{"id":10363,"date":"2020-05-08T12:41:00","date_gmt":"2020-05-08T12:41:00","guid":{"rendered":"https:\/\/icrowdnewswire.com\/?p=2547168"},"modified":"2020-05-08T12:41:00","modified_gmt":"2020-05-08T12:41:00","slug":"american-finance-trust-announces-first-quarter-2020-results","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/","title":{"rendered":"American Finance Trust Announces First Quarter 2020 Results"},"content":{"rendered":"<p>American Finance Trust, Inc. &nbsp;a real estate investment trust focused on acquiring and managing a diversified portfolio of primarily service-oriented<sup>1<\/sup>&nbsp;and traditional retail and distribution related commercial real estate properties in the U.S., announced today its financial and operating results for the first quarter ended March&nbsp;31, 2020.<\/p>\n<p><strong>First Quarter 2020 Highlights<\/strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n<ul>\n<li>Revenue increased 4% to&nbsp;<span class=\"xn-money\">$74.6 million<\/span>&nbsp;as compared to&nbsp;<span class=\"xn-money\">$71.5 million<\/span>&nbsp;for the first quarter 2019<\/li>\n<li>Net loss attributable to common stockholders was&nbsp;<span class=\"xn-money\">$9.2 million<\/span>, or&nbsp;<span class=\"xn-money\">$0.08<\/span>&nbsp;per diluted share, compared to a net loss of&nbsp;<span class=\"xn-money\">$3.2 million<\/span>, or&nbsp;<span class=\"xn-money\">$0.03<\/span>&nbsp;per diluted share, for the first quarter 2019<\/li>\n<li>Cash net operating income (&#8220;NOI&#8221;) grew by 6% to&nbsp;<span class=\"xn-money\">$59.0 million<\/span>&nbsp;compared to&nbsp;<span class=\"xn-money\">$55.7 million<\/span>&nbsp;for the first quarter 2019<\/li>\n<li>Funds from Operations (&#8220;FFO&#8221;) was&nbsp;<span class=\"xn-money\">$23.7 million<\/span>, or&nbsp;<span class=\"xn-money\">$0.22<\/span>&nbsp;per diluted share compared to&nbsp;<span class=\"xn-money\">$26.8 million<\/span>, or&nbsp;<span class=\"xn-money\">$0.25<\/span>&nbsp;per diluted share, for the first quarter 2019<\/li>\n<li>Adjusted Funds from Operations (&#8220;AFFO&#8221;) was&nbsp;<span class=\"xn-money\">$25.2 million<\/span>, or&nbsp;<span class=\"xn-money\">$0.23<\/span>&nbsp;per diluted share, compared to&nbsp;<span class=\"xn-money\">$26.3 million<\/span>&nbsp;or&nbsp;<span class=\"xn-money\">$0.25<\/span>&nbsp;per diluted share in the prior year first quarter<\/li>\n<li>Announced a dividend change to be paid beginning in April for the second quarter to&nbsp;<span class=\"xn-money\">$0.21<\/span>&nbsp;per share per quarter, or&nbsp;<span class=\"xn-money\">$0.85<\/span>&nbsp;per share on an annualized basis, expected to strengthen AFIN&#8217;s cash flow by&nbsp;<span class=\"xn-money\">$6.8 million<\/span>&nbsp;per quarter<\/li>\n<li>Closed on the acquisition of 31 properties for an aggregate contract purchase price of&nbsp;<span class=\"xn-money\">$90.0 million<\/span><sup>2<\/sup>&nbsp;at a 7.4% weighted average cash capitalization rate<sup>3<\/sup>&nbsp;and a weighted-average capitalization rate<sup>4<\/sup>&nbsp;of 8.4%<\/li>\n<li>Total multi-tenant occupancy increased to 87.3% from 85.0% year-over-year<\/li>\n<li>High quality portfolio with 66% of tenants in single-tenant portfolio and 44% of the top 10 tenants<sup>5<\/sup>&nbsp;in multi-tenant portfolio rated as investment grade or implied investment grade<sup>6<\/sup><\/li>\n<li>Annual rent escalators<sup>7<\/sup>&nbsp;averaging 1.3% per year in 80.9% of leases provide contractually embedded rent growth<\/li>\n<li>Ample Liquidity<sup>8<\/sup>&nbsp;of&nbsp;<span class=\"xn-money\">$215.0 million<\/span>&nbsp;after borrowing an additional&nbsp;<span class=\"xn-money\">$153 million<\/span>&nbsp;under credit facilities in March to enhance financial flexibility in response to COVID-19<\/li>\n<li>Collected over 79% of cash rent due in April, including 92% in single tenant portfolio, with rent deferral amendments approved for 4% of the unpaid cash rent, while 16% of lease deferrals are in negotiation (see additional details in April Rents section below)<\/li>\n<\/ul>\n<p><strong>CEO Comments<\/strong>&nbsp;<\/p>\n<p><span class=\"xn-person\">Michael Weil<\/span>, Chief Executive Officer, commented, &#8220;Our first quarter results highlight the strong momentum we had coming into this year. Going forward, we continue to have a high degree of confidence in our long-term outlook, reflecting the resilience and capabilities of our team and the financial strength of our portfolio. I am proud of the focused effort and proactive communications we took in early March to create direct dialog with our tenants in response to the unprecedented COVID-19 pandemic. This led to tremendous success, as we collected over 79% of the rents due in April during the month, including 97% of the rent payable from the top 20 tenants in our portfolio.