consideration and the Merger Consideration, the “Total Merger Consideration”) and (iv) the interest of American Realty Capital Retail Advisor, LLC, the special limited partner of the RCA OP (the “RCA Advisor”), in the RCA OP was redeemed for a cash payment, determined in accordance with the existing terms of the RCA OP’s agreement of limited partnership.

In addition, as provided in the Merger Agreement, all outstanding restricted stock of RCA became fully vested and entitled to receive the Merger Consideration.

In 2017, the Company issued approximately 38.2 million shares of Company Common Stock as consideration in the Merger and paid approximately $94.3 million in Cash Consideration.

In connection with the execution of the Merger Agreement, the OP entered into a binding commitment, pursuant to which UBS Securities LLC, UBS AG, Stamford Branch and Citizens Bank, N.A. committed to provide a $360.0 million bridge loan facility, subject to customary conditions. The Company did not borrow any funds under the bridge loan facility.

Prior to the Mergers, the Company and RCA each were sponsored, directly or indirectly, by AR Global. AR Global and its affiliates provide investment and advisory services to the Company, and previously provided such services to RCA, pursuant to written advisory agreements. In 2017, in connection with, and subject to the terms and conditions of the Merger Agreement, RCA OP units held by AR Global and its affiliates were exchanged for OP Units of the Company and certain special limited partner interests in the RCA OP held by AR Global and its affiliates were, consistent with the terms of the RCA OP partnership agreement, redeemed for a cash payment of approximately $2.8 million.

The RCA Advisor was previously party to a service agreement, a property management and a leasing agreement with an independent third party, Lincoln Retail REIT Services, LLC, a Delaware limited liability company ("Lincoln"), pursuant to which Lincoln provided, subject to the RCA Advisor's oversight, real estate-related services, including acquisition, disposition, asset management and property management services, and leasing and construction oversight, as needed. The RCA Advisor passed through to Lincoln a portion of the fees and/or other expense reimbursements payable to the RCA Advisor for the performance of certain real estate-related services. In connection with the Mergers, the Advisor engaged in discussions with Lincoln for the engagement of Lincoln as the service provider for certain of RCA’s retail properties that are now owned by the Company, such that Lincoln would provide acquisition, property management and leasing services related to such retail properties. However, the Advisor and Lincoln were unable to enter into a satisfactory definitive agreement prior to the closing of the Mergers, and, on February 16, 2017, RCA provided Lincoln with notice of termination of the service agreement, the property management agreement and the leasing agreement. The Advisor and Lincoln continue to engage in discussions related to Lincoln providing such retail properties certain services.

Accounting Treatment for the Mergers

The Mergers will be accounted for under the acquisition method of accounting under U.S. GAAP. Under the acquisition method of accounting, the assets acquired and liabilities assumed from RCA will be recorded as of the acquisition date at their respective fair values. Any excess of purchase price over the fair values will be recorded as goodwill. Alternatively, if fair value of net assets acquired exceeds fair value of the Total Merger Consideration, the transaction could result in a bargain purchase gain that the Company would recognize immediately in earnings. Results of operations for RCA will be included in the Company’s consolidated financial statements subsequent to the Effective Date.

Merrill Lynch Disposition

The Company entered into a purchase and sale agreement dated as of October 11, 2016, as amended on November 10, 2016, November 18, 2016, November 23, 2016 and December 1, 2016, for the sale of three properties leased to Merrill Lynch, Pierce, Fenner & Smith (the "Merrill Lynch Properties") owned by the Company for a purchase price of $148.0 million, exclusive of closing costs. The Company consummated the disposition of the Merrill Lynch Properties on January 31, 2017. The disposal of the Merrill Lynch Properties does not represent a strategic shift.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3 —Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP").

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.

Reportable Segment

The Company has one reportable segment, income-producing properties, which consists of activities related to investing in real estate. 

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, and fair value measurements, as applicable.

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company evaluates the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive (loss) income. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings, fixtures and tenant improvements. Intangible assets may include the value of in-place leases and above- and below- market leases. In addition, any assumed mortgages receivable or payable and any assumed or issued noncontrolling interests are recorded at their estimated fair values.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease, including any below-market fixed rate renewal options for below-market leases.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above or below-market interest rates.

In allocating non-controlling interests, amounts are recorded based on the fair value of units issued at the date of acquisition, as determined by the terms of the applicable agreement.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including real estate valuations, prepared by independent valuation firms. The Company also considers information and other factors including: market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e.: location, size, demographics, value and comparative rental rates, tenant credit profile, store profitability and the importance of the location of the real estate to the operations of the tenant's business.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations and comprehensive (loss) income for all applicable periods.

Depreciation and Amortization

The Company is required to make subjective assessments as to the useful lives of the components of the Company's real estate investments for purposes of determining the amount of depreciation to record on an annual basis. These assessments have a direct impact on the Company's net income because if the Company were to shorten the expected useful lives of its real estate investments, it would depreciate these investments over fewer years, resulting in more depreciation expense and lower net income on an annual basis.

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are amortized as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

Assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining terms of the respective mortgages.

Impairment of Long-Lived Assets

When circumstances indicate the carrying value of a property may not be recoverable, we review the property for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Commercial Mortgage Loans

Commercial mortgage loans held for investment purposes are anticipated to be held until maturity, and accordingly, are carried at cost, net of unamortized acquisition fees and expenses capitalized, discounts or premiums and unfunded commitments. Commercial mortgage loans that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums and capitalized acquisition fees and expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income from debt investments in the Company's consolidated statements of operations and comprehensive (loss) income. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan exit fees is recognized in interest income from debt investments in the Company's consolidated statements of operations and comprehensive (loss) income.

Acquisition fees and expenses incurred in connection with the origination and acquisition of commercial mortgage loan investments are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment.

Commercial mortgage loans held for sale are carried at the lower of cost or fair value. The Company evaluates fair value on an individual loan basis. The amount by which cost exceeds fair value is accounted for as a valuation allowance, and changes in the valuation allowance are included in net income. Purchase discounts are no longer amortized during the period the loans are held for sale.

Cash and Cash Equivalents

Cash and cash equivalents include cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less and funds in overnight sweeps, in which excess funds over an established threshold are swept daily. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (the "FDIC") up to an insurance limit. As of December 31, 2016, the Company had deposits of $131.2 million of which $130.7 million were in excess of the amount insured by the FDIC. As of December 31, 2015, the Company had deposits of $130.5 million of which $129.7 million were in excess of the amount insured by the FDIC. Although the Company bears risk to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result thereof.

Deferred Costs, Net

Deferred costs, net consists of deferred financing costs, deferred commitment fees and deferred leasing costs, net of accumulated amortization.

Deferred financing costs represent legal fees and other costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method and included in interest expense on the accompanying consolidated statements of operations and comprehensive (loss) income. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity.  Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

Deferred commitment fees represent fees associated with obtaining commitments for financing. These costs are amortized over the term of the commitment period.

Deferred leasing costs, consisting primarily of lease commissions and payments made to execute new leases, are deferred and amortized over the term of the lease.

Revenue Recognition

The Company's revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Because many of the Company's leases provide for rental increases at specified intervals, straight-line basis accounting requires the Company to record a receivable, and include in revenues, unbilled rents receivable that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When the Company acquires a property, acquisition date is considered to be the commencement date for purposes of this calculation. For new leases after acquisition, the commencement date is considered to be the date the tenant takes control of the space. For lease modifications, the commencement date is considered to be the date the lease is executed. The Company defers the revenue related to lease payments received from tenants in advance of their due dates.

The Company owns certain properties with leases that include provisions for the tenant to pay contingent rental income based on a percent of the tenant's sales upon the achievement of certain sales thresholds or other targets which may be monthly, quarterly or annual targets. As the lessor to the aforementioned leases, the Company defers the recognition of contingent rental income, until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known. Contingent rental income is included in rental income on the accompanying consolidated statements of operations and comprehensive (loss) income.

The Company continually reviews receivables related to rent and unbilled rents receivable and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company records an increase in the Company's allowance for uncollectible accounts or records a direct write-off of the receivable in the Company's consolidated statements of operations and comprehensive (loss) income.

Cost recoveries from tenants are included in operating expense reimbursements on the accompanying consolidated statements of operations and comprehensive (loss) income in the period the related costs are incurred, as applicable.

Offering and Related Costs

Offering and related costs included all expenses incurred in connection with the Company's IPO. Some offering costs (other than selling commissions and the dealer manager fee) of the Company were paid by the Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. These costs included but were not limited to (i) legal, accounting, printing, mailing, and filing fees; (ii) escrow related fees; (iii) reimbursement of the Former Dealer Manager for amounts it paid to reimburse the itemized and detailed due diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organization and offering costs paid by them on behalf of the Company, provided that the Advisor is obligated to reimburse the Company to the extent organization and offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in its offering exceed 2.0% of gross offering proceeds. As a result, these costs were only a liability of the Company to the extent selling commissions, the dealer manager fees and other organization and offering costs did not exceed 12.0% of the gross proceeds determined at the end of the IPO. As of the end of the IPO, offering costs were less than 12.0% of the gross proceeds received in the IPO (See Note 12 —Related Party Transactions and Arrangements).

Share-Based Compensation

The Company has a stock-based award plan, which is accounted for under the guidance for share based payments. The expense for such awards is included in general and administrative expenses and is recognized in accordance with the service period required or when the requirements for exercise of the award have been met (See Note 14 —Share-Based Compensation).

Income Taxes

The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with the taxable year ended December 31, 2013. The Company believes that, commencing with such taxable year, it has been organized and has operated in a manner so that it qualifies for taxation as a REIT under the Code. The Company intends to continue to operate in such a manner, but no assurance can be given that the Company will operate in a manner so as to remain qualified as a REIT. In order to continue to qualify for taxation as a REIT, the Company must distribute annually at least 90% of its REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard for the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organizational and operational requirements. If the Company continues to qualify for taxation as a REIT, it generally will not be subject to federal corporate income tax on that portion of its REIT taxable income that it distributes to its stockholders. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and properties, as well as federal income and excise taxes on its undistributed income.

The amount of distributions payable to the Company's stockholders is determined by the board of directors and is dependent on a number of factors, including funds available for distribution, financial condition, capital expenditure requirements, as applicable, and annual distribution requirements needed to qualify and maintain the Company's status as a REIT under the Code.

The following table details from a tax perspective, the portion of distributions classified as return of capital, ordinary dividend income and capital gain, per share per annum, for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
	2016				2015				2014
Return of capital	76.0	%	$	1.25	89.9	%	$	1.48	55.5	%	$	0.91
Ordinary dividend income	24.0	%	0.40		10.1	%	0.17		44.2	%	0.73
Capital gain	—	%	—		—	%	—		0.3	%	0.01
Total	100.0	%	$	1.65	100.0	%	$	1.65	100.0	%	$	1.65

Per Share Data

Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock considers the effect of potentially dilutive instruments outstanding during such period.

Recently Adopted Accounting Pronouncements

In February 2015, the Financial Accounting Standards Board ("FASB") amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company elected to adopt this guidance effective January 1, 2016. As a result, the Company reclassified $15.5 million and $20.1 million of deferred issuance costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable in the Company's consolidated balance sheets as of December 31, 2016 and December 31, 2015, respectively.

In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016, electing to account for forfeitures when they occur, and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company is evaluating the impact of the implementation of this guidance, including performing a preliminary review of all revenue streams to identify any differences in the timing, measurement or presentation of revenue recognition. The Company is continuing to evaluate the allowable methods of adoption.

In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity's accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of the new guidance.

In February 2016, the FASB issued an update which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company has begun developing an inventory of all leases as well as identifying any non-lease components in our lease arrangements. The Company is continuing to evaluate the impact of this new guidance.

In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. The company is currently evaluating the impact of this new guidance.

In August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In October 2016, the FASB issued guidance relating to interest held through related parties that are under common control, where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In January 2017, the FASB issued guidance that revises the definition of a business. This new guidance is applicable when evaluating whether an acquisition should be treated as either a business acquisition or an asset acquisition. Under the revised guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset or group of similar assets, the assets acquired would not be considered a business. The revised guidance is effective for reporting periods beginning after December 15, 2017, and the amendments will be applied prospectively. Early application is permitted only for transactions that have not previously been reported in issued financial statements. The Company has assessed this revised guidance and expects, based on historical property acquisitions, for future properties acquired to qualify as an asset acquisition rather than a business acquisition, which would result in the capitalization of related transaction costs. The Company has not adopted this guidance as of December 31, 2016.

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Real Estate Investments

12 Months Ended

Dec. 31, 2016

Real Estate Investments, Net [Abstract]

Real Estate Investments

Note 4 — Real Estate Investments

The Company owned 455 properties, which were acquired for investment purposes, as of December 31, 2016. The following table presents the allocation of assets acquired and liabilities assumed during the years ended December 31, 2016 and 2014. No properties were acquired during the year ended December 31, 2015.

(Dollar amounts in thousands)	Year Ended December 31, 2016			Year Ended December 31, 2014
Real estate investments, at cost:
Land	$	1,729		$	210,379
Buildings, fixtures and improvements	29,664			672,121
Total tangible assets	31,393			882,500
Acquired intangibles:
In-place leases (1)	3,162			175,152
Above-market lease assets (1)	548			13,403
Above-market ground lease liability (1)	(85		)	—
Below-market lease liabilities (1)	(774		)	(19,692		)
Total intangible assets, net	2,851			168,863
Mortgage notes payable assumed	—			(462,238		)
Premiums on mortgage notes payable assumed	—			(27,862		)
Deposits paid in prior periods	—			(33,035		)
Cash paid for acquired real estate investments	$	34,244		$	528,228
Number of properties purchased	4			224

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(1) Weighted-average remaining amortization periods for in-place leases, above-market lease assets, above-market ground lease liability and below-market lease liabilities acquired during the year ended December 31, 2016 were 9.5 years, 9.6 years, 48.6 years and 9.5 years, respectively, as of each property's respective acquisition date.

Total acquired intangible lease assets and liabilities consist of the following as of the dates presented:

	December 31, 2016						December 31, 2015
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	286,548	$	95,547	$	191,001	$	305,245	$	68,278	$	236,967
Above-market leases	13,581		8,106		5,475		13,783		5,555		8,228
Total acquired intangible lease assets	$	300,129	$	103,653	$	196,476	$	319,028	$	73,833	$	245,195
Intangible liabilities:
Above-market ground lease liability	$	85	$	1	$	84	$	—	$	—	$	—
Below-market lease liabilities	18,443		4,612		13,831		20,623		2,490		18,133
Total acquired intangible lease liabilities	$	18,528	$	4,613	$	13,915	$	20,623	$	2,490	$	18,133

The following table presents amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(In thousands)	2016			2015			2014
In-place leases	$	34,247		$	34,600		$	30,808
Total added to depreciation and amortization	$	34,247		$	34,600		$	30,808
Above-market leases	$	(2,943	)	$	(3,006	)	$	(2,549	)
Below-market lease liabilities	2,465			1,340			1,128
Total deducted from rental income	$	(478	)	$	(1,666	)	$	(1,421	)
Above-market ground lease liability	$	(1	)	$	—		$	—
Total deducted from property operating expense	$	(1	)	$	—		$	—

The following table provides the projected amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the next five years:

(In thousands)	2017			2018			2019			2020			2021
In-place leases	$	31,788		$	22,598		$	22,581		$	20,964		$	19,718
Total to be added to depreciation and amortization	$	31,788		$	22,598		$	22,581		$	20,964		$	19,718
Above-market leases	$	(2,815	)	$	(526	)	$	(526	)	$	(526	)	$	(526	)
Below-market lease liabilities	2,332			963			963			963			963
Total to be added to rental income	$	(483	)	$	437		$	437		$	437		$	437
Above-market ground lease liability	$	(2	)	$	(2	)	$	(2	)	$	(2	)	$	(2	)
Total to be deducted from property operating expense	$	(2	)	$	(2	)	$	(2	)	$	(2	)	$	(2	)

The following table presents unaudited pro forma information as if the acquisitions during the year ended December 31, 2016 had been consummated on January 1, 2015:

	Year Ended December 31,
(In thousands, except per share data)	2016 (1)			2015
Pro forma revenues	$	178,057		$	177,352
Pro forma net loss	$	(54,129	)	$	(19,902	)
Basic and diluted pro forma net loss per share	$	(0.83	)	$	(0.30	)

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(1) For the year ended December 31, 2016, aggregate revenues and net income derived from the Company's 2016 acquisitions (for the Company's period of ownership) were $2.5 million and $1.1 million, respectively.

The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items:

(In thousands)	Future Minimum Base Rent Payments
2017	$	159,895
2018	153,841
2019	155,931
2020	150,760
2021	149,425
Thereafter	763,420
	$	1,533,272

The following table lists the tenants (including, for this purpose, all affiliates of such tenants) from which the Company derives annualized rental income on a straight-line basis constituting 10.0% or more of the Company's consolidated annualized rental income on a straight-line basis for all portfolio properties as of the dates indicated:

	December 31,
Tenant	2016	2015
SunTrust Bank	17.7%	17.9%
Sanofi US	11.4%	11.6%
C&S Wholesale Grocer	10.2%	10.4%

The termination, delinquency or non-renewal of leases by one or more of the above tenants may have a material adverse effect on revenues. No other tenant represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of December 31, 2016 and 2015.

The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis each represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of December 31, 2016 and 2015:

	December 31,
State	2016	2015
New Jersey	20.0%	20.3%
Georgia	11.0%	11.2%

The Company did not own properties in any other state that in total represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of December 31, 2016 and 2015.

Real Estate Held For Sale

The Company entered into a purchase and sale agreement dated as of October 11, 2016, as amended on November 10, 2016, November 18, 2016, November 23, 2016 and December 1, 2016, for the sale of the Merrill Lynch Properties for a purchase price of $148.0 million, exclusive of closing costs. The buyer's obligation to close on its acquisition of the Merrill Lynch Properties was subject to the satisfactory completion of the buyer's due diligence review, which the buyer completed on December 1, 2016, as well as a financing contingency, which expired on December 13, 2016. The Company also entered into purchase and sale agreements during 2016 for the sale of two single-tenant net lease properties operated by SunTrust Bank, a wholly owned subsidiary of SunTrust Banks, Inc. ("SunTrust") in Sylva, North Carolina and Landover, Maryland for an aggregate contract price of $1.0 million, exclusive of closing costs. These properties were subsequently sold during the first quarter of 2017.

Concurrently with entering into these agreements and satisfactory completion of the conditions noted above, the Company stopped recognizing depreciation and amortization expense and reclassified the long-lived assets associated with these properties as held for sale on the consolidated balance sheet as of December 31, 2016. The disposal of the properties referenced above does not represent a strategic shift. Accordingly, the operating results of these properties remain classified within continuing operations for all periods presented.

The Company recognized impairment charges of $1.4 million related to the two SunTrust properties, as the carrying amount of the long-lived assets associated with them was greater than the Company's estimate of their fair value less estimated costs to sell, which is reflected in impairment charges on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. No impairment was recognized related to the Merrill Lynch Properties, as the carrying amount of the long-lived assets associated with them was less than the Company's estimate of their fair value less estimated costs to sell.

The following table details the major classes of assets associated with the properties that have been reclassified as held for sale as of December 31, 2016. There were no properties held for sale as of December 31, 2015:

(Dollar amounts in thousands)	Year Ended December 31, 2016
Real estate investments held for sale, at cost:
Land	$	7,225
Buildings, fixtures and improvements	142,798
Acquired intangible lease assets	18,145
Total real estate assets held for sale, at cost	168,168
Less accumulated depreciation and amortization	(29,213		)
Total real estate investments held for sale, net	138,955
Impairment charges related to properties reclassified as held for sale	(1,353		)
Assets held for sale	$	137,602

Real Estate Sales

During the year ended December 31, 2016, the Company sold 12 single-tenant net lease properties operated by SunTrust for an aggregate contract price of $30.2 million, exclusive of closing costs. The sale of these properties resulted in impairment charges of $1.3 million, which is reflected in impairment charges on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016, and a gain of $0.5 million, which is reflected in gain on sale of real estate investments on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. The Company did not sell any properties during the years ended December 31, 2015 and 2014.

The disposal of the properties referenced above did not represent a strategic shift. Accordingly, the operating results of the properties sold remain classified within continuing operations for all periods presented until the date of disposal.

Impairment of Held for Use Real Estate Investments

As of December 31, 2016, the Company owned 57 held for use single-tenant net lease properties operated by SunTrust which had lease terms set to expire between December 31, 2017 and March 31, 2018. As a result, the Company reconsidered its intended holding period for these properties and evaluated the impact on its ability to recover the carrying value of such properties based on the expected cash flows over its intended holding period. The Company primarily used a market approach to estimate the future cash flows expected to be generated. This approach involved evaluating comparable sales of properties in the same geographic region as the SunTrust properties in order to generate an estimated sale price. The Company made certain assumptions in this approach including, among others, that the properties in the comparable sales used in the analysis share similar characteristics to the SunTrust properties, and that market and economic conditions at the time of any potential sales of these SunTrust properties, such as discount rates, demand for space, competition for tenants, changes in market rental rates, and costs to operate the property, would be similar to those in the comparable sales analyzed. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analysis may not be achieved, and actual losses or impairment may be realized in the future.

For some of the held for use SunTrust properties noted above, the Company has an executed letter of intent ("LOI") or purchase and sale agreement ("PSA") to sell the property. In those instances, the Company used the sale price from the LOI or PSA to estimate the future cash flows expected to be generated. The Company made certain assumptions in this approach as well, mainly that the sale of these properties would close at the terms specified in the LOI or PSA. There can be no guarantee that the sales of these properties will close under these terms or at all.

As a result of its consideration of impairment, the Company determined that the carrying value of 43 of the held for use SunTrust properties noted above exceeded their estimated fair values and recognized an aggregate impairment charge of $24.7 million, which is included on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. The estimated fair value of the remaining 14 properties evaluated was greater than their carrying value. No impairment was recognized during the years ended December 31, 2015 and 2014.

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Commercial Mortgage Loans

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Commercial Mortgage Loans

Note 5 — Commercial Mortgage Loans

The following table is a summary of the Company's commercial loan portfolio:

		December 31, 2016				December 31, 2015
Loan Type	Property Type	Par Value		Percentage		Par Value			Percentage
		(In thousands)				(In thousands)
Senior	Student Housing — Multifamily	$	17,200	100	%	$	17,200		21.6	%
Senior	Retail	—		—	%	18,150		(1)	22.7	%
Senior	Hospitality	—		—	%	44,500		(1)	55.7	%
		$	17,200	100.0	%	$	79,850		100.0	%

_____________________________________

(1) These loans were classified as held for sale as of December 31, 2015 and were sold during the year ended December 31, 2016 for $56.9 million. The Company recognized a loss of $5.5 million on its commercial mortgage loans held for sale during the year ended December 31, 2015.

Credit Characteristics

As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The loans are scored on a scale of 1 to 5 as follows:

Investment Rating	Summary Description
1	Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2	Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3	Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4	Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative.
5	Underperforming investment with expected loss of interest and some principal.

All commercial mortgage loans are assigned an initial risk rating of 2. As of December 31, 2016, the risk rating of the Company's commercial loan held for investment was 3. As of December 31, 2016, the Company did not have any loans that were past due on their payments, in non-accrual status or impaired. No allowance for loan losses has been recorded as of December 31, 2016.

For the year ended December 31, 2016, the activity in the Company's commercial mortgage loans, held for investment, was as follows:

(In thousands)	Year Ended December 31, 2016		December 31, 2015
Beginning balance	$	17,135	$	—
Originations	—		79,410
Reclassifications to assets held for sale	—		(56,884		)
Loss on assets held for sale	—		(5,476		)
Discount accretion and premium amortization (1)	40		85
Ending balance	$	17,175	$	17,135

_____________________________________

(1) Includes amortization of capitalized origination fees and expenses.

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Commercial Mortgage-Backed Securities

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Commercial Mortgage-Backed Securities

Note 6 — Commercial Mortgage-Backed Securities

The following table details the realized loss on commercial mortgage-backed securities ("CMBS") sold during the year ended December 31, 2015. No CMBS were acquired or sold during the years ended December 31, 2016 or 2014:

(In thousands)	Amortized Cost		Sale Price		Realized Loss
Year Ended December 31, 2015	$	30,209	$	28,624	$	1,585

The Company did not have any investments in CMBS as of December 31, 2016 or 2015.

Note 7 — Other Real Estate Securities

The following table details the realized gains on sale of the Company's other real estate securities, which consisted of redeemable preferred stock, during the years ended December 31, 2015 and 2014. There were no other real estate securities sold during the year ended December 31, 2016:

(In thousands)	Aggregate Cost Basis		Sale Price		Realized Gain, Net
Year Ended December 31, 2015	$	18,528	$	19,266	$	738
Year Ended December 31, 2014	$	47,020	$	47,317	$	297

As of December 31, 2016 and 2015, the Company had no investments in other real estate securities.

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Other Real Estate Securities

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Other Real Estate Securities

Note 6 — Commercial Mortgage-Backed Securities

The following table details the realized loss on commercial mortgage-backed securities ("CMBS") sold during the year ended December 31, 2015. No CMBS were acquired or sold during the years ended December 31, 2016 or 2014:

(In thousands)	Amortized Cost		Sale Price		Realized Loss
Year Ended December 31, 2015	$	30,209	$	28,624	$	1,585

The Company did not have any investments in CMBS as of December 31, 2016 or 2015.

Note 7 — Other Real Estate Securities

The following table details the realized gains on sale of the Company's other real estate securities, which consisted of redeemable preferred stock, during the years ended December 31, 2015 and 2014. There were no other real estate securities sold during the year ended December 31, 2016:

(In thousands)	Aggregate Cost Basis		Sale Price		Realized Gain, Net
Year Ended December 31, 2015	$	18,528	$	19,266	$	738
Year Ended December 31, 2014	$	47,020	$	47,317	$	297

As of December 31, 2016 and 2015, the Company had no investments in other real estate securities.

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Mortgage Notes Payable

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Mortgage Notes Payable

Note 8 — Mortgage Notes Payable

The Company's mortgage notes payable as of December 31, 2016 and 2015 consisted of the following:

		Outstanding Loan Amount as of						Effective Interest Rate as of
		December 31,						December 31,
Portfolio	Encumbered Properties	2016			2015			2016			2015			Interest Rate	Maturity	Anticipated Repayment
		(In thousands)			(In thousands)
SAAB Sensis I	1	$	7,841		$	8,190		5.93	%		6.01	%		Fixed	Apr. 2025	Apr. 2025
SunTrust Bank II	30	25,000			25,000			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
C&S Wholesale Grocer I	4	82,313			82,313			5.48	%		5.56	%		Fixed	Apr. 2037	Apr. 2017
SunTrust Bank III	112	88,567			99,677			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
SunTrust Bank IV	27	21,243			25,000			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
Sanofi US I	1	125,000			125,000			5.16	%		5.16	%		Fixed	Jul. 2026	Jan. 2021
Stop & Shop I	4	38,271			38,936			5.63	%		5.63	%		Fixed	Jun. 2041	Jun. 2021
Multi-Tenant Mortgage Loan	268	649,532			649,532			4.36	%		4.36	%		Fixed	Sep. 2020	Sep. 2020
Gross mortgage notes payable	447	1,037,767			1,053,648			4.75	%	(1)	4.77	%	(1)
Deferred financing costs, net of accumulated amortization		(15,492		)	(20,066		)
Mortgage notes payable, net of deferred financing costs		$	1,022,275		$	1,033,582

_____________________________________

(1) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated.

As of December 31, 2016 and 2015, the Company had pledged $1.9 billion in real estate investments as collateral for its mortgage notes payable. This real estate is not available to satisfy other debts and obligations unless first satisfying the mortgage notes payable on the properties.

During August 2015, certain subsidiaries of the Company entered into a $655.0 million mortgage loan agreement ("Multi-Tenant Mortgage Loan") with Barclays Bank PLC, Column Financial Inc. and UBS Real Estate Securities Inc. (together, the "Lenders"). The Multi-Tenant Mortgage Loan has a stated maturity of September 6, 2020 and a stated annual interest rate of 4.30%. As of December 31, 2016, the Multi-Tenant Mortgage Loan was secured by mortgage interests in 268 of the Company's properties. As of December 31, 2016, the outstanding balance under the Multi-Tenant Mortgage Loan was $649.5 million.

At the closing of the Multi-Tenant Mortgage Loan, the Lenders placed $42.5 million of the proceeds from the Multi-Tenant Mortgage Loan in escrow, to be released to the Company upon certain conditions, including the receipt of ground lease estoppels, performance of certain repairs and receipt of environmental insurance. As of December 31, 2016, the Lenders had released $34.6 million of the amount originally placed in escrow to the Company. As of December 31, 2016, $7.9 million of the proceeds from the Multi-Tenant Mortgage Loan remained in escrow and is included in restricted cash on the consolidated balance sheet as of December 31, 2016.

The following table summarizes the scheduled aggregate principal payments on mortgage notes payable based on stated maturity dates for the five years subsequent to December 31, 2016 and thereafter:

(In thousands)	Future Principal Payments
2017	$	1,080
2018	1,143
2019	1,211
2020	650,808
2021	910
Thereafter	382,615
	$	1,037,767

The Company's mortgage notes payable agreements require the compliance of certain property-level financial covenants including debt service coverage ratios. As of December 31, 2016, the Company was in compliance with financial covenants under its mortgage notes payable agreements.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 9 — Fair Value Measurements

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred sources of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3 — Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

The Company had impaired real estate investments held for sale, which were carried at fair value on the consolidated balance sheet as of December 31, 2016. Impaired real estate investments held for sale were valued using the sale price from the PSA less costs to sell, which is an observable input. As a result, the Company's impaired real estate investments held for sale are classified in Level 2 of the fair value hierarchy. There were no impaired real estate investments held for sale as of December 31, 2015.

The Company also had impaired real estate investments held for use, which were carried at fair value on the consolidated balance sheet as of December 31, 2016. As of December 31, 2016, the Company owned 57 held for use single-tenant net lease properties operated by SunTrust which had lease terms set to expire between December 31, 2017 and March 31, 2018. As a result, the Company reconsidered its intended holding period for these properties and evaluated the impact on its ability to recover the carrying value of such properties based on the expected cash flows over its intended holding period. As a result of its consideration of impairment, the Company determined that the carrying value of 43 of the held for use SunTrust properties noted above exceeded their estimated fair values and recognized an aggregate impairment charge of $24.7 million, which is included on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2016. The Company primarily used a market approach to estimate the future cash flows expected to be generated. This approach involved evaluating comparable sales of properties in the same geographic region as the SunTrust properties in order to generate an estimated sale price, which is an unobservable input. As a result, the impaired properties that the Company evaluated using this approach are classified in Level 3 of the fair value hierarchy.

For some of the SunTrust properties noted above, the Company has an executed LOI or PSA to sell the property. In those instances, the Company used the sale price from the LOI or PSA to estimate the future cash flows expected to be generated, which is an observable input. As a result, the impaired properties that the Company evaluated using this approach are classified in Level 2 of the fair value hierarchy.

The Company had commercial mortgage loans held for sale, which were carried at fair value on the consolidated balance sheet as of December 31, 2015. Commercial mortgage loans held for sale were valued using the sale price from the term sheet, which is an observable input. As a result, the Company's commercial mortgage loans held for sale were classified in Level 2 of the fair value hierarchy. There were no commercial mortgage loans held for sale as of December 31, 2016.

The following table presents information about the Company's assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2016 and 2015, aggregated by the level in the fair value hierarchy within which those instruments fall. There were no financial instruments measured at fair value on a recurring basis as of December 31, 2016 or 2015:

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
December 31, 2016
Impaired real estate investments held for sale	$	—	$	961	$	—	$	961
Impaired real estate investments held for use	—		6,525		45,032		51,557
Total	$	—	$	7,486	$	45,032	$	52,518
December 31, 2015
Commercial mortgage loans held for sale	$	—	$	56,884	$	—	$	56,884

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets and liabilities. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2016 and 2015. There were no transfers into or out of Level 3 of the fair value hierarchy during the year ended December 31, 2016 and 2015.

