2 0 1 8 A N N U A L R E P O R T
Disciplined. Transparent. Consistent.
VEREIT is a full-service real estate operating company which owns and manages
one of the largest portfolios of single-tenant commercial properties in the U.S.
www.VEREIT.com
L E T T E R F R O M T H E C E O
Dear Stockholder,
I am happy to report that 2018 was a successful year for VEREIT
as we skillfully achieved core components of the business plan
created in 2015. This plan established a set of principles which
has guided our business model as a full service real estate
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2014 and our turnaround plan is on pace. To achieve this, we’ve
imperative elements of our business:
focused on three
strengthening and diversifying our portfolio, creating an invest-
ment-grade balance sheet and enhancing the Company’s
leadership. Furthermore, we are very pleased with how the
capital markets have funded us since we adopted our business
plan. We have had total capital activity of $11.0 billion since
2015 which has allowed us to achieve our accomplishments.
Strengthened Portfolio
Our portfolio of approximately 4,000 properties has always
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has been at the core of our portfolio management strategy for
many years, and it’s a central attribute in VEREIT’s portfolio
strength. We’ve continued to cull our portfolio through disposi-
tions and have added targeted acquisitions to meet our proper-
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2015, we have sold over $3.7 billion in properties and mortgage
related investments at net gains and acquired over $1.4 billion,
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(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:74)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:87)(cid:72)(cid:81)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:86)(cid:75)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:22)(cid:19)(cid:16)(cid:23)(cid:19)(cid:8)(cid:3)
of VEREIT’s portfolio. Back in 2015, we had one tenant, Red
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$1.0 billion of Red Lobster properties and have reduced
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grade tenants have remained healthy, making up more than
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mission-critical components for tenants and are strategically
located across the country.
Balance Sheet Health
Having a very strong balance sheet has been a priority for
VEREIT – we achieved investment grade rating earlier than
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from $10.4 billion to $6.1 billion and net debt to normalized
EBITDA from 7.5x to 5.9x. During 2018, we entered into a new
$2.9 billion credit facility replacing our $2.3 billion facility. The
new credit facility was comprised of a $2.0 billion unsecured
revolving credit line and a $900.0 million unsecured term loan –
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repaid $597.5 million of principal outstanding related to the
2018 convertible notes that came due in August, and issued
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ty schedule. VEREIT will continue to monitor its debt balances
and unencumber our assets to ensure VEREIT’s balance sheet
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ment payments we have been making. VEREIT has now settled
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of VEREIT’s outstanding shares of common stock held at the
relevant time for a total of $233.2 million. Litigation remains our
last major legacy issue.
Consistent Leadership
These achievements were facilitated by VEREIT’s strong leader-
ship team, which has remained consistent since 2015. Made up
of industry experts, the executive management team is commit-
ted to serving tenants, stakeholders and employees. Their
commitment to VEREIT’s business model has allowed the
Company to achieve our established goals. VEREIT also remains
committed to having strong corporate governance through the
reconstitution of its Board of Directors since 2014 and imple-
mentation of best-in-class corporate governance policies. The
Company has opted out of Maryland anti-takeover statutes,
implemented majority voting
for uncontested director
elections, initiated stockholder rights plan limits, implemented
proxy access and adopted a clawback policy for the potential
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2018, VEREIT was selected as one of Arizona’s Most Admired
Companies for the second year in a row. The organization was
also named one of Phoenix’s Best Places to Work and numer-
ous employees were recognized with industry awards in 2018.
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success and has honored the diligent work of our team.
Outlook
We have been able to navigate an evolving market through our
(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)
2019. Looking beyond 2019, we believe we will have a healthy
portfolio, well organized operating platform, and a solid balance
sheet.
On behalf of everyone at VEREIT, I would like to thank each of
our stockholders for their ongoing trust. We’ve made great
strides in achieving our established business plan and will
continue to focus on achieving the goals we have set for the
Company.
Glenn J. Rufrano(cid:3)(cid:95)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:605)(cid:70)(cid:72)(cid:85)(cid:3)(cid:95)(cid:3)(cid:57)(cid:40)(cid:53)(cid:40)(cid:918)(cid:55)(cid:15)(cid:3)(cid:918)(cid:81)(cid:70)(cid:17)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2018
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to __________
Commission file numbers: 001-35263 and 333-197780
VEREIT, Inc.
VEREIT Operating Partnership, L.P.
(Exact name of registrant as specified in its charter)
Maryland (VEREIT, Inc.)
Delaware (VEREIT Operating Partnership, L.P.)
(State or other jurisdiction of incorporation or organization)
2325 E. Camelback Road, Suite 1100, Phoenix, AZ
(Address of principal executive offices)
(800) 606-3610
45-2482685
45-1255683
(I.R.S. Employer Identification No.)
85016
(Zip Code)
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class:
Name of each exchange on which registered:
Common Stock, $0.01 par value per share (VEREIT, Inc.)
6.70% Series F Cumulative Redeemable Preferred Stock, $0.01 par value per share (VEREIT, Inc.)
New York Stock Exchange
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Securities Exchange Act of 1934: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act of 1933.
VEREIT, Inc. Yes
VEREIT Operating Partnership, L.P. Yes
No
No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
VEREIT, Inc. Yes
VEREIT Operating Partnership, L.P. Yes
No
No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. VEREIT, Inc. Yes
VEREIT Operating Partnership, L.P. Yes
No
No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). VEREIT, Inc. Yes
VEREIT Operating Partnership, L.P. Yes
No
No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best
of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form
10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company”
in Rule 12b-2 of the Exchange Act.
VEREIT, Inc.
VEREIT Operating Partnership, L.P.
Large accelerated filer
Smaller reporting company
Large accelerated filer
Smaller reporting company
Accelerated filer
Emerging growth company
Accelerated filer
Emerging growth company
Non-accelerated filer
Non-accelerated filer
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. VEREIT, Inc.
VEREIT Operating Partnership, L.P.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
VEREIT, Inc. Yes
VEREIT Operating Partnership, L.P. Yes
No
No
The aggregate market value of voting and non-voting common stock held by non-affiliates of VEREIT, Inc. as of June 29, 2018 was approximately $7.2 billion
based on the closing sale price for VEREIT, Inc.’s common stock on that day as reported by the New York Stock Exchange.
There were 967,784,153 shares of common stock of VEREIT, Inc. outstanding as of February 19, 2019.
There is no public trading market for the common units of VEREIT Operating Partnership, L.P. As a result, the aggregate market value of the common units held
by non-affiliates of VEREIT Operating Partnership, L.P. cannot be determined.
DOCUMENTS INCORPORATED BY REFERENCE
Certain portions of VEREIT, Inc.’s Definitive Proxy Statement for its 2019 Annual Meeting of Stockholders (the “Proxy Statement”) to be filed pursuant to Rule
14a-6 of the Securities Exchange Act of 1934, as amended, are incorporated by reference into this Annual Report on Form 10-K. Other than those portions of the
Proxy Statement specifically incorporated by reference pursuant to Items 10 through 14 of Part III hereof, no other portions of the Proxy Statement shall be deemed
so incorporated.
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EXPLANATORY NOTE
This report combines the Annual Reports on Form 10-K for the year ended December 31, 2018 of VEREIT, Inc., a Maryland
corporation, and VEREIT Operating Partnership, L.P., a Delaware limited partnership, of which VEREIT, Inc. is the sole general
partner. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “we,” “us,” “our,”
“VEREIT,” the “Company” or the “General Partner” mean VEREIT, Inc. together with its consolidated subsidiaries, including
VEREIT Operating Partnership, L.P., and all references to the “Operating Partnership” or “OP” mean VEREIT Operating
Partnership, L.P. together with its consolidated subsidiaries.
As the sole general partner of VEREIT Operating Partnership, L.P., VEREIT, Inc. has the full, exclusive and complete
responsibility for the Operating Partnership’s day-to-day management and control.
We believe combining the Annual Reports on Form 10-K of VEREIT, Inc. and VEREIT Operating Partnership, L.P. into this
single report results in the following benefits:
•
•
•
enhancing investors’ understanding of the Company and the Operating Partnership by enabling investors to view the
business as a whole in the same manner as management views and operates the business;
eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion
of the disclosure applies to both the Company and the Operating Partnership; and
creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.
There are a few differences between the Company and the Operating Partnership, which are reflected in the disclosure in this
report. We believe it is important to understand the differences between the Company and the Operating Partnership in the context
of how we operate as an interrelated consolidated company. VEREIT, Inc. is a real estate investment trust whose only material
asset is its ownership of partnership interests of the Operating Partnership. As a result, VEREIT, Inc. does not conduct business
itself, other than acting as the sole general partner of the Operating Partnership, issuing equity or debt from time to time and
guaranteeing certain unsecured debt of the Operating Partnership and certain of its subsidiaries. The Operating Partnership holds
substantially all of the assets of the Company and holds the ownership interests in the Company’s joint ventures. The Operating
Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for
net proceeds from public equity or debt issuances by VEREIT, Inc., which are generally contributed to the Operating Partnership
in exchange for partnership units, the Operating Partnership generates the capital required by the Company’s business through the
Operating Partnership’s operations, by the Operating Partnership’s direct or indirect incurrence of indebtedness or through the
issuance of partnership units. To help investors understand the significant differences between VEREIT, Inc. and the Operating
Partnership, there are separate sections in this report that separately discuss VEREIT, Inc. and the Operating Partnership, including
the consolidated financial statements and certain notes to the consolidated financial statements as well as separate disclosures in
Item 9A. Controls and Procedures and Exhibit 31 and Exhibit 32 certifications. As general partner with control of the Operating
Partnership, VEREIT, Inc. consolidates the Operating Partnership for financial reporting purposes. Therefore, the assets and
liabilities of VEREIT, Inc. and VEREIT Operating Partnership, L.P. are the same on their respective consolidated financial
statements. The separate discussions of VEREIT, Inc. and VEREIT Operating Partnership, L.P. in this report should be read in
conjunction with each other to understand the results of the Company on a consolidated basis and how management operates the
Company.
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VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
For the fiscal year ended December 31, 2018
Forward-Looking Statements
PART I
Item 1. Business
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 2. Properties
Item 3. Legal Proceedings
Item 4. Mine Safety Disclosures
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities
Item 6. Selected Financial Data
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 8. Financial Statements and Supplementary Data
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A. Controls and Procedures
Item 9B. Other Information
PART III
Item 10. Directors, Executive Officers and Corporate Governance
Item 11. Executive Compensation
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14. Principal Accounting Fees and Services
PART IV
Item 15. Exhibits and Financial Statement Schedules
Item 16. Form 10-K Summary
Signatures
Index to Consolidated Financial Statements
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F-1
1
Forward-Looking Statements
This Annual Report on Form 10-K includes “forward-looking statements” (within the meaning of the federal securities laws,
Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act of 1934, as
amended (the “Exchange Act”)) that reflect our expectations and projections about our future results, performance, prospects and
opportunities. We have attempted to identify these forward-looking statements by the use of words such as “may,” “will,” “seek,”
“expects,” “anticipates,” “believes,” “targets,” “intends,” “should,” “estimates,” “could,” “continue,” “assume,” “projects,” “plans”
or similar expressions. These forward-looking statements are based on information currently available to us and are subject to a
number of known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements
to be materially different from any future results, performance or achievements expressed or implied by these forward-looking
statements. These factors include, among other things, those discussed below. We intend for all such forward-looking statements
to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and
Section 21E of the Exchange Act, as applicable by law. We do not undertake publicly to update or revise any forward-looking
statements, whether as a result of changes in underlying assumptions or new information, future events or otherwise, except as
may be required to satisfy our obligations under federal securities law.
The following are some, but not all, of the assumptions, risks, uncertainties and other factors that could cause our actual results
to differ materially from those presented in our forward-looking statements:
• We may be unable to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all.
• We are subject to risks associated with tenant, geographic and industry concentrations with respect to our properties.
•
Our properties, goodwill and intangible assets and other assets may be subject to impairment charges.
• We could be subject to unexpected costs or liabilities that may arise from potential dispositions, including related to
limited partnership, tenant-in-common and Delaware statutory trust real estate programs (“1031 real estate programs”)
and VEREIT’s management with respect to such programs.
• We are subject to competition in the acquisition and disposition of properties and in the leasing of our properties and we
may be unable to acquire, dispose of, or lease properties on advantageous terms.
• We could be subject to risks associated with bankruptcies or insolvencies of tenants, from tenant defaults generally or
from the unpredictability of the business plans and financial condition of our tenants.
• We are subject to risks associated with pending government investigations relating to the findings of the investigation
conducted in 2014 by the audit committee (the “Audit Committee”) of the General Partner’s Board of Directors (the
“Audit Committee Investigation”) and related litigation, including the expense of such investigations and litigation and
any additional potential payments upon resolution.
• We have substantial indebtedness, which may affect our ability to pay dividends, and expose us to interest rate fluctuation
risk and the risk of default under our debt obligations.
•
•
Our overall borrowing and operating flexibility may be adversely affected by the terms and restrictions within the indenture
governing the senior unsecured notes (the “Senior Notes”), and the Credit Agreement governing the terms of the Credit
Facility (as both terms are defined in Item 1. Business).
Our access to capital and terms of future financings may be affected by adverse changes to our credit rating.
• We may be affected by the incurrence of additional secured or unsecured debt.
• We may not be able to achieve and maintain profitability.
• We may not generate cash flows sufficient to pay our dividends to stockholders or meet our debt service obligations.
• We may be affected by risks resulting from losses in excess of insured limits.
• We may fail to remain qualified as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.
•
Compliance with the REIT annual distribution requirements may limit our operating flexibility.
• We may be unable to retain or hire key personnel.
All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within our Annual
Report on Form 10-K for the year ended December 31, 2018.
2
We use certain defined terms throughout this Annual Report on Form 10-K that have the following meanings:
When we refer to “annualized rental income,” we mean the rental revenue under our leases on operating properties owned at
the respective reporting date on a straight-line basis, which includes the effect of rent escalations and any tenant concessions, such
as free rent, and excludes any bad debt allowances and any contingent rent, such as percentage rent. Management uses annualized
rental income as a basis for tenant, industry and geographic concentrations and other metrics within the portfolio. Annualized
rental income is not indicative of future performance.
When we refer to a “creditworthy tenant,” we mean a tenant that has entered into a lease that we determine is creditworthy
and may include tenants with an investment grade or below investment grade credit rating, as determined by major credit rating
agencies, or unrated tenants. To the extent we determine that a tenant is a “creditworthy tenant” even though it does not have an
investment grade credit rating, we do so based on our management’s determination that a tenant should have the financial
wherewithal to honor its obligations under its lease with us. As explained further below, this determination is based on our
management’s substantial experience performing credit analysis and is made after evaluating all of a tenant’s due diligence materials
that are made available to us, including financial statements and operating data.
When we refer to a “direct financing lease,” we mean a lease that requires specific treatment due to the significance of the
lease payments from the inception of the lease compared to the fair value of the property, term of the lease, a transfer of ownership,
or a bargain purchase option. These leases are recorded as a net asset on the balance sheet. The amount recorded is calculated as
the fair value of the remaining lease payments on the leases and the estimated fair value of any expected residual property value
at the end of the lease term.
When we refer to properties that are net leased on a “long term basis,” we mean properties with remaining primary lease terms
of generally seven to 10 years or longer on average, depending on property type.
Under a “net lease,” the tenant occupying the leased property (usually as a single tenant) does so in much the same manner
as if the tenant were the owner of the property. There are various forms of net leases, most typically classified as triple net or
double net. Triple net leases typically require that the tenant pay all expenses associated with the property (e.g., real estate taxes,
insurance, maintenance and repairs). Double net leases typically require that the tenant pay all operating expenses associated with
the property (e.g., real estate taxes, insurance and maintenance), but excludes some or all major repairs (e.g., roof, structure and
parking lot). Accordingly, the owner receives the rent “net” of these expenses, rendering the cash flow associated with the lease
predictable for the term of the lease. Under a net lease, the tenant generally agrees to lease the property for a significant term and
agrees that it will either have no ability or only limited ability to terminate the lease or abate rent prior to the expiration of the term
of the lease as a result of real estate driven events such as casualty, condemnation or failure by the landlord to fulfill its obligations
under the lease.
When we refer to “operating properties” we mean properties owned by the Company and beginning in 2017, omitting Excluded
Properties. “Excluded Properties” are defined as properties for which (i) the related mortgage loan is in default, and (ii) management
decides to transfer the properties to the lender in connection with settling the mortgage note obligation. As of December 31, 2018,
our portfolio was comprised of 3,994 retail, restaurant, office and industrial real estate properties with an aggregate of 95.0 million
square feet, of which 98.8% was leased, with a weighted-average remaining lease term of 8.9 years. As of December 31, 2018,
there were no Excluded Properties. During the year ended December 31, 2018, one vacant industrial property was considered an
Excluded Property. The Company entered into a deed-in-lieu of foreclosure agreement and conveyed its interest in this property
to the lender in April 2018.
Item 1. Business.
Overview
PART I
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant
commercial properties in the U.S. The Company has 3,994 retail, restaurant, office and industrial operating properties with an
aggregate of 95.0 million square feet, of which 98.8% was leased as of December 31, 2018, with a weighted-average remaining
lease term of 8.9 years. VEREIT’s business model provides equity capital to creditworthy corporations in return for long-term
leases on their properties.
Substantially all of our real estate operations are conducted through the Operating Partnership. VEREIT, Inc. is the sole general
partner and holder of 97.6% of the common partnership interests in the Operating Partnership (the “OP Units”) as of December 31,
2018 with the remaining 2.4% of the OP Units owned by certain non-affiliated investors and certain former directors, officers and
employees of the Former Manager (as defined in Item 1A. Risk Factors).
3
Prior to the fourth quarter of 2017, the Company operated through two business segments, the real estate investment segment
and the investment management segment, Cole Capital. The Company completed the sale of Cole Capital on February 1, 2018.
The assets, liabilities and related financial results of substantially all of the Cole Capital segment are reflected in the financial
statements as discontinued operations.
VEREIT, Inc. was incorporated in the State of Maryland on December 2, 2010 and has elected to be treated as a REIT for
U.S. federal income tax purposes. The Operating Partnership was formed in the State of Delaware on January 13, 2011. We operate
our business in a manner that permits us to maintain our exemption from registration under the Investment Company Act of 1940,
as amended. VEREIT, Inc.’s shares of common stock (“Common Stock”) and 6.70% Series F Cumulative Redeemable Preferred
Stock (“Series F Preferred Stock”) trade on the New York Stock Exchange (the “NYSE”) under the trading symbols “VER” and
“VER PRF,” respectively.
