Spirit Realty Capital (SRC) Misses Q2 EPS by 25c

Spirit Realty Capital (NYSE: SRC) reported Q2 EPS of ($0.03), $0.25 worse than the analyst estimate of $0.22.

• Collected 75% of Second Quarter 2020 Base Rent and 85% of July 2020 Base Rent
• Entered Forward Contract to Issue 9.2 Million Shares at $37.35 per Share
• Raised $400 Million Under Unsecured Term Loan Facility
• Generated Net Loss of $(0.03) per Share, FFO of $0.68 per Share and AFFO of $0.71 per Share

SECOND QUARTER 2020 HIGHLIGHTS

• Entered into an underwritten public offering of 9.2 million shares of common stock, all of which were borrowed and sold by forward purchasers at a public offering price of $37.35 per share. As of June 30, 2020, none of the forward contracts had been settled by Spirit.
• Collected 75.0% of second quarter 2020 Base Rent of $117.4 million and 84.8% of July 2020 Base Rent of $39.3 million as of July 27, 2020.
• Raised $400 million under a new unsecured term loan facility maturing on April 2, 2022, which bears interest at LIBOR plus 150 basis points.
• Generated net loss of $0.03 vs net income of $0.49 per diluted share, FFO of $0.68 vs $0.66 per share and AFFO of $0.71 vs $0.86 per share, compared to the same quarter in 2019.
• Invested $13.0 million for the acquisition of two properties with an initial weighted average cash yield of 7.51% and an economic yield of 8.35%.
• Generated $3.0 million in gross proceeds from the disposition of three vacant properties.
• Adjusted Debt to Annualized Adjusted EBITDAre of 5.7x or 4.9x assuming the settlement of the 9.2 million open forward equity contracts.
• Had Corporate Liquidity of $1.2 billion as of July 28, 2020, comprised of availability under the 2019 Credit Facility, cash and cash equivalents and available proceeds from unsettled forward equity contracts.

CEO COMMENTS

“The second quarter presented an extraordinary challenge for our team, and I am proud of how they performed. We have worked through the vast majority of all outstanding rent deferral requests and are actively engaged in resolving the few remaining requests, providing a path to return to more normal rent collections. Our balance sheet has been strengthened through strategic debt and equity raises, providing liquidity to be opportunistic and on the offensive. Most notably, we took the lead in providing timely and granular disclosure about our rent collections and portfolio health to provide investors the insight they needed during a turbulent time. As I have said before, the Spirit team has been battle tested and I believe we proved that once again,” stated Jackson Hsieh, President and Chief Executive Officer.

For earnings history and earnings-related data on Spirit Realty Capital (SRC) click here.

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