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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): May 5, 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 May 5, 2021, American Finance Trust, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended March 31, 2021, and supplemental financial information for the quarter ended March 31, 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 May 5, 2021, the Company issued a press release announcing its results of operations for the quarter ended March 31, 2021, and supplemental financial information for the quarter ended March 31, 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 May 5, 2021
Quarterly supplemental information for the quarter ended March 31, 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: May 5, 2021


Document


EXHIBIT 99.1
https://cdn.kscope.io/0ee328ee10d617a8974b0448d1244244-afinlogo1.jpg

FOR IMMEDIATE RELEASE
 

AMERICAN FINANCE TRUST ANNOUNCES FIRST QUARTER 2021 RESULTS

  
New York, May 5, 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 first quarter ended March 31, 2021.
 
First Quarter 2021 and Subsequent Event Highlights    

Revenue grew 6.2% to $79.2 million from $74.6 million for the first quarter 2020
Net loss attributable to common stockholders was $9.4 million as compared to $9.2 million for the first quarter 2020
Cash net operating income (“NOI”) grew 6.9% to $63.1 million from $59.0 million for the first quarter 2020
Funds from Operations (“FFO”) of $22.6 million, or $0.21 per diluted share compared to $23.7 million, or $0.22 per diluted share, for the first quarter 2020
Adjusted Funds from Operations (“AFFO”) grew to $25.5 million or $0.24 per share from $25.2 million, or $0.23 per diluted share, in the prior year first quarter
Dividends of $23.0 million or $0.21 per share
Collected approximately 100% of original cash rent in first quarter 2021, including 100% in single tenant portfolio, 99% in the multi-tenant portfolio, and 100% among the top 20 tenants1,2
Portfolio Occupancy of 94.9%, up from 93.9% in fourth quarter 2020
Multi-tenant Executed Occupancy3 and Leasing Pipeline4 are expected to add $1.6 million of annual rent and 122,000 square feet to the portfolio over time as executed leases commence
Executed Occupancy and Leasing Pipeline are expected to increase multi-tenant occupancy to 88.2% over time, exceeding Executed Occupancy of 87.3% reported as of March 31, 2020, assuming no other changes
Total year-to-date closed and pipeline acquisitions of $72 million5 with a cash capitalization rate6 of 7.2% and a weighted average capitalization rate7 of 8.2%
High quality portfolio with 61% of tenants in single-tenant portfolio8 and 70% of the top 20 tenants portfolio-wide rated as investment grade or implied investment grade9
Annual rent escalators10 with a weighted-average of 1.3% per year provide contractually embedded rent growth
Improved balance sheet year-over-year, with weighted average interest rate of 3.8%, down from 4.2%, weighted-average debt maturity of 4.5 years up from 3.5 years and 82.6% of debt fixed-rate compared to 73.2% a year ago

“As the economy continues to recover, we are off to a strong start in 2021. We continue to grow and optimize our intentionally constructed portfolio of single-tenant and multi-tenant assets focused on necessity-retail properties,” said Michel Weil, CEO of AFIN. “We have maintained the strength of our portfolio the past year and our performance metrics are returning to or have exceeded pre-pandemic levels, including portfolio occupancy, Cash NOI, and per-share AFFO. Our balance sheet, with a lower weighted-average interest rate and longer weighted-average remaining debt maturity than a year ago, is optimized to support our approach to growing the portfolio through high-quality, accretive acquisitions. Supplemented by increased leasing activity, we believe AFIN is well positioned to continue delivering strong results that will generate value creation for our shareholders.”
1


Financial Results    
Three Months Ended March 31,
(In thousands, except per share data)20212020
Revenue from tenants$79,187 $74,564 
 
Net loss attributable to common stockholders$(9,411)$(9,153)
Net loss per common share (a)
$(0.09)$(0.08)
 
FFO attributable to common stockholders
$22,571 $23,690 
FFO per common share (a)
$0.21 $0.22 
 
