Document

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 6, 2019

American Finance Trust, Inc.

(Exact Name of Registrant as Specified in Charter)



Maryland	001-38597	90-0929989
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

405 Park Avenue, 3rd Floor

New York, New York 10022

___________________________________________________________________________________________________________________________________________________________________________

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

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

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



☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Securities registered pursuant to section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 par value	AFIN	The Nasdaq Global Select Market
7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value	AFINP	The Nasdaq Global Select Market

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

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition.

On November 6, 2019, American Finance Trust, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended September 30, 2019, and supplemental financial information for the quarter ended September 30, 2019, attached hereto as Exhibits 99.1 and 99.2, respectively.

Item 7.01. Regulation FD Disclosure.

Press Release and Supplemental Information

As disclosed in Item 2.02 above, on November 6, 2019, the Company issued a press release announcing its results of operations for the quarter ended September 30, 2019, and supplemental financial information for the quarter ended September 30, 2019, attached hereto as Exhibits 99.1 and 99.2, respectively. The information set forth in Item 7.01 of this Current Report on Form 8-K and in the attached Exhibits 99.1 and 99.2 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information set forth in Items 2.02 and 7.01 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing.

The statements in this Current Report on Form 8-K include statements regarding the intent, belief or current expectations of the Company and members of its 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,” “strives,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements, including as a result of those factors set forth in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2018 filed on March 7, 2019 and all other filings with the Securities and Exchange Commission after that date. Forward-looking statements speak only as of the date they are made, and the Company undertakes 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, or revise forward-looking unless required by law.

Item 9.01. Financial Statements and Exhibits.



Exhibit No.		Description
99.1		Press release dated November 6, 2019

99.2		Quarterly supplemental information for the quarter ended September 30, 2019

104		Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL Document.

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



	AMERICAN FINANCE TRUST, INC.

	By:	/s/ Edward M. Weil, Jr.
		Edward M. Weil, Jr.
		Chief Executive Officer and President (Principal Executive Officer)

Dated: November 6, 2019

FOR IMMEDIATE RELEASE

AMERICAN FINANCE TRUST ANNOUNCES THIRD QUARTER 2019 RESULTS

New York, November 6, 2019 - American Finance Trust, Inc. (Nasdaq: AFIN) (“AFIN” or the “Company”), a real estate investment trust focused on acquiring and managing a diversified portfolio of primarily service-oriented¹² and traditional retail and distribution related commercial real estate properties in the U.S., announced today its financial and operating results for the third quarter ended September 30, 2019.

Third Quarter 2019 Highlights

Revenue was $72.9 million, down 3% compared to $74.9 million for the third quarter 2018

Net loss attributable to common stockholders was $2.9 million, or $0.03 per diluted share, compared to a net loss of $27.2 million, or $0.26 per diluted share, for the third quarter 2018

Funds from Operations (“FFO”) was $25.0 million, or $0.24 per diluted share up $0.17 per share from $7.9 million, or $0.07 per diluted share, for the third quarter 2018

Adjusted Funds from Operations (“AFFO”) was $23.4 million, or $0.22 on a per share basis, compared to $24.9 million or $0.24 on a per share basis, in the prior year third quarter

Cash net operating income (“NOI”) grew by 4% to $55.2 million compared to $53.0 million for the third quarter 2018

Closed on the acquisition of 69 properties for $178.8 million¹ at a 7.2% weighted average cash capitalization rate⁴ and a weighted-average capitalization rate² of 7.7%

Closed acquisitions increase annualized straight-line rent³ by $13.6 million which, due to closings at the end of the third quarter, will have full impact in fourth quarter 2019

Over $360.0 million in year to date acquisitions at a weighted average cash capitalization⁴ rate of 7.2% and a weighted average capitalization rate of 8.0% with 12.8 years of average remaining lease term⁵

Liquidity⁶ of $255.4 million to be used for future acquisitions to the extent available

Total multi-tenant occupancy increased to 89.1%⁷ from 85.1% in the prior quarter and executed occupancy⁸ grew to 90.2% from 88.0% in prior quarter

74.6% of tenants in single-tenant portfolio and 38.5% of anchor tenants⁹ in multi-tenant portfolio rated as investment grade or implied investment grade¹⁰

Annual rent escalators¹¹ averaging 1.3% per year in 81.0% of leases provide contractually embedded rent growth

Michael Weil, Chief Executive Officer, commented, “We produced another quarter of strong growth as we continued to execute on our acquisition and leasing strategy. We closed on $179 million of primarily service retail acquisitions, including a $143 million dialysis portfolio, in which 88% of the annualized straight-line rent is guaranteed by either DaVita or Fresenius, two industry leading publicly traded companies. These acquisitions added $14 million to our annualized straight-line rent and the full benefit of these acquisitions will impact earnings in the fourth quarter. Combined with ongoing leasing in the multi-tenant portfolio, our portfolio occupancy increased by 180 bps over the prior quarter, including seasonal leases. Closed and pipeline acquisitions for the year stand at $419 million at a 7.2% weighted average cash cap rate and an 7.9% weighted average cap rate with almost 13 years of average remaining lease term. We look forward to realizing the full benefit of our late-quarter acquisitions as we continue building on our strong growth to close out the year.”

Financial Results



	Three Months Ended September 30,
(In thousands, except per share data)	2019			2018
Revenue from tenants	$	72,863		$	74,888

Net loss attributable to common stockholders	$	(2,931	)	$	(27,245	)
Net loss per common share ^(a)	$	(0.03	)	$	(0.26	)

FFO attributable to common stockholders	$	24,992		$	7,872
FFO per common share ^(a)	$	0.24		$	0.07

AFFO attributable to common stockholders	$	23,368		$	24,928
AFFO per common share ^(a)	$	0.22		$	0.24

(a) All per share data based on 106,139,668 and 105,905,281 diluted weighted-average shares outstanding for the three months ended September 30, 2019 and 2018, respectively.

