Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): August 8, 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:
o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o  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 o
 
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. o






Item 2.02. Results of Operations and Financial Condition.

On August 8, 2019, American Finance Trust, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended June 30, 2019, and supplemental financial information for the quarter ended June 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 August 8, 2019, the Company issued a press release announcing its results of operations for the quarter ended June 30, 2019, and supplemental financial information for the quarter ended June 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.

(d) Exhibits

Exhibit No
 
 Description
 
Press release dated August 8, 2019
 
 
 
 
Quarterly supplemental information for the quarter ended June 30, 2019








SIGNATURES

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: August 8, 2019



Exhibit

EXHIBIT 99.1

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13049417&doc=4                            


FOR IMMEDIATE RELEASE
 

AMERICAN FINANCE TRUST ANNOUNCES SECOND QUARTER 2019 RESULTS

  
New York, August 8, 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-oriented and traditional retail and distribution related commercial real estate properties in the U.S., announced today its financial and operating results for the second quarter ended June 30, 2019.
 
Second Quarter 2019 Highlights    

Revenue from tenants was $79.1 million for the quarter ended June 30, 2019, up 11%, compared to $71.1 million for the quarter ended June 30, 2018
Net income attributable to common stockholders was $7.9 million for the quarter ended June 30, 2019, or $0.07 per diluted share, compared to a net loss of $12.0 million, or $0.11 per diluted share, for the quarter ended June 30, 2018
Funds from Operations ("FFO") was $24.4 million, or $0.23 per diluted share, for the quarter ended June 30, 2019 compared to $28.3 million, or $0.27 per diluted share, for the quarter ended June 30, 2018
Adjusted Funds from Operations (“AFFO”) was up 11.4% to $30.0 million, or $0.28 on a per diluted share basis, inclusive of a $7.6 million lease termination fee partially offset by a $1.5 million derivative payment, compared to $26.9 million or $0.26 on a per diluted share basis, for the quarter ended June 30, 2018
Cash net operating income ("NOI") grew to $62.7 million in the quarter compared to $53.1 million for the quarter ended June 30, 2018
Closed on the acquisition of 32 properties for $70 million1 at a weighted-average capitalization rate2 of 8.3%
Over $180.0 million in year to date acquisitions comprising 96 properties and 460,407 square feet of space with 16.7 years of average remaining lease term and primarily leased to service retail tenants5 
Total multi-tenant executed occupancy3 was 88% with the inclusion of eight executed leases over 210,000 square feet, including six leases with anchor tenants4 
Total portfolio is 93.4% leased with an 9 year weighted-average lease term6 remaining at quarter end
Annual rent escalators7 averaging 1.3% per year in 81.2% of leases provide contractually embedded rent growth
75.6% of tenants in single-tenant portfolio and 37.7% of anchor tenants in multi-tenant portfolio rated as investment grade or implied investment grade8  
Completed, through an affiliate, an Asset Backed Security offering with of $241.9 million in two classes, with an 8-year weighted-average term at a weighted-average interest rate of 4.2%.

CEO Comments    

Michael Weil, Chief Executive Officer, commented, "The second quarter for AFIN was another quarter of increases in rental revenue, adjusted EBITDA and AFFO on the strength of steady execution on our portfolio strategy. Our first ABS offering was very successful and we were able to utilize the ATM to sell Class A Preferred stock above the issue price from last quarter, continuing to raise substantial funds for acquisitions at what we believe is an effective cost. The property sales we closed were timely and beneficial to the company, while the acquisitions we made were entirely aligned with our service retail focus. We look forward to continuing to execute on our strategy in the second half of 2019."

1


Financial Results    

 
 
Three Months Ended June 30,
(In thousands, except per share data)
 
2019
 
2018
Revenue from tenants
 
$
79,109

 
$
71,108

 
 
 
 
 
Net income (loss) attributable to common stockholders
 
$
7,884

 
$
(12,041
)
Net income (loss) per common share (a)
 
$
0.07

 
$
(0.11
)
 
 
 
 
 
FFO attributable to common stockholders
 
$
24,420

 
$
28,257

FFO per common share (a)
 
$
0.23

 
$
0.27

 
 
 
 
 
AFFO attributable to common stockholders
 
$
29,997

 
$
26,918

AFFO per common share (a)
 
$
0.28

 
$
0.26

(a) All per share data based on 106,394,277 and 105,028,459 diluted weighted-average shares outstanding for the three months ended June 30, 2019 and 2018, respectively.

Real Estate Portfolio

The Company’s portfolio consisted of 704 net lease properties located in 43 states and comprised 17.7 million rentable square feet as of June 30, 2019. Portfolio metrics include:

93.4% leased with 9 years remaining weighted-average lease term
81.2% of leases have contractual rent increases of 1.3% on average based on annualized straight-line rent9 
75.6% of single-tenant portfolio and 37.7% of multi-tenant portfolio anchor tenant annualized straight-line rent derived from investment grade or implied investment grade tenants
78% retail properties, 12% industrial and distribution properties and 10% office properties (based on an annualized straight-line rent)
70% of the retail portfolio focused on either service or experiential retail10 giving the company strong alignment with "e-commerce resistant" real estate

Property Acquisitions

For the three months ended June 30, 2019, the Company completed the acquisition of 32 properties for an aggregate contract purchase price of $70 million at a weighted average capitalization rate of 8.3%.