2018 Developments
Real Estate Acquisitions
During the year ended December 31, 2018, the Company acquired controlling financial interests in 52 commercial properties,
including one land parcel for build-to-suit development, for an aggregate purchase price of $502.7 million, which includes $2.6
million of external acquisition-related expenses that were capitalized.
Real Estate Dispositions
During the year ended December 31, 2018, the Company disposed of 149 properties, including one property conveyed to a
lender in a deed-in-lieu of foreclosure transaction, the Excluded Property, and one property owned by an unconsolidated joint
venture for an aggregate sales price of $560.5 million, of which the Company’s share was $521.4 million, resulting in consolidated
proceeds of $502.3 million after repayment of the unconsolidated joint venture’s mortgage loan and closing costs. The Company
recorded a gain of $96.9 million related to the dispositions.
Balance Sheet and Liquidity
Litigation Settlements
During the year ended December 31, 2018, the Company entered into settlement agreements with various plaintiffs in
connection with litigation filed as a result of the findings of the Audit Committee Investigation for $217.5 million. The Company
also entered into a settlement agreement for $15.7 million subsequent to December 31, 2018, which was accrued as of December 31,
2018 and included in litigation, merger and other non-routine costs, net of insurance recoveries in the consolidated statements of
operations for the year ended December 31, 2018. See Note 10 – Commitments and Contingencies for additional information.
Credit Agreement
On May 23, 2018, the General Partner, as guarantor, and the OP, as borrower, entered into a credit agreement with Wells Fargo
Bank, National Association, as administrative agent and the other lenders party thereto (the “Credit Agreement”). The Credit
Agreement allows for maximum borrowings of $2.9 billion, consisting of a $2.0 billion unsecured revolving credit facility (the
“Revolving Credit Facility”) and a $900.0 million unsecured term loan facility (the “Credit Facility Term Loan,” together with
the Revolving Credit Facility, the “Credit Facility”). In connection with entering into the Credit Agreement, the OP repaid all of
the outstanding obligations under the Amended and Restated Credit Agreement dated as of June 30, 2014 (as amended, the “2014
Credit Agreement”) and the 2014 Credit Agreement was terminated.
2018 Convertible Notes
The Company’s convertible senior notes due August 1, 2018 (the “2018 Convertible Notes”) matured and the principal
outstanding balance of $597.5 million, plus accrued and unpaid interest thereon, was repaid with proceeds from the Revolving
Credit Facility.
2025 Senior Notes
On October 16, 2018, the Company closed a senior note offering, consisting of $550.0 million aggregate principal amount of
the OP’s 4.625% Senior Notes due 2025 (the “2025 Senior Notes”). The OP used the net proceeds from the offering of the notes
to repay borrowings under its Revolving Credit Facility.
4
Debt Activity
During the year ended December 31, 2018, the Company’s total debt increased by $14.5 million, from $6.07 billion to $6.09
billion, partially due to the issuance of the 2025 Senior Notes, and net borrowings on the 2014 Credit Agreement and Credit Facility
of $218.0 million. These borrowings were partially offset by the repayment of $597.5 million of the 2018 Convertible Notes and
a reduction of $153.9 million in secured debt.
Share Repurchase Programs
On May 12, 2017, the Company’s Board of Directors authorized the repurchase of up to $200.0 million of the Company’s
outstanding Common Stock over the subsequent 12 months, as market conditions warranted (the “2017 Share Repurchase
Program”). On May 3, 2018, the Company’s Board of Directors terminated the 2017 Share Repurchase Program and authorized
a new program (the “2018 Share Repurchase Program,” and collectively with the 2017 Share Repurchase Program, the “Share
Repurchase Programs”) that permits the Company to repurchase up to $200.0 million of its outstanding Common Stock through
May 3, 2019, as market conditions warrant. During the year ended December 31, 2018, the Company repurchased approximately
6.4 million shares of Common Stock in multiple open market transactions, at a weighted average share price of $6.94, for an
aggregate purchase price of $44.6 million, as part of the 2017 Share Repurchase Program and 0.8 million shares of Common Stock
in multiple open market transactions, at a weighted average share price of $6.95 for an aggregate purchase price of $5.6 million
as part of the 2018 Share Repurchase Program.
Cole Capital Sale
On February 1, 2018, we sold all of the issued and outstanding shares of common stock of Cole Capital Advisors, Inc. (“CCA”),
our subsidiary that sponsored and managed non-listed real estate investment trusts, and certain of CCA’s subsidiaries, to CCA
Acquisition, LLC (the “Cole Purchaser”), an affiliate of CIM Group, LLC for total consideration of approximately $120.0 million
in cash.
On February 1, 2018, we entered into a services agreement (the “Services Agreement”) with Cole Capital, pursuant to which
we will continue to provide certain services to Cole Capital and its subsidiaries and to Cole Credit Property Trust IV, Inc. (“CCPT
IV”), CIM Income NAV, Inc. (formerly known as Cole Real Estate Income Strategy (Daily NAV), Inc.) (“INAV”), Cole Office &
Industrial REIT (CCIT II), Inc. (“CCIT II”), Cole Office & Industrial REIT (CCIT III), Inc. (“CCIT III”), and Cole Credit Property
Trust V, Inc. (“CCPT V” and collectively with CCPT IV, INAV, CCIT II and CCIT III, the “Cole REITs”) including operational
real estate support. Under the terms of the Services Agreement, we are entitled to receive reimbursement for certain of the services
provided and fees based on the future revenues of Cole Capital above a specified dollar threshold (the “Net Revenue Payments”),
up to an aggregate of $80.0 million in Net Revenue Payments. There were no Net Revenue Payments received or earned for 2018.
Primary Investment Focus
We own and actively manage a diversified portfolio of single-tenant retail, restaurant, office and industrial real estate assets
subject to long-term net leases with creditworthy tenants. Our focus is on single-tenant, net-leased properties that are strategically
located and essential to the business operations of the tenant, as well as retail properties that offer necessity and value-oriented
products or services. We actively manage the portfolio by considering several metrics including property type, tenant concentration,
geography, credit and key economic factors for appropriate balance and diversity. We believe that actively managing our portfolio
allows us to attain the best operating results for each asset and the overall portfolio through strategic planning, implementation of
these plans and responding proactively to changes and challenges in the marketplace.
Investment Policies
When evaluating prospective investments in or dispositions of real property, our management considers relevant real estate
and financial factors, including the location of the property, the leases and other agreements affecting the property and business
operations of the tenant, the creditworthiness of major tenants, its income-producing capacity, its physical condition, its prospects
for appreciation, its prospects for liquidity, tax considerations and other factors. In this regard, our management will have substantial
discretion with respect to the selection of specific investments, subject in certain instances to the approval of the Board of Directors.
As part of our overall portfolio strategy, we seek to lease space and/or acquire properties leased to creditworthy tenants that
meet our underwriting and operating guidelines. Prior to entering into any transaction, our corporate credit analysis and underwriting
professionals conduct a review of a tenant’s credit quality. In addition, we consistently monitor the credit quality of our portfolio
by actively reviewing the creditworthiness of certain tenants, focusing primarily on those tenants representing the greatest
concentration of our portfolio. This review primarily includes an analysis of the tenant’s financial statements either quarterly, or
as frequently as the lease permits. We also consider tenant credit quality when assessing our portfolio for strategic dispositions.
When we assess tenant credit quality, we, among other factors that we may deem relevant: (i) review relevant financial information,
5
including financial ratios, net worth, revenue, cash flows, leverage and liquidity; (ii) evaluate the depth and experience of the
tenant’s management team; and (iii) assess the strength/growth of the tenant’s industry. On an on-going basis, we evaluate the need
for an allowance for doubtful accounts arising from estimated losses that could result from the tenant’s inability to make required
current rent payments and an allowance against accrued rental revenue for future potential losses that we deem to be unrecoverable
over the term of the lease. The factors considered in determining the credit risk of our tenants include, but are not limited to:
payment history; credit status and change in status (credit ratings for public companies are used as a primary metric); change in
tenant space needs (i.e., expansion/downsize); tenant financial performance; economic conditions in a specific geographic region;
and industry specific credit considerations. We are of the opinion that the credit risk of our portfolio is reduced by the high quality
of our existing tenant base, reviews of prospective tenants’ risk profiles prior to lease execution and consistent monitoring of our
portfolio to identify potential problem tenants and mitigation options.
Real Estate Investments
As of December 31, 2018, the Company owned 3,994 operating properties comprising 95.0 million square feet of retail and
commercial space located in 49 states and Puerto Rico, which includes properties owned through consolidated joint ventures. The
rentable space at these properties was 98.8% leased with a weighted-average remaining lease term of 8.9 years. There
were no tenants exceeding 10% of our consolidated annualized rental income as of December 31, 2018, 2017 or 2016. As of
December 31, 2018, 2017 and 2016, properties located in Texas represented 12.5%, 12.8% and 13.5%, respectively, of our
consolidated annualized rental income. As of December 31, 2018, tenants in the casual dining restaurant and manufacturing
industries accounted for 12.8% and 10.1%, respectively, of our consolidated annualized rental income. As of December 31, 2017,
tenants in the casual dining restaurant and manufacturing industries accounted for 13.8% and 10.1%, respectively, of our
consolidated annualized rental income. As of December 31, 2016, tenants in the casual dining restaurant and manufacturing
industries accounted for 15.6% and 10.1%, respectively, of our consolidated annualized rental income.
Financing Policies
We rely on leverage to allow us to invest in a greater number of assets and enhance our asset returns. We intend to finance
future acquisitions with the most advantageous source of capital available to us at the time of the transaction, which may include
a combination of public and private offerings of our equity and debt securities, unsecured corporate-level debt, and other public,
private or bank debt. In addition, we may acquire properties in exchange for the issuance of Common Stock or OP Units and we
may acquire properties subject to existing mortgage indebtedness.
We also may obtain secured or unsecured debt to acquire properties, and we expect that our financing sources will include
the public debt market, banks and institutional investment firms, including asset managers and life insurance companies. Although
we intend to maintain a conservative capital structure, our charter does not contain a specific limitation on the amount of debt we
may incur and the Board of Directors may implement or change target debt levels at any time without the approval of our
stockholders.
We intend to continue to emphasize unsecured corporate-level or OP-level debt in our financing and to seek to reduce the
percentage of our assets which are secured by mortgage loans. For information relating to our Credit Facility, see Management’s
Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.
Competition
We are subject to competition in the acquisition and disposition of properties and in the leasing of our properties. We compete
with a number of developers, owners and operators of retail, restaurant, office and industrial real estate, many of which own
properties similar to ours in the same markets in which our properties are located. We also may face new competitors and, due to
our focus on single-tenant properties located throughout the United States, and because many of our competitors are locally or
regionally focused, we do not expect to encounter the same competitors in each region of the United States. Our competitors may
be willing to accept lower returns on their investments and may succeed in buying the properties that we have targeted for acquisition.
Foreign investors may view the U.S. real estate market as being more stable than other international markets and may increase
investments in high-quality single-tenant properties, especially in gateway cities. We may also incur costs in connection with
unsuccessful acquisitions that we will not be able to recover.
Regulations
Our investments are subject to various federal, state, local and foreign laws, ordinances and regulations, including, among
other things, health, safety and zoning regulations, land use controls, environmental controls relating to air and water quality, noise
pollution and indirect environmental impacts such as increased motor vehicle activity. We believe that we have all material permits
and approvals necessary under current law to operate our investments.
6
Our properties are also subject to laws such as the Americans with Disabilities Act of 1990 (“ADA”), which require that all
public accommodations must meet federal requirements related to access and use by disabled persons. Some of our properties may
currently not be in compliance with the ADA. If one or more of the properties in our portfolio is not in compliance with the ADA
or any other regulatory requirements, we may be required to incur additional costs to bring the property into compliance.
Environmental Matters
Under various federal, state and local environmental laws, a current owner of real estate may be required to investigate and
clean up contaminated property. Under these laws, courts and government agencies have the authority to impose cleanup
responsibility and liability even if the owner did not know of and was not responsible for the contamination. For example, liability
can be imposed upon us based on the activities of our tenants or a prior owner. In addition to the cost of the cleanup, environmental
contamination on a property may adversely affect the value of the property and our ability to sell, rent or finance the property, and
may adversely impact our investment in that property.
Prior to acquisition of a property, we will obtain Phase I environmental reports, or will rely on recent Phase I environmental
reports. These reports will be prepared in accordance with an appropriate level of due diligence based on our standards and generally
include a physical site inspection, a review of relevant federal, state and local environmental and health agency database records,
one or more interviews with appropriate site-related personnel, review of the property’s chain of title and review of historic aerial
photographs and other information on past uses of the property and nearby or adjoining properties. We may also obtain a Phase
II investigation which may include limited subsurface investigations and tests for substances of concern where the results of the
Phase I environmental reports or other information indicates possible contamination or where our consultants recommend such
procedures.
Employees
As of December 31, 2018, we had approximately 180 employees.
Available Information
We electronically file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all
amendments to those reports, and proxy statements, with the U.S. Securities and Exchange Commission (the “SEC”). You may
access any materials we file with the SEC through the EDGAR database at the SEC’s website at http://www.sec.gov. In addition,
copies of our filings with the SEC may be obtained from our website at www.ir.vereit.com. We are providing our website address
solely for the information of investors. We do not intend for the information contained on our website to be incorporated into this
Annual Report on Form 10-K or other filings with the SEC.
Supplemental Federal Income Tax Considerations
This summary is for general information purposes only and is not tax advice. This discussion does not address all aspects of
taxation that may be relevant to particular holders of our securities in light of their personal investment or tax circumstances.
Recent Legislation
Tax Cuts and Jobs Act
On December 22, 2017, H.R. 1, informally titled the Tax Cuts and Jobs Act (the “TCJA”), was enacted. The TCJA made major
changes to the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), including a number of provisions of
the Internal Revenue Code that affect the taxation of REITs and their stockholders. The long-term effect of the significant changes
made by the TCJA remains uncertain, and additional administrative guidance will be required in order to fully evaluate the effect
of many provisions. The effect of any technical corrections with respect to the TCJA could have an adverse effect on us or our
stockholders or holders of our debt securities.
Item 1A. Risk Factors.
Investors should carefully consider the following factors, together with all the other information included in this Annual Report
on Form 10-K, in evaluating the Company and our business. If any of the following risks actually occur, our business, financial
condition and results of operations could be materially and adversely affected, the trading price of VEREIT's securities could
decline and its stockholders and/or the Operating Partnership's unitholders may lose all or part of their investment. Additional risks
and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations. This
“Risk Factors” section contains references to our “capital stock” and to our “stockholders” and “unitholders.” Unless expressly
stated otherwise, references to our “capital stock” represent VEREIT’s Common Stock and any class or series of its preferred
stock, references to our “stockholders” represent holders of VEREIT’s Common Stock and any class or series of its preferred
stock, and references to our “unitholders” represent holders of the OP Units and any class of series of the Operating Partnership’s
preferred units.
7
Risks Related to Our Business
We are primarily dependent on single-tenant leases for our revenue and, accordingly, if we are unable to renew leases, lease
vacant space, including vacant space resulting from tenant defaults, or re-lease space as leases expire, on favorable terms or
at all, our financial condition could be adversely affected.
We focus our investment activities on ownership of freestanding, single-tenant commercial properties that are net leased to a
single tenant. Therefore, the financial failure of, or other default by, a significant tenant or multiple tenants could cause a material
reduction in our revenues and operating cash flows. In addition, this risk is increased where we lease multiple properties to a single
tenant under a master lease. In such an instance, a default specific to a particular property could result in a termination of the entire
master lease, resulting in the loss of revenue from all properties under the master lease.
We cannot assure you that our leases will be renewed or that we will be able to lease or re-lease the properties on favorable
terms, or at all, or that lease terminations will not cause us to sell the properties at a loss. Any of our properties that become vacant
could be difficult to sell or re-lease at similar or favorable rental rates or at all. We have and may continue to experience vacancies
either by the default of a tenant under its lease or the expiration of one of our leases. We typically must incur all of the costs of
ownership for a property that is vacant. Upon or pending the expiration of leases at our properties, we may be required to make
rent or other concessions to tenants, or accommodate requests for lower rents, remodeling and other improvements, in order to
retain and attract tenants. Certain of our properties may be specifically suited to the particular needs of a tenant (e.g., a retail bank
branch or distribution warehouse) and major renovations and expenditures may be required in order for us to re-lease the space
for other uses. If the vacancies continue for a long period of time, we may suffer reduced revenues, resulting in less cash available
for distribution to our stockholders and unitholders. If we are unable to renew leases, lease vacant space, including vacant space
resulting from tenant defaults, or re-lease space as leases expire, on favorable terms or at all, our financial condition could be
adversely affected.
We are subject to tenant, geographic and industry concentrations that make us more susceptible to adverse events with respect
to certain tenants, geographic areas or industries.
As of December 31, 2018, we had derived approximately:
•
$63.7 million, or 5.5%, of our annualized rental income from Red Lobster®, a wholly owned subsidiary of Golden Gate
Capital;
$339.2 million, or 29.5%, of our annualized rental income from properties located in the following four states: Texas
(12.5%), Ohio (5.9%), Florida (5.6%), and Illinois (5.5%); and
$600.9 million, or 52.3%, of our annualized rental income from tenants in the following six industries: the casual dining
restaurant industry (12.8%), the manufacturing industry (10.1%), the quick service restaurant industry (8.7%), the discount
retail industry (8.4%), the pharmacy retail industry (6.8%) and the home and garden retail industry (5.5%).
•
•
As we continue to acquire properties, our portfolio may become more concentrated by tenant, geographic area or industry.
Any adverse change in the financial condition of a tenant with whom we may have a significant credit concentration now or in
the future, or any downturn of the economy in any state or industry in which we may have a significant credit concentration now
or in the future, could result in a material reduction of our cash flows or material losses to us. These concentrations may also
strengthen tenant bargaining power and make us more susceptible to adverse regulatory changes, natural disasters or other
unexpected events that may impact a particular tenant, geographic location or industry which could negatively affect our operations
or result in a material reduction of our cash flows or material losses to us.
