PHOENIX, Feb. 24, 2021 /PRNewswire/ -- VEREIT,
Inc. (NYSE: VER) ("VEREIT" or the "Company") announced today its
operating results for the three months and full year ending
December 31, 2020.
2020 Financial and Operating Highlights
- Net income of $201.2 million and
net income per diluted share of $0.72
- Achieved $3.11 AFFO per diluted
share
- Rent collection of 98% for the fourth quarter
- Invested over $1.0 billion of
capital, including approximately $280.0
million acquired for the institutional partnerships and
$400.0 million allocated to the
redemption of the Company's 6.7% Series F Preferred Stock
- Office dispositions totaled $332.5
million with an additional $88.9
million in strategic sales improving portfolio metrics
- Issued $1.8 billion aggregate
principal amount of unsecured notes providing accretive refinancing
of debt
- Issued 13.3 million shares for gross proceeds of $484.1 million under its at-the-market ("ATM")
equity offering program
- Compared to last quarter, Total debt - as reported remained at
$5.9 billion; Adjusted Principal
Outstanding increased from $6.0
billion to $6.1 billion; Net
Debt decreased from $5.8 billion to
$5.6 billion; and Net Debt to
Normalized EBITDA decreased from 5.8x to 5.6x
Dividend Increase
On February 23, 2021, the
Company's Board of Directors increased the quarterly dividend for
the first quarter of 2021 from $0.385
per share to $0.462 per share
representing an increase of 20%. The dividend will be paid on
April 15, 2021 to common stockholders of record as of
March 31, 2021.
Management Commentary
Glenn J. Rufrano, Chief Executive
Officer, stated, "We have had consistently high rent collections
from the beginning of the pandemic and will diligently work to
continue this success. By year end 2020, we moved to increase
acquisition volume and are once again on offense. Bolstered
by our $500 million in cash from both
cash flow and equity raised, we are not dependent on external
funding to achieve our 2021 volume estimates. Our acquisition
model has a number of channels to find opportunities providing
portfolio quality and AFFO growth. With the breadth of irons we
have in the fire, our team has confidence in our guidance
expectations, which includes AFFO growth of approximately 4.5% for
2021."
Fourth Quarter and Full Year 2020 Financial Results
Total Revenues
Total revenues for the quarter ended December 31, 2020
decreased $17.8 million to
$287.9 million as compared to total
revenues of $305.7 million for the
same quarter in 2019.
Total revenues for 2020 decreased $76.7 million to $1.16
billion as compared to total revenues of $1.24 billion in 2019.
Net Income (Loss) and Net Income (Loss) Attributable to
Common Stockholders per Diluted Share
Net income for the quarter ended December 31, 2020
decreased $109.1 million to a net loss of $(37.9) million as compared to net income of
$71.2 million for the same quarter in
2019, and net income per diluted share decreased $0.47 to a net loss per diluted share of
$(0.21) for the quarter ended
December 31, 2020, as compared to net income per diluted share
of $0.26 for the same quarter in
2019.
Net income for 2020 increased $508.3
million to $201.2 million as
compared to a net loss of $(307.1)
million in 2019, and net income per diluted share increased
$2.57 to $0.72 for 2020, as compared to a net loss per
diluted share of $(1.85) for
2019.
Normalized EBITDA
Normalized EBITDA for the quarter ended December 31, 2020
decreased $14.8 million to
$246.7 million as compared to
Normalized EBITDA of $261.5 million
for the same quarter in 2019.
Normalized EBITDA for 2020 decreased $70.5 million to $1.0
billion as compared to Normalized EBITDA of $1.1 billion in 2019.
Funds From Operations Attributable to Common Stockholders and
Limited Partners ("FFO") and FFO per Diluted Share
FFO for the quarter ended December 31, 2020 decreased
$80.1 million to $69.3 million, as compared to $149.4 million for the same quarter in 2019, and
FFO per diluted share decreased $0.38
to $0.31 for the quarter ended
December 31, 2020, as compared to FFO per diluted share of
$0.69 for the same quarter in
2019.
FFO for 2020 increased $716.7
million to $578.3 million as
compared to FFO of $(138.4) million
in 2019, and FFO per diluted share increased $3.33 to $2.65 for
2020, as compared to FFO per diluted share of $(0.68) for 2019.
Adjusted FFO Attributable to Common Stockholders and Limited
Partners ("AFFO") and AFFO per Diluted Share
AFFO for the quarter ended December 31, 2020 decreased
$4.1 million to $169.8 million, as compared to $173.9 million for the same quarter in 2019, and
AFFO per diluted share decreased $0.05 to $0.76 for
the quarter ended December 31, 2020, as compared to
$0.81 for the same quarter in
2019.
Due to the effects of the COVID-19 pandemic, AFFO for the fourth
quarter includes deferred rent of $0.1
million and the negative impacts from $0.6 million of abatement amendments, of which
the majority relates to prior quarter rents, and $9.1 million of reserved rent.
AFFO for 2020 decreased $28.5
million to $678.4 million as
compared to AFFO of $706.9 million in
2019, and AFFO per diluted share decreased $0.36 to $3.11 for
2020, as compared to AFFO per diluted share of $3.47 for 2019.
Due to the effects of the COVID-19 pandemic, AFFO for 2020
includes deferred rent of $17.9
million and the negative impacts from $18.3 million of abatement amendments and
$23.0 million of reserved
rent.
Balance Sheet and Liquidity
As of the end of the fourth quarter, the Company had corporate
liquidity of approximately $2.0
billion, comprised of $523.5
million in cash and cash equivalents and $1.5 billion of availability under its credit
facility. In addition, secured debt was reduced by $0.9 million in the fourth quarter, bringing the
total amount reduced for the year to $195.9
million.
Capital Market Activity
The Company announced $400.0 million in redemptions of VEREIT's
6.7% Series F preferred stock with $150.0
million completed on July 22,
2020, $150.0 million completed
on September 20, 2020, and
$100.0 million completed on
January 15, 2021. This leaves
approximately $373.0 million
outstanding.
In June 2020, the Company issued
$600.0 million aggregate principal
amount of 3.40% senior notes due 2028. Proceeds from the senior
notes were primarily used to fund the repayment of VEREIT's 3.75%
Convertible Senior Notes due December
2020 and repay borrowings under the Operating Partnership's
revolving credit facility.
In November 2020, the Company
issued $1.2 billion aggregate
principal amount of senior notes with a 2.7% weighted average
interest rate and weighted average duration of 10 years primarily
repaying the $900.0 million credit
facility term loan with a cost of 3.6%.
During 2020, the Company issued 13.3 million shares at a
weighted average price per share of $36.41 for gross proceeds of $484.1 million under its ATM equity offering
program, of which $393.6 million was
issued at a weighted average price per share of $37.00 in the fourth quarter.