Real Estate Portfolio

The Company’s portfolio consisted of 771 net lease properties located in 46 states and the District of Columbia and comprised 18.2 million rentable square feet as of September 30, 2019. Portfolio metrics include:

95.2% leased with 8.9 years remaining weighted-average lease term

81.0% of leases have contractual rent increases of 1.3% on average based on annualized straight-line rent

74.6% of single-tenant portfolio and 38.5% of multi-tenant portfolio anchor tenant annualized straight-line rent derived from investment grade or implied investment grade tenants

79% retail properties, 11% distribution properties and 10% office properties (based on an annualized straight-line rent)

71% of the retail portfolio focused on either service¹² or experiential retail¹³giving the company strong alignment with “e-commerce resistant” real estate

Property Acquisitions

During the three months ended September 30, 2019, the Company acquired 69 properties for an aggregate contract purchase price of $178.8 million at a weighted average capitalization rate of 7.7% of which 92% are leased to service retail tenants. Since 2017, 87% of all acquisitions have been properties leased to service retail tenants.

The Company’s acquisition pipeline as of October 15, 2019 includes 48 properties for an aggregate contract purchase price of $57.9 million. There can be no assurance that these acquisitions will be completed on their current terms, or at all.

Property Dispositions

The Company sold two properties during the third quarter of 2019 for $6.6 million, of which approximately $3.8 million was used to repay related mortgage debt.

Capital Structure and Liquidity Resources

As of September 30, 2019, the Company had a total borrowing capacity under its credit facility of $496.3 million. Of this amount, $317.7 million was outstanding under this facility as of September 30, 2019 and $178.6 million remained available for future borrowing¹⁴. As of September 30, 2019, the Company had $76.8 million of cash and cash equivalents. The Company’s net debt¹⁵ to gross asset value¹⁶ was 39.5%, with net debt of $1.6 billion.

The Company’s percentage of fixed rate debt was 80.6% as of September 30, 2019. The Company’s total combined debt had a weighted-average interest rate costof 4.5%¹⁷, resulting in an interest coverage ratio of 2.7 times¹⁸.

During the third quarter of 2019, the Company raised gross proceeds of $111.0 million from the Company’s underwritten offering of Series A Preferred Stock in September 2019 and sales through its Preferred Stock ATM program. Also, the Company sold 432,247 shares Class A common stock, generating gross proceeds of $6.1 million, through its Common Stock ATM program.

Footnotes/Definitions

¹Represents the contract purchase price and excludes capitalized acquisition costs per GAAP.

² Capitalization rate is a rate of return on a real estate investment property based on the expected, annualized straight-line rental income that the property will generate under its existing lease. Capitalization rate is calculated by dividing the annualized straight-lined rental income the property will generate (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property. The weighted-average capitalization rate is based upon square feet.

³Annualized straight-line rent is calculated using the most recent available lease terms as of September 30, 2019.

⁴Cash capitalization rate is a rate of return on a real estate investment property based on the expected, annualized cash rental income during the first year of ownership that the property will generate under its existing lease. For acquisitions, cash capitalization rate is calculated by dividing the annualized cash rental income the property will generate (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property.

⁵The weighted-average remaining lease term (years) is based on annualized straight-line rent as of September 30, 2019.

⁶Liquidity includes the amount available for future borrowings under the Company’s credit facility of $178.6 million and cash and cash equivalents. The $178.6 million is net of $2.7 million in letters of credit posted against the amount available for future borrowings as of September 30, 2019. In accordance with the Company's credit facility, the Company is permitted to pay distributions in an aggregate amount not exceeding 105% of Modified FFO for any applicable period (commencing with the period of two consecutive fiscal quarters ended on September 30, 2019) if, as of the last day of the period, the Company is able to satisfy a maximum leverage ratio after giving effect to the payments and also has a combination of cash, cash equivalents and amounts available for future borrowings under the credit facility of not less than $60.0 million. As of September 30, 2019, we satisfied these conditions.

⁷Approximately 1.6% of the increase was through new long term leases, while the other 2.3% came through seasonal leasing activity that we expect to be in place for parts of the third and fourth quarter.

⁸ Includes all leases where the tenant has taken possession as of September 30, 2019 as well as all leases executed by both parties as of September 30, 2019 where the tenant has yet to take possession as of such date.

⁹ Anchor tenants are defined as tenants that occupy over 10,000 square feet of one of the Company’s multi-tenant properties.

¹⁰ As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring a company’s probability of default. Ratings information is as of September 30, 2019. Single-tenant portfolio tenants are 45.8% actual investment grade rated and 28.8% implied investment grade rate. Anchor tenants in the multi-tenant portfolio are 23.3% actual investment grade rated and 15.2% implied investment grade rated.

¹¹Based on annualized straight-line rent as of September 30, 2019. Contractual rent increases include fixed percent or actual increases, or CPI-indexed increases.

¹² Service retail is defined as single-tenant retail properties leased to tenants in the retail banking, restaurant, grocery, pharmacy, gas/convenience, healthcare, and auto services sectors

¹³ Experiential retail is defined as multi-tenant properties leased to tenants in the restaurant, discount retail, entertainment, salon/beauty, and grocery sectors, among others.

¹⁴ The borrowing capacity and availability for future borrowings under the Company’s credit facility is based on the borrowing base thereunder, which is the pool of eligible otherwise unencumbered real estate assets as September 30, 2019.

¹⁵Total debt of $1.6 billion less cash and cash equivalents of $76.8 million as of September 30, 2019. Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of cash and cash equivalents.

¹⁶Defined as the carrying value of total assets plus accumulated depreciation and amortization as of September 30, 2019.

¹⁷ Weighted based on the outstanding principal balance of the debt.

¹⁸The interest coverage ratio is calculated by dividing adjusted EBITDA by cash paid for interest (interest expense less amortization of deferred financing costs, net, and change in accrued interest and amortization of mortgage premiums on borrowings) for the quarter ended September 30, 2019.

Webcast and Conference Call

AFIN will host a webcast and call on November 7, 2019 at 11:00 a.m. ET to discuss its financial and operating results. This webcast will be broadcast live over the Internet and can be accessed by all interested parties through the AFIN website, www.americanfinancetrust.com, in the “Investor Relations” section.

Dial-in instructions for the conference call and the replay are outlined below.

To listen to the live call, please go to AFIN’s “Investor Relations” section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the AFIN website at www.americanfinancetrust.com.

Dial-In (Toll Free): 1-888-317-6003

International Dial-In: 1-412-317-6061

Canada Dial-In (Toll Free): 1-866-605-3851

Participant Elite Entry Number: 7075377

Domestic Dial-In (Toll Free): 1-877-344-7529

International Dial-In: 1-412-317-0088

Canada Dial-In (Toll Free): 1-855-669-9658

Conference Number: 10136183

*Available one hour after the end of the conference call through February 7, 2020.