Our net leases may require us to pay property-related expenses that are not the obligations of our tenants.
Under the terms of the majority of our net leases, in addition to satisfying their rent obligations, our tenants are responsible
for the payment or reimbursement of property expenses such as real estate taxes, insurance and ordinary maintenance and repairs.
However, under the provisions of certain existing leases and leases that we may enter into in the future with our tenants, we may
be required to pay some or all of the expenses of the property, such as the costs of environmental liabilities, roof and structural
repairs, real estate taxes, insurance, certain non-structural repairs and maintenance. If our properties incur significant expenses
that must be paid by us under the terms of our leases, our business, financial condition and results of operations may be adversely
affected and the amount of cash available to meet expenses and to make distributions to our stockholders and unitholders may be
reduced.
Our properties may be subject to impairment charges.
We routinely evaluate our real estate investments for impairment indicators. The judgment regarding the existence of
impairment indicators is based on factors such as market conditions and tenant performance. For example, the early termination
of, or default under, a lease by a tenant may lead to an impairment charge. Since our investment focus is on properties net leased
8
to a single tenant, the financial failure of, or other default by, a single tenant under its lease(s) may result in a significant impairment
loss. If we determine that an impairment has occurred, we would be required to make a downward adjustment to the net carrying
value of the property, which could have a material adverse effect on our results of operations in the period in which the impairment
charge is recorded. Management has recorded impairment charges related to certain properties in the year ended December 31,
2018, and may record future impairments based on actual results and changes in circumstances. Negative developments in the real
estate market may cause management to reevaluate the business and macro-economic assumptions used in its impairment analysis.
Changes in management’s assumptions based on actual results may have a material impact on the Company’s financial statements.
See Note 6 – Fair Value Measures to our consolidated financial statements for a discussion of real estate impairment charges.
Our ownership of certain properties and other facilities are subject to ground leases or other similar agreements which limit
our uses of these properties and may restrict our ability to sell or otherwise transfer such properties.
As of December 31, 2018, we held interests in properties and other facilities through leasehold interests in the land on which
the buildings are located and we may acquire additional properties in the future that are subject to ground leases or other similar
agreements. As of December 31, 2018, the costs associated with these ground leases represented 2.0% of annualized rental revenue.
The terms of the ground leases may be different than the related operating lease for the property and many of our ground leases
and other similar agreements limit our uses of these properties and may restrict our ability to sell or otherwise transfer such
properties without the ground landlord’s consent, all of which may impair their value.
Real estate investments are relatively illiquid and therefore we may not be able to dispose of properties when appropriate or on
favorable terms.
Real estate investments are, in general, relatively illiquid and may become even more illiquid during periods of economic
downturn. As a result, we may not be able to sell our properties quickly or on favorable terms in response to changes in the economy
or other conditions when it otherwise may be prudent to do so. In addition, certain significant expenditures generally do not change
in response to economic or other conditions, including debt service obligations, real estate taxes, and operating and maintenance
costs. This combination of variable revenue and relatively fixed expenditures may result, under certain market conditions, in
reduced earnings. Further, as a result of the 100% prohibited transactions tax applicable to REITs, we intend to hold our properties
for investment, rather than primarily for sale in the ordinary course of business, which may cause us to forgo or defer sales of
properties that otherwise would be favorable. Therefore, we may be unable to adjust our portfolio promptly in response to economic,
market or other conditions, which could adversely affect our business, financial condition, liquidity and results of operations.
A substantial portion of our properties are leased to tenants with a below investment grade rating, as determined by major credit
rating agencies, or are leased to tenants that are not rated, and may have a greater risk of default.
As of December 31, 2018, approximately 58.1% of our tenants were not rated or did not have an investment grade credit rating
from a major ratings agency or were not affiliates of companies having an investment grade credit rating. Our investments in
properties leased to such tenants may have a greater risk of default and bankruptcy than investments in properties leased exclusively
to investment grade tenants. When we invest in properties where the tenant does not have a publicly available credit rating, we
will use certain credit-assessment tools as well as rely on our own underwriting and analysis of the tenant’s credit rating which
includes, among other things, reviewing the tenant’s financial information (e.g., financial ratios, net worth, revenue, cash flows,
leverage and liquidity, if applicable). If our ratings estimates are inaccurate, the default or bankruptcy risk for the subject tenant
may be greater than anticipated. This outcome could have an adverse impact on our returns on that asset and hence our operating
results.
We may be unable to sell a property if or when we decide to do so, including as a result of uncertain market conditions, which
could adversely impact our ability to make cash distributions to our stockholders and unitholders.
We expect to hold the various real properties in which we invest until such time as we decide that a sale or other disposition
is appropriate given our investment business objectives and REIT limitations. We generally intend to hold properties for an extended
time, but our management or Board of Directors may exercise their discretion as to whether and when to sell a property to achieve
investment or portfolio objectives. Our ability to dispose of properties on advantageous terms or at all depends on certain factors
beyond our control, including competition from other sellers, the availability of attractive financing for potential buyers of our
properties and the quality of the underlying tenant. In addition, if our competitors sell assets similar to assets we intend to divest
and/or at valuations below our valuations for comparable assets, we may be unable to divest our assets at all or at favorable pricing
or terms. We cannot predict the various market conditions affecting real estate investments which will exist at any particular time
in the future. Due to the uncertainty of market conditions which may affect the disposition of our properties, we cannot assure you
that we will be able to sell such properties at a profit or at all in the future. Accordingly, the extent to which our stockholders and
unitholders will receive cash distributions and realize potential appreciation on our real estate investments will depend upon
9
fluctuating market conditions. Furthermore, we may be required to seek modifications of an underlying lease or expend funds to
correct defects or to make improvements before a property can be sold.
Dividends paid from sources other than our cash flow from operations could affect our profitability, restrict our ability to
generate sufficient cash flow from operations, and dilute stockholders’ and unitholders’ interests in us.
We may not generate sufficient cash flow from operations to pay dividends and we may in the future pay dividends from
sources other than from our cash flow from operations, such as from the proceeds of property or other asset dispositions, borrowings
(including on our existing line of credit), cash and cash equivalents balances, and/or offerings of debt and/or equity securities. We
have not established any limit on the amount of borrowings and/or the sale of property or other assets or the proceeds from an
offering of debt or equity securities that may be used to fund dividends, except that, in accordance with our organizational documents
and Maryland law, we may not make dividend distributions that would: (1) cause us to be unable to pay our debts as they become
due in the usual course of business; (2) cause our total assets to be less than the sum of our total liabilities plus senior liquidation
preferences; or (3) jeopardize our ability to qualify as a REIT.
Funding dividends from borrowings could restrict the amount we can borrow for investments, which may affect our profitability.
Funding dividends with the sale of property or other assets or the proceeds of offerings of debt or equity securities may affect our
ability to generate cash flows. Payment of dividends from these sources could affect our profitability, restrict our ability to generate
sufficient cash flow from operations, and dilute stockholders’ and unitholders’ interests in us, any or all of which may adversely
affect your overall return. In addition, funding dividends from the sale of additional debt or equity securities could dilute your
interest in us if we sell shares of our Common Stock or securities that are convertible or exercisable into shares of our Common
Stock to third party investors. As a result, the return you realize on your investment may be reduced.
We could face potential adverse effects from the bankruptcies or insolvencies of tenants or from tenant defaults generally.
The bankruptcy or insolvency of our tenants may adversely affect the income produced by our properties. Under bankruptcy
law, a tenant cannot be evicted solely because of its bankruptcy and has the option to assume or reject any unexpired lease. If the
tenant rejects the lease, any resulting claim we have for breach of the lease (excluding collateral securing the claim) will be treated
as a general unsecured claim. Our claim against the bankrupt tenant for unpaid and future rent will be subject to a statutory cap
that might be substantially less than the remaining rent actually owed under the lease, and it is unlikely that a bankrupt tenant that
rejects its lease would pay in full amounts it owes us under the lease. Even if a lease is assumed and brought current, we still run
the risk that a tenant could condition lease assumption on a restructuring of certain terms, including rent, that would have an adverse
impact on us. Any shortfall resulting from the bankruptcy of one or more of our tenants could adversely affect our cash flows and
results of operations and could cause us to reduce the amount of distributions to our stockholders and unitholders.
In addition, the financial failure of, or other default by, one or more of the tenants to whom we have exposure could have an
adverse effect on the results of our operations. While we evaluate the creditworthiness of our tenants by reviewing available
financial and other pertinent information, there can be no assurance that any tenant will be able to make timely rental payments
or avoid defaulting under its lease. If any of our tenants’ businesses experience adverse changes, they may fail to make rental
payments when due, close a number of stores, exercise early termination rights (to the extent such rights are available to the tenant)
or declare bankruptcy. A default by a significant tenant or multiple tenants could cause a material reduction in our revenues and
operating cash flows. In addition, if a tenant defaults, we may incur substantial costs in protecting our investment.
If a sale-leaseback transaction is re-characterized in a tenant’s bankruptcy proceeding, our financial condition could be
adversely affected.
We have entered and may continue to enter into sale-leaseback transactions. In a sale-leaseback transaction, we purchase a
property and then lease it back to the third party from whom we purchased it. In the event of the bankruptcy of a tenant, a transaction
structured as a sale-leaseback might possibly be re-characterized as either a financing or a joint venture, either of which outcomes
could adversely affect our financial condition, cash flows and the amount available for distribution to our stockholders and
unitholders.
If a sale-leaseback is re-characterized as a financing, we would not be considered the owner of the property and, as a result,
would have the status of a creditor in relation to the tenant. In that event, we would no longer have the right to sell or encumber
our ownership interest in the property. Instead, we would have a claim against the tenant for the amounts owed under the lease,
with the claim arguably secured by the property. The tenant/debtor might have the ability to propose a plan restructuring the term,
interest rate and amortization schedule of its outstanding balance. If confirmed by the bankruptcy court, we could be bound by the
new terms and prevented from foreclosing our lien on the property. If the sale-leaseback is re-characterized as a joint venture, our
tenant and we could be treated as co-venturers with regard to the property. As a result, we could be held liable, under some
circumstances, for debts incurred by the tenant relating to the property.
10
We have a history of operating losses and cannot assure you that we will achieve or maintain profitability.
Since our inception in 2010, we have experienced net losses (calculated in accordance with generally accepted accounting
principles in the United States (“U.S. GAAP”) and as of December 31, 2018, had an accumulated deficit of $5.47 billion. The
extent of our future operating losses and the timing of when we will achieve profitability are uncertain, and together depend on
the demand for, and value of, our portfolio of properties. We may never achieve or sustain profitability.
We may be unable to enter into and consummate property acquisitions on advantageous terms or our property acquisitions
may not perform as we expect due to competitive conditions and other factors.
We may acquire properties in the future. The acquisition of properties entails various risks, including the risks that our
investments may not perform as we expect and that our cost estimates for bringing an acquired property up to market standards
may prove inaccurate. Further, we expect to finance any future acquisitions through a combination of borrowings (including under
our Revolving Credit Facility), cash and cash equivalent balances, proceeds from equity and/or debt offerings by VEREIT, the
Operating Partnership or their subsidiaries, cash flow from operations and proceeds from property or other asset dispositions which,
if unavailable, could adversely affect our cash flows.
In addition, our ability to acquire properties in the future on satisfactory terms and successfully integrate and operate such
properties is subject to the following significant risks:
•
•
•
•
•
•
•
we may be unable to acquire desired properties or the purchase price of a desired property may increase significantly
because of competition from other real estate investors, including other real estate operating companies, REITs and
investment funds;
we may acquire properties that are not accretive to our earnings upon acquisition;
we may be unable to obtain the necessary debt or equity financing to consummate an acquisition or, if obtainable, financing
may not be on satisfactory terms;
we may need to spend more than budgeted amounts to make necessary improvements or renovations to acquired properties;
agreements for the acquisition of properties are typically subject to customary conditions to closing, including satisfactory
completion of due diligence investigations, and we may spend significant time and money on potential acquisitions that
we do not consummate;
we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties,
into our existing operations; and
we may acquire properties without any recourse, or with only limited recourse, for liabilities, whether known or unknown,
such as cleanup of environmental contamination, remediation of latent defects, claims by tenants, vendors or other persons
against the former owners of the properties and claims for indemnification by general partners, directors, officers and
others indemnified by the former owners of the properties.
Any of the above risks could adversely affect our business, financial condition, liquidity and results of operations.
We have assumed, and may in the future assume, liabilities in connection with our property acquisitions, including unknown
liabilities.
We have assumed, and may in the future assume, existing liabilities in connection with property acquisitions, some of which
may have been unknown or unquantifiable at the time of the transaction or the magnitude of which may have increased since the
time of the transaction. Such liabilities might include liabilities for cleanup or remediation of undisclosed or disclosed environmental
conditions, claims of tenants or other persons dealing with prior owners of the properties, tax liabilities, and accrued but unpaid
liabilities whether incurred in the ordinary course of business or otherwise. If the magnitude of such liabilities is material or higher
than anticipated, either singly or in the aggregate, it could adversely affect our business, financial condition, liquidity and results
of operations.
We face intense competition, which may decrease or prevent increases in the occupancy and rental rates of our properties.
We are subject to competition in the leasing of our properties. We compete with numerous developers, owners and operators
of retail, restaurant, industrial and office real estate, many of which have greater financial and other resources than us. Many of
our competitors own properties similar to ours in the same markets in which our properties are located. If one of our properties is
nearing the end of the lease term or becomes vacant and our competitors offer space at rental rates below current market rates or
below the rental rates we currently charge our tenants, we may lose existing or potential tenants and we may be pressured to reduce
our rental rates below those we currently charge or to offer substantial rent concessions in order to retain tenants when such tenants’
11
leases expire or to attract new tenants. As a result of these actions by our competitors, our business, financial condition, liquidity
and results of operations may be adversely affected.
The value of our real estate investments is subject to risks associated with our real estate assets and with the real estate industry.
Our real estate investments are subject to various risks, fluctuations and cycles in value and demand, many of which are
beyond our control. Certain events may decrease our cash available for distribution to our stockholders and unitholders, as well
as the value of our properties. These events include, but are not limited to:
•
•
•
•
•
•
•
•
•
•
•
•
adverse changes in international, national or local economic and demographic conditions;
vacancies or our inability to lease space on favorable terms, including possible market pressures to offer tenants rent
abatements, tenant improvements, early termination rights or tenant-favorable renewal options;
adverse changes in financial conditions of buyers, sellers and tenants of properties;
inability to collect rent from tenants, or other failures by tenants to perform the obligations under their leases;
competition from other real estate investors, including other real estate operating companies, REITs and institutional
investment funds;
reductions in the level of demand for commercial space generally, and freestanding net leased properties specifically, and
changes in the relative popularity of our tenants and/or properties;
increases in the supply of freestanding single-tenant properties;
fluctuations in interest rates, which could adversely affect our ability, or the ability of buyers and tenants of our properties,
to obtain financing on favorable terms or at all;
increases in expenses, including, but not limited to, insurance costs, labor costs, energy prices, real estate assessments
and other taxes and costs of compliance with laws, regulations and governmental policies, all of which have an adverse
impact on the rent a tenant may be willing to pay us in order to lease one or more of our properties;
loss of property rights, adverse impacts on our tenants’ business operations and/or increases in tenant vacancies resulting
from eminent domain proceedings;
civil unrest, acts of God, including earthquakes, floods, hurricanes and other natural disasters, including extreme weather
events from possible future climate change, which may result in uninsured losses, and acts of war or terrorism; and
changes in, and changes in enforcement of, laws, regulations and governmental policies, including, without limitation,
health, safety, environmental, zoning and tax laws, governmental fiscal policies and the ADA.
In addition, our properties are subject to the ADA and while our tenants are obligated to comply with the ADA and may be
obligated under our leases to pay for the costs associated with compliance with the ADA, if compliance involves expenditures that
are greater than anticipated or if tenants fail or are unable to comply, we may be required to incur expenses to bring a property
into compliance.
Any or all of these factors could materially adversely affect our results of operations through decreased revenues or increased
costs.
Uninsured losses or losses in excess of our insurance coverage could materially adversely affect our financial condition and
cash flows, and there can be no assurance as to future costs and the scope of coverage that may be available under insurance
policies.
We carry commercial general liability, flood, earthquake, and property and rental loss insurance covering all of the properties
in our portfolio under one or more blanket insurance policies with policy specifications, limits and deductibles customarily carried
for similar properties. In addition, we carry professional liability and directors’ and officers’ insurance, and cyber liability insurance.
We select policy specifications and insured limits that we believe are appropriate and adequate given the relative risk of loss,
insurance coverages provided by tenants, the cost of the coverage and industry practice. There can be no assurance, however, that
the insured limits on any particular policy will adequately cover an insured loss if one occurs. If any such loss is insured, we may
be required to pay a significant deductible on any claim for recovery of such a loss prior to our insurer being obligated to reimburse
us for the loss, or the amount of the loss may exceed our coverage for the loss. In addition, we may reduce or discontinue certain
coverages on some or all of our properties in the future if the cost of premiums for any of these policies exceeds, in our judgment,
the value of the coverage discounted for the risk of loss. Our title insurance policies may not insure for the current aggregate market
value of our portfolio, and we do not intend to increase our title insurance coverage as the market value of our portfolio increases.
Further, we do not carry insurance for certain losses, including, but not limited to, losses caused by riots, war or nuclear
explosions. Certain types of losses may be either uninsurable or not economically insurable, such as losses due to nuclear explosions,
riots or acts of war. If we experience a loss that is uninsured or which exceeds policy limits, we could lose the capital invested in
12
the damaged properties as well as the anticipated future cash flows from those properties. In addition, if the damaged properties
are subject to recourse indebtedness, we would continue to be liable for the indebtedness, even if these properties were irreparably
damaged. In addition, we carry several different lines of insurance, placed with several large insurance carriers. If any one of these
large insurance carriers were to become insolvent, we would be forced to replace the existing insurance coverage with another
suitable carrier, and any outstanding claims would be at risk for collection. In such an event, we cannot be certain that we would
be able to replace the coverage at similar or otherwise favorable terms. As a result of any of the situations described above, our
financial condition and cash flows may be materially and adversely affected.
Our participation in joint ventures creates additional risks as compared to direct real estate investments, and the actions of our
joint venture partners could adversely affect our operations or performance.