Consolidated Financial Statistics
Financial Statistics as of the quarter ended December 31,
2020 are as follows: Net Debt to Normalized EBITDA of 5.6x,
Fixed Charge Coverage Ratio of 3.4x, Unencumbered Asset Ratio of
81.7%, Net Debt to Gross Real Estate Investments of 38.0%, and
Weighted Average Debt Term of 6.0 years.
Real Estate Portfolio
As of December 31, 2020, the Company's portfolio consisted
of 3,831 properties with total portfolio occupancy of 98.1%,
investment grade tenancy of 38.7% and a weighted-average remaining
lease term of 8.4 years.
Real Estate Leasing Activity
During the fourth quarter, the Company entered into 63 new and
renewal leases on approximately 1.5 million square feet, bringing
the activity for the year to 256 new and renewal leases on
approximately 7.1 million square feet, or 7.9% of the
portfolio. Leasing activity included 2.8 million square
feet of early renewals for the year. This activity does not
include pandemic related amendments.
Acquisitions
During the quarter ended December 31, 2020, the Company
invested in 26 properties for approximately $178.0 million at an average cash cap rate of
7.2%.
During 2020, the Company invested in 53 properties for
approximately $334.2 million at an
average cash cap rate of 7.1%.
Institutional Partnership Acquisitions
During 2020, the Company closed on an external property
acquisition for the industrial partnership for $246.8 million of which the Company's cash
contribution to the purchase amount was $18.7 million. The Company also closed on
an external property acquisition for the office partnership for
$33.1 million of which the Company's
cash contribution to the purchase amount was $2.7 million.
Dispositions
During the quarter ended December 31, 2020, the Company
disposed of 16 properties for an aggregate sales price of
$78.6 million, including $52.8 million of office properties. Of the total
disposition amount, $77.3 million was
used in the total weighted average cash cap rate calculation of
6.7%. The gain on fourth quarter sales was approximately
$19.0 million.
During 2020, the Company disposed of 79 properties for an
aggregate sales price of $436.0
million, including $332.5
million of office properties. Of the total disposition
amount, $364.4 million was used in
the total weighted average cash cap rate calculation of 6.8%.
The gain on 2020 sales was approximately $96.2 million.
Tenant Credit Updates
Tenants representing more than 11% of VEREIT's annualized rental
income received credit-positive news during 2020 and year-to-date
including:
- Red Lobster was purchased by Thai Union Group PCL, a publicly
listed company, an investor group led by international restaurant
executives, and Red Lobster Management.
- Topgolf Entertainment Group entered into a merger agreement
with Callaway Golf Company, a publicly listed company, which is
expected to close in early 2021.
- Albertsons and Academy Sports completed their initial public
offerings and are now publicly listed companies.
- GPM Investments, LLC's ("GPM") parent company, Arko Holdings,
completed its business combination and is now a publicly listed
company called ARKO Corp. GPM is a growing leader in the U.S.
convenience store industry with multiple brands acquired.
- Tractor Supply received public issuer ratings of BBB from
S&P Global Ratings and Baa1 from Moody's Investors
Service.
- Subsequent to year-end 2020: Petco and Driven Brands (which
owns Take 5 Oil Change and International Car Wash Group) completed
their initial public offerings and are now publicly listed
companies.
COVID-19 Company Update
As of February 16, 2021, VEREIT had received rent of
approximately 87% for the second quarter, 95% for the third
quarter, and 98% for the fourth quarter.
In addition, as of February 16, 2021, VEREIT had received
rent of approximately 99% for January, which is based on the terms
of lease agreements in effect at January 1,
2021 and excludes tenants being accounted for on a cash
basis. This change better reflects normalized collections and
has a very modest impact of approximately 1.0%.
The property type breakdown for rent collection is as
follows:
Property
Type
|
Q2
2020
|
Q3
2020
|
Q4
2020
|
Jan
2021
|
Total
Retail
|
89%
|
98%
|
99%
|
98%
|
Casual
Dining
|
40%
|
71%
|
93%
|
98%
|
Quick
Service
|
89%
|
91%
|
91%
|
96%
|
Total
Restaurant
|
61%
|
80%
|
92%
|
97%
|
Total
Office
|
99%
|
98%
|
99%
|
99%
|
Total
Industrial
|
98%
|
98%
|
100%
|
99%
|
Further rent collection and relief request details can be found
in our investor presentation made available today.
2021 Guidance
The Company expects its 2021 AFFO per diluted share to be in a
range between $3.20 and $3.30 (see reconciliation to net income per share
at the end of this release). This guidance assumes:
- Acquisitions: $1.0 billion to
$1.3 billion at average cash cap
rates of 6.5% to 7.5%
- Office Dispositions: $200 million
to $250 million at average cash cap
rates of 6.0% to 6.75%
- Strategic Dispositions: $50
million to $100 million
- Institutional Partnership Acquisitions: $400 million to $600
million
- Average Occupancy averaging between 97.0% and 98.0%
- Net Debt to Normalized EBITDA: 5.5x to 6.0x
Board of Director Additions
On February 23, 2021, the Company
announced the appointment of Priscilla
Almodovar and Susan Skerritt
to the Company's Board of Directors ("Board") effective immediately
following the filing of the Company's Form 10-K. The addition of
the two new independent directors expands the Board to include nine
members.
Audio Webcast and Call Details
The live audio webcast will be available, beginning at 1:30 p.m.
ET on Wednesday, February 24, 2021,
on the Company's Investor Relations website at:
http://ir.vereit.com/. The dial-in information is as follows:
(844) 746-0748 (domestic) or (412) 317-5274 (international).
Participants should log in 10-15 minutes early.
Approximately one hour following the call, a replay of the
webcast will be available at the link above and archived for up to
12 months. A telephone replay of the conference call can also be
accessed by dialing (877) 344-7529 (domestic) or (412) 317-0088
(international), passcode 10151852. The telephone replay will be
available until March 10, 2021.
About the Company
VEREIT is a full-service real estate operating company which
owns and manages one of the largest portfolios of single-tenant
commercial properties in the U.S. The Company has total real
estate investments of $14.6 billion
including approximately 3,800 properties and 89.5 million square
feet. VEREIT's business model provides equity capital to
creditworthy corporations in return for long-term leases on their
properties. VEREIT is a publicly traded Maryland corporation listed on the New York
Stock Exchange. VEREIT uses, and intends to continue to use, its
Investor Relations website, which can be found at www.VEREIT.com,
as a means of disclosing material nonpublic information and for
complying with its disclosure obligations under Regulation
FD. Additional information about VEREIT can be found through
social media platforms such as Twitter and LinkedIn.
About the Data
Prior period shares and per share amounts have been updated to
reflect the reverse stock split.
Rent collection percentages disclosed are based on contractual rent and recoveries paid by tenants to
cover estimated tax, insurance and common area maintenance
expenses, including the Company's pro rata share of such amounts
related to
properties owned by unconsolidated joint ventures.