AFFO attributable to common stockholders$25,535 $25,237 
AFFO per common share (a)
$0.24 $0.23 
(a) All per share data based on 108,436,571 and 108,364,082 diluted weighted-average shares outstanding for the three months ended March 31, 2021 and 2020, respectively.
Real Estate Portfolio
The Company’s portfolio consisted of 925 net lease properties located in 46 states and the District of Columbia and comprised 19.7 million rentable square feet as of March 31, 2021. Portfolio metrics include:
94.9% leased, with 8.7 years remaining weighted-average lease term11
77.6% of leases have weighted-average contractual rent increases of 1.3% based on annualized straight-line rent
61% of single-tenant portfolio and 31% of multi-tenant anchor tenants annualized straight-line rent derived from investment grade or implied investment grade tenants
80% retail properties, 11% distribution properties and 9% office properties (based on an annualized straight-line rent)
71% of the retail portfolio focused on either service12 or experiential retail13 giving the Company strong alignment with “e-commerce resistant” real estate
Property Acquisitions
During the three months ended March 31, 2021, the Company acquired seven properties for an aggregate contract purchase price of $36.9 million at a weighted average capitalization rate of 8.8%.
Capital Structure and Liquidity Resources
As of March 31, 2021 the Company had a total borrowing capacity under the credit facility of $415.1 million based on the value of the borrowing base under the credit facility, and, of this amount, $280.9 million was outstanding under the credit facility as of March 31, 2021 and $134.3 million remained available for future borrowings. As of March 31, 2021, the Company had $84.2 million of cash and cash equivalents. The Company’s net debt14 to gross asset value15 was 40.4%, with net debt of $1.7 billion.
The Company’s percentage of fixed rate debt was 82.6% as of March 31, 2021. The Company’s total combined debt had a weighted-average interest rate cost of 3.8%16, resulting in an interest coverage ratio of 3.0 times17.
Rent Collection Update
First Quarter of 2021
For the first 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 first quarter original cash rent due across our portfolio) and 100% of the original cash rent payable in the single tenant portfolio and 99% of the original cash rent payable in the multi-tenant portfolio. Cash rent collected includes both contractual rents and deferred rents paid during the period.1



2



Footnotes/Definitions

1 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, 95% of original cash rent due in the multi-tenant portfolio, 98% of original cash rent due in the total portfolio. Top 20 tenants based on first quarter 2021 cash rent due. This information may not be indicative of future periods.
2 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.
3 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 April 30, 2021 as well as all leases fully executed by both parties as of April 30, 2031 where the tenant has yet to take possession as of such date. There are eight additional leases executed as of March 31, 2021 where rent commences over time between the second quarter of 2021 and the first quarter of 2022 totaling approximately 96,000 square feet.
4 Includes (i) all leases fully executed by both parties as of April 30, 2021, but after March 31, 2021 and (ii) all leases under negotiation with an executed non-binding letter of intent (“LOI”) by both parties as of April 30, 2021. This represents two executed leases where rent commences over time between the third quarter of 2021 and the fourth quarter of 2021 totaling approximately 11,000 square feet and two LOIs totaling 21,000 square feet, net of one lease termination for 5,000 square feet after March 31, 2021. 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.
5 Represents the contract purchase price and excludes acquisition costs which are capitalized per GAAP. For the three months ended March 31, 2021, capitalized acquisition costs were $0.3 million. Includes pending acquisitions with contract purchase price of $35.1 million that are subject to conditions and may not be completed on their currently contemplated terms, or at all.
6 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.
7 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.
8 Percentage of single-tenant portfolio tenants based on annualized straight-line rent as of March 31, 2021.
9 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 March 31, 2021. Based on annualized straight-line rent as of March 31, 2021, single-tenant portfolio tenants are 49.6% actual investment grade rated and 11.0% implied investment grade rate. Anchor tenants in the multi-tenant portfolio are 21.4% actual investment grade rated and 9.3% implied investment grade rated.
10 Contractual rent increases include fixed percent or actual increases, or CPI-indexed increases.
11 The weighted-average is based on annualized straight-line rent as of March 31, 2021.
12 Service retail is defined as single-tenant retail properties leased to tenants in the retail banking, restaurant, grocery, pharmacy, gas/convenience, healthcare, and auto services sectors
13 Experiential retail is defined as multi-tenant properties leased to tenants in the restaurant, discount retail, entertainment, salon/beauty, and grocery sectors, among others.
14 Total debt of $1.8 billion less cash and cash equivalents of $84.2 million as of March 31, 2021. Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of cash and cash equivalents.
15 Defined as the carrying value of total assets plus accumulated depreciation and amortization as of March 31, 2021.
16 Weighted based on the outstanding principal balance of the debt.
17 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 March 31, 2021.
3


Webcast and Conference Call

AFIN will host a webcast and call on May 6, 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): 1-855-327-6837
International Dial-In: 1-631-891-4304
 
Conference Replay*
Domestic Dial-In (Toll Free): 1-844-512-2921
International Dial-In: 1-412-317-6671
Conference Number: 10014349 
*Available from 2:00 p.m. ET on May 6, 2021 through August 6, 2021.