The Company’s forward pipeline as of July 15, 2019 includes 21 properties for an aggregate contract purchase price of $38.4 million, of which 57%, based on purchase price, are occupied by service retail tenants. There can be no assurance that all these acquisitions will be completed on their current terms, or at all.

Property Dispositions

The Company sold ten properties during the second quarter of 2019 for $93.6 million, of which approximately $73.9 million was used to repay related debt. Sales of an office property in Utah and a distribution facility in Alabama resulted in $5.8 million and $2.5 million gains, respectively, and total returns16 of 17% and 25%, respectively.

Capital Structure and Liquidity Resources

As of June 30, 2019, the Company had a total borrowing capacity under its credit facility of $314.1 million. Of this amount, $257.7 million was outstanding under this facility as of June 30, 2019 and $56.4 million remained available for future borrowing11. As of June 30, 2019, the Company had $91.2 million of cash and cash equivalents. The Company’s net debt12 to gross asset value13 was 39.4%, with net debt of $1.5 billion.

The Company's percentage of fixed rate debt was 83.7% as of June 30, 2019. The Company’s total combined debt had a weighted-average interest rate cost of 4.6%14, resulting in an interest coverage ratio of 2.7 times15.

During the second quarter of 2019, the Company sold an additional 452,600 shares of Series A preferred Stock, generating gross proceeds of $11.3 million as a result of the exercise of the underwriters option to purchase additional shares of Series A preferred stock in the Company’s offering of Series A preferred stock in March 2019 and through its ATM program.

2



Footnotes/Definitions
 
1 Represents 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-lined 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.

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

4 Anchor tenants are defined as tenants that occupy over 10,000 square feet of one of the Company's multi-tenant properties.
    
5 Service retail is defined as single-tenant retail properties leased to tenants in the retail banking, restaurant, grocery, pharmacy, gas/convenience, fitness, and auto services sectors.

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

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

8 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 June 30, 2019. Single-tenant portfolio tenants are 45.0% actual investment grade rated and 30.6% implied investment grade rate. Anchor tenants in the multi-tenant portfolio are 23.8% actual investment grade rated and 13.9% implied investment grade rated.

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

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

11 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 June 30, 2019. The $56.4 million available for future borrowing is exclusive of the $2.7 million in letters of credit posted against such amount.

12 Total debt of $1.6 billion less cash and cash equivalents of $91.2 million as of June 30, 2019. Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of cash and cash equivalents.

13 Defined as the carrying value of total assets plus accumulated depreciation and amortization as of June 30, 2019.
 
14 Weighted based on the outstanding principal balance of the debt.

15 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 June 30, 2019.

16 The total return for a property is calculated as the gross disposition price of the property plus the accumulated Cash NOI generated by the property since acquisition, divided by the gross acquisition price of the property. American Express was sold for $30.0 million, accumulated $19.4 million of Cash NOI and was purchased for $42.2 million. C&S was sold for $45.0 million, accumulated $22.9 million of Cash NOI and was purchased for $54.4 million

3


Webcast and Conference Call

AFIN will host a webcast and call on August 8, 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.
 
Live Call
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: 7354942
 
Conference Replay*
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: 10133601 
*Available one hour after the end of the conference call through November 8, 2019.

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.

Important Notice
The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. 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.

Contacts:
Investors and Media:
Email: investorrelations@americanfinancetrust.com
Phone: (866) 902-0063

4



American Finance Trust, Inc.
Consolidated Balance Sheets
(In thousands. except share and per share data)


 
June 30,
2019
 
December 31,
2018
 
(Unaudited)
 
 
ASSETS
 
 
 
Real estate investments, at cost:
 
 
 
Land
$
649,402

 
$
629,190

Buildings, fixtures and improvements
2,513,374

 
2,441,659

Acquired intangible lease assets
419,367

 
413,948

Total real estate investments, at cost
3,582,143

 
3,484,797

Less: accumulated depreciation and amortization
(476,112
)
 
(454,614
)
Total real estate investments, net
3,106,031

 
3,030,183

Cash and cash equivalents
91,165

 
91,451

Restricted cash
18,352

 
18,180

Deposits for real estate acquisitions
81

 
3,037

Goodwill

 
1,605

Deferred costs, net
16,937

 
16,222

Straight-line rent receivable
41,512

 
37,911

Operating lease right-of-use assets
19,053

 

Prepaid expenses and other assets
15,977

 
19,439

Assets held for sale
4,819

 
44,519

Total assets
$
3,313,927

 
$
3,262,547

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Mortgage notes payable, net
$
1,313,480

 
$
1,196,113

Credit facility
257,700

 
324,700

Below market lease liabilities, net
85,427

 
89,938

Accounts payable and accrued expenses (including $1,251 and $2,634 due to related parties as of June 30, 2019 and December 31, 2018, respectively)
27,709

 
28,383

Operating lease liabilities
19,280

 

Derivative liabilities, at fair value

 
531

Deferred rent and other liabilities
7,764

 
13,067

Dividends payable
717

 
80

Total liabilities
1,712,077

 
1,652,812

 
 
 
 
7.50% Series A cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 3,380,000 shares authorized, 1,652,600 issued and outstanding as of June 30, 2019 and no shares issued and outstanding as of December 31, 2018
17