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable and accrued expenses and distributions payable approximates their carrying value on the consolidated balance sheets due to their short-term nature. The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets as of December 31, 2016 and 2015 are reported in the following table:

		Carrying Amount at		Fair Value at		Carrying Amount at		Fair Value at
(In thousands)	Level	December 31, 2016		December 31, 2016		December 31, 2015		December 31, 2015
Commercial mortgage loan, held for investment	3	$	17,175	$	17,200	$	17,135	$	17,200
Gross mortgage notes payable and mortgage premiums, net	3	$	1,048,448	$	1,076,065	$	1,068,540	$	1,103,352

The fair value of the commercial mortgage loan is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments. The fair value of gross mortgage notes payable is based on combinations of independent third party estimates and management's estimates of market interest rates.

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Common Stock

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Common Stock

Note 10 — Common Stock

As of December 31, 2016 and 2015, the Company had 65.8 million and 65.0 million shares of common stock outstanding, respectively, including unvested restricted shares and shares issued pursuant to the DRIP.

In April 2013, the Company's board of directors authorized, and the Company declared, a distribution payable on a monthly basis to stockholders of record on each day at a rate equal to $0.00452054795 per day, which is equivalent to $1.65 per annum, per share of common stock. In March 2016, the Company’s board of directors ratified the existing distribution amount equivalent to $1.65 per annum, and, for calendar year 2016, affirmed a change to the daily distribution amount to $0.00450819672 per day per share of common stock, effective January 1, 2016, to reflect that 2016 is a leap year. Distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distributions payments are not assured.

On March 17, 2016, the Company's board of directors approved an estimated net asset value per share of the Company's common stock ("Estimated Per-Share NAV) as of December 31, 2015, which was published on March 18, 2016. The Company intends to publish subsequent valuations of Estimated Per-Share NAV periodically at the discretion of the Company's board of directors, provided that such valuations will be made at least once annually. The Estimated Per-Share NAV does not represent: (1) the amount at which the Company's shares would trade on a national securities exchange or a third party would pay for the Company, (2) the amount a stockholder would obtain if he or she tried to sell his or her shares or (3) the amount stockholders would receive if the Company liquidated its assets and distributed the proceeds after paying all of its expenses and liabilities. In addition, the Estimated Per-Share NAV does not reflect events subsequent to December 31, 2015 that would have affected the Company's net asset value.

Share Repurchase Program

The Company's board of directors has adopted the share repurchase program (as amended and restated, the "SRP"), which permits investors to sell their shares back to the Company after they have held them for at least one year, subject to certain conditions and limitations. The Company may repurchase shares on a semiannual basis, at each six-month period ending June 30 and December 31.

Under the SRP, the repurchase price per share for requests other than for death or disability are as follows:

• after one year from the purchase date — 92.5% of the then-current Estimated Per-Share NAV;

• after two years from the purchase date — 95.0% of the then-current Estimated Per-Share NAV;

• after three years from the purchase date — 97.5% of the then-current Estimated Per-Share NAV; and

• after four years from the purchase date — 100.0% of the then-current Estimated Per-Share NAV.

In the case of requests for death or disability, the repurchase price per share will be equal to Estimated Per-Share NAV at the time of repurchase.

Under the SRP, repurchases at each semiannual period are limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Repurchases pursuant to the SRP for any given semiannual period are funded from proceeds received during that same semiannual period through the issuance of common stock pursuant to the DRIP, as well as any reservation of funds the board of directors may, in its sole discretion, make available for this purpose. If the establishment of an Estimated Per-Share NAV occurs during any semiannual period, any repurchase requests received during such semiannual period are paid at a price based on Estimated Per-Share NAV applicable on the last day of the semiannual period, as described above.

On June 28, 2016, in consideration of the strategic review process, the board of directors of the Company determined to amend the SRP to provide for one twelve-month repurchase period for calendar year 2016 instead of two semi-annual periods ending June 30 and December 31. The annual limit on repurchases under the SRP remains unchanged and continues to be limited to a maximum of 5.0% of the weighted average number of shares of common stock of the Company outstanding during its prior fiscal year and is subject to the terms and limitations set forth in the SRP. Following calendar year 2016, the repurchase periods will return to two semi-annual periods and applicable limitations set forth in the SRP. On December 27, 2016, the board of directors of the Company approved an amendment to the SRP to provide that repurchase proceeds for any repurchase requests made during the twelve-month period that commenced on January 1, 2016 will be paid within 31 days of the earlier to occur of (1) the consummation of the Merger, and (2) the termination of the Merger Agreement.

The Company's board of directors reserves the right, in its sole discretion, at any time and from time to time, to reject any request for repurchase, change the purchase price for repurchases or otherwise amend the terms of, suspend or terminate the SRP pursuant to any applicable notice requirements under the SRP. Due to these limitations, the Company cannot guarantee that it will be able to accommodate all repurchase requests.

When a stockholder requests repurchases and the repurchases are approved, the Company reclassifies such an obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased have the status of authorized but unissued shares.

The following table summarizes the repurchases of shares under the SRP cumulatively through December 31, 2016:

	Number of Shares	Weighted-Average Price per Share
Cumulative repurchases as of December 31, 2013	8,082	$	24.98
Year ended December 31, 2014	295,825	23.99
Year ended December 31, 2015	1,769,738	24.13
Year ended December 31, 2016	7,854	24.17
Cumulative repurchases as of December 31, 2016	2,081,499	$	24.12

During the year ended December 31, 2016, 6.8 million shares were requested for repurchase. In March 2017, the Company's board of directors approved the repurchase of 0.8 million of the requested shares at a weighted average repurchase price of $23.84. The approved repurchase requests will be paid within 31 days of the consummation of the Merger.

Distribution Reinvestment Plan

Pursuant to the DRIP, the Company's stockholders could elect to reinvest distributions by purchasing shares of common stock. Until November 14, 2014, the Company offered shares pursuant to the DRIP at $23.75, which was 95.0% of the initial offering price of shares of common stock in the IPO. Effective November 14, 2014, the Company began offering shares pursuant to the DRIP at the then-current Estimated Per-Share NAV. The DRIP was suspended following the payment of the Company's June 2015 distribution on July 1, 2015.

On April 1, 2016, the Company reinstated the DRIP and registered an additional 7.7 million shares of common stock, offered at the then-current Estimated Per-Share NAV, for use under the DRIP pursuant to a registration statement on Form S-3 (File No. 333-210532). On August 30, 2016, in consideration of the Merger, the Company's board of directors determined to suspend the DRIP effective immediately. Accordingly, the final issuance of shares of common stock pursuant to the DRIP prior to the suspension occurred in connection with the Company's July 2016 distribution, paid in August 2016. Following the effectiveness of the joint proxy statement/prospectus in relation to the Mergers on December 16, 2016, the Company reinstated the DRIP.

No dealer manager fees or selling commissions were paid with respect to shares purchased pursuant to the DRIP. Shares issued pursuant to the DRIP are recorded within stockholders' equity in the accompanying consolidated balance sheets in the period distributions are declared. During the year ended December 31, 2016, approximately 0.8 million shares of common stock were issued pursuant to the DRIP.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 11 — Commitments and Contingencies

Future Minimum Ground Lease Payments

The Company entered into ground lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter:

(In thousands)	Future Minimum Base Rent Payments
2017	$	921
2018	903
2019	902
2020	674
2021	345
Thereafter	4,630
	$	8,375

Unfunded Commitments Under Commercial Mortgage Loans

As of December 31, 2016, the Company had unfunded commitments which will generally be funded to finance capital expenditures by the borrowers under the Company's commercial mortgage loan. The following table reflects the expiration of these commitments over the next five years and thereafter:

(In thousands)	Funding Expiration
2017	$	2,450	(1)
2018	—
2019	—
2020	—
2021	—
Thereafter	—
	$	2,450

_____________________________________

(1) This commitment expired in February 2017 with no funding provided by the Company.

Litigation and Regulatory Matters

On January 13, 2017, four affiliated stockholders of RCA filed in the United States District Court for the District of Maryland a putative class action lawsuit against the Company, Edward M. Weil, Jr., Leslie D. Michelson, Edward G. Rendell (Weil, Michelson and Rendell, the “Director Defendants”), AR Global, and the Company, alleging violations of Sections 14(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) by RCA and the Director Defendants, violations of Section 20(a) of the Exchange Act by AR Global and the Director Defendants, breaches of fiduciary duty by the Director Defendants, and aiding and abetting breaches of fiduciary duty by AR Global and the Company in connection with the negotiation of and proxy solicitation for a shareholder vote on the proposed merger of the Company and RCA and an amendment to RCA's Articles of Incorporation.  Plaintiffs seek on behalf of the putative class rescission of the merger transaction, which was voted on and approved by stockholders on February 13, 2017, and closed on February 17, 2017, together with unspecified rescissory damages, unspecified actual damages, and costs and disbursements of the action. The Court has not selected a lead plaintiff and has adjourned the deadline for Defendants to answer or move against the Complaint until 45 days after a Court-appointed lead plaintiff either adopts the current Complaint or files an Amended Complaint. The Company and the Director Defendants deny wrongdoing and liability and intend to vigorously defend the action. Due to the early stage of the litigation, no estimate of a probable loss or any reasonable possible losses are determinable at this time. No provisions for such losses have been recorded in the accompanying consolidated financial statements for the year ended December 31, 2016.

There are no other material legal or regulatory proceedings pending or known to be contemplated against the Company.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company maintains environmental insurance for its properties that provides coverage for potential environmental liabilities, subject to the policy's coverage conditions and limitations. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on its financial position or results of operations.

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Related Party Transactions and Arrangements

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions and Arrangements

Note 12 —Related Party Transactions and Arrangements

As of December 31, 2016 and 2015, American Finance Special Limited Partner, LLC (the "Special Limited Partner"), an entity controlled by the Sponsor, owned 8,888 shares of the Company's outstanding common stock and 90 units of limited partner interests in the OP ("OP Units"). After holding the OP Units for a period of one year, or upon liquidation of the OP or sale of substantially all of the assets of the OP, holders of OP Units have the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, in accordance with the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.

Realty Capital Securities, LLC (the "Former Dealer Manager") served as the dealer manager of the IPO. American National Stock Transfer, LLC ("ANST"), a subsidiary of the parent company of the Former Dealer Manager, provided other general professional services through January 2016. RCS Capital Corporation ("RCAP"), the parent company of the Former Dealer Manager and certain of its affiliates that provided services to the Company, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was under common control with the Sponsor. In May 2016, RCAP and its affiliated debtors emerged from bankruptcy under the new name, Aretec Group, Inc. On March 8, 2017, the creditor trust established in connection with the RCAP bankruptcy filed suit against the Sponsor, the Advisor, advisors of other entities sponsored by the Sponsor, and the Sponsor’s principals (including Edward M. Weil, Jr.). The suit alleges, among other things, certain breaches of duties to RCAP. The Company is not named in the suit, nor are there any allegations related to the services the Advisor provides to the Company.  The Advisor has informed the Company that it believes that the suit is without merit and intends to defend against it vigorously.

Fees Paid in Connection With the Operations of the Company

On April 29, 2015, the independent directors of the board of directors unanimously approved certain amendments to the Amended and Restated Advisory Agreement, as amended (the "Original A&R Advisory Agreement"), by and among the Company, the OP and the Advisor (the "Second A&R Advisory Agreement"). The Second A&R Advisory Agreement, which superseded the Original A&R Advisory Agreement, took effect on July 20, 2015, the date on which the Company filed certain changes to the Company's Articles of Amendment and Restatement, which were approved by the Company's stockholders on June 23, 2015. The initial term of the Second A&R Advisory Agreement is 20 years beginning on April 29, 2015, and is automatically renewable for another 20-year term upon each 20-year anniversary unless terminated by the board of directors for cause.

Prior to January 16, 2016, the Advisor was paid an acquisition fee equal to 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment. The Advisor also has been and may continue to be reimbursed for costs it incurs in providing investment-related services, or "insourced expenses." These insourced expenses may not exceed, 0.5% of the contract purchase price of each acquired property and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company has paid and may continue to pay third party acquisition expenses. The aggregate amount of acquisition fees and financing coordination fees (as described below) were not to exceed 1.5% of the contract purchase price and the amount advanced for a loan or other investment for all the assets acquired. The Second A&R Advisory Agreement terminated the acquisition fee and financing coordination fee (both as defined in the Second A&R Advisory Agreement) effective January 16, 2016. As of January 16, 2016, aggregate acquisition fees and financing coordination fees did not exceed the 1.5% threshold. Further, the total of all acquisition fees, acquisition expenses and any financing coordination fees payable was not to exceed 4.5% of the Company's total portfolio contract purchase price or 4.5% of the amount advanced for the Company's total portfolio of loans or other investments. As of January 16, 2016, the total of all cumulative acquisition fees, acquisition expenses and financing coordination fees did not exceed the 4.5% threshold.

Additionally, prior to January 16, 2016, if the Advisor provided services in connection with the origination or refinancing of any debt that the Company obtained and used to acquire properties or to make other permitted investments, or that was assumed, directly or indirectly, in connection with the acquisition of properties, the Company paid the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations.

Prior to April 15, 2015, in connection with asset management services provided by the Advisor, the Company issued to the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." The Class B Units were intended to be profit interests and will vest, and no longer be subject to forfeiture, at such time as: (a) the value of the OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 6.0% cumulative, pretax, non-compounded annual return thereon (the "economic hurdle"); (b) any one of the following events occurs concurrently with or subsequently to the achievement of the economic hurdle described above: (i) a listing; (ii) a transaction to which the Company or the OP is a party, as a result of which OP Units or the Company's common stock are exchanged for, or converted into, the right, or the holders of such securities are otherwise entitled, to receive cash, securities or other property or any combination thereof; or (iii) the termination of the advisory agreement without cause; and (c) the Advisor pursuant to the advisory agreement is providing services to the Company immediately prior to the occurrence of an event of the type described in clause (b) above, unless the failure to provide such services is attributable to the termination without cause of the advisory agreement by an affirmative vote of a majority of the Company's independent directors after the economic hurdle described above has been met. Unvested Class B Units will be forfeited immediately if: (x) the advisory agreement is terminated for any reason other than a termination without cause; or (y) the advisory agreement is terminated without cause by an affirmative vote of a majority of the board of directors before the economic hurdle described above has been met.

The Class B Units were issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter was equal to the cost of the Company's assets multiplied by 0.1875%, divided by the value of one share of common stock as of the last day of such calendar quarter, which was initially equal to $22.50 (the initial offering price in the IPO minus selling commissions and dealer manager fees) and, as of the Initial NAV Pricing Date, to Estimated Per-Share NAV. On April 15, 2015, the Company's board of directors approved an amendment (the "Amendment") to the Original A&R Advisory Agreement, which, among other things, provided that, effective as of April 15, 2015 until July 20, 2015:

(i) for any period commencing on or after April 1, 2015, the Company paid the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee (as defined in the Original A&R Advisory Agreement) equal to 0.75% per annum of the Cost of Assets (as defined in the Original A&R Advisory Agreement);

(ii) such Asset Management Fee was payable monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment determined in the sole discretion of the Advisor; and

(iii) the Company would not cause the OP to issue any Class B Units in respect of periods subsequent to March 31, 2015.

As of December 31, 2016, in aggregate, the Company's board of directors had approved and the Company had issued 1,052,420 Class B Units to the Advisor in connection with the arrangement described above. As of December 31, 2016, the Company could not determine the probability of achieving the performance condition, as such, no expense was recognized in connection with this arrangement during the years ended December 31, 2016, 2015 and 2014. The Advisor receives distributions on unvested Class B Units equal to the distribution amount received on the same number of shares of the Company's common stock. Such distributions on issued Class B Units are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. As stated above, pursuant to the Amendment, the OP will not issue any further Class B Units. The changes made pursuant to the Amendment were incorporated into the Agreement of Limited Partnership of the OP (the "OP Agreement") through a Third Amendment to the OP Agreement, which was approved by the board of directors and entered into on April 29, 2015.

Effective July 20, 2015, the Second A&R Advisory Agreement requires the Company to pay the Advisor a base management fee. Effective October 1, 2015, the fixed portion of the base management fee, which is equal to $1.5 million per month, is payable on the first business day of each month, while the variable portion of the base management fee, which is equal to 0.375% of the cumulative net proceeds of any equity raised subsequent to the potential Listing, is payable quarterly in arrears. Base management fees are included in asset management fees to related party on the consolidated statements of operations and comprehensive loss for the years ended December 31, 2016 and 2015.

In addition, the Second A&R Advisory Agreement requires the Company to pay the Advisor a variable management fee equal to (x) 15.0% of the applicable quarter's Core Earnings (as defined below) per share in excess of $0.375 per share plus (y) 10.0% of the applicable quarter's Core Earnings per share in excess of $0.50 per share, in each case as adjusted for changes in the number of shares of common stock outstanding. Core Earnings are defined as, for the applicable period, GAAP net income or loss excluding non-cash equity compensation expense, the variable management fee, acquisition and transaction related fees and expenses, financing related fees and expenses, depreciation and amortization, realized gains and losses on the sale of assets, any unrealized gains, losses or other non-cash items recorded in net loss for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income, one-time events pursuant to changes in GAAP and certain non-cash charges, impairment losses on real estate related investments and other than temporary impairment of securities, amortization of deferred financing costs, amortization of tenant inducements, amortization of straight-line rent, amortization of market lease intangibles, provision for loss loans, and other non-recurring revenue and expenses. The Company did not incur a variable management fee during the years ended December 31, 2016 and 2015.

The Company reimburses the Advisor's costs of providing administrative services, but may not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expenses or real estate commissions. During the years ended December 31, 2016 and 2015, the Company incurred $2.9 million and $1.2 million, respectively, of reimbursement expenses from the Advisor for providing administrative services. These reimbursements are included in general and administrative expense on the consolidated statements of operations and comprehensive loss. No reimbursement expenses were incurred from the Advisor for providing administrative services during the year ended December 31, 2014.

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to forgive certain fees. Because the Advisor may forgive certain fees, cash flows from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that are forgiven are not deferrals and, accordingly, will not be paid to the Advisor. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's general and administrative costs or property operating costs. No such fees were forgiven or costs were absorbed by the Advisor during the years ended December 31, 2016, 2015 and 2014.

The following table details amounts incurred and payable to related parties in connection with the operations-related services described above as of and for the periods presented:

	Year Ended December 31,						Payable as of December 31,
(In thousands)	2016		2015		2014		2016		2015
One-time fees and reimbursements:
Acquisition fees and related cost reimbursements (1)	$	—	$	1,330	$	10,578	$	—	$	—
Financing coordination fees	—		5,850		5,678		—		—
Ongoing fees:
Asset management fees	18,000		13,009		—		—		—
Professional fees and other reimbursements (2)	3,104		4,020		2,364		763		541
Distributions on Class B Units (2)	1,736		1,573		602		147		—
Total related party operation fees and reimbursements	$	22,840	$	25,782	$	19,222	$	910	$	541

_________________________________

(1) Acquisition fees and expenses from related parties of $0.9 million were recognized in acquisition and transaction related expense on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2015. In addition, over the same period, the Company capitalized $0.4 million of acquisition expenses to the Company's consolidated balance sheet, which are amortized over the life of each investment using the effective interest method. No acquisition expenses were capitalized during the years ended December 31, 2016 and 2014.

(2) These costs are included in general and administrative expense on the consolidated statements of operations and comprehensive loss.

During the year ended December 31, 2016, the Company incurred $1.3 million of cost reimbursements from the Advisor for lease commissions relating to the execution of new SunTrust leases. The lease commissions are included in deferred costs, net on the consolidated balance sheet as of December 31, 2016, and are amortized over the terms of the respective leases. No such costs were incurred during the years ended December 31, 2015 and 2014.

The predecessor to the Sponsor was party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager ("RCS Advisory"), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory.

The Company was also party to a transfer agency agreement with ANST, pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by DST Systems, Inc., a third-party transfer agent ("DST"). The Sponsor received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services).

Fees Incurred in Connection with the Liquidation or Listing of the Company's Real Estate Assets

In connection with the Listing, the Company, as the general partner of the OP, would cause the OP to issue a note (the "Listing Note") to the Special Limited Partner to evidence the OP's obligation to distribute to the Special Limited Partner an aggregate amount (the "Listing Amount") equal to 15.0% of the difference (to the extent the result is a positive number) between:

• the sum of (i) the "market value" (as defined in the Listing Note) of the Company's common stock plus (ii) the sum of all distributions or dividends (from any source) paid by the Company to its stockholders prior to the Listing; and

• the sum of (i) the gross proceeds ("Gross Proceeds") of all public and private offerings, including issuance of the Company's common stock pursuant to a merger or business combination (an "Offering") plus (ii) the total amount of cash that, if distributed to those stockholders who purchased shares of common stock in an Offering, would have provided those stockholders a 6.0% cumulative, non-compounded, pre-tax annual return (based on a 365-day year) on the Gross Proceeds.

The "market value" used to calculate the Listing Amount will not be determinable until the end of a measurement period, the period of 30 consecutive trading days, commencing on the 180th day following the Listing, unless another liquidity event, such as a merger, occurs prior to the end of the measurement period. If another liquidity event occurs prior to the end of the measurement period, the Listing Note provides for appropriate adjustment to the calculation of the Listing Amount.

The Special Limited Partner will have the right to receive distributions of "Net Sales Proceeds," as defined in the Listing Note, until the Listing Note is paid in full; provided that, the Special Limited Partner has the right, but not the obligation, to convert the entire Special Limited Partner interest into OP Units. OP Units are convertible into shares of the Company's common stock in accordance with the terms governing conversion of OP Units into shares of common stock and contained in the Second Amended and Restated Agreement of Limited Partnership of the OP by the Company, as general partner of its OP, with the limited partners party thereto (the "Second A&R OP Agreement"), which will be entered into at Listing.

On April 29, 2015, the board of directors authorized the execution, in conjunction with the potential Listing, the Second A&R OP Agreement to conform more closely with agreements of limited partnership of other operating partnerships controlled by real estate investment trusts whose securities are publicly traded and listed, and to add long term incentive plan units ("LTIP Units") as a new class of units of limited partnership in the OP to the existing common units ("OP Units"). The Company may at any time cause the OP to issue LTIP Units pursuant to an outperformance agreement. On April 29, 2015, the board of directors approved the general terms of a Multi-Year Outperformance Agreement to be entered into with the Company, the OP and the Advisor in connection with the Listing.

The Advisor was paid a brokerage commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and one-half of the total brokerage commission paid, if a third party broker was also involved; provided, however, that in no event could the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. During the year ended December 31, 2016, the Company incurred $0.6 million of real estate commissions from the Advisor for its services in connection with the sale of real estate investments. The impact of the real estate commissions is included in gain on sale of real estate investments on the consolidated statements of operations and comprehensive loss for the year ended December 31, 2016. No such commissions were incurred during the years ended December 31, 2015 and 2014. The Second A&R Advisory Agreement terminated the brokerage commission to the Advisor.

Related Party Agreements Executed in Connection with the Mergers

On September 6, 2016, the Company entered into an amendment of the Second A&R Advisory Agreement (the "Third A&R Advisory Agreement"), which became effective upon the Effective Time. Under the Third A&R Advisory Agreement, the fixed portion of the base management fee increases from $18.0 million annually to (i) $21.0 million annually for the first year following the Effective Time; (ii) $22.5 million annually for the second year following the Effective Time; and (iii) $24.0 million annually for the remainder of the term. If the Company acquires (whether by merger, consolidation or otherwise) any REIT, other than RCA, that is advised by an entity that is wholly-owned, directly or indirectly, by AR Global, other than any joint ventures, (a "Specified Transaction") the fixed portion of the base management fee will be increased by an amount equal to the consideration paid for the acquired company's equity multiplied by 0.0031, 0.0047 and 0.0062 for years one, two and three and thereafter, respectively, following the Specified Transaction. The variable portion of the base management fee changes from a quarterly fee equal to 0.375% of the cumulative net proceeds of any equity raised after the Company lists its common stock on a national securities exchange to a monthly fee equal to one-twelfth of 1.25% of the cumulative net proceeds of any equity raised by the Company or its subsidiaries from and after the Effective Time. The Company will continue to pay a variable management fee of 15% of quarterly core earnings per adjusted share for the previous quarter over $0.375 plus 10% of quarterly core earnings per adjusted share for the previous quarter over $0.50.

Under the Third A&R Advisory Agreement, the Company has the right to internalize the services and terminate the Advisory Agreement, referred to as an “internalization,” after January 1, 2018 as long as (1) more than 67% of the Company’s independent directors approve the internalization; (2) the Company provides written notice to the Advisor; and (3) the Company pays the Advisor a fee equal to (a) $15.0 million plus (b) either (x) if the internalization occurs on or before December 31, 2028, the Subject Fees (defined below) multiplied by 4.5 or (y) if the internalization occurs on or after January 1, 2029, the Subject Fees multiplied by 3.5 plus (c)(x) 1% of the purchase price (excluding the portion of the purchase price funded with equity proceeds raised prior to the end of the fiscal quarter in which the notice of election occurs) of each acquisition or merger that occurs between the end of the fiscal quarter in which notice is given and the internalization and (y) without duplication, 1% of the amount of new equity raised by the Company between the end of the fiscal quarter in which notice is given and the internalization. Subject Fees means (I) (A) all amounts payable pursuant to the Advisory Agreement and the Property Management Agreement for the fiscal quarter in which notice occurs multiplied by (B) four plus (II) without duplication, the annual increase in the base management fee resulting from the amount of new equity raised by the Company within the fiscal quarter in which notice occurs, as described above. The initial term of the Third A&R Advisory Agreement, commencing upon the Effective Time, will extend to April 29, 2035, and is automatically renewable for another 20-year term upon each 20-year anniversary.

On September 6, 2016, the Company entered into an amendment to the agreement of limited partnership of the OP (the “A&R OP Agreement”), which became effective upon the Effective Time. The A&R OP Agreement makes certain changes to the provisions of the partnership agreement relating to (a) distributions of net sales proceeds and the Termination Note (as defined in the A&R OP Agreement) issuable on termination of the Third A&R Advisory Agreement to address the issuance of shares of the Company’s common stock pursuant to the Merger and in future transactions; (b) internalization of the Advisor’s services after the Effective Time pursuant to the conditions in the Third A&R Advisory Agreement; and (c) certain matters related to changes in the Third A&R Advisory Agreement.

On September 6, 2016, RCA Advisor, as RCA’s former property manager and leasing agent, assigned RCA’s existing property management agreement (the "Target Property Management Agreement") and existing leasing agreement (the "Target Leasing Agreement") to the Property Manager, in respect of (1) the properties owned by RCA prior to the Merger, and (2) any existing anchored, stabilized core retail properties, such as power centers and lifestyle centers, acquired by the Company after the Effective Time and during the term of the Target Property Management Agreement and the Target Leasing Agreement, (collectively, the "Target Properties"). The Target Property Management Agreement and the Target Leasing Agreement became effective at the Effective Time.

 In connection with the Merger Agreement, the Target Property Management Agreement and the Target Leasing Agreement, the Company has entered into an amended and restated property management and leasing agreement (the “Property Management Agreement”) with the Property Manager in respect of (1) the properties owned by the Company prior to the Merger and (2) any double- and triple-net leased single tenant properties acquired by the Company after the Effective Time and during the term of the Property Management Agreement (collectively, the "Company Properties" and together with the Target Properties, the "Properties"). The Property Management Agreement became effective at the Effective Time. 

The Target Property Management Agreement provides that the Property Manager is entitled to a management fee equal to 4% of the gross rental receipts from the Target Properties, including common area maintenance reimbursements, tax and insurance reimbursements, percentage rental payments, utility reimbursements, late fees, vending machine collections, service charges, rental interruption insurance, and a 15% administrative charge for common area expenses.

In addition, the Property Manager is entitled to transition fees of up to $2,500 for each Target Property managed, a construction fee equal to 6% of construction costs incurred, if any, and reimbursement of all expenses specifically related to the operation of a Target Property, including compensation and benefits of property management, accounting, lease administration, executive and supervisory personnel of the Property Manager, and excluding expenses of the Property Manager’s corporate and general management office and excluding compensation and other expenses applicable to time spent on matters other than the Target Properties.

The Target Property Management Agreement, the Target Leasing Agreement and the Property Management Agreement each have an initial term ending October 1, 2018, with automatic renewal for successive one-year terms unless terminated 60 days prior to the end of a term or terminated for cause due to material breach of the agreement, fraud, criminal conduct or willful misconduct, insolvency or bankruptcy of the Property Manager.

In connection with, and subject to the terms and conditions of the Merger Agreement, special limited partner interests in the RCA OP held by AR Global and its affiliates were, consistent with the terms of the RCA OP partnership agreement, redeemed for a cash payment of approximately $2.8 million.

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Economic Dependency

12 Months Ended

Dec. 31, 2016

Economic Dependency [Abstract]

Economic Dependency

Note 13 — Economic Dependency

Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, as well as other administrative responsibilities for the Company including accounting and legal services, human resources and information technology.

As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

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Share-Based Compensation

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 14 —Share-Based Compensation

Restricted Share Plan

The Company had an employee and director incentive restricted share plan (the "Original RSP"), which provided for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further action by the Company's board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholders' meeting. Restricted stock issued to independent directors vests over a five-year period following the date of grant in increments of 20.0% per annum. The Original RSP provided the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to other entities that provide services to the Company. The total number of shares of common stock granted under the Original RSP could not exceed 5.0% of the Company's shares of common stock on a fully diluted basis at any time, and in any event could not exceed 3.4 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events).

Restricted share awards entitle the recipient to receive shares of common stock from the Company under terms that provide for vesting over a specified period of time. For restricted share awards granted prior to 2015, such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. Restricted share awards granted during or after 2015 provide for accelerated vesting of the portion of the unvested shares scheduled to vest in the year of the recipient's voluntary termination or the failure to be re-elected to the board. The Company accounts for forfeitures when they occur. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock are subject to the same restrictions as the underlying restricted shares.

In April 2015, the board of directors adopted an Amended and Restated RSP (the "A&R RSP") that replaces in its entirety the Original RSP. The A&R RSP amends the terms of the Original RSP as follows:

• it increases the number of shares of Company capital stock, par value $0.01 per share (the "Capital Stock"), available for awards thereunder from 5.0% of the Company's outstanding shares of Capital Stock on a fully diluted basis at any time, not to exceed 3.4 million shares of Capital Stock, to 10.0% of the Company's outstanding shares of Capital Stock on a fully diluted basis at any time;

• it removes the fixed amount of shares that were automatically granted to the Company's independent directors; and

• it adds restricted stock units (including dividend equivalent rights thereon) as a permitted form of award.

The following table reflects restricted share award activity for the years ended December 31, 2016, 2015 and 2014:

	Number of Shares of Common Stock		Weighted-Average Issue Price
Unvested, December 31, 2013	4,000		$	22.50
Granted	3,999		22.50
Vested	(800	)	22.50
Forfeited	(2,400	)	22.50
Unvested, December 31, 2014	4,799		22.50
Granted	6,240		24.04
Vested	(1,067	)	22.50
Forfeited	(2,517	)	23.83
Unvested, December 31, 2015	7,455		23.34
Granted	3,723		24.17
Vested	(1,811	)	23.19
Unvested, December 31, 2016	9,367		$	23.70

As of December 31, 2016, the Company had $0.2 million of unrecognized compensation cost related to unvested restricted share awards granted. That cost is expected to be recognized over a weighted-average period of 3.2 years.

The fair value of the restricted shares is being expensed in accordance with the service period required. Compensation expense related to restricted stock was approximately $67,000, $51,000 and $21,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Compensation expense related to restricted stock is included in general and administrative expense on the accompanying consolidated statements of operations and comprehensive (loss) income.

