American Realty Capital Properties Announces Third Quarter 2013 Operating Results and $0.21 AFFO per Share

  American Realty Capital Properties Announces Third Quarter 2013 Operating
                       Results and $0.21 AFFO per Share

Closes CapLease Acquisition

Announces Normalized AFFO per share (Including CapLease) of $0.26

Completes $95 million of Organic Acquisitions at Average 9.0% Cap Rate

PR Newswire

NEW YORK, Nov. 7, 2013

NEW YORK, Nov.7, 2013 /PRNewswire/ --American Realty Capital Properties,
Inc. (NASDAQ: ARCP) ("ARCP" or the "Company") announced today its operating
results for the three and nine months ended September30, 2013. Operating
highlights are provided below. All per share results are reported on a fully
diluted basis.

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

For the quarter ended September30, 2013, revenues of $60.9 million were
reported, a record amount for the Company, compared to $45.0 million in the
second quarter of 2013, or a quarter-to-quarter increase of over 35%. Adjusted
funds from operations totaled $46.7 million for the third quarter of 2013,
compared to $32.8 million generated in the second quarter, respectively, or a
quarter to quarter increase of over 42%.

Third Quarter Operating Highlights (three months ended September30, 2013)

  oRevenues: $60.9 million.
  oProperty level net operating income (includes total revenues less property
    operating expenses): $56.8 million.
  oFunds from operations: $(19.7) million, or $(0.09) per share.
  oCore funds from operations (excluding one-time merger and acquisition
    related costs as well as the mark-to-market adjustment resulting from the
    completed private placement): $23.9 million, or $0.10 per share
  oAdjusted funds from operations: $46.7 million, or $0.21 per share.
  oFully diluted weighted-average shares outstanding: 227.3 million.

Third Quarter Operating Highlights (nine months ended September30, 2013)

  oRevenues: $145.9 million.
  oProperty level net operating income (includes total revenues less property
    operating expenses): $136.9 million.
  oFunds from operations: $(156.5) million, or $(0.85) per share.
  oCore funds from operations (excluding one-time merger and acquisition
    related costs as well as the mark-to-market adjustment resulting from the
    completed private placement): $81.4 million, or $0.44 per share
  oAdjusted funds from operations: $110.3 million, or $0.60 per share.

Portfolio Highlights

Third Quarter 2013

  oPortfolio composition as of September 30, 2013: 1,219 properties, 100%
    occupied (excluding one vacant property classified as held-for-sale),
    freestanding single-tenant properties comprised of 20.4 million square
    feet, occupied by 59.4% 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 9.5 years.
    These properties are located in 48 states plus Puerto Rico and include 183
    tenants, operating in 32 distinct industries.
  oThird quarter acquisitions: $95 million of properties purchased at an
    average capitalization rate of 9.0% (including expected contingent rental
    income).

                               As of September 30, 2013
# of Properties                1,219
Occupancy                      100%
Square Feet                    20.4 million
% Investment Grade             59%
Wtd. Avg. Remaining Lease Term 10 years

Subsequent Events to Third Quarter 2013

  oPortfolio composition as of November 6, 2013: 1,328 properties, 99%
    occupied (excluding one vacant property classified as held-for-sale),
    comprised of 34.0 million square feet, occupied by 67.7% 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 9 years. These properties include 231 tenants and operate in
    41 distinct industries.
  oClosed acquisition of CapLease: On November 5, closed on the previously
    announced acquisition of CapLease, adding a portfolio of 68 assets that is
    97% occupied.

                               As of November 6, 2013
# of Properties                1,328
Occupancy                      99%
Square Feet                    34.0 million
% Investment Grade             66%
Wtd. Avg. Remaining Lease Term 9 years

Pending

  oOrganic acquisitions: $1.1 billion of pending organic acquisitions at an
    average capitalization rate of 7.8%, anticipated to close during the
    fourth quarter of 2013.
  oAmerican Realty Capital Trust IV ("ARCT IV") merger: Announced $3.0
    billion acquisition of ARCT IV, expected to close by mid-December, 2013,
    subject to receipt of ARCT IV stockholder approval. Terms of the merger
    agreement modified to pay a per-share consideration of $9.00 in cash;
    0.5190 shares of ARCP common stock; and 0.5937 shares of ARCP perpetual
    preferred securities (6.7% annual coupon).
  oCole Real Estate Investments ("Cole") merger: On October 23, announced
    $11.2 billion acquisition of Cole. The transaction is expected to close
    in first half of 2014, subject to receipt of ARCP and Cole stockholder
    approvals. A preliminary proxy/prospectus was filed on November 5, 2013.