About American Finance Trust, Inc.

American Finance Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate investment trust listed on the Nasdaq focused on acquiring and managing a diversified portfolio of primarily service-oriented and traditional retail and distribution related commercial real estate properties in the U.S. Additional information about AFIN can be found on its website at www.americanfinancetrust.com.

Supplemental Schedules

The Company will file supplemental information packages with the Securities and Exchange Commission (the “SEC”) to provide additional disclosure and financial information. Once posted, the supplemental package can be found under the “Presentations” tab in the Investor Relations section of AFIN’s website at www.americanfinancetrust.com and on the SEC website at www.sec.gov.

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. Forward-looking statements may include, but are not limited to, statements regarding stockholder liquidity and investment value and returns. The words “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “may,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those contemplated by such forward-looking statements, including those set forth in the Risk Factors section of AFIN’s Annual Report on Form 10-K for the year ended December 31, 2018 filed on March 7, 2019 and all other filings with the SEC after that date, as such risks, uncertainties and other important factors may be updated from time to time in AFIN’s subsequent reports. Further, forward-looking statements speak only as of the date they are made, and AFIN undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law.

Investors and Media:

Email: investorrelations@americanfinancetrust.com

Phone: (866) 902-0063

American Finance Trust, Inc.

Consolidated Balance Sheets

(In thousands. except share and per share data)



	September 30, 2019			December 31, 2018
	(Unaudited)
ASSETS
Real estate investments, at cost:
Land	$	669,879		$	629,190
Buildings, fixtures and improvements	2,637,538			2,441,659
Acquired intangible lease assets	443,468			413,948
Total real estate investments, at cost	3,750,885			3,484,797
Less: accumulated depreciation and amortization	(502,215		)	(454,614		)
Total real estate investments, net	3,248,670			3,030,183
Cash and cash equivalents	76,838			91,451
Restricted cash	19,665			18,180
Deposits for real estate acquisitions	115			3,037
Goodwill	—			1,605
Deferred costs, net	17,063			16,222
Straight-line rent receivable	44,253			37,911
Operating lease right-of-use assets	19,083			—
Prepaid expenses and other assets	21,267			19,439
Assets held for sale	10,108			44,519
Total assets	$	3,457,062		$	3,262,547

LIABILITIES AND STOCKHOLDERS’ EQUITY
Mortgage notes payable, net	$	1,309,852		$	1,196,113
Credit facility	317,700			324,700
Below market lease liabilities, net	83,308			89,938
Accounts payable and accrued expenses (including $958 and $2,634 due to related parties as of September 30, 2019 and December 31, 2018, respectively)	28,452			28,383
Operating lease liabilities	19,315			—
Derivative liabilities, at fair value	—			531
Deferred rent and other liabilities	9,952			13,067
Dividends payable	2,830			80
Total liabilities	1,771,409			1,652,812

7.50% Series A cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 6,796,000 shares authorized, 6,036,056 issued and outstanding as of September 30, 2019 and no shares issued and outstanding as of December 31, 2018	60			—
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 106,677,866 and 106,230,901 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	1,067			1,063
Additional paid-in capital	2,567,059			2,412,915
Accumulated other comprehensive loss	—			(531		)
Distributions in excess of accumulated earnings	(898,493		)	(812,047		)
Total stockholders’ equity	1,669,693			1,601,400
Non-controlling interests	15,960			8,335
Total equity	1,685,653			1,609,735
Total liabilities and equity	$	3,457,062		$	3,262,547

American Finance Trust, Inc.

Consolidated Statements of Operations (Unaudited)

(In thousands, except share and per share data)



	Three Months Ended September 30,
	2019			2018
Revenue from tenants	$	72,863		$	74,888

Operating expenses:
Asset management fees to related party	6,545			5,849
Property operating expense	12,398			13,497
Impairment of real estate investments	—			1,172
Acquisition, transaction and other costs ^[1]	489			1,549
Listing fees	—			4,988
Vesting and conversion of Class B Units	—			15,786
Equity-based compensation ^[2]	3,217			2,240
General and administrative	3,573			6,086
Depreciation and amortization	29,901			35,332
Total operating expenses	56,123			86,499
Operating income (loss) before gain on sale of real estate investments	16,740			(11,611		)
Gain on sale of real estate investments	1,933			1,328
Operating income (loss)	18,673			(10,283		)
Other income (expense):
Interest expense	(18,569		)	(17,017		)
Other income	48			9
Total other expense, net	(18,521		)	(17,008		)
Net income (loss)	152			(27,291		)
Net (income) loss attributable to non-controlling interests	(4		)	46
Preferred stock dividends	(3,079		)	—
Net loss attributable to common stockholders	$	(2,931	)	$	(27,245	)

Basic and Diluted Net Loss Per Share:
Net loss per share attributable to common stockholders — Basic and Diluted	$	(0.03	)	$	(0.26	)
Weighted-average shares outstanding — Basic and Diluted	106,139,668			105,905,281

[1] For the three months ended September 30, 2019, includes litigation costs related to AFIN’s 2017 merger with American Realty Capital - Retail Centers of America, Inc. (the “Merger”) of $0.2 million. For the three months ended September 30, 2018, includes litigation costs related to the Merger of $0.4 million that were previously classified as general and administrative expenses.

[2] For the three months ended September 30, 2019, includes expense related to the Company’s restricted common shares of $0.3 million. For the three months ended September 30, 2018, includes expense related to the Company’s restricted common shares of $0.1 million that was previously classified as general and administrative expenses.

American Finance Trust, Inc.