Percentages for 2020 are calculated using a denominator that
reflects pre-COVID-19 rents that has not been adjusted for any rent
relief granted. Percentages for 2021 are based on the terms
of the lease agreements in effect at January
1, 2021 and exclude rent due and cash received for leases
being accounted for on a cash basis as of January 1, 2021. This change better reflects
normalized collections and has a very modest impact of
approximately 1.0%. Percentages for both years also exclude any
tenants in bankruptcy prior to the pandemic.
In the second quarter of 2020, the Company updated its
definition of Normalized EBITDA to include the impact of
straight-line rent, in order to be consistent with peer
companies. The Company recast the data presented for prior
periods, including ratios impacted by the change.
Descriptions of FFO and AFFO, EBITDA and Normalized EBITDA,
Principal Outstanding and Adjusted Principal Outstanding, Net Debt,
Interest Expense, Excluding Non-Cash Amortization, Fixed Charge
Coverage Ratio, Net Debt to Normalized EBITDA Annualized Ratio, Net
Debt Leverage Ratio, and Unencumbered Asset Ratio are provided
below. Refer to the subsequent tables for reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP
financial measure and the calculations of these financial
ratios.
Earnings Before Interest, Taxes, Depreciation and
Amortization for Real Estate ("EBITDAre") and Normalized
EBITDA
Due to certain unique operating characteristics of real estate
companies, as discussed below, the National Association of Real
Estate Investment Trusts, Inc. ("Nareit"), an industry trade group,
has promulgated a supplemental performance measure known as
Earnings Before Interest, Taxes, Depreciation and Amortization for
Real Estate. Nareit defines EBITDAre as net income or loss computed
in accordance with GAAP, adjusted for interest expense, income tax
expense (benefit), depreciation and amortization, impairment
write-downs on real estate, gains or losses from disposition of
property and our pro rata share of EBITDAre adjustments related to
unconsolidated partnerships and joint ventures. We calculated
EBITDAre in accordance with Nareit's definition described
above.
In addition to EBITDAre, we use Normalized EBITDA as a non-GAAP
supplemental performance measure to evaluate the operating
performance of the Company. Normalized EBITDA, as defined by the
Company, represents EBITDAre, modified to exclude non-routine items
such as acquisition-related expenses, litigation and non-routine
costs, net, net revenue or expense earned or incurred that is
related to the services agreement associated with a discontinued
operation, gains or losses on sale of investment securities or
mortgage notes receivable, payments on fully reserved loan
receivables and restructuring expenses. We also exclude certain
non-cash items such as impairments of goodwill, intangible and
right of use assets, gains or losses on derivatives, gains or
losses on the extinguishment or forgiveness of debt, write-off of
program development costs, and amortization of intangibles,
above-market lease assets and below-market lease liabilities.
Normalized EBITDA omits the Normalized EBITDA impact of Excluded
Properties. Management believes that excluding these costs from
EBITDAre provides investors with supplemental performance
information that is consistent with the performance models and
analysis used by management, and provides investors a view of the
performance of our portfolio over time. Therefore, EBITDAre and
Normalized EBITDA should not be considered as an alternative to net
income, as computed in accordance with GAAP. The Company uses
Normalized EBITDA as one measure of its operating performance when
formulating corporate goals and evaluating the effectiveness of the
Company's strategies. EBITDAre and Normalized EBITDA may not be
comparable to similarly titled measures of other companies.
Excluded Properties
Excluded Properties are properties for which (i) the related
mortgage loan is in default, and (ii) management decides to
transfer the properties to the lender in connection with settling
the mortgage note obligation. Certain non-GAAP measures and
operating metrics omit the impact of such properties for the month
beginning with the date that such criteria are met in order to
better reflect the ongoing operations of the Company.
At and during the three months ended December 31, 2020,
September 30, 2020, and December 31, 2019 there were no
Excluded Properties owned. During the year ended December 31, 2019, there was one Excluded
Property sold through a foreclosure by the lender on July 2, 2019, with Principal Outstanding of
$19.5 million prior to its
disposition.
Fixed Charge Coverage Ratio
Fixed Charge Coverage Ratio is the sum of (i) Interest Expense,
excluding non-cash amortization, (ii) secured debt principal
amortization on Adjusted Principal Outstanding and (iii) dividends
attributable to preferred shares divided by Normalized EBITDA.
Management believes that Fixed Charge Coverage Ratio is a useful
supplemental measure of our ability to satisfy fixed financing
obligations.
Funds from Operations ("FFO") and Adjusted Funds from
Operations ("AFFO")
Due to certain unique operating characteristics of real estate
companies, as discussed below, Nareit has promulgated a
supplemental performance measure known as FFO, which we believe to
be an appropriate supplemental performance measure to reflect the
operating performance of a REIT. FFO is not equivalent to our net
income or loss as determined under U.S. GAAP.
Nareit defines FFO as net income or loss computed in accordance
with U.S. GAAP adjusted for gains or losses from disposition of
property, depreciation and amortization of real estate assets,
impairment write-downs on real estate, and our pro rata share of
FFO adjustments related to unconsolidated partnerships and joint
ventures. We calculate FFO in accordance with Nareit's definition
described above.
In addition to FFO, we use AFFO as a non-GAAP supplemental
financial performance measure to evaluate the operating performance
of the Company. AFFO, as defined by the Company, excludes from
FFO non-routine items such as acquisition-related expenses,
litigation and non-routine costs, net, net revenue or expense
earned or incurred that is related to the services agreement
associated with a discontinued operation, gains or losses on sale
of investment securities or mortgage notes receivable, payments on
fully reserved loan receivables and restructuring expenses. We also
exclude certain non-cash items such as impairments of goodwill,
intangible and right of use assets, straight-line rent, net direct
financing lease adjustments, gains or losses on derivatives,
reserves for loan loss, gains or losses on the extinguishment or
forgiveness of debt, non-current portion of the tax benefit or
expense, equity-based compensation and amortization of intangible
assets, deferred financing costs, premiums and discounts on debt
and investments, above-market lease assets and below-market lease
liabilities. We omit the impact of the Excluded Properties and
related non-recourse mortgage notes from FFO to calculate AFFO.
Management believes that excluding these costs from FFO provides
investors with supplemental performance information that is
consistent with the performance models and analysis used by
management, and provides investors a view of the performance of our
portfolio over time. AFFO allows for a comparison of the
performance of our operations with other publicly-traded REITs, as
AFFO, or an equivalent measure, is routinely reported by
publicly-traded REITs, and we believe often used by analysts and
investors for comparison purposes.
