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American Finance Trust

Financials

Price	13.88	EPS	-0
Shares	107	P/E	-184
MCap	1,481	P/FCF	19
Net Debt	-97	EBIT	51
TEV	1,384	TEV/EBIT	27
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-06-30	Filed 2020-08-06
10-Q	2020-03-31	Filed 2020-05-07
10-K	2019-12-31	Filed 2020-02-27
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-08
10-Q	2019-03-31	Filed 2019-05-08
10-K	2018-12-31	Filed 2019-03-07
10-Q	2018-09-30	Filed 2018-11-06
10-Q	2018-06-30	Filed 2018-08-09
10-Q	2018-03-31	Filed 2018-05-14
10-K	2017-12-31	Filed 2018-03-19
10-Q	2017-09-30	Filed 2017-11-13
10-Q	2017-06-30	Filed 2017-08-11
10-Q	2017-03-31	Filed 2017-05-12
10-K	2016-12-31	Filed 2017-03-13
10-Q	2016-09-30	Filed 2016-11-10
10-Q	2016-06-30	Filed 2016-08-11
10-Q	2016-03-31	Filed 2016-05-13
10-K	2015-12-31	Filed 2016-03-16
10-Q	2015-09-30	Filed 2015-11-10
10-Q	2015-06-30	Filed 2015-08-11
10-Q	2015-03-31	Filed 2015-05-19
10-K	2014-12-31	Filed 2015-05-15
10-Q	2014-09-30	Filed 2014-11-14
10-Q	2014-06-30	Filed 2014-08-01
10-Q	2014-03-31	Filed 2014-05-13
10-K	2013-12-31	Filed 2014-03-10
10-Q	2013-09-30	Filed 2013-11-14
10-Q	2013-06-30	Filed 2013-08-14
10-Q	2013-03-31	Filed 2013-05-14

Reports

8-K	2020-09-04	Regulation FD, Other Events, Exhibits
8-K	2020-08-27	Other Events
8-K	2020-08-06	Regulation FD, Exhibits
8-K	2020-08-05	Earnings, Regulation FD, Exhibits
8-K	2020-08-05	Regulation FD, Exhibits
8-K	2020-07-24	Enter Agreement, Off-BS Arrangement, Regulation FD, Exhibits
8-K	2020-07-23	Regulation FD, Exhibits
8-K	2020-07-08	Other Events, Exhibits
8-K	2020-07-01	Regulation FD, Exhibits
8-K	2020-06-22
8-K	2020-06-15
8-K	2020-06-02
8-K	2020-05-07
8-K	2020-05-06
8-K	2020-05-06
8-K	2020-04-21
8-K	2020-04-13
8-K	2020-04-08
8-K	2020-04-01
8-K	2020-03-30
8-K	2020-03-27
8-K	2020-03-24
8-K	2020-03-19
8-K	2020-03-19
8-K	2020-03-17
8-K	2020-02-27
8-K	2020-02-26
8-K	2020-02-26
8-K	2020-01-30
8-K	2020-01-13
8-K	2020-01-02
8-K	2019-12-20
8-K	2019-11-26
8-K	2019-11-07
8-K	2019-11-06
8-K	2019-11-06
8-K	2019-10-21
8-K	2019-10-04
8-K	2019-10-01
8-K	2019-09-24
8-K	2019-09-04
8-K	2019-09-04
8-K	2019-08-08
8-K	2019-08-08
8-K	2019-08-08
8-K	2019-07-29
8-K	2019-07-23
8-K	2019-07-01
8-K	2019-06-25
8-K	2019-06-21
8-K	2019-05-30
8-K	2019-05-30
8-K	2019-05-08
8-K	2019-05-08
8-K	2019-05-08
8-K	2019-05-06
8-K	2019-04-25
8-K	2019-04-10
8-K	2019-04-01
8-K	2019-03-21
8-K	2019-03-18
8-K	2019-03-14
8-K	2019-03-06
8-K	2019-03-06
8-K	2019-03-06
8-K	2019-02-11
8-K	2019-01-07
8-K	2019-01-02
8-K	2018-12-20
8-K	2018-11-14
8-K	2018-11-06
8-K	2018-11-06
8-K	2018-11-06
8-K	2018-10-24
8-K	2018-10-17
8-K	2018-10-09
8-K	2018-10-01
8-K	2018-10-01
8-K	2018-09-25
8-K	2018-09-18
8-K	2018-08-09
8-K	2018-08-09
8-K	2018-08-09
8-K	2018-08-01
8-K	2018-07-24
8-K	2018-07-23
8-K	2018-07-19
8-K	2018-07-19
8-K	2018-07-13
8-K	2018-07-03
8-K	2018-06-29
8-K	2018-06-29
8-K	2018-06-05
8-K	2018-05-31
8-K	2018-05-22
8-K	2018-04-30
8-K	2018-04-26
8-K	2018-04-03
8-K	2018-03-19
8-K	2018-02-15
8-K	2015-09-24
8-K	2015-08-06
8-K	2015-07-30
8-K	2015-06-18
8-K	2015-06-16
8-K	2015-05-14
8-K	2015-05-14
8-K	2015-04-29
8-K	2015-04-22
8-K	2015-04-15
8-K	2015-03-11
8-K	2015-02-23
8-K	2015-02-11
8-K	2015-02-02
8-K	2015-01-22
8-K	2014-12-31

