/C O R R E C T I O N -- American Realty Capital Properties, Inc./

      /C O R R E C T I O N -- American Realty Capital Properties, Inc./

PR Newswire

NEW YORK, Aug. 6, 2013

In the news release, American Realty Capital Properties Announces Record
Second Quarter 2013 Operating Results and $0.19 AFFO per Share, or $0.23
Normalized AFFO per Share, issued 06-Aug-2013 by American Realty Capital
Properties, Inc. over PR Newswire, we are advised by the company that under
the section titled "2014 Guidance Update", the second paragraph, third
sentence should read "Estimated 2014 acquisitions total $1.0 billion, to be
purchased at an 8.25% average capitalization rate, funded with 65% common
equity and 35% fixed rate debt." rather than "Estimated 2014 acquisitions
total $1.0 billion, to be purchased at an 8.0% average capitalization rate,
funded with 70% common equity and 30% fixed rate debt." as originally issued
inadvertently. The complete, corrected release follows:

  American Realty Capital Properties Announces Record Second Quarter 2013
  Operating Results and $0.19 AFFO per Share, or $0.23 Normalized AFFO per

    Completes $878 Million of Acquisitions at Average 7.6% Cap Rate

    Increases Balance of 2013 Acquisition Guidance to $1.1 Billion at 8.0%
    Average Cap Rate

NEW YORK, Aug. 6, 2013 /PRNewswire/ --American Realty Capital Properties,
Inc. (NASDAQ: ARCP) ("ARCP" or the "Company") announced today its operating
results for the three and six months ended June30, 2013. Operating highlights
are provided below. All per share results are reported on a fully diluted

(Logo: http://photos.prnewswire.com/prnh/20120529/NY15147LOGO )

For the quarter ended June30, 2013, revenues were $45.0 million, compared to
$40.2 million in the first quarter of 2013, or a quarter-to-quarter increase
of over 11.8%. Funds from operations and adjusted funds from operations
totaled $13.6 million and $32.8 million for the second quarter of 2013,
respectively, compared to $24.4 million and $30.7 million generated in the
quarter ended March 31, 2013, respectively.

Second Quarter 2013 Operating Highlights (three months ended June 30, 2013)

  oRevenues: $45.0 million. Annualized revenues as of June30, 2013 are
    $227.8 million.
  oNet operating income (excluding one-time merger and acquisition related
    costs and non-cash depreciation and amortization expenses): $37.9 million.
  oCore funds from operations: $28.8 million, or $0.17 per share (excluding
    one-time acquisition related costs).
  oAdjusted funds from operations: $32.8 million, or $0.19 per share.
  oNormalized AFFO per share: $0.23 per share (run rate to normalize timing
    of second quarter events).
  oTotal dividends paid to common stockholders: $37.1 million, or $0.904 per
    share on an annualized basis ($0.910 per share on an annualized basis at
    June30, 2013).
  oDividend increase: Declared on May 28, 2013, an increase in annual
    dividend rate from $0.910 per share to $0.940 per share, contingent upon
    and effective with the earlier of the close of the ARCT IV merger and the
    CapLease merger (each described below).
  oFully diluted weighted-average shares outstanding: 171.0 million.

Property Portfolio Highlights

  oPortfolio composition: 1,181 properties, 100% occupied (excluding one
    vacant property classified as held-for-sale), freestanding single-tenant
    properties comprised of 19.4 million square feet, occupied by 69.3%
    investment grade corporate tenants (attributing the rating of each parent
    company to its wholly owned subsidiary, as applicable) with a weighted
    average remaining lease term of 10 years.
  o2Q asset acquisitions: $878.3 million of properties acquired at an average
    capitalization rate of 7.6% (including expected contingent rental income).
  oAcquisitions subsequent to quarter end: 26 properties acquired for $25.3
    million since July 1, 2013, at an average capitalization rate of 8.6%.
  o2H 2013 acquisition targets and pipeline: Target acquisitions for the
    balance of 2013 increased to $1.1 billion at an average capitalization
    rate of 8.0%, including approximately 150 properties with an aggregate
    purchase price of approximately $690 million under definitive purchase