For all of these reasons, we believe FFO and AFFO, in addition
to net income (loss), as defined by U.S. GAAP, are helpful
supplemental performance measures and useful in understanding the
various ways in which our management evaluates the performance of
the Company over time. However, not all REITs calculate FFO and
AFFO the same way, so comparisons with other REITs may not be
meaningful. FFO and AFFO should not be considered as alternatives
to net income (loss) and are not intended to be used as a liquidity
measure indicative of cash flow available to fund our cash needs.
Neither the SEC, Nareit, nor any other regulatory body has
evaluated the acceptability of the exclusions used to adjust FFO in
order to calculate AFFO and its use as a non-GAAP financial
performance measure.
Gross Real Estate Investments
Gross Real Estate Investments represent total gross real estate
and related assets of Operating Properties, equity investments in
the Cole REITs, investment in direct financing leases, investment
securities backed by real estate and mortgage notes receivable, and
the Company's pro rata share of such amounts related to properties
owned by Unconsolidated Joint Ventures, net of gross
intangible lease liabilities. We believe that the presentation of
Gross Real Estate Investments, which shows our total investments in
real estate and related assets, in connection with Net Debt,
provides useful information to investors to assess our overall
financial flexibility, capital structure and leverage. Gross Real
Estate Investments should not be considered as an alternative to
the Company's real estate investments balance as determined in
accordance with GAAP or any other GAAP financial measures and
should only be considered together with, and as a supplement to,
the Company's financial information prepared in accordance with
GAAP.
Interest Expense, Excluding Non-Cash Amortization
Interest Expense, excluding non-cash amortization is a non-GAAP
measure that represents interest expense incurred on the
outstanding principal balance of our debt and the Company's pro
rata share of the Unconsolidated Joint Ventures' outstanding
principal balance. This measure excludes (i) the amortization
of deferred financing costs, premiums and discounts, which is
included in interest expense in accordance with GAAP, and (ii) the
impact of Excluded Properties and related non-recourse mortgage
notes. We believe that the presentation of Interest Expense,
excluding non-cash amortization, which shows the interest expense
on our contractual debt obligations, provides useful information to
investors to assess our overall solvency and financial flexibility.
Interest Expense, excluding non-cash amortization should not be
considered as an alternative to the Company's interest expense as
determined in accordance with GAAP or any other GAAP financial
measures and should only be considered together with and as a
supplement to the Company's financial information prepared in
accordance with GAAP.
Net Debt Leverage Ratio
Net Debt Leverage Ratio equals Net Debt divided by Gross Real
Estate Investments. We believe that the presentation of Net Debt
Leverage Ratio provides useful information to investors because our
management reviews Net Debt Leverage Ratio as part of its
management of our overall liquidity, financial flexibility, capital
structure and leverage.
Net Debt, Principal Outstanding and Adjusted Principal
Outstanding
Principal Outstanding is a non-GAAP measure that represents the
Company's outstanding principal debt balance, excluding certain
GAAP adjustments, such as premiums and discounts, financing and
issuance costs, and related accumulated amortization. Adjusted
Principal Outstanding includes the Company's pro rata share of the
Unconsolidated Joint Ventures' outstanding principal debt balance.
We believe that the presentation of Principal Outstanding and
Adjusted Principal Outstanding, which show our contractual debt
obligations, provides useful information to investors to assess our
overall financial flexibility, capital structure and leverage.
Principal Outstanding and Adjusted Principal Outstanding should not
be considered as alternatives to the Company's consolidated debt
balance as determined in accordance with GAAP or any other GAAP
financial measures and should only be considered together with, and
as a supplement to, the Company's financial information prepared in
accordance with GAAP.
Net Debt is a non-GAAP measure used to show the Company's
Adjusted Principal Outstanding, less all cash and cash equivalents
and the Company's pro rata share of the Unconsolidated Joint
Ventures' cash and cash equivalents. We believe that the
presentation of Net Debt provides useful information to investors
because our management reviews Net Debt as part of its management
of our overall liquidity, financial flexibility, capital structure
and leverage.
Net Debt to Normalized EBITDA Annualized Ratio
Net Debt to Normalized EBITDA Annualized ("Net Debt to
Normalized EBITDA") equals Net Debt divided by the respective
quarter Normalized EBITDA multiplied by four. We believe that the
presentation of Net Debt to Normalized EBITDA Annualized provides
useful information to investors because our management reviews Net
Debt to Normalized EBITDA Annualized as part of its management of
our overall liquidity, financial flexibility, capital structure and
leverage.
Unencumbered Asset Ratio
Unencumbered Asset Ratio equals unencumbered Gross Real Estate
Investments divided by Gross Real Estate Investments. Management
believes that Unencumbered Asset Ratio is a useful supplemental
measure of our overall liquidity and leverage.
Unconsolidated Joint Ventures
Unconsolidated Joint Ventures include the Company's investments
in unconsolidated joint ventures formed to acquire and own real
estate properties and exclude other investments in unconsolidated
entities.
Forward-Looking Statements
Information set forth herein contains "forward-looking
statements" which reflect the Company's expectations and
projections regarding future events and plans, the Company's future
financial condition, results of operations, liquidity and business,
including leasing and occupancy, acquisitions, the funding and
modeling of acquisitions, dispositions, rent receipts, rent relief
requests, rent relief granted, the payment of future dividends, the
Company's growth and the impact of COVID-19 on the Company's
business. Generally, the words "anticipates," "assumes,"
"believes," "continues," "could," "estimates," "expects," "goals,"
"intends," "may," "plans," "projects," "seeks," "should,"
"targets," "will," variations of such words and similar expressions
identify forward-looking statements. These forward-looking
statements are based on information currently available and involve
a number of known and unknown assumptions and risks, uncertainties
and other factors, which are difficult to predict and beyond
the Company's control, that could cause actual events and plans or
could cause the Company's business, financial condition, liquidity
and results of operations to differ materially from those expressed
or implied in the forward-looking statements. Further, information
regarding historical rent collections should not serve as an
indication of future rent collections.
The following factors, among others, could cause actual results
to differ materially from those set forth in the forward-looking
statements: the Company's ability to meet its 2021 guidance; the
duration and extent of the impact of COVID-19 on our business and
the businesses of our tenants (including their ability to timely
make rental payments) and the economy generally; federal, state or
local legislation or regulation that could impact the timely
payment of rent by tenants in light of COVID-19; the Company's
ability to renew leases, lease vacant space or re-lease space as
leases expire on favorable terms or at all; risks associated with
tenant, geographic and industry concentrations with respect to the
Company's properties; risks accompanying the management of its
industrial and office partnerships; the impact of impairment
charges in respect of certain of the Company's properties;
unexpected costs or liabilities that may arise from potential
dispositions, including related to limited partnership,
tenant-in-common and Delaware
statutory trust real estate programs and the Company's management
with respect to such programs; competition in the acquisition and
disposition of properties and in the leasing of its properties
including that the Company may be unable to acquire, dispose of, or
lease properties on advantageous terms or at all; risks associated
with bankruptcies or insolvencies of tenants, from tenant defaults
generally or from the unpredictability of the business plans and
financial condition of the Company's tenants, which are heightened
as a result of the COVID-19 pandemic; the Company's ability to
access capital markets (including on attractive terms) as a result
of the impact of COVID-19; risks associated with the Company's
substantial indebtedness, including that such indebtedness may
affect the Company's ability to pay dividends and that the terms
and restrictions within the agreements governing the Company's
indebtedness may restrict its borrowing and operating flexibility;
the ability to retain or hire key personnel; and the continuation
or deterioration of current market conditions. Additional factors
that may affect future results are contained in the Company's
filings with the SEC, which are available at the SEC's website at
www.sec.gov. The Company disclaims any obligation to publicly
update or revise any forward-looking statements, whether as a
result of changes in underlying assumptions or factors, new
information, future events or otherwise, except as required by
law.