Balance Sheet and Capital Markets Highlights

Third Quarter 2013

  oConvertible note offering: Closed its underwritten public offering of
    $300.0 million Convertible Senior Notes due 2018 ("Notes") during the
    quarter. Additionally, the representatives for the underwriters delivered
    notice to ARCP electing to partially exercise their over-allotment option
    to purchase $10.0 million of additional Notes, which closed on August 1,
    2013. The Notes will pay interest semi-annually at a rate of 3.0% per
    annum and will mature on August 1, 2018. The holders may elect to convert
    the Notes into cash, ARCP's common stock or a combination thereof.
  oSenior corporate credit facility: Upsized senior corporate credit facility
    total financing capacity of up to $1.7 billion; currently in process of
    increasing the facility to $2.5 billion.
  oCommon and preferred equity offering: Private placement of common stock
    and Series D cumulative convertible preferred stock ("Series D Preferred")
    to institutional holders reinvesting the proceeds from the conversions and
    redemptions of Series C convertible preferred stock ("Series C
    Preferred").

Subsequent to Third Quarter 2013

  o'Baa3' Moody's Investment Grade Corporate Credit Rating: On October 14,
    2013, ARCP was assigned a 'Baa3' investment grade corporate credit rating
    by Moody's Investor Services.

Management Commentary

"We have continued to build enterprise value during this third quarter, and
for now are intently focused on execution," commented ARCP Chairman and CEO
Nicholas S. Schorsch. "In this regard, we have identified several near-term
key objectives: completing the announced ARCT IV and Cole transactions;
becoming self-managed and significantly broadening our intellectual capital by
continuing to attract the best and brightest managers in the industry;
deleveraging and terming out our balance sheet utilizing long-term, fixed rate
debt; and effectively and seamlessly integrating Cole organization."

"We have filed the merger proxies for ARCT IV and Cole and have tentative
stockholder vote dates of December 11, 2013 and January 14, 2014,
respectively," noted Mr. Schorsch. "Our team worked tirelessly and
collaboratively with the Cole team to have these documents filed with the SEC
in under two weeks."

"We are fully committed to becoming self-managed, as promised," added Mr.
Schorsch. "In fact, it is a closing condition for our merger with Cole. We
will announce the President of ARCP before year-end. We have already moved to
bolster our team with several key hires. Brian Block, our CFO, will now be
focused exclusively on ARCP. Lisa Beeson joins us as COO after 25 years as an
investment banker with tremendous M&A and capital markets expertise. Lisa
Pavelka McAlister is our new CAO with 25 years' experience in senior financial
roles versed in all aspects of financial and accounting operations. In
addition, we continue to be impressed with the depth of talent at Cole. One
of the key attributes of the merger is our ability to tap the tremendous human
capital resident at the Cole organization, and we expect these senior
executives will play a meaningful role in the management of ARCP."

"Finally, the ARCP and Cole teams are committed to a rapid closing and smooth
integration," continued Mr. Schorsch That process is well underway, and we
are working cooperatively to leverage the best of three great organizations -
ARCP, Cole and CapLease."

"Our 3^rd quarter operating results are in-line with projections," added Brian
S. Block, EVP & Chief Financial Officer. "We are well positioned to close our
pending acquisitions and execute our capital plan. Our team is focused on
taking advantage of our investment grade rating and securing long-term
financing at attractive rates. We have commitments in place for $755 million
of long-term, fixed rate debt, and expect to issue senior unsecured in the
private and public markets. Looking beyond 2013, we will raise equity only in
connection with acquiring accretive real estate investments as we continue to
deleverage our balance sheet. We do not intend to issue equity simply to pay
down debt."