Quarterly Reconciliation of Non-GAAP Measures (Unaudited)



	Three Months Ended September 30,
	2019			2018
Adjusted EBITDA
Net income (loss)	$	152		$	(27,291	)
Depreciation and amortization	29,901			35,332
Interest expense	18,569			17,017
Impairment of real estate investments	—			1,172
Acquisition, transaction and other costs ^[1]	489			1,549
Listing fees	—			4,988
Vesting and conversion of Class B Units	—			15,786
Equity-based compensation ^[2]	3,217			2,240
Gain on sale of real estate investments	(1,933		)	(1,328		)
Other income	(48		)	(9		)
Adjusted EBITDA	50,347			49,456
Asset management fees to related party	6,545			5,849
General and administrative	3,573			6,086
NOI	60,465			61,391
Amortization of market lease and other intangibles, net	(2,503		)	(5,766		)
Straight-line rent	(2,716		)	(2,589		)
Cash NOI	$	55,246		$	53,036

Cash Paid for Interest:
Interest expense	$	18,569		$	17,017
Amortization of deferred financing costs, net and change in accrued interest	(725		)	(1,734		)
Amortization of mortgage premiums on borrowings	839			857
Total cash paid for interest	$	18,683		$	16,140

[1] For the three months ended September 30, 2019. includes litigation costs related to the Merger of $0.2 million. For the three months ended September 30, 2018, includes litigation costs related to the Merger of $0.4 million that were previously classified as general and administrative expenses.

American Finance Trust, Inc.

Quarterly Reconciliation of Non-GAAP Measures (Unaudited)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net (loss) income attributable to common stockholders (in accordance with GAAP)	$	(2,931	)	$	(27,245	)	$	1,726		$	(23,885	)
Impairment of real estate investments	—			1,172			827			10,057
Depreciation and amortization	29,901			35,332			92,911			107,269
Gain on sale of real estate investments	(1,933		)	(1,328		)	(19,171		)	(29,590		)
Proportionate share of adjustments for non-controlling interest to arrive at FFO	(45		)	(59		)	(121		)	(161		)
FFO attributable to common stockholders ^[1]	24,992			7,872			76,172			63,690
Acquisition, transaction and other costs ^[2]	489			1,549			3,235			5,941
Litigation cost reimbursements related to the Merger ^[3]	—			—			(1,948		)	—
Listing fees	—			4,988			—			4,988
Vesting and conversion of Class B Units	—			15,786			—			15,786
Amortization of market lease and other intangibles, net	(2,503		)	(5,766		)	(6,065		)	(9,444		)
Straight-line rent	(2,716		)	(2,589		)	(5,478		)	(7,382		)
Amortization of mortgage premiums on borrowings	(839		)	(857		)	(2,472		)	(2,693		)
Mark-to-market adjustments	—			—			—			(72		)
Equity-based compensation ^[4]	3,217			2,240			9,506			2,331
Amortization of deferred financing costs, net and change in accrued interest	725			1,734			5,116			5,279
Goodwill impairment ^[5]	—			—			1,605			—
Proportionate share of adjustments for non-controlling interest to arrive at AFFO	3			(29		)	(3		)	(25		)
AFFO attributable to common stockholders ^[1]	$	23,368		$	24,928		$	79,668		$	78,399

[1] FFO and AFFO for the nine months ended September 30, 2019 includes income from a lease termination fee of $7.6 million, which is recorded in Revenue from tenants in the consolidated statements of operations. While such termination payments occur infrequently, they represent cash income for accounting and tax purposes and as such management believes they should be included in both FFO and AFFO, consistent with what we believe to be general industry practice.

[2] Primarily includes prepayment costs incurred in connection with early debt extinguishment as well as litigation costs related to the Merger which are included as an adjustment in the calculation above beginning in the fourth quarter of 2018, and were not presented as an adjustment in our or our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2018, June 30, 2018 and September 30, 2018.

[3] Included in "Other income" in the Company's consolidated statement of operations.

[4] Includes expense related to the amortization of the Company’s restricted common shares and LTIP Units related to its multi-year outperformance agreement, which were previously presented in separate lines within the table above.

This is a non-cash item and is added back as it is not considered indicative of operating performance.

Non-GAAP Financial Measures

This release includes non-GAAP financial measures, including Funds from Operations (“FFO”), Adjusted Funds from Operations (“AFFO”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Net Operating Income (“NOI”) and Cash Net Operating Income (“Cash NOI”). While NOI is a property-level measure, AFFO is based on our total performance and therefore reflects the impact of other items not specifically associated with NOI such as, interest expense, general and administrative expenses and operating fees to related parties. Additionally, NOI as defined here, includes an adjustment for straight-line rent which is excluded from AFFO. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net income, is provided below. Adjustments for unconsolidated partnerships and joint ventures are calculated to exclude the proportionate share of the non-controlling interest to arrive at FFO, AFFO and NOI attributable to stockholders.

Caution on Use of Non-GAAP Measures

FFO, AFFO, Adjusted EBITDA, NOI and Cash NOI 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 method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP measures.

Other REITs may not define FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”), an industry trade group, definition (as we do), or may interpret the current NAREIT definition differently than we do, or may calculate AFFO differently than we do. Consequently, our presentation of FFO and AFFO may not be comparable to other similarly titled measures presented by other REITs.

We consider FFO and AFFO useful indicators of our performance. Because FFO and AFFO calculations exclude such factors as depreciation and amortization of real estate assets and gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), FFO and AFFO presentations facilitate comparisons of operating performance between periods and between other REITs in our peer group.

As a result, we believe that the use of FFO and AFFO, together with the required GAAP presentations, provide a more complete understanding of our performance, including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. However, FFO and AFFO are not indicative of cash available to fund ongoing cash needs, including the ability to pay cash dividends. Investors are cautioned that FFO and AFFO should only be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred.

Funds from Operations and Adjusted Funds from Operations

Funds from Operations

Due to certain unique operating characteristics of real estate companies, as discussed below, the NAREIT, an industry trade group, has promulgated a performance measure known as FFO, which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. FFO is not equivalent to net income or loss as determined under GAAP.

We calculate FFO, a non-GAAP measure, consistent with the standards established over time by the Board of Governors of NAREIT, as restated in a White Paper and approved by the Board of Governors of NAREIT effective in December 2018 (the “White Paper”). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from sales of certain real estate assets, gain and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for consolidated partially-owned entities (including our Operating Partnership) and equity in earnings of unconsolidated affiliates are made to arrive at our proportionate share of FFO attributable to our stockholders. Our FFO calculation complies with NAREIT’s definition.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset diminishes predictably over time, especially if not adequately maintained or repaired and renovated as required by relevant circumstances or as requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that, because real estate values historically rise and fall with market conditions, including inflation, interest rates, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation and certain other items may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization, among other things, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income.