VEREIT,
INC. CONSOLIDATED BALANCE SHEETS (In thousands,
except for share and per share data)
|
|
|
|
December
31,
2020
|
|
September 30,
2020
(Unaudited)
|
ASSETS
|
|
|
|
|
Real estate
investments, at cost:
|
|
|
|
|
Land
|
|
$
|
2,699,110
|
|
|
$
|
2,691,122
|
|
Buildings, fixtures
and improvements
|
|
10,032,055
|
|
|
10,046,076
|
|
Intangible lease
assets
|
|
1,872,461
|
|
|
1,872,899
|
|
Total real estate
investments, at cost
|
|
14,603,626
|
|
|
14,610,097
|
|
Less: accumulated
depreciation and amortization
|
|
3,863,732
|
|
|
3,829,368
|
|
Total real estate
investments, net
|
|
10,739,894
|
|
|
10,780,729
|
|
Operating lease
right-of-use assets
|
|
195,518
|
|
|
205,346
|
|
Investment in
unconsolidated entities
|
|
81,639
|
|
|
100,339
|
|
Cash and cash
equivalents
|
|
523,539
|
|
|
207,321
|
|
Restricted
cash
|
|
13,842
|
|
|
14,955
|
|
Rent and tenant
receivables and other assets, net
|
|
366,620
|
|
|
391,239
|
|
Goodwill
|
|
1,337,773
|
|
|
1,337,773
|
|
Real estate assets
held for sale, net
|
|
65,583
|
|
|
1,896
|
|
Total
assets
|
|
$
|
13,324,408
|
|
|
$
|
13,039,598
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Mortgage notes
payable, net
|
|
$
|
1,328,835
|
|
|
$
|
1,330,174
|
|
Corporate bonds,
net
|
|
4,584,230
|
|
|
3,406,389
|
|
Convertible debt,
net
|
|
—
|
|
|
252,077
|
|
Credit facility,
net
|
|
—
|
|
|
896,630
|
|
Below-market lease
liabilities, net
|
|
120,938
|
|
|
124,009
|
|
Accounts payable and
accrued expenses
|
|
117,015
|
|
|
112,101
|
|
Derivative, deferred
rent and other liabilities
|
|
63,204
|
|
|
162,952
|
|
Distributions
payable
|
|
89,514
|
|
|
85,420
|
|
Operating lease
liabilities
|
|
209,104
|
|
|
214,102
|
|
Total
liabilities
|
|
6,512,840
|
|
|
6,583,854
|
|
Series F preferred
stock
|
|
189
|
|
|
189
|
|
Common
stock
|
|
2,289
|
|
|
2,183
|
|
Additional paid-in
capital
|
|
13,449,412
|
|
|
13,057,408
|
|
Accumulated other
comprehensive loss
|
|
536
|
|
|
(97,008)
|
|
Accumulated
deficit
|
|
(6,648,028)
|
|
|
(6,514,171)
|
|
Total stockholders'
equity
|
|
6,804,398
|
|
|
6,448,601
|
|
Non-controlling
interests
|
|
7,170
|
|
|
7,143
|
|
Total
equity
|
|
6,811,568
|
|
|
6,455,744
|
|
Total liabilities and
equity
|
|
$
|
13,324,408
|
|
|
$
|
13,039,598
|
|
VEREIT,
INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
Rental
|
|
$
|
287,431
|
|
|
$
|
305,363
|
|
Fees from managed
partnerships
|
|
478
|
|
|
322
|
|
Total
revenues
|
|
287,909
|
|
|
305,685
|
|
Operating
expenses:
|
|
|
|
|
Acquisition-related
|
|
1,048
|
|
|
1,168
|
|
Litigation and
non-routine costs, net
|
|
10,925
|
|
|
8,659
|
|
Property
operating
|
|
31,979
|
|
|
34,066
|
|
General and
administrative
|
|
15,399
|
|
|
16,966
|
|
Depreciation and
amortization
|
|
108,138
|
|
|
112,307
|
|
Impairments
|
|
28,204
|
|
|
22,851
|
|
Restructuring
|
|
—
|
|
|
356
|
|
Total operating
expenses
|
|
195,693
|
|
|
196,373
|
|
Other (expense)
income:
|
|
|
|
|
Interest
expense
|
|
(68,416)
|
|
|
(69,628)
|
|
Loss on extinguishment
and forgiveness of debt, net
|
|
(67)
|
|
|
(17,413)
|
|
Other income,
net
|
|
5,584
|
|
|
7,139
|
|
Loss on derivative
instruments, net
|
|
(85,392)
|
|
|
—
|
|
Equity in income and
gain on disposition of unconsolidated entities
|
|
1,133
|
|
|
936
|
|
Gain on disposition of
real estate and real estate assets held for sale, net
|
|
18,434
|
|
|
41,541
|
|
Total other expenses,
net
|
|
(128,724)
|
|
|
(37,425)
|
|
(Loss) income
before taxes
|
|
(36,508)
|
|
|
71,887
|
|
Provision for income
taxes
|
|
(1,358)
|
|
|
(719)
|
|
Net (loss)
income
|
|
(37,866)
|
|
|
71,168
|
|
Net loss (income)
attributable to non-controlling interests
|
|
46
|
|
|
(43)
|
|
Net (loss) income
attributable to the General Partner
|
|
$
|
(37,820)
|
|
|
$
|
71,125
|
|
|
|
|
|
|
Basic and diluted net
(loss) income per share attributable to common
stockholders
|
|
$
|
(0.21)
|
|
|
$
|
0.26
|
|
Distributions
declared per common share
|
|
$
|
0.39
|
|
|
$
|
0.69
|
|
VEREIT,
INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
|
|
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
Rental
|
|
$
|
1,158,285
|
|
|
$
|
1,237,234
|
|
Fees from managed
partnerships
|
|
3,081
|
|
|
820
|
|
Total
revenues
|
|
1,161,366
|
|
|
1,238,054
|
|
Operating
expenses:
|
|
|
|
|
Acquisition-related
|
|
4,790
|
|
|
4,337
|
|
Litigation and
non-routine costs, net
|
|
2,348
|
|
|
815,422
|
|
Property
operating
|
|
122,967
|
|
|
129,769
|
|
General and
administrative
|
|
61,349
|
|
|
62,711
|
|
Depreciation and
amortization
|
|
452,008
|
|
|
481,995
|
|
Impairments
|
|
65,075
|
|
|
47,091
|
|
Restructuring
|
|
—
|
|
|
10,505
|
|
Total operating
expenses
|
|
708,537