"I am thrilled to join ARCP," added Lisa E. Beeson, EVP and Chief Operating
Officer. "My near-term mandate is to integrate three great platforms; this
plan is well underway. We have established teams that have been working
together smoothly to get us to an early first quarter of 2014 closing. Our
ability to get the proxy for the Cole merger filed in in a matter of weeks is
testimony to these efforts. We are now working to determine the best shared
systems in real estate, accounting and financial reporting."

Financial Results

Revenues
Total revenues were $60.9 million for the three months ended September 30,
2013, compared to revenues for the three months ended June 30, 2013 of $45.0
million, representing a 35% increase. Total revenues were $145.9 million for
the nine months ended September 30, 2013.

Funds from Operations and Adjusted Funds from Operations
Funds from operations ("FFO") for the three months ended September 30, 2013,
totaled $(19.7) million, or $(0.09) per share. FFO for this period includes
one-time merger and other transaction related expenses of $3.8 million. FFO
for the nine months ended September 30, 2013 totaled $(156.5) million, or
$(0.85) per share. FFO for this period includes one-time merger and other
transaction related expenses of $146.2 million Excluding such one-time costs,
FFO is $(10.2) million, or $(0.06) per share.

Adjusted funds from operations ("AFFO") for the three months ended September
30, 2013, totaled $46.7 million, or $0.21 per share. AFFO for the nine months
ended September 30, 2013 totaled $110.3 million, or $0.60 per share.

Property Level Net Operating Income
Property Level net operating income ("NOI") was $56.8 million for the three
months ended September 30, 2013, compared to NOI for the three months ended
June 30, 2013 of $42.5 million, representing a 34% increase. NOI was $136.9
million for the nine months ended September 30, 2013.

Dividend Increase
Total dividends paid to common stockholders by the Company were $42.1 million
for the three months ended September 30, 2013, or $0.91 per share on an
annualized basis.

On May 28, 2013, an increase in the annual dividend rate from $0.91 per share
to $0.94 per share was declared, contingent upon and effective with the
earlier of the close of the ARCT IV merger or the CapLease merger.
Additionally, on October 23, 2013, an increase in annual dividend rate from
$0.94 per share to $1.00 per share was declared, contingent upon, and
effective with, the close of the Cole merger. As a result of the CapLease
closing, ARCP will raise its dividend to $0.94 effective December 2013.

2014 Guidance
In connection with the announcement of the Cole merger transaction, ARCP
updated 2014 AFFO guidance from $1.13 to $1.19 per share.

Corporate Mergers and Strategic Opportunities Update

CapLease Merger

  oThis transaction closed on November 5, 2013

In addition to adding the portfolio of 68 assets, Paul McDowell, CEO of
CapLease joined ARC Advisory Services, LLC, a subsidiary of AR Capital, LLC,
as President of the office, industrial and build-to-suit activities. Several
other senior CapLease executives will also join AR Capital, LLC.

ARCT IV Merger

  oARCT IV Stockholder vote tentatively scheduled for December 11, 2013

On July 2, 2013, ARCP signed a definitive merger agreement under which it will
acquire all of the outstanding shares of ARCT IV. On October 7, 2013 ARCP and
ARCT IV amended the terms of the merger agreement. Under the terms of the new
amended agreement, ARCP will now acquire all of the outstanding shares of ARCT
IV, in a transaction valued at $3.0 billion for consideration including cash,
common stock and perpetual preferred securities. The transaction is expected
to close during the fourth quarter of 2013, subject to receipt of required
ARCT IV stockholder approval.

Cole Merger

  oS-4/Proxy filed November 5, 2013
  oARCP and Cole Stockholder votes tentatively schedule for January 14, 2014

ARCP and Cole signed a definitive merger agreement to merge the two companies
in a transaction valued at $11.2 billion. This combination will create the
largest net lease REIT with an enterprise value of $21.5 billion. ARCP has
secured $2.75 billion of fully committed financing from Barclays in connection
with this transaction. Cole stockholders are expected to receive a fixed
exchange ratio of 1.0929 shares of ARCP common stock or $13.82 cash per share
(subject to a 20% proration). A joint proxy statement/prospectus was filed on
November 5. Following its effectiveness, both ARCP and Cole stockholders will
be entitled to vote on this transaction. The transaction is expected to close
in the first quarter of 2014, subject to receipt of required ARCP and Cole
stockholder approvals.