Adjusted Funds from Operations

effects of other activities that are not a fundamental attribute of our day to day operating business plan, such as amounts related to litigation arising out of the Merger. These amounts include legal costs incurred as a result of the litigation, portions of which have been and may in the future be reimbursed under insurance policies maintained by us. Insurance reimbursements are deducted from AFFO in the period of reimbursement. We believe that excluding the litigation costs and subsequent insurance reimbursements related to litigation arising out of the Merger helps to provide a better understanding of the operating performance of our business. Other income and expense items also include early extinguishment of debt and unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments and gains and losses on investments. In addition, by excluding non-cash income and expense items such as amortization of above-market and below-market leases intangibles, amortization of deferred financing costs, straight-line rent, vesting and conversion of the Class B Units and share-based compensation related to restricted shares and the 2018 OPP from AFFO, we believe we provide useful information regarding those income and expense items which have a direct impact on our ongoing operating performance. By providing AFFO, we believe we are presenting useful information that can be used to better assess the sustainability of our ongoing operating performance without the impact of transactions or other items that are not related to the ongoing performance of our portfolio of properties. AFFO presented by us may not be comparable to AFFO reported by other REITs that define AFFO differently.

In calculating AFFO, we exclude certain expenses which under GAAP are characterized as operating expenses in determining operating net income (loss). All paid and accrued merger, acquisition and transaction related fees and certain other expenses negatively impact our operating performance during the period in which expenses are incurred or properties are acquired will also have negative effects on returns to investors but are not reflective of our on-going performance. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income (loss). In addition, as discussed above, we view gains and losses from fair value adjustments as items which are unrealized and may not ultimately be realized and not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. Excluding income and expense items detailed above from our calculation of AFFO provides information consistent with management’s analysis of our operating performance. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe AFFO provides useful supplemental information. We believe that in order to facilitate a clear understanding of our operating results, AFFO should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. AFFO should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or ability to pay dividends.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income and Cash Net Operating Income.

We believe that Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for acquisition and transaction-related expenses, fees related to the Listing, other non-cash items such as the vesting and conversion of the Class B Units, expense related to our multi-year outperformance agreement with the Advisor and including our pro-rata share from unconsolidated joint ventures, is an appropriate measure of our ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other REITs may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other REITs.

NOI is a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues, excluding contingent purchase price consideration, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). We believe NOI provides useful and relevant information because it reflects only those income and expense items that are incurred at the property level and presents such items on an unleveraged basis. We use NOI to assess and compare property level performance and to make decisions concerning the operations of the properties. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability to pay dividends.

Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI excluding amortization of above/below market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison of our operating performance between periods and to other REITs. Cash NOI should not be considered as an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other REITs present Cash NOI.

American Finance Trust, Inc.

Supplemental Information

Quarter ended September 30, 2019 (unaudited)



American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2019 (Unaudited)



Table of Contents

Item		Page
Non-GAAP Definitions		3
Key Metrics		6
Consolidated Balance Sheets		8
Consolidated Statements of Operations		9
Non-GAAP Measures		10
Debt Overview		12
Future Minimum Lease Rents		13
Top Ten Tenants		14
Diversification by Property Type		15
Diversification by Geography		16
Lease Expirations		17

Please note that totals may not add due to rounding.

Forward-looking Statements:

This supplemental package includes “forward looking statements”. Forward-looking statements may be identified by the use of words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the factors included in (i) the Annual Report on Form 10-K for the year ended December 31, 2018 of American Finance Trust, Inc. (the “Company”) filed on March 7, 2019, including those set forth under the headings “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” and (ii) in future periodic reports filed by the Company under the Securities Exchange Act of 1934, as amended. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. For a further discussion of these and other factors that could impact the Company’s future results, performance or transactions, see the section entitled “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2018 filed on March 7, 2019, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).



American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2019 (Unaudited)

Non-GAAP Financial Measures

This section includes non-GAAP financial measures, including Funds from Operations ("FFO"), Adjusted Funds from Operations ("AFFO"), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA"), Net Operating Income ("NOI") and Cash Net Operating Income ("Cash NOI"). While NOI is a property-level measure, AFFO is based on total Company performance and therefore reflects the impact of other items not specifically associated with NOI such as, interest expense, general and administrative expenses and operating fees to related parties. Additionally, NOI as defined here, includes an adjustment for straight-line rent which is excluded from AFFO. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net income (loss), is provided below. Adjustments for unconsolidated partnerships and joint ventures are calculated to exclude the proportionate share of the non-controlling interest to arrive at FFO, AFFO and NOI attributable to stockholders.

Caution on Use of Non-GAAP Measures

Other REITs may not define FFO in accordance with the current National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, definition (as we do), or may interpret the current NAREIT definition differently than we do, or may calculate AFFO differently than we do. Consequently, our presentation of FFO and AFFO may not be comparable to other similarly-titled measures presented by other REITs.

Funds from Operations and Adjusted Funds from Operations

Funds from Operations

Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated a performance measure known as FFO, which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. FFO is not equivalent to net income or loss as determined under GAAP.



American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2019 (Unaudited)

Adjusted Funds from Operations

In calculating AFFO, we start with FFO, then we exclude certain income or expense items from AFFO that we consider to be more reflective of investing activities, such as fees related to the Listing, non-cash income and expense items and the income and expense effects of other activities that are not a fundamental attribute of our day to day operating business plan, such as amounts related to litigation arising out of AFIN's 2017 merger with American Realty Capital - Retail Centers of America, Inc. (the "Merger"). These amounts include legal costs incurred as a result of the litigation, portions of which have been and may in the future be reimbursed under insurance policies maintained by us. Insurance reimbursements are deducted from AFFO in the period of reimbursement. We believe that excluding the litigation costs and subsequent insurance reimbursements related to litigation arising out of the Merger helps to provide a better understanding of the operating performance of our business. Other income and expense items also include early extinguishment of debt and unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments and gains and losses on investments. In addition, by excluding non-cash income and expense items such as amortization of above-market and below-market leases intangibles, amortization of deferred financing costs, straight-line rent, vesting and conversion of Class B Units and share-based compensation related to restricted shares and the multi-year outperformance agreement from AFFO, we believe we provide useful information regarding those income and expense items which have a direct impact on our ongoing operating performance. By providing AFFO, we believe we are presenting useful information that can be used to better assess the sustainability of our ongoing operating performance without the impact of transactions or other items that are not related to the ongoing performance of our portfolio of properties. AFFO presented by us may not be comparable to AFFO reported by other REITs that define AFFO differently.