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.


4


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
5


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

March 31,
2021
December 31,
2020
(Unaudited)
ASSETS 
Real estate investments, at cost:
Land
$726,599 $723,316 
Buildings, fixtures and improvements
2,862,046 2,830,508 
Acquired intangible lease assets
453,220 454,245 
Total real estate investments, at cost
4,041,865 4,008,069 
Less: accumulated depreciation and amortization
(666,683)(639,367)
Total real estate investments, net
3,375,182 3,368,702 
Cash and cash equivalents84,214 102,860 
Restricted cash14,314 10,537 
Deposits for real estate acquisitions187 137 
Derivative assets, at fair vale2,361 — 
Deferred costs, net17,926 16,663 
Straight-line rent receivable68,378 66,581 
Operating lease right-of-use assets18,422 18,546 
Prepaid expenses and other assets (including $758 and $1,939 due from related parties as of March 31, 2021 and December 31, 2020, respectively)24,634 23,941 
Total assets
$3,605,618 $3,607,967 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Mortgage notes payable, net $1,491,968 $1,490,798 
Credit facility280,857 280,857 
Below market lease liabilities, net77,109 78,674 
Accounts payable and accrued expenses (including $1,788 and $273 due to related parties as of March 31, 2021 and December 31, 2020, respectively)30,296 25,210 
Operating lease liabilities19,226 19,237 
Derivative liabilities, at fair value— 123 
Deferred rent and other liabilities
11,171 9,794 
Dividends payable
5,892 3,675 
Total liabilities
1,916,519 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 March 31, 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, 4,099,801 and 3,535,700 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively41 35 
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 108,872,337 and 108,837,209 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively1,089 1,088 
Additional paid-in capital2,740,648 2,723,678 
Accumulated other comprehensive income (loss)2,361 (123)
Distributions in excess of accumulated earnings(1,088,559)(1,055,680)
Total stockholders’ equity
1,655,659 1,669,077 
Non-controlling interests33,440 30,522 
Total equity
1,689,099 1,699,599 
Total liabilities and equity
$3,605,618 $3,607,967 

6


American Finance Trust, Inc.
Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)
Three Months Ended March 31,
20212020
Revenue from tenants$79,187 $74,564 
Operating expenses: 
Asset management fees to related party7,321 6,905 
Property operating expense13,439 12,282 
Acquisition, transaction and other costs [1]
42 452 
Equity-based compensation [2]
4,347 3,211 
General and administrative6,449 5,328 
Depreciation and amortization32,319 34,335 
Total operating expenses
63,917 62,513 
          Operating income before gain on sale of real estate investments15,270 12,051 
Gain on sale of real estate investments
286 1,440 
   Operating income
15,556 13,491 
Other (expense) income:
Interest expense(19,334)(19,106)
Other income24 72 
Total other expense, net
(19,310)(19,034)
Net loss(3,754)(5,543)
Net loss attributable to non-controlling interests
Allocation for preferred stock(5,663)(3,619)
Net loss attributable to common stockholders$(9,411)$(9,153)
Basic and Diluted Net Loss Per Share:
Net loss per share attributable to common stockholders — Basic and Diluted$(0.09)$(0.08)
Weighted-average shares outstanding — Basic and Diluted108,436,571 108,364,082 
______

[1] For the three months ended March 31, 2020, includes litigation costs related to AFIN’s 2017 merger with American Realty Capital - Retail Centers of America, Inc. (the “Merger”) of $0.3 million. Litigation costs related to the Merger incurred in the three months ended March 31, 2021 were not significant.
[2] For the three months ended March 31, 2021 and 2020, includes expense related to the Company’s restricted common shares of $1.4 million and $0.2 million, respectively.
7


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


Three Months Ended March 31,
20212020
Adjusted EBITDA
Net loss$(3,754)$(5,543)
Depreciation and amortization32,319 34,335 
Interest expense19,334 19,106 
Acquisition, transaction and other costs [1]
42 452 
Equity-based compensation [2]
4,347 3,211 
Gain on sale of real estate investments
(286)(1,440)
Other income (24)(72)
Adjusted EBITDA 51,978 50,049 
Asset management fees to related party7,321 6,905 
General and administrative6,449 5,328 
NOI 65,748 62,282 
   Amortization of market lease and other intangibles, net(935)(992)
Straight-line rent(1,727)(2,265)
  Cash NOI$63,086 $59,025 
Cash Paid for Interest:
   Interest expense$19,334 $19,106 
   Amortization of deferred financing costs, net and change in accrued interest
(2,469)(1,712)
   Amortization of mortgage discounts and premiums on borrowings321 560 
   Total cash paid for interest$17,186 $17,954 
______