 

Common stock, $0.01 par value per share, 300,000,000 shares authorized, 106,245,619 and 106,230,901 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
1,063

 
1,063

Additional paid-in capital
2,453,814

 
2,412,915

Accumulated other comprehensive loss

 
(531
)
Distributions in excess of accumulated earnings
(866,226
)
 
(812,047
)
Total stockholders' equity
1,588,668

 
1,601,400

Non-controlling interests
13,182

 
8,335

Total equity
1,601,850

 
1,609,735

Total liabilities and equity
$
3,313,927

 
$
3,262,547



5



American Finance Trust, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)

 
Three Months Ended June 30,
 
2019
 
2018
Revenue from tenants
$
79,109

 
$
71,108

 
 
 
 
Operating expenses:
 
 
 
Asset management fees to related party
6,335

 
5,837

Property operating
13,137

 
13,157

Impairment charges
4

 
8,563

Acquisition, transaction and other costs [1]
1,892

 
2,376

Equity-based compensation [2]
3,268

 
65

General and administrative
6,441

 
5,358

Depreciation and amortization
30,924

 
35,438

Goodwill impairment
1,605

 

Total operating expenses
63,606

 
70,794

          Operating income before gain on sale of real estate investments
15,503

 
314

Gain on sale of real estate investments
14,365

 
3,625

   Operating income
29,868

 
3,939

Other income (expense):
 
 
 
Interest expense
(21,995
)
 
(16,042
)
Other income
667

 
38

Total other expense, net
(21,328
)
 
(16,004
)
Net income (loss)
8,540

 
(12,065
)
Net (income) loss attributable to non-controlling interests
(14
)
 
24

Preferred stock dividends
(642
)
 

Net income (loss) attributable to common stockholders
$
7,884

 
$
(12,041
)
 
 
 
 
Basic and Diluted Net Income (Loss) Per Share:
 
 
 
Net income (loss) per share attributable to common stockholders — Basic and Diluted
$
0.07

 
$
(0.11
)
Weighted-average shares outstanding — Basic
106,075,741

 
105,028,459

Weighted-average shares outstanding — Diluted
106,394,277

 
105,028,459

______

[1] For the three months ended June 30, 2019. includes litigation costs related to the Merger of $0.2 million. For the three months ended June 30, 2018, includes litigation costs related to the Merger of $1.1 million that were previously classified as general and administrative expenses.

[2] For the three months ended June 30, 2019, includes expense related to the Company's restricted common shares of $0.3 million. For the three months ended June 30, 2018, includes expense related to the Company's restricted common shares of $65,000 that was previously classified as general and administrative expenses.

6



American Finance Trust, Inc.
Quarterly Reconciliation of Non-GAAP Measures (Unaudited)
(In thousands)



 
 
Three Months Ended June 30,
 
 
2019
 
2018
Adjusted EBITDA
 
 
 
 
Net income (loss)
 
$
8,540

 
$
(12,065
)
Depreciation and amortization
 
30,924

 
35,438

Interest expense
 
21,995

 
16,042

Impairment charges
 
4

 
8,563

Acquisition, transaction and other costs [1]
 
1,892

 
2,376

Listing fees
 

 

Vesting and conversion of Class B Units
 

 

Equity-based compensation [2]
 
3,268

 
65

Gain on sale of real estate investments
 
(14,365
)
 
(3,625
)
Other income
 
(667
)
 
(38
)
Goodwill impairment
 
1,605

 

Adjusted EBITDA [3]
 
53,196

 
46,756

Asset management fees to related party
 
6,335

 
5,837

General and administrative
 
6,441

 
5,358

NOI [3]
 
65,972

 
57,951

   Amortization of market lease and other intangibles, net
 
(1,723
)
 
(2,320
)
Straight-line rent
 
(1,566
)
 
(2,540
)
  Cash NOI [3]
 
$
62,683

 
$
53,091

 
 
 
 
 
Cash Paid for Interest:
 
 
 
 
   Interest expense
 
$
21,995

 
$
16,042

   Amortization of deferred financing costs, net and change in accrued interest
 
(3,062
)
 
(2,126
)
   Amortization of mortgage premiums on borrowings
 
839

 
1,001

   Total cash paid for interest
 
$
19,772

 
$
14,917

______

[1] For the three months ended June 30, 2019. includes litigation costs related to the Merger of $0.2 million. For the three months ended June 30, 2018, includes litigation costs related to the Merger of $1.1 million that were previously classified as general and administrative expenses.

[2] For the three months ended June 30, 2019, includes expense related to the Company's restricted common shares of $0.3 million. For the three months ended June 30, 2018, includes expense related to the Company's restricted common shares of $65,000 that was previously classified as general and administrative expenses.

[3] For the three months ended June 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.


