NEW YORK, January 11, 2022 / PRNewswire / – American Finance Trust, Inc. (Nasdaq: AFIN) (“AFIN” or the “Company”) today announced that it has acquired 69 commercial properties for a total of $ 179.9 million1 during the year ended December 31, 2021, based on the purchase price of the contract. The Company also announced that the leases of nine properties in its single-tenant portfolio have been extended in 2021, adding approximately $ 7.2 million in linear net rents over the term of the new leases. In addition, the Company signed 167 new leases or lease renewals.2 totaling 1.7 million square feet with tenants in its portfolio of open-air shopping centers.
“We had a solid year with almost $ 180 million of retail acquisitions, expanding our focused retail portfolio of net leased properties with long-term leases, ”said Michel weil, CEO of the company. “The properties we acquired last year had a weighted average capitalization rate of 8.3%3 and a weighted average residual lease term of 13.3 years at each closing date. In addition, we continued to be successful in our portfolio-wide leasing initiatives, executing over 175 new or renewed leases representing approximately 8.7% of our portfolio in square footage. “
Mr. Weil continued, “While we look forward to the announcement $ 1.3 billion the surface shopping mall acquisition that we expect to close this quarter, we believe our team’s superior execution in 2021 plays a critical role in transforming the company into Necessity Retail REIT: Where America Shops. “
During the fourth quarter, the Company acquired 13 properties for an aggregate contractual purchase price of $ 28.1 million at a capitalization rate4 of 7.1% and a weighted average capitalization rate of 8.0% with an average remaining lease term of 18.4 years at the closing dates, weighted in square feet. For the year ended December 31, 2021, the Company acquired 69 properties for a contractual purchase price of $ 179.9 million at an initial capitalization rate of approximately 7.6% and a weighted average capitalization rate of 8.3%.
For the year ended December 31, 2021, the Company executed nine lease extensions in the single tenant segment of its portfolio. The leases extended the weighted average remaining term of the leases for these tenants to 9.8 years from 2.7 years at the time of signing and added a linear net rent of approximately $ 7.2 million on the new lease conditions. The total linear rent expected over the term of these leases is $ 9.7 million on the date of signature of each lease. The Company also signed 167 new leases or lease renewals associated with its open-air shopping centers during the fiscal year ended. December 31, 2021, totaling 1.7 million square feet.
Footnotes / Definitions
1 Includes two plots of land adjacent to property owned by the Company
2 Includes short-term leases, license agreements, and deferral and reduction agreements when associated with an extension
3 The capitalization rate is a rate of return on a real estate investment property based on the annualized and expected rental income that the property will generate under its existing lease (s). The capitalization rate is calculated by dividing the linear annualized rental income that the property will generate (before debt service and amortization and after fixed costs and variable costs) by the purchase price of the property, excluding acquisition costs. The weighted average capitalization rate is based on square footage.
4 The cash capitalization rate is a rate of return on a real estate investment property based on the annualized cash rental income expected during the first year of ownership that the property will generate under its existing lease (s). The cash capitalization rate is calculated by dividing that annualized rental income that the property will generate (before debt service and amortization and after fixed costs and variable costs) by the purchase price of the property. excluding acquisition costs. Weighted average cash cap rate is based on square footage
About American Finance Trust, Inc. soon to be renamed The Necessity Retail REIT Where America Shops
American Finance Trust, Inc. (Nasdaq: AFIN) is a Nasdaq-listed real estate investment trust that focuses on acquiring and managing a diverse portfolio of primarily service-oriented and sales-related commercial real estate properties. retail and distribution in the United States. sur l’AFIN is available on its website at www.americanfinancetrust.com.
Statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially. The words “anticipates”, “believes”, “expects”, “estimates”, “projects”, “plans”, “intends”, “could”, “can”, “seek”, ” “,”, “To identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are beyond the control of the Company, which could cause actual results to differ materially from the results contemplated by forward-looking statements. These risks and uncertainties include the potential negative effects of the ongoing global COVID-19 pandemic, including measures taken to contain or treat COVID-19, on the Company, the tenants of the Company, the assets under contract to be acquired. , including their respective tenants and the global economy and financial markets and that any potential future acquisition of property is subject to market conditions and the availability of capital and may not be identified or completed on favorable terms, or not at all, as well as the risks and uncertainties set out in the Risk Factors section of the company’s annual report on Form 10-K for the year ended December 31, 2020 filed on February 25, 2021 and all other filings with the SEC after that date, as these risks, uncertainties and other material factors may be updated from time to time in subsequent reports of the Company, including in particular the Company’s current report on dated Form 8-K 20 December 2021 and describing additional facts and risk factors relating to the transaction entered into with certain subsidiaries of CIM Real Estate Finance Trust, Inc. (the “Transaction”) and referenced in this press release. In particular, the Transaction is subject to closing conditions, including conditions which are beyond the control of the Company, and the Transaction described in this press release may not be completed under the conditions envisaged, or not at all, or may be delayed. The Company may not be able to obtain financing to complete the Transaction on favorable terms or not at all. Forward-looking statements speak only as of the date on which they are made, and the Company assumes no obligation to update or revise any forward-looking statements to reflect changed assumptions, the occurrence of unforeseen events or changes future operating results, unless it is required to do so. by the law.
SOURCE American Finance Trust, Inc.