&#8221;<\/p>\n<p><strong>Financial Results<\/strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n<div>\n<div class=\"divOverflow\">\n<div class=\"table-responsive\">\n<table class=\"prntblns\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen3\" colspan=\"7\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\"><strong>Three Months Ended March 31,<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"prnsbt1 prnsbr1 prnvab prnsbbs prnpl6 prnsbl1 prnpr6\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\"><em>(In thousands, except per share data)<\/em><\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen5\" colspan=\"3\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\"><strong>2020<\/strong><\/span><\/p>\n<\/td>\n<td class=\"prngen6\">&nbsp;<\/td>\n<td class=\"prngen5\" colspan=\"3\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\"><strong>2019<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">Revenue from tenants<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen6\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">74,564<\/span><\/p>\n<\/td>\n<td class=\"prngen6\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen6\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">71,541<\/span><\/p>\n<\/td>\n<td class=\"prngen6\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\" colspan=\"3\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\" colspan=\"3\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">Net loss attributable to common stockholders<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen8\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">(9,153)<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen8\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">(3,227)<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">Net loss per common share&nbsp;<sup>(a)<\/sup><\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen8\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">(0.08)<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen8\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">(0.03)<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\" colspan=\"3\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\" colspan=\"3\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">FFO attributable to common stockholders<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">23,690<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">26,760<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">FFO per common share&nbsp;<sup>(a)<\/sup><\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">0.22<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">0.25<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\" colspan=\"3\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\" colspan=\"3\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">AFFO attributable to common stockholders<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">25,237<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">26,303<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td class=\"prngen7\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">AFFO per common share&nbsp;<sup>(a)<\/sup><\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">0.23<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">$<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">0.25<\/span><\/p>\n<\/td>\n<td class=\"prngen2\">&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<div>\n<div class=\"divOverflow\">\n<div class=\"table-responsive\">\n<table id=\"convertedTable0168\" class=\"prntblns\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td class=\"prngen9\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">(a)<\/span><\/p>\n<\/td>\n<td class=\"prngen9\">\n<p class=\"prnews_p dnr\"><span class=\"prnews_span\">All per share data based on 108,364,082 and 106,076,588 diluted weighted-average shares outstanding for the three months ended March&nbsp;31, 2020 and 2019, respectively.