|
|
|
1,551,830
|
|
Other (expense)
income:
|
|
|
|
|
Interest
expense
|
|
(265,660)
|
|
|
(278,574)
|
|
Loss on extinguishment
and forgiveness of debt, net
|
|
(1,486)
|
|
|
(17,910)
|
|
Other income,
net
|
|
6,610
|
|
|
12,209
|
|
Loss on derivative
instruments, net
|
|
(85,392)
|
|
|
(58)
|
|
Equity in income and
gain on disposition of unconsolidated entities
|
|
3,539
|
|
|
2,618
|
|
Gain on disposition of
real estate and real estate assets held for sale, net
|
|
95,292
|
|
|
292,647
|
|
Total other expenses,
net
|
|
(247,097)
|
|
|
10,932
|
|
Income (loss)
before taxes
|
|
205,732
|
|
|
(302,844)
|
|
Provision for income
taxes
|
|
(4,513)
|
|
|
(4,262)
|
|
Net income
(loss)
|
|
201,219
|
|
|
(307,106)
|
|
Net (income) loss
attributable to non-controlling interests
|
|
(91)
|
|
|
6,753
|
|
Net income (loss)
attributable to the General Partner
|
|
$
|
201,128
|
|
|
$
|
(300,353)
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per share attributable to common
stockholders
|
|
$
|
0.72
|
|
|
$
|
(1.85)
|
|
Distributions
declared per common share
|
|
$
|
1.84
|
|
|
$
|
2.75
|
|
VEREIT,
INC.
EBITDAre AND NORMALIZED EBITDA
(In thousands) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
Net (loss)
income
|
|
$
|
(37,866)
|
|
|
$
|
97,983
|
|
|
$
|
71,168
|
|
Adjustments:
|
|
|
|
|
|
|
Interest
expense
|
|
68,416
|
|
|
66,935
|
|
|
69,628
|
|
Depreciation and
amortization
|
|
108,138
|
|
|
109,191
|
|
|
112,307
|
|
Provision for income
taxes
|
|
1,358
|
|
|
1,054
|
|
|
719
|
|
Proportionate share of
adjustments for unconsolidated entities
|
|
2,443
|
|
|
2,451
|
|
|
1,603
|
|
Gain on disposition of
real estate assets, net
|
|
(18,965)
|
|
|
(42,814)
|
|
|
(41,541)
|
|
Impairments of real
estate
|
|
24,852
|
|
|
16,397
|
|
|
22,851
|
|
EBITDAre
|
|
$
|
148,376
|
|
|
$
|
251,197
|
|
|
$
|
236,735
|
|
Impairment of
intangibles and right of use assets
|
|
3,352
|
|
|
—
|
|
|
—
|
|
Payments received on
fully reserved loans
|
|
—
|
|
|
—
|
|
|
(133)
|
|
Acquisition-related
expenses
|
|
1,048
|
|
|
1,050
|
|
|
1,168
|
|
Litigation and
non-routine costs, net
|
|
10,925
|
|
|
105
|
|
|
8,659
|
|
Gain on
investments
|
|
(313)
|
|
|
(76)
|
|
|
—
|
|
Loss on derivative
instruments, net
|
|
85,392
|
|
|
—
|
|
|
—
|
|
Amortization of
above-market lease assets and deferred lease incentives, net of
amortization of below-market lease liabilities
|
|
1,428
|
|
|
393
|
|
|
504
|
|
Loss (gain) on
extinguishment and forgiveness of debt, net
|
|
67
|
|
|
(61)
|
|
|
17,413
|
|
Net direct financing
lease adjustments
|
|
379
|
|
|
381
|
|
|
387
|
|
Restructuring
expenses
|
|
—
|
|
|
—
|
|
|
356
|
|
Other adjustments,
net
|
|
(3,919)
|
|
|
(8)
|
|
|
(3,511)
|
|
Proportionate
share of adjustments for unconsolidated entities
|
|
(46)
|
|
|
(48)
|
|
|
(43)
|
|
Adjustment for
Excluded Properties
|
|
—
|
|
|
—
|
|
|
3
|
|
Normalized
EBITDA
|
|
$
|
246,689
|
|
|
$
|
252,933
|
|
|
$
|
261,538
|
|
Normalized EBITDA
annualized
|
|
$
|
986,756
|
|
|
$
|
1,011,732
|
|
|
$
|
1,046,152
|
|
VEREIT,
INC.
EBITDAre AND NORMALIZED EBITDA
(In thousands) (Unaudited)
|
|
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
Net income
(loss)
|
|
$
|
201,219
|
|
|
$
|
(307,106)
|
|
Adjustments:
|
|
|
|
|
Interest
expense
|
|
265,660
|
|
|
278,574
|
|
Depreciation and
amortization
|
|
452,008
|
|
|
481,995
|
|
Provision for income
taxes
|
|
4,513
|
|
|
4,262
|
|
Proportionate share of
adjustments for unconsolidated entities
|
|
8,430
|
|
|
3,966
|
|
Gain on disposition of
real estate assets, net
|
|
(95,823)
|
|
|
(292,654)
|
|
Impairments of real
estate
|
|
61,723
|
|
|
47,091
|
|
EBITDAre
|
|
$
|
897,730
|
|
|
$
|
216,128
|
|
Impairment of
intangibles and right of use assets
|
|
3,352
|
|
|
—
|
|
Payments received on
fully reserved loans
|
|
—
|
|
|
(133)
|
|
Acquisition-related
expenses
|
|
4,790
|
|
|
4,337
|
|
Litigation and
non-routine costs, net
|
|
2,348
|
|
|
815,422
|
|
Loss on
investments
|
|
294
|
|
|
493
|
|
Loss on derivative
instruments, net
|
|
85,392
|
|
|
58
|
|
Amortization of
above-market lease assets and deferred lease incentives, net of
amortization of below-market lease liabilities
|
|
3,357
|
|
|
2,538
|
|
Loss on extinguishment
and forgiveness of debt, net
|
|
1,486
|
|
|
17,910
|
|
Net direct financing
lease adjustments
|
|
1,497
|
|
|
1,617
|
|
Restructuring
expenses
|
|
—
|
|
|
10,505
|
|
Other adjustments,
net
|
|
(4,078)
|
|
|
(2,686)
|
|
Proportionate
share of adjustments for unconsolidated entities
|
|
(836)
|
|
|
(155)
|
|
Adjustment for
Excluded Properties
|
|
—
|
|
|
(257)
|
|
Normalized
EBITDA
|
|
$
|
995,332
|
|
|
$
|
1,065,777
|
|
VEREIT,
INC.