In calculating AFFO, we exclude certain expenses which under GAAP are characterized as operating expenses in determining operating net income (loss). All paid and accrued merger, acquisition and transaction related fees and certain other expenses negatively impact our operating performance during the period in which expenses are incurred or properties are acquired will also have negative effects on returns to investors but are not reflective of our on-going performance. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income (loss). In addition, as discussed above, we view gains and losses from fair value adjustments as items which are unrealized and may not ultimately be realized and not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. Excluding income and expense items detailed above from our calculation of AFFO provides information consistent with management's analysis of our operating performance. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe AFFO provides useful supplemental information. We believe that in order to facilitate a clear understanding of our operating results, AFFO should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. AFFO should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or ability to pay dividends.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income and Cash Net Operating Income.

NOI is a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues, excluding contingent purchase price consideration, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). We believe NOI provides useful and relevant information because it reflects only those income and expense items that are incurred at the property level and presents such items on an unleveraged basis. We use NOI to assess and compare property level performance and to make decisions concerning the operations of the properties. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in order to provide results that are more closely related to a property's results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability to pay dividends.



American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2019 (Unaudited)



American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2019 (Unaudited)

As of and for the three months ended September 30, 2019



Financial Results (Amounts in thousands, except per share data)
Revenue from tenants	$	72,863
Net income attributable to common stockholders	$	(2,931	)
Basic and diluted net income per share attributable to common stockholders	$	(0.03	)
Cash NOI ^[1]	$	55,246
Adjusted EBITDA ^[1]	$	50,347
AFFO attributable to common stockholders ^[1]	$	23,368
Dividends declared ^[2]	$	29,212

Balance Sheet and Capitalization (Amounts in thousands, except ratios and percentages)
Gross asset value^[3]	$	3,959,277
Net debt ^{[4] [5]}	$	1,562,591
Total consolidated debt ^[5]	$	1,639,429
Total assets	$	3,457,062
Liquidity ^[6]	$	255,440

Common shares outstanding as of September 30, 2019	106,678

Net debt to gross asset value	39.5		%
Net debt to adjusted EBITDA ^[1] (annualized based on quarterly results)	7.8		x

Weighted-average interest rate cost ^[7]	4.5		%
Weighted-average debt maturity (years) ^[8]	3.9
Interest Coverage Ratio ^[9]	2.7		x



Real Estate Portfolio	Single-Tenant Portfolio			Multi-Tenant Portfolio			Total Portfolio
Portfolio Metrics:
Real estate investments, at cost (in billions)	$	2.3		$	1.5		$	3.8
Number of properties	738			33			771
Square footage (in millions)	11.0			7.2			18.2
Annualized straight-line rent (in millions)^[10]	$	175.0		$	89.0		$	264.0
Annualized straight-line rent per leased square foot	$	16.0		$	13.9		$	15.2
Occupancy ^[11]	99.3		%	89.1		%	95.2		%
Weighted-average remaining lease term (years) ^[12]	10.9			4.9			8.9
% investment grade ^[13]	74.6		%	—		%	N/A
% of anchor tenants in multi-tenant portfolio that are investment grade ^{[13] [14]}	—		%	38.5		%	N/A
% of leases with rent escalators ^[15]	88.1		%	67.0		%	81.0		%
Average annual rent escalator ^[15]	1.3		%	1.3		%	1.3		%

[1] This Non-GAAP metric is reconciled below.

[2] Represents dividends declared on shares of the Company’s common stock payable to holders of record on the applicable record date.

[3] Defined as total assets plus accumulated depreciation and amortization as of September 30, 2019.

[4] Represents total debt outstanding less cash and cash equivalents.

[5] Excludes the effect of deferred financing costs, net and mortgage premiums, net.

[6] Liquidity includes the amount available for future borrowings under the Company's credit facility of $178.6 million and cash and cash equivalents. The $178.6 million is net of $2.7 million in letters of credit posted against the amount available for future borrowings as of September 30, 2019. In accordance with the Company's credit facility, the Company is permitted to pay distributions in an aggregate amount not exceeding 105% of Modified FFO for any applicable period (commencing with the period of two consecutive fiscal quarters ended on September 30, 2019) if, as of the last day of the period, the Company is able to satisfy a maximum leverage ratio after giving effect to the payments and also has a combination of cash, cash equivalents and amounts available for future borrowings under the credit facility of not less than $60.0 million. As of September 30, 2019, we satisfied these conditions.

[7] Weighted based on the outstanding principal balance of the debt as of September 30, 2019.

[8] Weighted based on the outstanding principal balance of the debt as of September 30, 2019 and does not reflect any changes to maturity dates subsequent to

September 30, 2019. The maturity date of the Company's credit facility was automatically extended from April 2020 to April 2022 upon the listing of the

Company's stock on the NASDAQ in July 2018. In addition, the Company has the right to extend the maturity date to April 2023.



American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2019 (Unaudited)

[9] The interest coverage ratio is calculated by dividing adjusted EBITDA by cash paid for interest (interest expense less amortization of deferred financing

costs, net, change in accrued interest and amortization of mortgage premiums on borrowings) for the quarter ended September 30, 2019.

Adjusted EBITDA and cash paid for interest are Non-GAAP metrics and are reconciled below.

[10] Calculated using the most recent available lease terms as of September 30, 2019.

[11] Only includes leases which have commenced and were taken possession by the tenant as of September 30, 2019.

[12] The weighted-average remaining lease term (years) is based on straight-line rent.

[13] As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring a company’s probability of default. Ratings information is as of September 30, 2019. The weighted averages are based on straight-line rent. Single-tenant portfolio tenants are 45.8% actual investment grade rated and 28.8% implied investment grade rated.

