American Finance Trust, Inc. (AFIN) Reports Q1 Loss of $0.03, Revenues Beat

American Finance Trust, Inc. (NASDAQ: AFIN) reported Q1 EPS of ($0.03), versus $0.15 reported last year. Revenue for the quarter came in at $71.54 million versus the consensus estimate of $57.29 million.

First Quarter 2019 Highlights

• Revenues were $71.5 million for the quarter ended March 31, 2019 compared to $70.1 million for the quarter ended March 31, 2018
• Net loss attributable to common stockholders was $3.2 million for the quarter ended March 31, 2019, or $0.03 per share, compared to net income of $15.4 million, or $0.15 per diluted share, for the quarter ended March 31, 2018
• Funds from Operations (\"FFO\") was $26.8 million, or $0.25 per share, for the quarter ended March 31, 2019 compared to $27.9 million, or $0.26 per share, for the quarter ended December 31, 2018
• Adjusted Funds from Operations (\"AFFO\") was up 6.8% to $26.3 million, or $0.25 on a per share basis, for the quarter ended March 31, 2019 compared to $24.6 million, or $0.23 on a per share basis, for the quarter ended December 31, 2018
• Cash NOI grew to $55.7 million in the quarter compared to $52.9 million for the quarter ended December 31, 2018
• Closed on the acquisition of 64 properties for an aggregate contract purchase price1 of $113.3 million at a weighted average capitalization rate2 of 8.4%
• Total executed occupancy3 of 95% with the inclusion of seven executed leases totaling 234,000 square feet, including 224,000 square feet of vacant or dark space and six leases with anchor tenants8
• Strong current acquisition pipeline includes an additional 34 properties for an aggregate contract purchase price4 of $74.8 million, of which 100% are occupied by service retail tenants5
• Portfolio is 94.0% leased with an 8.8 year weighted-average lease term6 remaining at quarter end
• Annual rent escalators7 averaging 1.3% per year in 82.1% of leases provide contractually embedded rent growth
• 73.9% of tenants in single-tenant portfolio and 45.0% of anchor tenants in multi-tenant portfolio rated as investment grade or implied investment grade9
• Largest tenant, SunTrust, announced a $66.0 billion proposed merger with BB&T, creating the 6th largest U.S. bank and potentially improving the credit associated with the corporate guarantee on leases from Baa1 to A210

CEO Comments

Michael Weil, Chief Executive Officer, commented, "We are off to a strong start in 2019 as the results continue to reflect our ability to execute our business plan. We steadily executed on our accretive acquisition strategy, opportunistically sold assets, increased Cash NOI, improved AFFO per share from $0.23 to $0.25 and accessed capital markets for the first time since the listing by completing a preferred stock offering. We remain focused on acquiring service retail properties as well as driving occupancy at our multi-tenant properties. These efforts are reflected in our acquisitions in the first quarter which exceeded $113 million, of which over 97%, or $110 million, were service retail properties. We remain focused on portfolio occupancy, with current occupancy of 94% at the end of the first quarter through continued leasing efforts in the multi-tenant portfolio. The acquisition and leasing efforts of our team result in a portfolio that is superior to its peers and have driven AFFO up 7% quarter over quarter to $26 million."

For earnings history and earnings-related data on American Finance Trust, Inc. (AFIN) click here.

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