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<p><strong>Real Estate Portfolio<\/strong><\/p>\n<p>The Company&#8217;s portfolio consisted of 848 net lease properties located in 46 states and the&nbsp;<span class=\"xn-location\">District of Columbia<\/span>&nbsp;and comprised 18.9 million rentable square feet as of March&nbsp;31, 2020. Portfolio metrics include:<\/p>\n<ul>\n<li>94.7% leased, up from 94.0% at the end of first quarter 2019, with 8.9 years remaining weighted-average lease term<sup>9<\/sup><\/li>\n<li>80.9% of leases have contractual rent increases of 1.3% on average based on annualized straight-line rent<sup>10<\/sup><\/li>\n<li>66% of single-tenant portfolio and 30% of multi-tenant anchor tenants annualized straight-line rent derived from investment grade or implied investment grade tenants<\/li>\n<li>80% retail properties, 11% distribution properties and 9% office properties (based on an annualized straight-line rent)<\/li>\n<li>69% of the retail portfolio focused on either service or experiential retail<sup>11&nbsp;<\/sup>giving the company strong alignment with &#8220;e-commerce resistant&#8221; real estate<\/li>\n<li>Since 2017, dispositions averaged six years of remaining lease term while new acquisitions on average have 16 years remaining on their lease term as we continue to cycle out assets with short remaining lease terms and acquire long-term service-oriented retail assets<\/li>\n<li>2.3% increase in multi-tenant occupancy, year over year<\/li>\n<\/ul>\n<p><strong><em>Property Acquisitions<\/em><\/strong><\/p>\n<p>During the three months ended March&nbsp;31, 2020, the Company acquired 31 properties for an aggregate contract purchase price of&nbsp;<span class=\"xn-money\">$90.0 million<\/span>&nbsp;at a weighted average capitalization rate of 8.4%. Since 2017, 78% of all acquisitions have been properties leased to service retail tenants<sup>12<\/sup>.<\/p>\n<p>Subsequent to&nbsp;<span class=\"xn-chron\">March 31, 2020<\/span>, the Company completed one property acquisition for a contract purchase price of&nbsp;<span class=\"xn-money\">$6.9 million<\/span>. The Company&#8217;s acquisition pipeline as of&nbsp;<span class=\"xn-chron\">April 15, 2020<\/span>&nbsp;includes 34 properties for an aggregate contract purchase price of&nbsp;<span class=\"xn-money\">$37.8 million<\/span>. There can be no assurance that these acquisitions will be completed on current terms, or at all.<\/p>\n<p><strong><em>Property Dispositions<\/em><\/strong><\/p>\n<p>The Company sold two properties during the first quarter of 2020 for&nbsp;<span class=\"xn-money\">$3.8 million<\/span>, of which approximately&nbsp;<span class=\"xn-money\">$1.3 million<\/span>&nbsp;was used to repay related mortgage debt.<\/p>\n<p><strong>Capital Structure and Liquidity Resources<\/strong><\/p>\n<p>As of March&nbsp;31, 2020, the Company had a total borrowing capacity under its credit facility of&nbsp;<span class=\"xn-money\">$522.4 million<\/span>. Of this amount,&nbsp;<span class=\"xn-money\">$483.1 million<\/span>&nbsp;was outstanding under this facility as of March&nbsp;31, 2020 and&nbsp;<span class=\"xn-money\">$39.3 million<\/span>&nbsp;remained available for future borrowing<sup>13<\/sup>. As of March&nbsp;31, 2020, the Company had&nbsp;<span class=\"xn-money\">$175.7 million<\/span>&nbsp;of cash and cash equivalents. The Company&#8217;s net debt<sup>14<\/sup>&nbsp;to gross asset value<sup>15<\/sup>&nbsp;was 38.8%, with net debt of&nbsp;<span class=\"xn-money\">$1.6 billion<\/span>.<\/p>\n<p>The Company&#8217;s percentage of fixed rate debt was 73.2% as of March&nbsp;31, 2020. The Company&#8217;s total combined debt had a weighted-average interest rate cost&nbsp;of 4.2%<sup>16<\/sup>, resulting in an interest coverage ratio of 2.8 times<sup>17<\/sup>.<\/p>\n<p><strong>Dividend<\/strong><\/p>\n<p>On&nbsp;<span class=\"xn-chron\">March 30, 2020<\/span>, the Company announced that its Board of Directors approved an annualized dividend of&nbsp;<span class=\"xn-money\">$0<\/span>.85&nbsp;per share. The Company pays dividends monthly, and the change went into effect for the dividend which the Company declared in&nbsp;April 2020.<\/p>\n<p><strong>Subsequent Events<\/strong><\/p>\n<p><strong><em>Short-term Stockholder Rights Plan<\/em><\/strong><\/p>\n<p>On&nbsp;<span class=\"xn-chron\">April 13, 2020<\/span>&nbsp;the Company announced that its Board of Directors had approved a short-term stockholder rights plan to protect the long-term interests of the Company due to the substantial volatility in the trading of the Company&#8217;s Class A common stock that has resulted from the ongoing COVID-19 pandemic.