Amended Current Report Filing (8-k/a)
April 08 2022 - 4:39PM
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
February 11, 2022
The Necessity Retail REIT, Inc.
(Exact Name of Registrant as Specified in
Charter)
Maryland |
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001-38597 |
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90-0929989 |
(State or other jurisdiction
of incorporation) |
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(Commission File Number) |
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(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) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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 class |
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Trading
Symbols |
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Name of each exchange on which registered |
Class
A Common Stock, $0.01 par value per share |
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RTL |
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The Nasdaq Global Select Market |
7.50% Series A Cumulative Redeemable
Perpetual Preferred Stock, $0.01 par value per share |
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RTLPP |
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The Nasdaq Global Select Market |
7.375% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share |
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RTLPO |
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The Nasdaq Global Select Market |
Preferred Stock Purchase Rights |
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The 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. ¨
Explanatory Note
In its Current Reports on
Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on February 14, 2022, February 28,
2022 and March 21, 2022 (the “Initial Reports”), The Necessity Retail REIT, Inc., a Maryland corporation (the “Company”),
reported that it completed the acquisition of the First Closing Properties, the Second Closing Properties and the Third Closing Properties,
as defined and described in the Initial Reports. This Current Report on Form 8-K/A amends and supplements the Initial Reports
to provide the historical financial statements and unaudited pro forma information required by Item 9.01(a) and (b) of Form 8-K. This
Form 8-K/A should be read in conjunction with the Initial Reports.
Item 8.01 Other Events
As
previously disclosed, on December 17, 2021, the Company and its subsidiary, The Necessity Retail REIT Operating Partnership, a Delaware
limited partnership (the “Operating Partnership”), entered into a definitive purchase and sale agreement (the “PSA”)
to acquire, in the aggregate, 81 properties (together, the “CIM Portfolio”), from certain subsidiaries of CIM Real
Estate Finance Trust, Inc. (the “Sellers”) for approximately $1.3 billion. The CIM Portfolio consists of 79 power
centers and grocery-anchored multi-tenant retail centers, two single-tenant retail properties and a detention pond parcel, located across
27 states and aggregating approximately 9.5 million square feet. As previously reported on the Initial Reports,
the Company has acquired 56 power centers and grocery-anchored multi-tenant retail centers and a detention pond parcel at an aggregate
purchase price of $801.1 million, excluding closing costs. The Company expects to complete the acquisition of the remaining properties
in the CIM Portfolio in the second quarter of 2022.
The
Company is filing this Current Report on Form 8-K/A to provide the following financial information with respect to the CIM Portfolio, the
partial acquisition of which has already occurred, and the remainder of which is “probable”: (1) the Combined Statements of
Revenues and Certain Expenses of the CIM Portfolio for the year ended December 31, 2021 attached hereto as Exhibit 99.1, and (2) the Unaudited
Pro Forma Consolidated Financial Statements of the Company as of and for the year ended December 31, 2021, giving effect to the acquired
properties and the properties to be acquired of the CIM Portfolio, attached hereto as Exhibit 99.2. The Unaudited Pro Forma Consolidated
Financial Statements of the Company have been prepared on the basis of certain assumptions and estimates described in the notes thereto
and are subject to other uncertainties and do not purport to reflect what the actual results of operations or financial condition of the
Company would have been had the CIM Portfolio been acquired on the dates assumed for purposes of such pro forma financial statements or
to be indicative of the financial condition or results of operations of the Company as of or for any future date or period. Additionally,
the acquisition accounting used in preparing the pro forma adjustments included in the Unaudited Pro Forma Consolidated Financial Statements
are preliminary, and accordingly, the pro forma adjustments may be revised as additional information becomes available and as additional
analyses are performed. Differences between these preliminary analyses and the final acquisition accounting will likely occur, and these
differences could have a material impact on the Unaudited Pro Forma Consolidated Financial Statements and the Company's future results
of operations and financial position giving effect to the acquisition of the CIM Portfolio. For further information, see Exhibit 99.2.
The
statements contained in this Current Report on Form 8-K/A 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,”
“seek,” “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 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, 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. In
particular, the PSA is subject to closing conditions, including conditions that are outside of the Company’s control, and the transactions
may not be completed on the contemplated terms, or at all, or may be delayed. The Company may not be able to obtain financing of the transactions
on favorable terms, or at all. 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
(a) Financial Statements of Acquired Properties and Properties to
be Acquired.
The following financial statements for the CIM
Portfolio are attached hereto as Exhibit 99.1 and incorporated by reference herein:
| · | Combined Statements of Revenues and Certain Expenses of the CIM Portfolio
for the year ended December 31, 2021 |
(b) Pro Forma Financial Information.
The following pro forma financial information
for the Company is attached as Exhibit 99.2 and is incorporated herein by reference:
| · | Unaudited Pro Forma Consolidated Balance Sheet as of December 31, 2021 |
| · | Notes to the Unaudited Pro Forma Consolidated Balance Sheet as of December
31, 2021 |
| · | Unaudited Pro Forma Consolidated Statement of Operations for the Year Ended
December 31, 2021 |
| · | Notes to the Unaudited Pro Forma Consolidated Statement of Operations for
the Year Ended December 31, 2021 |
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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THE NECESSITY RETAIL REIT, INC. |
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Date: April 8, 2022 |
By: |
/s/ Edward M. Weil, Jr. |
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Name: Edward M. Weil, Jr. |
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Title: Chief Executive Officer and President |
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