AMERICAN FINANCE TRUST COMPLETES PREVIOUSLY ANNOUNCED $261 MILLION SALE OF OFFICE BUILDINGS, REDUCING OFFICE EXPOSURE TO 1%

NEW YORK, Jan. 7, 2022 /PRNewswire/ — On January 6, 2022, American Finance Belief, Inc. (Nasdaq: AFIN) (“AFIN” or the “Firm”) accomplished the beforehand introduced disposition of its non-core portfolio of three workplace buildings leased to Sanofi S.A. for $261 million (the “Sanofi Sale”), representing a 6.38% money capitalization charge1 and a $10 million enhance from its unique buy value. On a Professional Forma foundation as of September 30, 20212 the Sanofi Sale diminished the Firm’s publicity to workplace property to 1% from 7%, primarily based on Professional Forma annualized straight-line lease (“SLR”).

“The Sanofi Sale is an effective way to begin 2022 and is an integral step within the transformative $1.3 billion transaction, introduced final month, that can make AFIN the preeminent REIT targeted on necessity retail,” mentioned Michael Weil, CEO of the Firm. “The proceeds from the Sanofi Sale shall be accretively used to partially fund the beforehand introduced portfolio acquisition of energy, anchored and grocery facilities, which we count on to shut by the tip of the primary quarter (the “Transaction”). As of September 30, 2021 and giving impact to the Transaction on a Professional Forma foundation, our portfolio of single tenant and open-air buying facilities which are primarily leased to necessity-retail tenants would have grown to roughly $5 billion, rising the Firm’s possession of grocery-anchored buying facilities to 22% of SLR in our open-air buying middle portfolio, and lowering portfolio workplace publicity to only 1% of SLR. We consider within the long-term power of retail within the US and that brick-and-mortar shops will proceed to play a vital position within the business.”

Strategic and Monetary Rationale

  • Instantly Accretive to AFFO: The Transaction is anticipated to be accretive instantly upon closing, including vital scale and worth with pandemic-tested property
  • Amplified Scale: Strategic acquisition of a 9.5 million sq. foot, 81-property portfolio of energy, anchored, and grocery facilities3 below contract to be acquired for $1.3 billion
  • Workplace Focus Decreased to 1% of SLR: Opportunistic and accretive $261 million disposition of the Firm’s Sanofi workplace asset and $1.3 billion portfolio acquisition diminished Professional Forma SLR4 derived from workplace property to 1% from 7%
  • Realized Cap Price Compression on Sanofi Disposition: Disposition Money Cap Price of 6.38% is 15bps decrease than the Money Cap Price at time of acquisition in 2014, producing a $10 million enhance on its unique buy value
  • Addition of Grocery Facilities: 22% of Professional Forma multi-tenant SLR derived from grocery facilities, which we count on to reinforce the desirability of the Firm’s properties and skill to command robust rental charges
  • Rebranded Firm targeted on The place America Retailers: The Necessity Retail REIT (NYSE: RTL) would be the preeminent REIT targeted on Necessity-Primarily based retail, with a portfolio that, on a Professional Forma foundation, as of September 30, 2021, was 55% leased to Service-Oriented or Necessity-Primarily based retail tenants.

Title Change

As beforehand introduced, in reference to the Transaction, the Firm will change its identify and be rebranded as “The Necessity Retail REIT The place America Retailers” and expects that its Class A standard inventory (“Frequent Inventory”), 7.50% Collection A Cumulative Redeemable Perpetual Most popular Inventory (“Collection A Most popular Inventory”) and seven.375% Collection C Cumulative Redeemable Perpetual Most popular Inventory (“Collection C Most popular Inventory”) will start buying and selling on Nasdaq thereafter below the ticker symbols RTL, RTLPP and RTLPO, respectively. The Firm’s Frequent Inventory, Collection A Most popular Inventory, and Collection C Most popular Inventory will proceed to commerce on Nasdaq below the symbols AFIN, AFINP, and AFINO, respectively, till the closing of the Transaction.

Footnotes/Definitions

1 

For acquisitions, money cap charge is a charge of return on an actual property funding property primarily based on the anticipated, annualized money rental revenue in the course of the first yr of possession that the property will generate below its current lease or leases. For tendencies, money cap charge is a charge of return primarily based on the annualized money rental revenue of the property to be offered. For acquisitions, money cap charge is calculated by dividing this annualized money rental revenue the property will generate (earlier than debt service and depreciation and after mounted prices and variable prices) by the acquisition value of the property, excluding acquisition prices. For tendencies, money cap charge is calculated by dividing the annualized money rental revenue by the contract gross sales value for the property, excluding acquisition prices Weighted common money cap charges are primarily based on sq. ft except in any other case indicated.