Other Share-Based Compensation

The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors at each director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. There were no shares of common stock issued to directors in lieu of cash compensation during the years ended December 31, 2016, 2015 and 2014.

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Net Loss Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Net Loss Per Share

Note 15 — Net Loss Per Share

The following table sets forth the basic and diluted net loss per share computations for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
	2016			2015			2014
Basic and diluted net loss (in thousands)	$	(54,255	)	$	(21,117	)	$	(1,997	)
Basic and diluted weighted-average shares outstanding	65,450,432			66,028,245			64,333,260
Basic and diluted net loss per share	$	(0.83	)	$	(0.32	)	$	(0.03	)

Diluted net loss per share assumes the conversion of all common stock equivalents into an equivalent number of common shares, unless the effect is antidilutive. The Company considers unvested restricted stock, OP Units and Class B Units to be common share equivalents. The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented:

	December 31,
	2016	2015	2014
Unvested restricted stock (1)	7,985	6,349	5,221
OP Units	90	90	90
Class B Units (2)	1,052,420	953,086	364,786
Total weighted-average antidilutive common stock equivalents	1,060,495	959,525	370,097

_____________________

(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 9,367, 7,455 and 4,799 shares of unvested restricted stock outstanding as of December 31, 2016, 2015 and 2014, respectively.

(2) Weighted-average number of issued and unvested Class B Units outstanding for the periods presented. As of December 31, 2016, 2015 and 2014, there were 1,052,420, 1,052,420 and 703,796 Class B Units outstanding, respectively.

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Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results (Unaudited)

Note 16 – Quarterly Results (Unaudited)

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2016, 2015 and 2014:

	Quarters Ended
(In thousands, except share and per share amounts)	March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Total revenues	$	43,786		$	44,277		$	44,758		$	44,847
Basic and diluted net loss	$	(5,854	)	$	(4,077	)	$	(8,729	)	$	(35,595	)
Basic and diluted weighted-average shares outstanding	64,955,420			65,301,764			65,741,735			65,795,812
Basic and diluted net loss per share	$	(0.09	)	$	(0.06	)	$	(0.13	)	$	(0.54	)

	Quarters Ended
(In thousands, except share and per share amounts)	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Total revenues	$	42,866		$	43,269		$	44,051		$	44,312
Basic net income (loss)	$	4,901		$	(1,624	)	$	(11,428	)	$	(12,966	)
Adjustments to net income (loss) for common share equivalents	(116		)	—			—			—
Diluted net income (loss)	$	4,785		$	(1,624	)	$	(11,428	)	$	(12,966	)
Basic weighted-average shares outstanding	65,672,016			66,045,785			66,450,057			65,937,566
Basic net income (loss) per share	$	0.07		$	(0.02	)	$	(0.17	)	$	(0.20	)
Diluted weighted-average shares outstanding	65,677,204			66,045,785			66,450,057			65,937,566
Diluted net income (loss) per share	$	0.07		$	(0.02	)	$	(0.17	)	$	(0.20	)

	Quarters Ended (1)
(In thousands, except share and per share amounts)	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Total revenues	$	30,124		$	42,076		$	43,222		$	42,958
Basic net (loss) income	$	(9,569	)	$	1,127		$	1,610		$	4,835
Adjustments to net (loss) income for common share equivalents	—			(156		)	(98		)	(92		)
Diluted net income (loss)	$	(9,569	)	$	971		$	1,512		$	4,743
Basic weighted-average shares outstanding	62,693,554			64,018,318			64,654,279			65,243,247
Basic net (loss) income per share	$	(0.15	)	$	0.02		$	0.02		$	0.07
Diluted weighted-average shares outstanding	62,693,554			64,023,762			64,661,074			65,248,137
Diluted net (loss) income per share	$	(0.15	)	$	0.02		$	0.02		$	0.07

______________________________

(1) The aforementioned unaudited quarterly financial information has been revised to reflect certain adjustments and final purchase price allocations to previously reported quarterly information associated with acquisitions completed during 2014. As a result, amortization and accretion of above-market lease assets and below-market lease liabilities decreased total revenue by $0.1 million, $0.4 million and $0.4 million for the three months ended March 31, June 30 and September 30, 2014, respectively. Additionally, the Company decreased depreciation and amortization expense by $1.2 million, $3.4 million and $3.7 million, for the three months ended March 31, June 30 and September 30, 2014, respectively.

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Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

Note 17 —Subsequent Events

The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K, and determined that there have not been any events that have occurred that would require adjustments to, or disclosures in, the consolidated financial statements except for the following disclosures:

American Realty Capital — Retail Centers of America, Inc. Merger

On February 16, 2017, the Mergers became effective. As a result of the Mergers, the Company acquired RCA, which, immediately prior to the Effective Time, owned a portfolio of 35 anchored, stabilized core retail properties. See Note 2 — Completed Mergers and Significant Disposals for additional details on the Mergers.

Second Amendment to Amended and Restated Credit Agreement

On February 16, 2017, the Company, the OP, and certain other subsidiaries of the Company acting as guarantors, entered into an amendment, assumption, joinder and reaffirmation of guaranties (the “Second Amendment”) to an unsecured amended and restated credit agreement, dated December 2, 2014 (as amended by the Second Amendment, the “Credit Agreement”), by and among the RCA OP to which the OP is successor by merger, BMO Harris Bank N.A., as administrative agent, letter of credit issuer, swingline lender and a lender, and the other parties thereto, relating to a revolving credit facility (the “Amended Credit Facility”). The Second Amendment provides for, among other things, the OP to become the borrower and principal obligor under the Credit Agreement and the Amended Credit Facility, and for the Company to become a guarantor under the Amended Credit Facility. RCA and the RCA OP were parties to the Credit Agreement prior to closing of the Merger.

The Amended Credit Facility provides for aggregate revolving loan borrowings of up to $325.0 million (subject to unencumbered asset pool availability), a swingline subfacility of $25.0 million and a $20.0 million letter of credit subfacility, subject to certain conditions. Through an uncommitted “accordion feature,” the OP, subject to certain conditions, may increase commitments under the Amended Credit Facility to up to $575.0 million.

The Amended Credit Facility will mature on May 1, 2018. Borrowings under the Amended Credit Facility will bear interest at either (i) the base rate (which is defined in the Credit Agreement as the greatest of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.50%, and (c) LIBOR for a one month interest period plus 1.00%) plus an applicable spread ranging from 0.35% to 1.00%, depending on the Company’s consolidated leverage ratio, or (ii) LIBOR plus an applicable spread ranging from 1.35% to 2.00%, depending on the Company’s consolidated leverage ratio.

The Amended Credit Facility provides for quarterly interest payments for each base rate loan and periodic interest payments for each LIBOR loan, based upon the applicable interest period (though no longer than three months) with respect to such LIBOR loan, with all principal outstanding being due on the maturity date. The Amended Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty. Upon the occurrence of an event of default, the requisite lenders have the right to terminate their obligations under the Amended Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Company, certain of its subsidiaries and certain subsidiaries of the OP will guarantee the obligations under the Amended Credit Facility.

Amendment to Agreement of Limited Partnership

In connection with the Mergers, the Agreement of Limited Partnership of the OP was amended in order to admit to the partnership certain entities which received units of limited partnership interest in the OP pursuant to the Merger Agreement.

Property Dispositions

On January 24, 2017, the Company closed on its sale of a single-tenant net lease property operated by SunTrust in Sylva, North Carolina for a contract price of $0.2 million, exclusive of closing costs. On January 31, 2017, the Company closed on its sale of the Merrill Lynch Properties for a contract price of $148.0 million, exclusive of closing costs. On February 17, 2017, the Company closed on its sale of a single-tenant net lease property operated by SunTrust in Landover, Maryland for a contract price of $0.8 million, exclusive of closing costs. All of these properties were classified as held for sale on the consolidated balance sheet as of December 31, 2016. See Note 4 — Real Estate Investments for more information on the Company's real estate investments held for sale as of December 31, 2016.

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Real Estate and Accumulated Depreciation - Schedule III

12 Months Ended

Dec. 31, 2016

SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]

Real Estate and Accumulated Depreciation - Schedule III

(In thousands)							Initial Costs				Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016			Land		Building and Improvements		Land (5)		Building and Improvements (5)				Accumulated Depreciation (8) (9)
Dollar General I	Mission	TX	4/29/2013	$	—	(1)	$	142	$	807	$	—	$	—	$	949	$	166
Dollar General I	Sullivan	MO	5/3/2013	—		(1)	146		825		—		—		971		170
Walgreens I	Pine Bluff	AR	7/8/2013	—		(1)	159		3,016		—		—		3,175		633
Dollar General II	Bogalusa	LA	7/12/2013	—		(1)	107		965		—		—		1,072		190
Dollar General II	Donaldsonville	LA	7/12/2013	—		(1)	97		871		—		—		968		171
AutoZone I	Cut Off	LA	7/16/2013	—		(1)	67		1,282		—		—		1,349		246
Dollar General III	Athens	MI	7/16/2013	—		(1)	48		907		—		—		955		174
Dollar General III	Fowler	MI	7/16/2013	—		(1)	49		940		—		—		989		181
Dollar General III	Hudson	MI	7/16/2013	—		(1)	102		922		—		—		1,024		177
Dollar General III	Muskegon	MI	7/16/2013	—		(1)	49		939		—		—		988		180
Dollar General III	Reese	MI	7/16/2013	—		(1)	150		848		—		—		998		163
BSFS I	Fort Myers	FL	7/18/2013	—		(1)	1,215		1,822		—		—		3,037		361
Dollar General IV	Bainbridge	GA	7/29/2013	—		(1)	233		700		—		—		933		134
Dollar General IV	Vanleer	TN	7/29/2013	—		(1)	78		705		—		—		783		135
Tractor Supply I	Vernon	CT	8/1/2013	—		(1)	358		3,220		—		—		3,578		525
Dollar General V	Meraux	LA	8/2/2013	—		(1)	708		1,315		—		—		2,023		253
Mattress Firm I	Tallahassee	FL	8/7/2013	—		(1)	1,015		1,241		—		—		2,256		238
Family Dollar I	Butler	KY	8/12/2013	—		(1)	126		711		—		—		837		137
Food Lion I	Charlotte	NC	8/19/2013	—		(1)	3,132		4,697		—		—		7,829		771
Lowe's I	Macon	GA	8/19/2013	—		(1)	—		8,420		—		—		8,420		1,323
Lowe's I	Fayetteville	NC	8/19/2013	—			—		6,422		—		—		6,422		1,009
Lowe's I	New Bern	NC	8/19/2013	—		(1)	1,812		10,269		—		—		12,081		1,614
Lowe's I	Rocky Mount	NC	8/19/2013	—		(1)	1,931		10,940		—		—		12,871		1,719
O'Reilly Auto Parts I	Manitowoc	WI	8/19/2013	—		(1)	85		761		—		—		846		143
Lowe's I	Aiken	SC	8/21/2013	—		(1)	1,764		7,056		—		—		8,820		1,107
Family Dollar II	Danville	AR	8/22/2013	—		(1)	170		679		—		—		849		127
Dollar General VI	Natalbany	LA	8/23/2013	—		(1)	379		883		—		—		1,262		165
Dollar General VII	Gasburg	VA	8/23/2013	—		(1)	52		993		—		—		1,045		186
Walgreens II	Tucker	GA	8/23/2013	—		(1)	—		2,524		—		—		2,524		505
Family Dollar III	Challis	ID	8/27/2013	—		(1)	44		828		—		—		872		155
Chili's I	Lake Jackson	TX	8/30/2013	—		(1)	746		1,741		—		—		2,487		409
Chili's I	Victoria	TX	8/30/2013	—		(1)	813		1,897		—		—		2,710		445
CVS I	Anniston	AL	8/30/2013	—		(1)	472		1,887		—		—		2,359		377
Joe's Crab Shack I	Westminster	CO	8/30/2013	—		(1)	1,136		2,650		—		—		3,786		622
Joe's Crab Shack I	Houston	TX	8/30/2013	—		(1)	1,169		2,171		—		—		3,340		510

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
Tire Kingdom I	Lake Wales	FL	9/4/2013	—	(1)	556	1,296	—		—		1,852	251
AutoZone II	Temple	GA	9/6/2013	—	(1)	569	854	—		—		1,423	160
Dollar General VIII	Stanleytown	VA	9/6/2013	—	(1)	185	1,049	—		—		1,234	196
Family Dollar IV	Oil City	LA	9/9/2013	—	(1)	76	685	—		—		761	128
Fresenius I	Montevallo	AL	9/12/2013	—	(1)	300	1,699	—		—		1,999	266
Dollar General IX	Mabelvale	AR	9/13/2013	—	(1)	38	723	—		—		761	135
Advance Auto I	Angola	IN	9/19/2013	—	(1)	35	671	—		—		706	123
Arby's I	Hernando	MS	9/19/2013	—	(1)	624	1,455	—		—		2,079	333
CVS II	Holyoke	MA	9/19/2013	—	(1)	—	2,258	—		—		2,258	440
Walgreens III	Lansing	MI	9/19/2013	—	(1)	216	4,099	—		—		4,315	799
Walgreens IV	Beaumont	TX	9/20/2013	—	(1)	499	1,995	—		—		2,494	389
American Express Travel Related Services I	Salt Lake City	UT	9/24/2013	—	(1)	4,150	32,789	—		—		36,939	8,352
American Express Travel Related Services I	Greensboro	NC	9/24/2013	—	(1)	1,620	41,401	—		—		43,021	9,770
AmeriCold I	Piedmont	SC	9/24/2013	—	(1)	3,030	24,067	—		—		27,097	4,771
AmeriCold I	Gaffney	SC	9/24/2013	—	(1)	1,360	5,666	—		—		7,026	1,123
AmeriCold I	Pendergrass	GA	9/24/2013	—	(1)	2,810	26,572	—		—		29,382	5,268
AmeriCold I	Gainesville	GA	9/24/2013	—	(1)	1,580	13,838	—		—		15,418	2,743
AmeriCold I	Cartersville	GA	9/24/2013	—	(1)	1,640	14,533	—		—		16,173	2,881
AmeriCold I	Douglas	GA	9/24/2013	—	(1)	750	7,076	—		—		7,826	1,403
AmeriCold I	Belvidere	IL	9/24/2013	—	(1)	2,170	17,843	—		—		20,013	3,537
AmeriCold I	Brooklyn Park	MN	9/24/2013	—	(1)	1,590	11,940	—		—		13,530	2,367
AmeriCold I	Zumbrota	MN	9/24/2013	—	(1)	2,440	18,152	—		—		20,592	3,599
Dollar General X	Greenwell Springs	LA	9/24/2013	—	(1)	114	1,029	—		—		1,143	188
Home Depot I	Valdosta	GA	9/24/2013	—	(1)	2,930	30,538	—		—		33,468	4,673
Home Depot I	Birmingham	AL	9/24/2013	—	(1)	3,660	33,667	—		—		37,327	5,152
L.A. Fitness I	Houston	TX	9/24/2013	—	(1)	2,540	8,379	—		—		10,919	1,359
National Tire & Battery I	San Antonio	TX	9/24/2013	—	(1)	577	577	—		—		1,154	109
New Breed Logistics I	Hanahan	SC	9/24/2013	—	(1)	2,940	19,171	—		—		22,111	3,801
SunTrust Bank I	Atlanta	GA	9/24/2013	—	(1)	2,190	5,666	(291	)	(641	)	6,924	843
SunTrust Bank I	Washington	DC	9/24/2013	—	(1)	590	2,366	—		—		2,956	412
SunTrust Bank I	New Smyrna Beach	FL	9/24/2013	—	(1)	740	2,859	—		—		3,599	498
SunTrust Bank I	Brooksville	FL	9/24/2013	—	(1)	360	127	(137	)	(40	)	310	22
SunTrust Bank I	West Palm Beach	FL	9/24/2013	—	(1)	520	2,264	(177	)	(636	)	1,971	394
SunTrust Bank I	Orlando	FL	9/24/2013	—	(1)	540	3,069	—		—		3,609	534

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank I	Orlando	FL	9/24/2013	—	(1)	410	2,078	—		—		2,488	362
SunTrust Bank I	Fort Pierce	FL	9/24/2013	—	(1)	720	1,434	—		—		2,154	250
SunTrust Bank I	Atlanta	GA	9/24/2013	—	(1)	570	1,152	—		—		1,722	201
SunTrust Bank I	Thomson	GA	9/24/2013	—	(1)	480	1,015	—		—		1,495	177
SunTrust Bank I	Waycross	GA	9/24/2013	—	(1)	300	1,425	—		—		1,725	248
SunTrust Bank I	Cary	NC	9/24/2013	—	(1)	370	841	—		—		1,211	147
SunTrust Bank I	Stokesdale	NC	9/24/2013	—	(1)	230	581	—		—		811	101
SunTrust Bank I	Summerfield	NC	9/24/2013	—	(1)	210	605	—		—		815	105
SunTrust Bank I	Waynesville	NC	9/24/2013	—	(1)	200	874	—		—		1,074	152
SunTrust Bank I	Fountain Inn	SC	9/24/2013	—	(1)	290	1,086	(155	)	(479	)	742	189
SunTrust Bank I	Nashville	TN	9/24/2013	—	(1)	190	666	—		—		856	116
SunTrust Bank I	Savannah	TN	9/24/2013	—	(1)	390	1,179	—		—		1,569	205
SunTrust Bank I	Chattanooga	TN	9/24/2013	—	(1)	220	781	—		—		1,001	136
SunTrust Bank I	Oak Ridge	TN	9/24/2013	—	(1)	500	1,277	—		—		1,777	222
SunTrust Bank I	Doswell	VA	9/24/2013	—	(1)	190	510	—		—		700	89
SunTrust Bank I	Vinton	VA	9/24/2013	—	(1)	120	366	—		—		486	64
SunTrust Bank I	New Market	VA	9/24/2013	—	(1)	330	948	—		—		1,278	165
SunTrust Bank I	Brunswick	GA	9/24/2013	—	(1)	80	249	—		—		329	43
SunTrust Bank I	Burlington	NC	9/24/2013	—	(1)	200	497	(21	)	(43	)	633	87
SunTrust Bank I	Pittsboro	NC	9/24/2013	—	(1)	100	304	(20	)	(50	)	334	53
SunTrust Bank I	Dunwoody	GA	9/24/2013	—	(1)	460	2,714	(85	)	(412	)	2,677	473
SunTrust Bank I	Athens	GA	9/24/2013	—	(1)	610	1,662	(97	)	(218	)	1,957	289
SunTrust Bank I	Spencer	NC	9/24/2013	—	(1)	280	717	(67	)	(141	)	789	125
SunTrust Bank I	Cleveland	TN	9/24/2013	—	(1)	170	461	(21	)	(47	)	563	80
SunTrust Bank I	Nassawadox	VA	9/24/2013	—	(1)	70	484	(8	)	(47	)	499	84
Circle K I	Burlington	IA	9/25/2013	—	(1)	224	523	—		—		747	96
Circle K I	Clinton	IA	9/25/2013	—	(1)	334	779	—		—		1,113	142
Circle K I	Muscatine	IA	9/25/2013	—	(1)	274	821	—		—		1,095	150
Circle K I	Aledo	IL	9/25/2013	—	(1)	427	1,709	—		—		2,136	312
Circle K I	Bloomington	IL	9/25/2013	—	(1)	316	586	—		—		902	107
Circle K I	Bloomington	IL	9/25/2013	—	(1)	395	592	—		—		987	108
Circle K I	Champaign	IL	9/25/2013	—	(1)	412	504	—		—		916	92
Circle K I	Galesburg	IL	9/25/2013	—	(1)	355	829	—		—		1,184	151
Circle K I	Jacksonville	IL	9/25/2013	—	(1)	351	818	—		—		1,169	149
Circle K I	Jacksonville	IL	9/25/2013	—	(1)	316	474	—		—		790	87

(In thousands)						Initial Costs		Subsequent to Acquisition		Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)	Building and Improvements (5)		Accumulated Depreciation (8) (9)
Circle K I	Mattoon	IL	9/25/2013	—	(1)	608	1,129	—	—	1,737	206
Circle K I	Morton	IL	9/25/2013	—	(1)	350	525	—	—	875	96
Circle K I	Paris	IL	9/25/2013	—	(1)	429	797	—	—	1,226	146
Circle K I	Staunton	IL	9/25/2013	—	(1)	467	1,867	—	—	2,334	341
Circle K I	Vandalia	IL	9/25/2013	—	(1)	529	983	—	—	1,512	179
Circle K I	Virden	IL	9/25/2013	—	(1)	302	1,208	—	—	1,510	220
Circle K I	Lafayette	IN	9/25/2013	—	(1)	401	746	—	—	1,147	136
Circle K I	Bedford	OH	9/25/2013	—	(1)	702	702	—	—	1,404	128
Circle K I	Streetsboro	OH	9/25/2013	—	(1)	540	540	—	—	1,080	99
Walgreens V	Oklahoma City	OK	9/27/2013	—	(1)	1,295	3,884	—	—	5,179	757
Walgreens VI	Gillette	WY	9/27/2013	—	(1)	1,198	2,796	—	—	3,994	545
1st Constitution Bancorp I	Hightstown	NJ	9/30/2013	—	(1)	260	1,471	—	—	1,731	256
American Tire Distributors I	Chattanooga	TN	9/30/2013	—	(1)	401	7,626	—	—	8,027	1,512
FedEx Ground I	Watertown	SD	9/30/2013	—	(1)	136	2,581	—	—	2,717	512
Krystal I	Jacksonville	FL	9/30/2013	—	(1)	533	799	—	—	1,332	183
Krystal I	Columbus	GA	9/30/2013	—	(1)	143	1,288	—	—	1,431	295
Krystal I	Ft. Oglethorpe	GA	9/30/2013	—	(1)	181	1,024	—	—	1,205	234
Krystal I	Chattanooga	TN	9/30/2013	—	(1)	285	855	—	—	1,140	196
Krystal I	Cleveland	TN	9/30/2013	—	(1)	207	1,172	—	—	1,379	268
Krystal I	Madison	TN	9/30/2013	—	(1)	416	624	—	—	1,040	143
O'Charley's I	Lexington	KY	9/30/2013	—	(1)	409	955	—	—	1,364	219
O'Charley's I	Conyers	GA	9/30/2013	—	(1)	373	2,113	—	—	2,486	484
O'Charley's I	Southaven	MS	9/30/2013	—	(1)	836	1,553	—	—	2,389	355
O'Charley's I	Daphne	AL	9/30/2013	—	(1)	142	1,275	—	—	1,417	292
O'Charley's I	Kennesaw	GA	9/30/2013	—	(1)	142	1,280	—	—	1,422	293
O'Charley's I	Springfield	OH	9/30/2013	—	(1)	262	1,484	—	—	1,746	340
O'Charley's I	Murfreesboro	TN	9/30/2013	—	(1)	597	1,109	—	—	1,706	254
O'Charley's I	Mcdonough	GA	9/30/2013	—	(1)	335	1,899	—	—	2,234	434
O'Charley's I	Simpsonville	SC	9/30/2013	—	(1)	349	1,395	—	—	1,744	319
O'Charley's I	Grove City	OH	9/30/2013	—	(1)	387	1,546	—	—	1,933	354
O'Charley's I	Clarksville	TN	9/30/2013	—	(1)	917	1,376	—	—	2,293	315
O'Charley's I	Champaign	IL	9/30/2013	—	(1)	256	1,449	—	—	1,705	332
O'Charley's I	Columbus	OH	9/30/2013	—	(1)	271	1,533	—	—	1,804	351
O'Charley's I	Foley	AL	9/30/2013	—	(1)	264	1,495	—	—	1,759	342

(In thousands)						Initial Costs		Subsequent to Acquisition		Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)	Building and Improvements (5)		Accumulated Depreciation (8) (9)
O'Charley's I	Corydon	IN	9/30/2013	—	(1)	260	1,473	—	—	1,733	337
O'Charley's I	Salisbury	NC	9/30/2013	—	(1)	439	1,024	—	—	1,463	234
O'Charley's I	Carrollton	GA	9/30/2013	—	(1)	457	1,067	—	—	1,524	244
O'Charley's I	Lake Charles	LA	9/30/2013	—	(1)	1,118	1,367	—	—	2,485	313
O'Charley's I	Hattiesburg	MS	9/30/2013	—	(1)	413	1,651	—	—	2,064	378
O'Charley's I	Greenfield	IN	9/30/2013	—	(1)	507	1,184	—	—	1,691	271
Walgreens VII	Monroe	MI	9/30/2013	—	(1)	1,149	2,680	—	—	3,829	523
Walgreens VII	St Louis	MO	9/30/2013	—	(1)	903	2,107	—	—	3,010	411
Walgreens VII	Rockledge	FL	9/30/2013	—	(1)	1,040	1,931	—	—	2,971	377
Walgreens VII	Florissant	MO	9/30/2013	—	(1)	474	1,422	—	—	1,896	277
Walgreens VII	Florissant	MO	9/30/2013	—	(1)	561	1,309	—	—	1,870	255
Walgreens VII	Alton	IL	9/30/2013	—	(1)	1,158	3,474	—	—	4,632	677
Walgreens VII	Springfield	IL	9/30/2013	—	(1)	1,319	3,078	—	—	4,397	600
Walgreens VII	Washington	IL	9/30/2013	—	(1)	964	2,893	—	—	3,857	564
Walgreens VII	Bloomington	IL	9/30/2013	—	(1)	1,568	3,659	—	—	5,227	713
Walgreens VII	Mahomet	IL	9/30/2013	—	(1)	1,432	2,659	—	—	4,091	519
Tractor Supply II	Houghton	MI	10/3/2013	—	(1)	204	1,158	—	—	1,362	179
National Tire & Battery II	Mundelein	IL	10/4/2013	—	(1)	—	1,742	—	—	1,742	328
United Healthcare I	Howard (Green Bay)	WI	10/7/2013	—	(1)	3,805	47,565	—	—	51,370	4,118
Tractor Supply III	Harlan	KY	10/16/2013	—	(1)	248	2,232	—	—	2,480	337
Mattress Firm II	Knoxville	TN	10/18/2013	—	(1)	189	754	—	—	943	134
Dollar General XI	Greenville	MS	10/23/2013	—	(1)	192	769	—	—	961	137
Academy Sports I	Cape Girardeau	MO	10/29/2013	—	(1)	384	7,292	—	—	7,676	1,110
Talecris Plasma Resources I	Eagle Pass	TX	10/29/2013	—	(1)	286	2,577	—	—	2,863	384
Amazon I	Winchester	KY	10/30/2013	—	(1)	362	8,070	—	—	8,432	1,306
Fresenius II	Montclair	NJ	10/31/2013	—	(1)	1,214	2,255	—	—	3,469	336
Fresenius II	Sharon Hill	PA	10/31/2013	—	(1)	345	1,956	—	—	2,301	291
Dollar General XII	Le Center	MN	11/1/2013	—	(1)	47	886	—	—	933	158
Advance Auto II	Bunnell	FL	11/7/2013	—	(1)	92	1,741	—	—	1,833	310
Advance Auto II	Washington	GA	11/7/2013	—	(1)	55	1,042	—	—	1,097	185
Dollar General XIII	Vidor	TX	11/7/2013	—	(1)	46	875	—	—	921	156
FedEx Ground II	Leland	MS	11/12/2013	—	(1)	220	4,186	—	—	4,406	809

(In thousands)						Initial Costs		Subsequent to Acquisition		Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)	Building and Improvements (5)		Accumulated Depreciation (8) (9)
Burger King I	Algonquin	IL	11/14/2013	—	(1)	798	798	—	—	1,596	140
Burger King I	Antioch	IL	11/14/2013	—	(1)	706	471	—	—	1,177	83
Burger King I	Crystal Lake	IL	11/14/2013	—	(1)	541	232	—	—	773	41
Burger King I	Grayslake	IL	11/14/2013	—	(1)	582	476	—	—	1,058	84
Burger King I	Gurnee	IL	11/14/2013	—	(1)	931	931	—	—	1,862	163
Burger King I	McHenry	IL	11/14/2013	—	(1)	742	318	—	—	1,060	56
Burger King I	Round Lake Beach	IL	11/14/2013	—	(1)	1,273	1,042	—	—	2,315	183
Burger King I	Waukegan	IL	11/14/2013	—	(1)	611	611	—	—	1,222	107
Burger King I	Woodstock	IL	11/14/2013	—	(1)	869	290	—	—	1,159	51
Burger King I	Austintown	OH	11/14/2013	—	(1)	221	1,251	—	—	1,472	219
Burger King I	Beavercreek	OH	11/14/2013	—	(1)	410	761	—	—	1,171	134
Burger King I	Celina	OH	11/14/2013	—	(1)	233	932	—	—	1,165	164
Burger King I	Chardon	OH	11/14/2013	—	(1)	332	497	—	—	829	87
Burger King I	Chesterland	OH	11/14/2013	—	(1)	320	747	—	—	1,067	131
Burger King I	Cortland	OH	11/14/2013	—	(1)	118	1,063	—	—	1,181	187
Burger King I	Dayton	OH	11/14/2013	—	(1)	464	862	—	—	1,326	151
Burger King I	Fairborn	OH	11/14/2013	—	(1)	421	982	—	—	1,403	172
Burger King I	Girard	OH	11/14/2013	—	(1)	421	1,264	—	—	1,685	222
Burger King I	Greenville	OH	11/14/2013	—	(1)	248	993	—	—	1,241	174
Burger King I	Madison	OH	11/14/2013	—	(1)	282	845	—	—	1,127	148
Burger King I	Mentor	OH	11/14/2013	—	(1)	196	786	—	—	982	138
Burger King I	Niles	OH	11/14/2013	—	(1)	304	1,214	—	—	1,518	213
Burger King I	North Royalton	OH	11/14/2013	—	(1)	156	886	—	—	1,042	156
Burger King I	Painesville	OH	11/14/2013	—	(1)	170	965	—	—	1,135	169
Burger King I	Poland	OH	11/14/2013	—	(1)	212	847	—	—	1,059	149
Burger King I	Ravenna	OH	11/14/2013	—	(1)	391	1,172	—	—	1,563	206
Burger King I	Salem	OH	11/14/2013	—	(1)	352	1,408	—	—	1,760	247
Burger King I	Trotwood	OH	11/14/2013	—	(1)	266	798	—	—	1,064	140
Burger King I	Twinsburg	OH	11/14/2013	—	(1)	458	850	—	—	1,308	149
Burger King I	Vandalia	OH	11/14/2013	—	(1)	182	728	—	—	910	128
Burger King I	Warren	OH	11/14/2013	—	(1)	176	997	—	—	1,173	175
Burger King I	Warren	OH	11/14/2013	—	(1)	168	1,516	—	—	1,684	266