  oAFFO Growth: Updated AFFO pro forma 2014 guidance of $1.13 to $1.19 per
    share; target payout ratio of 85% to 90%.
  oDividend Increase: ARCP dividend per share on closing increases to $1.00.
  oSignificant Deleveraging: ARCP net debt to EBITDA ratio declines from 9.1x
    to 7.7x by year end 2014.
  oExpense Synergies: $70 million of year one expense synergies expected.
  oScale and Competiveness: 64% larger than the closest comparable net lease
    REIT. Size and scale create operating and revenue efficiencies, including
    lower cost of capital, superior growth opportunities and higher investor
    returns.
  oPortfolio Quality: Superior diversification by asset type, tenancy,
    industry and geography; 47% investment grade tenancy; 99% occupied; 11
    years remaining average lease term.
  oOptimization of Core Capabilities: In addition to the durability provided
    by the single tenant net lease portfolio, the multi-tenant retail
    properties coupled with the "vintage" (mid-term) net leased properties
    should generate significant rent growth potential.
  oCost of Capital Advantages: ARCP's investment grade rating allows for
    significantly lower cost of financing, which is highly accretive to its
    overall corporate earnings.
  oIncreased Institutional Coverage: Transaction positions ARCP for potential
    inclusion in the S&P 500.

Self-Management
ARCP is fully committed to become self-managed following the pending closings
of the ARCT IV and Cole mergers. The self-management plan will be
substantially completed by year-end 2013 and will be fully implemented upon
the close of the Cole merger. ARCP executive officers will include: Nick
Schorsch, Executive Chairman and CEO, Brian S. Block as EVP and CFO; hires
Lisa Beeson as EVP and COO; and Lisa Pavelka McAlister as SVP and CAO. In
addition, two of Cole's independent directors will join the Board of ARCP upon
closing of the merger.

Third Quarter 2013 Conference Call Details

ARCP will be hosting its third quarter 2013 conference call and Webcast on
Thursday, November7, 2013 at 11:00 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
follows:

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: 7852498
Webcast: http://arcpreit.com/Q32013EarningsCall/
*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: 10034661
Date Available: November 7, 2013 (one hour after the end of the conference
call) to January 31, 2014 at 9:00 AM ET

Supplemental Information

Supplemental information on the Company's third 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 November7, 2013. The supplemental
information report is titled "Quarterly Supplemental Information: Third
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.

Company Pro Forma Presentation

ARCP filed a company presentation in its Current Report on Form 8-K filed with
the SEC on November 5, 2013, containing additional pro forma information
describing the combined company (assuming the acquisitions of CapLease, ARCT
IV and Cole). A copy of the company presentation can be found in Annex A
attached hereto.

Funds From Operations and Adjusted Funds From Operations

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 measure known as
funds from operations ("FFO"), which we believe to be an appropriate
supplemental measure to reflect the operating performance of a REIT. The use
of FFO is recommended by the REIT industry as a supplemental performance
measure. FFO is not equivalent to our net income or loss as determined under
U.S. GAAP.

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. However, FFO and
adjusted funds from operations ("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 and AFFO measures and the adjustments to U.S. GAAP in
calculating FFO and AFFO.

We consider FFO and AFFO 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.

Changes in the accounting and reporting promulgations under GAAP (for
acquisition fees and expenses from a capitalization/depreciation model to an
expensed-as-incurred model) that were put into effect in 2009 and other
changes to GAAP accounting for real estate subsequent to the establishment of
NAREIT's definition of FFO have prompted an increase in cash-settled expenses,
specifically acquisition fees and expenses for all industries as items that
are expensed under GAAP, that are typically accounted for as operating
expenses. Management believes these fees and expenses do not affect our
overall long-term operating performance. While certain companies may
experience significant acquisition activity, other companies may not have
significant acquisition activity and management believes that excluding costs
such as merger and transaction costs and acquisition related costs from
property operating results provides useful information to investors and
provides information that improves the comparability of operating results with
other companies who do not have significant merger or acquisition activities.
AFFO is not equivalent to our net income or loss as determined under GAAP, and
AFFO may not be a useful measure of the impact of long-term operating
performance if we continue to have such activities in the future.