American Finance Trust Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Document

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020



	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission file number: 001-38597

American Finance Trust, Inc.

(Exact name of registrant as specified in its charter)



Maryland										90-0929989
(State or other jurisdiction of incorporation or organization)										(I.R.S. Employer Identification No.)

650 Fifth Ave., 30^th Floor, New York, NY 10019

____________________________________________________________________________ ___________________________________________________________________________

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (212) 415-6500



Securities registered pursuant to section 12(b) of the Act:
Title of each class	Trading Symbols	Name of each exchange on which registered
Class A Common Stock, $0.01 par value	AFIN	The Nasdaq Global Select Market
7.50% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value	AFINP	The Nasdaq Global Select Market
Preferred Stock Purchase Rights		The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 3, 2020, the registrant had 108,527,734 shares of common stock outstanding.

AMERICAN FINANCE TRUST, INC.

TABLE OF CONTENTS

FORM 10-Q



	Page
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 (Unaudited)	3
Consolidated Statements of Operations and Comprehensive (Loss) Income for the Three and Six Months Ended June 30, 2020 and 2019 (Unaudited)	4
Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2020 (Unaudited)	5
Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2019 (Unaudited)	6
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019 (Unaudited)	7
Notes to Consolidated Financial Statements (Unaudited)	9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.	42

Item 3. Quantitative and Qualitative Disclosures About Market Risk.	68

Item 4. Controls and Procedures.	69

PART II - OTHER INFORMATION	70

Item 1. Legal Proceedings.	70

Item 1A. Risk Factors.	71

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	74

Item 3. Defaults Upon Senior Securities.	74

Item 4. Mine Safety Disclosures.	74

Item 5. Other Information.	75

Item 6. Exhibits.	75

Signatures	76

Table of Contents

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)



	June 30, 2020			December 31, 2019
ASSETS	(Unaudited)
Real estate investments, at cost:
Land	$	705,115		$	685,889
Buildings, fixtures and improvements	2,739,863			2,681,485
Acquired intangible lease assets	445,771			448,175
Total real estate investments, at cost	3,890,749			3,815,549
Less: accumulated depreciation and amortization	(582,668		)	(529,052		)
Total real estate investments, net	3,308,081			3,286,497
Cash and cash equivalents	136,699			81,898
Restricted cash	20,132			17,942
Deposits for real estate investments	2,290			85
Deferred costs, net	16,096			17,467
Straight-line rent receivable	54,655			46,976
Operating lease right-of-use assets	18,718			18,959
Prepaid expenses and other assets (including $457 and $503 due from related parties as of June 30, 2020 and December 31, 2019, respectively)	39,846			19,188
Assets held for sale	—			1,176
Total assets	$	3,596,517		$	3,490,188

LIABILITIES AND EQUITY
Mortgage notes payable, net	$	1,305,104		$	1,310,943
Credit facility	503,147			333,147
Below market lease liabilities, net	79,549			84,041
Accounts payable and accrued expenses (including $599 and $1,153 due to related parties as of June 30, 2020 and December 31, 2019, respectively)	32,333			26,817
Operating lease liabilities	19,307			19,318
Deferred rent and other liabilities	9,431			10,392
Dividends payable	3,617			3,300
Total liabilities	1,952,488			1,787,958