FUNDS FROM OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2020
|
|
2019
|
Net (loss)
income
|
|
$
|
(37,866)
|
|
|
$
|
71,168
|
|
Dividends on
non-convertible preferred stock
|
|
(7,923)
|
|
|
(15,964)
|
|
Gain on disposition
of real estate assets, net
|
|
(18,965)
|
|
|
(41,541)
|
|
Depreciation and
amortization of real estate assets
|
|
107,758
|
|
|
111,892
|
|
Impairment of real
estate
|
|
24,852
|
|
|
22,851
|
|
Proportionate share
of adjustments for unconsolidated entities
|
|
1,457
|
|
|
1,027
|
|
FFO attributable
to common stockholders and limited partners
|
|
$
|
69,313
|
|
|
$
|
149,433
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic
|
|
222,152,574
|
|
|
214,125,180
|
|
Effect of
weighted-average Limited Partner OP Units and dilutive
securities
|
|
358,851
|
|
|
1,404,231
|
|
Weighted-average
shares outstanding - diluted
|
|
222,511,425
|
|
|
215,529,411
|
|
|
|
|
|
|
FFO attributable
to common stockholders and limited partners per diluted
share
|
|
$
|
0.31
|
|
|
$
|
0.69
|
|
VEREIT,
INC.
FUNDS FROM OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
Net
income
|
|
$
|
201,219
|
|
|
$
|
(307,106)
|
|
Dividends on
non-convertible preferred stock
|
|
(44,590)
|
|
|
(68,488)
|
|
Gain on disposition
of real estate assets, net
|
|
(95,823)
|
|
|
(292,654)
|
|
Depreciation and
amortization of real estate assets
|
|
450,413
|
|
|
480,064
|
|
Impairment of real
estate
|
|
61,723
|
|
|
47,091
|
|
Proportionate share
of adjustments for unconsolidated entities
|
|
5,369
|
|
|
2,721
|
|
FFO attributable
to common stockholders and limited partners
|
|
$
|
578,311
|
|
|
$
|
(138,372)
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic
|
|
217,548,175
|
|
|
199,627,994
|
|
Effect of
weighted-average Limited Partner OP Units and dilutive
securities
|
|
313,830
|
|
|
4,018,964
|
|
Weighted-average
shares outstanding - diluted
|
|
217,862,005
|
|
|
203,646,958
|
|
|
|
|
|
|
FFO attributable
to common stockholders and limited partners per diluted
share
|
|
$
|
2.65
|
|
|
$
|
(0.68)
|
|
VEREIT,
INC.
ADJUSTED FUNDS FROM OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2020
|
|
2019
|
FFO attributable
to common stockholders and limited partners
|
|
$
|
69,313
|
|
|
$
|
149,433
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
1,048
|
|
|
1,168
|
|
Litigation and
non-routine costs, net
|
|
10,925
|
|
|
8,659
|
|
Impairment of
intangibles and right of use assets
|
|
3,352
|
|
|
—
|
|
Payments received on
fully reserved loans
|
|
—
|
|
|
(133)
|
|
Gain on
investments
|
|
(313)
|
|
|
—
|
|
Loss on derivative
instruments, net
|
|
85,392
|
|
|
—
|
|
Amortization of
premiums and discounts on debt and investments, net
|
|
(193)
|
|
|
(1,479)
|
|
Amortization of
above-market lease assets and deferred lease incentives, net of
amortization of below-market lease liabilities
|
|
1,428
|
|
|
504
|
|
Net direct financing
lease adjustments
|
|
379
|
|
|
387
|
|
Amortization and
write-off of deferred financing costs
|
|
6,262
|
|
|
5,305
|
|
Loss on
extinguishment and forgiveness of debt, net
|
|
67
|
|
|
17,413
|
|
Straight-line
rent
|
|
(7,108)
|
|
|
(7,107)
|
|
Equity-based
compensation
|
|
2,952
|
|
|
2,934
|
|
Restructuring
expenses
|
|
—
|
|
|
356
|
|
Other adjustments,
net
|
|
(3,536)
|
|
|
(3,097)
|
|
Proportionate share
of adjustments for unconsolidated entities
|
|
(170)
|
|
|
(493)
|
|
Adjustment for
Excluded Properties
|
|
—
|
|
|
3
|
|
AFFO attributable
to common stockholders and limited partners
|
|
$
|
169,798
|
|
|
$
|
173,853
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic
|
|
222,152,574
|
|
|
214,125,180
|
|
Effect of
weighted-average Limited Partner OP Units and dilutive
securities
|
|
358,851
|
|
|
1,404,231
|
|
Weighted-average
shares outstanding - diluted
|
|
222,511,425
|
|
|
215,529,411
|
|
|
|
|
|
|
AFFO attributable
to common stockholders and limited partners per diluted
share
|
|
$
|
0.76
|
|
|
$
|
0.81
|
|
VEREIT,
INC.
ADJUSTED FUNDS FROM OPERATIONS
(In thousands, except for share and per share data)
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
FFO attributable
to common stockholders and limited partners
|
|
$
|
578,311
|
|
|
$
|
(138,372)
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
4,790
|
|
|
4,337
|
|
Litigation and
non-routine costs, net
|
|
2,348
|
|
|
815,422
|
|
Impairment of
intangibles and right of use assets
|
|
3,352
|
|
|
—
|
|
Payments received on
fully reserved loans
|
|
—
|
|
|
(133)
|
|
Gain on
investments
|
|
294
|
|
|
493
|
|
Loss on derivative
instruments, net
|
|
85,392
|
|
|
58
|
|
Amortization of
premiums and discounts on debt and investments, net
|
|
(1,445)
|
|
|
(5,312)
|
|
Amortization of
above-market lease assets and deferred lease incentives, net of
amortization of below-market lease liabilities
|
|
3,357
|
|
|
2,538
|
|
Net direct financing
lease adjustments
|
|
1,497
|
|
|
1,617
|
|
Amortization and
write-off of deferred financing costs
|
|
15,115
|
|
|
15,464
|
|
Loss on
extinguishment and forgiveness of debt, net
|
|
1,486
|
|
|
17,910
|
|
Straight-line
rent
|
|
(25,161)
|
|
|
(28,032)
|
|
Equity-based
compensation
|
|
12,402
|
|
|
12,251
|
|
Restructuring
expenses
|
|
—
|
|
|
10,505
|
|
Other adjustments,
net
|
|
(2,488)
|
|
|
(773)
|
|
Proportionate share
of adjustments for unconsolidated entities
|
|
(848)
|
|
|
(1,005)
|
|
Adjustment for
Excluded Properties
|
|
—
|
|
|
(33)
|
|
AFFO attributable
to common stockholders and limited partners
|
|
$
|
678,402
|
|
|
$
|
706,935
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic
|
|
217,548,175
|
|
|
199,627,994
|
|
Effect of
weighted-average Limited Partner OP Units and dilutive
securities
|
|
313,830
|
|
|
4,018,964
|
|
Weighted-average
shares outstanding - diluted
|
|
217,862,005
|
|
|
203,646,958
|
|
|
|
|
|
|
AFFO attributable
to common stockholders and limited partners per diluted
share
|
|
$
|
3.11
|
|
|
$
|
3.47
|
|
VEREIT,
INC.