[1] For the three months ended March 31, 2020 includes litigation costs related to the Merger of $0.3 million. Litigation costs related to the Merger incurred in the three months ended March 31, 2021 were not significant.
[2] For the three months ended March 31, 2021 and 2020, includes expense related to the Company’s restricted common shares of $1.4 million and $0.2 million, respectively.




8


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


Three Months Ended March 31,
20212020
Net loss attributable to common stockholders (in accordance with GAAP) $(9,411)$(9,153)
   Depreciation and amortization32,319 34,335 
   Gain on sale of real estate investments(286)(1,440)
   Proportionate share of adjustments for non-controlling interest to arrive at FFO(51)(52)
FFO attributable to common stockholders22,571 23,690 
   Acquisition, transaction and other costs [1]
42 452 
   Litigation cost reimbursements related to the Merger [2]
— (9)
   Legal fees and expenses — COVID-19 lease disputes [3]
69 — 
   Amortization of market lease and other intangibles, net(935)(992)
   Straight-line rent(1,727)(2,265)
   Straight-line rent (rent deferral agreements) [4]
(975)— 
   Amortization of mortgage premiums on borrowings(321)(560)
   Equity-based compensation [5]
4,347 3,211 
   Amortization of deferred financing costs, net and change in accrued interest2,469 1,712 
   Proportionate share of adjustments for non-controlling interest to arrive at AFFO(5)(2)
AFFO attributable to common stockholders$25,535 $25,237 
______

[1] Primarily includes prepayment costs incurred in connection with early debt extinguishment as well as litigation costs related to the Merger.
[2] Included in "Other income" in the Company's consolidated statement of operations and comprehensive loss.
[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 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 the amount of 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 purposes of AFFO as they are expected to be collected. 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 agreement for all periods presented.

9


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.

10


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 to better assess the sustainability of our ongoing operating performance without the impact of transactions or other items that are not related to the ongoing performance of our portfolio of properties. AFFO presented by us may not be comparable to AFFO reported by other REITs that define AFFO differently. 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.
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 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
11


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.


12
Document

EXHIBIT 99.2






American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (unaudited)





American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Table of Contents
ItemPage
Non-GAAP Definitions3
Key Metrics6
Consolidated Balance Sheets8
Consolidated Statements of Operations9
Non-GAAP Measures10
Debt Overview13
Future Minimum Lease Rents14
Top Ten Tenants15
Diversification by Property Type16
Diversification by Geography17
Lease Expirations18
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.
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American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 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.
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American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 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 to better assess the sustainability of our ongoing operating performance without the impact of transactions or other items that are not related to the ongoing performance of our portfolio of properties. AFFO presented by us may not be comparable to AFFO reported by other REITs that define AFFO differently. 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.
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 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
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American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
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.