2 

All professional forma numbers are as of September 30, 2021, assume closing of the Transaction and exclude the Sanofi workplace asset which has been offered.



3

Portfolio to be acquired contains 79 Energy, Anchored and Grocery Facilities and two single tenant properties.



4 

Professional Forma represents, as of September 30, 2021, the properties owned by AFIN and the annualized straight-line lease or “SLR” generated by these properties plus the 81 property multi-tenant portfolio, and the annualized SLR generated by these properties together with two single tenant property that embody 86,810 sq. ft and $1.2 million of annualized straight-line lease, below the contract with sure subsidiaries of CIM Actual Property Finance Belief, Inc, however excluding AFIN’s Sanofi workplace asset which was additionally below a contract to be offered as of the date.

About American Finance Belief, Inc. quickly to be rebranded The Necessity Retail REIT The place America Retailers
American Finance Belief, Inc. (Nasdaq: AFIN) is a publicly traded actual property funding belief listed on Nasdaq targeted on buying and managing a diversified portfolio of primarily service-oriented and conventional retail and distribution associated industrial actual property properties within the U.S. Further details about AFIN will be discovered on its web site at www.americanfinancetrust.com.

Essential Discover
The statements on this press launch that aren’t historic information could also be forward-looking statements. These forward-looking statements contain dangers and uncertainties that would trigger precise outcomes or occasions to be materially totally different. The phrases “anticipates,” “believes,” “expects,” “estimates,” “initiatives,” “plans,” “intends,” “could,” “will,” “search,” “would” and related expressions are meant to determine forward-looking statements, though not all forward-looking statements comprise these figuring out phrases. These forward-looking statements are topic to dangers, uncertainties and different components, a lot of that are outdoors of the Firm’s management, which may trigger precise outcomes to vary materially from the outcomes contemplated by the forward-looking statements. These dangers and uncertainties embrace the potential antagonistic results of the continuing world COVID-19 pandemic, together with actions taken to comprise or deal with COVID-19, on the Firm, the Firm’s tenants, the property below contract to be acquired together with their respective tenants and the worldwide economic system and monetary markets and that any potential future acquisition of property is topic to market situations and capital availability and is probably not recognized or accomplished on favorable phrases, or in any respect, in addition to these dangers and uncertainties set forth within the Threat Components part of the Firm’s Annual Report on Type 10-Ok for the yr ended December 31, 2020 filed on February 25, 2021 and all different filings with the SEC after that date as such dangers, uncertainties and different necessary components could also be up to date occasionally within the Firm’s subsequent stories together with specifically the Firm’s Present Report on Type 8-Ok dated December 20, 2021 and describing extra information and threat components regarding the Transaction described on this launch. Particularly, the Transaction described on this launch is topic to closing situations, together with situations which are outdoors of the Firm’s management, and the Transaction described on this launch is probably not accomplished on the contemplates phrases, or in any respect, or could also be delayed. The Firm could not have the ability to acquire financing to finish the Transaction on favorable phrases or in any respect. Ahead trying statements communicate solely as of the date they’re made, and the Firm undertakes no obligation to replace or revise any forward-looking assertion to replicate modified assumptions, the prevalence of unanticipated occasions or modifications to future working outcomes, except required to take action by regulation. This press launch additionally contains statements relating to the professional forma impact of the Transaction and the sale of workplace property leased to Sanofi. For extra details about the professional forma affect of the Transaction, see the Firm’s Present Report filed on Type 8-Ok on January 5, 2022.

A securities score will not be a suggestion to purchase, promote or maintain securities and could also be topic to revision or withdrawal at any time. Every score company has its personal methodology for assigning rankings and, accordingly, every score ought to be evaluated independently of every other score.

Non-GAAP Monetary Measures

This launch mentioned the non-GAAP monetary measure Adjusted Funds From Operations (“AFFO”). An outline of this non-GAAP measures and reconciliations to probably the most straight comparable GAAP measure, which is web revenue, is supplied on our press launch furnished as Exhibit 99.1 with our Present Report on Type 8-Ok on November 3, 2021. As well as, please see the press launch for statements as to why the Firm believes that this measure is helpful to traders and extra functions for the Firm’s use of this measure.

Contacts:
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SOURCE American Finance Belief, Inc.