We exclude certain income or expense items from AFFO that we consider more
reflective of investing activities, other non-cash income and expense items
and the income and expense effects of other activities that are not a
fundamental attribute of our business plan. These items include unrealized
gains and losses, which may not ultimately be realized, such as gains or
losses on derivative instruments, gains or losses on contingent valuation
rights, gains and losses on investments and early extinguishment of debt. In
addition, by excluding non-cash income and expense items such as amortization
of above and below market leases, amortization of deferred financing costs,
straight-line rent and non-cash equity compensation from AFFO we believe we
provide useful information regarding income and expense items which have no
cash impact and do not provide liquidity to the company or require capital
resources of the company. By providing AFFO, we believe we are presenting
useful information that assists investors and analysts to better assess the
sustainability of our ongoing operating performance without the impacts of
transactions that are not related to the ongoing profitability of our
portfolio of properties. We also believe that AFFO is a recognized measure of
sustainable operating performance by the REIT industry. Further, we believe
AFFO is useful in comparing the sustainability of our operating performance
with the sustainability of the operating performance of other real estate
companies that are not as involved activities which are excluded from our
calculation. Investors are cautioned that AFFO should only be used to assess
the sustainability of our operating performance excluding these activities, as
it excludes certain costs that have a negative effect on our operating
performance during the periods in which these costs are incurred.

In addition, we exclude certain interest expenses related to securities that
are convertible to common stock as the shares are assumed to have converted to
common stock in our calculation of weighted average common shares-fully
diluted.

In calculating AFFO, we exclude expenses, which under GAAP are characterized
as operating expenses in determining operating net income. These expenses are
paid in cash by us, and therefore such funds will not be available to
distribute to investors. All paid and accrued merger and acquisition fees and
certain other expenses negatively impact our operating performance during the
period in which expenses are incurred or properties are acquired and will have
negative effects on returns to investors, the potential for future
distributions, and cash flows generated by us, unless earnings from operations
or net sales proceeds from the disposition of other properties are generated
to cover the purchase price of the property and certain other expenses.
Therefore, AFFO may not be an accurate indicator of our operating performance,
especially during periods in which mergers are being consummated or properties
are being acquired or certain other expense are being incurred. AFFO that
excludes such costs and expenses would only be comparable to companies that
did not have such activities. Further, under GAAP, certain contemplated
non-cash fair value and other non-cash adjustments are considered operating
non-cash adjustments to net income in determining cash flow from operating
activities. In addition, we view fair value adjustments as items which are
unrealized and may not ultimately be realized. We view both gains and losses
from fair value adjustments as items which are not reflective of ongoing
operations and are therefore typically adjusted for when assessing operating
performance. Excluding income and expense items detailed above from our
calculation of AFFO provides information consistent with management's analysis
of the operating performance of the properties. Additionally, fair value
adjustments, which are based on the impact of current market fluctuations and
underlying assessments of general market conditions, but can also result from
operational factors such as rental and occupancy rates, may not be directly
related or attributable to our current operating performance. By excluding
such changes that may reflect anticipated and unrealized gains or losses, we
believe AFFO provides useful supplemental information.

As a result, we believe that the use of 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
activities.

FFO and AFFO are non-GAAP financial measures and do not represent net income
as defined by U.S. GAAP. 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 AFFO differently than we
do. Consequently, our presentation of 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.

Additional Information about the Cole Merger and Where to Find It

This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval. In
connection with the proposed Cole merger, the Company and Cole expect to
prepare and file with the U.S. Securities and Exchange Commission ("SEC") a
registration statement on Form S-4 containing a joint proxy
statement/prospectus and other documents with respect to the Company's
proposed acquisition of Cole. The joint proxy/prospectus will contain
important information about the proposed transaction and related matters.
INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING
ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED BY
THE COMPANY OR COLE WITH THE SEC CAREFULLY IF AND WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, COLE AND
THE PROPOSED COLE MERGER.