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American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Key Metrics
As of and for the three months ended March 31, 2021
Financial Results (Amounts in thousands, except per share data)
Revenue from tenants
$79,187 
Net loss attributable to common stockholders
$(9,411)
Basic and diluted net loss per share attributable to common stockholders
$(0.09)
Cash NOI [1]
$63,086 
Adjusted EBITDA [1]
$51,978 
AFFO attributable to common stockholders [1]
$25,535 
Dividends declared on common stock [2]
$23,043 
Balance Sheet and Capitalization (Amounts in thousands, except ratios and percentages)
Gross asset value [3]
$4,272,301 
Net debt [4] [5]
$1,724,734 
Total consolidated debt [5]
$1,808,948 
Total assets
$3,605,618 
Liquidity [6]
$218,465 
Common shares outstanding as of March 31, 2021108,872 
Net debt to gross asset value
40.4 %
Net debt to adjusted EBITDA [1] (annualized based on quarterly results)
8.3 x
Weighted-average interest rate cost [7]
3.8 %
Weighted-average debt maturity (years) [8]
4.5 
Interest Coverage Ratio [9]
3.0 x
Real Estate PortfolioSingle-Tenant PortfolioMulti-Tenant PortfolioTotal Portfolio
Portfolio Metrics:
Real estate investments, at cost (in billions)
$2.6 $1.4 $4.0 
Number of properties
892 33 925 
Square footage (in millions)
12.5 7.2 19.7 
Annualized straight-line rent (in millions) [10]
$200.0 $84.6 $284.6 
Annualized straight-line rent per leased square foot
$16.1 $13.6 $15.3 
Occupancy [11]
99.5 %86.8 %94.9 %
Weighted-average remaining lease term (years) [12]
10.4 4.7 8.7 
% investment grade [13]
60.6 %N/AN/A
% of anchor tenants in multi-tenant portfolio that are investment grade [13] [14]
N/A30.7 %N/A
% of leases with rent escalators [15]
86.0 %58.0 %77.6 %
Average annual rent escalator [15]
1.3 %1.1 %1.3 %
——
[1] This Non-GAAP metric is reconciled below.
[2] Represents dividends declared on shares of the Company’s common stock payable to holders of record on the applicable record date.
[3] Defined as total assets plus accumulated depreciation and amortization as of March 31, 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 $84.2 million as of March 31, 2021, and $134.3 million available for future borrowings under the Company's credit facility.
[7] Weighted based on the outstanding principal balance of the debt as of March 31, 2021.
[8] Weighted based on the outstanding principal balance of the debt as of March 31, 2021 and does not reflect any changes to maturity dates subsequent to
March 31, 2021. The Company has the right to extend the maturity date to April 2023.
[9] The interest coverage ratio is calculated by dividing adjusted EBITDA by cash paid for interest (interest expense less amortization of deferred financing
costs, net, change in accrued interest and amortization of mortgage premiums on borrowings) for the quarter ended March 31, 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 March 31, 2021.
[11] Only includes leases which have commenced and were taken possession by the tenant as of March 31, 2021.
[12] The weighted-average remaining lease term (years) is based on annualized straight-line rent.
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American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
[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 March 31, 2021. The weighted averages are based on straight-line rent. Single-tenant portfolio tenants are 49.6% actual investment grade rated and 11.0% 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 21.4% actual investment grade rated and 9.3% implied investment grade rated.
[15] Based on annualized straight-line rent as of March 31, 2021. Contractual rent increases include fixed percent or actual increases, or CPI-indexed
increases.
7

American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021

Consolidated Balance Sheets
Amounts in thousands, except share and per share data
March 31,
2021
December 31,
2020
(Unaudited)
ASSETS 
Real estate investments, at cost:
Land$726,599 $723,316 
Buildings, fixtures and improvements2,862,046 2,830,508 
Acquired intangible lease assets453,220 454,245 
Total real estate investments, at cost4,041,865 4,008,069 
Less: accumulated depreciation and amortization(666,683)(639,367)
Total real estate investments, net3,375,182 3,368,702 
Cash and cash equivalents84,214 102,860 
Restricted cash14,314 10,537 
Deposits for real estate investments187 137 
Derivative assets, at fair vale2,361 — 
Deferred costs, net17,926 16,663 
Straight-line rent receivable68,378 66,581 
Operating lease right-of-use assets18,422 18,546 
Prepaid expenses and other assets (including $758 and $1,939 due from related parties as of March 31, 2021 and December 31, 2020, respectively)24,634 23,941 
Assets held for sale— — 
Total assets$3,605,618 $3,607,967 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Mortgage notes payable, net $1,491,968 $1,490,798 
Credit facility280,857 280,857 
Below market lease liabilities, net77,109 78,674 
Accounts payable and accrued expenses (including $1,788 and $273 due to related parties as of March 31, 2021 and December 31, 2020, respectively)30,296 25,210 
Operating lease liabilities19,226 19,237 
Derivative liabilities, at fair value— 123 
Deferred rent and other liabilities11,171 9,794 
Dividends payable5,892 3,675 
Total liabilities1,916,519 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 March 31, 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, 4,099,801 and 3,535,700 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively41 35 
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 108,872,337 and 108,837,209 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively1,089 1,088 
Additional paid-in capital2,740,648 2,723,678 
Accumulated other comprehensive loss2,361 (123)
Distributions in excess of accumulated earnings(1,088,559)(1,055,680)
Total stockholders' equity1,655,659 1,669,077 
Non-controlling interests33,440 30,522 
Total equity1,689,099 1,699,599 
Total liabilities and equity$3,605,618 $3,607,967 