Other Activity

  oCapLease merger: Announced on May 28, 2013 $2.2 billion acquisition of
    CapLease Inc. ("CapLease"), which is expected to close mid-September, with
    the CapLease special stockholder meeting scheduled for September 10, 2013.
  oARCT IV merger: Announced on July 2, 2013 $3.1 billion acquisition of
    American Realty Capital Trust IV, Inc. ("ARCT IV"), expected to close mid-
    to late-September (respective special shareholder meetings have not yet
    been scheduled).
  oEquity offerings: Closed $900 million common and preferred stock private
  oDebt offering: $310 million underwritten 3.00% convertible notes offering
    (closed July 29, 2013), including $10 million over-allotment option
    exercised (closed August 1, 2013).
  oSenior corporate credit facility: Upsized senior corporate credit facility
    by $250 million as of August 1, 2013, providing total financing capacity
    of up to $1.7 billion with additional "accordion" capacity, subject to
    certain conditions, of up to $2.5 billion.
  oCredit facility capacity: Credit facility balance as of June 30, 2013
    consisted of $600 million term loan, providing $1.1 billion of capacity
    including new commitments.

"The second quarter of 2013 was about deliberate and predictable execution in
all aspects of our business," commented ARCP Chairman and CEO Nicholas S.
Schorsch. "We made great strides in capital markets activities by closing a
$900 million private placement, upsizing our senior secured credit facility to
$1.7 billion of capacity as well as finalizing a $310 million convertible debt
offering. This execution serves as the framework of building a long-term
balance sheet as we continue to enhance ARCP's position as the leader in the
net lease sector. Our strategic vision is furthered with the completion of
the two pending mergers, a substantial and highly accretive acquisition
pipeline and a growing team of seasoned real estate professionals as we look
towards a future internalization event."

"Our acquisition team continues to identify properties that meet our
investment criteria, complement our existing holdings, and increase our
portfolio diversification," noted ARCP President Michael Weil. "Through a
tremendous team effort, we reached our full year 2013 acquisition targets,
excluding merger transactions, by June 30, 2013, and based on the identified
pipeline, including nearly $690 million of properties currently under
contract, we anticipate an additional $1.1 billion of organic accretive
acquisitions by year end. Equally as important, we continue to be highly
selective in what we acquire, and at the same time, expect to make such
acquisitions at an average capitalization rate of approximately 8% in regard
to second half 2013 acquisitions."

"As in other areas of our business, execution this quarter in the capital
markets arena resulted in meaningfully positive results for our shareholders,"
remarked Brian D. Jones, Executive Vice President and Chief Operating Officer
of ARCP. "We demonstrated the sponsorship of our existing shareholder base
with the $900 million private placement, and the successful $310 million
underwritten convertible notes offering showed access to a variety of capital
sources. We also expect to expand significantly our sell-side research
coverage from the lead underwriters in that offering. Our bank lending
partner group has broadened and deepened its support of our growth with
additional commitments to our credit facility. And, as we continue with the
process of increasing our use of unsecured, long term, fixed rate debt, we are
not only accessing yet another new capital source, but also engaging more
formally with rating agencies in pursuit of an investment grade credit

"We are pleased to announce revised 2014 earnings guidance reflecting our
progress to date with respect to utilizing fixed rate match funded debt
financing, including $1.4 billion of five, seven and ten year fixed rate
senior unsecured debt at an average interest rate of 4.10%, which also allows
us to maintain $1.0 billion of unused capacity under our credit facility,"
added Brian S. Block, Executive Vice President and Chief Financial Officer of
ARCP. "We have greater visibility of the two pending mergers scheduled to
close by the end of the third quarter and the capability of utilizing
financing arrangements in-place at the time of acquisition that provide us
with flexibility. Our current under leveraged balance sheet and ample credit
facility availability afford us the option to fund these transactions without
issuing additional common equity at this time, but rather to do so selectively
at the appropriate stock price in order to fund future accretive organic

2014 Guidance Update

As a result of increased 2013 acquisition volume and more favorable than
expected pricing, visibility on pending mergers and advancement of plans to
increase the duration and amount of fixed rate borrowing, ARCP has revised
2014 per share AFFO guidance to $1.14 to $1.18 per share.