<\/p>\n<p><strong><em>April Rents<\/em><\/strong><sup>18<\/sup><\/p>\n<p>For the month of April, AFIN collected over 79% of the cash rents that were due across the portfolio, including 97% of the cash rent payable from the top 20 tenants<sup>19<\/sup>&nbsp;in the portfolio and 92% of the cash rent payable in the single tenant portfolio.<\/p>\n<p>Of the April cash rent remaining, rent deferral amendments have been approved for 4% of the unpaid cash rent, while another 16% of rent deferrals are currently in negotiation. The remaining 1% generally represents tenants that have paid partial April cash rent but where the Company has not agreed to, or commenced negotiations regarding, any formal deferral arrangements.<\/p>\n<p>The typical deferral amendment defers payment of approximately 30% of the rent due for 3 months and is repaid within the first half of 2021.<\/p>\n<p><strong>Footnotes\/Definitions<\/strong><\/p>\n<p><sup>1&nbsp;&nbsp;<\/sup>Service retail is defined as single-tenant retail properties leased to tenants in the retail banking, restaurant, grocery, pharmacy, gas\/convenience, healthcare, and auto services sectors<\/p>\n<p><sup>2&nbsp;&nbsp;<\/sup>Represents the contract purchase price and excludes acquisition costs which are capitalized per GAAP.<\/p>\n<p><sup>3&nbsp;&nbsp;<\/sup>Cash capitalization rate is a rate of return on a real estate investment property based on the expected, annualized cash rental income during the first year of ownership that the property will generate under its existing lease. Cash capitalization rate is calculated by dividing the annualized cash rental income the property will generate (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property. The weighted-average cash capitalization rate is based upon square feet.<\/p>\n<p><sup>4&nbsp;&nbsp;<\/sup>Capitalization rate is a rate of return on a real estate investment property based on the expected, annualized straight-line rental income that the property will generate under its existing lease. Capitalization rate is calculated by dividing the annualized straight-lined rental income the property will generate (before debt service and depreciation and after fixed costs and variable costs) and the purchase price of the property. The weighted-average capitalization rate is based upon square feet.<\/p>\n<p><sup>5&nbsp;&nbsp;<\/sup>Percentage of single-tenant portfolio tenants and top 10 tenants based on annualized straight-line rent as of&nbsp;<span class=\"xn-chron\">March 31, 2020<\/span>.<\/p>\n<p><sup>6&nbsp;&nbsp;<\/sup>As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant&#8217;s obligation under the lease) or by using a proprietary Moody&#8217;s analytical tool, which generates an implied rating by measuring a company&#8217;s probability of default. Ratings information is as of March&nbsp;31, 2020. Single-tenant portfolio tenants are 44.3% actual investment grade rated and 21.5% implied investment grade rate. Anchor tenants in the multi-tenant portfolio are 19.7% actual investment grade rated and 10.6% implied investment grade rated.<\/p>\n<p><sup>7&nbsp;&nbsp;<\/sup>Based on annualized straight-line rent as of March&nbsp;31, 2020. Contractual rent increases include fixed percent or actual increases, or CPI-indexed increases.<\/p>\n<p><sup>8&nbsp;&nbsp;<\/sup>Liquidity&nbsp;includes&nbsp;the amount available for future borrowings under the Company&#8217;s credit facility of&nbsp;<span class=\"xn-money\">$39.3 million<\/span>&nbsp;and&nbsp;cash&nbsp;and&nbsp;cash&nbsp;equivalents. In accordance with the Company&#8217;s credit facility, the Company is permitted to pay distributions in an aggregate amount not exceeding 105% of MFFO (as defined in the Company&#8217;s credit facility) for any applicable period (commencing with the period of two consecutive fiscal quarters ended on&nbsp;<span class=\"xn-chron\">September 30, 2019<\/span>) if, as of the last day of the period, the Company is able to satisfy a maximum leverage ratio after giving effect to the payments and also has a combination of cash, cash equivalents and amounts available for future borrowings under the credit facility of not less than&nbsp;<span class=\"xn-money\">$60.0 million<\/span>. The Company satisfied these requirements and relied on this exception for all applicable periods (including the period ended&nbsp;<span class=\"xn-chron\">March 31, 2020<\/span>). The Company also expects it will rely on this exception in future periods.