7



American Finance Trust, Inc.
Quarterly Reconciliation of Non-GAAP Measures (Unaudited)
(In thousands)



 
 
Three Months Ended June 30,
 
 
2019
 
2018
Net income (loss) loss attributable to common stockholders (in accordance with GAAP)
 
$
7,884

 
$
(12,041
)
   Impairment charges
 
4

 
8,563

   Depreciation and amortization
 
30,924

 
35,438

   Gain on sale of real estate investments
 
(14,365
)
 
(3,625
)
   Proportionate share of adjustments for non-controlling interest to arrive at FFO
 
(27
)
 
(78
)
FFO attributable to common stockholders [1]
 
24,420

 
28,257

   Acquisition, transaction and other costs [2]
 
1,892

 
2,376

   Litigation cost reimbursements related to the Merger [3]
 
(115
)
 

   Amortization of market lease and other intangibles, net
 
(1,723
)
 
(2,320
)
   Straight-line rent
 
(1,566
)
 
(2,540
)
   Amortization of mortgage premiums on borrowings
 
(839
)
 
(1,001
)
   Mark-to-market adjustments
 

 
(48
)
   Equity-based compensation [4]
 
3,268

 
65

   Amortization of deferred financing costs, net and change in accrued interest
 
3,062

 
2,126

   Goodwill impairment [5]
 
1,605

 

   Proportionate share of adjustments for non-controlling interest to arrive at AFFO
 
(7
)
 
3

AFFO attributable to common stockholders [1]
 
$
29,997

 
$
26,918

______

[1] FFO and AFFO for the three months ended June 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 the Company believes to be general industry practice.

[2] Includes primarily 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.

[5]
This is a non-cash item and is added back as it is not considered a part of operating performance.






8



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
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

9



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 RCA 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 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 the multi-year outperformance agreement 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 equal to net income (loss), the most directly comparable GAAP financial measure, less discontinued operations, interest, other income and income from preferred equity investments and investment securities, plus corporate general and administrative expense, acquisition and transaction-related expenses, depreciation and amortization, other non-cash expenses and interest expense. NOI is adjusted to include our pro rata share of NOI from unconsolidated joint ventures. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. 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 costs and acquisition activity on an unlevered basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income 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.
Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as net operating income (which is separately defined herein) 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.

10
Exhibit
EXHIBIT 99.2






American Finance Trust, Inc.
Supplemental Information

Quarter ended June 30, 2019 (unaudited)





American Finance Trust, Inc.
Supplemental Information
Quarter ended June 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).


2


American Finance Trust, Inc.
Supplemental Information
Quarter ended June 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
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, 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 depreciation 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.

3


American Finance Trust, Inc.
Supplemental Information
Quarter ended June 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 the RCA 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 any subsequent insurance reimbursements related to the RCA 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.
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 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 equal to net income (loss), the most directly comparable GAAP financial measure, less discontinued operations, interest, other income and income from preferred equity investments and investment securities, plus corporate general and administrative expense, acquisition and transaction-related expenses, depreciation and amortization, other non-cash expenses and interest expense. NOI is adjusted to include our pro rata share of NOI from unconsolidated joint ventures. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. 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 costs and acquisition activity on an unlevered basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income 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.
Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as net operating income (which is separately defined herein) excluding amortization of above/below market lease intangibles and straight-

4


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

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.




5


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

Key Metrics
As of and for the three months ended June 30, 2019
Financial Results (Amounts in thousands, except per share data)
 
 
Revenue from tenants
 
$
79,109

Net income attributable to common stockholders
 
$
7,884

Basic and diluted net income per share attributable to common stockholders
 
$
0.07

Cash NOI [1]
 
$
62,683

Adjusted EBITDA [1]
 
$
53,196

AFFO attributable to common stockholders [1]
 
$
29,997

Dividends declared [2]
 
$
29,213

 
 
 
Balance Sheet and Capitalization (Amounts in thousands, except ratios and percentages)
 
 
Gross asset value [3]
 
$
3,790,039

Net debt [4] [5]
 
$
1,492,340

Total consolidated debt [5]
 
$
1,583,505

Total assets
 
$
3,313,927

Liquidity [6]
 
$
147,613

 
 
 
Common shares outstanding as of June 30, 2019
 
106,246

 
 
 
Net debt to gross asset value
 
39.4
%
Net debt to adjusted EBITDA (annualized based on quarterly results) [1]
 
7.9
x
 
 
 
Weighted-average interest rate cost [7]
 
4.6
%
Weighted-average debt maturity (years) [8]
 
4.1

Interest Coverage Ratio [1] [9]
 
2.7
x
Real Estate Portfolio
 
Single-Tenant Portfolio
 
Multi-Tenant Portfolio
 
Total Portfolio
Portfolio Metrics:
 
 
 
 
 
 
Real estate investments, at cost (in billions)
 
$
2.1

 
$
1.5

 
$
3.6

Number of properties
 
671

 
33

 
704

Square footage (in millions)
 
10.5

 
7.2

 
17.7

Annualized straight-line rent (in millions) [10]
 
$
161.7

 
$
87.9

 
$
249.6

Annualized straight-line rent per leased square foot
 
$
15.6

 
$
14.3

 
$
15.1

Occupancy [11]
 
99.1
%
 
85.1
%
 
93.4
%
Weighted-average remaining lease term (years) [12]
 
11.3

 
4.9

 
9.0

% investment grade [13]
 
75.6
%
 
%
 
N/A

% of anchor tenants in multi-tenant portfolio that are investment grade [13] [14]
 
%
 
37.7
%
 
N/A

% of leases with rent escalators [15]
 
88.1
%
 
68.5
%
 
81.2
%
Average annual rent escalator [15]
 