2014 AFFO                                             Low             High
AFFO                                                 $465.8M        $441.9M
Weighted average shares outstanding                   407.9M          376.0M
AFFO per share                                   $1.14            $1.18
Year-end EBITDA run rate                $686.6M          $686.6M
Year-end Debt / EBITDA                     6.9x  7.6x

The low- and high-end of this range reflect additional interest costs related
to increased duration of fixed rate borrowings to match fund assets and
liabilities, as previously discussed by the Company, the initial steps of
which are already underway, and which includes $1.4 billion of 5-, 7-, and
10-year senior unsecured debt. Based on preliminary indications and prior
experiences, ARCP estimates that cash consideration elections by ARCT IV
shareholders will total approximately $160 million, or approximately 7.5% of
total transaction consideration, significantly below the maximum 25% cash
consideration offered. Estimated 2014 acquisitions total $1.0 billion, to be
purchased at an 8.25% average capitalization rate, funded with 65% common
equity and 35% fixed rate debt.The high-end of the range is achieved if
approximately $500 million of fixed rate mortgage debt held by CapLease is
assumed by ARCP rather than repaid with the proceeds from the sale of common
equity and approximately $40 million of related defeasance costs are not
incurred, which results in zero incremental equity issuance in connection with
the CapLease transaction.

Property Portfolio

As of June30, 2013, the Company owned 1,181 freestanding, single-tenant, 100%
occupied net leased properties comprised of 19.4 million square feet
(excluding one vacant property classified as held-for-sale). These properties
are located in 48 states plus Puerto Rico and include 180 tenants, operating
in 21 distinct industries. The weighted average remaining primary lease term
of the June 30, 2013 portfolio is 10 years and 69.3% of annualized rental
income is from tenants with investment grade ratings as determined by a major
credit rating agency (attributing the rating of each parent company to its
wholly owned subsidiary, as applicable).

Second Quarter 2013 Conference Call Details

ARCP will be hosting its second quarter 2013 conference call and webcast on
Tuesday, August6, 2013 at 10:00 AM ET. Nicholas S. Schorsch, Chairman and
Chief Executive Officer, and Brian S. Block, Executive Vice President and
Chief Financial Officer, will conduct the call. Conference call details are as

Live Conference Call and Webcast Details*
Domestic Dial-In Number: 1-888-317-6003
International Dial-In Number: 1-412-317-6061
Canada Dial-In Number: 1-866-284-3684
Conference ID: 2588195
Webcast: http://arcpreit.com/Q22013EarningsCall
*Participants should dial in 10-15 minutes early.

Conference Call Replay Details
Domestic Dial-In Number: 1-877-344-7529
International Dial-In Number: 1-412-317-0088
Conference ID: 10031297
Date Available: August6, 2013 (one hour after the end of the conference call)
to October 7, 2013 at 9:00 AM ET

Supplemental Information

Supplemental information on the Company's second quarter 2013 operations can
be found in the Company's Current Report on Form 8-K filed with the U.S.
Securities and Exchange Commission (SEC) on August6, 2013. The supplemental
information report is titled "Quarterly Supplemental Information: Second
Quarter 2013." Information in this report includes, in addition to other data:
(1) Consolidated Balance Sheet and Income Statement Details; (2) Funds from
Operations and Adjusted Funds from Operations details; (3) Dividend Summary;
and (4) Portfolio Details.

Funds From Operations, Core Funds From Operations and Adjusted Funds From
Operations (FFO/Core FFO/AFFO)

We define FFO, a non-GAAP measure, consistent with the standards established
by the White Paper on FFO approved by the Board of Governors of NAREIT, as
revised in February 2004 (the "White Paper"). The White Paper defines FFO as
net income or loss computed in accordance with U.S. GAAP, excluding gains or
losses from sales of property but including asset impairment writedowns, plus
depreciation and amortization, after adjustments for unconsolidated
partnerships and joint ventures. Adjustments for unconsolidated partnerships
and joint ventures are calculated to reflect FFO. Our FFO calculation complies
with NAREIT's policy described above.