<\/p>\n<p><sup>9&nbsp;&nbsp;<\/sup>The&nbsp;weighted-average&nbsp;remaining&nbsp;lease&nbsp;term&nbsp;(years)&nbsp;is&nbsp;based&nbsp;on&nbsp;annualized straight-line rent as of March&nbsp;31, 2020.<\/p>\n<p><sup>10&nbsp;<\/sup>Annualized straight-line rent is calculated using the most recent available lease terms as of March&nbsp;31, 2020.<\/p>\n<p><sup>11&nbsp;<\/sup>Experiential retail is defined as multi-tenant properties leased to tenants in the restaurant, discount retail, entertainment, salon\/beauty, and grocery sectors, among others.<\/p>\n<p><sup>12<\/sup>&nbsp;Based on acquisitions during the period from&nbsp;<span class=\"xn-chron\">January 1, 2017<\/span>&nbsp;through&nbsp;<span class=\"xn-chron\">March 31, 2020<\/span>&nbsp;excluding the multi-tenant properties acquired in the American Realty Capital Retail Centers of America, Inc. (&#8220;RCA&#8221;) merger in&nbsp;<span class=\"xn-chron\">February 2017<\/span>. Weighted by annualized straight-line rent as of&nbsp;<span class=\"xn-chron\">March 31, 2020<\/span>.<\/p>\n<p><sup>13&nbsp;<\/sup>The borrowing capacity and availability for future borrowings under the Company&#8217;s credit facility is based on the borrowing base thereunder, which is the pool of eligible otherwise unencumbered real estate assets as March&nbsp;31, 2020.<\/p>\n<p><sup>14&nbsp;<\/sup>Total debt of&nbsp;<span class=\"xn-money\">$1.8 billion<\/span>&nbsp;less cash and cash equivalents of&nbsp;<span class=\"xn-money\">$175.7 million<\/span>&nbsp;as of March&nbsp;31, 2020. Excludes the effect of deferred&nbsp;financing&nbsp;costs,&nbsp;net,&nbsp;mortgage&nbsp;premiums,&nbsp;net and includes the effect of cash and cash equivalents.<\/p>\n<p><sup>15&nbsp;<\/sup>Defined as the carrying value of total assets plus accumulated depreciation and amortization as of March&nbsp;31, 2020.<\/p>\n<p><sup>16<\/sup>&nbsp;Weighted&nbsp;based&nbsp;on&nbsp;the&nbsp;outstanding&nbsp;principal&nbsp;balance&nbsp;of&nbsp;the&nbsp;debt.<\/p>\n<p><sup>17&nbsp;<\/sup>The interest coverage ratio is calculated by dividing adjusted EBITDA by cash paid for interest (interest&nbsp;expense&nbsp;less&nbsp;amortization of deferred financing costs, net, and change in accrued interest&nbsp;and&nbsp;amortization&nbsp;of&nbsp;mortgage&nbsp;premiums on borrowings) for the quarter ended March&nbsp;31, 2020.<\/p>\n<p><sup>18<\/sup>&nbsp;This information may not be indicative of any future period. The impact of the COVID-19 pandemic on the Company&#8217;s rental revenue for the second quarter of 2020 and thereafter cannot be determined at present. The ultimate impact on our future results of operations and liquidity will depend on the overall length and severity of the COVID-19 pandemic, which management is unable to predict. With respect to ongoing negotiations of rent deferrals, there can be no assurance that these negotiations will be successful and will lead to formal rent deferral agreements on favorable terms, or at all. With respect to the other remaining unpaid amounts, there can be no assurance the Company will be successful in its efforts to collect or defer these amounts on a timely basis, or at all.<\/p>\n<p><sup>19&nbsp;<\/sup>Top 20 tenants based on April cash rents<\/p>\n<p><strong>Webcast and Conference Call<\/strong><\/p>\n<p>AFIN will host a webcast and call on&nbsp;<span class=\"xn-chron\">May 7, 2020<\/span>&nbsp;at&nbsp;<span class=\"xn-chron\">11:00 a.m. ET<\/span>&nbsp;to discuss its financial and operating results. This webcast will be broadcast live over the Internet and can be accessed by all interested parties through the AFIN website,&nbsp;www.americanfinancetrust.com, in the &#8220;Investor Relations&#8221; section.<\/p>\n<p>Dial-in instructions for the conference call and the replay are outlined below.<\/p>\n<p>To listen to the live call, please go to AFIN&#8217;s &#8220;Investor Relations&#8221; section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the AFIN website at&nbsp;www.americanfinancetrust.com.