american 1q 2016 finance trust...

3Q 2013REPORT1Q 2016

REPORT

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL

American Finance Trust, Inc.(formerly American Realty Capital Trust V, Inc.)

American Finance Trust


American Finance Trust, Inc. (“AFIN”) is designed to protect shareholder capital and provide attractive, stable cash distributions. AFIN manages and optimizes its investments in its portfolio of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants (the “Net Lease Portfolio”) and selectively invests in additional net lease properties. AFIN also invests in commercial real estate mortgage loans and other commercial real estate-related debt investments.

Distribution InformationDistribution Rate1 (as of March 31, 2016)6.6%

Distribution FrequencyMonthly

Key Facts (as of March 31, 2016)Effectiveness DateApril 4, 2013

Total Capital Raised2

$1.6 billion

Investment Objectives

1 Distribution rate of 6.6% represents per annum distributions of $1.65 per share based on initial IPO price per share of $25.00. Distribution rate is 6.8% based on $24.17 per share, AFIN’s estimated per-share net asset value (“Estimated Per-Share NAV”) as of December 31, 2015.

2 Includes proceeds raised through the sale of common stock and shares issued pursuant to the distribution reinvestment plan, net of share repurchases3 Accounting principles generally accepted in the United States of America4 Straight-line rental5 Aggregate contract purchase price of properties acquired, excluding acquisition related costs and mortgage premiums resulting from debt assumed in

connection with our property acquisitions 6 Calculated as total debt to total assets

Net Lease Portfolio Highlights (as of March 31, 2016)

Property Highlights

Number of Properties 467

Rentable Square Feet 13,395,006

Percentage Leased 100.0%

Weighted-Average Remaining Lease Term (Yrs.)

8.4

Financial Highlights

Property Purchase Price5 $2.2 billion

Leverage Ratio6 47.9%

Weighted-Average Effective Interest Rate

4.77%

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIALSHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL

States with AFIN properties

Top States*(Annualized GAAP3 SLR4 Income %)

New Jersey20.0%

Top 5 Tenants IndustryCredit Rating

Details

Annualized GAAP SLR Income %

SunTrust Bank Retail Banking S&P: BBB+ 17.7%

Sanofi US Healthcare S&P: AA 11.4%

C&S Wholesale Grocer Distribution S&P: BB 10.2%

AmeriCold Refrigerated Warehousing Not Rated 7.7%

Merrill Lynch, Pierce, Fenner & Smith Financial Services S&P: A 7.7%

Total 54.7%

Tenant Quality (as of March 31, 2016)

Other45.3%

17.7%

11.4%

Top 5 Tenants 54.7%

7.7%7.7%

10.2%

Geographic Diversification

Georgia11.0%

Massachusetts8.1%

Florida7.3%

North Carolina6.6%

Alabama5.4%

* As of March 31, 2016, our tenants operated in 36 states + DC.

Other41.6%

1Q 2016REPORT


Portfolio Details (as of March 31, 2016)

Tenant Tenant Industry No. of PropertiesRentable

Square Feet

Weighted-Average Remaining Lease Term

(Years)