8


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Consolidated Statements of Operations
Amounts in thousands, except share and per share data
 Three Months Ended
March 31,
2021
December 31,
2020
September 30, 2020June 30,
2020
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Revenue from tenants$79,187 $77,237 $78,489 $74,934 
 Operating expenses:   
Asset management fees to related party7,321 7,088 6,918 6,918 
Property operating expense13,439 13,247 14,226 12,541 
Impairment of real estate investments— 1,408 — 11,502 
Acquisition, transaction and other costs [1]
42 241 1,507 721 
Equity-based compensation [2]
4,347 3,343 3,235 3,247 
General and administrative6,449 4,179 3,312 6,864 
Depreciation and amortization32,319 32,730 34,951 35,443 
Total operating expenses
63,917 62,236 64,149 77,236 
Operating income (loss) before gain on sale of real estate investments15,270 15,001 14,340 (2,302)
Gain on sale of real estate investments286 — 2,178 2,838 
Operating income
15,556 15,001 16,518 536 
Other (expense) income:
Interest expense(19,334)(19,689)(20,871)(18,801)
Other income24 20 871 61 
Loss on non-designated derivative— (9)— — 
Total other expense, net
(19,310)(19,678)(20,000)(18,740)
Net loss (3,754)(4,677)(3,482)(18,204)
Net loss attributable to non-controlling interests10 20 
Allocation for preferred stock(5,663)(3,931)(3,619)(3,619)
Net loss attributable to common stockholders
$(9,411)$(8,603)$(7,091)$(21,803)
Basic and Diluted Net Loss Per Share:
Net loss per share attributable to common stockholders — Basic and Diluted
$(0.09)$(0.08)$(0.07)$(0.20)
Weighted-average shares outstanding — Basic
108,436,571 108,436,329 108,429,315 108,386,013 
Weighted-average shares outstanding — Diluted
108,436,571 108,436,329 108,429,315 108,386,013 
——
[1] For the three months ended December 31, 2020, September 30, 2020 and June 30, 2020, includes litigation costs related to the Merger of $0.1 million, $0.2 million and $0.3 million, respectively. Litigation costs related to the Merger incurred in the three months ended March 31, 2021 were not significant.
[2] For the three months ended March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, includes equity-based compensation expense related to the Company's restricted common shares of $1.4 million, $0.4 million, $0.3 million and $0.3 million, respectively.

9


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Non-GAAP Measures
Amounts in thousands
 Three Months Ended
March 31,
2021
December 31,
2020
September 30, 2020June 30,
2020
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
EBITDA:
Net loss$(3,754)$(4,677)$(3,482)$(18,204)
Depreciation and amortization32,319 32,730 34,951 35,443 
Interest expense19,334 19,689 20,871 18,801 
   EBITDA47,899 47,742 52,340 36,040 
Impairment of real estate investments— 1,408 — 11,502 
Acquisition, transaction and other costs [1]
42 241 1,507 721 
Equity-based compensation [2]
4,347 3,343 3,235 3,247 
Gain on sale of real estate investments(286)— (2,178)(2,838)
Other income (24)(20)(871)(61)
Loss on non-designated derivatives— — — 
   Adjusted EBITDA 51,978 52,723 54,033 48,611 
Asset management fees to related party7,321 7,088 6,918 6,918 
General and administrative6,449 4,179 3,312 6,864 
   NOI65,748 63,990 64,263 62,393 
   Amortization of market lease and other intangibles, net
(935)(1,216)(1,652)(2,289)
Straight-line rent(1,727)(4,060)(7,743)(5,442)
  Cash NOI
$63,086 $58,714 $54,868 $54,662 
Cash Paid for Interest:
   Interest expense$19,334 $19,689 $20,871 $18,801 
   Amortization of deferred financing costs, net and change in accrued interest
(2,469)(2,362)(2,782)(990)
   Amortization of mortgage discounts and premiums on borrowings
321 456 521 589 
   Total cash paid for interest$17,186 $17,783 $18,610 $18,400 
——
[1] For the three months ended December 31, 2020, September 30, 2020 and June 30, 2020, includes litigation costs related to the Merger of  $0.1 million, $0.2 million and $0.3 million, respectively. Litigation costs related to the Merger incurred in the three months ended March 31, 2021 were not significant.
[2] For the three months ended March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, includes equity-based compensation expense related to the Company's restricted common shares of $1.4 million, $0.4 million, $0.3 million and $0.3 million, respectively.