We have in the past participated, and may in the future participate, in transactions structured to purchase or dispose of assets
jointly with unaffiliated third parties (a “joint venture”). There are additional risks involved in joint venture transactions. As a co-
investor in a joint venture, we may not be in a position to exercise sole decision-making authority relating to the property, joint
venture, or other entity. In addition, there is the potential of the third-party participant in the joint venture becoming bankrupt and
the possibility of diverging or inconsistent economic or business interests of us and that participant. These diverging interests could
result in, among other things, exposure to liabilities of the joint venture in excess of our proportionate share of these liabilities.
Investments in joint ventures may preclude us from acquiring properties for our own portfolio or a property that may be suitable
for our portfolio may instead be allocated to the joint venture. The competing rights of each owner in a jointly-owned property
could effect a reduction in the value of each owner’s interest in the subject property.
If we are unable to maintain effective disclosure controls and procedures and effective internal control over financial reporting,
investor confidence and our stock price could be adversely affected.
Our management is responsible for establishing and maintaining effective disclosure controls and procedures and internal
control over financial reporting. There were no changes to our internal control over financial reporting that occurred during the year
ended December 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting, however, there can be no guarantee as to the effectiveness of our disclosure controls and procedures and we
cannot assure you that our internal control over financial reporting will not be subject to material weaknesses in the future. If we
fail to maintain the adequacy of our internal controls over financial reporting and our operating internal controls, including any
failure to implement required new or improved controls as a result of changes to our business or otherwise, or if we experience
difficulties in their implementation, our business, results of operations and financial condition could be adversely affected and we
could fail to meet our reporting obligations.
Government investigations relating to the findings of the Audit Committee Investigation has resulted in significant expenses
and may result in significant legal expenses, fines, and/or penalties, including indemnification obligations, and cause our
business, financial condition, liquidity and results of operations to suffer.
On November 13, 2014, we received the first of two subpoenas relating to the findings of the Audit Committee Investigation
from the staff of the SEC, each of which called for the production of certain documents. On December 19, 2014, we received a
subpoena from the Securities Division of the Office of the Secretary of the Commonwealth of Massachusetts. The U.S. Attorney’s
Office for the Southern District of New York also contacted counsel for the Company and counsel for the Audit Committee. We
are cooperating with these regulators in their investigations. The U.S. Attorney’s Office for the Southern District of New York has
indicated that it does not intend to bring criminal charges against the Company arising from its investigation. In addition, we have
not been in contact with the Massachusetts regulator since June 2015 and we believe that the investigation has concluded. We
cannot, however, predict the outcome or time needed to resolve the SEC investigation or whether we will face additional government
investigations, inquiries or other actions related to these matters. Subject to certain limitations, we are obligated to advance certain
legal expenses to and indemnify our former directors, officers and employees, among others in connection with the ongoing
government investigations and potential future government inquiries, investigations or actions. These matters could result in actions
seeking, among other things, injunctions against us and the payment of significant fines and/or penalties, as well as requiring
payment of substantial legal fees and indemnification obligations, and cause our business, financial condition, liquidity and results
of operations to suffer. We have not reserved an amount for the SEC investigation because we believe that any probable loss or
reasonably possible range of loss is not reasonably estimable at this time. We can provide no assurance as to the outcome of any
government investigation.
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The Company and certain of our former officers and directors, among others, have been named as defendants in various
lawsuits related to the findings of the Audit Committee Investigation which have resulted in significant legal expenses which
are expected to continue. Any resolution could require substantial payments by the Company, including indemnification
obligations, and may materially impact our business, financial condition, liquidity and results of operations.
Since the October 29, 2014 announcement of the findings of the Audit Committee Investigation and the subsequent restatement
of the Company’s financial statements in March 2015, the Company and its former officers and directors (along with others) have
been named as defendants in multiple putative securities class action complaints in the United States District Court for the Southern
District of New York, which were subsequently consolidated under the caption In re American Realty Capital Properties, Inc.
Litigation, No. 15-MC-00040 (AKH), multiple individual securities lawsuits (“opt-out actions”) and multiple derivative lawsuits.
The Company has currently settled all but one of the opt-out actions. See Note 10 – Commitments and Contingencies to our
consolidated financial statements for additional details regarding pending litigation matters related to the Audit Committee
Investigation.
As a result of the various pending litigations, and subject to certain limitations, we are obligated to advance certain legal
expenses to and indemnify our former directors, officers and employees, as well as certain outside individuals and entities. These
lawsuits have resulted in significant ongoing legal expenses, which are expected to continue. We have not reserved amounts for
the pending class action and remaining opt-out action because we believe that any probable loss or reasonably possible range of
loss is not reasonably estimable at this time. The resolution of these matters, and the timing thereof, are uncertain. Any such
resolution, whether through a judgment or a settlement, could require substantial payments by the Company, including potential
indemnification obligations, which are not expected to be covered by insurance, and may materially impact the Company’s business,
financial condition, liquidity and results of operations.
Historical 1031 real estate programs we manage may divert resources from our core business operations and may subject us
to unexpected liabilities and costs.
We continue to serve as the asset manager of certain historical 1031 real estate programs. While the volume of programs under
management has been decreasing, we continue to manage the remaining properties which requires the allocation of staff and other
Company resources. Continuing management of these programs may divert resources from our core business operations and could
result in unexpected liabilities and costs, including potential litigation.
Our accounting policies and methods are fundamental to how we record and report our financial position and results of
operations, and they require management to make estimates, judgments, and assumptions about matters that are inherently
uncertain.
Our accounting policies and methods are fundamental to how we record and report our financial position and results of
operations. We have identified several accounting policies as being critical to the presentation of our financial position and results
of operations because they require management to make particularly subjective or complex judgments about matters that are
inherently uncertain and because of the likelihood that materially different amounts would be recorded under different conditions
or using different assumptions. Because of the inherent uncertainty of the estimates, judgments, and assumptions associated with
these critical accounting policies, we cannot provide any assurance that we will not make subsequent significant adjustments to
our consolidated financial statements. If our judgments, assumptions, and allocations prove to be incorrect, or if circumstances
change, our business, financial condition, liquidity and results of operations could be adversely affected.
Changes in accounting pronouncements could adversely impact our or our tenants’ reported financial performance.
Accounting policies and methods are fundamental to how we record and report our financial condition and results of operations.
From time to time the Financial Accounting Standards Board and the SEC, who create and interpret appropriate accounting
standards, may change the financial accounting and reporting standards or their interpretation and application of these standards
that govern the preparation of our financial statements. These changes could have a material impact on our reported financial
condition and results of operations. In some cases, we could be required to apply a new or revised standard retroactively, resulting
in restating prior period financial statements. Similarly, these changes could have a material impact on our tenants’ reported financial
condition or results of operations and affect their preferences regarding leasing real estate.
We may not be able to maintain our competitive advantages if we are not able to attract and retain key personnel.
Our success depends to a significant extent on our ability to attract and retain key members of our executive and senior
management teams and staff supporting our continuing operations. If there are changes in senior leadership affecting our continuing
operations, such changes could be disruptive and could compromise our ability to operate our business. While we have entered
into employment agreements with certain key personnel, there can be no assurance that we will be able to retain the services of
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individuals whose knowledge and skills are important to our businesses. Our success also depends on our ability to prospectively
attract, integrate, train and retain qualified management personnel. Because the competition for qualified personnel is intense,
costs related to compensation and retention could increase significantly in the future. If we were to lose a sufficient number of our
key employees and were unable to replace them in a reasonable period of time, these losses could damage our business and adversely
affect our results of operations.
Competition that traditional retail tenants face from e-commerce retail sales, or the integration of brick and mortar stores with
e-commerce retailers, could adversely affect our business.
Our retail tenants face increasing competition from e-commerce retailers. E-commerce sales continue to account for an
increasing percentage of retail sales and this trend is expected to continue. These trends may have an impact on decisions that
retailers make regarding their brick and mortar stores. Changes in shopping trends as a result of the growth in e-commerce may
also impact the profitability of retailers that do not adapt to changes in market conditions. The continued growth of e-commerce
sales could decrease the need for traditional retail outlets and reduce retailers' space and property requirements. These conditions
could adversely impact our results of operations and cash flows if we are unable to meet the needs of our tenants or if our tenants
encounter financial difficulties as a result of changing market conditions.
Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a
compromise or corruption of our confidential information, and/or damage to our business relationships or reputation, all of
which could negatively impact our financial results.
A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of our
information resources. These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized
access to our information systems for purposes of misappropriating assets, stealing confidential information, corrupting data or
causing operational disruption. The result of these incidents may include disrupted operations (e.g., disruption of finance or
accounting systems that process or receive payment obligations, manage cash, warehouse data and other processes and procedures),
misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance
costs, litigation and damage to our tenant and investor relationships. In addition, from time to time, we update, modify or change
our information systems and, although we have taken steps to protect the security of the data and systems, our security measures
may not be able to prevent cyber incidents resulting from such modifications or changes. As our reliance on technology has
increased, so have the risks posed to our information systems, both internal and those we have outsourced. We have implemented
processes, procedures (including training and recovery procedures) and internal controls to help mitigate cybersecurity risks and
cyber intrusions, but these measures, as well as our increased awareness of the nature and extent of a risk of a cyber incident, do
not guarantee that our financial results, operations, business relationships or confidential information will not be negatively impacted
by such an incident. The remediation of a cyber incident could result in significant unplanned expenditures and our cash flows
and results of operations could be adversely affected.
We may acquire properties or portfolios of properties through tax deferred contribution transactions, which could result in the
dilution of our stockholders and unitholders, and limit our ability to sell or refinance such assets.
We have in the past and may in the future acquire properties or portfolios of properties through tax deferred contribution
transactions in exchange for OP Units. Under the Third Amended and Restated Agreement of Limited Partnership of the OP, as
amended (the “LPA”), after holding OP Units for a period of one year, unless otherwise consented to by the General Partner,
holders of OP Units have a right to redeem the OP Units for the cash value of a corresponding number of shares of the General
Partner’s Common Stock or, at the option of the General Partner, a corresponding number of shares of the General Partner’s
Common Stock. This could result in the dilution of our stockholders and unitholders through the issuance of OP Units that may
be exchanged for shares of our Common Stock. This acquisition structure may also have the effect of, among other things, reducing
the amount of tax depreciation we could deduct over the tax life of the acquired properties, and may require that we agree to
restrictions on our ability to dispose of, or refinance the debt on, the acquired properties in order to protect the contributors’ ability
to defer recognition of taxable gain. Similarly, we may be required to incur or maintain debt we would otherwise not incur so we
can allocate the debt to the contributors to maintain their tax bases. These restrictions could limit our ability to sell or refinance
an asset at a time, or on terms, that would be favorable absent such restrictions.
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Risks Related to Financing
We intend to rely on external sources of capital to fund future capital needs, and if we encounter difficulty in obtaining such
capital, we may not be able to meet maturing obligations or make any additional investments.
In order to qualify as a REIT under the Internal Revenue Code, we are required, among other things, to distribute annually to
our stockholders at least 90% of our REIT taxable income (which does not equal net income as calculated in accordance with U.S.
GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. Because of this dividend
requirement, we may not be able to fund from cash retained from operations all of our future capital needs, including capital needed
to refinance maturing obligations or make investments.
Market volatility and disruption could hinder our ability to obtain new debt financing or refinance our maturing debt on
favorable terms or at all or to raise debt and equity capital. Our access to capital will depend upon a number of factors, including:
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general market conditions;
the market’s perception of our future growth potential;
the extent of investor interest;
analyst reports about us and the REIT industry;
the general reputation of REITs and the attractiveness of their equity securities in comparison to other equity securities,
including securities issued by other real estate-based companies;
our financial performance and that of our tenants;
our current debt levels;
our current and expected future earnings;
our cash flow and cash dividends, including our ability to satisfy the dividend requirements applicable to REITs; and
the market price per share of our Common Stock.
If we are unable to obtain needed capital on satisfactory terms or at all, we may not be able to meet our obligations and
commitments as they mature or make any additional investments.
We have substantial amounts of indebtedness outstanding, which may affect our ability to pay dividends, and may expose us
to interest rate fluctuation risk and to the risk of default under our debt obligations.
As of December 31, 2018, our aggregate indebtedness was $6.1 billion. We may incur significant additional debt in the future,
including borrowings under our Credit Facility, for various purposes including, without limitation, the funding of future acquisitions,
capital improvements and leasing commissions in connection with the repositioning of a property and litigation expenses. At
December 31, 2018, we had $2.5 billion of undrawn commitments under our Credit Facility. Our substantial outstanding
indebtedness, and the limitations imposed on us by our debt agreements, could have significant adverse consequences, including
as follows:
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our cash flow may be insufficient to meet our required principal and interest payments;
we may be unable to borrow additional funds as needed or on satisfactory terms to fund future working capital, capital
expenditures and other general corporate requirements, which could, among other things, adversely affect our ability to
capitalize upon any acquisition opportunities or fund capital improvements and leasing commissions;
we may be unable to pay off or refinance our indebtedness at maturity or the refinancing terms may be less favorable
than the terms of our original indebtedness;
payments of principal and interest on borrowings may leave us with insufficient cash resources to make the dividend
payments necessary to maintain our REIT qualification or may otherwise impose restrictions on our ability to make
distributions;
we may be forced to dispose of properties, possibly on disadvantageous terms;
we may violate restrictive covenants in our loan documents, which would entitle the lenders to accelerate our debt
obligations;
certain of the property subsidiaries’ loan documents may include restrictions that limit the subsidiary’s ability to take
certain actions with respect to the property, including restrictions on the subsidiary’s ability to make dividends to us or
restrictions that require us to obtain lender consent which could adversely affect our ability to sell, lease or otherwise
address issues with the property;
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we may be unable to hedge floating-rate debt, counterparties may fail to honor their obligations under our hedge
agreements, these agreements may not effectively hedge interest rate fluctuation risk, and, upon the expiration of any
hedge agreements, we would be exposed to then-existing market rates of interest and future interest rate volatility;
we may default on our obligations and the lenders or mortgagees may foreclose on our properties that secure their loans
and exercise their rights under any assignment of rents and leases;
we may be vulnerable to general adverse economic and industry conditions; and
we may be at a disadvantage compared to our competitors with less indebtedness.
If we default under a loan or indenture (including any default in respect of the financial maintenance and negative covenants
contained in the Credit Agreement, or the indenture governing the Senior Notes, we may automatically be in default under any
other loan or indenture that has cross-default provisions (including the Credit Agreement governing the Credit Facility), and (x)
further borrowings under the Credit Facility will be prohibited, and outstanding indebtedness under the Credit Facility, and our
indenture (including the indenture governing the Senior Notes) or such other loans may be accelerated and (y) to the extent any
such debt is secured, directly or indirectly, by any properties or assets, the lenders may foreclose on the properties or assets securing
such indebtedness.
In addition, increases in interest rates may impede our operating performance and payments of required debt service obligations
or amounts due at maturity, or creation of additional reserves under loan agreements or indentures, could adversely affect our
financial condition and operating results.
Further, any foreclosure on our properties could create taxable income without accompanying cash proceeds, which could
adversely affect our ability to meet the REIT dividend requirements imposed by the Internal Revenue Code.
The indenture governing our Senior Notes and the Credit Agreement governing the Credit Facility contain restrictive covenants
that limit our operating flexibility.
The indenture governing our Senior Notes and the Credit Agreement governing the Credit Facility require us to comply with
customary affirmative and negative covenants and other financial and operating covenants that, among other things, restrict our
ability to take specific actions, including restrictions on our ability to:
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consummate a merger, consolidation or sale of all or substantially all of our assets; and
incur or guarantee additional secured and unsecured indebtedness.
In addition, the indenture governing our Senior Notes requires us, among other things, to maintain a maximum unencumbered
leverage ratio and the Credit Agreement governing the Credit Facility requires us, among other things, to maintain a maximum
consolidated leverage ratio, a minimum fixed charge coverage ratio, a maximum secured leverage ratio, a maximum unencumbered
leverage ratio and a minimum unencumbered interest coverage ratio. The Credit Agreement governing the Credit Facility also
includes customary restrictions on, among others, liens, negative pledges, intercompany transfers, fundamental changes,
transactions with affiliates and restricted payments.
Our ability to comply with these and other provisions of the indenture governing our Senior Notes and the Credit Agreement
governing the Credit Facility may be affected by changes in our operating and financial performance, changes in general business
and economic conditions, adverse regulatory developments or other events adversely impacting us. Any failure to comply with
these covenants would constitute a default under the indenture governing our Senior Notes and/or the Credit Agreement, as
applicable, and would prevent further borrowings under the Credit Agreement and could cause those and other obligations to
become due and payable. If any of our indebtedness is accelerated, we may not be able to repay it.
Our organizational documents have no limitation on the amount of indebtedness that we may incur. As a result, we may become
more highly leveraged in the future, which could adversely affect our financial condition.
Our business strategy contemplates the use of debt to finance long-term growth. While we intend to limit our indebtedness,
our organizational documents contain no limitations on the amount of debt that we may incur. Further, our financing decisions
and related decisions regarding levels of debt may be determined by our Board of Directors in its discretion without stockholder
approval. As a result, we may be able to incur substantial additional debt, including secured debt, in the future, subject to us meeting
the financial and operating covenants described above, which could result in us becoming more highly leveraged and adversely
affecting our financial condition.
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Increases in interest rates would increase our debt service obligations and may adversely affect the refinancing of our existing
debt and our ability to incur additional debt, which could adversely affect our financial condition.
Certain of our borrowings bear interest at variable rates, and we may incur additional variable-rate debt in the future. Increases
in interest rates would result in higher interest expenses on our existing unhedged variable rate debt, and increase the costs of
refinancing existing debt or incurring new debt. Additionally, increases in interest rates may result in a decrease in the value of
our real estate and decrease the market price of our capital stock and could accordingly adversely affect our financial condition,
cash flow and results of operation.
We may not be able to generate sufficient cash flow to meet our debt service obligations.
Our ability to make payments on and to refinance our indebtedness, and to fund our operations, working capital and capital
expenditures, depends on our ability to generate cash. To a certain extent, our cash flow is subject to general economic, industry,
financial, competitive, operating, legislative, regulatory and other factors, many of which are beyond our control.
We cannot assure you that our business will generate sufficient cash flow from operations or that future sources of cash will
be available to us in an amount sufficient to enable us to pay amounts due on our indebtedness or to fund our other liquidity needs.