7.50% Series A cumulative redeemable perpetual preferred stock, $0.01 par value, liquidation preference $25.00 per share, 8,796,000 shares authorized, 7,719,689 and 6,917,230 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	77			69
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 108,527,734 and 108,475,266 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	1,085			1,085
Additional paid-in capital	2,635,166			2,615,089
Distributions in excess of accumulated earnings	(1,016,977		)	(932,912		)
Total stockholders’ equity	1,619,351			1,683,331
Non-controlling interests	24,678			18,899
Total equity	1,644,029			1,702,230
Total liabilities and equity	$	3,596,517		$	3,490,188

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

(In thousands, except per share data)

(Unaudited)



	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Revenue from tenants	$	74,934		$	79,109		$	149,498		$	150,650

Operating expenses:
Asset management fees to related party	6,918			6,335			13,823			12,373
Property operating expense	12,541			13,137			24,823			25,973
Impairment of real estate investments	11,502			4			11,502			827
Acquisition, transaction and other costs	721			1,892			1,173			2,746
Equity-based compensation	3,247			3,268			6,458			6,289
General and administrative	6,864			6,441			12,192			12,502
Depreciation and amortization	35,443			30,924			69,778			63,010
Goodwill impairment	—			1,605			—			1,605
Total operating expenses	77,236			63,606			139,749			125,325
Operating income before gain on sale of real estate investments	(2,302		)	15,503			9,749			25,325
Gain on sale of real estate investments	2,838			14,365			4,278			17,238
Operating income	536			29,868			14,027			42,563
Other (expense) income:
Interest expense	(18,801		)	(21,995		)	(37,907		)	(40,435		)
Other income	61			667			133			3,212
Total other expense, net	(18,740		)	(21,328		)	(37,774		)	(37,223		)
Net (loss) income	(18,204		)	8,540			(23,747		)	5,340
Net loss (income) attributable to non-controlling interests	20			(14		)	29			(11		)
Preferred stock dividends	(3,619		)	(642		)	(7,238		)	(672		)
Net (loss) income attributable to common stockholders	(21,803		)	7,884			(30,956		)	4,657

Other comprehensive loss:
Change in unrealized loss on derivatives	—			1,004			—			531
Comprehensive (loss) income attributable to common stockholders	$	(21,803	)	$	8,888		$	(30,956	)	$	5,188

Weighted-average shares outstanding — Basic	108,386,013			106,075,741			108,375,048			106,076,162
Net (loss) income per share attributable to common stockholders — Basic	$	(0.20	)	$	0.07		$	(0.29	)	$	0.04
Weighted-average shares outstanding — Diluted	108,386,013			106,394,277			108,375,048			106,389,912
Net (loss) income per share attributable to common stockholders — Diluted	$	(0.20	)	$	0.07		$	(0.29	)	$	0.04

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except share data)

(Unaudited)



	Six Months Ended June 30, 2020
	Preferred Stock			Common Stock
	Number of Shares	Par Value		Number of Shares	Par Value		Additional Paid-in Capital			Accumulated Other Comprehensive income (loss)		Distributions in excess of accumulated earnings			Total Stockholders’ Equity			Non-controlling Interests			Total Equity
Balance, December 31, 2019	6,917,230	$	69	108,475,266	$	1,085	$	2,615,089		$	—	$	(932,912	)	$	1,683,331		$	18,899		$	1,702,230
Issuance of Common Stock, net	—	—		—	—		(90		)	—		—			(90		)	—			(90		)
Issuance of Preferred Stock, net	802,459	8		—	—		19,601			—		—			19,609			—			19,609
Equity-based compensation	—	—		52,468	—		528			—		—			528			5,930			6,458
Dividends declared on Common Stock, $0.25 per share	—	—		—	—		—			—		(52,889		)	(52,889		)	—			(52,889		)
Dividends declared on Preferred Stock, $0.38 per share	—	—		—	—		—			—		(7,238		)	(7,238		)	—			(7,238		)
Distributions to non-controlling interest holders	—	—		—	—		—			—		(220		)	(220		)	(84		)	(304		)
Net loss	—	—		—	—		—			—		(23,718		)	(23,718		)	(29		)	(23,747		)
Rebalancing of ownership percentage	—	—		—	—		38			—		—			38			(38		)	—
Balance, June 30, 2020	7,719,689	$	77	108,527,734	$	1,085	$	2,635,166		$	—	$	(1,016,977	)	$	1,619,351		$	24,678		$	1,644,029