10


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Non-GAAP Measures
Amounts in thousands, except per share data
 Three Months Ended
March 31,
2021
December 31,
2020
September 30, 2020June 30,
2020
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Funds from operations (FFO):
Net loss attributable to common stockholders (in accordance with GAAP)
$(9,411)$(8,603)$(7,091)$(21,803)
Impairment of real estate investments— 1,408 — 11,502 
Depreciation and amortization32,319 32,730 34,951 35,443 
Gain on sale of real estate investments (286)— (2,178)(2,838)
Proportionate share of adjustments for non-controlling interest to arrive at FFO
(51)(54)(51)(71)
FFO attributable to common stockholders 22,571 25,481 25,631 22,233 
Acquisition, transaction and other costs [1]
42 241 1,507 721 
Litigation cost reimbursements related to the Merger [2]
— — — — 
Legal fees and expenses — COVID-19 lease disputes [3]
69 11 16 242 
Amortization of market lease and other intangibles, net
(935)(1,216)(1,652)(2,289)
Straight-line rent(1,727)(4,060)(7,743)(5,442)
Straight-line rent (rent deferral agreements) [4]
(975)358 2,209 2,082 
Amortization of mortgage premiums on borrowings
(321)(456)(521)(589)
Loss non-designated derivatives— — — 
Equity-based compensation [5]
4,347 3,343 3,235 3,247 
Amortization of deferred financing costs, net and change in accrued interest
2,469 2,362 2,782 990 
Proportionate share of adjustments for non-controlling interest to arrive at AFFO
(5)— (1)
AFFO attributable to common stockholders $25,535 $26,073 $25,465 $21,194 
Weighted-average common shares outstanding
108,437 108,436 108,429 108,386 
Net loss per share attributable to common stockholders — Basic and Diluted
$(0.09)$(0.08)$(0.07)$(0.20)
FFO per common share$0.21 $0.23 $0.24 $0.21 
AFFO per common share$0.24 $0.24 $0.23 $0.20 
Dividends declared [6]
$23,043 $— $23,065 $23,058 
——
[1] Primarily includes prepayment costs incurred in connection with early debt extinguishment as well as litigation costs related to the Merger.
[2] Included in "Other Income" in the Company's consolidated statement of operations.
[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 the amount of 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 purposes of AFFO as they are expected to be collected. 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 agreement for all periods presented.
11


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
[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.

12


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Debt Overview
As of March 31, 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)102 0.4 5.3 %$109,930 
2022 — — — %2,311 
2023 — — — %2,643 
20242.9 5.0 %22,287 
2025370 4.3 3.7 %845,771 
Thereafter 262 7.0 4.2 %545,149 
Total Non-Recourse Debt  735 5.5 4.0 %1,528,091 84 %
Recourse Debt [1]
   Credit Facility [2]
2.1 2.8 %280,857 
Total Recourse Debt2.1 2.8 %280,857 16 %
Total Debt4.5 3.8 %$1,808,948 100 %
——
[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 March 31, 2021, the Company’s total combined debt was 82.6% fixed rate and 17.4% floating rate.
[5] Excludes the effect of deferred financing costs, net and mortgage premiums and discounts.
13


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Future Minimum Base Lease Rents Due to the Company
As of March 31, 2021
Amounts in thousands
Future Minimum
Base Rent Payments
[1]
2021 (remainder)$203,140 
2022265,006 
2023251,701 
2024235,031 
2025216,312 
2026199,627 
Thereafter1,173,844 
Total$2,544,661 
——
[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.

14


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Top Ten Tenants (by annualized straight-line rent)
As of March 31, 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 %11.8 Yes
Truist BankRetailRetail Banking16,875 %8.4 Yes
FreseniusRetailHealthcare14,525 %7.4 Yes
Mountain ExpressRetailGas/Convenience13,237 %17.4 No
AmeriColdDistributionRefrigerated Warehousing12,720 %6.5 Yes
Tenants 6 - 10VariousVarious36,952 13 %10.5 3 of 5 - Yes
Subtotal    111,452 39 %10.5 
     
Remaining portfolio    173,121 61 %
     
Total Portfolio$284,573 100 %
——
[1] Calculated using the most recent available lease terms as of March 31, 2021.
[2] Based on straight-line rent as of March 31, 2021.
[3] The top ten tenants are 67.0% actual investment grade rated and 7.9% implied investment grade rated (see page 6 for definition of Investment Grade).