Investors and stockholders of the Company and Cole may obtain free copies of
the registration statement, the joint proxy statement/prospectus and other
relevant documents filed by the Company and Cole with the SEC (if and when
they become available) through the website maintained by the SEC at
www.sec.gov. Copies of the documents filed by the Company with the SEC are
also available free of charge on the Company's website at www.arcpreit.com and
copies of the documents filed by Cole with the SEC are available free of
charge on Cole's website at www.ColeREIT.com.

Participants in Solicitation relating to the Cole Merger

The Company, Cole, AR Capital, LLC and their respective directors and
executive officers may be deemed to be participants in the solicitation of
proxies from the Company's and Cole's stockholders in respect of the proposed
Cole merger. Information regarding the Company's directors and executive
officers can be found in the Company's definitive proxy statement filed with
the SEC on April 30, 2013. Information regarding Cole's directors and
executive officers can be found in Cole's definitive proxy statement filed
with the SEC on April 11, 2013. Additional information regarding the interests
of such potential participants will be included in the joint proxy
statement/prospectus and other relevant documents filed with the SEC in
connection with the proposed Cole merger if and when they become available.
These documents are available free of charge on the SEC's website and from the
Company or Cole, as applicable, using the sources indicated above.

Additional Information about the ARCT IV Merger and Where to Find It

This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval. In
connection with the proposed ARCT IV merger, the Company and ARCT IV expect to
prepare and file with the SEC an amendment to their proxy statement/prospectus
and the Company expects to prepare and file with the SEC an amendment to its
registration statement on Form S-4 and other documents with respect to the
Company's proposed acquisition of ARCT IV. INVESTORS ARE URGED TO READ THE
PROXY STATEMENT/PROSPECTUS AND REGISTRATION STATEMENT (INCLUDING ALL
AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED WITH
THE SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED ARCT IV MERGER.

Investors may obtain free copies of the registration statement, the proxy
statement/prospectus and other relevant documents filed by the Company and
ARCT IV with the SEC (if and when they become available) through the website
maintained by the SEC at www.sec.gov. Copies of the documents filed by the
Company with the SEC are also available free of charge on the Company's
website at www.arcpreit.com and copies of the documents filed by ARCT IV with
the SEC are available free of charge on ARCT IV's website at www.arct-4.com.

Participants in Solicitation relating to the ARCT IV Merger

The Company, ARCT IV, AR Capital, LLC and their respective directors and
executive officers may be deemed to be participants in the solicitation of
proxies from ARCT IV's stockholders in respect of the proposed ARCT IV merger.
Information regarding the Company's directors and executive officers can be
found in the Company's definitive proxy statement filed with the SEC on April
30, 2013. Information regarding ARCT IV's directors and executive officers can
be found in ARCT IV's definitive proxy statement filed with the SEC on April
30, 2013. Additional information regarding the interests of such potential
participants will be included in the proxy statement/prospectus, the
registration statement and other relevant documents filed with the SEC in
connection with the proposed ARCT IV merger if and when they become available.
These documents are available free of charge on the SEC's website and from the
Company or ARCT IV, as applicable, using the sources indicated above.

Forward-Looking Statements

Information set forth herein (including information included or incorporated
by reference herein) contains "forward-looking statements" (as defined in
Section 21E of the Securities Exchange Act of 1934, as amended), which reflect
the Company's, CapLease's, ARCT IV's and Cole's expectations regarding future
events. The forward-looking statements involve a number of risks,
uncertainties and other factors that could cause actual results to differ
materially from those contained in the forward-looking statements. Such
forward-looking statements include, but are not limited to, whether and when
the transactions contemplated by any of the merger agreements will be
consummated, the combined company's plans, market and other expectations,
objectives, intentions, as well as any expectations or projections with
respect to the combined company, including regarding future dividends and
market valuations, and estimates of growth, including funds from operations
and adjusted funds from operations and other statements that are not
historical facts.