(In thousands)						Initial Costs		Subsequent to Acquisition		Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)	Building and Improvements (5)		Accumulated Depreciation (8) (9)
Burger King I	Willoughby	OH	11/14/2013	—	(1)	394	920	—	—	1,314	161
Burger King I	Youngstown	OH	11/14/2013	—	(1)	300	901	—	—	1,201	158
Burger King I	Youngstown	OH	11/14/2013	—	(1)	186	1,675	—	—	1,861	294
Burger King I	Youngstown	OH	11/14/2013	—	(1)	147	1,324	—	—	1,471	232
Burger King I	Youngstown	OH	11/14/2013	—	(1)	370	1,481	—	—	1,851	260
Burger King I	Bethel Park	PA	11/14/2013	—	(1)	342	634	—	—	976	111
Burger King I	North Fayette	PA	11/14/2013	—	(1)	463	1,388	—	—	1,851	244
Burger King I	North Versailles	PA	11/14/2013	—	(1)	553	1,659	—	—	2,212	291
Burger King I	Columbiana	OH	11/14/2013	—	(1)	581	871	—	—	1,452	153
Dollar General XIV	Fort Smith	AR	11/20/2013	—	(1)	184	1,042	—	—	1,226	180
Dollar General XIV	Hot Springs	AR	11/20/2013	—	(1)	287	862	—	—	1,149	149
Dollar General XIV	Royal	AR	11/20/2013	—	(1)	137	777	—	—	914	135
Dollar General XV	Wilson	NY	11/20/2013	—	(1)	172	972	—	—	1,144	168
Mattress Firm I	McDonough	GA	11/22/2013	—	(1)	185	1,663	—	—	1,848	288
FedEx Ground III	Bismarck	ND	11/25/2013	—	(1)	554	3,139	—	—	3,693	590
Dollar General XVI	LaFollette	TN	11/27/2013	—	(1)	43	824	—	—	867	143
Family Dollar V	Carrollton	MO	11/27/2013	—	(1)	37	713	—	—	750	124
Walgreens VIII	Bettendorf	IA	12/6/2013	—	(1)	1,398	3,261	—	—	4,659	603
CVS III	Detroit	MI	12/10/2013	—	(1)	447	2,533	—	—	2,980	469
Family Dollar VI	Walden	CO	12/10/2013	—	(1)	100	568	—	—	668	98
Mattress Firm III	Valdosta	GA	12/17/2013	—	(1)	169	1,522	—	—	1,691	256
Arby's II	Virginia	MN	12/23/2013	—	(1)	117	1,056	—	—	1,173	176
Family Dollar VI	Kremmling	CO	12/23/2013	—	(1)	194	778	—	—	972	131
SAAB Sensis I	Syracuse	NY	12/23/2013	7,841		2,516	12,570	—	—	15,086	1,071
Citizens Bank I	Doylestown	PA	12/27/2013	—	(1)	588	1,373	—	—	1,961	221
Citizens Bank I	Lansdale	PA	12/27/2013	—	(1)	531	1,238	—	—	1,769	199
Citizens Bank I	Lima	PA	12/27/2013	—	(1)	1,376	1,682	—	—	3,058	270
Citizens Bank I	Philadelphia	PA	12/27/2013	—	(1)	473	2,680	—	—	3,153	431
Citizens Bank I	Philadelphia	PA	12/27/2013	—	(1)	412	2,337	—	—	2,749	376
Citizens Bank I	Philadelphia	PA	12/27/2013	—	(1)	321	2,889	—	—	3,210	464
Citizens Bank I	Philadelphia	PA	12/27/2013	—	(1)	388	1,551	—	—	1,939	249
Citizens Bank I	Richboro	PA	12/27/2013	—	(1)	642	1,193	—	—	1,835	192

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
Citizens Bank I	Wayne	PA	12/27/2013	—	(1)	1,923	1,923	—		—		3,846	309
Walgreens IX	Waterford	MI	1/3/2014	—	(1)	514	4,531	—		—		5,045	359
SunTrust Bank II	Lakeland	FL	1/8/2014	—	(2)	590	705	—		—		1,295	72
SunTrust Bank II	Pensacola	FL	1/8/2014	—	(2)	513	297	(74	)	(39	)	697	31
SunTrust Bank II	Plant City	FL	1/8/2014	—	(2)	499	1,139	—		—		1,638	106
SunTrust Bank II	Vero Beach	FL	1/8/2014	—	(2)	825	2,682	—		—		3,507	224
SunTrust Bank II	Osprey	FL	1/8/2014	—	(2)	450	2,086	(187	)	(787	)	1,562	196
SunTrust Bank II	Panama City	FL	1/8/2014	—	(2)	484	1,075	—		—		1,559	98
SunTrust Bank II	Miami	FL	1/8/2014	—	(2)	3,187	3,224	—		—		6,411	272
SunTrust Bank II	Winter Park	FL	1/8/2014	—	(2)	2,264	1,079	—		—		3,343	101
SunTrust Bank II	Fruitland Park	FL	1/8/2014	—	(2)	305	785	(126	)	(292	)	672	75
SunTrust Bank II	Seminole	FL	1/8/2014	—	(2)	1,329	3,486	—		—		4,815	286
SunTrust Bank II	Okeechobee	FL	1/8/2014	—	(2)	339	1,569	—		—		1,908	170
SunTrust Bank II	Norcross	GA	1/8/2014	—	(2)	660	252	(255	)	(88	)	569	25
SunTrust Bank II	Douglasville	GA	1/8/2014	—	(2)	410	749	—		—		1,159	66
SunTrust Bank II	Duluth	GA	1/8/2014	—	(2)	1,081	2,111	—		—		3,192	179
SunTrust Bank II	Atlanta	GA	1/8/2014	—	(2)	1,071	2,293	—		—		3,364	196
SunTrust Bank II	Kennesaw	GA	1/8/2014	—	(2)	930	1,727	(437	)	(741	)	1,479	151
SunTrust Bank II	Cockeysville	MD	1/8/2014	—	(2)	2,184	479	—		—		2,663	41
SunTrust Bank II	Apex	NC	1/8/2014	—	(2)	296	1,240	—		—		1,536	102
SunTrust Bank II	Arden	NC	1/8/2014	—	(2)	374	216	—		—		590	23
SunTrust Bank II	Greensboro	NC	1/8/2014	—	(2)	650	712	(192	)	(189	)	981	71
SunTrust Bank II	Greensboro	NC	1/8/2014	—	(2)	326	633	—		—		959	55
SunTrust Bank II	Salisbury	NC	1/8/2014	—	(2)	264	293	—		—		557	33
SunTrust Bank II	Mauldin	SC	1/8/2014	—	(2)	542	704	—		—		1,246	69
SunTrust Bank II	Nashville	TN	1/8/2014	—	(2)	890	504	—		—		1,394	53
SunTrust Bank II	Chattanooga	TN	1/8/2014	—	(2)	358	564	—		—		922	50
SunTrust Bank II	East Ridge	TN	1/8/2014	—	(2)	276	475	—		—		751	47
SunTrust Bank II	Fredericksburg	VA	1/8/2014	—	(2)	1,623	446	—		—		2,069	46
SunTrust Bank II	Lynchburg	VA	1/8/2014	—	(2)	584	1,255	—		—		1,839	111
SunTrust Bank II	Chesapeake	VA	1/8/2014	—	(2)	490	695	—		—		1,185	64
SunTrust Bank II	Bushnell	FL	1/8/2014	—	(2)	385	1,216	—		—		1,601	96

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
Mattress Firm IV	Meridian	ID	1/9/2014	—	(1)	691	1,193	—		—		1,884	107
Dollar General XII	Sunrise Beach	MO	1/15/2014	—	(1)	105	795	—		—		900	100
FedEx Ground IV	Council Bluffs	IA	1/24/2014	—	(1)	768	3,908	—		—		4,676	365
Mattress Firm V	Florence	AL	1/28/2014	—	(1)	299	1,478	—		—		1,777	128
Mattress Firm I	Aiken	SC	2/5/2014	—	(1)	426	1,029	—		—		1,455	103
Family Dollar VII	Bernice	LA	2/7/2014	—	(1)	51	527	—		—		578	48
Aaron's I	Erie	PA	2/10/2014	—	(1)	126	708	—		—		834	58
AutoZone III	Caro	MI	2/13/2014	—	(1)	135	855	—		—		990	73
C&S Wholesale Grocer I	Westfield	MA	2/21/2014	29,500		12,050	29,727	—		—		41,777	2,737
C&S Wholesale Grocer I	Hatfield (North)	MA	2/21/2014	20,280		1,951	27,528	—		—		29,479	2,514
C&S Wholesale Grocer I	Hatfield (South)	MA	2/21/2014	10,000		1,420	14,169	—		—		15,589	1,047
C&S Wholesale Grocer I	Aberdeen	MD	2/21/2014	22,533		3,615	27,684	—		—		31,299	2,005
C&S Wholesale Grocer I	Birmingham	AL	2/21/2014	—	(1)	4,951	36,894	—		—		41,845	2,685
Advance Auto III	Taunton	MA	2/25/2014	—	(1)	404	1,148	—		—		1,552	88
Family Dollar VIII	Dexter	NM	3/3/2014	—	(1)	79	745	—		—		824	74
Family Dollar VIII	Hale Center	TX	3/3/2014	—	(1)	111	624	—		—		735	62
Family Dollar VIII	Plains	TX	3/3/2014	—	(1)	100	624	—		—		724	62
Dollar General XVII	Tullos	LA	3/5/2014	—	(1)	114	736	—		—		850	63
SunTrust Bank III	Muscle Shoals	AL	3/10/2014	—	(3)	242	1,480	(31	)	(174	)	1,517	135
SunTrust Bank III	Sarasota	FL	3/10/2014	—	(3)	741	852	—		—		1,593	77
SunTrust Bank III	Vero Beach	FL	3/10/2014	—	(3)	675	483	(372	)	(240	)	546	47
SunTrust Bank III	Fort Meade	FL	3/10/2014	—	(3)	175	2,375	(72	)	(899	)	1,579	188
SunTrust Bank III	Port St. Lucie	FL	3/10/2014	—	(3)	913	1,772	—		—		2,685	153
SunTrust Bank III	Mulberry	FL	3/10/2014	—	(3)	406	753	—		—		1,159	67
SunTrust Bank III	Gainesville	FL	3/10/2014	—	(3)	458	2,139	—		—		2,597	170
SunTrust Bank III	Gainesville	FL	3/10/2014	—	(3)	457	816	—		—		1,273	73
SunTrust Bank III	Gulf Breeze	FL	3/10/2014	—	(3)	1,092	1,569	—		—		2,661	134
SunTrust Bank III	Sarasota	FL	3/10/2014	—	(3)	955	1,329	—		—		2,284	112
SunTrust Bank III	Hobe Sound	FL	3/10/2014	—	(3)	442	1,521	(182	)	(574	)	1,207	124
SunTrust Bank III	Port St. Lucie	FL	3/10/2014	—	(3)	996	872	(555	)	(441	)	872	81
SunTrust Bank III	Mount Dora	FL	3/10/2014	—	(3)	570	1,933	—		—		2,503	153
SunTrust Bank III	Daytona Beach	FL	3/10/2014	—	(3)	376	1,379	(174	)	(585	)	996	117
SunTrust Bank III	Lutz	FL	3/10/2014	—	(3)	438	1,477	—		—		1,915	117
SunTrust Bank III	Jacksonville	FL	3/10/2014	—	(3)	871	372	—		—		1,243	37
SunTrust Bank III	Jacksonville	FL	3/10/2014	—	(3)	366	1,136	—		—		1,502	95

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank III	Boca Raton	FL	3/10/2014	—	(3)	1,617	690	(364	)	(142	)	1,801	60
SunTrust Bank III	Tamarac	FL	3/10/2014	—	(3)	997	1,241	—		—		2,238	105
SunTrust Bank III	Pompano Beach	FL	3/10/2014	—	(3)	886	2,024	—		—		2,910	159
SunTrust Bank III	St. Cloud	FL	3/10/2014	—	(3)	1,046	1,887	—		—		2,933	155
SunTrust Bank III	Ormond Beach	FL	3/10/2014	—	(3)	1,047	1,566	—		—		2,613	137
SunTrust Bank III	Daytona Beach	FL	3/10/2014	—	(3)	443	1,586	—		—		2,029	137
SunTrust Bank III	Ormond Beach	FL	3/10/2014	—	(3)	854	1,385	—		—		2,239	117
SunTrust Bank III	Ormond Beach	FL	3/10/2014	—	(3)	873	2,235	—		—		3,108	178
SunTrust Bank III	Brooksville	FL	3/10/2014	—	(3)	460	954	(175	)	(331	)	908	84
SunTrust Bank III	Inverness	FL	3/10/2014	—	(3)	867	2,559	—		—		3,426	210
SunTrust Bank III	Indian Harbour Beach	FL	3/10/2014	—	(3)	914	1,181	—		—		2,095	138
SunTrust Bank III	Melbourne	FL	3/10/2014	—	(3)	772	1,927	—		—		2,699	158
SunTrust Bank III	Orlando	FL	3/10/2014	—	(3)	1,234	1,125	—		—		2,359	97
SunTrust Bank III	Orlando	FL	3/10/2014	—	(3)	874	1,922	—		—		2,796	154
SunTrust Bank III	St. Petersburg	FL	3/10/2014	—	(3)	803	1,043	—		—		1,846	86
SunTrust Bank III	Casselberry	FL	3/10/2014	—	(3)	609	2,443	—		—		3,052	195
SunTrust Bank III	Rockledge	FL	3/10/2014	—	(3)	742	1,126	—		—		1,868	94
SunTrust Bank III	New Smyrna Beach	FL	3/10/2014	—	(3)	244	1,245	(115	)	(536	)	838	104
SunTrust Bank III	New Port Richey	FL	3/10/2014	—	(3)	602	1,104	(330	)	(554	)	822	93
SunTrust Bank III	Tampa	FL	3/10/2014	—	(3)	356	1,042	(149	)	(394	)	855	103
SunTrust Bank III	Lakeland	FL	3/10/2014	—	(3)	927	1,594	—		—		2,521	155
SunTrust Bank III	Ocala	FL	3/10/2014	—	(3)	347	1,336	—		—		1,683	151
SunTrust Bank III	St. Petersburg	FL	3/10/2014	—	(3)	211	1,237	(107	)	(576	)	765	103
SunTrust Bank III	Atlanta	GA	3/10/2014	—	(3)	3,027	4,873	—		—		7,900	367
SunTrust Bank III	Atlanta	GA	3/10/2014	—	(3)	4,422	1,559	—		—		5,981	130
SunTrust Bank III	Stone Mountain	GA	3/10/2014	—	(3)	605	522	—		—		1,127	43
SunTrust Bank III	Lithonia	GA	3/10/2014	—	(3)	212	770	—		—		982	64
SunTrust Bank III	Union City	GA	3/10/2014	—	(3)	400	542	—		—		942	48
SunTrust Bank III	Peachtree City	GA	3/10/2014	—	(3)	887	2,242	—		—		3,129	188
SunTrust Bank III	Stockbridge	GA	3/10/2014	—	(3)	358	760	—		—		1,118	66
SunTrust Bank III	Conyers	GA	3/10/2014	—	(3)	205	1,334	—		—		1,539	105
SunTrust Bank III	Morrow	GA	3/10/2014	—	(3)	400	1,759	(74	)	(301	)	1,784	139
SunTrust Bank III	Marietta	GA	3/10/2014	—	(3)	2,168	1,169	—		—		3,337	103
SunTrust Bank III	Marietta	GA	3/10/2014	—	(3)	1,087	2,056	—		—		3,143	159
SunTrust Bank III	Thomson	GA	3/10/2014	—	(3)	91	719	—		—		810	66

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank III	Savannah	GA	3/10/2014	—	(3)	224	1,116	—		—		1,340	91
SunTrust Bank III	Savannah	GA	3/10/2014	—	(3)	458	936	—		—		1,394	92
SunTrust Bank III	Macon	GA	3/10/2014	—	(3)	214	771	—		—		985	71
SunTrust Bank III	Albany	GA	3/10/2014	—	(3)	260	531	(25	)	(45	)	721	61
SunTrust Bank III	Sylvester	GA	3/10/2014	—	(3)	242	845	—		—		1,087	72
SunTrust Bank III	Brunswick	GA	3/10/2014	—	(3)	384	888	—		—		1,272	77
SunTrust Bank III	Athens	GA	3/10/2014	—	(3)	427	472	—		—		899	60
SunTrust Bank III	Cartersville	GA	3/10/2014	—	(3)	658	1,734	—		—		2,392	140
SunTrust Bank III	Annapolis	MD	3/10/2014	—	(3)	3,331	1,655	(1,739	)	(803	)	2,444	117
SunTrust Bank III	Cambridge	MD	3/10/2014	—	(3)	1,130	1,265	(187	)	(194	)	2,014	92
SunTrust Bank III	Avondale	MD	3/10/2014	—	(3)	1,760	485	—		—		2,245	42
SunTrust Bank III	Asheboro	NC	3/10/2014	—	(3)	458	774	—		—		1,232	68
SunTrust Bank III	Bessemer City	NC	3/10/2014	—	(3)	212	588	(47	)	(119	)	634	49
SunTrust Bank III	Charlotte	NC	3/10/2014	—	(3)	529	650	—		—		1,179	53
SunTrust Bank III	Charlotte	NC	3/10/2014	—	(3)	563	750	—		—		1,313	67
SunTrust Bank III	Dunn	NC	3/10/2014	—	(3)	384	616	—		—		1,000	57
SunTrust Bank III	Durham	NC	3/10/2014	—	(3)	488	742	—		—		1,230	60
SunTrust Bank III	Durham	NC	3/10/2014	—	(3)	284	506	—		—		790	51
SunTrust Bank III	Greensboro	NC	3/10/2014	—	(3)	488	794	—		—		1,282	72
SunTrust Bank III	Hendersonville	NC	3/10/2014	—	(3)	468	945	—		—		1,413	79
SunTrust Bank III	Lenoir	NC	3/10/2014	—	(3)	1,021	3,980	—		—		5,001	302
SunTrust Bank III	Lexington	NC	3/10/2014	—	(3)	129	266	(18	)	(33	)	344	34
SunTrust Bank III	Mebane	NC	3/10/2014	—	(3)	500	887	—		—		1,387	71
SunTrust Bank III	Oxford	NC	3/10/2014	—	(3)	530	1,727	—		—		2,257	133
SunTrust Bank III	Rural Hall	NC	3/10/2014	—	(3)	158	193	(61	)	(67	)	223	20
SunTrust Bank III	Winston-Salem	NC	3/10/2014	—	(3)	362	513	—		—		875	45
SunTrust Bank III	Yadkinville	NC	3/10/2014	—	(3)	438	765	—		—		1,203	61
SunTrust Bank III	Greenville	SC	3/10/2014	—	(3)	377	871	—		—		1,248	73
SunTrust Bank III	Greenville	SC	3/10/2014	—	(3)	264	684	—		—		948	58
SunTrust Bank III	Greenville	SC	3/10/2014	—	(3)	590	1,007	—		—		1,597	89
SunTrust Bank III	Greenville	SC	3/10/2014	—	(3)	449	1,640	—		—		2,089	168
SunTrust Bank III	Nashville	TN	3/10/2014	—	(3)	204	740	—		—		944	57
SunTrust Bank III	Nashville	TN	3/10/2014	—	(3)	1,776	1,601	—		—		3,377	148
SunTrust Bank III	Brentwood	TN	3/10/2014	—	(3)	885	1,987	—		—		2,872	160
SunTrust Bank III	Brentwood	TN	3/10/2014	—	(3)	996	1,536	—		—		2,532	126

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank III	Smyrna	TN	3/10/2014	—	(3)	501	767	—		—		1,268	71
SunTrust Bank III	Murfreesboro	TN	3/10/2014	—	(3)	451	847	—		—		1,298	65
SunTrust Bank III	Murfreesboro	TN	3/10/2014	—	(3)	262	182	—		—		444	21
SunTrust Bank III	Soddy Daisy	TN	3/10/2014	—	(3)	338	624	—		—		962	49
SunTrust Bank III	Signal Mountain	TN	3/10/2014	—	(3)	296	697	—		—		993	57
SunTrust Bank III	Chattanooga	TN	3/10/2014	—	(3)	419	811	—		—		1,230	65
SunTrust Bank III	Chattanooga	TN	3/10/2014	—	(3)	191	335	—		—		526	27
SunTrust Bank III	Kingsport	TN	3/10/2014	—	(3)	162	260	—		—		422	24
SunTrust Bank III	Loudon	TN	3/10/2014	—	(3)	331	541	(38	)	(56	)	778	45
SunTrust Bank III	Morristown	TN	3/10/2014	—	(3)	214	444	—		—		658	51
SunTrust Bank III	Richmond	VA	3/10/2014	—	(3)	153	313	—		—		466	31
SunTrust Bank III	Richmond	VA	3/10/2014	—	(3)	233	214	—		—		447	21
SunTrust Bank III	Fairfax	VA	3/10/2014	—	(3)	2,835	1,081	—		—		3,916	86
SunTrust Bank III	Lexington	VA	3/10/2014	—	(3)	122	385	—		—		507	36
SunTrust Bank III	Roanoke	VA	3/10/2014	—	(3)	316	734	—		—		1,050	60
SunTrust Bank III	Williamsburg	VA	3/10/2014	—	(3)	447	585	—		—		1,032	55
SunTrust Bank III	Onancock	VA	3/10/2014	—	(3)	829	1,300	—		—		2,129	99
SunTrust Bank III	Accomac	VA	3/10/2014	—	(3)	149	128	—		—		277	10
SunTrust Bank III	Painter	VA	3/10/2014	—	(3)	89	259	(14	)	(37	)	297	24
SunTrust Bank III	Stafford	VA	3/10/2014	—	(3)	2,130	1,714	—		—		3,844	138
SunTrust Bank III	Roanoke	VA	3/10/2014	—	(3)	753	1,165	—		—		1,918	99
SunTrust Bank III	Melbourne	FL	3/10/2014	—	(3)	788	1,888	—		—		2,676	149
SunTrust Bank III	Raleigh	NC	3/10/2014	—	(3)	629	1,581	—		—		2,210	118
SunTrust Bank III	Richmond	VA	3/10/2014	—	(3)	3,141	7,441	(706	)	(1,517	)	8,359	692
SunTrust Bank IV	Lake Mary	FL	3/10/2014	—	(4)	1,911	2,849	—		—		4,760	226
SunTrust Bank IV	Bayonet Point	FL	3/10/2014	—	(4)	528	1,172	(257	)	(524	)	919	97
SunTrust Bank IV	St. Augustine	FL	3/10/2014	—	(4)	489	2,129	—		—		2,618	168
SunTrust Bank IV	Deltona	FL	3/10/2014	—	(4)	631	1,512	(300	)	(655	)	1,188	132
SunTrust Bank IV	Spring Hill	FL	3/10/2014	—	(4)	673	2,550	—		—		3,223	197
SunTrust Bank IV	Pembroke Pines	FL	3/10/2014	—	(4)	1,688	548	—		—		2,236	56
SunTrust Bank IV	Palm Coast	FL	3/10/2014	—	(4)	447	1,548	(218	)	(691	)	1,086	130
SunTrust Bank IV	Clearwater	FL	3/10/2014	—	(4)	783	1,936	—		—		2,719	149
SunTrust Bank IV	Ocala	FL	3/10/2014	—	(4)	581	1,091	—		—		1,672	104
SunTrust Bank IV	Ocala	FL	3/10/2014	—	(4)	559	750	—		—		1,309	80
SunTrust Bank IV	Chamblee	GA	3/10/2014	—	(4)	1,029	813	—		—		1,842	72

(In thousands)						Initial Costs		Subsequent to Acquisition				Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016		Land	Building and Improvements	Land (5)		Building and Improvements (5)			Accumulated Depreciation (8) (9)
SunTrust Bank IV	Stone Mountain	GA	3/10/2014	—	(4)	461	475	—		—		936	41
SunTrust Bank IV	Columbus	GA	3/10/2014	—	(4)	417	1,395	—		—		1,812	114
SunTrust Bank IV	Madison	GA	3/10/2014	—	(4)	304	612	—		—		916	47
SunTrust Bank IV	Prince Frederick	MD	3/10/2014	—	(4)	2,431	940	—		—		3,371	83
SunTrust Bank IV	Charlotte	NC	3/10/2014	—	(4)	651	444	—		—		1,095	46
SunTrust Bank IV	Creedmoor	NC	3/10/2014	—	(4)	306	789	—		—		1,095	67
SunTrust Bank IV	Greensboro	NC	3/10/2014	—	(4)	619	742	—		—		1,361	78
SunTrust Bank IV	Pittsboro	NC	3/10/2014	—	(4)	61	510	—		—		571	37
SunTrust Bank IV	Roxboro	NC	3/10/2014	—	(4)	234	1,100	—		—		1,334	84
SunTrust Bank IV	Liberty	SC	3/10/2014	—	(4)	254	911	(145	)	(478	)	542	72
SunTrust Bank IV	Nashville	TN	3/10/2014	—	(4)	1,035	745	—		—		1,780	60
SunTrust Bank IV	Johnson City	TN	3/10/2014	—	(4)	174	293	—		—		467	32
SunTrust Bank IV	Gloucester	VA	3/10/2014	—	(4)	154	2,281	—		—		2,435	177
SunTrust Bank IV	Collinsville	VA	3/10/2014	—	(4)	215	555	—		—		770	47
SunTrust Bank IV	Stuart	VA	3/10/2014	—	(4)	374	1,532	—		—		1,906	122
SunTrust Bank IV	Douglas	GA	3/10/2014	—	(4)	73	1,248	—		—		1,321	97
Dollar General XVIII	Deville	LA	3/19/2014	—	(1)	93	741	—		—		834	61
Mattress Firm I	Holland	MI	3/19/2014	—	(1)	507	1,014	—		—		1,521	93
Sanofi US I	Bridgewater	NJ	3/20/2014	125,000		16,009	194,287	—		—		210,296	14,315
Dollar General XVII	Hornbeck	LA	3/25/2014	—	(1)	82	780	—		—		862	64
Family Dollar IX	Fannettsburg	PA	4/8/2014	—	(1)	165	803	—		—		968	64
Mattress Firm I	Saginaw	MI	4/8/2014	—	(1)	337	1,140	—		—		1,477	99
Bi-Lo I	Greenville	SC	5/8/2014	—	(1)	1,504	4,770	—		—		6,274	363
Stop & Shop I	Bristol	RI	5/8/2014	7,715		2,860	10,010	—		—		12,870	743
Stop & Shop I	Cumberland	RI	5/8/2014	—	(1)	3,295	13,693	—		—		16,988	1,044
Stop & Shop I	Framingham	MA	5/8/2014	8,572		3,971	12,289	—		—		16,260	851
Stop & Shop I	Hyde Park	NY	5/8/2014	—	(1)	3,154	10,646	—		—		13,800	787
Stop & Shop I	Malden	MA	5/8/2014	11,752		4,418	15,195	—		—		19,613	1,048
Stop & Shop I	Sicklerville	NJ	5/8/2014	—	(1)	2,367	9,873	—		—		12,240	711
Stop & Shop I	Southington	CT	5/8/2014	—	(1)	3,238	13,169	—		—		16,407	960
Stop & Shop I	Swampscott	MA	5/8/2014	10,232		3,644	12,982	—		—		16,626	894
Dollar General XVII	Forest Hill	LA	5/12/2014	—	(1)	83	728	—		—		811	59
Dollar General XIX	Chelsea	OK	5/13/2014	—	(1)	231	919	—		—		1,150	81
Dollar General XX	Brookhaven	MS	5/14/2014	—	(1)	186	616	—		—		802	49
Dollar General XX	Columbus	MS	5/14/2014	—	(1)	370	491	—		—		861	44

(In thousands)							Initial Costs				Subsequent to Acquisition						Gross Amount Carried at December  31, 2016 (6) (7)
Property	City	State	Acquisition Date	Encumbrances at December 31, 2016			Land		Building and Improvements		Land (5)			Building and Improvements (5)					Accumulated Depreciation (8) (9)
Dollar General XX	Forest	MS	5/14/2014	—		(1)	72		856		—			—			928		64
Dollar General XX	Rolling Fork	MS	5/14/2014	—		(1)	244		929		—			—			1,173		71
Dollar General XX	West Point	MS	5/14/2014	—		(1)	318		506		—			—			824		48
Dollar General XXI	Huntington	WV	5/29/2014	—		(1)	101		1,101		—			—			1,202		91
Dollar General XXII	Warren	IN	5/30/2014	—		(1)	88		962		—			—			1,050		67
FedEx Ground V	Sioux City	IA	2/17/2016	—			199		5,639		—			—			5,838		137
FedEx Ground VI	Grand Forks	ND	2/19/2016	—			1,287		8,988		—			—			10,275		247
FedEx Ground VII	Eagle River	WI	2/19/2016	—			40		6,022		—			—			6,062		157
FedEx Ground VIII	Wausau	WI	2/23/2016	—			202		9,017		—			—			9,219		250
Encumbrances allocated based on notes below				784,342
Total				$	1,037,767		$	337,461	$	1,411,458	$	(8,805	)	$	(15,856	)	$	1,724,258	$	183,437

  ___________________________________

(1) These properties collateralize a multi-tenant mortgage loan, which had $649.5 million outstanding as of December 31, 2016.

(2) These properties collateralize a mortgage note payable of $25.0 million as of December 31, 2016.

(3) These properties collateralize a mortgage note payable of $88.6 million as of December 31, 2016.

(4) These properties collateralize a mortgage note payable of $21.2 million as of December 31, 2016.

(5) During the year ended December 31, 2016, the Company determined that the carrying value of 43 properties operated by SunTrust exceeded their estimated fair values and recognized an impairment charge of $24.7 million.

(6) Acquired intangible lease assets allocated to individual properties in the amount of $300.1 million are not reflected in the table above.

(7) The tax basis of aggregate land, buildings and improvements as of December 31, 2016 is $2.0 billion.

(8) The accumulated depreciation column excludes $103.7 million of accumulated amortization associated with acquired intangible lease assets.

(9) Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements and five years for fixtures.

The following is a summary of activity for real estate and accumulated depreciation for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(In thousands)	2016			2015		2014
Real estate investments, at cost:
Balance at beginning of year	$	1,899,099		$	1,899,099	$	1,016,599
Additions - acquisitions	31,392			—		882,500
Disposals	(31,547		)	—		—
Impairment charges	(24,661		)	—		—
Reclassified to assets held for sale	(150,025		)	—		—
Balance at end of the year	$	1,724,258		$	1,899,099	$	1,899,099
Accumulated depreciation:
Balance at beginning of year	$	141,594		$	74,648	$	12,077
Depreciation expense	66,831			66,946		62,571
Disposals	(1,018		)	—		—
Reclassified to assets held for sale	(23,970		)	—		—
Balance at end of the year	$	183,437		$	141,594	$	74,648

XML

Mortgage Loans on Real Estate - Schedule IV

12 Months Ended

Dec. 31, 2016

Mortgage Loans on Real Estate [Abstract]

Mortgage Loans on Real Estate - Schedule IV

(Dollar amounts in thousands)
Loan Type	Property Type	Par Value		Carrying Amount		Interest Rate	Payment Terms	Maturity Date
Senior	Student Housing — Multifamily	$	17,200	$	17,175	1M LIBOR + 4.5%	Interest Only	Nov. 2018
		$	17,200	$	17,175

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting

The accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP").

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.

Reportable Segments

Reportable Segment

The Company has one reportable segment, income-producing properties, which consists of activities related to investing in real estate.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, and fair value measurements, as applicable.

Real Estate Investments

Real Estate Investments

Investments in real estate are recorded at cost. Improvements and replacements are capitalized when they extend the useful life of the asset. Costs of repairs and maintenance are expensed as incurred.

The Company evaluates the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive (loss) income. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets.

In business combinations, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. Tangible assets may include land, land improvements, buildings, fixtures and tenant improvements. Intangible assets may include the value of in-place leases and above- and below- market leases. In addition, any assumed mortgages receivable or payable and any assumed or issued noncontrolling interests are recorded at their estimated fair values.

The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease, including any below-market fixed rate renewal options for below-market leases.

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above or below-market interest rates.

In allocating non-controlling interests, amounts are recorded based on the fair value of units issued at the date of acquisition, as determined by the terms of the applicable agreement.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including real estate valuations, prepared by independent valuation firms. The Company also considers information and other factors including: market conditions, the industry that the tenant operates in, characteristics of the real estate, i.e.: location, size, demographics, value and comparative rental rates, tenant credit profile, store profitability and the importance of the location of the real estate to the operations of the tenant's business.

Real estate investments that are intended to be sold are designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Real estate investments are no longer depreciated when they are classified as held for sale. If the disposal, or intended disposal, of certain real estate investments represents a strategic shift that has had or will have a major effect on the Company's operations and financial results, the operations of such real estate investments would be presented as discontinued operations in the consolidated statements of operations and comprehensive (loss) income for all applicable periods.