<\/p>\n<p><em>Live Call<br class=\"dnr\" \/><\/em>Dial-In (Toll Free): 1-888-317-6003<br class=\"dnr\" \/>International Dial-In: 1-412-317-6061<br class=\"dnr\" \/>Canada Dial-In (Toll Free): 1-866-605-3851<br class=\"dnr\" \/>Participant Elite Entry Number: 4922290<\/p>\n<p><em>Conference Replay*<br class=\"dnr\" \/><\/em>Domestic Dial-In (Toll Free): 1-877-344-7529<br class=\"dnr\" \/>International Dial-In: 1-412-317-0088<br class=\"dnr\" \/>Canada Dial-In (Toll Free): 1-855-669-9658<br class=\"dnr\" \/>Conference Number: 10141883<\/p>\n<p class=\"tags\">\n<div><strong>See Campaign: <\/strong><a href=\"http:\/\/www.americanfinancetrust.com\" target=\"_blank\">http:\/\/www.americanfinancetrust.com<\/a><br \/><b>Contact Information:<\/b><br \/>Dial-In (Toll Free): 1-888-317-6003<br \/>\nInternational Dial-In: 1-412-317-6061<br \/>\nCanada Dial-In (Toll Free): 1-866-605-3851<br \/>\nParticipant Elite Entry Number: 4922290<\/p>\n<p><b>Tags:<\/b><br \/><a href=\"\"><\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/news-category\/wire-real-estate\/\" rel=\"category tag\">Wire Real Estate<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/news-category\/wire\/\" rel=\"category tag\">Wire<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/global-regions\/united-states\/\" rel=\"category tag\">United States<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/language\/english\/\" rel=\"category tag\">English<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"\" alt=\"image\" width=\"400\" height=\"300\" class=\"cwdfimg\" \/><\/div>\n<div>\n<h3>Contact Information:<\/h3>\n<p>Dial-In (Toll Free): 1-888-317-6003<br \/>\nInternational Dial-In: 1-412-317-6061<br \/>\nCanada Dial-In (Toll Free): 1-866-605-3851<br \/>\nParticipant Elite Entry Number: 4922290<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>American Finance Trust, Inc. &nbsp;a real estate investment trust focused on acquiring and managing a diversified portfolio of primarily service-oriented1&nbsp;and traditional retail and distribution related commercial real estate properties in the U.S., announced today its financial and operating results for the first quarter ended March&nbsp;31, 2020. First Quarter 2020 Highlights&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue increased 4% to&nbsp;$74.6 million&nbsp;as &hellip; <a href=\"https:\/\/icrowdnewswire.com\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/\">Continue reading <span>American Finance Trust Announces First Quarter 2020 Results<\/span><\/a> <a href=\"https:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/\" class=\"more-link\">Continue Reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":46,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,22,54,18],"tags":[],"class_list":["post-10363","post","type-post","status-publish","format-standard","hentry","category-english","category-united-states","category-wire","category-wire-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>American Finance Trust Announces First Quarter 2020 Results - Business<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"American Finance Trust Announces First Quarter 2020 Results - Business\" \/>\n<meta property=\"og:description\" content=\"American Finance Trust, Inc. &nbsp;a real estate investment trust focused on acquiring and managing a diversified portfolio of primarily service-oriented1&nbsp;and traditional retail and distribution related commercial real estate properties in the U.S., announced today its financial and operating results for the first quarter ended March&nbsp;31, 2020. First Quarter 2020 Highlights&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue increased 4% to&nbsp;$74.6 million&nbsp;as &hellip; Continue reading American Finance Trust Announces First Quarter 2020 Results Continue Reading &rarr;\" \/>\n<meta property=\"og:url\" content=\"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/\" \/>\n<meta property=\"og:site_name\" content=\"Business\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-08T12:41:00+00:00\" \/>\n<meta name=\"author\" content=\"Asiya\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Asiya\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/\",\"url\":\"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/\",\"name\":\"American Finance Trust Announces First Quarter 2020 Results - Business\",\"isPartOf\":{\"@id\":\"https:\/\/ipsnews.net\/business\/#website\"},\"datePublished\":\"2020-05-08T12:41:00+00:00\",\"author\":{\"@id\":\"https:\/\/ipsnews.net\/business\/#\/schema\/person\/3a37b5ed16b9ebaf70290330c45a2e37\"},\"breadcrumb\":{\"@id\":\"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ipsnews.net\/business\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"American