The historical accounting convention used for real estate assets requires
straight-line depreciation of buildings and improvements, which implies that
the value of real estate assets diminishes predictably over time, especially
if such assets are not adequately maintained or repaired and renovated as
required by relevant circumstances and/or is requested or required by lessees
for operational purposes in order to maintain the value disclosed. We believe
that, since real estate values historically rise and fall with market
conditions, including inflation, interest rates, the business cycle,
unemployment and consumer spending, presentations of operating results for a
REIT using historical accounting for depreciation may be less informative.
Historical accounting for real estate involves the use of U.S. GAAP. Any other
method of accounting for real estate such as the fair value method cannot be
construed to be any more accurate or relevant than the comparable
methodologies of real estate valuation found in U.S. GAAP. Nevertheless, we
believe that the use of FFO, which excludes the impact of real estate related
depreciation and amortization, provides a more complete understanding of our
performance to investors and to management, and when compared year over year,
reflects the impact on our operations from trends in occupancy rates, rental
rates, operating costs, general and administrative expenses, and interest
costs, which may not be immediately apparent from net income. We also add back
to net income deriving FFO certain costs associated with our Merger and other
transactions as these expenses and transactions do not reflect our operations
in the current period. However, FFO, core FFO and AFFO, as described below,
should not be construed to be more relevant or accurate than the current U.S.
GAAP methodology in calculating net income or in its applicability in
evaluating our operating performance. The method utilized to evaluate the
value and performance of real estate under U.S. GAAP should be construed as a
more relevant measure of operational performance and considered more
prominently than the non-GAAP FFO, core FFO and AFFO measures and the
adjustments to U.S. GAAP in calculating FFO, core FFO and AFFO.

We consider FFO, core FFO adjusted to exclude acquisition related costs and
AFFO, adjusted to exclude certain other non-cash income or expense items,
useful indicators of the performance of a REIT. Because FFO calculations
exclude such factors as depreciation and amortization of real estate assets
and gains or losses from sales of operating real estate assets (which can vary
among owners of identical assets in similar conditions based on historical
cost accounting and useful-life estimates), they facilitate comparisons of
operating performance between periods and between other REITs in our peer
group. Accounting for real estate assets in accordance with U.S. GAAP
implicitly assumes that the value of real estate assets diminishes predictably
over time. Since real estate values have historically risen or fallen with
market conditions, many industry investors and analysts have considered the
presentation of operating results for real estate companies that use
historical cost accounting to be insufficient by themselves.

Additionally, we believe that core FFO and AFFO, by excluding
acquisition-related fees and expenses, provides information consistent with
management's analysis of the operating performance of the properties. By
providing core FFO and AFFO, we believe we are presenting useful information
that assists investors and analysts to better assess the sustainability of our
operating performance. Further, we believe core FFO and AFFO is useful in
comparing the sustainability of our operating performance with the
sustainability of the operating performance of other real estate companies,
including exchange-traded and non-traded REITs.

As a result, we believe that the use of FFO, core FFO and AFFO, together with
the required U.S. GAAP presentations, provide a more complete understanding of
our performance relative to our peers and a more informed and appropriate
basis on which to make decisions involving operating, financing, and investing

FFO, core FFO and AFFO are non-GAAP financial measures and do not represent
net income as defined by U.S. GAAP. FFO, core FFO and AFFO do not represent
cash flows from operations as defined by U.S. GAAP, are not indicative of cash
available to fund all cash flow needs and liquidity, including our ability to
pay distributions and should not be considered as alternatives to net income,
as determined in accordance with U.S. GAAP, for purposes of evaluating our
operating performance. Other REITs may not define FFO in accordance with the
current NAREIT definition (as we do) or may interpret the current NAREIT
definition differently than we do and/or calculate core FFO and AFFO
differently than we do. Consequently, our presentation of FFO, core FFO and
AFFO may not be comparable to other similarly titled measures presented by
other REITs.