Depreciation and Amortization

Depreciation and Amortization

The Company is required to make subjective assessments as to the useful lives of the components of the Company's real estate investments for purposes of determining the amount of depreciation to record on an annual basis. These assessments have a direct impact on the Company's net income because if the Company were to shorten the expected useful lives of its real estate investments, it would depreciate these investments over fewer years, resulting in more depreciation expense and lower net income on an annual basis.

Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five years for fixtures and improvements and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.

Capitalized above-market ground lease values are amortized as a reduction of property operating expense over the remaining terms of the respective leases. Capitalized below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option periods.

The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases.

Assumed mortgage premiums or discounts are amortized as an increase or reduction to interest expense over the remaining terms of the respective mortgages.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

When circumstances indicate the carrying value of a property may not be recoverable, we review the property for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income.

Commercial Mortgage Loans

Commercial Mortgage Loans

Commercial mortgage loans held for investment purposes are anticipated to be held until maturity, and accordingly, are carried at cost, net of unamortized acquisition fees and expenses capitalized, discounts or premiums and unfunded commitments. Commercial mortgage loans that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums and capitalized acquisition fees and expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income from debt investments in the Company's consolidated statements of operations and comprehensive (loss) income. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan exit fees is recognized in interest income from debt investments in the Company's consolidated statements of operations and comprehensive (loss) income.

Acquisition fees and expenses incurred in connection with the origination and acquisition of commercial mortgage loan investments are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment.

Commercial mortgage loans held for sale are carried at the lower of cost or fair value. The Company evaluates fair value on an individual loan basis. The amount by which cost exceeds fair value is accounted for as a valuation allowance, and changes in the valuation allowance are included in net income. Purchase discounts are no longer amortized during the period the loans are held for sale.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less and funds in overnight sweeps, in which excess funds over an established threshold are swept daily. The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (the "FDIC") up to an insurance limit.

Deferred Costs, Net

Deferred Costs, Net

Deferred costs, net consists of deferred financing costs, deferred commitment fees and deferred leasing costs, net of accumulated amortization.

Deferred financing costs represent legal fees and other costs associated with obtaining financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method and included in interest expense on the accompanying consolidated statements of operations and comprehensive (loss) income. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity.  Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.

Deferred commitment fees represent fees associated with obtaining commitments for financing. These costs are amortized over the term of the commitment period.

Deferred leasing costs, consisting primarily of lease commissions and payments made to execute new leases, are deferred and amortized over the term of the lease.

Revenue Recognition

Revenue Recognition

The Company's revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Because many of the Company's leases provide for rental increases at specified intervals, straight-line basis accounting requires the Company to record a receivable, and include in revenues, unbilled rents receivable that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. When the Company acquires a property, acquisition date is considered to be the commencement date for purposes of this calculation. For new leases after acquisition, the commencement date is considered to be the date the tenant takes control of the space. For lease modifications, the commencement date is considered to be the date the lease is executed. The Company defers the revenue related to lease payments received from tenants in advance of their due dates.

The Company owns certain properties with leases that include provisions for the tenant to pay contingent rental income based on a percent of the tenant's sales upon the achievement of certain sales thresholds or other targets which may be monthly, quarterly or annual targets. As the lessor to the aforementioned leases, the Company defers the recognition of contingent rental income, until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known. Contingent rental income is included in rental income on the accompanying consolidated statements of operations and comprehensive (loss) income.

The Company continually reviews receivables related to rent and unbilled rents receivable and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company records an increase in the Company's allowance for uncollectible accounts or records a direct write-off of the receivable in the Company's consolidated statements of operations and comprehensive (loss) income.

Cost recoveries from tenants are included in operating expense reimbursements on the accompanying consolidated statements of operations and comprehensive (loss) income in the period the related costs are incurred, as applicable.

Offering and Related Costs

Offering and Related Costs

Offering and related costs included all expenses incurred in connection with the Company's IPO. Some offering costs (other than selling commissions and the dealer manager fee) of the Company were paid by the Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. These costs included but were not limited to (i) legal, accounting, printing, mailing, and filing fees; (ii) escrow related fees; (iii) reimbursement of the Former Dealer Manager for amounts it paid to reimburse the itemized and detailed due diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organization and offering costs paid by them on behalf of the Company, provided that the Advisor is obligated to reimburse the Company to the extent organization and offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in its offering exceed 2.0% of gross offering proceeds. As a result, these costs were only a liability of the Company to the extent selling commissions, the dealer manager fees and other organization and offering costs did not exceed 12.0% of the gross proceeds determined at the end of the IPO. As of the end of the IPO, offering costs were less than 12.0% of the gross proceeds received in the IPO (See Note 12 —Related Party Transactions and Arrangements).

Share-Based Compensation

Share-Based Compensation

The Company has a stock-based award plan, which is accounted for under the guidance for share based payments. The expense for such awards is included in general and administrative expenses and is recognized in accordance with the service period required or when the requirements for exercise of the award have been met (See Note 14 —Share-Based Compensation).

Income Taxes

Income Taxes

The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with the taxable year ended December 31, 2013. The Company believes that, commencing with such taxable year, it has been organized and has operated in a manner so that it qualifies for taxation as a REIT under the Code. The Company intends to continue to operate in such a manner, but no assurance can be given that the Company will operate in a manner so as to remain qualified as a REIT. In order to continue to qualify for taxation as a REIT, the Company must distribute annually at least 90% of its REIT taxable income (which does not equal net income as calculated in accordance with GAAP), determined without regard for the deduction for dividends paid and excluding net capital gains, and must comply with a number of other organizational and operational requirements. If the Company continues to qualify for taxation as a REIT, it generally will not be subject to federal corporate income tax on that portion of its REIT taxable income that it distributes to its stockholders. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and properties, as well as federal income and excise taxes on its undistributed income.

The amount of distributions payable to the Company's stockholders is determined by the board of directors and is dependent on a number of factors, including funds available for distribution, financial condition, capital expenditure requirements, as applicable, and annual distribution requirements needed to qualify and maintain the Company's status as a REIT under the Code.

Per Share Data

Per Share Data

Basic net income (loss) per share of common stock is calculated by dividing net income (loss) by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted net income (loss) per share of common stock considers the effect of potentially dilutive instruments outstanding during such period.

Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2015, the Financial Accounting Standards Board ("FASB") amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements.

In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company elected to adopt this guidance effective January 1, 2016. As a result, the Company reclassified $15.5 million and $20.1 million of deferred issuance costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable in the Company's consolidated balance sheets as of December 31, 2016 and December 31, 2015, respectively.

In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016, electing to account for forfeitures when they occur, and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company is evaluating the impact of the implementation of this guidance, including performing a preliminary review of all revenue streams to identify any differences in the timing, measurement or presentation of revenue recognition. The Company is continuing to evaluate the allowable methods of adoption.

In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity's accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of the new guidance.

In February 2016, the FASB issued an update which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company has begun developing an inventory of all leases as well as identifying any non-lease components in our lease arrangements. The Company is continuing to evaluate the impact of this new guidance.

In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. The company is currently evaluating the impact of this new guidance.

In August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In October 2016, the FASB issued guidance relating to interest held through related parties that are under common control, where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance.

In January 2017, the FASB issued guidance that revises the definition of a business. This new guidance is applicable when evaluating whether an acquisition should be treated as either a business acquisition or an asset acquisition. Under the revised guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset or group of similar assets, the assets acquired would not be considered a business. The revised guidance is effective for reporting periods beginning after December 15, 2017, and the amendments will be applied prospectively. Early application is permitted only for transactions that have not previously been reported in issued financial statements. The Company has assessed this revised guidance and expects, based on historical property acquisitions, for future properties acquired to qualify as an asset acquisition rather than a business acquisition, which would result in the capitalization of related transaction costs. The Company has not adopted this guidance as of December 31, 2016.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Distributions

The following table details from a tax perspective, the portion of distributions classified as return of capital, ordinary dividend income and capital gain, per share per annum, for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
	2016				2015				2014
Return of capital	76.0	%	$	1.25	89.9	%	$	1.48	55.5	%	$	0.91
Ordinary dividend income	24.0	%	0.40		10.1	%	0.17		44.2	%	0.73
Capital gain	—	%	—		—	%	—		0.3	%	0.01
Total	100.0	%	$	1.65	100.0	%	$	1.65	100.0	%	$	1.65

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Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2016

Real Estate Investments, Net [Abstract]

Purchase Price of Acquired Properties

The following table presents the allocation of assets acquired and liabilities assumed during the years ended December 31, 2016 and 2014. No properties were acquired during the year ended December 31, 2015.

(Dollar amounts in thousands)	Year Ended December 31, 2016			Year Ended December 31, 2014
Real estate investments, at cost:
Land	$	1,729		$	210,379
Buildings, fixtures and improvements	29,664			672,121
Total tangible assets	31,393			882,500
Acquired intangibles:
In-place leases (1)	3,162			175,152
Above-market lease assets (1)	548			13,403
Above-market ground lease liability (1)	(85		)	—
Below-market lease liabilities (1)	(774		)	(19,692		)
Total intangible assets, net	2,851			168,863
Mortgage notes payable assumed	—			(462,238		)
Premiums on mortgage notes payable assumed	—			(27,862		)
Deposits paid in prior periods	—			(33,035		)
Cash paid for acquired real estate investments	$	34,244		$	528,228
Number of properties purchased	4			224

_____________________________________

(1) Weighted-average remaining amortization periods for in-place leases, above-market lease assets, above-market ground lease liability and below-market lease liabilities acquired during the year ended December 31, 2016 were 9.5 years, 9.6 years, 48.6 years and 9.5 years, respectively, as of each property's respective acquisition date.

Schedule of Intangible Assets and Goodwill

Total acquired intangible lease assets and liabilities consist of the following as of the dates presented:

	December 31, 2016						December 31, 2015
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	286,548	$	95,547	$	191,001	$	305,245	$	68,278	$	236,967
Above-market leases	13,581		8,106		5,475		13,783		5,555		8,228
Total acquired intangible lease assets	$	300,129	$	103,653	$	196,476	$	319,028	$	73,833	$	245,195
Intangible liabilities:
Above-market ground lease liability	$	85	$	1	$	84	$	—	$	—	$	—
Below-market lease liabilities	18,443		4,612		13,831		20,623		2,490		18,133
Total acquired intangible lease liabilities	$	18,528	$	4,613	$	13,915	$	20,623	$	2,490	$	18,133

Finite-lived Intangible Assets Amortization Expense

The following table provides the projected amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the next five years:

(In thousands)	2017			2018			2019			2020			2021
In-place leases	$	31,788		$	22,598		$	22,581		$	20,964		$	19,718
Total to be added to depreciation and amortization	$	31,788		$	22,598		$	22,581		$	20,964		$	19,718
Above-market leases	$	(2,815	)	$	(526	)	$	(526	)	$	(526	)	$	(526	)
Below-market lease liabilities	2,332			963			963			963			963
Total to be added to rental income	$	(483	)	$	437		$	437		$	437		$	437
Above-market ground lease liability	$	(2	)	$	(2	)	$	(2	)	$	(2	)	$	(2	)
Total to be deducted from property operating expense	$	(2	)	$	(2	)	$	(2	)	$	(2	)	$	(2	)

The following table presents amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
(In thousands)	2016			2015			2014
In-place leases	$	34,247		$	34,600		$	30,808
Total added to depreciation and amortization	$	34,247		$	34,600		$	30,808
Above-market leases	$	(2,943	)	$	(3,006	)	$	(2,549	)
Below-market lease liabilities	2,465			1,340			1,128
Total deducted from rental income	$	(478	)	$	(1,666	)	$	(1,421	)
Above-market ground lease liability	$	(1	)	$	—		$	—
Total deducted from property operating expense	$	(1	)	$	—		$	—

Business Acquisition, Pro Forma Information

The following table presents unaudited pro forma information as if the acquisitions during the year ended December 31, 2016 had been consummated on January 1, 2015:

	Year Ended December 31,
(In thousands, except per share data)	2016 (1)			2015
Pro forma revenues	$	178,057		$	177,352
Pro forma net loss	$	(54,129	)	$	(19,902	)
Basic and diluted pro forma net loss per share	$	(0.83	)	$	(0.30	)

_____________________

(1) For the year ended December 31, 2016, aggregate revenues and net income derived from the Company's 2016 acquisitions (for the Company's period of ownership) were $2.5 million and $1.1 million, respectively.

Schedule of Future Minimum Rental Payments for Operating Leases

The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items:

(In thousands)	Future Minimum Base Rent Payments
2017	$	159,895
2018	153,841
2019	155,931
2020	150,760
2021	149,425
Thereafter	763,420
	$	1,533,272

Schedule of Annualized Rental Income by Major Tenants

The following table lists the tenants (including, for this purpose, all affiliates of such tenants) from which the Company derives annualized rental income on a straight-line basis constituting 10.0% or more of the Company's consolidated annualized rental income on a straight-line basis for all portfolio properties as of the dates indicated:

	December 31,
Tenant	2016	2015
SunTrust Bank	17.7%	17.9%
Sanofi US	11.4%	11.6%
C&S Wholesale Grocer	10.2%	10.4%

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis each represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of December 31, 2016 and 2015:

	December 31,
State	2016	2015
New Jersey	20.0%	20.3%
Georgia	11.0%	11.2%

Summary of Assets Held-for-Sale

The following table details the major classes of assets associated with the properties that have been reclassified as held for sale as of December 31, 2016. There were no properties held for sale as of December 31, 2015:

(Dollar amounts in thousands)	Year Ended December 31, 2016
Real estate investments held for sale, at cost:
Land	$	7,225
Buildings, fixtures and improvements	142,798
Acquired intangible lease assets	18,145
Total real estate assets held for sale, at cost	168,168
Less accumulated depreciation and amortization	(29,213		)
Total real estate investments held for sale, net	138,955
Impairment charges related to properties reclassified as held for sale	(1,353		)
Assets held for sale	$	137,602

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Commercial Mortgage Loans (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Composition and Summary of Loan Portfolio

The following table is a summary of the Company's commercial loan portfolio:

		December 31, 2016				December 31, 2015
Loan Type	Property Type	Par Value		Percentage		Par Value			Percentage
		(In thousands)				(In thousands)
Senior	Student Housing — Multifamily	$	17,200	100	%	$	17,200		21.6	%
Senior	Retail	—		—	%	18,150		(1)	22.7	%
Senior	Hospitality	—		—	%	44,500		(1)	55.7	%
		$	17,200	100.0	%	$	79,850		100.0	%

_____________________________________

(1) These loans were classified as held for sale as of December 31, 2015 and were sold during the year ended December 31, 2016 for $56.9 million. The Company recognized a loss of $5.5 million on its commercial mortgage loans held for sale during the year ended December 31, 2015.

For the year ended December 31, 2016, the activity in the Company's commercial mortgage loans, held for investment, was as follows:

(In thousands)	Year Ended December 31, 2016		December 31, 2015
Beginning balance	$	17,135	$	—
Originations	—		79,410
Reclassifications to assets held for sale	—		(56,884		)
Loss on assets held for sale	—		(5,476		)
Discount accretion and premium amortization (1)	40		85
Ending balance	$	17,175	$	17,135

_____________________________________

(1) Includes amortization of capitalized origination fees and expenses.

Summary of Credit Characteristics

As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The loans are scored on a scale of 1 to 5 as follows:

Investment Rating	Summary Description
1	Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2	Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3	Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4	Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative.
5	Underperforming investment with expected loss of interest and some principal.

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Commercial Mortgage-Backed Securities (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Summary of Mortgage-Backed Securities

The following table details the realized loss on commercial mortgage-backed securities ("CMBS") sold during the year ended December 31, 2015. No CMBS were acquired or sold during the years ended December 31, 2016 or 2014:

(In thousands)	Amortized Cost		Sale Price		Realized Loss
Year Ended December 31, 2015	$	30,209	$	28,624	$	1,585

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Other Real Estate Securities (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of Realized Gain (Loss)

The following table details the realized gains on sale of the Company's other real estate securities, which consisted of redeemable preferred stock, during the years ended December 31, 2015 and 2014. There were no other real estate securities sold during the year ended December 31, 2016:

(In thousands)	Aggregate Cost Basis		Sale Price		Realized Gain, Net
Year Ended December 31, 2015	$	18,528	$	19,266	$	738
Year Ended December 31, 2014	$	47,020	$	47,317	$	297

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Mortgage Notes Payable (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The Company's mortgage notes payable as of December 31, 2016 and 2015 consisted of the following:

		Outstanding Loan Amount as of						Effective Interest Rate as of
		December 31,						December 31,
Portfolio	Encumbered Properties	2016			2015			2016			2015			Interest Rate	Maturity	Anticipated Repayment
		(In thousands)			(In thousands)
SAAB Sensis I	1	$	7,841		$	8,190		5.93	%		6.01	%		Fixed	Apr. 2025	Apr. 2025
SunTrust Bank II	30	25,000			25,000			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
C&S Wholesale Grocer I	4	82,313			82,313			5.48	%		5.56	%		Fixed	Apr. 2037	Apr. 2017
SunTrust Bank III	112	88,567			99,677			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
SunTrust Bank IV	27	21,243			25,000			5.50	%		5.50	%		Fixed	Jul. 2031	Jul. 2021
Sanofi US I	1	125,000			125,000			5.16	%		5.16	%		Fixed	Jul. 2026	Jan. 2021
Stop & Shop I	4	38,271			38,936			5.63	%		5.63	%		Fixed	Jun. 2041	Jun. 2021
Multi-Tenant Mortgage Loan	268	649,532			649,532			4.36	%		4.36	%		Fixed	Sep. 2020	Sep. 2020
Gross mortgage notes payable	447	1,037,767			1,053,648			4.75	%	(1)	4.77	%	(1)
Deferred financing costs, net of accumulated amortization		(15,492		)	(20,066		)
Mortgage notes payable, net of deferred financing costs		$	1,022,275		$	1,033,582

_____________________________________

(1) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated.

Schedule of Maturities of Long-term Debt

The following table summarizes the scheduled aggregate principal payments on mortgage notes payable based on stated maturity dates for the five years subsequent to December 31, 2016 and thereafter:

(In thousands)	Future Principal Payments
2017	$	1,080
2018	1,143
2019	1,211
2020	650,808
2021	910
Thereafter	382,615
	$	1,037,767

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value, Liabilities Measured on Recurring Basis

The following table presents information about the Company's assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2016 and 2015, aggregated by the level in the fair value hierarchy within which those instruments fall. There were no financial instruments measured at fair value on a recurring basis as of December 31, 2016 or 2015:

(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total
December 31, 2016
Impaired real estate investments held for sale	$	—	$	961	$	—	$	961
Impaired real estate investments held for use	—		6,525		45,032		51,557
Total	$	—	$	7,486	$	45,032	$	52,518
December 31, 2015
Commercial mortgage loans held for sale	$	—	$	56,884	$	—	$	56,884

Fair Value, by Balance Sheet Grouping

The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets as of December 31, 2016 and 2015 are reported in the following table:

		Carrying Amount at		Fair Value at		Carrying Amount at		Fair Value at
(In thousands)	Level	December 31, 2016		December 31, 2016		December 31, 2015		December 31, 2015
Commercial mortgage loan, held for investment	3	$	17,175	$	17,200	$	17,135	$	17,200
Gross mortgage notes payable and mortgage premiums, net	3	$	1,048,448	$	1,076,065	$	1,068,540	$	1,103,352

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Common Stock (Tables)

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Schedule of Treasury Stock by Class

The following table summarizes the repurchases of shares under the SRP cumulatively through December 31, 2016:

	Number of Shares	Weighted-Average Price per Share
Cumulative repurchases as of December 31, 2013	8,082	$	24.98
Year ended December 31, 2014	295,825	23.99
Year ended December 31, 2015	1,769,738	24.13
Year ended December 31, 2016	7,854	24.17
Cumulative repurchases as of December 31, 2016	2,081,499	$	24.12

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Master Leases

The Company entered into ground lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter:

(In thousands)	Future Minimum Base Rent Payments
2017	$	921
2018	903
2019	902
2020	674
2021	345
Thereafter	4,630
	$	8,375

Contractual Obligation, Fiscal Year Maturity Schedule

The following table reflects the expiration of these commitments over the next five years and thereafter:

(In thousands)	Funding Expiration
2017	$	2,450	(1)
2018	—
2019	—
2020	—
2021	—
Thereafter	—
	$	2,450

_____________________________________

(1) This commitment expired in February 2017 with no funding provided by the Company.

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Related Party Transactions and Arrangements (Tables)

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services

The following table details amounts incurred and payable to related parties in connection with the operations-related services described above as of and for the periods presented:

	Year Ended December 31,						Payable as of December 31,
(In thousands)	2016		2015		2014		2016		2015
One-time fees and reimbursements:
Acquisition fees and related cost reimbursements (1)	$	—	$	1,330	$	10,578	$	—	$	—
Financing coordination fees	—		5,850		5,678		—		—
Ongoing fees:
Asset management fees	18,000		13,009		—		—		—
Professional fees and other reimbursements (2)	3,104		4,020		2,364		763		541
Distributions on Class B Units (2)	1,736		1,573		602		147		—
Total related party operation fees and reimbursements	$	22,840	$	25,782	$	19,222	$	910	$	541

_________________________________

(1) Acquisition fees and expenses from related parties of $0.9 million were recognized in acquisition and transaction related expense on the consolidated statement of operations and comprehensive loss for the year ended December 31, 2015. In addition, over the same period, the Company capitalized $0.4 million of acquisition expenses to the Company's consolidated balance sheet, which are amortized over the life of each investment using the effective interest method. No acquisition expenses were capitalized during the years ended December 31, 2016 and 2014.

(2) These costs are included in general and administrative expense on the consolidated statements of operations and comprehensive loss.

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Activity

The following table reflects restricted share award activity for the years ended December 31, 2016, 2015 and 2014:

	Number of Shares of Common Stock		Weighted-Average Issue Price
Unvested, December 31, 2013	4,000		$	22.50
Granted	3,999		22.50
Vested	(800	)	22.50
Forfeited	(2,400	)	22.50
Unvested, December 31, 2014	4,799		22.50
Granted	6,240		24.04
Vested	(1,067	)	22.50
Forfeited	(2,517	)	23.83
Unvested, December 31, 2015	7,455		23.34
Granted	3,723		24.17
Vested	(1,811	)	23.19
Unvested, December 31, 2016	9,367		$	23.70

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Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the basic and diluted net loss per share computations for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
	2016			2015			2014
Basic and diluted net loss (in thousands)	$	(54,255	)	$	(21,117	)	$	(1,997	)
Basic and diluted weighted-average shares outstanding	65,450,432			66,028,245			64,333,260
Basic and diluted net loss per share	$	(0.83	)	$	(0.32	)	$	(0.03	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented:

	December 31,
	2016	2015	2014
Unvested restricted stock (1)	7,985	6,349	5,221
OP Units	90	90	90
Class B Units (2)	1,052,420	953,086	364,786
Total weighted-average antidilutive common stock equivalents	1,060,495	959,525	370,097

_____________________

(1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 9,367, 7,455 and 4,799 shares of unvested restricted stock outstanding as of December 31, 2016, 2015 and 2014, respectively.

(2) Weighted-average number of issued and unvested Class B Units outstanding for the periods presented. As of December 31, 2016, 2015 and 2014, there were 1,052,420, 1,052,420 and 703,796 Class B Units outstanding, respectively.

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Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2016, 2015 and 2014:

	Quarters Ended
(In thousands, except share and per share amounts)	March 31, 2016			June 30, 2016			September 30, 2016			December 31, 2016
Total revenues	$	43,786		$	44,277		$	44,758		$	44,847
Basic and diluted net loss	$	(5,854	)	$	(4,077	)	$	(8,729	)	$	(35,595	)
Basic and diluted weighted-average shares outstanding	64,955,420			65,301,764			65,741,735			65,795,812
Basic and diluted net loss per share	$	(0.09	)	$	(0.06	)	$	(0.13	)	$	(0.54	)

	Quarters Ended
(In thousands, except share and per share amounts)	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Total revenues	$	42,866		$	43,269		$	44,051		$	44,312
Basic net income (loss)	$	4,901		$	(1,624	)	$	(11,428	)	$	(12,966	)
Adjustments to net income (loss) for common share equivalents	(116		)	—			—			—
Diluted net income (loss)	$	4,785		$	(1,624	)	$	(11,428	)	$	(12,966	)
Basic weighted-average shares outstanding	65,672,016			66,045,785			66,450,057			65,937,566
Basic net income (loss) per share	$	0.07		$	(0.02	)	$	(0.17	)	$	(0.20	)
Diluted weighted-average shares outstanding	65,677,204			66,045,785			66,450,057			65,937,566
Diluted net income (loss) per share	$	0.07		$	(0.02	)	$	(0.17	)	$	(0.20	)

	Quarters Ended (1)
(In thousands, except share and per share amounts)	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Total revenues	$	30,124		$	42,076		$	43,222		$	42,958
Basic net (loss) income	$	(9,569	)	$	1,127		$	1,610		$	4,835
Adjustments to net (loss) income for common share equivalents	—			(156		)	(98		)	(92		)
Diluted net income (loss)	$	(9,569	)	$	971		$	1,512		$	4,743
Basic weighted-average shares outstanding	62,693,554			64,018,318			64,654,279			65,243,247
Basic net (loss) income per share	$	(0.15	)	$	0.02		$	0.02		$	0.07
Diluted weighted-average shares outstanding	62,693,554			64,023,762			64,661,074			65,248,137
Diluted net (loss) income per share	$	(0.15	)	$	0.02		$	0.02		$	0.07

______________________________

(1) The aforementioned unaudited quarterly financial information has been revised to reflect certain adjustments and final purchase price allocations to previously reported quarterly information associated with acquisitions completed during 2014. As a result, amortization and accretion of above-market lease assets and below-market lease liabilities decreased total revenue by $0.1 million, $0.4 million and $0.4 million for the three months ended March 31, June 30 and September 30, 2014, respectively. Additionally, the Company decreased depreciation and amortization expense by $1.2 million, $3.4 million and $3.7 million, for the three months ended March 31, June 30 and September 30, 2014, respectively.

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Organization (Details) $ / shares in Units, $ in Thousands, ft² in Millions	12 Months Ended			47 Months Ended
	Dec. 31, 2016 USD ($) ft² property $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($)	Dec. 31, 2016 USD ($) ft² property $ / shares shares	Sep. 06, 2016 $ / shares	Apr. 04, 2013 $ / shares shares
Class of Stock [Line Items]
Number of real estate properties | property	455			455
Purchase price | $	$ 2,200,000			$ 2,200,000
Area of real estate property | ft²	13.3			13.3
Percentage of property leased	100.00%			100.00%
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01		$ 0.01	$ 0.01	$ 0.01
Common stock, outstanding | shares	65,805,184	64,961,256		65,805,184
Proceeds from issuances of common stock | $	$ 0	$ 0	$ 127	$ 1,600,000
Common Stock [Member]
Class of Stock [Line Items]
Shares available for issuance in IPO (in shares) | shares						68,000,000.0
Share Price (in dollars per share) | $ / shares						$ 25.00

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Completed Mergers and Significant Disposals (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions			2 Months Ended
	Jan. 31, 2017 USD ($) property	Sep. 06, 2016 USD ($) $ / shares	Mar. 15, 2017 USD ($) shares	Dec. 31, 2016 $ / shares	Dec. 31, 2015 $ / shares	Apr. 04, 2013 $ / shares
Business Acquisition [Line Items]
Common stock, par value | $ / shares		$ 0.01		$ 0.01	$ 0.01	$ 0.01
American Realty Capital - Retail Centers of America, Inc. [Member]
Business Acquisition [Line Items]
Share conversion ratio		0.385
Share price (in usd per share) | $ / shares		$ 0.95
American Realty Capital - Retail Centers of America, Inc. [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Stock issued in acquisition (in shares) | shares			38.2
Cash consideration			$ 94.3
Payments for redemption of OP units			$ 2.8
OP [Member] | Loan Facility [Member] | American Realty Capital - Retail Centers of America, Inc. [Member]
Business Acquisition [Line Items]
Line of credit		$ 360.0
Limited partner interests in acquiree OP converted to acquirer OP units [Member] | American Realty Capital - Retail Centers of America, Inc. [Member]
Business Acquisition [Line Items]
Share conversion ratio		0.424
OP and GP units of acquiree converted to acquirer OP units [Member] | American Realty Capital - Retail Centers of America, Inc. [Member]
Business Acquisition [Line Items]
Share conversion ratio		0.385
RCA Common Stock [Member] | American Realty Capital - Retail Centers of America, Inc. [Member]
Business Acquisition [Line Items]
Common stock, par value | $ / shares		$ 0.01
Merrill Lynch Properties [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Properties sold | property	3
Purchase price	$ 148.0

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Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) segment	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Class of Stock [Line Items]
Number of reportable segments | segment	1
Buildings, useful life	40 years
Fixtures, useful life	5 years
Land improvements, useful life	15 years
Cash and cash equivalents	$ 131,215	$ 130,500	$ 74,760	$ 101,176
Cash in excess of FDIC limit	$ 130,700	129,700
Maximum [Member]
Class of Stock [Line Items]
Liability for offering and related costs from IPO	2.00%
Liability for gross IPO, costs, percentage of gross proceeds	12.00%
Deferred Costs [Member] | Accounting Standards Update 2015-03 [Member]
Class of Stock [Line Items]
Deferred financing costs, net of accumulated amortization	$ 15,500	20,100
Mortgage Notes Payable [Member] | Accounting Standards Update 2015-03 [Member]
Class of Stock [Line Items]
Deferred financing costs, net of accumulated amortization	$ (15,500)	$ (20,100)

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Summary of Significant Accounting Policies (Summary of Distributions) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Dividends Payable [Line Items]
Dividends (in usd per share)	$ 1.65	$ 1.65	$ 1.65
Dividends, percent	100.00%	100.00%	100.00%
Return of Capital [Member]
Dividends Payable [Line Items]
Dividends (in usd per share)	$ 1.254	$ 1.48	$ 0.91
Dividends, percent	76.00%	89.90%	55.50%
Ordinary Dividend Income [Member]
Dividends Payable [Line Items]
Dividends (in usd per share)	$ 0.396	$ 0.17	$ 0.73
Dividends, percent	24.00%	10.10%	44.20%
Capital Gain [Member]
Dividends Payable [Line Items]
Dividends (in usd per share)	$ 0	$ 0	$ 0.01
Dividends, percent	0.00%	0.00%	0.30%

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Real Estate Investments (Narrative) (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) property	Dec. 31, 2015 USD ($) property	Dec. 31, 2014 USD ($) property
Property, Plant and Equipment [Line Items]
Number of real estate properties | property	455
Number of properties sold | property		0	0
Impairment charges	$ 27,299,000	$ 0	$ 0
Gain on sale of real estate investments	$ 454,000	0	0
Impairment of real estate properties		$ 0	$ 0
SunTrust Banks [Member]
Property, Plant and Equipment [Line Items]
Number of real estate properties | property	57
Number of properties sold | property	12
Sales of real estate	$ 30,200,000
Impairment charges	1,300,000
Gain on sale of real estate investments	$ 500,000
Number of real estate properties impaired | property	43
Impairment of real estate properties	$ 24,700,000
Number of real estate properties not impaired | property	14
Merrill Lynch Properties [Member]
Property, Plant and Equipment [Line Items]
Impairment charges	$ 0
Sylva, NC and Landover, MD [Member] | SunTrust Banks [Member]
Property, Plant and Equipment [Line Items]
Sales of real estate	1,000,000
Impairment charges	$ 1,400,000

