afin-20211103
0001568162false00015681622021-11-032021-11-030001568162us-gaap:CommonClassAMember2021-11-032021-11-030001568162afin:A7.50SeriesACumulativeRedeemablePerpetualPreferredStock0.01parvalueMember2021-11-032021-11-030001568162afin:A7375SeriesCCumulativeRedeemablePerpetualPreferredStock001ParValuePerShareMember2021-11-032021-11-030001568162afin:PreferredStockPurchaseRightsMember2021-11-032021-11-03

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): November 3, 2021
 
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.)

650 Fifth Avenue, 30th Floor
New York, New York 10019
___________________________________________________________________________________________________________________________________________________________________________
(Address, including zip code, of Principal Executive Offices)

Registrant’s telephone number, including area code: (212) 415-6500
 
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 classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.01 par value per shareAFINThe Nasdaq Global Select Market
7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per shareAFINPThe Nasdaq Global Select Market
7.375% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per shareAFINOThe Nasdaq Global Select Market
Preferred Stock Purchase RightsThe 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 3, 2021, American Finance Trust, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended September 30, 2021, and supplemental financial information for the quarter ended September 30, 2021, 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 3, 2021, the Company issued a press release announcing its results of operations for the quarter ended September 30, 2021, and supplemental financial information for the quarter ended September 30, 2021, 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 that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as “anticipates,” “believes,” “expects,” "estimates," "projects," “plans,” “intends,” "may,'" “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the potential adverse effects of the ongoing global COVID-19 pandemic, including actions taken to contain or treat COVID-19, on the Company, the Company’s tenants and the global economy and financial markets and that the information about rent collections may not be indicative of any future period, as well as those set forth in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 25, 2021 and all other filings with the SEC after that date, as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits
Exhibit No. Description
Press release dated November 3, 2021
Quarterly supplemental information for the quarter ended September 30, 2021
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL Document.






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, 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 3, 2021


Document


EXHIBIT 99.1
https://cdn.kscope.io/bf985b6c5e81e414f7d516a3c08ead70-afinlogoa.jpg

FOR IMMEDIATE RELEASE
 

AMERICAN FINANCE TRUST ANNOUNCES THIRD QUARTER 2021 RESULTS
Company to Host Investor Conference Call at 11:00 AM ET Tomorrow
  
New York, November 3, 2021 - 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 third quarter ended September 30, 2021.
 
Third Quarter 2021 Highlights    

Revenue grew 17.1% to $91.9 million from $78.5 million for the third quarter 2020, inclusive of a $10.4 million lease buyout fee for 12 leases with Truist Bank
Net loss attributable to common stockholders was $6.4 million as compared to $7.1 million for the third quarter 2020
Cash net operating income (“NOI”) grew 37.9% to $75.7 million from $54.9 million for the third quarter 2020
Funds from Operations (“FFO”) of $30.3 million, or $0.25 per diluted share increased from $25.6 million, or $0.24 per diluted share, for the third quarter 2020
Adjusted Funds from Operations (“AFFO”) grew 41.4% to $36.0 million1 from $25.5 million, or 30.4% to $0.30 per share from $0.23 per diluted share, in the prior year third quarter
Dividends of $25.2 million or $0.21 per share
Improved Net Debt to adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) to 6.8x 2
Enhanced balance sheet, with weighted average interest rate of 3.6%, compared to 3.8% and 89.7% of debt fixed-rate versus 83.4% a year ago
Collected approximately 100% of original cash rent in third quarter 2021, including 100% in single tenant portfolio, 100% in the multi-tenant portfolio, and 100% among the top 20 tenants3,4
Multi-tenant Executed Occupancy5 and Leasing Pipeline6 are expected to add $2.1 million of annualized straight-line rent and 141,000 square feet to the portfolio over time as executed leases commence
Completed $86.5 million7 of acquisitions with a cash capitalization rate8 of 8.58% and a weighted average capitalization rate9 of 8.79%
Completed 25 multi-tenant lease renewals with a weighted-average new lease term of 5 years
High quality portfolio with 58% of tenants in single-tenant portfolio10 and 66% of the top 20 tenants portfolio-wide rated as investment grade or implied investment grade11
Annual rent escalators12 with a weighted-average of 1.2% per year provide contractually embedded rent growth


“Our third quarter results reflect the ongoing success of the last year, as we continue to execute on our initiatives to grow earnings and optimize our balance sheet,” said Michael Weil, CEO of AFIN. “We grew quarterly AFFO more than 30% year-over-year to $0.30 per share and continued lowering our ratio of Net Debt to Adjusted EBITDA, which is now 6.8x down from 8.1x last year. Subsequent to quarter end we also completed a $500 million unsecured corporate notes offering with favorable pricing, along with a recast and upsizing of our corporate credit facility. All of this progress provides additional flexibility to support future growth. During the quarter, we closed on over $86 million in acquisitions and we expect to end the year with over $200 million in acquisitions based on our forward pipeline. Since the fourth quarter of last year, we have increased revenue by 19%, grown cash NOI by 29% and increased AFFO per share while successfully navigating the pandemic, increasing occupancy in our multi-tenant portfolio, and enhancing both our team and our world-class portfolio.”
1


Financial Results    
Three Months Ended September 30,
(In thousands, except per share data)20212020
Revenue from tenants$91,915 $78,489 
 
Net loss attributable to common stockholders$(6,406)$(7,091)
Net loss per common share (a)
$(0.06)$(0.07)
 
FFO attributable to common stockholders
$30,282 $25,631 
FFO per common share (a)
$0.25 $0.24 
 
AFFO attributable to common stockholders$36,005 $25,465 
AFFO per common share (a)
$0.30 $0.23 
(a) All per share data based on 118,862,852 and 108,429,315 diluted weighted-average shares outstanding for the three months ended September 30, 2021 and 2020, respectively.
Real Estate Portfolio
The Company’s portfolio consisted of 968 net lease properties located in 47 states and the District of Columbia and comprised 20.1 million rentable square feet as of September 30, 2021. Portfolio metrics include:
93.2% leased, with 8.7 years remaining weighted-average lease term13
77.5% of leases have weighted-average contractual rent increases of 1.2% based on annualized straight-line rent
58% of single-tenant portfolio and 31% of multi-tenant anchor tenants annualized straight-line rent derived from investment grade or implied investment grade tenants
82% retail properties, 11% distribution properties and 7% office properties (based on an annualized straight-line rent)
71% of the retail portfolio focused on either service14 or experiential retail15 giving the Company strong alignment with “e-commerce resistant” real estate
Property Acquisitions
During the three months ended September 30, 2021, the Company acquired 32 properties for an aggregate contract purchase price of $86.5 million at a weighted average capitalization rate of 8.79%.