About the Company

ARCP is a publicly traded Maryland corporation listed on The NASDAQ Global
Select Market that qualified as a real estate investment trust for U.S.
federal income tax purposes beginning with the taxable year ended December 31,
2011, focused on acquiring and owning single-tenant freestanding commercial
properties subject to net leases with high credit quality tenants. Additional
information about the ARCP can be found on its website at www.arcpreit.com.
ARCP may disseminate important information regarding the Company and its
operations, including financial information, through social media platforms
such as Twitter, Facebook and LinkedIn.

Important Notice
The statements in this press release that are not historical facts may be
forward-looking statements. These forward looking statements involve
substantial risks and uncertainties. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in the
forward-looking statements ARCP makes. Forward-looking statements may include,
but are not limited to, statements regarding stockholder liquidity and
investment value and returns. The words "anticipates," "believes," "expects,"
"estimates," "projects," "plans," "intends," "may," "will," "would," and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying words.
Factors that might cause such differences include, but are not limited to: the
impact of current and future regulation; the impact of credit rating changes;
the effects of competition; the ability to attract, develop and retain
executives and other qualified employees; changes in general economic or
market conditions; and other factors, many of which are beyond our control,
including other factors included in our reports filed with the SEC,
particularly in the "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" sections of ARCP's latest
Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, each
as filed with the SEC, as such Risk Factors may be updated from time to time
in subsequent reports. ARCP does not assume any obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise.

(In thousands, except for share and per share data)
                                                   June30, 2013  December31,
Real estate investments, at cost:
Land                                               $  504,562     $ 249,541
Buildings, fixtures and improvements               2,043,270      1,336,726
Acquired intangible lease assets                   318,488        212,223
Total real estate investments, at cost             2,866,320      1,798,490
Less: accumulated depreciation and amortization    (108,765)      (56,110)
Total real estate investments, net                 2,757,555      1,742,380
Cash and cash equivalents                          10,958         156,873
Investment in direct financing leases, net         67,518         —
Other investments, at fair value                   9,920          41,654
Derivatives, at fair value                         10,161         —
Restricted cash                                    1,576          1,108
Prepaid expenses and other assets                  14,626         7,416
Deferred costs, net                                38,443         15,356
Assets held for sale                               6,028          665
Total assets                                       $  2,916,785   $ 1,965,452
Mortgage notes payable                             $  269,918     $ 265,118
Senior secured revolving credit facility           —              124,604
Senior corporate credit facility                   600,000        —
Convertible obligation to Series C Convertible     445,000        —
Preferred stockholders
Contingent value rights obligation to preferred    31,134         —
and common investors, at fair value
Derivatives, at fair value                         1,186          3,830
Accounts payable and accrued expenses              12,060         9,459
Deferred rent and other liabilities                5,274          4,336
Distributions payable                              1              9,946
Total liabilities                                  1,364,573      417,293
Convertible preferred stock, $0.01 par value,
100,000,000 shares authorized, 828,472 shares
issued and                                        8              8
outstanding at June 30, 2013 and December
31, 2012, respectively
Common stock, $0.01 par value, 240,000,000 shares
authorized, 184,893,886 and 179,167,112 issued
and                                               1,846          1,792
outstanding at June 30, 2013 and December
31, 2012, respectively
Additional paid-in capital                         1,801,460      1,653,900
Accumulated other comprehensive income (loss)      8,919          (3,934)
Accumulated deficit                                (379,502)      (120,072)
Total stockholders' equity                         1,432,731      1,531,694
Non-controlling interests                          119,481        16,465
Total equity                                       1,552,212      1,548,159
Total liabilities and equity                       $  2,916,785   $ 1,965,452

