American Realty Capital Trust Inc
American Realty Capital Trust — IPO Roadshow (August 2012)
20 slides from American Realty Capital Trust's IPO roadshow presentation, Aug 6, 2012
Slide 1: American Realty Capital Trust, Inc. (NASDAQ: ARCT)
August 2012 NASDAQ: “ARCT” American Realty Capital Trust, Inc . NASDAQ: ARCT
Slide 2: Introductory Notes
August 2012 2 The data and other information described in these slides speaks as of the date of the slides or an earlier date indicated . Future performance may not be consistent with past performance, and is subject to change and inherent risks and uncertainties . This presentation contains certain
Slide 3: ARCT Value Proposition
August 2012 3 ARCT Value Proposition Value Proposition Assemble and manage a high - quality, diversified net lease real estate portfolio that generates durable income and the potential for asset appreciation, operated by a skilled management team and supported by a conservative capital structure Bes
Slide 4: Company Overview
August 2012 4 Company Overview A best - in - class portfolio and capital structure that will propel earnings and asset growth Portfolio Characteristics 1 Balance Sheet Metrics 1 (1) Based on data as of 06/30/2012. (2) Based on average annual rents (3) ARCT’s Board of Directors authorized a dividend
Slide 5: Property Portfolio Highlights
August 2012 5 Property Portfolio Highlights Overview Portfolio Map Portfolio Overview • Primarily investment grade rated tenants • Broadly diversified portfolio • Net leases • 100 % occupancy • 13.0 years remaining average primary lease term • New properties, average 5.3 years • Distributions tax de
Slide 6: Investment Grade Rated Tenant Focus
August 2012 6 Investment Grade Rated Tenant Focus Top 10 Tenants % Annual Rent Credit Rating 16.8% S&P: BBB 10.0% S&P: A 6.6% S&P: BBB+ 4.6% S&P: AA+ 3.5% S&P: BBB - 3.1% S&P: BBB+ (1) 2.7% S&P: BBB + 2.4% S&P: B 2.1% S&P: BB+ 2.1% S&P: A - 53.8% Top 10 Tenants • Rated 100% • Investment Grade 84% To
Slide 7: Diversified Portfolio: Tenant and Industry Diversification
August 2012 7 Diversified Portfolio Note: Data as of June 30, 2012. “Other” category includes those industries representing less than 2.0% of the Company’s GAAP rent. Tenant and Industry Diversification 62 Tenants and 20 Distinct Industries Pharmacy 17.4 % Freight 16.9 % Specialty Retail 9.5 % Healt
Slide 8: Diversified Portfolio: Property Type and Geography
August 2012 8 Property Type Geographic Diversification Diversified Portfolio Midwest 23.6% Southwest 13.1% Pacific Southwest 10.2% Pacific Northwest 0.8% Puerto Rico 0.5% Northeast 16.4% Mid-Atlantic 19.7% Southeast 15.7% Retail 54% Warehouse 37% Office 9% Well diversified by property type and geogr
Slide 9: Historical Occupancy vs. Peer Group and US REITs
August 2012 9 Historical Occupancy vs. Peer Group and US REITs High Portfolio Occupancy (1) Includes: Realty Income Corp., National Retail Properties, Inc., Entertainment Properties Trust, Lexington Realty Trust a nd CapLease , Inc. (2) Source: SNL Financial . (3) Less than 0.4% expirations until 20
Slide 10: Negligible Near-Term Lease Expirations
August 2012 10 Minimal lease expirations in next 6 years, average remaining p rimary lease term of portfolio is 13.0 years Negligible Near - Term Lease Expirations % of GAAP Rent Expiring (Annual and Cumulative) Cumulative Lease Expirations 0.0% 0.0% 0.1% 0.0% 0.2% 0.1% 6.5% 4.5% 5.1% 11.3% 27.8% 0.
Slide 11: New Property Focus: Portfolio Age vs. Peer Group
August 2012 11 5.6 4.3 6.8 5.3 20.2 0 5 10 15 20 25 Retail Distribution Office ARCT Total Comps Avg. Age (years) New Property Focus 5.3 years average age of ARCT portfolio vs. 20.2 years for Peer Group (1) (2) Portfolio Age vs. Peer Group Peer (1) Peer Group includes: Realty Income Corp., National R
Slide 12: Stable Earnings and Distributions with Growth
August 2012 12 Special Distribution of $0.05 Stable Earnings and Distributions with Growth $0.000 $0.100 $0.200 $0.300 $0.400 $0.500 $0.600 $0.700 $0.800 $0.900 $1.000 Listing 2012E 2013E AFFO Per Share Growth Since Listing AFFO Per Share $0.700 $0.855 $0.755 2012E and 2013E growth based on 2012E ra
Slide 13: 2012 and 2013 Guidance
August 2012 13 2012 and 2013 Guidance (1) 2012E and 2013E growth based on 2012E range bottom and 2013E range midpoint. Estimated year - end run rate based on annualized Q4 projection. (2) Paid and projected distributions divided by projected AFFO. $0.720 $0.740 $0.760 $0.780 $0.800 $0.820 $0.840 $0.
Slide 14: Capital Strategy Highlights
August 2012 14 Capital Strategy Highlights • April 5, 2012 • June 8, 2012 • Maintain low overall leverage • Reduce secured borrowings • Design simple capital structure • Maintain well - covered dividend • Secure investment grade credit rating Minimize cost of capital by maintaining a conservative ba
Slide 15: Conservative Capital Structure
August 2012 15 Conservative Capital Structure Shares outstanding 158.6 Price per share (as of June 30, 2012) $ 10.92 Equity Capitalization $ 1,731.7 Debt : Mortgage debt 511.5 Term loan 235.0 Revolving line of credit 167.8 Total Debt 914.3 Total Market Capitalization $ 2,646.0 65% 19% 8% 8% Equity C
Slide 16: Well Laddered Debt Maturities
August 2012 16 Well Laddered Debt Maturities $6 $ 33 $88 $240 $144 $235 $0 $ - $100 $200 $300 $400 $500 $600 2012 2013 2014 2015 2016 Thereafter Mortgages Term Loan $ in millions Limited near - term debt maturities and measured laddering
Slide 17: Low Cost of Debt
August 2012 17 Low Cost of Debt 5.73% 4.01% 6.10% 5.92% 5.44% 5.35% 5.35% 5.27% 3.80% 4.30% 4.80% 5.30% 5.80% 6.30% Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Cost of debt reduced by market forces and aggressive balance sheet management Q2'12 4.05%
Slide 18: Proven Management Team
August 2012 18 Proven Management Team Nicholas S. Schorsch Chairman of the Board • Co - founder of ARCT • Former CEO of American Financial Realty Trust (NYSE: AFR) • Two - Time Ernst & Young Entrepreneur of the Year Brian D. Jones Chief Financial Officer • 22 years public REIT experience • 15 years
Slide 19: Management Achievements and Results
August 2012 19 Management Achievements and Results Internalized management team: Aligned shareholder/management interests Closed $220 million tender offer: Reduced shares outstanding Repaid $161 million of mortgages: Lowered interest cost and secured borrowings Upsized revolver to $330 million: Impr
Slide 20: Send us a message
August 2012 Send us a message You may contact us at Brian Jones , Chief Financial Officer O FFICE (646) 937 - 6903 | M OBILE (415) 999 - 3591 E MAIL bjones@arctreit.com Heather Gentry , Vice President of Investor Relations O FFICE (646) 937 - 6904 | M OBILE (917) 232 - 1205 E MAIL hgentry@arctreit.c
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