The following additional factors, among others, could cause actual results to
differ from those set forth in the forward-looking statements: (1) the
occurrence of any event, change or other circumstances that could give rise to
the termination of any of the merger agreements; (2) the inability to complete
the ARCT IV merger due to the failure to obtain ARCT IV stockholder approval
of the ARCT IV merger or the failure to satisfy other conditions to completion
of the ARCT IV merger, including that a governmental entity may prohibit,
delay or refuse to grant approval for the consummation of the ARCT IV merger;
(3) the inability to obtain regulatory approvals for the Cole merger
transaction and the approval by the Company's stockholders of the issuance of
Company common stock in connection with the Cole merger and the approval by
Cole's stockholders of the Cole merger; (4) risks related to disruption of
management's attention from the ongoing business operations due to the
proposed mergers; (5) the effect of the announcement of the proposed mergers
on the Company's, ARCT IV's or Cole's relationships with their respective
customers, tenants, lenders, operating results and businesses generally; (6)
the outcome of any legal proceedings relating to any of the mergers or the
merger agreements; and (7) risks to consummation of the mergers, including the
risk that the mergers will not be consummated within the expected time period
or at all. Additional factors that may affect future results are contained in
the Company's, ARCT IV's and Cole's filings with the SEC, which are available
at the SEC's website at www.sec.gov. The Company, ARCT IV and Cole disclaim
any obligation to update and revise statements contained in these materials
based on new information or otherwise.



AMERICAN REALTY CAPITAL PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
                                                   September30,  December31,
                                                   2013           2012
                                                   (Unaudited)
ASSETS
Real estate investments, at cost:
Land                                               $  521,139     $ 249,541
Buildings, fixtures and improvements               2,121,178      1,336,726
Acquired intangible lease assets                   328,733        212,223
Total real estate investments, at cost             2,971,050      1,798,490
Less: accumulated depreciation and amortization    (148,162)      (56,110)
Total real estate investments, net                 2,822,888      1,742,380
Cash and cash equivalents                          150,481        156,873
Investment in direct financing leases, net         57,449         —
Investment securities, at fair value               9,480          41,654
Derivatives assets, at fair value                  7,088          —
Restricted cash                                    1,680          1,108
Prepaid expenses and other assets                  48,165         7,416
Deferred costs, net                                47,754         15,356
Assets held for sale                               6,028          665
Total assets                                       $  3,151,013   $ 1,965,452
LIABILITIES AND EQUITY
Mortgage notes payable                             $  269,891     $ 265,118
Convertible debt                                   300,975        —
Senior secured revolving credit facility           —              124,604
Senior corporate credit facility                   600,000        —
Convertible obligation to Series C Convertible     449,827        —
Preferred stockholders, at fair value
Contingent value rights obligation to preferred    49,314         —
and common investors, at fair value
Below-market lease liabilities, net                4,200          —
Derivatives liabilities, at fair value             1,785          3,830
Accounts payable and accrued expenses              14,740         9,459
Deferred rent and other liabilities                7,404          4,336
Distributions payable                              72             9,946
Total liabilities                                  1,698,208      417,293
Convertible preferred stock, $0.01 par value,
100,000,000 shares authorized, zero and 828,472    —              8
shares issued and outstanding at September 30,
2013 and December 31, 2012, respectively
Common stock, $0.01 par value, 750,000,000 and
240,000,000 shares authorized and 185,448,022 and  1,848          1,792
179,167,112 issued and outstanding at September
30, 2013 and December 31, 2012, respectively
Additional paid-in capital                         1,803,315      1,653,900
Accumulated other comprehensive income (loss)      4,857          (3,934)
Accumulated deficit                                (480,817)      (120,072)
Total stockholders' equity                         1,329,203      1,531,694
Non-controlling interests                          123,602        16,465
Total equity                                       1,452,805      1,548,159
Total liabilities and equity                       $  3,151,013   $ 1,965,452