1.3
%
 
1.4
%
 
1.3
%
——
[1] This Non-GAAP metric is reconciled below. Annualized results were adjusted for termination fee income of $7.6 million which was recorded in the second quarter of 2019.
[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 June 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 $56.4 million and cash and cash equivalents.The $56.4 million is exclusive of the $2.7 million in letters of credit posted against the amount available for future borrowing as of June 30, 2019. In accordance with the Company's credit facility, if the Company were to make any restricted payments or certain other payments, it would be required to have a combination of cash and amount available for future borrowings totaling $40.0 million following such payments.
[7] Weighted based on the outstanding principal balance of the debt as of June 30, 2019.
[8] Weighted based on the outstanding principal balance of the debt as of June 30, 2019 and does not reflect any changes to maturity dates subsequent to
June 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.
[9] The interest coverage ratio is calculated by dividing adjusted EBITDA by cash paid for interest (interest expense less amortization of deferred financing

6


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

costs, net, change in accrued interest and amortization of mortgage premiums on borrowings) for the quarter ended June 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 June 30, 2019.
[11] Only includes leases which have commenced and were taken possession by the tenant as of June 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 June 30, 2019. The weighted averages are based on straight-line rent. Single-tenant portfolio tenants are 45.0% actual investment grade rated and 30.6% 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 23.8% actual
investment grade rated and 13.9% implied investment grade rated.
[15] Based on annualized straight-line rent as of June 30, 2019. Contractual rent increases include fixed percent or actual increases, or CPI-indexed
increases.

7

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


Consolidated Balance Sheets
Amounts in thousands, except share and per share data
 
June 30,
2019
 
December 31,
2018
 
(Unaudited)
 
 
ASSETS
 
 
 
Real estate investments, at cost:
 
 
 
Land
$
649,402

 
$
629,190

Buildings, fixtures and improvements
2,513,374

 
2,441,659

Acquired intangible lease assets
419,367

 
413,948

Total real estate investments, at cost
3,582,143

 
3,484,797

Less: accumulated depreciation and amortization
(476,112
)
 
(454,614
)
Total real estate investments, net
3,106,031

 
3,030,183

Cash and cash equivalents
91,165

 
91,451

Restricted cash
18,352

 
18,180

Deposits for real estate acquisitions
81

 
3,037

Goodwill

 
1,605

Deferred costs, net
16,937

 
16,222

Straight-line rent receivable
41,512

 
37,911

Operating lease right-of-use assets
19,053

 

Prepaid expenses and other assets
15,977

 
19,439

Assets held for sale
4,819

 
44,519

Total assets
$
3,313,927

 
$
3,262,547

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Mortgage notes payable, net
$
1,313,480

 
$
1,196,113

Credit facility
257,700

 
324,700

Below market lease liabilities, net
85,427

 
89,938

Accounts payable and accrued expenses (including $1,251 and $2,634 due to related parties as of June 30, 2019 and December 31, 2018, respectively)
27,709

 
28,383

Operating lease liabilities
19,280

 

Derivative liabilities, at fair value

 
531

Deferred rent and other liabilities
7,764

 
13,067

Dividends payable
717

 
80

Total liabilities
1,712,077

 
1,652,812

 
 
 
 
7.50% Series A cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 3,380,000 shares authorized, 1,652,600 issued and outstanding as of June 30, 2019 and no shares issued and outstanding as of December 31, 2018
17

 

Common stock, $0.01 par value per share, 300,000,000 shares authorized, 106,245,619 and 106,230,901 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
1,063

 
1,063

Additional paid-in capital
2,453,814

 
2,412,915

Accumulated other comprehensive loss

 
(531
)
Distributions in excess of accumulated earnings
(866,226
)
 
(812,047
)
Total stockholders' equity
1,588,668

 
1,601,400

Non-controlling interests
13,182

 
8,335

Total equity
1,601,850

 
1,609,735

Total liabilities and equity
$
3,313,927

 
$
3,262,547



8


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

Consolidated Statements of Operations
Amounts in thousands, except share and per share data

 
 
Three Months Ended
 
 
June 30,
2019
 
March 31,
2019
 
December 31, 2018
 
September 30,
2018
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Revenue from tenants
 
$
79,109

 
$
71,541

 
$
75,092

 
$
74,888

 
 
 
 
 
 
 
 
 
 Operating expenses:
 
 
 
 
 
 
 
 
Asset management fees to related party
 
6,335

 
6,038

 
5,848

 
5,849

Property operating
 
13,137

 
12,836

 
14,059

 
13,497

Impairment charges
 
4

 
823

 
11,023

 
1,172

Acquisition, transaction and other costs [1]
 
1,892

 
854

 
1,616

 
1,549

Listing fees
 

 

 

 
4,988

Vesting and conversion of Class B Units
 

 

 

 
15,786

Equity-based compensation [2]
 
3,268

 
3,021

 
2,935

 
2,240

General and administrative
 
6,441

 
6,061

 
5,876

 
6,086

Depreciation and amortization
 
30,924

 
32,086

 
32,638

 
35,332

Goodwill impairment
 
1,605

 

 

 

Total operating expenses
 
63,606

 
61,719

 
73,995

 
86,499

Operating income (loss) before gain on sale of real estate investments
 
15,503

 
9,822

 
1,097

 
(11,611
)
Gain on sale of real estate investments
 
14,365

 
2,873

 
2,186

 
1,328

Operating income (loss)
 