If we incur additional indebtedness in connection with any future acquisitions or development projects or for any other purpose,
our debt service obligations could increase. We may need to refinance all or a portion of our indebtedness before maturity. Our
ability to refinance our indebtedness or obtain additional financing will depend on, among other things:
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restrictions in the agreements governing our indebtedness;
general economic and capital market conditions;
the availability of credit from banks or other lenders;
investor confidence in us; and
our results of operations.
As a result, we may not be able to refinance our indebtedness on commercially reasonable terms, or at all. If we do not generate
sufficient cash flow from operations, and additional borrowings or refinancings or proceeds of asset sales or other sources of cash
are not available to us, we may not have sufficient cash to enable us to meet all of our obligations. Accordingly, if we cannot service
our indebtedness, we may have to take actions such as seeking additional equity, or delaying any strategic acquisitions and alliances
or capital expenditures, any of which could have a material adverse effect on our operations.
Adverse changes in our credit ratings could affect our borrowing capacity and borrowing terms.
Credit rating agencies continually evaluate their ratings for the companies that they follow, including us. The credit rating
agencies also evaluate our industry as a whole and may change their credit ratings for us based on their overall view of our industry.
Our Senior Notes are periodically rated by nationally recognized credit rating agencies, but we cannot be sure that credit rating
agencies will maintain their ratings on the Senior Notes. Our current corporate credit and issue-level ratings for our Senior Notes
are “BBB-” with a “stable” outlook from Standard & Poor’s Rating Services. Our corporate credit and issue-level ratings for our
Senior Notes are “Baa3” with a “stable” outlook assigned by Moody’s Investor Service, Inc. Our corporate credit and issue-level
ratings for our Senior Notes are “BBB-” with a “stable” outlook assigned by Fitch Ratings, Inc.
The credit ratings are based on our operating performance, liquidity and leverage ratios, overall financial position, and other
factors viewed by the credit rating agencies as relevant to our industry and the economic outlook in general. Our credit ratings can
adversely affect the cost and availability of capital, as well as the terms of any financing we obtain. Since we depend in part on
debt financing to fund our business, an adverse change in our credit ratings could have a material adverse effect on our financial
condition, liquidity, results of operations and the trading price of our Senior Notes.
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Risks Related to Equity
The Board of Directors may create and issue a class or series of common or preferred stock without stockholder approval.
Subject to applicable legal and regulatory requirements, the Board of Directors is empowered under our charter to amend our
charter from time to time to increase or decrease the aggregate number of shares of our stock or the number of shares of stock of
any class or series that we have authority to issue, to designate and issue from time to time one or more classes or series of stock
and to classify or reclassify any unissued shares of our Common Stock or preferred stock without stockholder approval. The Board
of Directors may determine the relative preferences, conversion or other rights, voting powers, restrictions, limitations as to
dividends or other distributions, qualifications or terms or conditions of redemption of any class or series of stock issued. As a
result, we may issue series or classes of stock with voting rights, rights to dividends or other rights, senior to the rights of holders
of our outstanding capital stock. The issuance of any such stock could also have the effect of delaying or preventing a change of
control transaction that might otherwise be in the best interests of our stockholders. In addition, future sales of shares of our
Common Stock or preferred stock may be dilutive to existing stockholders.
The trading price of our Common Stock has been and may continue to be subject to wide fluctuations.
The sales price of our Common Stock on the NYSE has fluctuated in recent quarters. Our stock price may fluctuate in response
to a number of events and factors, including as a result of future offerings of our securities, as a result of the events or realization
of the risks described in this “Risk Factors” section or in our future filings with the SEC, and as a result of changes to our dividend
yield relative to yields on other financial instruments (e.g., increases in interest rates resulting in higher yields on other financial
instruments may adversely affect the sales price of our Common Stock). In addition, the trading volume and price of our Common
Stock may fluctuate and be adversely impacted in response to a number of factors, including:
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actual or anticipated variations in our operating results, earnings, or liquidity, or those of our competitors;
changes in our dividend policy;
publication of research reports about us, our competitors, our tenants, or the REIT industry;
changes in market valuations of companies similar to us;
speculation in the press or investment community;
our failure to meet, or changes to, our earnings estimates, or those of any securities analysts;
increases in market interest rates;
adverse market reaction to the amount of or the maturity of our debt and our ability to refinance such debt and the terms
thereof;
adverse market reaction to any additional indebtedness we incur or equity or securities we may issue;
changes in our credit ratings;
changes in our key management;
the financial condition, liquidity, results of operations, and prospects of our tenants;
litigation and government investigations;
failure to maintain our REIT qualification; and
general market and economic conditions, including the current state of the credit and capital markets.
The issuance of additional equity securities may dilute earnings per share and existing equity holders.
Giving effect to the issuance of Common Stock in future potential offerings, the receipt of future potential net proceeds and
the use of those proceeds, additional equity offerings may have a dilutive effect on our expected earnings per share. Additionally,
we are not restricted from issuing additional shares of our Common Stock or preferred stock, including any securities that are
convertible into or exchangeable for, or that represent the right to receive, Common Stock or preferred stock or any substantially
similar securities in the future. The market price of our Common Stock could decline as a result of sales of a large number of shares
of our Common Stock in the market or the perception that such sales could occur.
Future offerings of debt, which would be senior to our Common Stock upon liquidation, or preferred equity securities that may
be senior to our Common Stock for purposes of dividend distributions or upon liquidation, may adversely affect the market
price of our Common Stock.
In the future, we may issue debt or preferred equity securities. Upon liquidation, holders of our debt securities and shares of
preferred stock and lenders with respect to other borrowings will receive distributions of our available assets prior to the holders
of our Common Stock. Additional equity offerings, including offerings of convertible preferred stock, may dilute the holdings of
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our existing stockholders or otherwise reduce the market price of our Common Stock, or both. Holders of our Common Stock are
not entitled to preemptive rights or other protections against dilution. Preferred stock, if issued, could have a preference on liquidating
distributions or a preference on distribution payments that could limit our ability to make distributions to holders of our Common
Stock. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond
our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, our stockholders bear the
risk of our future offerings reducing the market price of our Common Stock and diluting their stock holdings in us.
The change of control conversion feature of the Series F Preferred Stock may make it more difficult for a party to take over
the Company or discourage a party from taking over the Company.
Upon the occurrence of a change of control (as defined in the Articles Supplementary for the Series F Preferred Stock) the
result of which is that our Common Stock or the common securities of the acquiring or surviving entity are not listed on a national
stock exchange, holders of the Series F Preferred Stock will have the right (unless, prior to the change of control conversion date,
we have provided or provide notice of our election to redeem the Series F Preferred Stock) to convert some or all of their Series
F Preferred Stock into shares of our Common Stock (or equivalent value of alternative consideration). The change of control
conversion feature of the Series F Preferred Stock may have the effect of discouraging a third party from making an acquisition
proposal for the Company or of delaying, deferring or preventing certain change of control transactions of the Company under
circumstances that stockholders may otherwise believe are in their best interests.
Risks Relating to our Real Estate Investments
Because we own real property, we are subject to extensive environmental regulation, which creates uncertainty regarding future
environmental expenditures and liabilities.
Environmental laws regulate, and impose liability for, releases of hazardous or toxic substances into the environment. Under
various provisions of these laws, an owner or operator of real estate, such as us, is or may be liable for costs related to soil or
groundwater contamination on, in, or migrating to or from its property. In addition, persons who arrange for the disposal or treatment
of hazardous or toxic substances may be liable for the costs of cleaning up contamination at the disposal site. Such laws often
impose liability regardless of whether the person knew of, or was responsible for, the presence of the hazardous or toxic substances
that caused the contamination. The presence of, or contamination resulting from, any of these substances, or the failure to properly
remediate them, may adversely affect our ability to sell or lease our property or to borrow using such property as collateral. In
addition, persons exposed to hazardous or toxic substances may sue us for personal injury damages. As a result, in connection
with our current or former ownership, operation, management and development of real properties, we may be potentially liable
for investigation and cleanup costs, penalties, and damages under environmental laws. Further, environmental laws may impose
liabilities, costs or operating limitations on our tenants which could adversely affect our tenants’ operations and their ability to
make rental payments to us.
Although our properties are generally subjected to preliminary environmental assessments, known as Phase I assessments,
by independent environmental consultants that identify certain liabilities, Phase I assessments are limited in scope, and may not
include or identify all potential environmental liabilities or risks associated with the property. Further, any environmental liabilities
that arose since the date the studies were done would not be identified in the assessments. Unless required by applicable laws or
regulations, we may not further investigate, remedy or ameliorate the liabilities disclosed in the Phase I assessments.
We cannot assure you that these or other environmental studies identified all potential environmental liabilities, or that we
will not incur material environmental liabilities in the future. If we do incur material environmental liabilities in the future, we
may face significant remediation costs, and we may find it difficult to finance or sell any affected properties.
We may be subject to risks relating to investments in mortgage, bridge or mezzanine loans which may adversely affect our
investment and our ability to sell those loans held for sale.
We have in the past and in the future may invest in mortgage, bridge or mezzanine loans which investment involves risk of
defaults on those loans caused by many conditions beyond our control, including local and other economic conditions (such as
the decline of the underlying property value from our initial investment) affecting real estate values and interest rate levels. If there
are defaults under these loans, we may not be able to repossess and sell quickly or foreclose on any properties securing such loans
which could reduce the value of our investment in the defaulted loan. An action to foreclose on a property securing a loan is
regulated by state statutes and regulations and is subject to many of the delays and expenses of any lawsuit brought in connection
with the foreclosure if the defendant raises defenses or counterclaims. In the event of default by a borrower, these restrictions,
among other things, may impede our ability to sell our remaining investment or foreclose on or sell the collateral or to obtain
proceeds sufficient to repay all amounts due to us on the loan, which could reduce the value of our investment in the defaulted
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loan. As of December 31, 2018, our investments of mortgage, bridge or mezzanine loans notes receivable were classified as held
for sale, however, we may in the future determine to invest in mortgage, bridge or mezzanine loans.
We are subject to risks relating to real estate-related securities, including commercial mortgage backed securities (“CMBS”).
Real estate-related securities are often unsecured and also may be subordinated to other obligations of the issuer. As a result,
investments in real estate-related securities may be subject to risks of (1) limited liquidity in the secondary trading market in the
case of unlisted or thinly traded securities, (2) substantial market price volatility resulting from changes in prevailing interest rates
in the case of traded equity securities, (3) subordination to the prior claims of banks and other senior lenders to the issuer, (4) the
operation of mandatory sinking fund or call/redemption provisions during periods of declining interest rates that could cause the
issuer to reinvest redemption proceeds in lower yielding assets, (5) the possibility that earnings of the issuer or that income from
collateral may be insufficient to meet debt service and distribution obligations and (6) the declining creditworthiness and potential
for insolvency of the issuer during periods of rising interest rates and economic slowdown or downturn. These risks may adversely
affect the value of outstanding real estate-related securities, the ability of the obliged parties to repay principal and interest or make
distribution payments and our ability to sell these securities we determine to market for sale.
CMBS are securities that evidence interests in, or are secured by, a single commercial mortgage loan or a pool of commercial
mortgage loans. Accordingly, these securities are subject to the risks listed above and all of the risks of the underlying mortgage
loans. CMBS are issued by investment banks and non-regulated financial institutions, and are not insured or guaranteed by the
U.S. government. The value of CMBS may change due to shifts in the market’s perception of issuers and regulatory or tax changes
adversely affecting the mortgage securities market as a whole and may be negatively impacted by any dislocation in the mortgage-
backed securities market in general.
CMBS are also subject to several risks created through the securitization process. Subordinate CMBS are paid interest only
to the extent that there are funds available to make payments. To the extent the collateral pool includes delinquent loans, there is
a risk that interest payments on subordinate CMBS will not be fully paid. Subordinate CMBS are also subject to greater credit risk
than those CMBS that are more highly rated. In certain instances, third-party guarantees or other forms of credit support can reduce
the credit risk.
Our build-to-suit acquisitions are subject to additional risks related to properties under development.
From time to time, we engage in build-to-suit acquisitions and the acquisition of properties under development. In connection
with these businesses, we enter into purchase and sale arrangements with sellers or developers of suitable properties under
development or construction. In such cases, we are generally obligated to purchase the property at the completion of construction,
provided that the construction conforms to definitive plans, specifications, and costs approved by us in advance, and if other
conditions have been met, such as there being an effective lease for the property, and the tenant having accepted the property and
commenced paying rent. We may also engage in development and construction activities involving existing properties, including
the construction of new buildings or the expansion of existing facilities (typically at the request of a tenant) or the development
or build-out of vacant space. We may advance significant amounts in connection with certain development projects.
As a result, we are subject to potential development risks and construction delays and the resultant increased costs and risks,
as well as the risk of loss of certain amounts that we have advanced should a development project not be completed. To the extent
that we engage in development or construction projects, we may be subject to uncertainties associated with obtaining permits or
re-zoning for development, environmental and land use concerns of governmental entities and/or community groups, and the
builder’s ability to build in conformity with plans, specifications, budgeted costs and timetables. If a developer or builder fails to
perform, we may terminate the purchase, modify the construction contract or resort to legal action to compel performance (or in
certain cases, we may elect to take over the project and pursue completion of the project ourselves). A developer’s or builder’s
performance may also be affected or delayed by conditions beyond that party’s control. Delays in obtaining permits or completion
of construction could also give tenants the right to terminate preconstruction leases.
We may incur additional risks if we make periodic progress payments or other advances to builders before they complete
construction. These and other such factors can result in increased project costs or the loss of our investment. Although we rarely
engage in construction activities relating to space that is not already leased to one or more tenants, to the extent that we do so, we
may be subject to normal lease-up risks relating to newly constructed projects. We also will rely on rental revenue and expense
projections and estimates of the fair market value of property upon completion of construction when agreeing upon a price at the
time we acquire the property. If these projections are inaccurate, we may pay too much for a property and our return on our
investment could suffer. If we contract with a development company for a newly developed property, there is a risk that money
advanced to that development company for the project may not be fully recoverable if the developer fails to successfully complete
the project.
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Risks Related to the Services Agreement
We are subject to conflicts of interest relating to the Cole REITs.
During the initial term of the Services Agreement, property acquisition opportunities will be allocated among us and the real
estate programs sponsored by CCA pursuant to an asset allocation policy and in accordance with the terms of the Services Agreement.
The Cole REITs have characteristics, including targeted investment types, and investment objectives and criteria substantially
similar to our own. As a result, we may be seeking to acquire properties and real estate-related investments at the same time as
the Cole REITs.
During the initial term of the Services Agreement, in the event that an investment opportunity is identified that may be suitable
for more than one of us or the other programs sponsored by CCA and for which more than one of such entities has sufficient
uninvested funds, then an allocation committee, which is comprised of employees of the Company and employees of CIM Group,
LLC, CCA or their respective affiliates, will examine the following factors, among others, in determining the entity for which the
investment opportunity is most appropriate:
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the investment objective of each entity;
the anticipated operating cash flows of each entity and the cash requirements of each entity;
the effect of the acquisition both on diversification of each entity’s investments by type of property, geographic area and
tenant concentration;
the amount of funds available to each entity and the length of time such funds have been available for investment;
the policy of each entity relating to leverage of properties;
the income tax effects of the purchase to each entity; and
the size of the investment.
If, in the judgment of the allocation committee, the investment opportunity may be equally appropriate for more than one
program, then the entity that has had the longest period of time elapse since it was allocated an investment opportunity of a similar
size and type (e.g., office, industrial, retail properties or anchored shopping centers) will be allocated such investment opportunity.
If a subsequent development, such as a delay in the closing of the acquisition or a delay in the construction of a property, causes
any such investment, in the opinion of the allocation committee, to be more appropriate for an entity other than the entity that
committed to make the investment, the allocation committee may determine that the Company or a program sponsored by CCA
will make the investment.
For programs sponsored by CCA that commenced operations on or after March 5, 2013, the Company retains a right of first
refusal for all opportunities to acquire real estate and real estate-related assets or portfolios with a purchase price greater than $100
million. This right of first refusal applies to CCIT II, CCIT III and CCPT V, but does not apply to CCPT IV or INAV.
There can be no assurance that these policies will be adequate to address all of the conflicts that may arise or will address such
conflicts in a manner that is favorable to us.
Risks Related to our Organization and Structure
We are a holding company with no direct operations. As a result, we rely on funds received from the Operating Partnership
to pay liabilities and dividends, our stockholders’ claims will be structurally subordinated to all liabilities of the Operating
Partnership and our stockholders do not have any voting rights with respect to the Operating Partnership’s activities, including
the issuance of additional OP Units.
We are a holding company and conduct all of our operations through the Operating Partnership. We do not have, apart from
our ownership of the Operating Partnership, any independent operations. As a result, we rely on distributions from the Operating
Partnership to pay any dividends we might declare on shares of our Common Stock. We also rely on distributions from the Operating
Partnership to meet our debt service and other obligations, including our obligations to make distributions required to maintain
our REIT qualification. The ability of subsidiaries of the Operating Partnership to make distributions to the Operating Partnership,
and the ability of the Operating Partnership to make distributions to us in turn, will depend on their operating results and on the
terms of any loans that encumber the properties owned by them. Such loans may contain lockbox arrangements, reserve
requirements, financial covenants and other provisions that restrict the distribution of funds. In the event of a default under these
loans, the defaulting subsidiary would be prohibited from distributing cash. As a result, a default under any of these loans by the
borrower subsidiaries could cause us to have insufficient cash to make distributions on our Common Stock required to maintain
our REIT qualification.
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In addition, because we are a holding company, stockholders’ claims will be structurally subordinated to all existing and future
liabilities and obligations (whether or not for borrowed money) of the Operating Partnership and its subsidiaries. Therefore, in the
event of our bankruptcy, liquidation or reorganization, claims of our stockholders will be satisfied only after all of our and the
Operating Partnership’s and its subsidiaries’ liabilities and obligations have been paid in full.
As of December 31, 2018, we owned approximately 97.6% of the OP Units in the Operating Partnership. However, the
Operating Partnership may issue additional OP Units in the future. Such issuances could reduce our ownership percentage in the
Operating Partnership. Because our stockholders would not directly own any such OP Units, they would not have any voting rights
with respect to any such issuances or other partnership-level activities of the Operating Partnership.
Our charter and bylaws and Maryland law contain provisions that may delay or prevent a change of control transaction.