Finance Trust Announces First Quarter 2020 Results\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ipsnews.net\/business\/#website\",\"url\":\"https:\/\/ipsnews.net\/business\/\",\"name\":\"Business\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ipsnews.net\/business\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/ipsnews.net\/business\/#\/schema\/person\/3a37b5ed16b9ebaf70290330c45a2e37\",\"name\":\"Asiya\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ipsnews.net\/business\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d4d7dcc41e3f5a5cad4cf78eca935d2f4c65cc9a91e376789d357e29806bcb91?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d4d7dcc41e3f5a5cad4cf78eca935d2f4c65cc9a91e376789d357e29806bcb91?s=96&d=mm&r=g\",\"caption\":\"Asiya\"},\"sameAs\":[\"https:\/\/icrowdnewswire.com\/fc\"],\"url\":\"https:\/\/ipsnews.net\/business\/author\/asiya\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"American Finance Trust Announces First Quarter 2020 Results - Business","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/","og_locale":"en_US","og_type":"article","og_title":"American Finance Trust Announces First Quarter 2020 Results - Business","og_description":"American Finance Trust, Inc. &nbsp;a real estate investment trust focused on acquiring and managing a diversified portfolio of primarily service-oriented1&nbsp;and traditional retail and distribution related commercial real estate properties in the U.S., announced today its financial and operating results for the first quarter ended March&nbsp;31, 2020. First Quarter 2020 Highlights&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue increased 4% to&nbsp;$74.6 million&nbsp;as &hellip; Continue reading American Finance Trust Announces First Quarter 2020 Results Continue Reading &rarr;","og_url":"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/","og_site_name":"Business","article_published_time":"2020-05-08T12:41:00+00:00","author":"Asiya","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Asiya","Est. reading time":"12 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/","url":"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/","name":"American Finance Trust Announces First Quarter 2020 Results - Business","isPartOf":{"@id":"https:\/\/ipsnews.net\/business\/#website"},"datePublished":"2020-05-08T12:41:00+00:00","author":{"@id":"https:\/\/ipsnews.net\/business\/#\/schema\/person\/3a37b5ed16b9ebaf70290330c45a2e37"},"breadcrumb":{"@id":"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/"]}]},{"@type":"BreadcrumbList","@id":"http:\/\/ipsnews.net\/business\/2020\/05\/08\/american-finance-trust-announces-first-quarter-2020-results\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ipsnews.net\/business\/"},{"@type":"ListItem","position":2,"name":"American Finance Trust Announces First Quarter 2020 Results"}]},{"@type":"WebSite","@id":"https:\/\/ipsnews.net\/business\/#website","url":"https:\/\/ipsnews.net\/business\/","name":"Business","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ipsnews.net\/business\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/ipsnews.net\/business\/#\/schema\/person\/3a37b5ed16b9ebaf70290330c45a2e37","name":"Asiya","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ipsnews.net\/business\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d4d7dcc41e3f5a5cad4cf78eca935d2f4c65cc9a91e376789d357e29806bcb91?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d4d7dcc41e3f5a5cad4cf78eca935d2f4c65cc9a91e376789d357e29806bcb91?s=96&d=mm&r=g","caption":"Asiya"},"sameAs":["https:\/\/icrowdnewswire.com\/fc"],"url":"https:\/\/ipsnews.net\/business\/author\/asiya\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/posts\/10363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/comments?post=10363"}],"version-history":[{"count":1,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/posts\/10363\/revisions"}],"predecessor-version":[{"id":10364,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/posts\/10363\/revisions\/10364"}],"wp:attachment":[{"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/media?parent=10363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/categories?post=10363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipsnews.net\/business\/wp-json\/wp\/v2\/tags?post=10363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}