PHOENIX, Sept. 8, 2020 /PRNewswire/ -- VEREIT, Inc. (NYSE:
VER) ("VEREIT"), a full-service real estate operating company which
owns and manages one of the largest portfolios of single-tenant
commercial properties in the U.S., announced the closing of
$157.5 million of dispositions in the
third quarter to accretively fund the previously announced partial
redemption of $150.0 million of its
6.70% Series F Cumulative Redeemable Preferred Stock ("Preferred
Stock") on September 20,
2020. The disposition total includes the Company's share of a
property contributed to the office partnership of $39.8 million. The other portfolio
dispositions were comprised of an additional office sale for
$107.0 million at a 5.6%
capitalization rate as well as $10.7
million of non-core assets which included a Red Lobster
restaurant.
Year-to-Date Transaction Summary as of September 2, 2020
- Dispositions totaled $356.7
million including the Company's share of dispositions
contributed to the office partnership of $110.0 million
- Allocated $456.2 million of
capital, including $300.0 million of
6.7% Preferred Stock redemptions and $156.2
million of property acquisitions, while also acquiring
$246.8 million for the industrial
partnership and $33.1 million for the
office partnership
- Preferred Stock outstanding will be reduced to approximately
$473.0 million from its original
$1.1 billion in 2014
- Issued $600.0 million aggregate
principal amount of 3.40% senior notes due 2028 to ultimately
refinance its 3.75% convertible senior notes due December 2020
Rent Collection Update
As of September 2, 2020, VEREIT
had received rent of approximately 87% for April, 86% for May, 86%
for June, 92% for July and 94% for August.
Glenn J. Rufrano, Chief Executive
Officer, stated, "We have continued to increase rent collection
which has been well above 90% during the third quarter, with August
coming in at 94%. Our capital allocation has accretively grown
earnings by recycling assets into portfolio enhancing acquisitions,
reducing our 6.7% Preferred Stock by another $300.0 million, and refinancing future debt at a
lower cost. Our institutional partnerships have also provided
incremental income in the form of acquisition and management fees
and serve as an alternate capital
source."
About VEREIT
VEREIT is a full-service real estate operating company which
owns and manages one of the largest portfolios of single-tenant
commercial properties in the U.S. VEREIT has total real estate
investments of $14.7 billion including approximately
3,800 properties and 88.9 million square feet. VEREIT's business
model provides equity capital to creditworthy corporations in
return for long-term leases on their properties. VEREIT is a
publicly traded Maryland
corporation listed on the New York Stock Exchange. VEREIT
uses, and intends to continue to use, its Investor Relations
website, which can be found at www.VEREIT.com, as a
means of disclosing material nonpublic information and for
complying with its disclosure obligations under Regulation
FD. Additional information about VEREIT can be found through
social media platforms such as Twitter and LinkedIn.
About the Data
Rent collection percentages disclosed are based on contractual rent and recoveries paid by tenants to
cover estimated tax, insurance and common area maintenance
expenses, including the Company's pro rata share of such amounts
related to
properties owned by unconsolidated joint ventures.
Percentages are calculated using a denominator that reflects
pre-COVID-19 rents that has not been adjusted for any rent relief
granted. Amounts exclude any tenants in bankruptcy.
Forward-Looking Statements
Information set forth in this press release contains
"forward-looking statements" which reflect VEREIT's expectations
and projections regarding future events and plans, including
statements regarding the redemption of the Series F Preferred Stock
and the payment of the Redemption Price with proceeds from expected
dispositions, increases in rent collections, accretive earnings
growth including the refinancing of debt at a lower cost and income
from our institutional partnerships. Generally, the words
"anticipates," "assumes," "believes," "continues," "could,"
"estimates," "expects," "goals," "intends," "may," "plans,"
"projects," "seeks," "should," "targets," "will," variations of
such words and similar expressions identify forward-looking
statements. These forward-looking statements are based on
information currently available and involve a number of known and
unknown assumptions and risks, uncertainties and other factors,
which may be difficult to predict and beyond VEREIT's control, that
could cause actual events and plans or could cause VEREIT's
business, financial condition, liquidity and results of operations
to differ materially from those expressed or implied in the
forward-looking statements. Further, information regarding
historical rent collections should not serve as an indication of
future rent collections. These factors include the risks and
uncertainties detailed from time to time in VEREIT's filings with
the Securities and Exchange Commission ("SEC"), which are available
at the SEC's website at www.sec.gov. VEREIT disclaims any
obligation to publicly update or revise any forward-looking
statements contained in this press release whether as a result of
changes in underlying assumptions or factors, new information,
future events or otherwise, except as required by law.
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SOURCE VEREIT, Inc.