	Three Months Ended June 30, 2020
	Preferred Stock			Common Stock
	Number of Shares	Par Value		Number of Shares	Par Value		Additional Paid-in Capital			Accumulated Other Comprehensive income (loss)		Distributions in excess of accumulated earnings			Total Stockholders’ Equity			Non-controlling Interests			Total Equity
Balance, March 31, 2020	7,719,689	$	77	108,475,266	$	1,085	$	2,634,953		$	—	$	(972,019	)	$	1,664,096		$	21,806		$	1,685,902
Issuance of Common Stock, net	—	—		—	—		(42		)	—		—			(42		)	—			(42		)
Issuance of Preferred Stock, net	—	—		—	—		(64		)	—		—			(64		)	—			(64		)
Equity-based compensation	—	—		52,468	—		281			—		—			281			2,966			3,247
Dividends declared on Common Stock, $0.21 per share	—	—		—	—		—			—		(23,058		)	(23,058		)	—			(23,058		)
Dividends declared on Preferred Stock, $0.38 per share	—	—		—	—		—			—		(3,619		)	(3,619		)	—			(3,619		)
Distributions to non-controlling interest holders	—	—		—	—		—			—		(97		)	(97		)	(36		)	(133		)
Net loss	—	—		—	—		—			—		(18,184		)	(18,184		)	(20		)	(18,204		)
Rebalancing of ownership percentage	—	—		—	—		38			—		—			38			(38		)	—
Balance, June 30, 2020	7,719,689	$	77	108,527,734	$	1,085	$	2,635,166		$	—	$	(1,016,977	)	$	1,619,351		$	24,678		$	1,644,029

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

AMERICAN FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except share data)

(Unaudited)



	Six Months Ended June 30, 2019
	Preferred Stock			Common Stock
	Number of Shares	Par Value		Number of Shares		Par Value			Additional Paid-in Capital			Accumulated Other Comprehensive income (loss)			Distributions in excess of accumulated earnings			Total Stockholders' Equity			Non-controlling Interests			Total Equity
Balance, December 31, 2018	—	$	—	106,230,901		$	1,063		$	2,412,915		$	(531	)	$	(812,047	)	$	1,601,400		$	8,335		$	1,609,735
Impact of adoption of new accounting pronouncement for leases (Note 2)	—	—		—		—			—			—			(170		)	(170		)	—			(170		)
Issuance of Preferred Stock, net	1,652,600	17		—		—			39,757			—			—			39,774			—			39,774
Common stock repurchases	—	—		(19,870	)	(1		)	(273		)	—			—			(274		)	—			(274		)
Equity-based compensation	—	—		34,588		1			572			—			—			573			5,717			6,290
Dividends declared on Common Stock, $0.28 per share	—	—		—		—			—			—			(58,420		)	(58,420		)	—			(58,420		)
Dividends declared on Preferred Stock, $0.38 per share	—	—		—		—			—			—			(672		)	(672		)	—			(672		)
Distributions to non-controlling interest holders	—	—		—		—			—			—			(246		)	(246		)	(38		)	(284		)
Net income	—	—		—		—			—			—			5,329			5,329			11			5,340
Other comprehensive loss	—	—		—		—			—			531			—			531			—			531
Rebalancing of ownership percentage	—	—		—		—			843			—			—			843			(843		)	—
Balance, June 30, 2019	1,652,600	$	17	106,245,619		$	1,063		$	2,453,814		$	—

EX-31.1	ex311afin6302020.htm
EX-31.2	ex312afin6302020.htm
EX-32	ex32afin6302020.htm

AFIN 10Q Quarterly Report

American Finance Trust Earnings 2020-06-30