NEW YORK, Jan. 11, 2022 /PRNewswire/ -- American
Finance Trust, Inc. (Nasdaq: AFIN) ("AFIN" or the "Company")
announced today that it acquired 69 retail properties for a total
of $179.9 million1 during
the year ended December 31, 2021,
based on contract purchase price. The Company also announced that
leases at nine properties in its single tenant portfolio were
extended during 2021, adding approximately $7.2 million in net straight-line rent over the
new lease terms. Additionally, the Company signed 167 new leases or
lease renewals2 totaling 1.7 million square feet with
tenants in its open-air shopping center portfolio.
"We recorded a strong year with nearly $180 million of retail acquisitions, expanding
our necessity-retail focused portfolio of net-leased properties
with long-term leases," said Michael
Weil, CEO of the Company. "The properties we acquired last
year had a weighted-average cap rate of 8.3%3 and a
weighted-average remaining lease term of 13.3 years as of each
closing date. Additionally, we continued to be successful in our
portfolio-wide leasing initiatives, executing over 175 new or
renewed leases representing approximately 8.7% of our portfolio by
square feet."
Mr. Weil continued, "As we look forward to the previously
announced $1.3 billion acquisition of
open-air shopping centers that we expect to close this quarter, we
believe that the superior execution from our team in 2021 plays a
critical role in the transformation of the Company into the
Necessity Retail REIT: Where America Shops."
Acquisitions
During the fourth quarter, the Company
acquired 13 properties for an aggregate contract purchase price of
$28.1 million at a cash cap
rate4 of 7.1% and a weighted-average cap rate of 8.0%
with an average remaining lease term of 18.4 years as of the
closing dates, weighted based on square feet. For the year ended
December 31, 2021, the Company
acquired 69 properties for a contract purchase price of
$179.9 million at a going-in cap rate
of approximately 7.6% and a weighted-average cap rate of 8.3%.
Leasing
For the year ended December 31, 2021, the Company executed nine
lease extensions in the single tenant segment of its portfolio. The
leases extended the weighted average remaining lease term for these
tenants to 9.8 years from 2.7 years at the time of signing and
added net straight-line rent of approximately $7.2 million over the new lease terms.
Total straight-line-rent expected over the duration of these
leases is $9.7 million as of the date
each lease was executed. The Company also signed 167 new leases or
lease renewals associated its open-air shopping centers during the
year ended December 31, 2021,
totaling 1.7 million square feet.
Footnotes/Definitions
1 Includes two land parcels adjacent to a
property the Company owns
2 Includes short-term leases, license
agreements, and deferral and abatement agreements when coupled with
an extension
3 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.
4 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
About American Finance Trust, Inc. soon to be rebranded The
Necessity Retail REIT Where America Shops
American Finance
Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate
investment trust listed on 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.
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," "seek,"
"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, the assets
under contract to be acquired including their respective tenants
and the global economy and financial markets and that any potential
future acquisition of property 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 including in particular the
Company's Current Report on Form 8-K dated December 20, 2021 and describing additional facts
and risk factors relating to the transaction entered into with
certain subsidiaries of CIM Real Estate Finance Trust, Inc. (the
"Transaction") and referenced in this release. In particular, the
Transaction is subject to closing conditions, including conditions
that are outside of the Company's control, and the Transaction
described in this release may not be completed on the contemplated
terms, or at all, or may be delayed. The Company may not be able to
obtain financing to complete the Transaction on favorable terms or
at all. 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.
Contacts:
Investor Relations
investorrelations@americanfinancetrust.com
(866) 902-0063
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SOURCE American Finance Trust, Inc.