New YorkAnd January 11 2022 /PRNewswire/ — American Finance Trust, Inc. (Nasdaq: AFIN) (“AFIN” or the “Company”) today announced that it acquired a total of 69 retail properties. 179.9 million dollars1 During the past year December 31, 2021, based on the contract purchase price. The company also announced the extension of lease contracts for nine properties in its single-rental portfolio through 2021, adding approx. $7.2 million In a straight line net rent over the new lease terms. In addition, the company signed 167 new lease agreements or lease renewals2 It has a total area of 1.7 million square feet with tenants in the outdoor shopping center portfolio.
“We had a strong year with nearly 180 million dollars of retail acquisitions, and expansion of our portfolio focused on necessary retail of net-leased properties with long-term leases,” Michael WillCEO of the company. “The properties we acquired last year had a weighted average cap rate of 8.3%.3 and a weighted average remaining lease term of 13.3 years as of each closing date. In addition, we have continued to be successful in leasing initiatives across our portfolio, having executed more than 175 new or renewable leases representing approximately 8.7% of our portfolio per square foot.”
Weil continued: “We also look forward to what was previously announced 1.3 billion dollars Acquisition of outdoor malls that we expect to close this quarter, we believe superior execution from our team in 2021 plays a significant role in the company’s transformation into a “real estate investing imperative: Where America Stores.”
During the fourth quarter, the company acquired 13 properties at a total contract purchase price $28.1 million cash cap rate4 7.1% and a weighted average rate of 8.0% with an average remaining lease term of 18.4 years as of the closing dates, weighted on a square foot basis. for the year ending December 31, 2021The company acquired 69 properties for the contract purchase price 179.9 million dollars With an upper bound rate of approximately 7.6% and a weighted average rate of 8.3%.
for the year ending December 31, 2021The company has implemented nine lease expansions in the individual tenant segment of its portfolio. The leases extended the weighted average lease term of these tenants to 9.8 years from 2.7 years at the time of signing and added the net straight-line rent by approximately $7.2 million on the new lease terms. The total expected straight-line rent during the term of these lease contracts is $9.7 million As of the date of execution of each lease agreement. The company also signed 167 new lease contracts or lease renewals for open shopping centers during the year ending December 31, 2021, with a total area of 1.7 million square feet.
Notes / Definitions
1 It includes two plots of land adjacent to a property owned by the company
2 Includes short-term leases, licensing agreements, deferral and mitigation agreements when combined with an extension
3 The capitalization rate is the rate of return on a real estate investment property based on the expected annual fixed-line rental income that the property will generate under the current lease or lease agreement. The capitalization rate is calculated by dividing the annual rental income calculated on the property (before debt service and depreciation and after fixed and variable costs) by the property’s purchase price, excluding purchase costs. The weighted average capitalization rate is based on square feet.
4 The cash capitalization rate is the rate of return on a real estate investment property based on the expected annual cash rental income during the first year of ownership that the property will generate under the current lease or lease. The cash capitalization rate is calculated by dividing the annual cash rental income that the property will generate (before debt service and depreciation and after fixed and variable costs) by the property’s purchase price. Excluding purchase costs. The weighted average cash capitalization rate is based on square feet
About American Finance Trust, Inc. Soon to be rebranded to The Necessity Retail REIT as America Trades
American Finance Trust, Inc. (Nasdaq: AFIN) is a publicly traded real estate investment trust listed on the Nasdaq stock exchange focused on acquiring and managing a diversified portfolio of commercial real estate related to services, traditional retail, and distribution in the United States. Additional information about AFIN is 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 “expect,” “believe,” “expect,” “estimate,” “project,” “plan,” “intend,” “may,” “will,” “seek,” “will,” and similar expressions are intended to identify forward-looking statements. Not all forward-looking statements contain such identifying words. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the potential adverse effects of the ongoing global COVID-19 pandemic, including actions taken to contain or treat COVID-19, on the Company, the Company’s tenants and the assets under contract to be acquired including the respective tenants and tenants. the global economy and financial markets and that any potential future acquisition of the property is subject to market conditions and the availability of capital and may not be determined or completed on favorable terms, or at all, in addition to those risks and uncertainties described in the Risk Factors section of the Company’s annual report on Form 10-K for the year ended December 31, 2020 foot in February 25 2021 and all other filings with the Securities and Exchange Commission after that date, as such risks, uncertainties and other significant factors may be updated from time to time in the Company’s subsequent reports including in particular the Company’s current report on Form 8-K dated December 20 2021 He described additional facts and risk factors relating to the transaction entered into with certain subsidiaries of CIM Real Estate Finance Trust, Inc. (“Transaction”) is referred to in this release. In particular, the transaction is subject to closing conditions, including those outside the Company’s control, and the transaction described in this statement may not be completed on the terms contemplated, or may be delayed at all. The company may not be able to obtain financing to complete the transaction on favorable terms or at all. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changing assumptions or the occurrence of unexpected events or changes in future operating results, unless required to do so by law.
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SOURCE American Finance Trust, Inc.