Our charter, subject to certain exceptions, limits any person to actual or constructive ownership of no more than 9.8% in value
of the aggregate of our outstanding shares of stock and not more than 9.8% (in value or in number of shares, whichever is more
restrictive) of any class or series of our shares of stock. In addition, our charter provides that we may not consolidate, merge, sell
all or substantially all of our assets or engage in a share exchange unless such actions are approved by the affirmative vote of at
least two-thirds of the Board of Directors. The ownership limits and the other restrictions on ownership and transfer of our stock
and the Board approval requirements contained in our charter may delay or prevent a transaction or a change of control that might
involve a premium price for our Common Stock or otherwise be in the best interest of our stockholders.
Certain provisions in the LPA may delay, defer or prevent unsolicited acquisitions of us.
Certain provisions in the LPA may delay or make more difficult unsolicited acquisitions of us or changes in our control. These
provisions could discourage third parties from making such proposals, although some stockholders might consider such proposals,
if made, desirable. These provisions include, among others:
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redemption rights of qualifying parties;
the ability of the General Partner in some cases to amend the LPA without the consent of the limited partners;
the right of the limited partners to consent to transfers of the general partnership interest of the General Partner and mergers
or consolidations of the Company under specified limited circumstances; and
restrictions relating to our qualification as a REIT under the Internal Revenue Code.
The LPA also contains other provisions that may have the effect of delaying, deferring or preventing a transaction or a change
of control that might involve a premium price for our Common Stock or otherwise be in the best interest of our stockholders.
Tax protection provisions on certain properties could limit our operating flexibility.
We have agreed with ARC Real Estate Partners, LLC, an affiliate of ARC Properties Advisors, LLC (the “Former Manager”),
to indemnify it against any adverse tax consequences if we were to sell, convey, transfer or otherwise dispose of all or any portion
of the interests in the properties that were acquired by us in our formation transactions, in a taxable transaction. These tax protection
provisions apply until September 6, 2021, which is the 10th anniversary of the closing of our initial public offering (“IPO”).
Although it may be in our stockholders’ best interest that we sell one or more of these properties, it may be economically
disadvantageous for us to do so because of these obligations. We have also agreed to make debt available for ARC Real Estate
Partners, LLC to guarantee. We agreed to these provisions at the time of our IPO in order to assist ARC Real Estate Partners, LLC
in preserving its tax position after its contribution of its interests in our initial properties. As a result, we may be required to incur
and maintain more debt than we would otherwise.
The Company’s fiduciary duties as sole general partner of the Operating Partnership could create conflicts of interest.
The Company has fiduciary duties to the Operating Partnership and the limited partners in the Operating Partnership, the
discharge of which may conflict with the interests of its stockholders. The LPA provides that, in the event of a conflict between
the duties owed by the Company’s directors to the Company and the duties that the Company owes in its capacity as the sole
general partner of the Operating Partnership to the Operating Partnership’s limited partners, the Company’s directors are under no
obligation to give priority to the interests of such limited partners. As a holder of OP Units, the Company will have the right to
vote on certain amendments to the LPA (which require approval by a majority in interest of the limited partners, including the
Company) and individually to approve certain amendments that would adversely affect the rights of the Operating Partnership’s
limited partners, as well as the right to vote on mergers and consolidations of the Company in its capacity as sole general partner
of the Operating Partnership in certain limited circumstances. These voting rights may be exercised in a manner that conflicts with
the interests of the Company’s stockholders. For example, the Company cannot adversely affect the limited partners’ rights to
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receive distributions, as set forth in the LPA, without their consent, even though modifying such rights might be in the best interest
of the Company’s stockholders generally.
The Board of Directors may change significant corporate policies without stockholder approval.
Our investment, financing, borrowing and dividend policies and our policies with respect to other activities, including growth,
debt, capitalization, operations and other governance matters, will be determined by the Board of Directors. These policies may
be amended or revised at any time and from time to time at the discretion of the Board of Directors without a vote of our stockholders.
In addition, the Board of Directors may change our policies with respect to conflicts of interest provided that such changes are
consistent with applicable legal requirements. A change in these policies could have an adverse effect on our business, financial
condition, liquidity and results of operations and our ability to satisfy our debt service obligations and to make distributions to our
stockholders and unitholders.
Our rights and the rights of our stockholders to take action against our directors and officers are limited under Maryland law.
Maryland law provides that a director or officer has no liability in that capacity if he or she performs his or her duties in
good faith, in a manner he or she reasonably believes to be in our best interests and with the care that an ordinarily prudent person
in a like position would use under similar circumstances. In addition, Maryland law permits a Maryland corporation to include in
its charter a provision limiting the liability of its directors and officers to the corporation and its stockholders for money damages
except for liability resulting from (1) actual receipt of an improper personal benefit or profit in money, property or services or (2)
active and deliberate dishonesty established by a final judgment as being material to the cause of action. Our charter contains such
a provision and limits the liability of our directors and officers to the maximum extent permitted by Maryland law. Maryland law
requires us to indemnify our directors and officers for liability actually incurred in connection with any proceeding to which they
may be made, or threatened to be made, a party, except to the extent that the act or omission of the director or officer was material
to the matter giving rise to the proceeding and was either committed in bad faith or was the result of active and deliberate dishonesty,
the director or officer actually received an improper personal benefit in money, property or services, or, in the case of any criminal
proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. As a result, we and our
stockholders may have more limited rights against our directors and officers than might otherwise exist under common law. In
addition, our charter obligates us to advance the reasonable defense costs incurred by our directors and officers. Finally, we have
entered into agreements with our directors and officers pursuant to which we have agreed to indemnify them to the maximum
extent permitted by Maryland law.
U.S. Federal Income and Other Tax Risks
Our failure to remain qualified as a REIT would subject us to U.S. federal income tax and potentially state and local tax, and
would adversely affect our operations and the market price of our capital stock.
We elected to be taxed as a REIT commencing with the taxable year ended December 31, 2011 and believe we have operated,
and intend to operate, in a manner that has allowed us to qualify as a REIT and will allow us to continue to qualify as a REIT.
However, we may terminate our REIT qualification if the Board of Directors determines that not qualifying as a REIT is in our
best interests, or the qualification may be terminated inadvertently. Our qualification as a REIT depends upon our satisfaction of
certain asset, income, organizational, distribution, stockholder ownership and other requirements on a continuing basis. We
structured our activities in a manner designed to satisfy the requirements for qualification as a REIT. However, the REIT qualification
requirements are extremely complex and interpretation of the U.S. federal income tax laws governing qualification as a REIT is
limited. Accordingly, we cannot be certain that we have been or will be successful in qualifying to be taxed as a REIT. Our ability
to satisfy the asset tests depends on our analysis of the characterization and fair market values of our assets, some of which are
not susceptible to a precise determination, and for which we will not obtain independent appraisals. Our compliance with the
annual income and quarterly asset requirements also depends on our ability to successfully manage the composition of our income
and assets on an ongoing basis. Accordingly, if certain of our operations were to be recharacterized by the Internal Revenue Service
(the “IRS”), such recharacterization would jeopardize our ability to satisfy the requirements for qualification as a REIT.
Furthermore, future legislative, judicial or administrative changes to the U.S. federal income tax laws could result in our
disqualification as a REIT for past or future periods.
If we fail to qualify as a REIT for any taxable year and we do not qualify for certain statutory relief provisions, we will be
subject to U.S. federal income tax on our taxable income at corporate rates. In addition, we would generally be disqualified from
treatment as a REIT for the four taxable years following the year of losing our REIT qualification. Losing our REIT qualification
would reduce our net earnings because of the additional tax liability. In addition, distributions to stockholders would no longer
qualify for the dividends paid deduction, and we would no longer be required to make distributions and, accordingly, distributions
the Operating Partnership makes to its unitholders could be similarly reduced. If this occurs, we might be required to borrow funds
or liquidate some investments in order to pay the applicable tax.
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Even if we continue to qualify as a REIT, in certain circumstances, we may incur tax liabilities that would reduce our cash
available for distribution to our stockholders and unitholders.
Even if we continue to qualify as a REIT, we may be subject to U.S. federal, state and local income taxes. For example, net
income from the sale of properties that are considered held for sale and not for investment (a “prohibited transaction” under the
Internal Revenue Code) will be subject to a 100% tax. In addition, we may not make sufficient distributions to avoid income and
excise taxes on retained income. We also may decide to retain net capital gain we earn from the sale or other disposition of our
property or other assets and pay U.S. federal income tax directly on such income. In that event, our stockholders would be treated
for federal income tax purposes as if they earned that income and paid the tax on it directly. However, stockholders that are tax-
exempt, such as charities or qualified pension plans, would have no benefit from their deemed payment of such tax liability unless
they file U.S. federal income tax returns and thereon seek a refund of such tax. We may, in certain circumstances, be required to
pay an excise or penalty tax (which could be significant in amount) in order to utilize one or more relief provisions under the
Internal Revenue Code to maintain our qualification as a REIT.
A REIT may own up to 100% of the stock of one or more taxable REIT subsidiaries (“TRS”). Both the subsidiary and the
REIT must jointly elect to treat the subsidiary as a TRS of the REIT. A TRS may hold assets and earn income that would not be
qualifying assets or income if held or earned directly by a REIT. We may use TRSs generally to hold properties for sale in the
ordinary course of business or to hold assets or conduct activities that we cannot conduct directly as a REIT. Our TRS will be
subject to applicable U.S. federal, state, local and foreign income tax on their taxable income. These rules also impose a 100%
excise tax on certain transactions between a TRS and its parent REIT that are not conducted on an arm’s-length basis.
Not all taxing jurisdictions recognize the favorable tax treatment afforded to REITs under the Internal Revenue Code. As such,
we may be subject to regular corporate net income taxes in certain state, local or foreign taxing jurisdictions. In addition, we, the
Operating Partnership, our TRS, and/or other entities through which we conduct our business may also be subject to state, local
or foreign income, franchise, sales, transfer, excise or other taxes. Any taxes that we incur directly or indirectly will reduce our
cash available for distribution to our stockholders and unitholders. Additionally, changes in state, local or foreign tax law could
reduce the cash flow from certain investments made by us and could make such investments less attractive to potential buyers
when we seek to liquidate such investments.
To qualify as a REIT we must meet annual distribution requirements, which may force us to forgo otherwise attractive
opportunities or borrow funds during unfavorable market conditions. This could delay or hinder our ability to meet our
investment objectives and reduce your overall return.
In order to qualify as a REIT, we must distribute annually to our stockholders at least 90% of our REIT taxable income (which
does not equal net income as calculated in accordance with U.S. GAAP), determined without regard to the deduction for dividends
paid and excluding any net capital gain. We will be subject to U.S. federal income tax on our undistributed taxable income and
net capital gain and to a 4% nondeductible excise tax on any amount by which dividends we pay with respect to any calendar year
are less than the sum of (a) 85% of our ordinary income, (b) 95% of our capital gain net income and (c) 100% of our undistributed
income from prior years. These requirements could cause us to distribute amounts that otherwise would be spent on investments
in real estate assets and it is possible that we might be required to borrow funds, possibly at unfavorable rates, or sell assets to
fund these dividends or make taxable stock dividends. Although we intend to make distributions sufficient to meet the annual
distribution requirements and to avoid U.S. federal income and excise taxes on our earnings while we qualify as a REIT, it is
possible that we might not always be able to do so.
If the Operating Partnership or certain other subsidiaries fail to qualify as a partnership or are not otherwise disregarded for
U.S. federal income tax purposes, then we would cease to qualify as a REIT.
We intend to maintain the status of the Operating Partnership as a partnership for U.S. federal income tax purposes. However,
if the IRS were to successfully challenge the status of the Operating Partnership as a partnership for such purposes, it would be
taxable as a corporation. This would result in our failure to qualify as a REIT and would cause us to be subject to a corporate-level
tax on our income. This would substantially reduce our cash available to pay distributions and the yield on your investments. In
addition, if one or more of the partnerships or limited liability companies through which the Operating Partnership owns its
properties, in whole or in part, loses its characterization as a partnership and is otherwise not disregarded for U.S. federal income
tax purposes, then it would be subject to taxation as a corporation, thereby reducing distributions to the Operating Partnership.
Such a recharacterization of a subsidiary entity could also threaten our ability to maintain our REIT qualification.
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Recent legislation substantially modified the taxation of REITs and their shareholders, and the effects of such legislation and
related regulatory action are uncertain.
On December 22, 2017, the TCJA was signed into law. The TCJA makes major changes to the Internal Revenue Code, including
a number of provisions of the Internal Revenue Code that affect the taxation of REITs and their stockholders. Among the changes
made by the TCJA are permanently reducing the generally applicable corporate tax rate, generally reducing the tax rate applicable
to individuals and other non-corporate taxpayers for tax years beginning after December 31, 2017 and before January 1, 2026,
eliminating or modifying certain previously allowed deductions (including substantially limiting interest deductibility and, for
individuals, the deduction for non-business state and local taxes), and, for taxable years beginning after December 31, 2017 and
before January 1, 2026, providing for preferential rates of taxation through a deduction of up to 20% (subject to certain limitations)
on most ordinary REIT dividends and certain trade or business income of non-corporate taxpayers. The TCJA also imposes new
limitations on the deduction of net operating losses and requires us to recognize income for tax purposes no later than when we
take it into account on our financial statements, which may result in us having to make additional taxable distributions to our
stockholders in order to comply with REIT distribution requirements or avoid taxes on retained income and gains. The effect of
the significant changes made by the TCJA is highly uncertain, and administrative guidance will be required in order to fully evaluate
the effect of many provisions. The effect of any technical corrections with respect to the TCJA could have an adverse effect on us
or our stockholders. Investors should consult their tax advisors regarding the implications of the TCJA on their investment in our
capital stock.
Dividends payable by REITs generally do not qualify for the reduced tax rates available for some dividends.
Currently, the maximum U.S. federal income tax rate applicable to qualified dividend income payable to U.S. stockholders
that are individuals, trusts and estates is 20% (not including the net investment income tax). Dividends payable by REITs, however,
generally are not eligible for this reduced rate. Although this does not adversely affect the taxation of REITs or dividends payable
by REITs, the more favorable rates applicable to regular corporate qualified dividends could cause investors who are individuals,
trusts and estates to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT
corporations that pay dividends, which could adversely affect the value of the shares of REITs, including our Common Stock.
Pursuant to the TCJA, non-corporate recipients of dividends from a REIT (other than capital gains dividends and dividends eligible
for treatment as qualified dividends) may deduct up to 20% of such REIT dividends for taxable years beginning before January
1, 2026. This deduction mitigates but does not eliminate the difference in effective tax rates between REIT dividends and dividends
paid by C corporations.
If we were considered to have actually or constructively paid a “preferential dividend” to certain of our stockholders, our status
as a REIT could be adversely affected.
For our taxable years that ended on or before December 31, 2014, and for any year in which we fail to be a “publicly offered”
REIT within the meaning of Section 562 of the Internal Revenue Code, in order for our distributions to be counted as satisfying
the annual distribution requirements for REITs, and to provide us with a REIT-level tax deduction, the distributions could not have
been “preferential dividends.” We believe we qualify as a publicly offered REIT, but there can be no assurance that we will continue
to so qualify. A dividend is not a preferential dividend if the distribution is pro rata among all outstanding shares of stock within
a particular class, and in accordance with the preferences among different classes of stock as set forth in our organizational
documents. There is uncertainty as to the IRS’s position regarding whether certain arrangements that REITs have with their
stockholders could give rise to the inadvertent payment of a preferential dividend. While we believe that our operations have been
structured in such a manner that we will not be treated as inadvertently paying preferential dividends, there is no de minimis or
reasonable cause exception with respect to preferential dividends under the Internal Revenue Code. Therefore, if the IRS were to
take the position that we inadvertently paid a preferential dividend prior to January 1, 2015 (or any later year in which we are not
a publicly offered REIT), we may be deemed either to (a) have distributed less than 100% of our REIT taxable income and be
subject to tax on the undistributed portion, or (b) have distributed less than 90% of our REIT taxable income and our status as a
REIT could be terminated for the year in which such determination is made and for the four taxable years following the year of
termination if we were unable to cure such failure.
Complying with REIT requirements may limit our ability to hedge our liabilities effectively and may cause us to incur tax
liabilities.
The REIT provisions of the Internal Revenue Code may limit our ability to hedge our liabilities. Any income from a hedging
transaction we enter into to manage risk of interest rate changes, price changes or currency fluctuations with respect to borrowings
made or to be made to acquire or carry real estate assets or to offset certain other positions, if properly identified under applicable
Treasury Regulations, does not constitute “gross income” for purposes of the 75% or 95% gross income tests. To the extent that
we enter into other types of hedging transactions, the income from those transactions will likely be treated as non-qualifying income
for purposes of one or both of the gross income tests. As a result of these rules, we may need to limit our use of advantageous
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hedging techniques or implement those hedges through a TRS. This could increase the cost of our hedging activities because our
TRSs would be subject to tax on gains or expose us to greater risks associated with changes in interest rates than we would otherwise
want to bear. In addition, losses in a TRS generally will not provide any tax benefit, except for being carried forward against future
taxable income of such TRS.
Complying with REIT requirements may force us to forgo or liquidate otherwise attractive investment opportunities.
To qualify as a REIT, we must ensure that we meet the REIT gross income tests annually and that at the end of each calendar
quarter, at least 75% of the value of our assets consists of cash, cash items, government securities and qualified REIT real estate
assets, including certain mortgage loans and certain kinds of mortgage-related securities. The remainder of our investment in
securities (other than government securities, qualified real estate assets and stock of a TRS) generally cannot include more than
10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any
one issuer. In addition, in general, no more than 5% of the value of our assets (other than government securities, qualified real
estate assets and stock of a TRS) can consist of the securities of any one issuer, no more than 20% of the value of our total assets
can be represented by securities of one or more TRSs and no more than 25% of the value of our total assets can be represented by
certain debt securities of publicly offered REITs. If we fail to comply with these requirements at the end of any calendar quarter,
we must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to
avoid losing our REIT qualification and suffering adverse tax consequences. As a result, we may be required to liquidate assets
from our portfolio or not make otherwise attractive investments in order to maintain our qualification as a REIT. These actions
could have the effect of reducing our income and amounts available for distribution to our stockholders.
Re-characterization of sale-leaseback transactions may cause us to lose our REIT status.