1st Constitution Bancorp Retail Banking 1 4,500 7.8

Aaron's Specialty Retail 1 7,964 7.4

Academy Sports Specialty Retail 1 71,640 12.3

Advance Auto Auto Retail 4 30,511 7.6

Amazon Consumer Products 1 79,105 7.3

American Express Travel Related Services Financial Services 2 785,164 3.9

American Tire Distributors Auto Retail 1 125,060 7.8

AmeriCold Refrigerated Warehousing 9 1,407,166 11.5

Arby's Restaurant 2 6,494 12.2

AutoZone Auto Retail 3 21,526 8.6

Bi-Lo Supermarket 1 55,718 9.8

BSFS Auto Services 1 8,934 7.8

Burger King Restaurant 41 168,192 17.7

C&S Wholesale Grocer Distribution 5 3,044,685 6.5

Chili's Restaurant 2 12,700 9.7

Circle K Gas/Convenience 19 54,521 12.6

Citizens Bank Retail Banking 9 34,777 7.8

CVS Pharmacy 3 34,840 14.4

Dollar General Discount Retail 38 356,512 11.7

Family Dollar Discount Retail 12 99,882 7.3

FedEx Ground Distribution 8 441,494 8.7

Food Lion Supermarket 1 44,549 13.6

Fresenius Healthcare 3 21,847 10.8

Home Depot Home Maintenance 2 1,315,200 10.8

Joe's Crab Shack Restaurant 2 16,012 11.0

Krystal Restaurant 6 12,730 13.5

L.A. Fitness Fitness 1 45,000 7.9

Lowe's Home Maintenance 5 671,313 13.3

Mattress Firm Specialty Retail 9 43,561 8.7

Merrill Lynch, Pierce, Fenner & Smith Financial Services 3 553,841 8.7

National Tire & Battery Auto Services 2 18,163 13.7

New Breed Logistics Freight 1 390,486 5.6

O'Charley's Restaurant 20 135,973 15.6

O'Reilly Auto Parts Auto Retail 1 10,692 14.3

SAAB Sensis Aerospace 1 90,822 9.0

Sanofi US Healthcare 1 736,572 10.3

Stop & Shop Supermarket 8 544,112 10.6

SunTrust Bank Retail Banking 213 1,148,377 1.8

Talecris Plasma Resources Healthcare 1 22,262 7.0

Tire Kingdom Auto Services 1 6,635 9.0

Tractor Supply Specialty Retail 3 61,694 11.0

United Healthcare Healthcare 1 400,000 5.3

Walgreens Pharmacy 18 253,780 12.6

Total 467 13,395,006 8.4


First Quarter Management Update

As of March 31, 2016, American Finance Trust, Inc. (“AFIN”), owned 467 single-tenant, net-leased properties with an aggregate purchase price of $2.2 billion, comprised of 13.4 million rentable square feet, which were 100% leased on a weighted-average basis. Additionally, AFIN owned one commercial mortgage loan with a par value of $17.2 million as of March 31, 2016. On March 17, 2016, the independent directors of AFIN’s board, approved an Estimated Per-Share NAV of $24.17 as of December 31, 2015. When this offering went effective, we told you that we would seek to build a best-in-class portfolio of freestanding, single-tenant, strategically-located commercial real estate assets across the U.S. – all with the goal of unlocking stockholder value through a liquidity event.

Many of you have invested in, or are at least familiar with, American Realty Capital Trust, Inc., American Realty Capital Trust III, Inc. and American Realty Capital Trust IV, Inc. – net lease programs which were sponsored by AR Capital, LLC1 prior to AFIN. All three of these prior programs went through full cycle liquidity events that returned stockholder value and a profit.

We previously announced our intention to list on the New York Stock Exchange under the symbol “AFIN” (the “Listing”) during the third quarter of 2015. In September 2015, we announced that in light of market conditions, our board of directors, in consultation with our advisor, determined it was in our best interest to not pursue the Listing during the third quarter of 2015. Our board of directors continues to monitor market conditions and other factors with a view toward reevaluating the decision when market conditions are more favorable for a successful liquidity event. There can be no assurance that our shares of common stock will be listed. As always, we thank you for your trust and confidence, and look forward to continuing to pursue our goal of generating stockholder value.

Subsequent Events – SunTrust Portfolio On May 12, 2016, AFIN entered into an escrow agreement (the “Escrow Agreement”) with SunTrust Bank, a wholly owned subsidiary of SunTrust Banks, Inc. (“SunTrust”), in connection with the exercise by SunTrust of certain of its lease renewal options. Pursuant to the Escrow Agreement, AFIN amended 160 of its 213 leases for single-tenant net lease properties operated by SunTrust.

Concurrently and pursuant to the Escrow Agreement, AFIN entered into a purchase and sale agreement with SunTrust for, and simultaneously closed on, the purchase and sale of eight single-tenant net lease properties operated by SunTrust for an aggregate contract purchase price of $28.9 million, exclusive of closing costs. The sale of the eight properties resulted in a nominal gain for AFIN. Simultaneously and in connection with the sale, AFIN caused the release of the properties from their existing mortgages and paid to the applicable lenders a combined release price of $13.6 million, including interest and prepayment premiums.

As of May 12, 2016, AFIN owned 459 properties with an aggregate purchase price of $2.2 billion, comprised of 13.3 million rentable square feet, which were 100.0% leased with a weighted-average remaining lease term of 9.8 years.

SHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIALSHAREHOLDER COMMUNICATION - NOT FOR USE AS SALES MATERIAL

1 In January 2016, AR Global Investments, LLC (“AR Global”) became the successor business to AR Capital, LLC and became AFIN’s sponsor.

1Q 2016REPORT


Michael Weil Chief Executive Officer and President • Founding partner of AR Global• Supervised the origination of investment opportunities for all AR Global-

sponsored investment programs• Previously served as Senior VP of sales and leasing for American Financial Realty

Trust (AFRT)• Served as president of the Board of Directors of the Real Estate Investment

Securities Association (REISA)

Nick Radesca Chief Financial Officer, Secretary and Treasurer• Formerly CFO & Corporate Secretary for Solar Capital Ltd. and Solar Senior

Capital Ltd.• Previously served as Chief Accounting Officer at iStar Financial, Inc.

David LaytonManaging Director, Head of Asset Management• 20 years of asset management, investment, and valuation experience

• Oversees all post-close investment activities, including borrower compliance, loan administration and loan asset management

• Previously VP of asset management at Brookfield Asset Management (10 years) and Manager of real estate capital markets and financial advisory group at Deloitte (5 years)

Executive Management Team


Investor InquiriesFor more information on AFIN, please contact your financial professional.

www.americanfinancetrust.com

The information included herein should be read in connection with your review of AFIN’s Quarterly Report on Form 10-Q as of and for the three months ended March 31, 2016, as filed with the U.S. Securities and Exchange Commission (“SEC”) on May 13, 2016. Forward Looking Statement Disclosure

The statements in this report 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 “will,” “should,” “may,” “anticipate,” “believe,” “expect” and “intend” indicate a forward-looking statement, although not all forward-looking statements include these words. Actual results may differ materially from those contemplated by such forward-looking statements due to certain factors, including those set forth in the Risk Factors section of AFIN’s Annual Report on Form 10-K filed on March 16, 2016 and any subsequent Quarterly Reports on Form 10-Q, which are available at the SEC’s website at www.sec.gov. Further, forward-looking statements speak only as of the date they are made, and AFIN 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.


american 1q 2016 finance trust...

Documents