Spirit MTA REIT — Corporate Update (January 2019)
14 slides from Spirit MTA REIT's corporate update, Jan 16, 2019
Slide 1: Strategy Update January 2019
Strategy Update JANUARY 2019
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements can be identified by the use of words such as "expect," "plan," "will," "estimate," "proj
Slide 3: SMTA Timeline
SMTA Timeline SMTA Spin-off Announcement 8/3/2017 To date, SMTA has paid Master Trust 2017-1 Issuance ($674.4MM) 01 12/14/2017 dividends of $1.66 per share 02 and authorized a $50MM share buyback program SMTA Spin-off Completion 03 5/31/2018 As of 1/14/19 SMTA had approximately $102MM First Dividend
Slide 4: SMTA Strategy Update
SMTA Strategy Update Shopko event accelerates SMTA’s strategic plan Strategy at Spinoff • 36 month period to sell Shopko and non-core assets • Distribute a portion of the proceeds to shareholders and reinvest the remainder into the Master Trust using leverage • Explore strategic alternatives after S
Slide 5: Near-Term Priorities
Near-Term Priorities Work with advisors to maximize the value of the Master Trust Sell non-core assets: • Academy DC ($9.3MM of annual Contractual Rent) • Other workout assets Return capital to shareholders • Expect to eventually distribute approximately 100% of CAD1, TEXT payments may be irregular
Slide 6: Components of NAV (excluding Shopko)
Components of NAV (excluding Shopko) Master Trust (as of Q3 2018) ($ in millions) The Master Trust has a diverse income Master Trust Contractual Rent $178.6 stream with assets in 22 industries Less: Shopko Contractual Rent (1.5) Master Trust Contractual Rents (ex Shopko) $177.1 Real Estate Investmen
Slide 7: Pro Forma Analysis (excluding Shopko)
Pro Forma Analysis (as of Q3 2018, excluding Shopko) Top Ten Tenants by Portfolio Mix1 Annual Contractual Rent 5% 3% AMC Entertainment, Inc. $10.9MM Academy, LTD. $9.9MM Universal Pool Co., Inc. $7.1MM Crème De La Crème, Inc. $5.5MM Goodrich Quality Theatres, Inc. $5.4MM Life Time Fitness, Inc. $5.2
Slide 8: Shopko Recent Event
Shopko Recent Event Shopko has filed for bankruptcy under Chapter 11 Due to the Shopko SMTA has the option under SMTA does not expect to bankruptcy, SMTA the non-recourse loan receive additional Shopko discontinued paying the agreement to relinquish the rent and will seek recovery interest and princ
Slide 9: SMTA's Shopko Exposure
SMTA’s Shopko Exposure (as of Q3 2018) SMTA contracts with Shopko provided for $43.3MM1 in annualized Contractual Rent and $4.2MM in annualized interest income Excluding the cash flows from Shopko, SMTA’s Q3 pro forma Fixed Charge Coverage Ratio is 1.38x with $8.3MM in annualized CAD SMTA holds a $3
Slide 10: Illustrative Impact of Shopko Exposure
Illustrative Impact of Shopko Exposure ($ in millions) Q3 Annualized Shopko1 Q3 Annualized ex Shopko AFFO $90.3 $(47.5) $42.8 Collections of Principal on Loans Receivable 3.0 3.0 Repayments Under Mortgages and Notes Payable (34.7) (34.7) Capex (2.8) (2.8) CAD $55.8 $8.3 Liquidity Analysis ($ in mill
Slide 11: Appendix: Non-GAAP Reconciliation and Reporting Definitions
Appendix Non-GAAP Reconciliation and Reporting Definitions
Slide 12: Reporting Definitions
Reporting Definitions Adjusted Debt represents interest bearing debt (reported in calculate these measures and, therefore, may not be Fixed Charge Coverage Ratio (FCCR) is the ratio of Annualized accordance with GAAP) adjusted to exclude unamortized debt comparable to such other REITs. A reconciliat
Slide 13: Reporting Definitions
Reporting Definitions Funds from Operations (FFO) and Adjusted Funds from revenues (comprised of straight-line rents, amortization of Operations (AFFO) We calculate FFO in accordance with the above and below market rent on our leases, amortization of standards established by the National Association
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Debt, Adjusted EBITDAre, Annualized Adjusted EBITDAre Q3 2018 FFO & AFFO Q3 2018 Master Trust, net $1,911,321 Net income / (loss) attributable to common stockholders $(7,549) CMBS, net 82,251 Add / (less) Total debt, net $1,993,572 Portfolio depreciation and amortiza