We may purchase properties and lease them back to the sellers of such properties. The IRS could challenge our characterization
of certain leases in any such sale-leaseback transactions as “true leases,” which allows us to be treated as the owner of the property
for U.S. federal income tax purposes. In the event that any sale-leaseback transaction is challenged and re-characterized as a
financing transaction or loan for U.S. federal income tax purposes, deductions for depreciation and cost recovery relating to such
property would be disallowed. If a sale-leaseback transaction were so re-characterized, we might fail to satisfy the REIT qualification
“asset tests” or the “income tests” and, consequently, lose our REIT status effective with the year of re-characterization.
Alternatively, such a recharacterization could cause the amount of our REIT taxable income to be recalculated, which might also
cause us to fail to meet the distribution requirement for a taxable year and thus lose our REIT status.
We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability, reduce our operating
flexibility and reduce the market price of our capital stock.
In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of U.S. federal
income tax laws applicable to investments similar to an investment in shares of our Common Stock. Additional changes to the tax
laws are likely to continue to occur, and we cannot assure you that any such changes will not adversely affect our taxation and our
ability to qualify as a REIT or the taxation of a stockholder. Any such changes could have an adverse effect on an investment in
our shares or on the market value or the resale potential of our assets. Our stockholders are urged to consult with their tax advisor
with respect to the impact of recent legislation on their investment in our shares and the status of legislative, regulatory or
administrative developments and proposals and their potential effect on an investment in our shares.
Although REITs generally receive better tax treatment than entities taxed as regular corporations, it is possible that future
legislation would result in a REIT having fewer tax advantages, and it could become more advantageous for a company that invests
in real estate to elect to be treated for U.S. federal income tax purposes as a regular corporation. As a result, our charter provides
the Board of Directors with the power, under certain circumstances, to revoke or otherwise terminate our REIT election and cause
us to be taxed as a regular corporation, without the vote of our stockholders. The Board of Directors has fiduciary duties to us and
our stockholders and could only cause such changes in our tax treatment if it determines in good faith that such changes are in the
best interest of our stockholders.
27
Non-U.S. stockholders may be subject to U.S. federal withholding tax and may be subject to U.S. federal income tax upon the
disposition of our shares.
Gain recognized by a non-U.S. stockholder upon the sale or exchange of our Common Stock generally will not be subject to
U.S. federal income taxation unless such stock constitutes a “U.S. real property interest” (“USRPI”) under the Foreign Investment
in Real Property Tax Act of 1980 (the “FIRPTA”). Our Common Stock will not constitute a USRPI so long as we are a “domestically-
controlled qualified investment entity.” A domestically-controlled qualified investment entity includes a REIT if at all times during
a specified testing period, less than 50% in value of such REIT’s stock is held directly or indirectly by non-U.S. stockholders. We
believe that we are a domestically-controlled qualified investment entity. However, because our Common Stock is and will be
publicly traded, no assurance can be given that we are or will be a domestically-controlled qualified investment entity.
Even if we do not qualify as a domestically-controlled qualified investment entity at the time a non-U.S. stockholder sells or
exchanges our Common Stock, gain arising from such a sale or exchange would not be subject to U.S. taxation under FIRPTA as
a sale of a USRPI if: (a) our Common Stock is “regularly traded,” as defined by applicable Treasury regulations, on an established
securities market, and (b) such non-U.S. stockholder owned, actually and constructively, 10% or less of our Common Stock at any
time during the five-year period ending on the date of the sale. We anticipate that our shares will be “regularly traded” on an
established securities market for the foreseeable future, although, no assurance can be given that this will be the case. We encourage
you to consult your tax advisor to determine the tax consequences applicable to you if you are a non-U.S. stockholder.
Our property taxes could increase due to property tax rate changes or reassessment, which would impact our cash flows.
Even if we qualify as a REIT for federal income tax purposes, we will be required to pay some state and local taxes on our
properties. The real property taxes on our properties may increase as property tax rates change or as our properties are assessed
or reassessed by taxing authorities. Therefore, the amount of property taxes we pay in the future may increase substantially. If the
property taxes we pay increase and if any such increase is not reimbursable under the terms of our lease, then our cash flows will
be impacted, and our ability to pay expected distributions to our stockholders and unitholders could be adversely affected.
The share ownership restrictions of the Internal Revenue Code for REITs and the 9.8% share ownership limit in our charter
may inhibit market activity in our shares of stock and restrict our business combination opportunities.
In order to qualify as a REIT, five or fewer individuals, as defined in the Internal Revenue Code, may not own, actually or
constructively, more than 50% in value of our issued and outstanding shares of stock at any time during the last half of each taxable
year, other than the first year for which a REIT election is made. Attribution rules in the Internal Revenue Code determine if any
individual or entity actually or constructively owns our shares of stock under this requirement. Additionally, at least 100 persons
must beneficially own our shares of stock during at least 335 days of a taxable year for each taxable year, other than the first year
for which a REIT election is made. To help insure that we meet these tests, among other purposes, our charter restricts the acquisition
and ownership of our shares of stock.
Our charter, with certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve
our qualification as a REIT while we so qualify. Unless exempted by the Board of Directors, for so long as we qualify as a REIT,
our charter prohibits, among other limitations on ownership and transfer of shares of our stock, any person from beneficially or
constructively owning (applying certain attribution rules under the Internal Revenue Code) more than 9.8% in value of the aggregate
of our outstanding shares of stock and more than 9.8% (in value or in number of shares, whichever is more restrictive) of any class
or series of our shares of stock. The Board of Directors, in its sole discretion and upon receipt of certain representations and
undertakings, may exempt a person (prospectively or retrospectively) from the ownership limits. However, the Board of Directors
may not, among other limitations, grant an exemption from these ownership restrictions to any proposed transferee whose
ownership, direct or indirect, in excess of the 9.8% ownership limit would result in the termination of our qualification as a REIT.
These restrictions on transferability and ownership will not apply, however, if the Board of Directors determines that it is no longer
in our best interest to continue to qualify as a REIT or that compliance with the restrictions is no longer required in order for us
to continue to so qualify as a REIT. These ownership limits could delay or prevent a transaction or a change in control that might
involve a premium price for our Common Stock or otherwise be in the best interest of our stockholders.
Item 1B. Unresolved Staff Comments.
None.
28
Item 2. Properties.
Our leases primarily consist of corporate offices, including our headquarters located in Phoenix, Arizona. As of December 31,
2018, the Company owned 3,994 operating properties comprising 95.0 million square feet of retail and commercial space located
in 49 states and Puerto Rico, which includes properties owned through consolidated joint ventures. The rentable space at these
properties was 98.8% leased with a weighted-average remaining lease term of 8.9 years. See Item 7. Management’s Discussion
and Analysis of Financial Condition and Results of Operations — Real Estate Portfolio Metrics for a discussion of the properties
we hold for rental operations and Schedule III – Real Estate and Accumulated Depreciation for a detailed listing of such properties.
Item 3. Legal Proceedings.
The information contained under the heading “Litigation” in Note 10 – Commitments and Contingencies to our consolidated
financial statements is incorporated by reference into this Part I, Item 3. Except as set forth therein, as of the end of the period
covered by this Annual Report on Form 10-K, we are not a party to, and none of our properties are subject to, any material pending
legal proceedings.
Item 4. Mine Safety Disclosures.
Not applicable.
29
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Market Information
Effective July 31, 2015, we transferred the listing of the General Partner’s Common Stock and Series F Preferred Stock to
the NYSE from NASDAQ Global Select Market. The General Partner’s Common Stock and Series F Preferred Stock trade under
the trading symbols “VER” and “VER PRF,” respectively.
Stock Price Performance Graph
Set forth below is a line graph comparing the cumulative total stockholder return on the General Partner’s Common Stock,
based on the market price of the Common Stock and assuming reinvestment of dividends, with the FTSE National Association of
Real Estate Investment Trusts All Equity REITs Index (“FTSE NAREIT All Equity REITs”) and the S&P 500 Index (“S&P 500”)
for the period commencing December 31, 2013 and ending December 31, 2018. The graph assumes an investment of $100 on
December 31, 2013.
The graph above and the accompanying text are not “soliciting material,” are not deemed filed with the SEC and are not to
be incorporated by reference in any filing by us under the Securities Act or the Exchange Act, whether made before or after the
date hereof and irrespective of any general incorporation language in any such filing. In addition, the stock price performance in
the graph above is not indicative of future stock price performance.
Distributions
On February 20, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.1375 per share of Common
Stock (equaling an annualized dividend rate of $0.55 per share) for the first quarter of 2019 to stockholders of record as of March 29,
2019, which will be paid on April 15, 2019. An equivalent distribution by the Operating Partnership is applicable per OP Unit.
Our future distributions may vary and will be determined by the General Partner’s Board of Directors based upon the circumstances
prevailing at the time, including our financial condition, operating results, estimated taxable income and REIT distribution
requirements, and may be adjusted at the discretion of the Board of Directors.
As of February 19, 2019, the General Partner had approximately 3,441 registered stockholders of record of its Common Stock.
This figure does not reflect the beneficial ownership of shares held in nominee name. There is no established trading market for
the Operating Partnership's OP Units. As of February 19, 2019, there were 26 record holders of the OP Units.
Recent Sales of Unregistered Securities
During 2018, the General Partner issued an aggregate of 32,439 shares of Common Stock in redemption of 32,439 Limited
Partner OP Units (which refers to OP Units issued to parties other than the General Partner). These shares of Common Stock were
issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act. We relied on the exemption under
Section 4(a)(2) based upon factual representations received from the limited partner who received the shares of Common Stock.
30
Securities Authorized for Issuance Under Equity Compensation Plans
The following table shows the amount of securities remaining available for future issuance under our equity compensation
plans as of December 31, 2018:
Plan Category
Equity compensation plans approved by security
holders
Equity compensation plans not approved by security
holders
Total
_______________________________________________
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights
(a)
Weighted-average
exercise price of
outstanding options,
warrants and rights
(b)
Securities Available For Future
Issuance Under Equity
Compensation Plans (1)
(excluding securities reflected
in column (a)) (c)
2,763,165
$
—
2,763,165
$
6.84
—
6.84
89,395,172
—
89,395,172
(1) Represents the total number of shares of Common Stock reserved for the issuance of equity under our equity-based compensation plans. Shares available
under the Equity Plan are equal to 10.0% of the total number of issued and outstanding shares of our Common Stock (on a fully diluted basis assuming the
redemption of all OP Units for shares of Common Stock) at any time. As such, the number of shares available for issuance under the Equity Plan changes
automatically with changes in the total number of outstanding shares of Common Stock, outstanding OP Units, and dilutive securities. See Note 12 – Equity-
based Compensation to our consolidated financial statements for a discussion of the Company’s equity-based compensation plans.
Repurchases of Equity Securities
Period
October 1, 2018 - October 31, 2018
November 1, 2018 - November 30, 2018
December 1, 2018 - December 31, 2018
Total
_______________________________________________
Total Number of
Shares/ Units
Purchased (1)
Average Price
Paid Per Share/
Unit (2)
16,538
—
—
16,538
$
$
7.16
—
—
7.16
(1) We are authorized to repurchase shares of the General Partner’s Common Stock to satisfy employee withholding tax obligations related to equity-based
compensation. During the fourth quarter of 2018, the General Partner and the Operating Partnership repurchased shares of Common Stock and corresponding
OP Units that were issued to the General Partner, respectively, in order to satisfy the minimum tax withholding obligation for state and federal payroll taxes
on employee restricted shares.
(2) The price paid per share/unit is based on the weighted average closing price on the respective vesting date.
On May 12, 2017, the Company’s Board of Directors authorized the repurchase of up to $200.0 million of the General Partner’s
outstanding shares of Common Stock over 12 months from the date of authorization, as market conditions warranted, under the
2017 Share Repurchase Program. On May 3, 2018, the Company’s Board of Directors terminated the 2017 Share Repurchase
Program and authorized the 2018 Share Repurchase Program that permits the Company to repurchase up to $200.0 million of its
outstanding Common Stock through May 3, 2019, as market conditions warrant. The 2018 Share Repurchase Program has similar
terms as the 2017 Share Repurchase Program. During the year ended December 31, 2018, the Company repurchased approximately
6.4 million shares of Common Stock in multiple open market transactions for $44.6 million as part of the 2017 Share Repurchase
Program and approximately 0.8 million shares of Common Stock in multiple open market transactions for $5.6 million as part of
the 2018 Share Repurchase Program. None of the share repurchases under the 2018 Share Repurchase Program occurred during
the fourth quarter of 2018. As of December 31, 2018, the Company had $194.4 million available for share repurchases under the
2018 Share Repurchase Program. Additional shares of Common Stock repurchased by the Company under the 2018 Share
Repurchase Program, if any, will be returned to the status of authorized but unissued shares of Common Stock.
Item 6. Selected Financial Data.
The following selected financial data should be read in conjunction with the accompanying consolidated financial statements
and related notes thereto and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
appearing elsewhere in this Annual Report on Form 10-K. Prior periods have been reclassified to conform to current presentation,
as discussed in Note 2 – Summary of Significant Accounting Policies to our consolidated financial statements. The selected financial
data (in thousands, except share and per share amounts) presented below was derived from our consolidated financial statements:
31
Balance sheet data:
Total real estate investments, at cost
Total assets
Total debt, net
Total liabilities
Total equity
Operating data:
Rental revenue
Litigation, merger and other non-routine costs, net of
insurance recoveries (1)
Impairments
Total other operating expenses
Total gain (loss) on dispositions and assets held for sale
Interest and other expenses, net
Provision for income taxes
(Loss) income from continuing operations
Income (loss) from discontinued operations, net of income
taxes (2)
Net (loss) income
Net loss (income) attributable to non-controlling interests (3)
Net (loss) income attributable to General Partner
Cash flow data:
Net cash flows provided by operating activities
Net cash flows provided by (used in) investing activities
Net cash flows (used in) provided by financing activities
Per share data:
Basic and diluted net loss per share from continuing
operations attributable to common stockholders
Basic and diluted net income (loss) per share from
discontinued operations attributable to common
stockholders
Basic and diluted net loss per share attributable to common
stockholders (4)
Weighted-average number of shares of Common Stock
outstanding - basic (5)(6)
2018
2017
2016
2015
2014
December 31,
$ 15,604,839
$ 13,963,493
$ 6,087,922
$ 6,663,349
$ 7,300,144
$ 15,615,375
$ 14,705,578
$ 6,073,444
$ 6,662,702
$ 8,042,876
$ 15,584,442
$ 15,587,574
$ 6,367,248
$ 6,968,041
$ 8,619,533
$ 16,784,721
$ 17,405,866
$ 8,059,802
$ 8,691,907
$ 8,713,959
$ 18,292,560
$ 20,427,136
$ 10,425,778
$ 11,044,806
$ 9,382,330
2018
2017
2016
2015
2014
Year Ended December 31,
$ 1,257,867
$ 1,252,285
$ 1,335,447
$ 1,441,135
$ 1,375,699
290,963
54,647
834,644
94,331
47,960
50,548
897,524
61,536
3,884
182,820
959,714
45,524
33,628
91,755
1,025,962
(72,311)
(258,568)
(259,412)
(304,304)
(351,882)
199,685
100,547
1,116,266
(277,031)
(398,947)
(7,313)
(5,101)
(91,725)
3,695
(88,030)
2,256
(6,882)
51,495
(19,117)
32,378
(560)
(7,136)
(76,887)
(123,937)
(200,824)
4,961
(4,589)
(138,992)
(724,090)
(184,500)
(286,822)
(323,492)
(1,010,912)
7,139
33,727
$
$
$
$
$
$
(85,774) $
31,818
$
(195,863) $
(316,353) $
(977,185)
493,914
151,119
$
$
793,267
$
797,948
(274,106) $
881,637
$
$
859,695
$
502,887
941,417
$ (2,527,726)
(655,406) $
(756,595) $ (1,506,985) $ (2,151,604) $ 2,415,555
(0.17) $
(0.02) $
(0.16) $
(0.23) $
(1.01)
0.00
(0.02)
(0.13)
(0.20)
(0.35)
(0.16) $
(0.04) $
(0.29) $
(0.43) $
(1.36)
969,092,268
974,098,652
931,422,844
903,360,763
793,150,098
Cash dividends declared per common share
$
0.55
$
0.55
$
0.55
$
0.28
$
1.08
_______________________________________________
(1) The Company's operations were impacted by litigation and investigations prompted by the results of the Audit Committee Investigation beginning in 2014
through 2018 and significant mergers during 2014. During 2018, the Company expensed litigation settlement costs of $233.2 million.
(2) On February 1, 2018, the Company completed the sale of its investment management segment, Cole Capital. Substantially all of the Cole Capital segment
is reflected in the financial statements as discontinued operations.
(3) Represents income or loss attributable to limited partners and consolidated joint venture partners.
(4) Amounts may not total due to rounding.
(5) For all periods presented, the effect of certain unvested restricted shares or units, stock options, OP Units outstanding and convertible preferred shares were
excluded from the weighted-average share calculation as the effect would be antidilutive.
(6) For 2014, the effect of long-term incentive plan units of the OP was also excluded from the weighted-average share calculation as the effect would be
antidilutive.
32
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements
and notes thereto appearing elsewhere in this Annual Report on Form 10-K. We make statements in this section that are forward-
looking statements within the meaning of the federal securities laws. For a complete discussion of forward-looking statements,
see the section in this report entitled “Forward-Looking Statements.” Certain risks may cause our actual results, performance or
achievements to differ materially from those expressed or implied by the following discussion. For a discussion of such risk factors,
see the section in this report entitled “Risk Factors.”
Overview
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant
commercial properties in the U.S. The Company has 3,994 retail, restaurant, office and industrial operating properties with an
aggregate 95.0 million square feet, of which 98.8% was leased as of December 31, 2018, with a weighted-average remaining lease
term of 8.9 years. On February 1, 2018, the Company completed the sale of its investment management segment, Cole Capital.
The assets, liabilities and related financial results of substantially all of the Cole Capital segment are reflected in the financial
statements as discontinued operations.
