Spirit Realty Capital (SRC) Reports Prelim. Estimated 1Q EPS Results
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Spirit Realty Capital, Inc. (NYSE: SRC) today reported its preliminary financial and operating results for the first quarter ended March 31, 2020.
PRELIMINARY FIRST QUARTER 2020 HIGHLIGHTS
- Invested $213.4 million, including $205.9 million for the acquisition of 27 properties with an initial weighted average cash yield of 6.47% and an economic yield of 7.41%.
- Estimated net loss of $(0.17) - $(0.19) vs net income of $0.48 per diluted share, FFO of $0.71 - $0.73 vs $0.90 per share and AFFO of $0.77 - $0.79 vs $0.86 per share, compared to the same quarter in 2019.
- Issued 0.4 million shares of common stock, generating gross proceeds of $17.9 million and net proceeds of $17.6 million, under the Company’s At-the-Market Program.
- Generated $15.7 million in gross proceeds from the sale of seven properties, of which three were vacant.
- Maintained strong operational performance, with occupancy of 99.4%, Lost Rent of 0.6% and Property Cost Leakage of 2.4%.
- Adjusted Debt to Annualized Adjusted EBITDAre of 5.2x – 5.4x.
- Had corporate liquidity of $831.3 million as of April 10, 2020, comprised of availability under the 2019 Credit Facility and cash and cash equivalents.
CEO COMMENTS
“While we are proud of our strong first quarter results, we recognize that investors are most focused on the here and now,” said Jackson Hsieh, President and Chief Executive Officer. “With that in mind, we look forward to providing an update on April, our proactive tenant communications and our tenant health. The work we have done at Spirit over the past two years has meaningfully transformed our portfolio and balance sheet and vastly improved our ability to understand and process data on a real-time basis. We look forward to discussing how we are positioning our company and using our tools and insights to navigate the COVID-19 pandemic.”
GUIDANCE
Given the circumstances, we are not in a position to provide guidance at this time but hope to give more clarity at our regularly scheduled quarterly call.
SRC BUSINESS UPDATE PRESENTATION
A presentation titled, “SRC Business Update, April 2020”, along with this press release, have been posted to the investor relations page of the Company's website at www.spiritrealty.com.
SPIRIT REALTY CAPITAL, INC. Reconciliation of Preliminary Non-GAAP Financial Measures (In Thousands, Except Share and Per Share Data) (Unaudited) | ||||||
FFO and AFFO | ||||||
Three Months Ended March 31, 2020 | Range | |||||
Low | High | |||||
Net loss attributable to common stockholders | $ | (19,461 | ) | $ | (17,409 | ) |
Portfolio depreciation and amortization |
| 52,091 |
|
| 52,091 |
|
Portfolio impairments |
| 40,774 |
|
| 40,774 |
|
Gain on disposition of assets |
| (388 | ) |
| (388 | ) |
FFO attributable to common stockholders |
| 73,016 |
|
| 75,068 |
|
Adjustments |
| 6,481 |
|
| 6,481 |
|
AFFO attributable to common stockholders | $ | 79,497 |
| $ | 81,549 |
|
Dividends declared to common stockholders | $ | 64,338 |
| $ | 64,338 |
|
Dividends declared as a percent of AFFO |
| 81 | % |
| 79 | % |
Net loss per share of common stock – Basic (1) | $ | (0.19 | ) | $ | (0.17 | ) |
Net loss per share of common stock – Diluted (1) | $ | (0.19 | ) | $ | (0.17 | ) |
FFO per share of common stock – Diluted (1) | $ | 0.71 |
| $ | 0.73 |
|
AFFO per Share of common stock – Diluted (1) | $ | 0.77 |
| $ | 0.79 |
|
Weighted average shares of common stock outstanding – Basic |
| 102,230,147 |
|
| 102,230,147 |
|
Weighted average shares of common stock outstanding – Diluted | 102,607,596 | 102,607,596 | ||||
(1) | Dividends paid and undistributed earnings allocated to unvested restricted stockholders totaling $0.2 million for the three months ended March 31, 2020 are deducted from FFO and AFFO for the computation of the per share amounts. |
SPIRIT REALTY CAPITAL, INC. Reconciliation of Preliminary Non-GAAP Financial Measures (In Thousands, Except Share and Per Share Data) (Unaudited) | |||
Adjusted Debt, EBITDAre and Adjusted EBITDAre | |||
Adjusted Debt | March 31, 2020 | ||
Total debt, net | $ | 2,537,580 |
|
Unamortized debt discount, net |
| 8,047 |
|
Unamortized deferred financing costs |
| 16,693 |
|
Cash and cash equivalents |
| (216,692 | ) |
Restricted cash balances held for the benefit of lenders |
| (11,705 | ) |
Adjusted Debt |
| 2,333,923 |
|
Preferred Stock at liquidation value |
| 172,500 |
|
Adjusted Debt + Preferred Stock | $ | 2,506,423 |
|
Three Months Ended March 31, 2020 | Range | ||||||
Annualized Adjusted EBITDAre | Low | High | |||||
Net loss | $ | (16,873 | ) | $ | (14,821 | ) | |
Interest |
| 25,359 |
|
| 25,359 |
| |
Depreciation and amortization |
| 52,236 |
|
| 52,236 |
| |
Income tax expense |
| 141 |
|
| 141 |
| |
Gain on disposition of assets |
| (388 | ) |
| (388 | ) | |
Portfolio impairments |
| 40,774 |
|
| 40,774 |
| |
EBITDAre |
| 101,249 |
|
| 103,301 |
| |
Adjustments |
| 6,050 |
|
| 7,911 |
| |
Adjusted EBITDAre |
| 107,299 |
|
| 111,212 |
| |
Annualized Adjusted EBITDAre | $ | 429,196 |
| $ | 444,848 |
| |
Adjusted Debt / Annualized Adjusted EBITDAre | 5.4 x |
| 5.2 x |
| |||
Adjusted Debt + Preferred / Annualized Adjusted EBITDAre | 5.8 x |
| 5.6 x |
| |||
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