[14] Anchor tenants are defined as tenants that occupy over 10,000 square feet of one of the Company's multi-tenant properties. Anchor tenants are 23.3% actual



	Three Months Ended
	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenue from tenants	$	72,863		$	79,109		$	71,541		$	75,092

Operating expenses:
Asset management fees to related party	6,545			6,335			6,038			5,848
Property operating expense	12,398			13,137			12,836			14,059
Impairment of real estate investments	—			4			823			11,023
Acquisition, transaction and other costs ^[1]	489			1,892			854			1,616
Equity-based compensation ^[2]	3,217			3,268			3,021			2,935
General and administrative	3,573			6,441			6,061			5,876
Depreciation and amortization	29,901			30,924			32,086			32,638
Goodwill impairment	—			1,605			—			—
Total operating expenses	56,123			63,606			61,719			73,995
Operating income (loss) before gain on sale of real estate investments	16,740			15,503			9,822			1,097
Gain on sale of real estate investments	1,933			14,365			2,873			2,186
Operating income (loss)	18,673			29,868			12,695			3,283
Other (expense) income:
Interest expense	(18,569		)	(21,995		)	(18,440		)	(17,623		)
Other income	48			667			2,545			794
Total other expense, net	(18,521		)	(21,328		)	(15,895		)	(16,829		)
Net income (loss)	152			8,540			(3,200		)	(13,546		)
Net (income) loss attributable to non-controlling interests	(4		)	(14		)	3			22
Preferred stock dividends	(3,079		)	(642		)	(30		)	—
Net income (loss) attributable to common stockholders	$	(2,931	)	$	7,884		$	(3,227	)	$	(13,524	)

Basic and Diluted Net Loss Per Share:
Net income (loss) per share attributable to common stockholders — Basic and Diluted	$	(0.03	)	$	0.07		$	(0.03	)	$	(0.13	)
Weighted-average shares outstanding — Basic	106,139,668			106,075,741			106,076,588			106,096,401
Weighted-average shares outstanding — Diluted	106,139,668			106,394,277			106,076,588			106,096,401



	Three Months Ended
	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
EBITDA:
Net income (loss)	$	152		$	8,540		$	(3,200	)	$	(13,546	)
Depreciation and amortization	29,901			30,924			32,086			32,638
Interest expense	18,569			21,995			18,440			17,623
EBITDA ^[1]	48,622			61,459			47,326			36,715
Impairment of real estate investments	—			4			823			11,023
Acquisition, transaction and other costs ^[2]	489			1,892			854			1,616
Equity-based compensation ^[3]	3,217			3,268			3,021			2,935
Gain on sale of real estate investments	(1,933		)	(14,365		)	(2,873		)	(2,186		)
Other income	(48		)	(667		)	(2,545		)	(794		)
Goodwill impairment	—			1,605			—			—
Adjusted EBITDA ^[1]	50,347			53,196			46,606			49,309
Asset management fees to related party	6,545			6,335			6,038			5,848
General and administrative	3,573			6,441			6,061			5,876
NOI ^[1]	60,465			65,972			58,705			61,033
Amortization of market lease and other intangibles, net	(2,503		)	(1,723		)	(1,839		)	(6,054		)
Straight-line rent	(2,716		)	(1,566		)	(1,196		)	(2,119		)
Cash NOI ^[1]	$	55,246		$	62,683		$	55,670		$	52,860

Cash Paid for Interest:
Interest expense	$	18,569		$	21,995		$	18,440		$	17,623
Amortization of deferred financing costs, net and change in accrued interest	(725		)	(3,062		)	(1,329		)	(1,461		)
Amortization of mortgage discounts and premiums on borrowings	839			839			794			1,097
Total cash paid for interest	$	18,683		$	19,772		$	17,905		$	17,259



	Three Months Ended
	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Funds from operations (FFO):
Net income (loss) attributable to common stockholders (in accordance with GAAP)	$	(2,931	)	$	7,884		$	(3,227	)	$	(13,524	)
Impairment of real estate investments	—			4			823			11,023
Depreciation and amortization	29,901			30,924			32,086			32,638
Gain on sale of real estate investments	(1,933		)	(14,365		)	(2,873		)	(2,186		)
Proportionate share of adjustments for non-controlling interest to arrive at FFO	(45		)	(27		)	(49		)	(67		)
FFO attributable to common stockholders ^[1]	24,992			24,420			26,760			27,884
Acquisition, transaction and other costs^[2]	489			1,892			854			1,616
Litigation cost reimbursements related to the Merger ^[3]	—			(115		)	(1,833		)	—
Amortization of market lease and other intangibles, net	(2,503		)	(1,723		)	(1,839		)	(6,054		)
Straight-line rent	(2,716		)	(1,566		)	(1,196		)	(2,119		)
Amortization of mortgage premiums on borrowings	(839		)	(839		)	(794		)	(1,097		)
Equity-based compensation ^[4]	3,217			3,268			3,021			2,935
Amortization of deferred financing costs, net and change in accrued interest	725			3,062			1,329			1,461
Goodwill impairment ^[5]	—			1,605			—			—
Proportionate share of adjustments for non-controlling interest to arrive at AFFO	3			(7		)	1			6
AFFO attributable to common stockholders ^[1]	$	23,368		$	29,997		$	26,303		$	24,632

Weighted-average common shares outstanding	106,140			106,394			106,077			106,096
Net income (loss) per share attributable to common stockholders — Basic and Diluted	$	(0.03	)	$	0.07		$	(0.03	)	$	(0.13	)
FFO per common share	$	0.24		$	0.23		$	0.25		$	0.26
AFFO per common share	$	0.22		$	0.28		$	0.25		$	0.23
Dividends declared^[6]	$	29,212		$	29,213		$	29,207		$	19,487



Year of Maturity	Number of Encumbered Properties	Weighted-Average Debt Maturity (Years) ^[3]	Weighted-Average Interest Rate ^[3][4]		Total Outstanding Balance ^[5]		Percent
Non-Recourse Debt
2019 (remainder)	—	—	—	%	953
2020	245	1.1	4.5	%	539,245
2021	117	1.7	5.3	%	248,371
2022	—	—	—	%	2,311
2023	—	—	—	%	2,643
Thereafter	261	7.2	4.3	%	528,207
Total Non-Recourse Debt	623	3.9	4.6	%	1,321,730		81	%

Recourse Debt ^[1]
Credit Facility ^[2]		3.6	4.2	%	317,700
Total Recourse Debt		3.6	4.2	%	317,700		19	%

Total Debt		3.9	4.5	%	$	1,639,430	100	%



	Future Minimum Base Rent Payments ^[1]
2019 (remainder)	$	62,146
2020	247,664
2021	239,127
2022	228,306
2023	215,826
2024	197,069
Thereafter	1,208,313
Total	$	2,398,451