Property Dispositions
During the three months ended September 30, 2021, the Company disposed of three properties, for an aggregate contract price of $3.0 million. Further, as of October 31, 2021, the Company has executed eight PSAs to sell an additional eight properties for an aggregate contract price of $16.0 million and three LOIs to dispose of three properties for $2.2 million.

Capital Structure and Liquidity Resources
As of September 30, 2021 the Company had a total borrowing capacity under the credit facility of $494.1 million based on the value of the borrowing base under the credit facility, and, of this amount, $186.2 million was outstanding under the credit facility as of September 30, 2021 and $307.9 million remained available for future borrowings. As of September 30, 2021, the Company had $99.0 million of cash and cash equivalents. The Company’s net debt16 to gross asset value17 was 38.9%, with net debt of $1.7 billion.
The Company’s percentage of fixed rate debt was 89.7% as of September 30, 2021. The Company’s total combined debt had a weighted-average interest rate cost of 3.6%18, resulting in an interest coverage ratio of 3.6 times19.
Rent Collection Update
Third Quarter of 2021
For the third quarter of 2021, AFIN collected approximately 100% of the original cash rents that were due across the portfolio, including 100% of the original cash rent payable from the top 20 tenants in the portfolio (based on the total of third quarter original cash rent due across our portfolio) and 100% of the original cash rent payable in the single tenant portfolio and 100% of the original cash rent payable in the multi-tenant portfolio. Cash rent collected includes both contractual rents and deferred rents paid during the period4.


2


Footnotes/Definitions

1 Inclusive of a $10.4 million lease buyout fee recorded during the quarter even though cash was received after the end of the quarter
2 Represents ratio of net debt as of a particular date, to the Company’s calculation of its Adjusted EBITDA multiplied by four for the three months ended on that date. Annualized results include termination fee income of $10.4 million which was recorded in the third quarter of 2021. For the third quarter 2021, net debt represents total debt of $1.8 billion less cash and cash equivalents of $99.0 million as of September 30, 2021.
3 We calculate “original cash rent collections” by comparing original cash rent due under our lease agreements to the total amount of rent collected during the period, which includes both original cash rent due and payments of amounts deferred from prior periods. Eliminating the impact of deferred rent paid, we collected 99% of original cash rent due in the single-tenant portfolio, 97% of original cash rent due in the multi-tenant portfolio, 99% of original cash rent due in the total portfolio. Top 20 tenants based on third quarter 2021 original cash rent due. This information may not be indicative of future periods.
4 The impact of the COVID-19 pandemic on the Company’s future results of operations and liquidity will depend on the overall length and severity of the COVID-19 pandemic, which management is unable to predict.
5 Includes occupancy, measured by the percentage of square footage of which the tenant has taken possession of divided by the respective total rentable square feet, as of a particular date as well as all leases fully executed by both parties as of the same date where the tenant has yet to take possession as of such date. For the third quarter of 2021 and as of October 31, 2021, there are 15 additional leases executed where rent commences over time between the fourth quarter of 2021 and the first quarter of 2022 totaling approximately 122,000 square feet. For the fourth quarter of 2020 and as of January 31, 2021, there were four additional leases executed where rent commences over time between the first quarter of 2021 and the third quarter of 2021 totaling approximately 34,000 square feet.
6 For the third quarter of 2021, includes (i) all leases fully executed by both parties as of October 31, 2021, but after September 30, 2021 and (ii) all leases under negotiation with an executed letter of intent (“LOI”) by both parties as of October 31, 2021. This represents 15 executed leases totaling approximately 122,000 square feet and six LOIs totaling approximately 19,000 square feet. No lease terminations occurred during this period. There can be no assurance that LOIs will lead to definitive leases that will commence on their current terms, or at all. Leasing pipeline should not be considered an indication of future performance. For the fourth quarter of 2020, includes (i) all leases fully executed by both parties as of January 31, 2021, but after December 31, 2020 and (ii) all leases under negotiation with an executed LOI by both parties as of January 31, 2021. This represents six new leases totaling approximately 220,000 square feet, net of one lease termination for 5,000 square feet during this period.
7 Represents the contract purchase price and excludes acquisition costs which are capitalized per GAAP.
8 Cash 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 or leases. Cash capitalization rate is calculated by dividing this annualized cash rental income the property will generate (before debt service and depreciation and after fixed costs and variable costs) by the purchase price of the property. excluding acquisition costs. The weighted-average cash capitalization rate is based upon square feet.
9 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 or leases. 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) by the purchase price of the property, excluding acquisition costs. The weighted-average capitalization rate is based upon square feet.
10 Percentage of single-tenant portfolio tenants based on annualized straight-line rent as of September 30, 2021.
11 As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring a company’s probability of default. The term “parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of September 30, 2021. Based on annualized straight-line rent as of September 30, 2021, single-tenant portfolio tenants are 46.4% actual investment grade rated and 11.8% implied investment grade rated, top 20 tenants are 57% actual investment-grade rated and 9% implied investment-grade rated and anchor tenants in the multi-tenant portfolio are 21.6% actual investment grade rated and 9.4% implied investment grade rated.
12 Contractual rent increases include fixed percent or actual increases, or CPI-indexed increases.
13 The weighted-average is based on annualized straight-line rent as of September 30, 2021.
14 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
15 Experiential retail is defined as multi-tenant properties leased to tenants in the restaurant, discount retail, entertainment, salon/beauty, and grocery sectors, among others. The Company also refers to experiential retail as e-commerce defensive retail.
3


16 Total debt of $1.8 billion less cash and cash equivalents of $99.0 million as of September 30, 2021. Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of cash and cash equivalents.
17 Defined as the carrying value of total assets plus accumulated depreciation and amortization as of September 30, 2021.
18 Weighted based on the outstanding principal balance of the debt.
19 The 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, 2021. Adjusted EBITDA includes termination fee income of $10.4 million which was recorded in the third quarter of 2021.