29,868

 
12,695

 
3,283

 
(10,283
)
Other (expense) income:
 
 
 
 
 
 
 
 
Interest expense
 
(21,995
)
 
(18,440
)
 
(17,623
)
 
(17,017
)
Other income
 
667

 
2,545

 
794

 
9

Total other expense, net
 
(21,328
)
 
(15,895
)
 
(16,829
)
 
(17,008
)
Net income (loss)
 
8,540

 
(3,200
)
 
(13,546
)
 
(27,291
)
Net (income) loss attributable to non-controlling interests
 
(14
)
 
3

 
22

 
46

Preferred stock dividends
 
(642
)
 
(30
)
 

 

Net income (loss) attributable to common stockholders
 
$
7,884

 
$
(3,227
)
 
$
(13,524
)
 
$
(27,245
)
 
 
 
 
 
 
 
 
 
Basic and Diluted Net Loss Per Share:
 
 
 
 
 
 
 
 
Net income (loss) per share attributable to common stockholders — Basic and Diluted
 
$
0.07

 
$
(0.03
)
 
$
(0.13
)
 
$
(0.26
)
Weighted-average shares outstanding — Basic
 
106,075,741

 
106,076,588

 
106,096,401

 
105,905,281

Weighted-average shares outstanding — Diluted
 
106,394,277

 
106,076,588

 
106,096,401

 
105,905,281

——
[1] For the three months ended June 30, 2019, includes litigation costs related to the Merger of $0.2 million. For the three months ended March 31, 2019, December 31, 2018 and September 30, 2018, includes litigation costs related to the Merger of $0.3 million, $0.4 million and $0.4 million, respectively, which were previously classified as general and administrative expenses.

[2] For the three months ended June 30, 2019, includes equity-based compensation expense related to the Company's restricted common shares of $0.3 million. For the three months ended March 31, 2019, December 31, 2018 and September 30, 2018, includes equity-based compensation related to the Company's restricted common shares of $0.3 million, $0.3 million and $0.1 million, respectively, that was previously classified as general and administrative expenses.


9


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

Non-GAAP Measures
Amounts in thousands
 
 
Three Months Ended
 
 
June 30,
2019
 
March 31,
2019
 
December 31, 2018
 
September 30,
2018
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
EBITDA:
 
 
 
 
 
 
 
 
Net income (loss)
 
$
8,540

 
$
(3,200
)
 
$
(13,546
)
 
$
(27,291
)
Depreciation and amortization
 
30,924

 
32,086

 
32,638

 
35,332

Interest expense
 
21,995

 
18,440

 
17,623

 
17,017

   EBITDA [1]
 
61,459

 
47,326

 
36,715

 
25,058

Impairment charges
 
4

 
823

 
11,023

 
1,172

Acquisition, transaction and other costs [2]
 
1,892

 
854

 
1,616

 
1,549

Listing fees
 

 

 

 
4,988

Vesting and conversion of Class B Units
 

 

 

 
15,786

Equity-based compensation [3]
 
3,268

 
3,021

 
2,935

 
2,240

Gain on sale of real estate investments
 
(14,365
)
 
(2,873
)
 
(2,186
)
 
(1,328
)
Other income
 
(667
)
 
(2,545
)
 
(794
)
 
(9
)
Goodwill impairment
 
1,605

 

 

 

   Adjusted EBITDA [1]
 
53,196

 
46,606

 
49,309

 
49,456

Asset management fees to related party
 
6,335

 
6,038

 
5,848

 
5,849

General and administrative
 
6,441

 
6,061

 
5,876

 
6,086

   NOI [1]
 
65,972

 
58,705

 
61,033

 
61,391

   Amortization of market lease and other intangibles, net
 
(1,723
)
 
(1,839
)
 
(6,054
)
 
(5,766
)
Straight-line rent
 
(1,566
)
 
(1,196
)
 
(2,119
)
 
(2,589
)
  Cash NOI [1]
 
$
62,683

 
$
55,670

 
$
52,860

 
$
53,036

 
 
 
 
 
 
 
 
 
Cash Paid for Interest:
 
 
 
 
 
 
 
 
   Interest expense
 
$
21,995

 
$
18,440

 
$
17,623

 
$
17,017

   Amortization of deferred financing costs, net and change in accrued interest
 
(3,062
)
 
(1,329
)
 
(1,461
)
 
(1,734
)
   Amortization of mortgage premiums on borrowings
 
839

 
794

 
1,097

 
857

   Total cash paid for interest
 
$
19,772

 
$
17,905

 
$
17,259

 
$
16,140

——
[1] For the three months ended June 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.

[2] For the three months ended June 30, 2019, includes litigation costs related to the Merger of $0.2 million. For the three months ended March 31, 2019, December 31, 2018 and September 30, 2018, includes litigation costs related to the Merger of $0.3 million, $0.4 million and $0.4 million, respectively, which were previously classified as general and administrative expenses.

[3] For the three months ended June 30, 2019, includes equity-based compensation expense related to the Company's restricted common shares of $0.3 million. For the three months ended March 31, 2019, December 31, 2018 and September 30, 2018, includes equity-based compensation related to the Company's restricted common shares of $0.3 million, $0.3 million and $0.1 million, respectively, that was previously classified as general and administrative expenses.





