American Realty Capital Properties Accelerates 2013 Forecasted Acquisitions
with Agreement to Acquire $807 Million GE Capital Portfolio, Creating Pro
Forma Enterprise Value of Approximately $6.9 Billion
Acquisition Will Further Diversify ARCP's Net Lease Portfolio by Adding 471
Net Lease Properties
Announced 2013 Acquisitions Will Create a Portfolio of 1,264 Net Lease
NEW YORK, May 31, 2013
NEW YORK, May 31, 2013 /PRNewswire/ --American Realty Capital Properties,
Inc. ("ARCP" or the "Company") (NASDAQ: "ARCP") announced today that it has
entered into an agreement to purchase from GE Capital a $807 million portfolio
of 471 net lease properties comprised primarily of nationally recognized
restaurants. The 471 property portfolio includes assets net leased to tenants
who operate restaurants including: IHOP; Jack in the Box; Golden Corral;
Burger King; Arby's; Taco Bell; Applebee's; Wendy's; Logan's Roadhouse; and
Denny's. These ten national brands constitute approximately 64% of the net
operating income of the portfolio to be acquired.
Nicholas S. Schorsch, Chief Executive Officer and Chairman of ARCP commented,
"This transaction allows us to deliver on our promise to acquire $1.1 billion
of properties, consistent with our investment strategy, and do so earlier than
expected in 2013 at a cap rate in excess of 7%. This acquisition solidifies
the Company's position as the fastest growing single tenant net lease REIT. We
are pleased to have forged this agreement to purchase a portion of the
formerly publicly traded Trustreet Properties Inc. portfolio from GE Capital
which bolsters and further diversifies significantly our net lease portfolio."
Mike Weil, President of ARCP added, "This portfolio acquisition underscores
our ability to identify and purchase a diversified pool of assets anchored by
brand name tenants paying rents which are accretive to our earnings." Mr. Weil
continued, "Following this transaction, our portfolio will be among the
strongest net lease REIT programs available to the investor, diversified
across industry, geographical location and tenant."
"With approximately $355 million in acquisitions closed year-to-date, as a
result of this announced acquisition, once closed, ARCP will exceed its
previously announced $1.1 billion of 2013 forecasted purchases by the end of
the second quarter of 2013, five months earlier than expected. Our pipeline of
additional acquisitions for 2013 remains strong. Following the close of all of
our announced target acquisitions, we expect to own a portfolio comprised
of1,264 properties which is 69% investment grade. We will use low-cost
financing and equity as necessary," stated Brian S. Block, Chief Financial
Officer of the Company.
Strategic and Financial Benefits of Expected 2013 ARCP Portfolio Transactions
Strategic Portfolio Construction. This portfolio acquisition significantly
advances ARCP's investment objectives by growing its net lease portfolio
consistent with its investment strategy and further reduces its credit
concentration by adding 137 new tenants. ARCP's expected 2013 portfolio will
include more than 225 distinct tenants.
High Portfolio Occupancy and Balance of Lease Duration. The Company reasonably
expects its portfolio to remain approximately 100% occupied. The average
remaining lease duration on the entire portfolio would be 9.0 years,
reflecting the Company's strong balance of mid-term and long-term lease
durations. Only modest lease rollover would occur until 2018.
Increased Size and Scale. Once ARCP completes its expected 2013 acquisitions,
its portfolio of 1,264 net lease properties, containing over 30.0 million
rentable square feet, will be one of the largest net lease portfolios among
Available Financing. ARCP expects to use currently available debt to
consummate the GE Capital transaction, supporting ARCP's strategy of finding
accretive transactions to prudently expands its portfolio.
Increased Diversification/Reduced Concentration. 2013 pro forma rental revenue
generated by ARCP's largest 10 tenants will decline from 60% to 36%. The
Company's portfolio would include tenants located in 48 states plus Puerto
Rico spanning 27 industries.
The table attached as Annex A hereto shows ARCP's improved top ten tenant
concentration following the close of its announced 2013 acquisitions. ARCP's
top tenants will remain 100% investment grade.
ARCPis a publicly traded Maryland corporation listed on The NASDAQ
GlobalSelect Market that qualified as a real estate investment trust for U.S.
federal income tax purposes for the taxable year ended December 31, 2011,
focused onacquiring and owning single tenant freestanding commercial
propertiessubject to net leases with high credit quality tenants.
Additionalinformation about ARCP can be found on its website at
www.arcpreit.com. The Company may disseminate important information regarding
the company and its operations, including financial information, through
social mediaplatforms such as Twitter, Facebook and LinkedIn.
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 the outcome to be materially different. In
addition, words such as "anticipate," "believe," "expect" and "intend"
indicate a forward-looking statement, although not all forward-looking
statements include these words.
SOURCE American Realty Capital Properties, Inc.
Contact: From: Anthony J. DeFazio, Diccicco Battista Communications,
email@example.com, 484-342-3600; or Brian S. Block, EVP & CFO, American
Realty Capital Properties, Inc., firstname.lastname@example.org, 212-415-6500
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