4


Webcast and Conference Call

AFIN will host a webcast and call on November 4, 2021 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): 1-877-407-0792
International Dial-In: 1-201-689-8263
 
Conference Replay*
Domestic Dial-In (Toll Free): 1-844-512-2921
International Dial-In: 1-412-317-6671
Conference Number: 13724121
*Available from 2:00 p.m. ET on November 4, 2021 through February 4, 2022.

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. 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. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the potential adverse effects of the ongoing global COVID-19 pandemic, including actions taken to contain or treat COVID-19, on the Company, the Company’s tenants and the global economy and financial markets and that any potential future acquisition is subject to market conditions and capital availability and may not be identified or completed on favorable terms, or at all, as well as those risks and uncertainties set forth in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed on February 25, 2021 and all other filings with the SEC after that date, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports. Further, forward looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law.


5


Accounting Treatment of Rent Deferrals/Abatements  
The majority of the concessions granted to the Company's tenants as a result of the COVID-19 pandemic are rent deferrals or temporary rent abatements with the original lease term unchanged and collection of deferred rent deemed probable. The Company’s revenue recognition policy requires that it must be probable that the Company will collect virtually all of the lease payments due and does not provide for partial reserves, or the ability to assume partial recovery. In light of the COVID-19 pandemic, the FASB and SEC agreed that for leases where the total lease cash flows will remain substantially the same or less than those after the COVID-19 related effects, companies may choose to forgo the evaluation of the enforceable rights and obligations of the original lease contract as a practical expedient and account for rent concessions as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. As a result, rental revenue used to calculate Net Income and NAREIT FFO has not been, and the Company does not expect it to be, significantly impacted by these types of deferrals. In addition, since the Company currently believes that these deferral amounts are collectable, they have been excluded from the increase in straight-line rent for AFFO purposes the amounts recognized under GAAP relating to these types of rent deferrals. Conversely, for abatements where contractual rent has been reduced, the reduction in revenue is reflected over the remaining lease term for accounting purposes but represents a permanent reduction in revenue and the Company has, accordingly, reduced its AFFO.


Contacts:
Investors and Media:
Email: investorrelations@americanfinancetrust.com
Phone: (866) 902-0063
6


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

September 30,
2021
December 31,
2020
(Unaudited)
ASSETS 
Real estate investments, at cost:
Land
$746,355 $723,316 
Buildings, fixtures and improvements
2,943,693 2,830,508 
Acquired intangible lease assets
462,378 454,245 
Total real estate investments, at cost
4,152,426 4,008,069 
Less: accumulated depreciation and amortization
(723,792)(639,367)
Total real estate investments, net
3,428,634 3,368,702 
Cash and cash equivalents98,989 102,860 
Restricted cash15,863 10,537 
Deposits for real estate acquisitions752 137 
Derivative assets, at fair vale2,028 — 
Deferred costs, net17,216 16,663 
Straight-line rent receivable71,370 66,581 
Operating lease right-of-use assets18,318 18,546 
Prepaid expenses and other assets (including $140 and $1,939 due from related parties as of September 30, 2021 and December 31, 2020, respectively)41,998 23,941 
Assets held for sale— — 
Total assets
$3,695,168 $3,607,967 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Mortgage notes payable, net $1,587,462 $1,490,798 
Credit facility186,242 280,857 
Below market lease liabilities, net79,809 78,674 
Accounts payable and accrued expenses (including $3,404 and $273 due to related parties as of September 30, 2021 and December 31, 2020, respectively)33,256 25,210 
Operating lease liabilities19,209 19,237 
Derivative liabilities, at fair value— 123 
Deferred rent and other liabilities
9,976 9,794 
Dividends payable
6,000 3,675 
Total liabilities
1,921,954 1,908,368 
7.50% Series A cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 12,796,000 and 8,796,000 shares authorized, 7,933,711 and 7,842,008 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively79 79 
7.375% Series C cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 11,536,000 and 3,680,000 shares authorized, 4,594,498 and 3,535,700 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively46 35 
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 123,506,474 and 108,837,209 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively1,235 1,088 
Additional paid-in capital2,913,276 2,723,678 
Accumulated other comprehensive income (loss)2,028 (123)
Distributions in excess of accumulated earnings(1,150,789)(1,055,680)
Total stockholders’ equity
1,765,875 1,669,077 
Non-controlling interests7,339 30,522 
Total equity
1,773,214 1,699,599 
Total liabilities and equity
$3,695,168 $3,607,967 

7


American Finance Trust, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)
Three Months Ended September 30,
20212020
Revenue from tenants$91,915 $78,489 
Operating expenses: 
Asset management fees to related party9,880 6,918 
Property operating expense13,384 14,226 
Impairment of real estate investments4,554 — 
Acquisition, transaction and other costs [1]
3,426 1,507 
Equity-based compensation [2]
4,149 3,235 
General and administrative5,589 3,312 
Depreciation and amortization32,762 34,951 
Total operating expenses
73,744 64,149 
          Operating income before gain on sale of real estate investments18,171 14,340 
Gain on sale of real estate investments
478 2,178 
   Operating income
18,649 16,518 
Other (expense) income:
Interest expense(19,232)(20,871)
Other income18 871 
Total other expense, net
(19,214)(20,000)
Net loss(565)(3,482)
Net (income) loss attributable to non-controlling interests(4)10 
Allocation for preferred stock(5,837)(3,619)
Net loss attributable to common stockholders$(6,406)$(7,091)
Basic and Diluted Net Loss Per Share:
Net loss per share attributable to common stockholders — Basic and Diluted$(0.06)$(0.07)
Weighted-average shares outstanding — Basic and Diluted118,862,852 108,429,315 
Weighted-average shares outstanding — Diluted118,862,852 108,429,315 
______

[1] For the three months ended September 30, 2020, includes litigation costs related to AFIN’s 2017 merger with American Realty Capital - Retail Centers of America, Inc. (the “Merger”) of $0.2 million. Litigation costs related to the Merger incurred in the three months ended September 30, 2021 were not significant.
[2] For the three months ended September 30, 2021 and 2020, includes expense related to the Company’s restricted common shares of $0.3 million and $0.3 million, respectively.
8


