American Finance Trust, Inc. (AFIN) Misses Q1 EPS by 34c

American Finance Trust, Inc. (NASDAQ: AFIN) reported Q1 EPS of ($0.08), $0.34 worse than the analyst estimate of $0.26. Revenue for the quarter came in at $74.6 million versus the consensus estimate of $75.45 million.

• Revenue increased 4% to $74.6 million as compared to $71.5 million for the first quarter 2019
• Net loss attributable to common stockholders was $9.2 million, or $0.08 per diluted share, compared to a net loss of $3.2 million, or $0.03 per diluted share, for the first quarter 2019
• Cash net operating income (\"NOI\") grew by 6% to $59.0 million compared to $55.7 million for the first quarter 2019
• Funds from Operations (\"FFO\") was $23.7 million, or $0.22 per diluted share compared to $26.8 million, or $0.25 per diluted share, for the first quarter 2019
• Adjusted Funds from Operations (\"AFFO\") was $25.2 million, or $0.23 per diluted share, compared to $26.3 million or $0.25 per diluted share in the prior year first quarter
• Announced a dividend change to be paid beginning in April for the second quarter to $0.21 per share per quarter, or $0.85 per share on an annualized basis, expected to strengthen AFIN\'s cash flow by $6.8 million per quarter
• Closed on the acquisition of 31 properties for an aggregate contract purchase price of $90.0 million2 at a 7.4% weighted average cash capitalization rate3 and a weighted-average capitalization rate4 of 8.4%
• Total multi-tenant occupancy increased to 87.3% from 85.0% year-over-year
• High quality portfolio with 66% of tenants in single-tenant portfolio and 44% of the top 10 tenants5 in multi-tenant portfolio rated as investment grade or implied investment grade6
• Annual rent escalators7 averaging 1.3% per year in 80.9% of leases provide contractually embedded rent growth
• Ample Liquidity8 of $215.0 million after borrowing an additional $153 million under credit facilities in March to enhance financial flexibility in response to COVID-19
• Collected over 79% of cash rent due in April, including 92% in single tenant portfolio, with rent deferral amendments approved for 4% of the unpaid cash rent, while 16% of lease deferrals are in negotiation (see additional details in April Rents section below)

CEO Comments

Michael Weil, Chief Executive Officer, commented, "Our first quarter results highlight the strong momentum we had coming into this year. Going forward, we continue to have a high degree of confidence in our long-term outlook, reflecting the resilience and capabilities of our team and the financial strength of our portfolio. I am proud of the focused effort and proactive communications we took in early March to create direct dialog with our tenants in response to the unprecedented COVID-19 pandemic. This led to tremendous success, as we collected over 79% of the rents due in April during the month, including 97% of the rent payable from the top 20 tenants in our portfolio."

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

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