10


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

Non-GAAP Measures
Amounts in thousands, except per share data
 
 
Three Months Ended
 
 
June 30,
2019
 
March 31,
2019
 
December 31, 2018
 
September 30,
2018
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Funds from operations (FFO):
 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders (in accordance with GAAP)
 
$
7,884

 
$
(3,227
)
 
$
(13,524
)
 
$
(27,245
)
Impairment charges
 
4

 
823

 
11,023

 
1,172

Depreciation and amortization
 
30,924

 
32,086

 
32,638

 
35,332

Gain on sale of real estate investments
 
(14,365
)
 
(2,873
)
 
(2,186
)
 
(1,328
)
Proportionate share of adjustments for non-controlling interest to arrive at FFO
 
(27
)
 
(49
)
 
(67
)
 
(59
)
FFO attributable to common stockholders [1]
 
24,420

 
26,760

 
27,884

 
7,872

Acquisition, transaction and other costs [2]
 
1,892

 
854

 
1,616

 
1,549

Litigation cost reimbursements related to the Merger [3]
 
(115
)
 
(1,833
)
 

 

Listing fees
 

 

 

 
4,988

Vesting and conversion of Class B Units
 

 

 

 
15,786

Amortization of market lease and other intangibles, net
 
(1,723
)
 
(1,839
)
 
(6,054
)
 
(5,766
)
Straight-line rent
 
(1,566
)
 
(1,196
)
 
(2,119
)
 
(2,589
)
Amortization of mortgage premiums on borrowings
 
(839
)
 
(794
)
 
(1,097
)
 
(857
)
Equity-based compensation [4]
 
3,268

 
3,021

 
2,935

 
2,240

Amortization of deferred financing costs, net and change in accrued interest
 
3,062

 
1,329

 
1,461

 
1,734

Goodwill impairment [5]
 
1,605

 

 

 

Proportionate share of adjustments for non-controlling interest to arrive at AFFO
 
(7
)
 
1

 
6

 
(29
)
AFFO attributable to common stockholders [1]
 
$
29,997

 
$
26,303

 
$
24,632

 
$
24,928

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding
 
106,394

 
106,077

 
106,096

 
105,905

Net income (loss) per share attributable to common stockholders — Basic and Diluted
 
$
0.07

 
$
(0.03
)
 
$
(0.13
)
 
$
(0.26
)
FFO per common share
 
$
0.23

 
$
0.25

 
$
0.26

 
$
0.07

AFFO per common share
 
$
0.28

 
$
0.25

 
$
0.23

 
$
0.24

Dividends declared [6]
 
$
29,213

 
$
29,207

 
$
19,487

 
$
29,319

——
[1] FFO and AFFO for the three months ended June 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 the Company believes to be general industry practice.
[2] Includes litigation costs related to the Merger which were included as an adjustment in the calculation above beginning in the fourth quarter of 2018, and were not presented as an adjustment in 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.
[5] This is a non-cash item and is added back as it is not considered a part of operating performance.
[6] Represents dividends declared to common stockholders. In January 2019, the Company declared a dividend for December 2018, January 2019 and February 2019 resulting in only 11 months of declared dividends during the year ended December 31, 2018. Notwithstanding the changes to the declaration dates, the Company paid 12 months of dividends during the year ended December 31, 2018.

11


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

Debt Overview
As of June 30, 2019
Amounts in thousands, except ratios and percentages

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)
 

 

 
%
 
1,882

 
 
2020
 
245

 
1.3

 
4.5
%
 
539,245

 
 
2021
 
119

 
1.9

 
5.3
%
 
251,518

 
 
2022
 

 

 
%
 
2,311

 
 
2023
 

 

 
%
 
2,643

 
 
Thereafter
 
261

 
7.5

 
4.3
%
 
528,207

 
 
Total Non-Recourse Debt
 
625

 
4.2

 
4.6
%
 
1,325,806

 
84
%
 
 
 
 
 
 
 
 
 
 
 
Recourse Debt [1]
 
 
 
 
 
 
 
 
 
 
   Credit Facility [2]
 
 
 
3.8

 
4.5
%
 
257,700

 
 
Total Recourse Debt
 
 
 
3.8

 
4.5
%
 
257,700

 
16
%
 
 
 
 
 
 
 
 
 
 
 
Total Debt
 
 
 
4.1

 
4.6
%
 
$
1,583,506

 
100
%
——
[1] Recourse debt is debt that is guaranteed by the Company.
[2] The maturity date of the Company's credit facility was automatically was extended from April 2020 to April 2022 upon the listing of the Company's stock on the Nasdaq. The Company has the right to extend the maturity date to April 2023.
[3] Weighted based on the outstanding principal balance of the debt.
[4] As of June 30, 2019, the Company’s total combined debt was 83.7% fixed rate and 16.3% floating rate.
[5] Excludes the effect of deferred financing costs, net and mortgage premiums, net.

12


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

Future Minimum Base Lease Rents Due to the Company
As of June 30, 2019
Amounts in thousands

 
 
Future Minimum
Base Rent Payments
[1]
2019 (remainder)
 
$
118,145

2020
 
232,495

2021
 
222,380

2022
 
211,339

2023
 
198,882

Thereafter
 
1,307,107

Total
 
$
2,290,348

——
[1] Represents 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.


