SCOTTSDALE, AZ-In its first report since the July, 2013 merger with Cole Credit Property Trust II, Spirit Realty Capital Inc. issued both Q2 operating results and pro forma merger highlights. Pre-merger activities included a 7.2% increase in revenue over Q2 2012 and net loss of $0.14 per share.
Other pre-merger highlights for the quarter ending June 30 included:
- FFO at $0.25 per share, AFFO of $0.45 per share.
- Investment of $38.2 million in nine properties with tenants in place
- Portfolio occupancy above 98%.
“Our second quarter results were consistent with our expectations and affirm the stable earnings quality of our seasoned, cycle-tested pre-merger portfolio," comments Thomas H. Nolan, Jr., chairman and CEO of Spirit Realty Capital. "In regards to the merger, this transaction has allowed us to achieve significant progress toward the broad strategic objectives established at the time of our IPO less than one year ago, which were to diversify our tenant base, reduce our leverage, increase our financial flexibility and scale our operations."
He adds that the combined company has an enterprise value in excess of $7.1 billion and an equity market capitalization of approximately $3.5 billion.
In connection with the merger, transaction costs and expenses of approximately $86 million were incurred through July 17, 2013 and include the following items and approximate amounts (dollars in millions):
| Advisory Fees | $33.6 million |
| Financing Commitments Costs | $20.8 million |
| Solicitation of Lenders' Concents | $16.1 million |
| Legal, accounting, other professional services | $15.5 |
| Post-Merger Pro Forma Portfolio Highlights (Dollars in millions) |
Spirit 6/30/13 |
Post Merger Pro-Forma 7/17/13 |
| Real estate investments | $3,376.2 | $6,489.1 |
| Debt | $1,932.2 | $3,613.4 |
| Market capitalization (as of July 17, 2013) | $1,503.2 | $3,452.4 |
| Leverage | 62% | 52% |
| % Investment grade | 1% | 19% |
| % Top ten tenants (revenue) | 50% | 37% |
| Occupancy | 98% | 99% |
| # Tenants | 165 | 383 |
| # States | 47 | 48 |
| Annualized rents (d) | $288.5 | $545.7 |
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