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Real Estate Investments (Schedule of Assets Acquired and Liabilities Assumed) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) property	Dec. 31, 2014 USD ($) property
Property, Plant and Equipment [Line Items]
Land	$ 1,729	$ 210,379
Buildings, fixtures and improvements	29,664	672,121
Total tangible assets	31,393	882,500
Acquired intangibles	2,851	168,863
Above-market ground lease liability	(85)	0
Below-market lease liabilities	(774)	(19,692)
Mortgage notes payable assumed	0	(462,238)
Premium on mortgage assumed	0	(27,862)
Deposits paid in prior periods	0	(33,035)
Cash paid for acquired real estate investments, at cost	$ 34,244	$ 528,228
Number of properties purchased | property	4	224
In-place leases [Member]
Property, Plant and Equipment [Line Items]
Acquired intangibles	$ 3,162	$ 175,152
Weighted-average amortization period	9 years 5 months 18 days
Above-market lease assets [Member]
Property, Plant and Equipment [Line Items]
Acquired intangibles	$ 548	$ 13,403
Weighted-average amortization period	9 years 7 months
Above-market ground lease liability [Member]
Property, Plant and Equipment [Line Items]
Weighted-average amortization period	48 years 7 months
Below market leases liabilities [Member]
Property, Plant and Equipment [Line Items]
Weighted-average amortization period	9 years 6 months 6 days

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Real Estate Investments (Acquired Leases) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 300,129	$ 319,028
Finite-lived intangible assets, accumulated amortization	103,653	73,833
Intangible assets, net	196,476	245,195
Finite-lived intangible liabilities, gross	18,528	20,623
Finite-lived intangible liabilities, accumulated amortization	4,613	2,490
Intangible liabilities, net	13,915	18,133
Below market lease, gross	18,443	20,623
Below market lease, accumulated amortization	4,612	2,490
Below market lease, net	13,831	18,133
In-place leases [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	286,548	305,245
Finite-lived intangible assets, accumulated amortization	95,547	68,278
Intangible assets, net	191,001	236,967
Above-market leases [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	13,581	13,783
Finite-lived intangible assets, accumulated amortization	8,106	5,555
Intangible assets, net	5,475	8,228
Above-market ground lease liability [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible liabilities, gross	85	0
Finite-lived intangible liabilities, accumulated amortization	1	0
Intangible liabilities, net	$ 84	$ 0

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Real Estate Investments (Summary of Amortization Expense and Adjustments) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization of leases	$ 34,247	$ 34,600	$ 30,808
Depreciation and Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of leases	34,247	34,600	30,808
Depreciation and Amortization [Member] | In-place leases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of leases	34,247	34,600	30,808
Rental Income [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization (accretion) of leases	(478)	(1,666)	(1,421)
Rental Income [Member] | Above-market leases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of leases	2,943	3,006	2,549
Rental Income [Member] | Below market leases liabilities [Member]
Finite-Lived Intangible Assets [Line Items]
Accretion of leases	2,465	1,340	1,128
Property Operating Expense [Member]
Finite-Lived Intangible Assets [Line Items]
Accretion of leases	1	0	0
Property Operating Expense [Member] | Above-market ground lease liability [Member]
Finite-Lived Intangible Assets [Line Items]
Accretion of leases	$ 1	$ 0	$ 0

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Real Estate Investments (Lease Amortization) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Depreciation and Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
2017	$ 31,788
2018	22,581
2019	20,964
2020	19,718
2021	22,598
Rental Income [Member]
Finite-Lived Intangible Assets [Line Items]
2017	483
Below market leases, 2018	437
Below market leases, 2019	437
Below market leases, 2020	437
Below market leases, 2021	437
Property Operating Expense [Member]
Finite-Lived Intangible Assets [Line Items]
2017	(2)
2018	(2)
2019	(2)
2020	(2)
2021	(2)
In-place leases [Member] | Depreciation and Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
2017	31,788
2018	22,581
2019	20,964
2020	19,718
2021	22,598
Above-market leases [Member] | Rental Income [Member]
Finite-Lived Intangible Assets [Line Items]
2017	(2,815)
2018	(526)
2019	(526)
2020	(526)
2021	(526)
Below market leases liabilities [Member] | Rental Income [Member]
Finite-Lived Intangible Assets [Line Items]
Below market leases, 2017	2,332
Below market leases, 2018	963
Below market leases, 2019	963
Below market leases, 2020	963
Below market leases, 2021	963
Above-market ground lease liability [Member] | Property Operating Expense [Member]
Finite-Lived Intangible Assets [Line Items]
2017	(2)
2018	(2)
2019	(2)
2020	(2)
2021	$ (2)

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Real Estate Investments (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Real Estate [Abstract]
Pro forma revenues	$ 178,057	$ 177,352
Pro forma net loss	$ (54,129)	$ (19,902)
Basic and diluted pro forma net loss per share (in usd per share)	$ (0.83)	$ (0.30)
Revenue since acquisition	$ 2,500
Net income since acquisition	$ 1,100

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Real Estate Investments (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Real Estate Investments, Net [Abstract]
2017	$ 159,895
2018	153,841
2019	155,931
2020	150,760
2021	149,425
Thereafter	763,420
Total	$ 1,533,272

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Real Estate Investments (Annualized Rental Income by Major Tenants) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
SunTrust Banks [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	17.70%	17.90%
Sanofi US [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	11.40%	11.60%
C&S Wholesale Grocer [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	10.20%	10.40%

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Real Estate Investments (Annualized Rental Income by Geographic Location) (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
New Jersey [Member]
Concentration Risk, Percentage	20.00%	20.30%
Georgia [Member]
Concentration Risk, Percentage	11.00%	11.20%

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Real Estate Investments (Summary of Assets Held-for-Sale) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment charges related to properties reclassified as held for sale	$ (27,299)	$ 0	$ 0
Assets held for sale	137,602	$ 56,884
Assets Held-for-sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Land	7,225
Buildings, fixtures and improvements	142,798
Acquired intangible lease assets	18,145
Total real estate assets held for sale, at cost	168,168
Less accumulated depreciation and amortization	(29,213)
Total real estate investments held for sale, net	138,955
Impairment charges related to properties reclassified as held for sale	(1,353)
Assets held for sale	$ 137,602

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Commercial Mortgage Loans (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Loss on commercial mortgage loans held for sale	$ 0	$ (5,476)	$ 0

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Commercial Mortgage Loans (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Sales of commercial mortgage loans	$ 0	$ (5,476)	$ 0
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par Value	$ 17,200	$ 79,850
Percentage	100.00%	100.00%
Commercial Portfolio Segment [Member] | Student Housing - Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par Value	$ 17,200	$ 17,200
Percentage	100.00%	21.60%
Commercial Portfolio Segment [Member] | Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par Value	$ 0	$ 18,150
Percentage	0.00%	22.70%
Commercial Portfolio Segment [Member] | Hospitality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par Value	$ 0	$ 44,500
Percentage	0.00%	55.70%
Commercial mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of commercial mortgage-backed securities	$ 56,884	$ 0	$ 0

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Commercial Mortgage Loans (Rollforward of Loan Portfolio) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance	$ 17,135	$ 0
Originations	0	79,410
Reclassifications to assets held for sale	0	(56,884)
Loss on assets held for sale	0	(5,476)
Discount accretion and premium amortization	40	85
Ending balance	$ 17,175	$ 17,135

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Commercial Mortgage-Backed Securities (Summary of Changes in Mortgage-Backed Securities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Sale Price	$ 0	$ 19,266	$ 47,316
Realized Loss	0	$ (738)	$ (297)
Commercial mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate Cost Basis	30,209
Sale Price	28,624
Realized Loss	$ 1,585

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Other Real Estate Securities (Narrative) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Other real estate securities	$ 0	$ 0

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Other Real Estate Securities (Summary of Realized Gains) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Sale Price	$ 0	$ 19,266	$ 47,316
Realized Gain, Net	$ 0	738	297
Other real estate securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Aggregate Cost Basis		18,528	47,020
Sale Price		19,266	47,317
Realized Gain, Net		$ 738	$ 297

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Mortgage Notes Payable (Summary of Mortgage Notes Payable) (Details) $ in Thousands	Dec. 31, 2016 USD ($) property	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Outstanding Loan Amount	$ 1,037,767
Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	447
Outstanding Loan Amount	$ 1,037,767	$ 1,053,648
Effective Interest Rate	4.75%	4.77%
Deferred financing costs, net of accumulated amortization	$ (15,492)	$ (20,066)
Mortgage notes payable, net of deferred financing costs	$ 1,022,275	1,033,582
SAAB Sensis I [Member] | Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	1
Outstanding Loan Amount	$ 7,841	$ 8,190
Effective Interest Rate	5.93%	6.01%
SunTrust Bank II [Member] | Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	30
Outstanding Loan Amount	$ 25,000	$ 25,000
Effective Interest Rate	5.50%	5.50%
C&S Wholesale Grocer I [Member] | Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	4
Outstanding Loan Amount	$ 82,313	$ 82,313
Effective Interest Rate	5.48%	5.56%
SunTrust Bank III [Member] | Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	112
Outstanding Loan Amount	$ 88,567	$ 99,677
Effective Interest Rate	5.50%	5.50%
SunTrust Bank IV [Member] | Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	27
Outstanding Loan Amount	$ 21,243	$ 25,000
Effective Interest Rate	5.50%	5.50%
Stop & Shop I [Member] | Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	4
Outstanding Loan Amount	$ 38,271	$ 38,936
Effective Interest Rate	5.63%	5.63%
Sanofi US I - New Loan [Member] | Sanofi US I [Member] | Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	1
Outstanding Loan Amount	$ 125,000	$ 125,000
Effective Interest Rate	5.16%	5.16%
Multi-Tenant Mortgage Loan [Member] | Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
Encumbered Properties | property	268
Outstanding Loan Amount	$ 649,532	$ 649,532
Effective Interest Rate	4.36%	4.36%

XML

Mortgage Notes Payable (Narrative) (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) property	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Aug. 30, 2015 USD ($)
Debt Instrument [Line Items]
Restricted cash	$ 7,890,000	$ 7,887,000
Restricted cash released	(3,000)	$ (7,887,000)	$ 0
Mortgages [Member]
Debt Instrument [Line Items]
Collateral pledged	$ 1,900,000,000
Encumbered Properties | property	447
Mortgages [Member] | Multi-Tenant Mortgage Loan [Member]
Debt Instrument [Line Items]
Face amount				$ 655,000,000
Stated interest rate				4.30%
Encumbered Properties | property	268
Restricted cash	$ 7,900,000			$ 42,500,000
Restricted cash released	$ 34,600,000

XML

Mortgage Notes Payable (Future Minimum Payments) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Mortgage notes payable, net of deferred financing costs	$ 1,037,767
Mortgage notes payable and premiums, net [Member]
Debt Instrument [Line Items]
2017	1,080
2018	1,143
2019	1,211
2020	650,808
2021	910
Thereafter	382,615
Mortgage notes payable, net of deferred financing costs	$ 1,037,767	$ 1,053,648

XML

Fair Value Measurements (Schedule of Fair Value, Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	$ 52,518
Quoted Prices in Active Markets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	0
Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	7,486
Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	45,032
Commercial mortgage loans held-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value		$ 56,884
Commercial mortgage loans held-for-sale [Member] | Quoted Prices in Active Markets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value		0
Commercial mortgage loans held-for-sale [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value		56,884
Commercial mortgage loans held-for-sale [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value		$ 0
Held-for-sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	961
Held-for-sale [Member] | Quoted Prices in Active Markets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	0
Held-for-sale [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	961
Held-for-sale [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	0
Held-for-use [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	51,557
Held-for-use [Member] | Quoted Prices in Active Markets Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	0
Held-for-use [Member] | Significant Other Observable Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	6,525
Held-for-use [Member] | Significant Unobservable Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired real estate investments	$ 45,032

XML

Fair Value Measurements (Fair Value of Financial Instruments) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loan, held for investment	$ 17,175	$ 17,135
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loan, held for investment	17,200	17,200
Mortgage notes payable and premiums, net [Member] | Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	1,048,448	1,068,540
Mortgage notes payable and premiums, net [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	$ 1,076,065	$ 1,103,352

XML

Fair Value Measurements (Narrative) (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) property	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of real estate properties	455
Impairment of real estate properties | $		$ 0	$ 0
SunTrust Banks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of real estate properties	57
Number of real estate properties impaired	43
Impairment of real estate properties | $	$ 24,700,000

XML

Common Stock (Narrative) (Details) - $ / shares		1 Months Ended		11 Months Ended	12 Months Ended			47 Months Ended
	Apr. 09, 2013	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2013	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Apr. 01, 2016	Nov. 14, 2014
Class of Stock [Line Items]
Common stock, outstanding (in shares)					65,805,184	64,961,256		65,805,184
Dividends declared per day (in dollars per share)	$ 0.00452054795		$ 0.00450819672
Dividends declared (in usd per share)	$ 1.65		$ 1.65
Maximum percent of weighted average shares outstanding eligible for repurchase, for semi-annual period					2.50%			2.50%
Maximum percent of weighted average shares outstanding eligible for repurchase, for fiscal year					5.00%			5.00%
Number of shares in unfulfilled requests (in shares)					6,800,000			6,800,000
Common stock repurchases (in shares)				8,082	7,854	1,769,738	295,825	2,081,499
Weighted-Average Price per Share (in dollars per share)				$ 24.98	$ 24.17	$ 24.13	$ 23.99	$ 24.12
Shares available for issuance under a distribution reinvestment plan (in shares)									7,700,000
Common stock issued through distribution reinvestment plan (in shares)					848,067
Common Stock [Member]
Class of Stock [Line Items]
Share price for Drip (In dollars per share)										$ 23.75
Drip Share price as a percent of IPO price										95.00%
One Year [Member]
Class of Stock [Line Items]
Share repurchase program, percentage of value of capital paid					92.50%			92.50%
Two Years [Member]
Class of Stock [Line Items]
Share repurchase program, percentage of value of capital paid					95.00%			95.00%
Three Years [Member]
Class of Stock [Line Items]
Share repurchase program, percentage of value of capital paid					97.50%			97.50%
Four Years [Member]
Class of Stock [Line Items]
Share repurchase program, percentage of value of capital paid					100.00%			100.00%
Subsequent Event [Member]
Class of Stock [Line Items]
Common stock repurchases (in shares)		800,000.0
Weighted-Average Price per Share (in dollars per share)		$ 23.84

XML

Common Stock (Stock Redemption) (Details) - $ / shares	11 Months Ended	12 Months Ended			47 Months Ended
	Dec. 31, 2013	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016
Equity [Abstract]
Number of Shares (in shares)	8,082	7,854	1,769,738	295,825	2,081,499
Weighted-Average Price per Share (in dollars per share)	$ 24.98	$ 24.17	$ 24.13	$ 23.99	$ 24.12

XML

Commitments and Contingencies (Future Minimum Ground Lease Payments) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 921
2018	903
2019	902
2020	674
2021	345
Thereafter	4,630
Total	$ 8,375

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Commitments and Contingencies (Unfunded Commitments Under Commercial Mortgage Loans) (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 2,450
2018	0
2019	0
2020	0
2021	0
Thereafter	0
Total	$ 2,450

XML

Related Party Transactions and Arrangements (Narrative) (Details) - American Realty Capital Trust V Special Limited Partner, LLC [Member] - Special Limited Partner [Member] - shares	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Common stock held by related party (in shares)	8,888	8,888
OP units outstanding (in shares)	90	90

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Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company) (Details) - USD ($)					3 Months Ended	12 Months Ended
	Sep. 06, 2016	Sep. 05, 2016	Jul. 20, 2015	Apr. 29, 2015	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Apr. 15, 2015
Related Party Transaction [Line Items]
Asset management fees to related party						$ 18,000,000	$ 13,009,000	$ 0
American Realty Capital Advisors V, LLC [Member] | Contract Purchase Price [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Antidilutive shares (in shares)							1,052,420		703,796
American Realty Capital Advisors V, LLC [Member] | Contract Purchase Price [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Acquisition fees earned by related party percentage						1.00%
Financing advance fees earned by related party percentage						1.00%
Expected third party acquisition costs reimbursable						0.50%
Acquisition fees and acquisition related expenses						4.50%
Quarterly asset management fee earned						0.1875%
Antidilutive shares (in shares)						1,052,420
American Realty Capital Advisors V, LLC [Member] | Advance on Loan or Other Investment [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Financing advance fees earned by related party percentage						4.50%
Expected third party acquisition costs reimbursable						0.50%
American Realty Capital Advisors V, LLC [Member] | Contract Purchase Price, All Assets Acquired [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Acquisition fees and acquisition related expenses						1.50%
American Realty Capital Advisors V, LLC [Member] | Amount Available or Outstanding Under Financing Arrangement [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Financing coordination fees earned						0.75%
Advisory Agreement [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Related party transaction term				20 years
Annual Asset Management Fee as Percentage of Assets [Member] | American Realty Capital Advisors V, LLC [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Annual asset management fee percentage										0.75%
Base Management Fee [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Quarterly payments			$ 1,500,000
Quarterly payments, percent of net proceeds from equity financing	1.25%	0.375%	0.375%
Expenses incurred		$ 18,000,000
Annual Subordinated Performance Fee [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Percent of earnings in excess of benchmark one			15.00%
Earnings per share used in calculation, benchmark one			$ 0.375
Percent of earnings in excess of benchmark two			10.00%
Earnings per share used in calculation, benchmark two			$ 0.5
Administrative Services [Member] | American Realty Capital Advisors V, LLC [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Asset management fees to related party					$ 0	$ 2,900,000	$ 1,200,000	$ 0
Absorbed General and Administrative Expenses [Member] | American Realty Capital Advisors V, LLC [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Asset management fees to related party						0	$ 0
Lease Commissions [Member] | American Realty Capital Advisors V, LLC [Member]
Related Party Transaction [Line Items]
Expenses incurred						$ 1,300,000
Annual Targeted Investor Return [Member] | American Realty Capital Advisors V, LLC [Member] | Pre-tax Non-compounded Return on Capital Contribution [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Cumulative capital investment return						6.00%
Total commissions and fees from the Former Dealer Manager [Member]
Related Party Transaction [Line Items]
Share Price (in dollars per share)						$ 22.50

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Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company, Incurred and Payable) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	$ 18,000	$ 13,009	$ 0
Deferred costs, net	3,767	0
Acquisition fees and related cost reimbursements [Member] | Advisor [Member]
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	900
Deferred costs, net	400
Total related party operation fees and reimbursements [Member]
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	22,840	25,782	19,222
Payable	910	541
One-time fees and reimbursements [Member] | Acquisition fees and related cost reimbursements [Member]
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	0	1,330	10,578
Payable	0	0
One-time fees and reimbursements [Member] | Financing coordination fees [Member]
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	0	5,850	5,678
Payable	0	0
Ongoing fees [Member] | Asset management fees [Member]
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	18,000	13,009	0
Payable	0	0
Ongoing fees [Member] | Professional fees and other reimbursements [Member]
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	3,104	4,020	2,364
Payable	763	541
Ongoing fees [Member] | Distributions on Class B Units [Member]
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	1,736	1,573	$ 602
Payable	$ 147	$ 0

XML

Related Party Transactions and Arrangements (Fees Paid in Connection with the Liquidation or Listing of the Company's Real Estate Assets) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	$ 18,000,000	$ 13,009,000	$ 0
Advisor [Member] | Real Estate Commissions [Member]
Related Party Transaction [Line Items]
Total commissions and fees from the Former Dealer Manager	$ 600,000	$ 0
Contract Sales Price [Member] | American Realty Capital Advisors V, LLC [Member] | Advisor [Member] | Brokerage Commission Fees [Member]
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	2.00%
Contract Sales Price [Member] | American Realty Capital Advisors V, LLC [Member] | Advisor [Member] | Real Estate Commissions [Member]
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	6.00%
Cash Distribution [Member] | Special Limited Partner [Member]
Related Party Transaction [Line Items]
Obligation to distribute, equal to market value of stock or sum of proceeds from offering	15.00%
Minimum cumulative, non-compounded pre-tax annual return	6.00%

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Related Party Transactions and Arrangements (Related Party Agreements Executed in Connection with the Mergers) (Details) - USD ($)				2 Months Ended	12 Months Ended
	Sep. 06, 2016	Sep. 05, 2016	Jul. 20, 2015	Mar. 15, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Ineligible termination period	60 days
Advisor [Member]
Related Party Transaction [Line Items]
Term of agreement					20 years
Variable management fee, percent of quarterly earnings, benchmark one					15.00%
Basis for variable management fee, benchmark one					$ 0.375
Variable management fee, percent of quarterly earnings, benchmark two					10.00%
Basis for variable management fee, benchmark two					$ 0.50
Percentage of independent directors approval needed to terminate agreement	67.00%
Advisor [Member] | Base Management Fee [Member]
Related Party Transaction [Line Items]
Expenses incurred		$ 18,000,000
Quarterly payments, percent of net proceeds from equity financing	1.25%	0.375%	0.375%
Advisor [Member] | Base Management Fee - First Year following Effective Time [Member]
Related Party Transaction [Line Items]
Expenses incurred	$ 21,000,000
Transaction multiplier	0.0031
Advisor [Member] | Base Management Fee - Second Year following Effective Time [Member]
Related Party Transaction [Line Items]
Expenses incurred	$ 22,500,000
Transaction multiplier	0.0047
Advisor [Member] | Base Management Fee - Thereafter [Member]
Related Party Transaction [Line Items]
Expenses incurred	$ 24,000,000
Transaction multiplier	0.0062
Advisor [Member] | Termination Fees for Agreement [Member]
Related Party Transaction [Line Items]
Expenses incurred		$ 15,000,000
Advisor [Member] | Base Subject Fees Spread [Member]
Related Party Transaction [Line Items]
Transaction multiplier	4
Advisor [Member] | Subject Fees [Member]
Related Party Transaction [Line Items]
Transaction multiplier	4.5
Advisor [Member] | Subject Fees - Applicable if Internalization Occurs On or After January 1, 2029 [Member]
Related Party Transaction [Line Items]
Transaction multiplier	3.5
Advisor [Member] | Basis Spread - Purchase Price [Member]
Related Party Transaction [Line Items]
Related party fee, quarterly payments, percent of net proceeds from equity financing	1.00%
Advisor [Member] | Basis Spread - Equity Raised [Member]
Related Party Transaction [Line Items]
Related party fee, quarterly payments, percent of net proceeds from equity financing	1.00%
Property Manager [Member] | Property Management Fee [Member]
Related Party Transaction [Line Items]
Percentage of gross rental receipts	4.00%
Percentage of reimbursable administrative charges	15.00%
Property Manager [Member] | Transition Fees [Member]
Related Party Transaction [Line Items]
Expenses incurred	$ 2,500
Construction fee percentage	6.00%
American Realty Capital - Retail Centers of America, Inc. [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Payments for redemption of OP units				$ 2,800,000

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Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Mar. 31, 2015	Apr. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 06, 2016	Apr. 04, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share)			$ 0.01	$ 0.01		$ 0.01	$ 0.01
Restricted Share Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted automatically upon election to board of directors (in shares)			1,333
Vesting period			5 years
Periodic vesting percentage			20.00%
Maximum authorized amount as a percentage of shares authorized	5.00%	10.00%	5.00%
Number of shares authorized (in shares)		3,400,000.0	3,400,000.0
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Beginning balance (in shares)			7,455	4,799	4,000
Granted (in shares)			3,723	6,240	3,999
Vested (in shares)			(1,811)	(1,067)	(800)
Forfeited (in shares)				(2,517)	(2,400)
Ending balance (in shares)			9,367	7,455	4,799
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning Balance (in dollars per share)			$ 23.34	$ 22.50	$ 22.50
Granted (in dollars per share)			24.17	24.04	22.50
Vested (in dollars per share)			23.19	22.50	22.50
Forfeited (in dollars per share)				23.83	22.50
Ending Balance (in dollars per share)			$ 23.70	$ 23.34	$ 22.50
Unrecognized compensation costs			$ 200
Weighted average period for recognition			3 years 2 months 14 days
Share based compensation expense			$ 100	$ 51	$ 21
Distribution Reinvestment Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share)		$ 0.01

XML

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic and diluted net loss (in usd)	$ (35,595)	$ (8,729)	$ (4,077)	$ (5,854)	$ (12,966)	$ (11,428)	$ (1,624)	$ 4,901	$ 4,835	$ 1,610	$ 1,127	$ (9,569)	$ (54,255)	$ (21,117)	$ (1,997)
Basic and diluted weighted-average shares outstanding	65,795,812	65,741,735	65,301,764	64,955,420									65,450,432	66,028,245	64,333,260
Basic and diluted net loss per share (in dollars per share)	$ (0.54)	$ (0.13)	$ (0.06)	$ (0.09)									$ (0.83)	$ (0.32)	$ (0.03)
Antidilutive shares													1,060,495	959,525	370,097
Advisor [Member] | Contract Purchase Price [Member] | American Realty Capital Advisors V, LLC [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares													1,052,420
American Realty Capital Advisors V, LLC [Member] | Advisor [Member] | Contract Purchase Price [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares														1,052,420		703,796
Unvested Restricted Stock [Member] | Restricted Share Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Unvested restricted stock outstanding	9,367				7,455				4,799				9,367	7,455	4,799	4,000
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares													7,985	6,349	5,221
OP Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares													90	90	90
Class B Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares													1,052,420	953,086	364,786

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Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Effect of Fourth Quarter Events [Line Items]
Total revenues	$ 44,847	$ 44,758	$ 44,277	$ 43,786	$ 44,312	$ 44,051	$ 43,269	$ 42,866	$ 42,958	$ 43,222	$ 42,076	$ 30,124	$ 177,668	$ 174,498	$ 158,380
Net loss	$ (35,595)	$ (8,729)	$ (4,077)	$ (5,854)	(12,966)	(11,428)	(1,624)	4,901	4,835	1,610	1,127	(9,569)	$ (54,255)	$ (21,117)	$ (1,997)
Basic and diluted weighted-average shares outstanding (in shares)	65,795,812	65,741,735	65,301,764	64,955,420									65,450,432	66,028,245	64,333,260
Adjustments to net income (loss) for common share equivalents					0	0	0	(116)	(92)	(98)	(156)	0
Diluted net income (loss)					$ (12,966)	$ (11,428)	$ (1,624)	$ 4,785	$ 4,743	$ 1,512	$ 971	$ (9,569)
Basic weighted-average shares outstanding (in shares)					65,937,566	66,450,057	66,045,785	65,672,016	65,243,247	64,654,279	64,018,318	62,693,554
Basic net income (loss) per share (in dollars per share)					$ (0.20)	$ (0.17)	$ (0.02)	$ 0.07	$ 0.07	$ 0.02	$ 0.02	$ (0.15)
Diluted weighted-average shares outstanding (in shares)					65,937,566	66,450,057	66,045,785	65,677,204	65,248,137	64,661,074	64,023,762	62,693,554
Diluted net income (loss) per share (in dollars per share)					$ (0.20)	$ (0.17)	$ (0.02)	$ 0.07	$ 0.07	$ 0.02	$ 0.02	$ (0.15)
Basic and diluted net loss per share (in dollars per share)	$ (0.54)	$ (0.13)	$ (0.06)	$ (0.09)									$ (0.83)	$ (0.32)	$ (0.03)
Scenario, Adjustment [Member]
Effect of Fourth Quarter Events [Line Items]
Total revenues										$ (400)	$ (400)	$ (100)
Depreciation and amortization										$ (3,700)	$ (3,400)	$ (1,200)

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Subsequent Events (Narrative) (Details)					12 Months Ended
	Feb. 17, 2017 USD ($)	Feb. 16, 2017 USD ($) property	Jan. 31, 2017 USD ($)	Jan. 24, 2017 USD ($)	Dec. 31, 2016 USD ($) property
Subsequent Event [Line Items]
Number of real estate properties | property					455
SunTrust Banks [Member]
Subsequent Event [Line Items]
Number of real estate properties | property					57
Purchase price					$ 30,200,000
Sylva, NC [Member] | SunTrust Banks [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Purchase price				$ 200,000
Landover, MD [Member] | SunTrust Banks [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Purchase price	$ 800,000
Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Additional borrowing capacity		$ 575,000,000
Revolving Credit Facility [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Borrowing capacity		325,000,000
Swingline Subfacility [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Borrowing capacity		25,000,000
Letter of Credit [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Borrowing capacity		$ 20,000,000
Interest rate, option one | Federal Funds Effective Rate [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Basis spread on variable rate		0.50%
Interest rate, option one | London Interbank Offered Rate (LIBOR) [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Basis spread on variable rate		1.00%
Minimum [Member] | Interest rate, option two | Federal Funds Effective Rate [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Basis spread on variable rate		0.35%
Minimum [Member] | Interest rate, option two | London Interbank Offered Rate (LIBOR) [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Basis spread on variable rate		1.35%
Maximum [Member] | Interest rate, option two | Federal Funds Effective Rate [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Basis spread on variable rate		1.00%
Maximum [Member] | Interest rate, option two | London Interbank Offered Rate (LIBOR) [Member] | Amended Credit Facility [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Basis spread on variable rate		2.00%
American Realty Capital - Retail Centers of America, Inc. [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Number of real estate properties | property		35
Merrill Lynch Properties [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Purchase price			$ 148,000,000