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


Three Months Ended September 30,Three Months Ended June 30,
202120202021
Adjusted EBITDA
Net loss$(565)$(3,482)$(1,482)
Depreciation and amortization32,762 34,951 32,428 
Interest expense19,232 20,871 20,361 
Impairment of real estate investments4,554 — 91 
Acquisition, transaction and other costs [1]
3,426 1,507 136 
Equity-based compensation [2]
4,149 3,235 5,283 
Gain on sale of real estate investments
(478)(2,178)(11)
Other income (18)(871)(20)
Loss on non-designated derivatives   
Adjusted EBITDA [3]
63,062 54,033 56,786 
Asset management fees to related party9,880 6,918 7,922 
General and administrative5,589 3,312 3,540 
NOI [3]
78,531 64,263 68,248 
   Amortization of market lease and other intangibles, net(1,474)(1,652)(1,041)
Straight-line rent(1,392)(7,743)(1,759)
  Cash NOI [3]
$75,665 $54,868 $65,448 
Cash Paid for Interest:
   Interest expense$19,232 $20,871 20,361 
   Amortization of deferred financing costs, net and change in accrued interest
(2,192)(2,782)(2,361)
   Amortization of mortgage premiums and (discounts) on borrowings, net328 521 323 
   Total cash paid for interest$17,368 $18,610 18,323 
______

[1] For the three months ended September 30, 2020 includes litigation costs related to the Merger of $0.2 million. Litigation costs related to the Merger incurred in the three months ended September 30, 2021 were not significant.
[2] For the three months ended September 30, 2021 and 2020, includes expense related to the Company’s restricted common shares of $0.3 million and $0.3 million, respectively.
[3] For the three months ended September 30, 2021 includes income from a lease termination fee of $10.4 million, which is recorded in Revenue from tenants in the consolidated statements of operations.



9


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


Three Months Ended September 30,
20212020
Net loss attributable to common stockholders (in accordance with GAAP) $(6,406)$(7,091)
Impairment of real estate investments4,554 — 
   Depreciation and amortization32,762 34,951 
   Gain on sale of real estate investments(478)(2,178)
   Proportionate share of adjustments for non-controlling interest to arrive at FFO(150)(51)
FFO attributable to common stockholders [1]
30,282 25,631 
   Acquisition, transaction and other costs [2]
3,426 1,507 
   Legal fees and expenses — COVID-19 lease disputes [3]
44 16 
   Amortization of market lease and other intangibles, net(1,474)(1,652)
   Straight-line rent(1,392)(7,743)
   Straight-line rent (rent deferral agreements) [4]
(876)2,209 
   Amortization of mortgage (premiums) and discounts on borrowings, net(328)(521)
   Equity-based compensation [5]
4,149 3,235 
   Amortization of deferred financing costs, net and change in accrued interest2,192 2,782 
   Proportionate share of adjustments for non-controlling interest to arrive at AFFO(18)
AFFO attributable to common stockholders [1]
$36,005 $25,465 
______

[1] FFO and AFFO for the three months ended September 30, 2021 includes income from a lease termination fee of $10.4 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. The income from this termination fee was earned and recorded during the three months ended September 30, 2021, however, we did not receive the cash payment until October 1, 2021. Therefore, the cash payment is not part of our cash flows for the period ended September 30, 2021.
[2] Primarily includes prepayment costs incurred in connection with early debt extinguishment as well as litigation costs related to the Merger.
[3] Reflects legal costs incurred related to disputes with tenants due to store closures or other challenges resulting from COVID-19. The tenants involved in these disputes had not recently defaulted on their rent and, prior to the second and third quarters of 2020, had recently exhibited a pattern of regular payment. Based on the tenants involved in these matters, their history of rent payments, and the impact of the pandemic on current economic conditions, the Company views these costs as COVID-19-related and separable from our ordinary general and administrative expenses related to tenant defaults. The Company engaged counsel in connection with these issues separate and distinct from counsel the Company typically engages for tenant defaults. The amount reflects what the Company believes to be only those incremental legal costs above what the Company typically incurs for tenant-related dispute issues. The Company may continue to incur these COVID-19 related legal costs in the future.
[4] Represents amounts related to deferred rent pursuant to lease negotiations which qualify for FASB relief for which rent was deferred but not reduced. These amounts are included in the straight-line rent receivable on the Company's consolidated balance sheet but are considered to be earned revenue attributed to the current period for rent that was deferred for purposes of AFFO as they are expected to be collected. Accordingly, when the deferred amounts are collected, the amounts reduce AFFO. For rent abatements (including those qualified for FASB relief), where contractual rent has been reduced, the reduction in revenue is reflected over the remaining lease term for accounting purposes but represents a permanent reduction in revenue and the Company has, accordingly reduced its AFFO.
[5] Includes expense related to the amortization of the Company's restricted common shares and LTIP Units related to its multi-year outperformance agreements for all periods presented.

10


Non-GAAP Financial Measures
This release discusses the non-GAAP financial measures we use to evaluate our performance, 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 herein, does not reflect an adjustment for straight-line rent but AFFO does. 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. 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.

11


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 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 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.
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. In addition, legal fees and expense associated with COVID-19-related lease disputes involving certain tenants negatively impact our operating performance 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. By providing AFFO, we believe we are presenting useful information that can be used, among other things, to assess performance without the impact of transactions or other items that are not related to our portfolio of properties. AFFO presented by us may not be comparable to AFFO reported by other REITs that define AFFO differently. Furthermore, 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. FFO and AFFO for the three months ended September 30, 2021 includes income from a lease termination fee of $10.4 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. The income from this termination fee was earned and recorded during the three months ended September 30, 2021, however, we did not receive the cash payment until October 1, 2021. Therefore, the cash payment is not part of our cash flows for the period ended September 30, 2021.

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, 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
12


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.
Cash Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.

13
Document

EXHIBIT 99.2






American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (unaudited)





American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Table of Contents
ItemPage
Non-GAAP Definitions3
Key Metrics6
Consolidated Balance Sheets8
Consolidated Statements of Operations9
Non-GAAP Measures10
Debt Overview12
Future Minimum Lease Rents13
Top Ten Tenants14
Diversification by Property Type15
Diversification by Geography16
Lease Expirations17
Please note that totals may not add due to rounding.