15


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Diversification by Property Type
As of March 31, 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)
$226,241 80 %13,480 69 %
Distribution 31,833 11 %4,735 24 %
Office 26,499 %1,442 %
Total $284,573 100 %19,657 100 %
 
Retail Properties
Tenant Type
Annualized SL Rent [1]
SL Rent Percent
Square Feet [2]
Sq. ft. Percent
Single-Tenant:
Service-oriented [3]
$118,057 52 %4,007 32 %
Traditional retail [4]
 23,559 10 %2,252 18 %
Multi-Tenant:
Experiential/e-commerce defensive [5]
42,184 19 %2,536 20 %
Other traditional retail 42,441 19 %3,704 30 %
Total $226,241 100 %12,499 100 %
——
[1] Calculated using the most recent available lease terms as of March 31, 2021.
[2] Represents total rentable square feet of retail properties occupied as of March 31, 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.




16


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Diversification by Geography
As of March 31, 2021
Amounts in thousands, except percentages
Total Portfolio
Region
Annualized SL Rent [1]
SL Rent PercentSquare FeetSq. ft. Percent
Alabama $14,964 5.3 %1,410 7.1 %
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 %
Connecticut1,640 0.6 %84 0.4 %
Delaware176 0.1 %0.1 %
District of Columbia236 0.1 %0.1 %
Florida19,482 6.9 %1,199 6.1 %
Georgia28,655 10.1 %1,950 9.8 %
Idaho331 0.1 %14 0.1 %
Illinois10,545 3.7 %744 3.8 %
Indiana2,105 0.7 %91 0.5 %
Iowa2,662 0.9 %166 0.8 %
Kansas2,989 1.0 %264 1.3 %
Kentucky10,463 3.7 %664 3.4 %
Louisiana6,324 2.2 %337 1.7 %
Maine202 0.1 %12 0.1 %
Maryland1,069 0.4 %29 0.1 %
Massachusetts9,104 3.2 %976 5.0 %
Michigan8,972 3.2 %501 2.6 %
Minnesota10,462 3.7 %761 3.9 %
Mississippi5,815 2.0 %252 1.3 %
Missouri5,699 2.0 %486 2.5 %
Montana1,243 0.4 %45 0.2 %
Nebraska495 0.2 %12 0.1 %
Nevada6,626 2.3 %408 2.1 %
New Hampshire127 — %0.1 %
New Jersey18,655 6.6 %817 4.3 %
New Mexico629 0.2 %47 0.2 %
New York2,351 0.8 %171 0.9 %
North Carolina18,304 6.4 %1,517 7.6 %
North Dakota1,222 0.4 %170 0.9 %
Ohio17,651 6.2 %1,024 5.2 %
Oklahoma9,937 3.5 %834 4.2 %
Pennsylvania8,895 3.1 %540 2.7 %
Rhode Island2,419 0.8 %149 0.8 %
South Carolina16,500 5.8 %1,602 8.0 %
South Dakota339 0.1 %47 0.1 %
Tennessee4,442 1.6 %316 1.6 %
Texas13,414 4.7 %839 4.2 %
Utah1,087 0.4 %41 0.2 %
Virginia3,859 1.4 %212 1.1 %
West Virginia1,876 0.7 %99 0.5 %
Wisconsin7,137 2.5 %566 2.9 %
Wyoming1,318 0.5 %66 0.2 %
Total $284,573 100 %19,657 100 %
[1] Calculated using the most recent available lease terms as of March 31, 2021.  
17


American Finance Trust, Inc.
Supplemental Information
Quarter ended March 31, 2021 (Unaudited)
Lease Expirations
As of March 31, 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)42$11,779 4.1 %1,080 5.8 %
20228310,374 3.6 %1,005 5.4 %
202311016,587 5.8 %1,179 6.3 %
202411418,112 6.4 %1,376 7.4 %
202512622,881 8.0 %1,750 9.4 %
20267621,177 7.4 %1,421 7.6 %
202710135,010 12.3 %3,663 19.6 %
20288111,635 4.1 %860 4.6 %
202913423,142 8.1 %1,308 7.0 %
20304911,497 4.0 %865 4.6 %
20315012,257 4.3 %558 3.0 %
20322722,929 8.1 %1,106 5.9 %
2033374,717 1.7 %180 1.0 %
2034152,125 0.7 %126 0.7 %
2035123,735 1.3 %91 0.5 %
2036323,173 1.1 %196 1.1 %
Thereafter (>2036)35953,443 19.0 %1,885 10.1 %
Total1,448$284,573 100 %18,649 100 %
——
[1] Calculated using the most recent available lease terms as of March 31, 2021.


18