FINANCIAL AND OPERATIONS STATISTICS AND RATIOS
(Dollars in thousands) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
December
31,
2020
|
Interest expense - as
reported
|
|
$
|
68,416
|
|
Adjustments:
|
|
|
Amortization of
deferred financing costs and other non-cash charges
|
|
(6,189)
|
|
Amortization of net
premiums
|
|
120
|
|
Proportionate share
of amounts for Unconsolidated Joint Ventures
|
|
806
|
|
Interest Expense,
Excluding Non-Cash Amortization
|
|
$
|
63,153
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
2020
|
Interest Expense,
Excluding Non-Cash Amortization
|
|
$
|
63,153
|
|
Secured debt
principal amortization
|
|
858
|
|
Dividends
attributable to preferred shares
|
|
7,923
|
|
Total fixed
charges
|
|
71,934
|
|
Normalized
EBITDA
|
|
246,689
|
|
Fixed Charge Coverage
Ratio
|
|
3.43x
|
|
|
December
31,
2020
|
|
September
30,
2020
|
Mortgage notes
payable, net
|
|
$
|
1,328,835
|
|
|
$
|
1,330,174
|
|
Corporate bonds,
net
|
|
4,584,230
|
|
|
3,406,389
|
|
Convertible debt,
net
|
|
—
|
|
|
252,077
|
|
Credit facility,
net
|
|
—
|
|
|
896,630
|
|
Total debt - as
reported
|
|
5,913,065
|
|
|
5,885,270
|
|
Deferred financing
costs, net
|
|
44,573
|
|
|
39,204
|
|
Net discounts
(premiums)
|
|
25,557
|
|
|
12,343
|
|
Principal
Outstanding
|
|
5,983,195
|
|
|
5,936,817
|
|
Proportionate share
of amounts for Unconsolidated Joint Ventures
|
|
106,516
|
|
|
106,516
|
|
Adjusted Principal
Outstanding
|
|
$
|
6,089,711
|
|
|
$
|
6,043,333
|
|
Cash and cash
equivalents
|
|
(523,539)
|
|
|
(207,321)
|
|
Pro rata share of
Unconsolidated Joint Ventures' cash and cash equivalents
|
|
(1,619)
|
|
|
(3,776)
|
|
Net
Debt
|
|
$
|
5,564,553
|
|
|
$
|
5,832,236
|
|
|
|
December
31,
2020
|
Total real estate
investments, at cost - as reported
|
|
$
|
14,603,626
|
|
Adjustments:
|
|
|
Investment in Cole
REITs
|
|
7,255
|
|
Gross assets held for
sale
|
|
91,341
|
|
Investment in direct
financing leases, net
|
|
6,547
|
|
Gross below market
leases
|
|
(227,442)
|
|
Proportionate share
of amounts for Unconsolidated Joint Ventures
|
|
165,643
|
|
Gross Real Estate
Investments
|
|
$
|
14,646,970
|
|
|
|
December
31,
2020
|
|
September
30,
2020
|
Net
Debt
|
|
$
|
5,564,553
|
|
|
$
|
5,832,236
|
|
Normalized EBITDA
Annualized
|
|
986,756
|
|
|
1,011,732
|
|
Net Debt to
Normalized EBITDA Annualized Ratio
|
|
5.64x
|
|
5.76x
|
|
|
December
31,
2020
|
Net
Debt
|
|
$
|
5,564,553
|
|
Gross Real Estate
Investments
|
|
14,646,970
|
|
Net Debt Leverage
Ratio
|
|
38.0
|
%
|
|
|
|
Unencumbered Gross
Real Estate Investments
|
|
$
|
11,968,277
|
|
Gross Real Estate
Investments
|
|
14,646,970
|
|
Unencumbered asset
ratio
|
|
81.7
|
%
|
VEREIT, INC.
ADJUSTED FUNDS FROM
OPERATIONS PER DILUTED SHARE - 2021
GUIDANCE
(Unaudited)
The Company expects its 2021 AFFO per diluted share to be in a
range between $3.20 and $3.30. This guidance assumes:
- Acquisitions: $1.0 billion to
$1.3 billion at average cash cap
rates of 6.5% to 7.5%
- Office Dispositions: $200 million
to $250 million at average cash cap
rates of 6.0% to 6.75%
- Strategic Dispositions: $50
million to $100 million
- Institutional Partnership Acquisitions: $400 million to $600
million
- Average Occupancy averaging between 97.0% and 98.0%
- Net Debt to Normalized EBITDA: 5.5x to 6.0x
The estimated net income per diluted share is not a projection
and is provided solely to satisfy the disclosure requirements of
the U.S. Securities and Exchange Commission.
|
|
Low
|
|
High
|
|
Diluted net income
per share attributable to common stockholders and limited partners
(1)
|
|
$
|
1.38
|
|
|
$
|
1.47
|
|
|
Depreciation and
amortization of real estate assets
|
|
1.78
|
|
|
1.79
|
|
|
Proportionate share
of adjustments for unconsolidated entities
|
|
0.01
|
|
|
0.01
|
|
|
FFO attributable to
common stockholders and limited partners per diluted
share
|
|
3.17
|
|
|
3.27
|
|
|
Adjustments
(2)
|
|
0.03
|
|
|
0.03
|
|
|
AFFO attributable to
common stockholders and limited partners per diluted
share
|
|
$
|
3.20
|
|
|
$
|
3.30
|
|
|
_____________________________________
|
(1)
|
Includes impact of
dividends to be paid to preferred shareholders.
|
(2)
|
Includes (i)
non-routine items such as acquisition-related expenses, litigation
and other non-routine costs, net, and (ii) certain non-cash items
such as straight-line rent, net, direct financing lease
adjustments, equity-based compensation and amortization of
intangible assets, deferred financing costs, premiums and discounts
on debt , above-market lease assets and below-market lease
liabilities.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vereit-announces-fourth-quarter-and-full-year-2020-operating-results-301234065.html
SOURCE VEREIT Services Inc