Forward-looking Statements:
This supplemental package of American Finance Trust, Inc. (the "Company") includes “forward looking statements.” These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. In addition, words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions indicate a forward-looking statement, although not all forward-looking statements include these words. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the potential adverse effects of the ongoing global COVID-19 pandemic, including actions taken to contain or treat COVID-19, on the Company, the Company’s tenants and the global economy and financial markets, as well as those set forth in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2020 filed February 25, 2021 and all other filings filed with the Securities and Exchange Commission after that date. Further, 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, unless required by law.
Accounting Treatment of Rent Deferrals/Abatements  
The majority of the concessions granted to the Company's tenants as a result of the COVID-19 pandemic are rent deferrals or temporary rent abatements with the original lease term unchanged and collection of deferred rent deemed probable. The Company’s revenue recognition policy requires that it must be probable that the Company will collect virtually all of the lease payments due and does not provide for partial reserves, or the ability to assume partial recovery. In light of the COVID-19 pandemic, the FASB and SEC agreed that for leases where the total lease cash flows will remain substantially the same or less than those after the COVID-19 related effects, companies may choose to forgo the evaluation of the enforceable rights and obligations of the original lease contract as a practical expedient and account for rent concessions as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. As a result, rental revenue used to calculate Net Income and NAREIT FFO has not been, and the Company does not expect it to be, significantly impacted by these types of deferrals. In addition, since the Company currently believes that these deferral amounts are collectable, they have been excluded from the increase in straight-line rent for AFFO purposes the amounts recognized under GAAP relating to these types of rent deferrals. Conversely, for abatements where contractual rent has been reduced, the reduction is reflected over the remaining lease term for accounting purposes but represents a permanent reduction and the Company has, accordingly, reduced its AFFO.
2


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Non-GAAP Financial Measures
This section discusses non-GAAP financial measures we use to evaluate our performance, 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 herein, does not reflect an adjustment for straight-line rent but AFFO does. 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 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. 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 September 30, 2021 (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 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, 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.
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. In addition, legal fees and expense associated with COVID-19-related lease disputes involving certain tenants negatively impact our operating performance 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. By providing AFFO, we believe we are presenting useful information that can be used, among other things, to assess our performance without the impact of transactions or other items that are not related to our portfolio of properties. AFFO presented by us may not be comparable to AFFO reported by other REITs that define AFFO differently. Furthermore, 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. FFO and AFFO for the three months ended September 30, 2021 includes income from a lease termination fee of $10.4 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. The income from this termination fee was earned and recorded during the three months ended September 30, 2021, however, we did not receive the cash payment until October 1, 2021. Therefore, the cash payment is not part of our cash flows for the period ended September 30, 2021.

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, other non-cash items such as 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
4


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
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.
Cash Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.


5


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Key Metrics
As of and for the three months ended September 30, 2021
Financial Results (Amounts in thousands, except per share data)
Revenue from tenants
$91,915 
Net loss attributable to common stockholders
$(6,406)
Basic and diluted net loss per share attributable to common stockholders
$(0.06)
Cash NOI [1]
$75,665 
Adjusted EBITDA [1]
$63,062 
AFFO attributable to common stockholders [1]
$36,005 
Dividends declared on common stock [2]
$25,190 
Balance Sheet and Capitalization (Amounts in thousands, except ratios and percentages)
Gross asset value [3]
$4,418,960 
Net debt [4] [5]
$1,716,871 
Total consolidated debt [5]
$1,815,860 
Total assets
$3,695,168 
Liquidity [6]
$406,879 
Common shares outstanding as of September 30, 2021123,506 
Net debt to gross asset value
38.9 %
Net debt to adjusted EBITDA [1] (annualized based on quarterly results)
6.8 x
Weighted-average interest rate cost [7]
3.6 %
Weighted-average debt maturity (years) [8]
5.0 
Interest Coverage Ratio [9]
3.6 x
Real Estate PortfolioSingle-Tenant PortfolioMulti-Tenant PortfolioTotal Portfolio
Portfolio Metrics:
Real estate investments, at cost (in billions)
$2.8 $1.4 $4.2 
Number of properties
935 33 968 
Square footage (in millions)
12.9 7.2 20.1 
Annualized straight-line rent (in millions) [10]
$200.9 $84.5 $285.4 
Annualized straight-line rent per leased square foot
$16.2 $13.4 $15.3 
Occupancy [11]
96.2 %87.9 %93.2 %
Weighted-average remaining lease term (years) [12]
10.4 4.7 8.7 
% investment grade [13]
58.2 %N/AN/A
% of anchor tenants in multi-tenant portfolio that are investment grade [13] [14]
N/A31.0 %N/A
% of leases with rent escalators [15]
86.5 %56.1 %77.5 %
Average annual rent escalator [15]
1.3 %1.0 %1.2 %
——
[1] This Non-GAAP metric is reconciled below. Annualized results include termination fee income of $10.4 million which was recorded in the third quarter of 2021.
[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, 2021.
[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 cash and cash equivalents of $99.0 million as of September 30, 2021, and $307.9 million available for future borrowings under the Company's credit facility.
[7] Weighted based on the outstanding principal balance of the debt as of September 30, 2021.
[8] Weighted based on the outstanding principal balance of the debt as of September 30, 2021 and does not reflect any changes to maturity dates subsequent to
September 30, 2021.
6


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
[9] The interest coverage ratio is calculated by dividing adjusted EBITDA for the applicable quarter by cash paid for interest (calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net). Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations. Adjusted EBITDA includes termination fee income of $10.4 million which was recorded in the third quarter of 2021. 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, 2021.
[11] Only includes leases which have commenced and were taken possession by the tenant as of September 30, 2021.
[12] The weighted-average remaining lease term (years) is based on annualized 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. The term “parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of September 30, 2021. The weighted averages are based on straight-line rent. Single-tenant portfolio tenants are 46.4% actual investment grade rated and 11.8% 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 21.6% actual investment grade rated and 9.4% implied investment grade rated.
[15] Based on annualized straight-line rent as of September 30, 2021. Contractual rent increases include fixed percent or actual increases, or CPI-indexed
increases.
7

