American Finance Trust, Inc. (AFIN) Reports Q4 Loss of $0.08, Revenues Miss

American Finance Trust, Inc. (NASDAQ: AFIN) reported Q4 EPS of ($0.08), versus ($0.04) reported last year. Revenue for the quarter came in at $77.2 million versus the consensus estimate of $79.51 million.

Fourth Quarter 2020 and Subsequent Events Highlights

• Revenue increased 1% to $77.2 million from $76.2 million in the fourth quarter 2019
• Net loss attributable to common stockholders was $8.6 million, or $0.08 per diluted common share, compared to a net loss of $4.8 million, or $0.04 per diluted common share for the fourth quarter 2019
• Cash Net Operating income ("Cash NOI") grew by 2% to $58.7 million as compared to $57.7 million for the fourth quarter 2019
• Funds from Operations ("FFO") grew by 14% to $25.5 million, or $0.23 per diluted share, compared to $22.4 million, or $0.21 per diluted share, for the fourth quarter 2019
• Adjusted Funds from Operations ("AFFO") increased 3% to $26.1 million, or $0.24 per diluted share, from $25.2 million, or $0.24 per diluted share, in the prior year fourth quarter and increased 2.4% from $25.5 million, or $0.23 per share in the third quarter 2020
• Raised gross proceeds of $88.4 million from a public offering of 7.375% Series C Cumulative Redeemable Perpetual Preferred Stock
• Conservative Net Leverage1 of 40.2% and ample Liquidity2 of $228.9 million at year end
• Closed on the acquisition of 35 properties for an aggregate contract purchase price3 of $61.3 million at a weighted average capitalization rate of 9.2%4
• Collected over 96% of cash rent due in fourth quarter 20205, including 99% in single tenant portfolio, 88% in the multi-tenant portfolio, and 99% among the top 20 tenants6
• Portfolio occupancy of 93.9%, including 99.4% in the single tenant portfolio
• Executed occupancy7 of 88.2% in multi-tenant portfolio, exceeding pre-COVID levels, giving effect to approximately 215,000 square feet, net, of pipeline leases8, expected to add $1.6 million of annual rent
• Subsequent to quarter end, January 2021 cash rent collection of 97% as of February 15, 2021 including 99% in the single tenant portfolio and 92% in the multi-tenant portfolio

CEO Comments

"We reported strong fourth quarter and full year results that reflect substantial momentum in acquisitions, leasing, asset management, and reducing our cost of capital" said Michael Weil, CEO of AFIN. "Our high-credit, necessity focused retail portfolio has proven its value as we navigated the challenges presented by the pandemic. We delivered on the targets we set last February, including growing our portfolio, improving dividend coverage, and de-risking our balance sheet by successfully refinancing near-term debt maturities at excellent rates that reduced interest expense by approximately $1 million over last quarter. We produced consecutive quarters of rent collection growth and executed lease extensions that added $44 million in net additional rent. We believe we are well positioned to continue to pursue accretive real estate, capital market and financing transactions that will grow our portfolio and further strengthen our balance sheet while continuing to execute our proven investment strategy."

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

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