American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2019



Tenant / Lease Guarantor	Property Type	Tenant Industry	Annualized SL Rent^[1]		SL Rent Percent		Remaining Lease Term ^[2]	Investment Grade ^[3]
SunTrust Bank	Retail	Retail Banking	$	19,402	7	%	9.7	Yes
Sanofi US	Office	Pharmaceuticals	17,143		6	%	13.3	Yes
Mountain Express	Retail	Gas/Convenience	13,237		5	%	18.9	No
AmeriCold	Distribution	Refrigerated Warehousing	12,720		5	%	8.0	Yes
Stop & Shop	Retail	Grocery	8,770		3	%	7.3	Yes
Tenants 6 - 10	Various	Various	33,786		13	%	12.2	4 of 5 - Yes
Subtotal			105,058		40	%	11.8

Remaining portfolio			158,920		60	%

Total Portfolio			$	263,978	100	%



	Retail Properties
Tenant Type	Annualized SL Rent ^[1]		SL Rent Percent		Square Feet ^[2]	Sq. ft. Percent
Single-Tenant:
Service-oriented	$	104,380	50	%	3,547	31	%
Traditional retail	15,637		7	%	1,659	14	%
Multi-Tenant:
Experiential/e-commerce defensive	42,805		21	%	2,421	21	%
Other traditional retail	46,201		22	%	3,995	34	%
Total	$	209,023	100	%	11,622	100	%



	Total Portfolio
Region	Annualized SL Rent ^[1]		SL Rent Percent		Square Feet	Sq. ft. Percent
Alabama	$	14,199	5.4	%	1,287	7.0	%
Alaska	407		0.2	%	9	0.1	%
Arizona	352		0.1	%	22	0.1	%
Arkansas	2,284		0.9	%	85	0.4	%
California	228		0.1	%	9	0.1	%
Colorado	776		0.3	%	51	0.3	%
Connecticut	1,640		0.6	%	84	0.5	%
Delaware	176		0.1	%	5	0.1	%
District of Columbia	236		0.1	%	3	0.1	%
Florida	20,083		7.6	%	1,175	6.4	%
Georgia	26,105		9.9	%	1,888	10.3	%
Idaho	331		0.1	%	14	0.1	%
Illinois	9,074		3.4	%	711	3.9	%
Indiana	1,949		0.7	%	82	0.4	%
Iowa	2,752		1.0	%	166	0.9	%
Kansas	3,098		1.2	%	264	1.4	%
Kentucky	9,329		3.5	%	610	3.2	%
Louisiana	5,088		1.9	%	316	1.7	%
Maine	202		0.1	%	12	0.1	%
Maryland	1,239		0.5	%	36	0.2	%
Massachusetts	6,069		2.3	%	589	3.2	%
Michigan	6,223		2.4	%	373	2.0	%
Minnesota	11,435		4.3	%	761	4.2	%
Mississippi	3,521		1.3	%	178	1.0	%
Missouri	5,795		2.2	%	486	2.7	%
Montana	1,243		0.5	%	44	0.2	%
Nebraska	514		0.2	%	12	0.1	%
Nevada	7,017		2.7	%	408	2.2	%
New Hampshire	127		0.1	%	6	0.1	%
New Jersey	18,655		7.1	%	818	4.5	%
New Mexico	629		0.2	%	47	0.3	%
New York	2,351		0.9	%	172	0.9	%
North Carolina	18,082		6.8	%	1,493	8.2	%
North Dakota	1,222		0.5	%	170	0.9	%
Ohio	16,932		6.4	%	887	4.9	%
Oklahoma	8,920		3.4	%	849	4.6	%
Pennsylvania	9,459		3.6	%	524	2.9	%
Rhode Island	2,419		0.9	%	149	0.8	%
South Carolina	13,973		5.3	%	1,454	8.0	%
South Dakota	339		0.1	%	47	0.3	%
Tennessee	4,068		1.5	%	276	1.5	%
Texas	12,579		4.8	%	822	4.4	%
Utah	189		0.1	%	6	0.1	%
Virginia	3,547		1.3	%	210	1.2	%
West Virginia	1,175		0.4	%	39	0.2	%
Wisconsin	6,629		2.5	%	532	2.9	%
Wyoming	1,318		0.5	%	66	0.4	%
Total	$	263,978	100.0	%	18,247	100.0	%



Year of Expiration	Number of Leases Expiring	Annualized SL Rent^[1]		Annualized SL Rent Percent		Leased Square Feet	Percent of Leased Square Feet Expiring
		(In thousands)				(In thousands)
2019 (Remaining)	49	$	3,704	1.4	%	335	1.9	%
2020	75	6,208		2.4	%	334	1.9	%
2021	83	16,471		6.2	%	1,421	8.2	%
2022	95	12,215		4.6	%	1,142	6.6	%
2023	111	16,817		6.4	%	1,185	6.8	%
2024	101	20,089		7.6	%	1,465	8.4	%
2025	83	21,210		8.0	%	1,635	9.4	%
2026	42	15,534		5.9	%	1,011	5.8	%
2027	97	33,530		12.7	%	3,556	20.5	%
2028	71	9,510		3.6	%	735	4.2	%
2029	116	22,125		8.4	%	1,173	6.8	%
2030	35	8,787		3.3	%	672	3.9	%
2031	40	10,175		3.9	%	409	2.4	%
2032	12	20,207		7.7	%	836	4.8	%
2033	63	8,259		3.1	%	280	1.6	%
2034	13	2,038		0.8	%	117	0.7	%
Thereafter (>2034)	238	37,099		14.0	%	1,052	6.1	%
Total	1,324	$	263,978	100.0	%	17,358	100.0	%

Cover Page	Nov. 06, 2019
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Nov. 06, 2019
Entity Registrant Name	American Finance Trust, Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-38597
Entity Tax Identification Number	90-0929989
Entity Address, Address Line One	405 Park Avenue
Entity Address, Address Line Two	3rd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	212
Local Phone Number	415-6500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001568162
Amendment Flag	false
Class A Common Stock, $0.01 par value
Document Information [Line Items]
Title of 12(b) Security	Class A Common Stock, $0.01 par value
Trading Symbol	AFIN
Security Exchange Name	NASDAQ
7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value
Document Information [Line Items]
Title of 12(b) Security	7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value
Trading Symbol	AFINP
Security Exchange Name	NASDAQ