AMERICAN REALTY CAPITAL PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except for per share data)
                     Three Months Ended September  Nine Months Ended September
                     30,                           30,
                     2013             2012         2013            2012
Revenues:
Rental income        $  56,681        $ 18,301     $  138,060      $ 35,713
Direct financing     977              —            977             —
lease income
Operating expense    3,226            515          6,878           773
reimbursements
Total revenues       60,884           18,816       145,915         36,486
Operating expenses:
Acquisition related  1,235            14,636       21,961          27,235
Merger and other     3,791            —            146,240         20
transaction related
Property operating   4,103            1,076        8,972           1,656
General and          1,586            496          4,018           1,523
administrative
Equity-based         7,180            480          11,510          804
compensation
Depreciation and     39,382           11,632       92,211          22,161
amortization
Operating fees to    —                —            —               212
affiliates
Total operating      57,277           28,320       284,912         53,611
expenses
Operating income     3,607            (9,504)      (138,997)       (17,125)
(loss)
Other income
(expenses):
Interest expense     (24,135)         (3,454)      (41,589)        (7,596)
Loss on contingent   (38,542)         —            (69,676)        —
value rights
Income from
investment           —                —            218             —
securities
Gain on sale of
investment           —                —            451             —
securities
Loss on derivative   (99)             —            (144)           —
instruments
Other income, net    45               206          171             273
Total other          (62,731)         (3,248)      (110,569)       (7,323)
expenses, net
Loss from
continuing           (59,124)         (12,752)     (249,566)       (24,448)
operations
Net (gain) loss
from continuing
operations           (30)             65           726             138
attributable to
non-controlling
interests
Net loss from
continuing
operations           (59,154)         (12,687)     (248,840)       (24,310)
attributable to
stockholders
Discontinued
operations:
Net income (loss)
from operations of   96               44           159             (53)
held for sale
properties
(Loss) gain on held  —                (47)         14              (452)
for sale properties
Net income (loss)
from discontinued    96               (3)          173             (505)
operations
Net (loss) income
from discontinued
operations           (5)              —            (9)             27
attributable to
non-controlling
interests
Net income (loss)
from discontinued
operations           91               (3)          164             (478)
attributable to
stockholders
Net loss             (59,028)         (12,755)     (249,393)       (24,953)
Net (income) loss
attributable to      (35)             65           717             165
non-controlling
interests
Net loss
attributable to      $  (59,063)      $ (12,690)   $  (248,676)    $ (24,788)
stockholders
Other comprehensive
income (loss):
Designated
derivatives, fair    (3,622)          (1,198)      9,218           (4,037)
value adjustments
Unrealized (loss)
gain on investment   (440)            34           (427)           34
securities, net
Comprehensive loss   $  (63,125)      $ (13,854)   $  (239,885)    $ (28,791)
Basic and diluted
net loss per share
from continuing      $  (0.32)        $ (0.09)     $  (1.49)       $ (0.31)
operations
attributable to
common stockholders
Basic and diluted
net loss per share   $  (0.32)        $ (0.09)     $  (1.49)       $ (0.32)
attributable to
common stockholders



Funds from Operations and Adjusted Funds from Operations Per Share
(In thousands, except share and per share data)
                     Three Months Ended September  Nine Months Ended September
                     30,                           30,
                     2013              Per Share   2013              Per Share
Net loss
attributable to
stockholders (in     $   (59,063)      $  (0.26)   $  (248,676)      $ (1.35)
accordance with
U.S. GAAP)
Gain on held for     —                 —           (14)              —
sale properties
Depreciation and     39,382            0.17        92,211            0.50
amortization
FFO                  (19,681)          (0.09)      (156,479)         (0.85)
                                                                     —
Acquisition related  1,235             0.01        21,961            0.12
Merger and other     3,791             0.02        146,240           0.79
transaction costs
Loss on contingent   38,542            0.17        69,676            0.38
valuation rights
Gain on sale of
investment           —                 —           (451)             —
securities
Loss on derivative   99                —           144               —
instruments
Interest on
convertible          7,266             0.03        8,896             0.05
obligation to
preferred investors
Interest on          1,554             0.01        1,554             0.01
convertible debt
Interest premium on
settlement of
convertible
obligation to        5,174             0.02        5,174             0.03
preferred investors
and convertible
debt
Amortization of      63                —           189               —
above-market lease
Amortization of
deferred financing   3,505             0.02        6,914             0.04
costs
Straight-line rent   (2,063)           (0.01)      (5,038)           (0.03)
Non-cash equity
compensation         7,180             0.03        11,510            0.06
expense
AFFO                 $   46,665        $  0.21     $  110,290        $ 0.60
Weighted Average
Shares - fully       227,255,255                   184,466,513
diluted



ANNEX A:
http://origin-qps.onstreammedia.com/origin/multivu_archive/ENR/FX-NY12606-20131107.pdf



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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