American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021

Consolidated Balance Sheets
Amounts in thousands, except share and per share data
September 30,
2021
December 31,
2020
(Unaudited)
ASSETS 
Real estate investments, at cost:
Land$746,355 $723,316 
Buildings, fixtures and improvements2,943,693 2,830,508 
Acquired intangible lease assets462,378 454,245 
Total real estate investments, at cost4,152,426 4,008,069 
Less: accumulated depreciation and amortization(723,792)(639,367)
Total real estate investments, net3,428,634 3,368,702 
Cash and cash equivalents98,989 102,860 
Restricted cash15,863 10,537 
Deposits for real estate investments752 137 
Derivative assets, at fair vale2,028 — 
Deferred costs, net17,216 16,663 
Straight-line rent receivable71,370 66,581 
Operating lease right-of-use assets18,318 18,546 
Prepaid expenses and other assets (including $140 and $1,939 due from related parties as of September 30, 2021 and December 31, 2020, respectively)41,998 23,941 
Assets held for sale— — 
Total assets$3,695,168 $3,607,967 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Mortgage notes payable, net $1,587,462 $1,490,798 
Credit facility186,242 280,857 
Below market lease liabilities, net79,809 78,674 
Accounts payable and accrued expenses (including $3,404 and $273 due to related parties as of September 30, 2021 and December 31, 2020, respectively)33,256 25,210 
Operating lease liabilities19,209 19,237 
Derivative liabilities, at fair value— 123 
Deferred rent and other liabilities9,976 9,794 
Dividends payable6,000 3,675 
Total liabilities1,921,954 1,908,368 
7.50% Series A cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 12,796,000 and 8,796,000 shares authorized, 7,933,711 and 7,842,008 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively79 79 
7.375% Series C cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 11,536,000 and 3,680,000 shares authorized, 4,594,498 and 3,535,700 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively46 35 
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 123,506,474 and 108,837,209 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively1,235 1,088 
Additional paid-in capital2,913,276 2,723,678 
Accumulated other comprehensive income (loss)2,028 (123)
Distributions in excess of accumulated earnings(1,150,789)(1,055,680)
Total stockholders' equity1,765,875 1,669,077 
Non-controlling interests7,339 30,522 
Total equity1,773,214 1,699,599 
Total liabilities and equity$3,695,168 $3,607,967 

8


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Consolidated Statements of Operations
Amounts in thousands, except share and per share data
 Three Months Ended
September 30,
2021
June 30,
2021
March 31, 2021December 31,
2020
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Revenue from tenants$91,915 $81,577 $79,187 $77,237 
 Operating expenses:   
Asset management fees to related party9,880 7,922 7,321 7,088 
Property operating expense13,384 13,329 13,439 13,247 
Impairment of real estate investments4,554 91 — 1,408 
Acquisition, transaction and other costs [1]
3,426 136 42 241 
Equity-based compensation [2]
4,149 5,283 4,347 3,343 
General and administrative5,589 3,540 6,449 4,179 
Depreciation and amortization32,762 32,428 32,319 32,730 
Total operating expenses
73,744 62,729 63,917 62,236 
Operating income (loss) before gain on sale of real estate investments18,171 18,848 15,270 15,001 
Gain on sale of real estate investments478 11 286 — 
Operating income
18,649 18,859 15,556 15,001 
Other (expense) income:
Interest expense(19,232)(20,361)(19,334)(19,689)
Other income18 20 24 20 
Loss on non-designated derivative— — — (9)
Total other expense, net
(19,214)(20,341)(19,310)(19,678)
Net loss (565)(1,482)(3,754)(4,677)
Net (income) loss attributable to non-controlling interests(4)
Allocation for preferred stock(5,837)(5,925)(5,663)(3,931)
Net loss attributable to common stockholders
$(6,406)$(7,405)$(9,411)$(8,603)
Basic and Diluted Net Loss Per Share:
Net loss per share attributable to common stockholders — Basic and Diluted
$(0.06)$(0.07)$(0.09)$(0.08)
Weighted-average shares outstanding — Basic
118,862,852 110,898,056 108,436,571 108,436,329 
Weighted-average shares outstanding — Diluted
118,862,852 110,898,056 108,436,571 108,436,329 
——
[1] For the three months ended December 31, 2020 includes litigation costs related to the Merger of $0.1 million. Litigation costs related to the Merger incurred in the three months ended September 30, 2021, June 30, 2021 and March 31, 2021 were not significant.
[2] For the three months ended September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, includes equity-based compensation expense related to the Company's restricted common shares of $0.3 million, $0.4 million, $1.4 million and $0.4 million, respectively.

9


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Non-GAAP Measures
Amounts in thousands
 Three Months Ended
September 30,
2021
June 30,
2021
March 31, 2021December 31,
2020
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
EBITDA:
Net loss$(565)$(1,482)$(3,754)$(4,677)
Depreciation and amortization32,762 32,428 32,319 32,730 
Interest expense19,232 20,361 19,334 19,689 
   EBITDA [1]
51,429 51,307 47,899 47,742 
Impairment of real estate investments4,554 91 — 1,408 
Acquisition, transaction and other costs [2]
3,426 136 42 241 
Equity-based compensation [3]
4,149 5,283 4,347 3,343 
Gain on sale of real estate investments(478)(11)(286)— 
Other income (18)(20)(24)(20)
Loss on non-designated derivatives— — — 
   Adjusted EBITDA [1]
63,062 56,786 51,978 52,723 
Asset management fees to related party9,880 7,922 7,321 7,088 
General and administrative5,589 3,540 6,449 4,179 
   NOI [1]
78,531 68,248 65,748 63,990 
   Amortization of market lease and other intangibles, net
(1,474)(1,041)(935)(1,216)
Straight-line rent(1,392)(1,759)(1,727)(4,060)
  Cash NOI [1]
$75,665 $65,448 $63,086 $58,714 
Cash Paid for Interest:
   Interest expense$19,232 $20,361 $19,334 $19,689 
   Amortization of deferred financing costs, net and change in accrued interest
(2,192)(2,361)(2,469)(2,362)
   Amortization of mortgage premiums and (discounts) on borrowings, net328 323 321 456 
   Total cash paid for interest$17,368 $18,323 $17,186 $17,783 
——
[1] For the three months ended September 30, 2021 includes income from a lease termination fee of $10.4 million, which is recorded in Revenue from tenants in the consolidated statements of operations.
[2] For the three months ended December 31, 2020 includes litigation costs related to the Merger of $0.1 million. Litigation costs related to the Merger incurred in the three months ended September 30, 2021, June 30, 2021 and March 31, 2021 were not significant.
[3] For the three months ended September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, includes equity-based compensation expense related to the Company's restricted common shares of $0.3 million, $0.4 million, $1.4 million and $0.4 million, respectively.







