93 Properties Closed Year-to-Date, Growing
Necessity Retail Portfolio to $5.3
Billion of Real Estate
Grocery-Anchored Centers Grow to
22%1 of Multi-Tenant Portfolio, 57% of Straight-Line
Rent1 Derived From Properties in Sunbelt
States
NEW
YORK, July 11, 2022 /PRNewswire/ -- The
Necessity Retail REIT, Inc. (Nasdaq: RTL) ("RTL" or the "Company")
announced today that the Company, through its operating
partnership, completed the final acquisition from the previously
announced agreement to acquire a portfolio of 81 Power, Anchored
and Grocery Centers from certain subsidiaries of CIM Real Estate
Finance Trust, Inc. for $1.3 billion
including debt assumed of $356
million. The Company also announced that year-to-date it has
acquired 93 properties for a total of $1.4
billion. The acquired properties total 10.2 million square
feet and were acquired at a cash cap rate of 7.24%2 and
a weighted-average capitalization rate of 8.60%3.
![(PRNewsfoto/American Finance Trust, Inc.) (PRNewsfoto/American Finance Trust, Inc.)](https://mma.prnewswire.com/media/1711843/The_Necessity_Retail_REIT_Logo.jpg)
"We are excited to complete the $1.3
billion shopping center acquisition which, along with other
acquisitions completed this year, grows our portfolio to over 1,050
properties and $5.3 billion of assets
located where America shops," said Michael
Weil, CEO of RTL. "The transactions we have completed so far
this year have deliberately focused our portfolio on necessity
retail assets in suburban markets, including adding 13
grocery-anchored shopping centers, while decreasing our exposure to
office assets to 1% of our straight-line rent. The seamless
integration of these properties into our portfolio has increased
tenant and geographic diversification and grown occupancy in our
open-air shopping center segment, providing a strong defense
against headwinds in the broader economy. These transactions had an
immediate positive impact on our results in the first quarter and
we believe that the full accretive effect of this year's
acquisitions will continue to be realized over the balance of the
year as we focus on continuing the strong leasing activity we've
seen year to date."
Footnote
1 Represents the RTL portfolio as of and for the
quarter ending March 31, 2022, and
the remaining 25 properties that were yet to be closed as of
March 31, 2022, and were "probable"
acquisitions as of the date. Information included in the pro forma
presentation herein regarding these probable acquisitions is as of
and for the three months ended September 30,
2021.
2 Cash cap rate is calculated by dividing this
annualized cash rental income the properties are projected to
generate during the first year of ownership (before debt service
and depreciation and after projected fixed costs and variable
costs) by the purchase price of the properties, excluding
acquisition costs. Weighted average cash cap rates are based on
square feet.
3 Capitalization rate is calculated by dividing the
annualized straight-lined rental income the properties are
projected to generate during its first year of ownership (before
debt service and depreciation and after projected 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.
About The Necessity Retail REIT
Where America Shops
The Necessity Retail REIT (Nasdaq: RTL) is the preeminent
publicly traded real estate investment trust (REIT) focused "Where
America Shops". RTL acquires and manages a diversified portfolio of
primarily necessity-based retail single tenant and open-air
shopping center properties in the U.S. Additional information about
RTL can be found on its website at
www.necessityretailreit.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 "may,"
"will," "seeks," "anticipates," "believes," "expects," "estimates,"
"projects," "plans," "intends," "should" 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 a number of 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 (i) the ongoing global COVID-19 pandemic,
including actions taken to contain or treat COVID-19, and (ii) the
geopolitical instability due to the ongoing military conflict
between Russia and Ukraine, including related sanctions and other
penalties imposed by the U.S. and European Union, and the related
impact on the Company, the Company's tenants, and the global
economy and financial markets, 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, 2021 filed on
February 24, 2022 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.
Contacts:
Investor Relations
ir@rtlreit.com
(866) 902-0063
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SOURCE The Necessity Retail REIT, Inc.