(In thousands, except for per share data)
                        Three Months Ended June 30,  Six Months Ended June 30,
                        2013             2012        2013          2012
Rental income           $  43,130        $ 11,329    $ 81,379      $ 17,412
Operating expense       1,830            101         3,652         258
Total revenues          44,960           11,430      85,031        17,670
Operating expenses:
Acquisition related     15,144           7,814       20,726        12,599
Merger and other        4,680            20          142,449       20
transaction related
Property operating      2,465            288         4,869         580
General and             1,125            502         2,432         1,027
Equity-based            3,454            178         4,330         324
Depreciation and        27,806           6,994       52,829        10,529
Operating fees to       —                —           —             212
Total operating         54,674           15,796      227,635       25,291
Operating loss          (9,714)          (4,366)     (142,604)     (7,621)
Other income
Interest expense        (11,238)         (2,686)     (17,454)      (4,142)
Unrealized loss on
contingent value        (31,134)         —           (31,134)      —
Income from investment  —                —           218           —
Gain on sale of         —                —           451           —
investment securities
Unrealized loss on      (40)             —           (45)          —
derivative instruments
Other income            91               62          126           67
Total other expenses,   (42,321)         (2,624)     (47,838)      (4,075)
Loss from continuing    (52,035)         (6,990)     (190,442)     (11,696)
Net loss from
continuing operations
attributable to         322              72          756           72
Net loss from
continuing operations   (51,713)         (6,918)     (189,686)     (11,624)
attributable to
Net income (loss) from
operations of held for  36               (84)        63            (97)
sale properties
Gain (loss) on held     —                (82)        14            (405)
for sale properties
Net income (loss) from
discontinued            36               (166)       77            (502)
Net income (loss) from
operations              (2)              14          (4)           28
attributable to
Net income (loss) from
operations              34               (152)       73            (474)
attributable to
Net loss                (51,999)         (7,156)     (190,365)     (12,198)
Net loss attributable
to non-controlling      320              86          752           100
Net loss attributable   $  (51,679)      $ (7,070)   $ (189,613)   $ (12,098)
to stockholders
Other comprehensive
gain (loss):
derivatives, fair       14,017           (2,236)     12,840        (2,839)
value adjustments
Unrealized gain (loss)
on investment           (80)             —           13            —
securities, net
Comprehensive loss      $  (37,742)      $ (9,306)   $ (176,760)   $ (14,937)
Basic and diluted net
loss per share from
continuing operations   $  (0.32)        $ (0.10)    $ (1.20)      $ (0.25)
to common
Basic and diluted net
loss per share          $  (0.32)        $ (0.10)    $ (1.20)      $ (0.26)
attributable to common

Funds from Operations and Adjusted Funds from Operations Per Share
(In thousands, except share and per share data)
                   Quarter Ended                      Quarter Ended
                   March31, 2013      Per Share      June 30, 2013  Per Share
Net loss
attributable to
stockholders (in   $   (137,920)       $  (0.89)      $  (51,679)    $ (0.30)
accordance with
Merger and other
transaction        137,769             0.89           4,680          0.03
(Gain) loss on
held for sale      (14)                —              —              —
Gain on sale of
investment         (451)               —              —              —
Loss on
contingent         —                   —              31,134         0.01
valuation rights
Depreciation and   25,109              0.16           27,806         0.16
FFO                24,407              0.16           13,611         0.08
Acquisition and
transaction        5,582               0.04           15,144         0.09
related costs
Core FFO           29,989              0.19           28,755         0.17
Amortization of
above-market       63                  —              63             —
Amortization of
deferred           1,108               0.01           2,166          0.01
financing costs
Straight-line      (1,370)             (0.01)         (1,605)        (0.01)
Non-cash equity
compensation       876                 0.01           3,454          0.02
AFFO               $   30,666          $  0.21        $  32,833      $ 0.19
Weighted average
shares - fully     154,322                            171,012
diluted (1)
(1) Weighted average shares for the three months ended March 31, 2013 are
adjusted on a pro forma basis as if 27.7 million shares that were repurchased
in conjunction with the American Realty Capital Trust III, Inc. merger were
repurchased as of the beginning of the period. Amounts exclude operating
partnership units as operating results are adjusted for the corresponding
impact of non-controlling interests.

SOURCE American Realty Capital Properties, Inc.

Website: http://www.arcpreit.com
Contact: Anthony J. DeFazio, DDC Works, tdefazio@ddcworks.com, Ph:
484-342-3600; or Brian S. Block, EVP & CFO, American Realty Capital
Properties, Inc., bblock@arlcap.com, Ph: 212-415-6500
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