10


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Non-GAAP Measures
Amounts in thousands, except per share data
 Three Months Ended
September 30,
2021
June 30,
2021
March 31, 2021December 31,
2020
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Funds from operations (FFO):
Net loss attributable to common stockholders (in accordance with GAAP)$(6,406)$(7,405)$(9,411)$(8,603)
Impairment of real estate investments4,554 91 — 1,408 
Depreciation and amortization32,762 32,428 32,319 32,730 
Gain on sale of real estate investments (478)(11)(286)— 
Proportionate share of adjustments for non-controlling interest to arrive at FFO(150)(50)(51)(54)
FFO attributable to common stockholders [1]
30,282 25,053 22,571 25,481 
Acquisition, transaction and other costs [2]
3,426 136 42 241 
Legal fees and expenses — COVID-19 lease disputes [3]
44 109 69 11 
Amortization of market lease and other intangibles, net(1,474)(1,041)(935)(1,216)
Straight-line rent(1,392)(1,759)(1,727)(4,060)
Straight-line rent (rent deferral agreements) [4]
(876)(1,124)(975)358 
Amortization of mortgage (premiums) and discounts on borrowings, net(328)(323)(321)(456)
Loss non-designated derivatives— — — 
Equity-based compensation [5]
4,149 5,283 4,347 3,343 
Amortization of deferred financing costs, net and change in accrued interest2,192 2,361 2,469 2,362 
Proportionate share of adjustments for non-controlling interest to arrive at AFFO(18)(6)(5)— 
AFFO attributable to common stockholders [1]
$36,005 $28,689 $25,535 $26,073 
Weighted-average common shares outstanding 118,863 110,898 108,437 108,436 
Net loss per share attributable to common stockholders — Basic and Diluted$(0.06)$(0.07)$(0.09)$(0.08)
FFO per common share$0.25 $0.23 $0.21 $0.23 
AFFO per common share$0.30 $0.26 $0.24 $0.24 
Dividends declared [6]
$25,190 $23,054 $23,043 $— 
——
[1] FFO and AFFO for the three months ended September 30, 2021 includes income from a lease termination fee of $10.4 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. The income from this termination fee was earned and recorded during the three months ended September 30, 2021, however, we did not receive the cash payment until October 1, 2021. Therefore, the cash payment is not part of our cash flows for the period ended September 30, 2021.
[2] Primarily includes prepayment costs incurred in connection with early debt extinguishment as well as litigation costs related to the Merger.
[3] Reflects legal costs incurred related to disputes with tenants due to store closures or other challenges resulting from COVID-19. The tenants involved in these disputes had not recently defaulted on their rent and, prior to the second and third quarters of 2020, had recently exhibited a pattern of regular payment. Based on the tenants involved in these matters, their history of rent payments, and the impact of the pandemic on current economic conditions, the Company views these costs as COVID-19-related and separable from its ordinary general and administrative expenses related to tenant defaults. The Company engaged counsel in connection with these issues separate and distinct from counsel the Company typically engages for tenant defaults. The amount reflects what the Company believes to be only those incremental legal costs above what the Company typically incurs for tenant-related dispute issues. The Company may continue to incur these COVID-19 related legal costs in the future.
[4] Represents amounts related to deferred rent pursuant to lease negotiations which qualify for FASB relief for which rent was deferred but not reduced. These amounts are included in the straight-line rent receivable on the Company's consolidated balance sheet but are considered to be earned revenue attributed to the current period for which rent was deferred for purposes of AFFO as they are expected to be collected. Accordingly, when the deferred amounts are collected, the amounts reduce AFFO. For rent abatements (including those qualified for FASB relief), where contractual rent has been reduced, the reduction is reflected over the remaining lease term for accounting purposes but represents a permanent reduction and the Company has, accordingly reduced its AFFO.
[5] Includes expense related to the amortization of the Company's restricted common shares and LTIP Units related to its multi-year outperformance agreements for all periods presented.
[6] Represents dividends declared to common stockholders. In August, 2020, the Company's board of directors approved a change to the Company's dividend policy from a monthly basis to a paying dividends on a quarterly basis in arrears on the 15th day of each month following a fiscal quarter. As a result, no dividend was declared in the fourth quarter of 2020. This change affected the frequency of dividend payments only and did not impact the annualized dividend rate on Class A common stock of $0.85.
11


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Debt Overview
As of September 30, 2021
Amounts in thousands, except ratios and percentages
Year of MaturityNumber of Encumbered Properties
Weighted-Average Debt Maturity (Years) [3]
Weighted-Average Interest Rate [3][4]
Total Outstanding Balance [5]
Percent
Non-Recourse Debt
2021 (remainder)— — — %$902 
2022 — — — %3,699 
2023 — — — %2,575 
2024— — — %1,590 
2025369 3.9 3.7 %841,611 
Thereafter 417 7.0 3.8 %779,241 
Total Non-Recourse Debt  786 5.3 3.8 %1,629,618 90 %
Recourse Debt [1]
   Credit Facility [2]
1.6 2.2 %186,242 
Total Recourse Debt1.6 2.2 %186,242 10 %
Total Debt5.0 3.6 %$1,815,860 100 %
——
[1] Recourse debt is debt that is guaranteed by the Company.
[2] The maturity date of the Company's credit facility is April 2022. 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 September 30, 2021, the Company’s total combined debt was 89.7% fixed rate and 10.3% floating rate.
[5] Excludes the effect of deferred financing costs, net and mortgage premiums and discounts.
12


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Future Minimum Base Lease Rents Due to the Company
As of September 30, 2021
Amounts in thousands
Future Minimum
Base Rent Payments
[1]
2021 (remainder)$69,143 
2022274,645 
2023261,254 
2024245,207 
2025227,540 
2026210,747 
Thereafter1,267,169 
Total$2,555,705 
——
[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 September 30, 2021 (Unaudited)
Top Ten Tenants (by annualized straight-line rent)
As of September 30, 2021
Amounts in thousands, except percentages
Tenant / Lease GuarantorProperty TypeTenant Industry
Annualized SL Rent [1]
SL Rent Percent
Remaining Lease Term [2]
Investment Grade [3]
Sanofi USOfficePharmaceuticals$17,143 %11.3 Yes
Truist BankRetailRetail Banking15,419 %8.0 Yes
FreseniusRetailHealthcare14,554 %7.0 Yes
Mountain ExpressRetailGas/Convenience13,237 %16.9 No
AmeriColdDistributionRefrigerated Warehousing12,720 %6.0 Yes
Tenants 6 - 10VariousVarious38,165 13 %5.3 3 of 5 - Yes
Subtotal    111,238 38 %9.7 
     
Remaining portfolio     174,477 62 %
     
Total Portfolio$285,715 100 %
——
[1] Calculated using the most recent available lease terms as of September 30, 2021.
[2] Based on straight-line rent as of September 30, 2021.
[3] The top ten tenants are 67.0% actual investment grade rated and 7.9% implied investment grade rated (see page 7 for definition of Investment Grade).