XML

Real Estate and Accumulated Depreciation - Schedule III (Summary of Real Estate Properties) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 1,037,767
Land, Initial Cost	337,461
Buildings and Improvements, Initial Cost	1,411,458
Land, Costs Capitalized Subsequent to Acquisition	(8,805)
Costs Capitalized Subsequent to Acquisition	(15,856)
Gross Amount	1,724,258	$ 1,899,099	$ 1,899,099	$ 1,016,599
Accumulated Depreciation	183,437	141,594	$ 74,648	$ 12,077
Mortgage notes payable, net of deferred financing costs	1,022,275	1,033,582
Acquired intangible lease assets	300,129	$ 319,028
Tax basis	2,000,000
Accumulated amortization	$ 103,700
Buildings, useful life	40 years
Land improvements, useful life	15 years
Fixtures, useful life	5 years
Encumbrances Allocated [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 784,342
Mission, TX [Member] | Dollar General [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	142
Buildings and Improvements, Initial Cost	807
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	949
Accumulated Depreciation	166
Sullivan, MO [Member] | Dollar General [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	146
Buildings and Improvements, Initial Cost	825
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	971
Accumulated Depreciation	170
Pine Bluff, AR [Member] | Walgreens [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	159
Buildings and Improvements, Initial Cost	3,016
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,175
Accumulated Depreciation	633
Bogalusa, LA [Member] | Dollar General, II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	107
Buildings and Improvements, Initial Cost	965
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,072
Accumulated Depreciation	190
Donaldsonville, LA [Member] | Dollar General, II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	97
Buildings and Improvements, Initial Cost	871
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	968
Accumulated Depreciation	171
Cut Off, LA [Member] | Auto Zone [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	67
Buildings and Improvements, Initial Cost	1,282
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,349
Accumulated Depreciation	246
Athens, MI [Member] | Dollar General III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	48
Buildings and Improvements, Initial Cost	907
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	955
Accumulated Depreciation	174
Fowler, MI [Member] | Dollar General III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	49
Buildings and Improvements, Initial Cost	940
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	989
Accumulated Depreciation	181
Hudson, MI [Member] | Dollar General III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	102
Buildings and Improvements, Initial Cost	922
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,024
Accumulated Depreciation	177
Muskegon, MI [Member] | Dollar General III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	49
Buildings and Improvements, Initial Cost	939
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	988
Accumulated Depreciation	180
Reese, MI [Member] | Dollar General III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	150
Buildings and Improvements, Initial Cost	848
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	998
Accumulated Depreciation	163
Ft Myers, FL [Member] | BSFS I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,215
Buildings and Improvements, Initial Cost	1,822
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,037
Accumulated Depreciation	361
Bainbridge, GA [Member] | Dollar General IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	233
Buildings and Improvements, Initial Cost	700
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	933
Accumulated Depreciation	134
Vanleer, TN [Member] | Dollar General IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	78
Buildings and Improvements, Initial Cost	705
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	783
Accumulated Depreciation	135
Vernon, CT [Member] | Tractor Supply I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	358
Buildings and Improvements, Initial Cost	3,220
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,578
Accumulated Depreciation	525
Meruax, LA [Member] | Dollar General V [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	708
Buildings and Improvements, Initial Cost	1,315
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,023
Accumulated Depreciation	253
Tallahassee, FL [Member] | Matress Firm I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,015
Buildings and Improvements, Initial Cost	1,241
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,256
Accumulated Depreciation	238
Butler, KY [Member] | Family Dollar I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	126
Buildings and Improvements, Initial Cost	711
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	837
Accumulated Depreciation	137
Charlotte, NC [Member] | Food Lion I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,132
Buildings and Improvements, Initial Cost	4,697
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	7,829
Accumulated Depreciation	771
Charlotte, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	529
Buildings and Improvements, Initial Cost	650
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,179
Accumulated Depreciation	53
Charlotte, NC [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	651
Buildings and Improvements, Initial Cost	444
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,095
Accumulated Depreciation	46
Creedmoor, NC [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	306
Buildings and Improvements, Initial Cost	789
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,095
Accumulated Depreciation	67
Macon, GA [Member] | Lowes I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	0
Buildings and Improvements, Initial Cost	8,420
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	8,420
Accumulated Depreciation	1,323
Macon, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	214
Buildings and Improvements, Initial Cost	771
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	985
Accumulated Depreciation	71
Fayetteville, NC [Member] | Lowes I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	0
Buildings and Improvements, Initial Cost	6,422
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	6,422
Accumulated Depreciation	1,009
New Bern, NC [Member] | Lowes I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,812
Buildings and Improvements, Initial Cost	10,269
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	12,081
Accumulated Depreciation	1,614
Rocky MT, NC [Member] | Lowes I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,931
Buildings and Improvements, Initial Cost	10,940
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	12,871
Accumulated Depreciation	1,719
Maintowoc, WI [Member] | O'Reilly Auto [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	85
Buildings and Improvements, Initial Cost	761
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	846
Accumulated Depreciation	143
Aiken, SC [Member] | Lowes I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,764
Buildings and Improvements, Initial Cost	7,056
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	8,820
Accumulated Depreciation	1,107
Aiken, SC [Member] | Mattress Firm I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	426
Buildings and Improvements, Initial Cost	1,029
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,455
Accumulated Depreciation	103
Danville, AR [Member] | Family Dollar II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	170
Buildings and Improvements, Initial Cost	679
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	849
Accumulated Depreciation	127
Natalbany, LA [Member] | Dollar General VI [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	379
Buildings and Improvements, Initial Cost	883
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,262
Accumulated Depreciation	165
Gasburg, VA [Member] | Dollar General VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	52
Buildings and Improvements, Initial Cost	993
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,045
Accumulated Depreciation	186
Tucker, GA [Member] | Walgreens II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	0
Buildings and Improvements, Initial Cost	2,524
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,524
Accumulated Depreciation	505
Challis, ID [Member] | Family Dollar III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	44
Buildings and Improvements, Initial Cost	828
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	872
Accumulated Depreciation	155
Lake Jackson, TX [Member] | Chili's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	746
Buildings and Improvements, Initial Cost	1,741
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,487
Accumulated Depreciation	409
Victoria, TX [Member] | Chili's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	813
Buildings and Improvements, Initial Cost	1,897
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,710
Accumulated Depreciation	445
Anniston, AL [Member] | CVS I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	472
Buildings and Improvements, Initial Cost	1,887
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,359
Accumulated Depreciation	377
Westminster, CO [Member] | Joe's Crab Shack I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,136
Buildings and Improvements, Initial Cost	2,650
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,786
Accumulated Depreciation	622
Houston, TX [Member] | Joe's Crab Shack I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,169
Buildings and Improvements, Initial Cost	2,171
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,340
Accumulated Depreciation	510
Houston, TX [Member] | LA Fitness I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,540
Buildings and Improvements, Initial Cost	8,379
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	10,919
Accumulated Depreciation	1,359
Lake Wales, FL [Member] | Tire Kingdom I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	556
Buildings and Improvements, Initial Cost	1,296
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,852
Accumulated Depreciation	251
Temple, GA [Member] | Auto Zone II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	569
Buildings and Improvements, Initial Cost	854
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,423
Accumulated Depreciation	160
Stanleytown, VA [Member] | Dollar General VIII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	185
Buildings and Improvements, Initial Cost	1,049
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,234
Accumulated Depreciation	196
Oil City, LA [Member] | Family Dollar IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	76
Buildings and Improvements, Initial Cost	685
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	761
Accumulated Depreciation	128
Montevalo, AL [Member] | Fresenius I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	300
Buildings and Improvements, Initial Cost	1,699
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,999
Accumulated Depreciation	266
Mabelvale, AR [Member] | Dollar General IX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	38
Buildings and Improvements, Initial Cost	723
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	761
Accumulated Depreciation	135
Angola, IN [Member] | Advance Auto I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	35
Buildings and Improvements, Initial Cost	671
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	706
Accumulated Depreciation	123
Hernando, MS [Member] | Arby's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	624
Buildings and Improvements, Initial Cost	1,455
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,079
Accumulated Depreciation	333
Holyoke, MA [Member] | CVS II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	0
Buildings and Improvements, Initial Cost	2,258
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,258
Accumulated Depreciation	440
Lansing, MI [Member] | Walgreens III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	216
Buildings and Improvements, Initial Cost	4,099
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,315
Accumulated Depreciation	799
Beaumont, TX [Member] | Walgreens IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	499
Buildings and Improvements, Initial Cost	1,995
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,494
Accumulated Depreciation	389
Salt Lake City, UT [Member] | American Express Travel Related Services I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	4,150
Buildings and Improvements, Initial Cost	32,789
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	36,939
Accumulated Depreciation	8,352
Greensboro, NC [Member] | American Express Travel Related Services I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,620
Buildings and Improvements, Initial Cost	41,401
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	43,021
Accumulated Depreciation	9,770
Greensboro, NC [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	650
Buildings and Improvements, Initial Cost	712
Land, Costs Capitalized Subsequent to Acquisition	(192)
Costs Capitalized Subsequent to Acquisition	(189)
Gross Amount	981
Accumulated Depreciation	71
Greensboro, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	488
Buildings and Improvements, Initial Cost	794
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,282
Accumulated Depreciation	72
Greensboro, NC [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	619
Buildings and Improvements, Initial Cost	742
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,361
Accumulated Depreciation	78
Greensboro, NC II [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	326
Buildings and Improvements, Initial Cost	633
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	959
Accumulated Depreciation	55
Piedmont, SC [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,030
Buildings and Improvements, Initial Cost	24,067
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	27,097
Accumulated Depreciation	4,771
Gaffney, SC [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,360
Buildings and Improvements, Initial Cost	5,666
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	7,026
Accumulated Depreciation	1,123
Pendergrass, GA [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,810
Buildings and Improvements, Initial Cost	26,572
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	29,382
Accumulated Depreciation	5,268
Gainesville, GA [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,580
Buildings and Improvements, Initial Cost	13,838
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	15,418
Accumulated Depreciation	2,743
Cartersville, GA [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,640
Buildings and Improvements, Initial Cost	14,533
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	16,173
Accumulated Depreciation	2,881
Cartersville, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	658
Buildings and Improvements, Initial Cost	1,734
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,392
Accumulated Depreciation	140
Douglas, GA [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	750
Buildings and Improvements, Initial Cost	7,076
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	7,826
Accumulated Depreciation	1,403
Douglas, GA [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	73
Buildings and Improvements, Initial Cost	1,248
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,321
Accumulated Depreciation	97
Belvidere, IL [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,170
Buildings and Improvements, Initial Cost	17,843
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	20,013
Accumulated Depreciation	3,537
Brooklyn Park, MN [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,590
Buildings and Improvements, Initial Cost	11,940
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	13,530
Accumulated Depreciation	2,367
Zumbrota, MN [Member] | AmeriCold
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,440
Buildings and Improvements, Initial Cost	18,152
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	20,592
Accumulated Depreciation	3,599
Greenwell Springs, LA [Member] | Dollar General X [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	114
Buildings and Improvements, Initial Cost	1,029
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,143
Accumulated Depreciation	188
Valdosta, GA [Member] | Home Depot I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,930
Buildings and Improvements, Initial Cost	30,538
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	33,468
Accumulated Depreciation	4,673
Valdosta, GA [Member] | Mattress Firm III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	169
Buildings and Improvements, Initial Cost	1,522
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,691
Accumulated Depreciation	256
Birmingham, AL [Member] | Home Depot I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,660
Buildings and Improvements, Initial Cost	33,667
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	37,327
Accumulated Depreciation	5,152
Birmingham, AL [Member] | C&S Wholesale Grocer I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	4,951
Buildings and Improvements, Initial Cost	36,894
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	41,845
Accumulated Depreciation	2,685
Taunton, MA [Member] | Advance Auto III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	404
Buildings and Improvements, Initial Cost	1,148
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,552
Accumulated Depreciation	88
San Antonio, TX [Member] | National Tire & Battery I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	577
Buildings and Improvements, Initial Cost	577
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,154
Accumulated Depreciation	109
Hanahan, SC [Member] | New Breed Logistics I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,940
Buildings and Improvements, Initial Cost	19,171
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	22,111
Accumulated Depreciation	3,801
Atlanta, GA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,190
Buildings and Improvements, Initial Cost	5,666
Land, Costs Capitalized Subsequent to Acquisition	(291)
Costs Capitalized Subsequent to Acquisition	(641)
Gross Amount	6,924
Accumulated Depreciation	843
Atlanta, GA [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,071
Buildings and Improvements, Initial Cost	2,293
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,364
Accumulated Depreciation	196
Atlanta, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,027
Buildings and Improvements, Initial Cost	4,873
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	7,900
Accumulated Depreciation	367
District of Columbia [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	590
Buildings and Improvements, Initial Cost	2,366
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,956
Accumulated Depreciation	412
New Smyrna Beach, FL [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	740
Buildings and Improvements, Initial Cost	2,859
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,599
Accumulated Depreciation	498
Brooksville, FL [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	360
Buildings and Improvements, Initial Cost	127
Land, Costs Capitalized Subsequent to Acquisition	(137)
Costs Capitalized Subsequent to Acquisition	(40)
Gross Amount	310
Accumulated Depreciation	22
Brooksville, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	460
Buildings and Improvements, Initial Cost	954
Land, Costs Capitalized Subsequent to Acquisition	(175)
Costs Capitalized Subsequent to Acquisition	(331)
Gross Amount	908
Accumulated Depreciation	84
West Palm Beach, FL [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	520
Buildings and Improvements, Initial Cost	2,264
Land, Costs Capitalized Subsequent to Acquisition	(177)
Costs Capitalized Subsequent to Acquisition	(636)
Gross Amount	1,971
Accumulated Depreciation	394
Orlando, FL [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	540
Buildings and Improvements, Initial Cost	3,069
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,609
Accumulated Depreciation	534
Orlando, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,234
Buildings and Improvements, Initial Cost	1,125
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,359
Accumulated Depreciation	97
Orlando, FL II [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	410
Buildings and Improvements, Initial Cost	2,078
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,488
Accumulated Depreciation	362
Orlando, FL II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	874
Buildings and Improvements, Initial Cost	1,922
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,796
Accumulated Depreciation	154
Ft Pierce, FL [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	720
Buildings and Improvements, Initial Cost	1,434
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,154
Accumulated Depreciation	250
Atlanta, GA II [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	570
Buildings and Improvements, Initial Cost	1,152
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,722
Accumulated Depreciation	201
Atlanta, GA II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	4,422
Buildings and Improvements, Initial Cost	1,559
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	5,981
Accumulated Depreciation	130
Mundelein, IL [Member] | National Tire & Battery II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	0
Buildings and Improvements, Initial Cost	1,742
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,742
Accumulated Depreciation	328
Waycross, GA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	300
Buildings and Improvements, Initial Cost	1,425
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,725
Accumulated Depreciation	248
Cary, NC [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	370
Buildings and Improvements, Initial Cost	841
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,211
Accumulated Depreciation	147
Stokesdale, NC [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	230
Buildings and Improvements, Initial Cost	581
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	811
Accumulated Depreciation	101
Summerfield, NC [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	210
Buildings and Improvements, Initial Cost	605
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	815
Accumulated Depreciation	105
Waynesville, NC [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	200
Buildings and Improvements, Initial Cost	874
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,074
Accumulated Depreciation	152
Fountain Inn, SC [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	290
Buildings and Improvements, Initial Cost	1,086
Land, Costs Capitalized Subsequent to Acquisition	(155)
Costs Capitalized Subsequent to Acquisition	(479)
Gross Amount	742
Accumulated Depreciation	189
Nashville, TN [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	190
Buildings and Improvements, Initial Cost	666
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	856
Accumulated Depreciation	116
Nashville, TN [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	890
Buildings and Improvements, Initial Cost	504
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,394
Accumulated Depreciation	53
Nashville, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	204
Buildings and Improvements, Initial Cost	740
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	944
Accumulated Depreciation	57
Nashville, TN [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,035
Buildings and Improvements, Initial Cost	745
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,780
Accumulated Depreciation	60
Savannah, TN [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	390
Buildings and Improvements, Initial Cost	1,179
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,569
Accumulated Depreciation	205
Chattanooga, TN I [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	220
Buildings and Improvements, Initial Cost	781
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,001
Accumulated Depreciation	136
Chattanooga, TN I [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	191
Buildings and Improvements, Initial Cost	335
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	526
Accumulated Depreciation	27
Oak Ridge, TN [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	500
Buildings and Improvements, Initial Cost	1,277
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,777
Accumulated Depreciation	222
Doswell, VA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	190
Buildings and Improvements, Initial Cost	510
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	700
Accumulated Depreciation	89
Vinton, VA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	120
Buildings and Improvements, Initial Cost	366
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	486
Accumulated Depreciation	64
New Market, VA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	330
Buildings and Improvements, Initial Cost	948
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,278
Accumulated Depreciation	165
Brunswick, GA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	80
Buildings and Improvements, Initial Cost	249
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	329
Accumulated Depreciation	43
Brunswick, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	384
Buildings and Improvements, Initial Cost	888
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,272
Accumulated Depreciation	77
Burlington, NC [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	200
Buildings and Improvements, Initial Cost	497
Land, Costs Capitalized Subsequent to Acquisition	(21)
Costs Capitalized Subsequent to Acquisition	(43)
Gross Amount	633
Accumulated Depreciation	87
Pittsboro, NC [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	100
Buildings and Improvements, Initial Cost	304
Land, Costs Capitalized Subsequent to Acquisition	(20)
Costs Capitalized Subsequent to Acquisition	(50)
Gross Amount	334
Accumulated Depreciation	53
Pittsboro, NC [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	61
Buildings and Improvements, Initial Cost	510
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	571
Accumulated Depreciation	37
Dunwoody, GA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	460
Buildings and Improvements, Initial Cost	2,714
Land, Costs Capitalized Subsequent to Acquisition	(85)
Costs Capitalized Subsequent to Acquisition	(412)
Gross Amount	2,677
Accumulated Depreciation	473
Athens, GA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	610
Buildings and Improvements, Initial Cost	1,662
Land, Costs Capitalized Subsequent to Acquisition	(97)
Costs Capitalized Subsequent to Acquisition	(218)
Gross Amount	1,957
Accumulated Depreciation	289
Athens, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	427
Buildings and Improvements, Initial Cost	472
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	899
Accumulated Depreciation	60
Spencer, NC [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	280
Buildings and Improvements, Initial Cost	717
Land, Costs Capitalized Subsequent to Acquisition	(67)
Costs Capitalized Subsequent to Acquisition	(141)
Gross Amount	789
Accumulated Depreciation	125
Cleveland, TN [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	170
Buildings and Improvements, Initial Cost	461
Land, Costs Capitalized Subsequent to Acquisition	(21)
Costs Capitalized Subsequent to Acquisition	(47)
Gross Amount	563
Accumulated Depreciation	80
Cleveland, TN [Member] | Krystal I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	207
Buildings and Improvements, Initial Cost	1,172
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,379
Accumulated Depreciation	268
Nassawadox, VA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	70
Buildings and Improvements, Initial Cost	484
Land, Costs Capitalized Subsequent to Acquisition	(8)
Costs Capitalized Subsequent to Acquisition	(47)
Gross Amount	499
Accumulated Depreciation	84
Burlington, IA [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	224
Buildings and Improvements, Initial Cost	523
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	747
Accumulated Depreciation	96
Clinton, IA [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	334
Buildings and Improvements, Initial Cost	779
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,113
Accumulated Depreciation	142
Muscatine, IA [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	274
Buildings and Improvements, Initial Cost	821
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,095
Accumulated Depreciation	150
Aledo, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	427
Buildings and Improvements, Initial Cost	1,709
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,136
Accumulated Depreciation	312
Bloomington, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	316
Buildings and Improvements, Initial Cost	586
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	902
Accumulated Depreciation	107
Bloomington, IL [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,568
Buildings and Improvements, Initial Cost	3,659
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	5,227
Accumulated Depreciation	713
Bloomington, IL II [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	395
Buildings and Improvements, Initial Cost	592
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	987
Accumulated Depreciation	108
Champaign, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	412
Buildings and Improvements, Initial Cost	504
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	916
Accumulated Depreciation	92
Champaign, IL [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	256
Buildings and Improvements, Initial Cost	1,449
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,705
Accumulated Depreciation	332
Galesburg, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	355
Buildings and Improvements, Initial Cost	829
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,184
Accumulated Depreciation	151
Jacksonville, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	351
Buildings and Improvements, Initial Cost	818
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,169
Accumulated Depreciation	149
Jacksonville, IL II [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	316
Buildings and Improvements, Initial Cost	474
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	790
Accumulated Depreciation	87
Matoon, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	608
Buildings and Improvements, Initial Cost	1,129
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,737
Accumulated Depreciation	206
Morton, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	350
Buildings and Improvements, Initial Cost	525
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	875
Accumulated Depreciation	96
Paris, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	429
Buildings and Improvements, Initial Cost	797
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,226
Accumulated Depreciation	146
Staunton, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	467
Buildings and Improvements, Initial Cost	1,867
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,334
Accumulated Depreciation	341
Vandalia, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	529
Buildings and Improvements, Initial Cost	983
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,512
Accumulated Depreciation	179
Virden, IL [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	302
Buildings and Improvements, Initial Cost	1,208
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,510
Accumulated Depreciation	220
Lafayette, IN [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	401
Buildings and Improvements, Initial Cost	746
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,147
Accumulated Depreciation	136
Bedford, OH [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	702
Buildings and Improvements, Initial Cost	702
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,404
Accumulated Depreciation	128
Streetsboro, OH [Member] | Circle K I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	540
Buildings and Improvements, Initial Cost	540
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,080
Accumulated Depreciation	99
Oklahoma City, OK [Member] | Walgreens V [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,295
Buildings and Improvements, Initial Cost	3,884
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	5,179
Accumulated Depreciation	757
Gillette, WY [Member] | Walgreens VI [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,198
Buildings and Improvements, Initial Cost	2,796
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,994
Accumulated Depreciation	545
Highstown, NJ [Member] | 1st Constitution Bancorp I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	260
Buildings and Improvements, Initial Cost	1,471
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,731
Accumulated Depreciation	256
Chatanooga, TN [Member] | American Tire Distributors I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	401
Buildings and Improvements, Initial Cost	7,626
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	8,027
Accumulated Depreciation	1,512
Chatanooga, TN [Member] | Krystal I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	285
Buildings and Improvements, Initial Cost	855
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,140
Accumulated Depreciation	196
Chatanooga, TN [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	358
Buildings and Improvements, Initial Cost	564
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	922
Accumulated Depreciation	50
Watertown, SD [Member] | Fedex Ground I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	136
Buildings and Improvements, Initial Cost	2,581
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,717
Accumulated Depreciation	512
Jacksonville, FL [Member] | Krystal I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	533
Buildings and Improvements, Initial Cost	799
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,332
Accumulated Depreciation	183
Jacksonville, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	871
Buildings and Improvements, Initial Cost	372
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,243
Accumulated Depreciation	37
Columbus, GA [Member] | Krystal I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	143
Buildings and Improvements, Initial Cost	1,288
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,431
Accumulated Depreciation	295
Columbus, GA [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	417
Buildings and Improvements, Initial Cost	1,395
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,812
Accumulated Depreciation	114
Ft. Oglethorpe, GA [Member] | Krystal I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	181
Buildings and Improvements, Initial Cost	1,024
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,205
Accumulated Depreciation	234
Madison, TN [Member] | Krystal I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	416
Buildings and Improvements, Initial Cost	624
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,040
Accumulated Depreciation	143
Lexington, KY [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	409
Buildings and Improvements, Initial Cost	955
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,364
Accumulated Depreciation	219
Conyers, GA [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	373
Buildings and Improvements, Initial Cost	2,113
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,486
Accumulated Depreciation	484
Conyers, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	205
Buildings and Improvements, Initial Cost	1,334
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,539
Accumulated Depreciation	105
Southaven, MS [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	836
Buildings and Improvements, Initial Cost	1,553
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,389
Accumulated Depreciation	355
Daphne, AL [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	142
Buildings and Improvements, Initial Cost	1,275
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,417
Accumulated Depreciation	292
Kennesaw, GA [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	142
Buildings and Improvements, Initial Cost	1,280
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,422
Accumulated Depreciation	293
Kennesaw, GA [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	930
Buildings and Improvements, Initial Cost	1,727
Land, Costs Capitalized Subsequent to Acquisition	(437)
Costs Capitalized Subsequent to Acquisition	(741)
Gross Amount	1,479
Accumulated Depreciation	151
Springfield, OH [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	262
Buildings and Improvements, Initial Cost	1,484
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,746
Accumulated Depreciation	340
Murfreesboro, TN [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	597
Buildings and Improvements, Initial Cost	1,109
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,706
Accumulated Depreciation	254
Murfreesboro, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	451
Buildings and Improvements, Initial Cost	847
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,298
Accumulated Depreciation	65
McDonough, GA [Member] | Matress Firm I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	185
Buildings and Improvements, Initial Cost	1,663
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,848
Accumulated Depreciation	288
McDonough, GA [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	335
Buildings and Improvements, Initial Cost	1,899
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,234
Accumulated Depreciation	434
Simpsonville, SC [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	349
Buildings and Improvements, Initial Cost	1,395
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,744
Accumulated Depreciation	319
Grove City, OH [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	387
Buildings and Improvements, Initial Cost	1,546
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,933
Accumulated Depreciation	354
Clarksville, TN [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	917
Buildings and Improvements, Initial Cost	1,376
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,293
Accumulated Depreciation	315
Columbus, OH [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	271
Buildings and Improvements, Initial Cost	1,533
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,804
Accumulated Depreciation	351
Foley, AL [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	264
Buildings and Improvements, Initial Cost	1,495
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,759
Accumulated Depreciation	342
Corydon, IN [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	260
Buildings and Improvements, Initial Cost	1,473
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,733
Accumulated Depreciation	337
Salisbury, NC [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	439
Buildings and Improvements, Initial Cost	1,024
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,463
Accumulated Depreciation	234
Salisbury, NC [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	264
Buildings and Improvements, Initial Cost	293
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	557
Accumulated Depreciation	33
Mauldin, SC II [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	542
Buildings and Improvements, Initial Cost	704
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,246
Accumulated Depreciation	69
Carrolton, GA [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	457
Buildings and Improvements, Initial Cost	1,067
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,524
Accumulated Depreciation	244
Lake Charles, LA [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,118
Buildings and Improvements, Initial Cost	1,367
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,485
Accumulated Depreciation	313
Hattiesburg, MS [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	413
Buildings and Improvements, Initial Cost	1,651
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,064
Accumulated Depreciation	378
Greenfield, IN [Member] | O'Charley's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	507
Buildings and Improvements, Initial Cost	1,184
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,691
Accumulated Depreciation	271
Monroe, MI [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,149
Buildings and Improvements, Initial Cost	2,680
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,829
Accumulated Depreciation	523
St. Louis, MO [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	903
Buildings and Improvements, Initial Cost	2,107
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,010
Accumulated Depreciation	411
Rockledge, FL [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,040
Buildings and Improvements, Initial Cost	1,931
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,971
Accumulated Depreciation	377
Florissant, MO [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	474
Buildings and Improvements, Initial Cost	1,422
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,896
Accumulated Depreciation	277
Florissant, MO II [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	561
Buildings and Improvements, Initial Cost	1,309
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,870
Accumulated Depreciation	255
Alton, IL [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,158
Buildings and Improvements, Initial Cost	3,474
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,632
Accumulated Depreciation	677
Springfield, IL [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,319
Buildings and Improvements, Initial Cost	3,078
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,397
Accumulated Depreciation	600
Washington, IL [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	964
Buildings and Improvements, Initial Cost	2,893
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,857
Accumulated Depreciation	564
Mahomet, IL [Member] | Walgreens VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,432
Buildings and Improvements, Initial Cost	2,659
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,091
Accumulated Depreciation	519
Houghton, MI [Member] | Tractor Supply II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	204
Buildings and Improvements, Initial Cost	1,158
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,362
Accumulated Depreciation	179
Howard, WI [Member] | United Healthcare I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,805
Buildings and Improvements, Initial Cost	47,565
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	51,370
Accumulated Depreciation	4,118
Harlan, KY [Member] | Tractor Supply III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	248
Buildings and Improvements, Initial Cost	2,232
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,480
Accumulated Depreciation	337
Knoxville, TN [Member] | Mattress Firm II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	189
Buildings and Improvements, Initial Cost	754
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	943
Accumulated Depreciation	134
Greenville, MS [Member] | Dollar General XI [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	192
Buildings and Improvements, Initial Cost	769
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	961
Accumulated Depreciation	137
Cape, Girardeau, MO [Member] | Academy Sports I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	384
Buildings and Improvements, Initial Cost	7,292
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	7,676
Accumulated Depreciation	1,110
Eagle Pass, TX [Member] | Talercris Plasma Resources I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	286
Buildings and Improvements, Initial Cost	2,577
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,863
Accumulated Depreciation	384
Winchester, KY [Member] | Amazon I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	362
Buildings and Improvements, Initial Cost	8,070
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	8,432
Accumulated Depreciation	1,306
Montclair, NJ [Member] | Fresenius II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,214
Buildings and Improvements, Initial Cost	2,255
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,469
Accumulated Depreciation	336
Sharon Hill, PA [Member] | Fresenius II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	345
Buildings and Improvements, Initial Cost	1,956
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,301
Accumulated Depreciation	291
Le Center, MN [Member] | Dollar General XII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	47
Buildings and Improvements, Initial Cost	886
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	933
Accumulated Depreciation	158
Bunnell, FL [Member] | Advance Auto II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	92
Buildings and Improvements, Initial Cost	1,741
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,833
Accumulated Depreciation	310
Washington, GA [Member] | Advance Auto II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	55
Buildings and Improvements, Initial Cost	1,042
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,097
Accumulated Depreciation	185
Vidor, TX [Member] | Dollar General XIII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	46
Buildings and Improvements, Initial Cost	875
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	921
Accumulated Depreciation	156
Leland, MS [Member] | FedEx Ground II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	220
Buildings and Improvements, Initial Cost	4,186
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,406
Accumulated Depreciation	809
Algonquin, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	798
Buildings and Improvements, Initial Cost	798
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,596
Accumulated Depreciation	140
Antioch, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	706
Buildings and Improvements, Initial Cost	471
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,177
Accumulated Depreciation	83
Crystal Lake, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	541
Buildings and Improvements, Initial Cost	232
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	773
Accumulated Depreciation	41
Grayslake, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	582
Buildings and Improvements, Initial Cost	476
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,058
Accumulated Depreciation	84
Gurnee, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	931
Buildings and Improvements, Initial Cost	931
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,862
Accumulated Depreciation	163
McHenry, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	742
Buildings and Improvements, Initial Cost	318
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,060
Accumulated Depreciation	56
Round Lake Beach, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,273
Buildings and Improvements, Initial Cost	1,042
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,315
Accumulated Depreciation	183
Waukegan, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	611
Buildings and Improvements, Initial Cost	611
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,222
Accumulated Depreciation	107
Woodstock, IL [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	869
Buildings and Improvements, Initial Cost	290
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,159
Accumulated Depreciation	51
Austintown, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	221
Buildings and Improvements, Initial Cost	1,251
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,472
Accumulated Depreciation	219
Beavercreek, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	410
Buildings and Improvements, Initial Cost	761
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,171
Accumulated Depreciation	134
Celina, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	233
Buildings and Improvements, Initial Cost	932
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,165
Accumulated Depreciation	164
Chardon, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	332
Buildings and Improvements, Initial Cost	497
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	829
Accumulated Depreciation	87
Chesterland, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	320
Buildings and Improvements, Initial Cost	747
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,067
Accumulated Depreciation	131
Cortland, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	118
Buildings and Improvements, Initial Cost	1,063
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,181
Accumulated Depreciation	187
Dayton, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	464
Buildings and Improvements, Initial Cost	862
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,326
Accumulated Depreciation	151
Fairborn, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	421
Buildings and Improvements, Initial Cost	982
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,403
Accumulated Depreciation	172
Girard, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	421
Buildings and Improvements, Initial Cost	1,264
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,685
Accumulated Depreciation	222
Greenville, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	248
Buildings and Improvements, Initial Cost	993
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,241
Accumulated Depreciation	174
Madison, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	282
Buildings and Improvements, Initial Cost	845
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,127
Accumulated Depreciation	148
Mentor, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	196
Buildings and Improvements, Initial Cost	786
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	982
Accumulated Depreciation	138
Niles, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	304
Buildings and Improvements, Initial Cost	1,214
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,518
Accumulated Depreciation	213
North Royalton, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	156
Buildings and Improvements, Initial Cost	886
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,042
Accumulated Depreciation	156
Painesville, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	170
Buildings and Improvements, Initial Cost	965
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,135
Accumulated Depreciation	169
Poland, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	212
Buildings and Improvements, Initial Cost	847
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,059
Accumulated Depreciation	149
Ravenna, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	391
Buildings and Improvements, Initial Cost	1,172
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,563
Accumulated Depreciation	206
Salem, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	352
Buildings and Improvements, Initial Cost	1,408
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,760
Accumulated Depreciation	247
Trotwood, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	266
Buildings and Improvements, Initial Cost	798
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,064
Accumulated Depreciation	140
Twinsburg, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	458
Buildings and Improvements, Initial Cost	850
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,308
Accumulated Depreciation	149
Vandalia, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	182
Buildings and Improvements, Initial Cost	728
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	910
Accumulated Depreciation	128
Warren, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	176
Buildings and Improvements, Initial Cost	997
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,173
Accumulated Depreciation	175
Warren, OH II [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	168
Buildings and Improvements, Initial Cost	1,516
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,684
Accumulated Depreciation	266
Willoughby, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	394
Buildings and Improvements, Initial Cost	920
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,314
Accumulated Depreciation	161
Youngstown, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	300
Buildings and Improvements, Initial Cost	901
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,201
Accumulated Depreciation	158
Youngstown, OH II [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	186
Buildings and Improvements, Initial Cost	1,675
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,861
Accumulated Depreciation	294
Youngstown, OH III [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	147
Buildings and Improvements, Initial Cost	1,324
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,471
Accumulated Depreciation	232
Youngstown, OH IV [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	370
Buildings and Improvements, Initial Cost	1,481
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,851
Accumulated Depreciation	260
Bethel Park, PA [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	342
Buildings and Improvements, Initial Cost	634
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	976
Accumulated Depreciation	111
North Fayette, PA [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	463
Buildings and Improvements, Initial Cost	1,388
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,851
Accumulated Depreciation	244
N Versailles, PA [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	553
Buildings and Improvements, Initial Cost	1,659
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,212
Accumulated Depreciation	291
Columbiana, OH [Member] | Burger King I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	581
Buildings and Improvements, Initial Cost	871
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,452
Accumulated Depreciation	153
Ft Smith, AR [Member] | Dollar General XIV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	184
Buildings and Improvements, Initial Cost	1,042
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,226
Accumulated Depreciation	180
Hot Springs, AR [Member] | Dollar General XIV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	287
Buildings and Improvements, Initial Cost	862
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,149
Accumulated Depreciation	149
Royal, AR [Member] | Dollar General XIV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	137
Buildings and Improvements, Initial Cost	777
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	914
Accumulated Depreciation	135
Wilson, NY [Member] | Dollar General XV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	172
Buildings and Improvements, Initial Cost	972
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,144
Accumulated Depreciation	168
Bismarck, ND [Member] | FedEx Ground III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	554
Buildings and Improvements, Initial Cost	3,139
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,693
Accumulated Depreciation	590
LaFollette, TN [Member] | Dollar General XVI [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	43
Buildings and Improvements, Initial Cost	824
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	867
Accumulated Depreciation	143
Carrollton, MO [Member] | Family Dollar V [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	37
Buildings and Improvements, Initial Cost	713
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	750
Accumulated Depreciation	124
Bettendorf, IA [Member] | Walgreens VIII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,398
Buildings and Improvements, Initial Cost	3,261
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,659
Accumulated Depreciation	603
Detroit, MI [Member] | CVS III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	447
Buildings and Improvements, Initial Cost	2,533
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,980
Accumulated Depreciation	469
Walden, CO [Member] | Family Dollar VI [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	100
Buildings and Improvements, Initial Cost	568
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	668
Accumulated Depreciation	98
Virginia, MN [Member] | Arby's II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	117
Buildings and Improvements, Initial Cost	1,056
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,173
Accumulated Depreciation	176
Kremmling, CO [Member] | Family Dollar VI [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	194
Buildings and Improvements, Initial Cost	778
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	972
Accumulated Depreciation	131
Syracuse, NY [Member] | SAAB Sensis I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,841
Land, Initial Cost	2,516
Buildings and Improvements, Initial Cost	12,570
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	15,086
Accumulated Depreciation	1,071
Doylestown, PA [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	588
Buildings and Improvements, Initial Cost	1,373
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,961
Accumulated Depreciation	221
Lansdale, PA [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	531
Buildings and Improvements, Initial Cost	1,238
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,769
Accumulated Depreciation	199
Lima, PA [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,376
Buildings and Improvements, Initial Cost	1,682
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,058
Accumulated Depreciation	270
Philadelphia, PA (Frankford) [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	473
Buildings and Improvements, Initial Cost	2,680
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,153
Accumulated Depreciation	431
Philadelphia, PA II [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	412
Buildings and Improvements, Initial Cost	2,337
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,749
Accumulated Depreciation	376
Philadelphia, PA III [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	321
Buildings and Improvements, Initial Cost	2,889
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,210
Accumulated Depreciation	464
Philadelphia, PA V [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	388
Buildings and Improvements, Initial Cost	1,551
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,939
Accumulated Depreciation	249
Richboro, PA [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	642
Buildings and Improvements, Initial Cost	1,193
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,835
Accumulated Depreciation	192
Wayne, PA [Member] | Citizens Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,923
Buildings and Improvements, Initial Cost	1,923
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,846
Accumulated Depreciation	309
Waterford, MI [Member] | Walgreens IX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	514
Buildings and Improvements, Initial Cost	4,531
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	5,045
Accumulated Depreciation	359
Lakeland, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	590
Buildings and Improvements, Initial Cost	705
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,295
Accumulated Depreciation	72
Lakeland, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	927
Buildings and Improvements, Initial Cost	1,594
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,521
Accumulated Depreciation	155
Pensacola, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	513
Buildings and Improvements, Initial Cost	297
Land, Costs Capitalized Subsequent to Acquisition	(74)
Costs Capitalized Subsequent to Acquisition	(39)
Gross Amount	697
Accumulated Depreciation	31
Plant City, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	499
Buildings and Improvements, Initial Cost	1,139
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,638
Accumulated Depreciation	106
Vero Beach, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	825
Buildings and Improvements, Initial Cost	2,682
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,507
Accumulated Depreciation	224
Vero Beach, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	675
Buildings and Improvements, Initial Cost	483
Land, Costs Capitalized Subsequent to Acquisition	(372)
Costs Capitalized Subsequent to Acquisition	(240)
Gross Amount	546
Accumulated Depreciation	47
Osprey, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	450
Buildings and Improvements, Initial Cost	2,086
Land, Costs Capitalized Subsequent to Acquisition	(187)
Costs Capitalized Subsequent to Acquisition	(787)
Gross Amount	1,562
Accumulated Depreciation	196
Panama City, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	484
Buildings and Improvements, Initial Cost	1,075
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,559
Accumulated Depreciation	98
Miami, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,187
Buildings and Improvements, Initial Cost	3,224
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	6,411
Accumulated Depreciation	272
Winter Park, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,264
Buildings and Improvements, Initial Cost	1,079
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,343
Accumulated Depreciation	101
Fruitland Park, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	305
Buildings and Improvements, Initial Cost	785
Land, Costs Capitalized Subsequent to Acquisition	(126)
Costs Capitalized Subsequent to Acquisition	(292)
Gross Amount	672
Accumulated Depreciation	75
Seminole, F [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,329
Buildings and Improvements, Initial Cost	3,486
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,815
Accumulated Depreciation	286
Okeechobee, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	339
Buildings and Improvements, Initial Cost	1,569
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,908
Accumulated Depreciation	170
Norcross, GA [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	660
Buildings and Improvements, Initial Cost	252
Land, Costs Capitalized Subsequent to Acquisition	(255)
Costs Capitalized Subsequent to Acquisition	(88)
Gross Amount	569
Accumulated Depreciation	25
Douglasville, GA [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	410
Buildings and Improvements, Initial Cost	749
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,159
Accumulated Depreciation	66
Duluth, GA [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,081
Buildings and Improvements, Initial Cost	2,111
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,192
Accumulated Depreciation	179
Cockeysville, MD [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,184
Buildings and Improvements, Initial Cost	479
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,663
Accumulated Depreciation	41
Apex, NC [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	296
Buildings and Improvements, Initial Cost	1,240
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,536
Accumulated Depreciation	102
Arden, NC [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	374
Buildings and Improvements, Initial Cost	216
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	590
Accumulated Depreciation	23
East Ridge, TN [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	276
Buildings and Improvements, Initial Cost	475
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	751
Accumulated Depreciation	47
Fredricksburg, VA [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,623
Buildings and Improvements, Initial Cost	446
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,069
Accumulated Depreciation	46
Lynchburg, VA [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	584
Buildings and Improvements, Initial Cost	1,255
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,839
Accumulated Depreciation	111
Chesapeake, VA [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	490
Buildings and Improvements, Initial Cost	695
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,185
Accumulated Depreciation	64
Bushnell, FL [Member] | SunTrust Bank II [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	385
Buildings and Improvements, Initial Cost	1,216
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,601
Accumulated Depreciation	96
Meridian, ID [Member] | Mattress Firm IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	691
Buildings and Improvements, Initial Cost	1,193
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,884
Accumulated Depreciation	107
Sunrise Beach, MO [Member] | Dollar General XII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	105
Buildings and Improvements, Initial Cost	795
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	900
Accumulated Depreciation	100
Council Bluffs, IA [Member] | FedEx Ground IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	768
Buildings and Improvements, Initial Cost	3,908
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,676
Accumulated Depreciation	365
Florence, AL [Member] | Mattress Firm V [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	299
Buildings and Improvements, Initial Cost	1,478
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,777
Accumulated Depreciation	128
Bernice, LA [Member] | Family Dollar VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	51
Buildings and Improvements, Initial Cost	527
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	578
Accumulated Depreciation	48
Erie, PA [Member] | Aaron's I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	126
Buildings and Improvements, Initial Cost	708
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	834
Accumulated Depreciation	58
Caro, MI [Member] | Autozone III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	135
Buildings and Improvements, Initial Cost	855
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	990
Accumulated Depreciation	73
Westfield MA [Member] | C&S Wholesale Grocer I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	29,500
Land, Initial Cost	12,050
Buildings and Improvements, Initial Cost	29,727
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	41,777
Accumulated Depreciation	2,737
Hatfield (North) MA [Member] | C&S Wholesale Grocer I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	20,280
Land, Initial Cost	1,951
Buildings and Improvements, Initial Cost	27,528
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	29,479
Accumulated Depreciation	2,514
Hatfield (South), MA [Member] | C&S Wholesale Grocer I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	10,000
Land, Initial Cost	1,420
Buildings and Improvements, Initial Cost	14,169
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	15,589
Accumulated Depreciation	1,047
Aberdeen, MD [Member] | C&S Wholesale Grocer I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	22,533
Land, Initial Cost	3,615
Buildings and Improvements, Initial Cost	27,684
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	31,299
Accumulated Depreciation	2,005
Dexter, NM [Member] | Family Dollar VIII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	79
Buildings and Improvements, Initial Cost	745
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	824
Accumulated Depreciation	74
Hale Center, TX [Member] | Family Dollar VIII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	111
Buildings and Improvements, Initial Cost	624
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	735
Accumulated Depreciation	62
Plains, TX [Member] | Family Dollar VIII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	100
Buildings and Improvements, Initial Cost	624
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	724
Accumulated Depreciation	62
Tullos, LA [Member] | Dollar General XVII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	114
Buildings and Improvements, Initial Cost	736
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	850
Accumulated Depreciation	63
Muscle Shoals, AL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	242
Buildings and Improvements, Initial Cost	1,480
Land, Costs Capitalized Subsequent to Acquisition	(31)
Costs Capitalized Subsequent to Acquisition	(174)
Gross Amount	1,517
Accumulated Depreciation	135
Sarasota, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	741
Buildings and Improvements, Initial Cost	852
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,593
Accumulated Depreciation	77
Fort Meade, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	175
Buildings and Improvements, Initial Cost	2,375
Land, Costs Capitalized Subsequent to Acquisition	(72)
Costs Capitalized Subsequent to Acquisition	(899)
Gross Amount	1,579
Accumulated Depreciation	188
Port St. Lucie, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	913
Buildings and Improvements, Initial Cost	1,772
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,685
Accumulated Depreciation	153
Mulberry, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	406
Buildings and Improvements, Initial Cost	753
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,159
Accumulated Depreciation	67
Gainsville, FL I [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	458
Buildings and Improvements, Initial Cost	2,139
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,597
Accumulated Depreciation	170
Gainesville, FL II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	457
Buildings and Improvements, Initial Cost	816
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,273
Accumulated Depreciation	73
Gulf Breeze, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,092
Buildings and Improvements, Initial Cost	1,569
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,661
Accumulated Depreciation	134
Sarasota, FL II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	955
Buildings and Improvements, Initial Cost	1,329
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,284
Accumulated Depreciation	112
Hobe Sound, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	442
Buildings and Improvements, Initial Cost	1,521
Land, Costs Capitalized Subsequent to Acquisition	(182)
Costs Capitalized Subsequent to Acquisition	(574)
Gross Amount	1,207
Accumulated Depreciation	124
Port St. Lucie, FL II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	996
Buildings and Improvements, Initial Cost	872
Land, Costs Capitalized Subsequent to Acquisition	(555)
Costs Capitalized Subsequent to Acquisition	(441)
Gross Amount	872
Accumulated Depreciation	81
Mount Dora, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	570
Buildings and Improvements, Initial Cost	1,933
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,503
Accumulated Depreciation	153
Daytona, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	376
Buildings and Improvements, Initial Cost	1,379
Land, Costs Capitalized Subsequent to Acquisition	(174)
Costs Capitalized Subsequent to Acquisition	(585)
Gross Amount	996
Accumulated Depreciation	117
Lutz, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	438
Buildings and Improvements, Initial Cost	1,477
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,915
Accumulated Depreciation	117
Jacksonville, FL II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	366
Buildings and Improvements, Initial Cost	1,136
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,502
Accumulated Depreciation	95
Boca Raton, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,617
Buildings and Improvements, Initial Cost	690
Land, Costs Capitalized Subsequent to Acquisition	(364)
Costs Capitalized Subsequent to Acquisition	(142)
Gross Amount	1,801
Accumulated Depreciation	60
Tamarac, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	997
Buildings and Improvements, Initial Cost	1,241
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,238
Accumulated Depreciation	105
Pompano, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	886
Buildings and Improvements, Initial Cost	2,024
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,910
Accumulated Depreciation	159
St. Cloud, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,046
Buildings and Improvements, Initial Cost	1,887
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,933
Accumulated Depreciation	155
Ormond Beach, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,047
Buildings and Improvements, Initial Cost	1,566
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,613
Accumulated Depreciation	137
Daytona Beach, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	443
Buildings and Improvements, Initial Cost	1,586
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,029
Accumulated Depreciation	137
Osmond Beach, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	854
Buildings and Improvements, Initial Cost	1,385
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,239
Accumulated Depreciation	117
Osmond Beach, FL II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	873
Buildings and Improvements, Initial Cost	2,235
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,108
Accumulated Depreciation	178
Inverness, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	867
Buildings and Improvements, Initial Cost	2,559
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,426
Accumulated Depreciation	210
Indian Harbour, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	914
Buildings and Improvements, Initial Cost	1,181
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,095
Accumulated Depreciation	138
Melbourne, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	772
Buildings and Improvements, Initial Cost	1,927
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,699
Accumulated Depreciation	158
St. Petersburg, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	803
Buildings and Improvements, Initial Cost	1,043
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,846
Accumulated Depreciation	86
Casselberry, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	609
Buildings and Improvements, Initial Cost	2,443
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,052
Accumulated Depreciation	195
Rocklodge, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	742
Buildings and Improvements, Initial Cost	1,126
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,868
Accumulated Depreciation	94
New Smyna Beach, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	244
Buildings and Improvements, Initial Cost	1,245
Land, Costs Capitalized Subsequent to Acquisition	(115)
Costs Capitalized Subsequent to Acquisition	(536)
Gross Amount	838
Accumulated Depreciation	104
New Port Richey, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	602
Buildings and Improvements, Initial Cost	1,104
Land, Costs Capitalized Subsequent to Acquisition	(330)
Costs Capitalized Subsequent to Acquisition	(554)
Gross Amount	822
Accumulated Depreciation	93
Tampa, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	356
Buildings and Improvements, Initial Cost	1,042
Land, Costs Capitalized Subsequent to Acquisition	(149)
Costs Capitalized Subsequent to Acquisition	(394)
Gross Amount	855
Accumulated Depreciation	103
Ocala, FL [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	347
Buildings and Improvements, Initial Cost	1,336
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,683
Accumulated Depreciation	151
Ocala, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	581
Buildings and Improvements, Initial Cost	1,091
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,672
Accumulated Depreciation	104
St. Petersburg, FL II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	211
Buildings and Improvements, Initial Cost	1,237
Land, Costs Capitalized Subsequent to Acquisition	(107)
Costs Capitalized Subsequent to Acquisition	(576)
Gross Amount	765
Accumulated Depreciation	103
Stone Mountain, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	605
Buildings and Improvements, Initial Cost	522
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,127
Accumulated Depreciation	43
Stone Mountain, GA [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	461
Buildings and Improvements, Initial Cost	475
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	936
Accumulated Depreciation	41
Lithonia, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	212
Buildings and Improvements, Initial Cost	770
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	982
Accumulated Depreciation	64
Union City, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	400
Buildings and Improvements, Initial Cost	542
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	942
Accumulated Depreciation	48
Peachtree City, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	887
Buildings and Improvements, Initial Cost	2,242
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,129
Accumulated Depreciation	188
Stockbridge, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	358
Buildings and Improvements, Initial Cost	760
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,118
Accumulated Depreciation	66
Morrow, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	400
Buildings and Improvements, Initial Cost	1,759
Land, Costs Capitalized Subsequent to Acquisition	(74)
Costs Capitalized Subsequent to Acquisition	(301)
Gross Amount	1,784
Accumulated Depreciation	139
Marietta, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,168
Buildings and Improvements, Initial Cost	1,169
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,337
Accumulated Depreciation	103
Marietta, GA II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,087
Buildings and Improvements, Initial Cost	2,056
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,143
Accumulated Depreciation	159
Thomson, GA [Member] | Sun Trust Bank I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	480
Buildings and Improvements, Initial Cost	1,015
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,495
Accumulated Depreciation	177
Thomson, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	91
Buildings and Improvements, Initial Cost	719
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	810
Accumulated Depreciation	66
Savannah, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	224
Buildings and Improvements, Initial Cost	1,116
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,340
Accumulated Depreciation	91
Savannah, GA II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	458
Buildings and Improvements, Initial Cost	936
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,394
Accumulated Depreciation	92
Albany, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	260
Buildings and Improvements, Initial Cost	531
Land, Costs Capitalized Subsequent to Acquisition	(25)
Costs Capitalized Subsequent to Acquisition	(45)
Gross Amount	721
Accumulated Depreciation	61
Sylvester, GA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	242
Buildings and Improvements, Initial Cost	845
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,087
Accumulated Depreciation	72
Annapolis, MD [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,331
Buildings and Improvements, Initial Cost	1,655
Land, Costs Capitalized Subsequent to Acquisition	(1,739)
Costs Capitalized Subsequent to Acquisition	(803)
Gross Amount	2,444
Accumulated Depreciation	117
Cambridge, MD [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,130
Buildings and Improvements, Initial Cost	1,265
Land, Costs Capitalized Subsequent to Acquisition	(187)
Costs Capitalized Subsequent to Acquisition	(194)
Gross Amount	2,014
Accumulated Depreciation	92
Avondale, MD [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,760
Buildings and Improvements, Initial Cost	485
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,245
Accumulated Depreciation	42
Asheboro, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	458
Buildings and Improvements, Initial Cost	774
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,232
Accumulated Depreciation	68
Bessemer City, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	212
Buildings and Improvements, Initial Cost	588
Land, Costs Capitalized Subsequent to Acquisition	(47)
Costs Capitalized Subsequent to Acquisition	(119)
Gross Amount	634
Accumulated Depreciation	49
Charlotte, NC II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	563
Buildings and Improvements, Initial Cost	750
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,313
Accumulated Depreciation	67
Dunn, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	384
Buildings and Improvements, Initial Cost	616
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,000
Accumulated Depreciation	57
Durham, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	488
Buildings and Improvements, Initial Cost	742
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,230
Accumulated Depreciation	60
Durham, NC II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	284
Buildings and Improvements, Initial Cost	506
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	790
Accumulated Depreciation	51
Hendersonville, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	468
Buildings and Improvements, Initial Cost	945
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,413
Accumulated Depreciation	79
Lenoir, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,021
Buildings and Improvements, Initial Cost	3,980
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	5,001
Accumulated Depreciation	302
Lexington, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	129
Buildings and Improvements, Initial Cost	266
Land, Costs Capitalized Subsequent to Acquisition	(18)
Costs Capitalized Subsequent to Acquisition	(33)
Gross Amount	344
Accumulated Depreciation	34
Mebane, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	500
Buildings and Improvements, Initial Cost	887
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,387
Accumulated Depreciation	71
Oxford, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	530
Buildings and Improvements, Initial Cost	1,727
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,257
Accumulated Depreciation	133
Rural Hall, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	158
Buildings and Improvements, Initial Cost	193
Land, Costs Capitalized Subsequent to Acquisition	(61)
Costs Capitalized Subsequent to Acquisition	(67)
Gross Amount	223
Accumulated Depreciation	20
Winston-Salem, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	362
Buildings and Improvements, Initial Cost	513
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	875
Accumulated Depreciation	45
Yadkinville, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	438
Buildings and Improvements, Initial Cost	765
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,203
Accumulated Depreciation	61
Greenville, SC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	377
Buildings and Improvements, Initial Cost	871
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,248
Accumulated Depreciation	73
Greenville, SC [Member] | Bi-Lo I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,504
Buildings and Improvements, Initial Cost	4,770
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	6,274
Accumulated Depreciation	363
Greenville, SC II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	264
Buildings and Improvements, Initial Cost	684
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	948
Accumulated Depreciation	58
Greenville, SC III [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	590
Buildings and Improvements, Initial Cost	1,007
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,597
Accumulated Depreciation	89
Greenville, SC IV [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	449
Buildings and Improvements, Initial Cost	1,640
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,089
Accumulated Depreciation	168
Nashville, TN II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,776
Buildings and Improvements, Initial Cost	1,601
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,377
Accumulated Depreciation	148
Brentwood, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	885
Buildings and Improvements, Initial Cost	1,987
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,872
Accumulated Depreciation	160
Brentwood, TN II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	996
Buildings and Improvements, Initial Cost	1,536
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,532
Accumulated Depreciation	126
Smyrna, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	501
Buildings and Improvements, Initial Cost	767
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,268
Accumulated Depreciation	71
Murfeesboro, TN II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	262
Buildings and Improvements, Initial Cost	182
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	444
Accumulated Depreciation	21
Soddy Daisy, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	338
Buildings and Improvements, Initial Cost	624
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	962
Accumulated Depreciation	49
Signal Mountain, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	296
Buildings and Improvements, Initial Cost	697
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	993
Accumulated Depreciation	57
Chattanooga, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	419
Buildings and Improvements, Initial Cost	811
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,230
Accumulated Depreciation	65
Kingsport, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	162
Buildings and Improvements, Initial Cost	260
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	422
Accumulated Depreciation	24
Loudon, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	331
Buildings and Improvements, Initial Cost	541
Land, Costs Capitalized Subsequent to Acquisition	(38)
Costs Capitalized Subsequent to Acquisition	(56)
Gross Amount	778
Accumulated Depreciation	45
Morristown, TN [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	214
Buildings and Improvements, Initial Cost	444
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	658
Accumulated Depreciation	51
Richmond, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	153
Buildings and Improvements, Initial Cost	313
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	466
Accumulated Depreciation	31
Richmond, VA II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	233
Buildings and Improvements, Initial Cost	214
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	447
Accumulated Depreciation	21
Fairfax, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,835
Buildings and Improvements, Initial Cost	1,081
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,916
Accumulated Depreciation	86
Lexington, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	122
Buildings and Improvements, Initial Cost	385
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	507
Accumulated Depreciation	36
Roanoke, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	316
Buildings and Improvements, Initial Cost	734
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,050
Accumulated Depreciation	60
Williamsburg, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	447
Buildings and Improvements, Initial Cost	585
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,032
Accumulated Depreciation	55
Onancock, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	829
Buildings and Improvements, Initial Cost	1,300
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,129
Accumulated Depreciation	99
Accomac, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	149
Buildings and Improvements, Initial Cost	128
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	277
Accumulated Depreciation	10
Painter, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	89
Buildings and Improvements, Initial Cost	259
Land, Costs Capitalized Subsequent to Acquisition	(14)
Costs Capitalized Subsequent to Acquisition	(37)
Gross Amount	297
Accumulated Depreciation	24
Stafford, VA [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,130
Buildings and Improvements, Initial Cost	1,714
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,844
Accumulated Depreciation	138
Roanoke, VA II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	753
Buildings and Improvements, Initial Cost	1,165
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,918
Accumulated Depreciation	99
Melbourne, FL II [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	788
Buildings and Improvements, Initial Cost	1,888
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,676
Accumulated Depreciation	149
Raleigh, NC [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	629
Buildings and Improvements, Initial Cost	1,581
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,210
Accumulated Depreciation	118
Richmond, VA III [Member] | SunTrust Bank III [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,141
Buildings and Improvements, Initial Cost	7,441
Land, Costs Capitalized Subsequent to Acquisition	(706)
Costs Capitalized Subsequent to Acquisition	(1,517)
Gross Amount	8,359
Accumulated Depreciation	692
Luke Mary, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,911
Buildings and Improvements, Initial Cost	2,849
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	4,760
Accumulated Depreciation	226
Bayonet Point, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	528
Buildings and Improvements, Initial Cost	1,172
Land, Costs Capitalized Subsequent to Acquisition	(257)
Costs Capitalized Subsequent to Acquisition	(524)
Gross Amount	919
Accumulated Depreciation	97
St. Augustine, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	489
Buildings and Improvements, Initial Cost	2,129
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,618
Accumulated Depreciation	168
Deltona, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	631
Buildings and Improvements, Initial Cost	1,512
Land, Costs Capitalized Subsequent to Acquisition	(300)
Costs Capitalized Subsequent to Acquisition	(655)
Gross Amount	1,188
Accumulated Depreciation	132
Spring Hill, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	673
Buildings and Improvements, Initial Cost	2,550
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,223
Accumulated Depreciation	197
Pembroke Pines, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,688
Buildings and Improvements, Initial Cost	548
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,236
Accumulated Depreciation	56
Palm Coast, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	447
Buildings and Improvements, Initial Cost	1,548
Land, Costs Capitalized Subsequent to Acquisition	(218)
Costs Capitalized Subsequent to Acquisition	(691)
Gross Amount	1,086
Accumulated Depreciation	130
Clearwater, FL [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	783
Buildings and Improvements, Initial Cost	1,936
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,719
Accumulated Depreciation	149
Ocala, FL II [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	559
Buildings and Improvements, Initial Cost	750
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,309
Accumulated Depreciation	80
Chamblee, GA [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,029
Buildings and Improvements, Initial Cost	813
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,842
Accumulated Depreciation	72
Madison, GA [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	304
Buildings and Improvements, Initial Cost	612
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	916
Accumulated Depreciation	47
Prince Frederick, MD [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,431
Buildings and Improvements, Initial Cost	940
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	3,371
Accumulated Depreciation	83
Roxboro, NC [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	234
Buildings and Improvements, Initial Cost	1,100
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,334
Accumulated Depreciation	84
Liberty, SC [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	254
Buildings and Improvements, Initial Cost	911
Land, Costs Capitalized Subsequent to Acquisition	(145)
Costs Capitalized Subsequent to Acquisition	(478)
Gross Amount	542
Accumulated Depreciation	72
Johnson City, TN [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	174
Buildings and Improvements, Initial Cost	293
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	467
Accumulated Depreciation	32
Gloucester, VA [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	154
Buildings and Improvements, Initial Cost	2,281
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	2,435
Accumulated Depreciation	177
Collinsville, VA [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	215
Buildings and Improvements, Initial Cost	555
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	770
Accumulated Depreciation	47
Stuart, VA [Member] | SunTrust Bank IV [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	374
Buildings and Improvements, Initial Cost	1,532
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,906
Accumulated Depreciation	122
Deville, LA [Member] | Dollar General XVIII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	93
Buildings and Improvements, Initial Cost	741
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	834
Accumulated Depreciation	61
Holland, MI [Member] | Matress Firm I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	507
Buildings and Improvements, Initial Cost	1,014
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,521
Accumulated Depreciation	93
Bridgewater, NJ [Member] | Sanofi US I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	125,000
Land, Initial Cost	16,009
Buildings and Improvements, Initial Cost	194,287
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	210,296
Accumulated Depreciation	14,315
Hornbeck, LA [Member] | Dollar General XVII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	82
Buildings and Improvements, Initial Cost	780
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	862
Accumulated Depreciation	64
Fannettsburg, PA [Member] | Family Dollar IX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	165
Buildings and Improvements, Initial Cost	803
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	968
Accumulated Depreciation	64
Saginaw, MI [Member] | Matress Firm I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	337
Buildings and Improvements, Initial Cost	1,140
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,477
Accumulated Depreciation	99
Bristol, RI [Member] | Stop & Shop I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,715
Land, Initial Cost	2,860
Buildings and Improvements, Initial Cost	10,010
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	12,870
Accumulated Depreciation	743
Cumberland, RI [Member] | Stop & Shop I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,295
Buildings and Improvements, Initial Cost	13,693
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	16,988
Accumulated Depreciation	1,044
Framingham, MA [Member] | Stop & Shop I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	8,572
Land, Initial Cost	3,971
Buildings and Improvements, Initial Cost	12,289
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	16,260
Accumulated Depreciation	851
Hyde Park, NY [Member] | Stop & Shop I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,154
Buildings and Improvements, Initial Cost	10,646
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	13,800
Accumulated Depreciation	787
Malden, MA [Member] | Stop & Shop I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	11,752
Land, Initial Cost	4,418
Buildings and Improvements, Initial Cost	15,195
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	19,613
Accumulated Depreciation	1,048
Sicklerville, NJ [Member] | Stop & Shop I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	2,367
Buildings and Improvements, Initial Cost	9,873
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	12,240
Accumulated Depreciation	711
Southington, CT [Member] | Stop & Shop I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	3,238
Buildings and Improvements, Initial Cost	13,169
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	16,407
Accumulated Depreciation	960
Swampscott, M [Member] | Stop & Shop I [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	10,232
Land, Initial Cost	3,644
Buildings and Improvements, Initial Cost	12,982
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	16,626
Accumulated Depreciation	894
Forest HIll, LA [Member] | Dollar General XVII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	83
Buildings and Improvements, Initial Cost	728
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	811
Accumulated Depreciation	59
Chelsea, OK [Member] | Dollar General XIX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	231
Buildings and Improvements, Initial Cost	919
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,150
Accumulated Depreciation	81
Brookhaven, MS [Member] | Dollar General XX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	186
Buildings and Improvements, Initial Cost	616
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	802
Accumulated Depreciation	49
Columbus, MS [Member] | Dollar General XX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	370
Buildings and Improvements, Initial Cost	491
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	861
Accumulated Depreciation	44
Forest, MS [Member] | Dollar General XX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	72
Buildings and Improvements, Initial Cost	856
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	928
Accumulated Depreciation	64
Rolling Fork, MS [Member] | Dollar General XX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	244
Buildings and Improvements, Initial Cost	929
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,173
Accumulated Depreciation	71
West Point, MS [Member] | Dollar General XX [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	318
Buildings and Improvements, Initial Cost	506
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	824
Accumulated Depreciation	48
Huntington, WV [Member] | Dollar General XXI [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	101
Buildings and Improvements, Initial Cost	1,101
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,202
Accumulated Depreciation	91
Warren, IN [Member] | Dollar General XXII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	88
Buildings and Improvements, Initial Cost	962
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	1,050
Accumulated Depreciation	67
Sioux City, IA [Member] | FedEx Ground V [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	199
Buildings and Improvements, Initial Cost	5,639
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	5,838
Accumulated Depreciation	137
Grand Forks, ND [Member] | FedEx Ground VI [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	1,287
Buildings and Improvements, Initial Cost	8,988
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	10,275
Accumulated Depreciation	247
Eagle River, WI [Member] | FedEx Ground VII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	40
Buildings and Improvements, Initial Cost	6,022
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	6,062
Accumulated Depreciation	157
Wausau, WI [Member] | FedEx Ground VIII [Member]
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land, Initial Cost	202
Buildings and Improvements, Initial Cost	9,017
Land, Costs Capitalized Subsequent to Acquisition	0
Costs Capitalized Subsequent to Acquisition	0
Gross Amount	9,219
Accumulated Depreciation	$ 250