13


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

Top Ten Tenants (by annualized straight-line rent)
As of June 30, 2019
Amounts in thousands, except percentages

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
 
$
19,776

 
8
%
 
10.1

 
Yes
Sanofi US
 
Office
 
Healthcare
 
17,143

 
7
%
 
13.5

 
Yes
Mountain Express
 
Retail
 
Gas/Convenience
 
13,237

 
5
%
 
19.2

 
No
AmeriCold
 
Distribution
 
Refrigerated Warehousing
 
12,720

 
5
%
 
8.2

 
Yes
Stop & Shop
 
Retail
 
Grocery
 
8,770

 
4
%
 
7.5

 
Yes
Tenants 6 - 10
 
Various
 
Various
 
31,994

 
13
%
 
11.5

 
4 of 5 - Yes
Subtotal
 
 
 
 
 
103,640

 
41
%
 
11.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining portfolio
 
 
 
 
 
145,958

 
59
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Portfolio
 
 
 
 
 
$
249,598

 
100
%
 
 
 
 
——
[1] Calculated using the most recent available lease terms as of June 30, 2019.
[2] Based on straight-line rent as of June 30, 2019.
[3] The top ten tenants are 53.2% actual investment grade rated and 28.8% implied investment grade rated (see page 6 for definition of Investment Grade).






14


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

Diversification by Property Type
As of June 30, 2019
Amounts in thousands, except percentages

 
 
Total Portfolio 
Property Type
 
Annualized SL Rent [1]
 
SL Rent Percent
 
Square Feet
 
Sq. ft. Percent
Retail (including Power and Lifestyle Centers)
 
$
194,642

 
78
%
 
11,881

 
67
%
Distribution
 
28,857

 
12
%
 
4,351

 
25
%
Office
 
26,099

 
10
%
 
1,442

 
8
%
Total
 
$
249,598

 
100
%
 
17,674

 
100
%
 
 
 
Retail Properties [2]
Tenant Type
 
Annualized SL Rent [1]
 
SL Rent Percent
 
Square Feet
 
Sq. ft. Percent
Single-Tenant:
 
 
 
 
 
 
 
 
Service-oriented
 
$
92,220

 
47
%
 
3,077

 
29
%
Traditional retail
 
14,563

 
7
%
 
1,543

 
14
%
Multi-Tenant:
 
 
 
 
 
 
 
 
Experiential/e-commerce defensive
 
43,178

 
23
%
 
2,445

 
23
%
Other traditional retail
 
44,681

 
23
%
 
3,685

 
34
%
Total
 
$
194,642

 
100
%
 
10,750

 
100
%
——
[1] Calculated using the most recent available lease terms as of June 30, 2019.
[2] Square feet represents total rentable square feet of retail properties occupied as of June 30, 2019.
 





15


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

Diversification by Geography
As of June 30, 2019
Amounts in thousands, except percentages
 
 
Total Portfolio
Region
 
Annualized SL Rent [1]
 
SL Rent Percent
 
Square Feet
 
Sq. ft. Percent
Alabama
 
$
13,901

 
5.6
%
 
1,277

 
7.1
%
Arizona
 
352

 
0.1
%
 
22

 
0.1
%
Arkansas
 
2,284

 
0.9
%
 
85

 
0.5
%
Colorado
 
542

 
0.2
%
 
32

 
0.2
%
Connecticut
 
1,640

 
0.7
%
 
84

 
0.5
%
Delaware
 
176

 
0.1
%
 
5

 
0.1
%
District of Columbia
 
235

 
0.1
%
 
3

 
0.1
%
Florida
 
19,776

 
7.9
%
 
1,188

 
6.7
%
Georgia
 
24,556

 
9.8
%
 
1,862

 
10.5
%
Idaho
 
331

 
0.1
%
 
14

 
0.1
%
Illinois
 
7,756

 
3.1
%
 
673

 
3.8
%
Indiana
 
1,409

 
0.6
%
 
59

 
0.3
%
Iowa
 
2,584

 
1.0
%
 
149

 
0.8
%
Kansas
 
3,202

 
1.3
%
 
264

 
1.5
%
Kentucky
 
7,262

 
2.9
%
 
511

 
2.9
%
Louisiana
 
4,930

 
2.0
%
 
310

 
1.8
%
Maine
 
202

 
0.1
%
 
12

 
0.1
%
Maryland
 
1,099

 
0.4
%
 
21

 
0.1
%
Massachusetts
 
6,069

 
2.4
%
 
589

 
3.3
%
Michigan
 
5,724

 
2.3
%
 
338

 
1.9
%
Minnesota
 
11,218

 
4.5
%
 
752

 
4.3
%
Mississippi
 
3,269

 
1.3
%
 
168

 
1.0
%
Missouri
 
5,890

 
2.4
%
 
486

 
2.7
%
Montana
 
1,243

 
0.5
%
 
44

 
0.2
%
Nebraska
 
514

 
0.2
%
 
12

 
0.1
%
Nevada
 
6,548

 
2.6
%
 
396

 
2.2
%
New Jersey
 
18,655

 
7.5
%
 
818

 
4.6
%
New Mexico
 
336

 
0.1
%
 
27

 
0.2
%
New York
 
2,351

 
0.9
%
 
172

 
1.0
%
North Carolina
 
16,854

 
6.8
%
 
1,440

 
8.1
%
North Dakota
 
1,222

 
0.5
%
 
170