14


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Diversification by Property Type
As of September 30, 2021
Amounts in thousands, except percentages
Total Portfolio
Property Type
Annualized SL Rent [1]
SL Rent PercentSquare FeetSq. ft. Percent
Retail (including Power and Lifestyle Centers)
$232,766 82 %13,874 69 %
Distribution 31,740 11 %4,735 24 %
Office  21,209 %1,442 %
Total $285,715 100 %20,051 100 %
 
Retail Properties
Tenant Type
Annualized SL Rent [1]
SL Rent Percent
Square Feet [2]
Sq. ft. Percent
Single-Tenant:
Service-oriented [3]
$122,350 53 %4,073 31 %
Traditional retail [4]
 25,910 11 %2,553 20 %
Multi-Tenant:
Experiential/e-commerce defensive [5]
41,921 18 %2,543 20 %
Other traditional retail 42,585 18 %3,757 29 %
Total $232,766 100 %12,926 100 %
——
[1] Calculated using the most recent available lease terms as of September 30, 2021.
[2] Represents total rentable square feet of retail properties occupied as of September 30, 2021.
[3] Includes single-tenant retail properties leased to tenants in the retail banking, restaurant, grocery, pharmacy, gas/convenience, fitness, healthcare, and auto services sectors.
[4] Includes single-tenant retail properties leased to tenants in the discount retail, home improvement, furniture, specialty retail, auto retail, sporting goods sectors, wireless/electronics, department stores and home improvement.
[5] Represents multi-tenant properties leased to tenants in the restaurant, discount retail, entertainment, salon/beauty, and grocery sectors, among others.





15


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Diversification by Geography
As of September 30, 2021
Amounts in thousands, except percentages
Total Portfolio
Region
Annualized SL Rent [1]
SL Rent PercentSquare FeetSq. ft. Percent
Alabama $14,747 5.2 %1,405 7.0 %
Alaska409 0.1 %0.1 %
Arizona352 0.1 %22 0.1 %
Arkansas2,387 0.8 %88 0.4 %
California228 0.1 %0.1 %
Colorado776 0.3 %52 0.3 %
Connecticut1,801 0.6 %98 0.5 %
Delaware176 0.1 %0.1 %
District of Columbia236 0.1 %0.1 %
Florida19,090 6.7 %1,203 6.0 %
Georgia31,232 10.9 %1,963 9.7 %
Idaho331 0.1 %14 0.1 %
Illinois10,378 3.6 %741 3.7 %
Indiana2,107 0.7 %91 0.5 %
Iowa2,662 0.9 %166 0.8 %
Kansas4,044 1.4 %279 1.4 %
Kentucky10,432 3.7 %664 3.3 %
Louisiana6,513 2.3 %354 1.8 %
Maine349 0.1 %27 0.1 %
Maryland858 0.3 %24 0.1 %
Massachusetts9,269 3.2 %992 4.9 %
Michigan9,044 3.2 %501 2.5 %
Minnesota10,485 3.7 %761 3.8 %
Mississippi5,815 2.0 %252 1.3 %
Missouri5,679 2.0 %486 2.4 %
Montana1,184 0.4 %42 0.2 %
Nebraska495 0.2 %12 0.1 %
Nevada6,921 2.4 %408 2.0 %
New Hampshire127 — %0.1 %
New Jersey18,655 6.5 %817 4.2 %
New Mexico629 0.2 %47 0.2 %
New York2,774 1.0 %227 1.1 %
North Carolina18,373 6.4 %1,524 7.5 %
North Dakota1,222 0.4 %170 0.8 %
Ohio17,664 6.2 %1,024 5.1 %
Oklahoma10,017 3.5 %834 4.2 %
Pennsylvania8,892 3.1 %540 2.7 %
Rhode Island2,495 0.9 %156 0.8 %
South Carolina16,696 5.8 %1,606 7.9 %
South Dakota339 0.1 %47 0.1 %
Tennessee4,361 1.5 %313 1.6 %
Texas13,750 4.8 %839 4.1 %
Utah1,087 0.4 %41 0.2 %
Vermont84 — %22 0.1 %
Virginia3,640 1.3 %212 1.1 %
West Virginia3,077 1.1 %261 1.3 %
Wisconsin2,515 0.9 %627 3.0 %
Wyoming1,318 0.5 %66 0.2 %
Total $285,715 100 %20,051 100 %
[1] Calculated using the most recent available lease terms as of September 30, 2021.  

16


American Finance Trust, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)
Lease Expirations
As of September 30, 2021
Amounts in thousands, except ratios and percentages
Year of ExpirationNumber of Leases Expiring
Annualized SL Rent [1]
Annualized SL Rent PercentLeased Square FeetPercent of Leased Square Feet Expiring
(In thousands)(In thousands)
2021 (Remaining)16$2,816 1.0 %273 1.5 %
2022658,068 2.8 %829 4.4 %
202311417,350 6.1 %1,240 6.6 %
202411116,768 5.9 %1,268 6.8 %
202512622,579 7.9 %1,713 9.2 %
20269823,385 8.2 %1,847 9.9 %
202712536,971 12.9 %3,912 20.9 %
20288812,839 4.5 %969 5.2 %
202913422,826 8.0 %1,351 7.2 %
20305312,180 4.3 %929 5.0 %
20316213,513 4.7 %653 3.5 %
20323423,892 8.4 %1,175 6.3 %
2033374,717 1.7 %180 1.0 %
2034162,320 0.8 %135 0.7 %
2035123,735 1.3 %91 0.5 %
2036323,246 1.1 %196 1.0 %
Thereafter (>2036)37358,510 20.4 %1,937 10.3 %
Total1,496$285,715 100 %18,698 100 %
——
[1] Calculated using the most recent available lease terms as of September 30, 2021.


17