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Real Estate and Accumulated Depreciation - Schedule III (Changes in Real Estate Properties and Accumulated Depreciation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Real estate investments, at cost:
Balance at beginning of year	$ 1,899,099	$ 1,899,099	$ 1,016,599
Additions - acquisitions	31,392	0	882,500
Disposals	(31,547)	0	0
Impairment charges	(24,661)	0	0
Reclassified to assets held for sale	(150,025)	0	0
Balance at end of the year	1,724,258	1,899,099	1,899,099
Accumulated depreciation:
Balance at beginning of year	141,594	74,648	12,077
Depreciation expense	66,831	66,946	62,571
Disposals	(1,018)	0	0
Reclassified to assets held for sale	(23,970)	0	0
Balance at end of the year	$ 183,437	$ 141,594	$ 74,648

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Mortgage Loans on Real Estate - Schedule IV (Details) - Senior Loans [Member]	12 Months Ended
	Dec. 31, 2016 USD ($)
Mortgage Loans on Real Estate [Line Items]
Par Value	$ 17,200,000
Carrying Amount	17,175,000
Student Housing - Multifamily [Member]
Mortgage Loans on Real Estate [Line Items]
Par Value	17,200,000
Carrying Amount	$ 17,175,000
London Interbank Offered Rate (LIBOR) [Member] | Student Housing - Multifamily [Member]
Mortgage Loans on Real Estate [Line Items]
Interest Rate	4.50%