Cole Real Estate Investments Inc
Cole Real Estate Investments — Q3 2013 Earnings Presentation
22 slides from Cole Real Estate Investments's earnings presentation, Nov 5, 2013
Slide 1: 2013 Third Quarter Earnings Presentation
November 5, 2013 2013 Third Quarter Earnings Presentation www.ColeREIT.com Exhibit 99.3
Slide 2: Disclosures: Tenants, Trademarks and Logos
2© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Disclosures The properties pictured have been acquired by Cole. Corporate tenants may also occupy numerous properties that are not owned by Cole or Cole-sponsored programs. Cole is not affiliated or associated with, is not endorsed by,
Slide 3: Forward-Looking Statements
3© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. In addition to historical information, this presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended
Slide 4: Additional Information About the Merger with ARCP and Where to Find It
4© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Additional Information About the Merger with ARCP and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connectio
Slide 5: Information Overview
5© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Information Overview 2013 Third Quarter Highlights Page 6 Financials » Operating Results » 2013 Fourth Quarter Guidance » Current Dividend and Payout Ratios » Balance Sheet Activity Pages 7 - 10 Private Capital Management Page 11 Real E
Slide 6: 2013 Third Quarter Highlights
6© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. 12.7x 13.1x 13.4x 14.6x 15.3x 15.6x 16.5x 16.8x EPR SRC LXP Cole WPC CSG NNN O -5 0 5 10 15 20 25 Jun/13 Jul/13 Aug/13 Sep/13 Oct/13 COLE S&P 500 MSCI US REIT (RMS) % Total Return Q3 Since 6/20/13 COLE 9.1 19.8 S&P 500 5.8 10.6 RMS -0.4
Slide 7: Financials: Operating Results Summary
7© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Financials Operating Results Summary Financial Results ($ in thousands, except per share data) Three Months Ended Sept. 30, 2013 Three Months Ended Sept. 30, 2012 Total Real Estate Investment Private Capital Management Year-Over-Year %
Slide 8: 2013 Fourth Quarter Guidance
8© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Note: All dollars in millions, except per share data; All US GAAP except Normalized EBITDA and AFFO. See “About the Data” for a description of the Non-GAAP financial measures. 4Q2013E AFFO and normalized EBITDA compositions are based on
Slide 9: Current Dividend and Payout Ratios
9© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Financials Current Dividend and Payout Ratios 2014E Consensus AFFO Payout Ratios(3) 1. Dividend yield is calculated by dividing annualized dividends per common share by closing stock price on September 30, 2013. AFFO payout ratio is cal
Slide 10: Key Balance Sheet Metrics and Capital Structure
10© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. - 200 400 600 800 1,000 1,200 1,400 R e m a i n i n g 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 T h e r e a f t e r D e b t B a l a n c e s O u t s t a n d i n g ( $ m m ) Repurchase Agreements Credit Facility Mor
Slide 11: Private Capital Management Highlights
11© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Private Capital Management Highlights » $1.7 billion of capital was raised on behalf of our managed REITs in the third quarter of 2013 and an additional $511.0 million of capital was raised during October » Cole Corporate Income Trust,
Slide 12: Portfolio Construction History
12© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Real Estate Portfolio Review Portfolio Construction History % Purchased in Sector (By Year) Initial Lease Yield(3) Purchase Price (thousands) % of Total Purchase Price Rentable Square Feet (thousands) Freestanding Retail Multi-Tenant R
Slide 13: Current Portfolio Composition
13© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Freestanding Retail 43% Office and Industrial 26% Multi-Tenant Retail 24% Notes Receivable & CMBS 4% Unconsolidated JVs 3% Real Estate Portfolio Review Current Portfolio Composition PROPERTY TYPE # OF PROPERTIES SQUARE FEET Freestandin
Slide 14: Real Estate Segment Adjusted Net Operating Income
14© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Real Estate Portfolio Review Real Estate Segment Adjusted Net Operating Income (NOI) NOI and Adjusted NOI are non-GAAP measures. See “About the Data” for a description of our non-GAAP measures and a reconciliation of NOI and Adjusted N
Slide 15: Weighted Average Lease Term Remaining and Occupancy
15© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Real Estate Portfolio Review Weighted Average Lease Term Remaining (WALT) and Occupancy Freestanding Retail Multi-Tenant Retail Office and Industrial 0.1% 0.8% 1.2% 5.2% 10.0% 12.8% 69.9% 2013 2014 2015 3-5 Years 5-7 Years 7-10 Years 1
Slide 16: Credit Quality
16© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Real Estate Portfolio Review Credit Quality(1) Overall Portfolio Multi-Tenant Retail Office and Industrial 38% Investment Grade Rating % of Total AAA to AA- 4.3% A+ to A- 3.7% BBB+ to BBB- 29.6% 37.6% Rating % of Total AAA to AA- 1.8%
Slide 17: Geographic Diversification
17© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Real Estate Portfolio Review Geographic Diversification Tables and charts show certain information regarding the geographic diversification of Cole’s real estate portfolio, including consolidated joint ventures, as of September 30, 201
Slide 18: Industry Diversification
18© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. Real Estate Portfolio Review Industry Diversification Tables show certain information regarding the industry diversification of Cole’s real estate portfolio, including consolidated joint ventures, as of September 30, 2013, based on ann
Slide 19: Tenancy Diversification
19© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. TENANT NUMBER OF LEASES % OF ANNUALIZED MULTI-TENANT RENTAL REVENUE WALT(1) CREDIT RATING(2) PETSMART 28 6.4% 5.9 Years BB+ KOHL'S 7 3.6% 13.8 Years BBB+ ROSS 17 3.4% 4.6 Years A- BED BATH & BEYOND 16 3.1% 4.6 Years BBB+ BEST BUY 10 3.
Slide 20: About the Data
20© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. About the Data Supplemental Information The Company’s supplemental financial information for the third quarter ended September 30, 2013, and the Company’s Form 10-Q report for the same period, were filed on November 5, 2013 and are ava
Slide 21: About the Data (continued)
21© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. About the Data (continued) Non-GAAP Financial Measures continued FFO and AFFO (continued) For all of these reasons, the Company believes FFO and AFFO, in addition to net income and cash flows from operating activities, as defined by GA
Slide 22: About the Data (continued): GAAP Reconciliations
22© 2013 Cole Real Estate Investments, Inc. All Rights Reserved. About the Data (continued) Non-GAAP Financial Measures continued GAAP Reconciliations Reconciliations of net income to FFO, AFFO and Normalized EBITDA are provided in the Supplemental Financial Information for the third quarter of 2013
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