Critical Accounting Policies and Significant Accounting Estimates
Our accounting policies have been established to conform with U.S. GAAP. The preparation of financial statements in
conformity with U.S. GAAP requires us to use judgment in the application of accounting policies, including making estimates and
assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Management
believes that we have made these estimates and assumptions in an appropriate manner and in a way that accurately reflects our
financial condition. We continually test and evaluate these estimates and assumptions using our historical knowledge of the business,
as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from these
estimates and assumptions. If our judgment or interpretation of the facts and circumstances relating to the various transactions had
been different, it is possible that different accounting policies would have been applied, thus resulting in a different presentation
of the financial statements. Additionally, other companies may utilize different assumptions or estimates that may impact
comparability of our results of operations to those of companies in similar businesses. We believe the following critical accounting
policies govern the significant judgments and estimates used in the preparation of our financial statements, which should be read
in conjunction with the more complete discussion of our accounting policies and procedures included in Note 2 – Summary of
Significant Accounting Policies to our consolidated financial statements.
Loss Contingencies
The Company records a liability in the consolidated financial statements for loss contingencies when a loss is known or
considered probable and the amount is reasonably estimable. We review these matters on a quarterly basis. If the reasonable estimate
of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount
of the range is accrued. If a material loss is reasonably possible but not known or probable, and the amount is reasonably estimable,
the estimated loss or range of loss is disclosed. The risks and uncertainties involved in applying the principles related to estimating
loss contingencies include, but are not limited to, the following:
•
•
Litigation outcomes are inherently unpredictable and are often resolved over long periods of time.
Estimating probable and reasonably possible losses requires the analysis of multiple possible outcomes that often depend
on judgments about potential actions by third parties, future changes in facts and circumstances, differing interpretations
of the law, assessments of the amount of damages, and other factors beyond our control. There is the potential for a
material adverse effect on our financial statements if one or more matters are resolved in a particular period in an amount
materially in excess of what we anticipated.
• We do not recognize insurance recoveries until any contingencies relating to the insurance recovery claim have been
resolved.
See Note 10 – Commitments and Contingencies for additional information.
Goodwill Impairment
We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate
the carrying value may not be recoverable. The risks and uncertainties involved in applying the principles related to goodwill
impairment include, but are not limited to, the following:
33
• We estimate the fair value using discounted cash flows and relevant competitor multiples.
• We monitor factors that may impact the fair value including market comparable company multiples, interest rates and
global economic conditions.
• We use a combined income and market approach in evaluations for potential impairment, which requires management
to make key assumptions related to revenue growth rate, cash flow assumptions, discount rate and selection of comparable
companies.
The Company performed its annual test of goodwill for impairment and determined an estimated fair value of $15.2 billion,
$15.1 billion and $18.3 billion at the 2018, 2017, and 2016 measurement dates, respectively, which exceeded the carrying values
by 13.4%, 8.1% and 21.0%, respectively. As such, no goodwill impairment was recorded during the years ended December 31,
2018, 2017 or 2016 in (loss) income from continuing operations. If all other assumptions were held constant, increasing the discount
rate by 0.5% would decrease the amount that the 2018 fair value exceeds the 2018 carrying value from $1.8 billion to $1.0 billion.
Real Estate Investment Impairment
We invest in real estate assets and subsequently monitor those investments quarterly for impairment, including the review of
real estate properties subject to direct financing leases. Additionally, we record depreciation and amortization related to our
investments. The risks and uncertainties involved in applying the principles related to real estate investments include, but are not
limited to, the following:
•
•
•
•
•
The estimated useful lives of our depreciable assets affect the amount of depreciation and amortization recognized on
our investments.
The review of impairment indicators and subsequent determination of the undiscounted future cash flows could require
us to reduce the value of assets and recognize an impairment loss.
The fair value of held for sale assets is estimated by management. This estimated value could result in a reduction of the
carrying value of the asset.
The evaluation of real estate assets for potential impairment requires the Company’s management to exercise significant
judgment and make certain key assumptions. There are inherent uncertainties in making these estimates such as market
conditions and performance and sustainability of the Company’s tenants.
Changes related to management’s intent to sell or lease the real estate assets used to develop the forecasted cash flows
may have a material impact on the Company’s financial results.
Allocation of Purchase Price of Real Estate Assets
In connection with our acquisition of properties, we allocate the purchase price to the tangible and intangible assets and
liabilities acquired based on their respective estimated fair values. Tangible assets consist of land, buildings, fixtures and tenant
improvements. Intangible assets consist of above- and below- market lease values and the value of in-place leases. Our purchase
price allocations are developed utilizing third-party appraisal reports, industry standards and management experience. The risks
and uncertainties involved in applying the principles related to purchase price allocations include, but are not limited to, the
following:
•
•
The value allocated to land as opposed to buildings, fixtures and tenant improvements affects the amount of depreciation
expense we record. If more value is attributed to land, depreciation expense is lower than if more value is attributed to
buildings, fixtures and tenant improvements;
Intangible lease assets and liabilities can be significantly affected by estimates, including market rent, lease term including
renewal options at rental rates below estimated market rental rates, carrying costs of the property during a hypothetical
expected lease-up period, and current market conditions and costs, including tenant improvement allowances and rent
concessions; and
• We determine whether any financing assumed is above- or below- market based upon comparison to similar financing
terms for similar investment properties.
Recently Issued Accounting Pronouncements
Recently issued accounting pronouncements are described in Note 2 – Summary of Significant Accounting Policies to our
consolidated financial statements.
34
Operating Highlights and Key Performance Indicators
2018 Activity
•
•
•
•
•
•
•
•
•
•
Acquired controlling financial interests in 52 commercial properties, including one land parcel for build-to-suit
development, for an aggregate purchase price of $502.7 million, which includes $2.6 million of external acquisition-
related expenses that were capitalized.
Disposed of 149 properties and one property owned by an unconsolidated joint venture for an aggregate sales price of
$560.5 million, of which the Company’s share was $521.4 million, resulting in consolidated proceeds of $502.3 million
after repayment of the unconsolidated joint venture’s mortgage loan and closing costs. We recorded an aggregate gain of
$96.9 million related to these sales.
Sold substantially all of Cole Capital for approximately $120.0 million in cash.
Entered into settlement agreements with various plaintiffs in connection with litigation filed as a result of the findings of
the Audit Committee Investigation for $217.5 million. The Company also entered into settlement agreements for $15.7
million subsequent to December 31, 2018, which was accrued and included in litigation, merger and other non-routine
costs, net of insurance recoveries in the consolidated statements of operations for the year ended December 31, 2018.
On May 23, 2018, entered into the Credit Agreement which allows for maximum borrowings of $2.9 billion, consisting
of a $2.0 billion Revolving Credit Facility and a $900.0 million Credit Facility Term Loan. In connection with entering
into the Credit Agreement, the existing 2014 Credit Agreement was terminated.
On August 1, 2018, the Company’s 2018 Convertible Notes matured and the principal outstanding balance of $597.5
million, plus accrued and unpaid interest thereon, was repaid with proceeds from the Revolving Credit Facility.
On October 16, 2018, the Company closed a senior note offering, consisting of $550.0 million aggregate principal amount
of the OP’s 4.625% Senior Notes due 2025. The OP used the net proceeds from the offering of the notes to repay borrowings
under its Revolving Credit Facility.
Total secured debt decreased by $153.9 million, from $2.1 billion to $1.9 billion.
Repurchased approximately 6.4 million shares of Common Stock in multiple open market transactions, at a weighted
average share price of $6.94, for an aggregate purchase price of $44.6 million, as part of the 2017 Share Repurchase
Program and 0.8 million shares of Common Stock in multiple open market transactions, at a weighted average share price
of $6.95 for an aggregate purchase price of $5.6 million, as part of the 2018 Share Repurchase Program.
Declared a quarterly dividend of $0.1375 per share of Common Stock for each quarter of 2018, representing an annualized
dividend rate of $0.55 per share.
35
Real Estate Portfolio Metrics
In managing our portfolio, we are committed to diversification by property type, tenant, geography and industry. Below is a
summary of our operating property type diversification and our top ten concentrations as of December 31, 2018, based on annualized
rental income of $1.2 billion.
36
Our financial performance is influenced by the timing of acquisitions and dispositions and the operating performance of our
real estate properties. The following table shows the property statistics of our operating properties, excluding properties owned
through our unconsolidated joint ventures, as of December 31, 2018, 2017 and 2016:
Portfolio Metrics
Operating properties
Rentable square feet (in millions)
Economic occupancy rate (2)
Investment-grade tenants (3)
____________________________________
(1) Omits the impact, if any, of the Excluded Properties.
2018
3,994
95.0
98.8%
41.9%
2017 (1)
4,091
94.4
98.8%
39.6%
2016
4,142
93.3
98.3%
41.2%
(2) Economic occupancy rate equals the sum of square feet leased (including space subject to month-to-month agreements) divided by total square feet.
(3)
Investment-grade tenants are those with a credit rating of BBB- or higher by Standard & Poor’s Financial Services LLC or a credit rating of Baa3 or higher
by Moody’s Investor Service, Inc. The ratings may reflect those assigned by Standard & Poor’s Financial Services LLC or Moody’s Investor Service, Inc.
to the lease guarantor or the parent company, as applicable.
The following table shows the economic metrics of our operating properties, excluding properties owned through our
unconsolidated joint ventures, as of December 31, 2018, 2017 and 2016:
Economic Metrics
Weighted-average lease term (in years) (2)
Lease rollover: (2)(3)
Annual average
Maximum for a single year
____________________________________
(1) Omits the impact, if any, of the Excluded Properties.
2018
8.9
5.5%
7.2%
2017 (1)
9.5
4.8%
7.3%
2016
9.9
4.3%
7.4%
(2) Based on annualized rental income of our real estate portfolio as of the respective reporting date.
(3) Through the end of the next five years as of the respective reporting date.
37
Operating Performance
In addition, management uses the following financial metrics to assess our operating performance (dollar amounts in thousands,
except per share amounts). Data presented includes both continuing operations, which primarily represent the Company's real
estate operations, and discontinued operations, which represent substantially all of Cole Capital, except as otherwise indicated.
Year Ended December 31,
2018
2017
2016
Financial Metrics
Rental revenue
$ 1,257,867
$ 1,252,285
(Loss) income from continuing operations
Income (loss) from discontinued operations, net of income taxes
Basic and diluted net loss per share from continuing operations attributable
to common stockholders
Basic and diluted net income (loss) per share from discontinued operations
attributable to common stockholders
Basic and diluted net loss per share attributable to common stockholders (1)
FFO attributable to common stockholders and limited partners from
continuing operations (2)
FFO attributable to common stockholders and limited partners from
discontinued operations (2)
FFO attributable to common stockholders and limited partners (2)
AFFO attributable to common stockholders and limited partners from
continuing operations (2)
AFFO attributable to common stockholders and limited partners from
discontinued operations (2)
AFFO attributable to common stockholders and limited partners (2)
AFFO attributable to common stockholders and limited partners from
continuing operations per diluted share (2)
AFFO attributable to common stockholders and limited partners from
discontinued operations per diluted share (2)
AFFO attributable to common stockholders and limited partners per
diluted share (2)
____________________________________
$
$
$
$
$
$
$
$
$
$
(91,725) $
$
3,695
$
51,495
(19,117) $
$ 1,335,447
(76,887)
(123,937)
(0.17) $
(0.02) $
(0.16)
0.00
(0.16) $
(0.02)
(0.04) $
(0.13)
(0.29)
434,371
$
672,225
$
737,353
3,695
438,066
$
(19,117)
653,108
$
(123,937)
613,416
710,688
$
702,556
$
723,354
3,202
36,213
18,103
713,890
$
738,769
$
741,457
0.72
$
0.70
$
0.00
0.04
0.72
$
0.74
$
0.76
0.02
0.78
(1) Amounts may not total due to rounding. See Note 14 – Net Income (Loss) Per Share/Unit for calculation of net (loss) income per share.
(2) See the Non-GAAP Measures section below for descriptions of our non-GAAP measures and reconciliations to the most comparable U.S. GAAP measure.
38
Property Financing
Our mortgage notes payable consisted of the following as of December 31, 2018, 2017 and 2016 (dollar amounts in thousands):
December 31, 2018
December 31, 2017 (4)
December 31, 2016
_______________________________________________
Encumbered
Properties
Outstanding
Loan Amount
Weighted Average
Effective Interest
Rate (1)(2)
Weighted
Average
Maturity (3)
459
471
619
$
$
$
1,917,132
2,054,838
2,629,949
4.93%
4.88%
4.95%
3.4
4.1
4.6
(1) Weighted average effective interest rates ranged from 3.1% to 6.1% at December 31, 2018, 3.1% to 7.2% at December 31, 2017, and 2.0% to 7.75% at
December 31, 2016.
(2) Weighted average interest rate is computed using the interest rate in effect until the anticipated repayment date. Should the loan not be repaid at the anticipated
repayment date, the applicable interest rate would increase as specified in the respective loan agreement until the extended maturity date.
(3) Weighted average years remaining to maturity is computed using the anticipated repayment date as specified in each loan agreement, where applicable.
(4) Omits the Excluded Property and the related outstanding loan amount of $16.2 million and interest rate of 9.48%.
In addition, we have financing which is not secured by interests in real property, which is described under Liquidity and Capital
Resources.
Future Lease Expirations
The following is a summary of lease expirations for the next 10 years and beyond at the operating properties we owned as
of December 31, 2018 (dollar amounts and square feet in thousands):
Year of Expiration
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Thereafter
Total
Number
of Leases
Expiring (1)
Square Feet
Square Feet as
a % of Total
Portfolio
Annualized
Rental Income
Expiring
Annualized Rental
Income Expiring as a
% of Total Portfolio
139
207
192
262
316
194
271
222
360
317
766
3,246
2,331
3,526
8,491
9,365
6,593
9,334
4,324
9,654
7,939
6,275
26,014
93,846
2.4% $
3.5%
8.9%
9.9%
7.0%
9.9%
4.7%
10.2%
8.3%
6.6%
27.4%
98.8% $
35,949
40,754
76,624
81,816
82,859
110,212
60,665
84,105
104,748
77,301
396,079
1,151,112
3.1%
3.5%
6.7%
7.1%
7.2%
9.6%
5.3%
7.3%
9.1%
6.7%
34.4%
100.0%
_______________________________________________
(1) The Company has certain leases comprised of multiple properties.
Results of Operations
On February 1, 2018, the Company sold substantially all of Cole Capital, which is presented as discontinued operations for
all periods presented. The Company’s continuing operations represent primarily those of the real estate investment segment. The
operating expense reimbursements line item has been combined into rental revenue for prior periods presented to be consistent
with the current year presentation.
Rental Revenue
The table below sets forth, for the periods presented, rental revenue information and the dollar amount change year over year
(dollar amounts in thousands):
Rental revenue
$
1,257,867
$
1,252,285
$
1,335,447
$
5,582
$
(83,162)
Year Ended December 31,
2018
2017
2016
2018 vs 2017
Increase/(Decrease)
2017 vs 2016
Increase/(Decrease)
39
2018 vs 2017 – The increase in rental revenue of $5.6 million during the year ended December 31, 2018 as compared to the
year ended December 31, 2017 was primarily due to the acquisition and disposition of real estate properties. Subsequent to January
1, 2017, the Company acquired 140 occupied properties for an aggregate purchase price of $1.2 billion and disposed of 286
consolidated properties, of which 69 were vacant, for an aggregate sales price of $1.1 billion.
2017 vs 2016 – The decrease in rental revenue of $83.2 million during the year ended December 31, 2017 as compared to the
year ended December 31, 2016 was primarily due to the disposition of 438 consolidated properties subsequent to January 1, 2016.
Operating Expenses
The table below sets forth, for the periods presented, certain operating expense information and the dollar amount change
year over year (dollar amounts in thousands):
Year Ended December 31,
2018
2017
2016
2018 vs 2017
Increase/(Decrease)
2017 vs 2016
Increase/(Decrease)
Acquisition-related
$
3,632
$
3,402
$
1,321
$
230
$
2,081
Litigation, merger and other non-routine
costs, net of insurance recoveries
Property operating
General and administrative
Depreciation and amortization
Impairments
290,963
126,461
63,933
640,618
54,647
47,960
128,717
58,603
706,802
50,548
3,884
144,428
51,927
762,038
182,820
243,003
(2,256)
5,330
(66,184)
4,099
Total operating expenses
$
1,180,254
$
996,032
$
1,146,418
$
184,222
$
44,076
(15,711)
6,676
(55,236)
(132,272)
(150,386)
Acquisition-Related Expenses
2018 vs 2017 - Acquisition-related expenses, which consist of allocated internal salaries related to time spent on acquiring
commercial properties and costs associated with unconsummated deals, remained relatively constant during the year ended
December 31, 2018 as compared to the same period in 2017.
2017 vs 2016 - The increase of $2.1 million in acquisition-related expenses for the year ended December 31, 2017, as compared
to the same period in 2016 was primarily due to an increase in allocated internal salaries resulting from time spent on acquiring
commercial properties during the year ended December 31, 2017. The Company acquired 88 properties and three land parcels for
an aggregate purchase price of $748.8 million during the year ended December 31, 2017 as compared with the acquisition of eight
properties for an aggregate purchase price of $100.2 million during the year ended December 31, 2016.
Litigation, Merger and Other Non-Routine Costs, Net of Insurance Recoveries
2018 vs 2017 - The increase of $243.0 million during the year ended December 31, 2018 as compared to the same period in
2017 was primarily due to litigation settlements related to litigation filed as a result of the findings of the Audit Committee
Investigation of $233.2 million during the year ended December 31, 2018. Related litigation costs increased $21.2 million for the
year ended December 31, 2018 as compared to the same period in 2017, offset by the reversal of an accrual of $10.9 million, as
the Company was legally released from certain advancement obligations. In addition, insurance recoveries of $2.3 million were
recognized during the year ended December 31, 2018 related to the litigation resulting from prior mergers.
2017 vs 2016 - The increase of $44.1 million during the year ended December 31, 2017, as compared to the same period in
2016 was due to an increase of $25.2 million in legal fees incurred related to the Audit Committee Investigation and related litigation
and investigations during the year ended December 31, 2017 as compared to the same period in 2016. Additionally, the Company
recognized $21.2 million of insurance recoveries during the year ended December 31, 2016, of which $10.5 million related to
litigation resulting from prior mergers and $10.7 million related to the Audit Committee Investigation and related litigation and
investigations. No insurance recoveries were recognized during the year ended December 31, 2017 related to the litigation resulting
from prior mergers.
Property Operating Expenses
2018 vs 2017 – Property operating expenses such as taxes, insurance, ground rent and maintenance include both reimbursable
and non-reimbursable property expenses. The decrease in property operating expenses of $2.3 million during the year ended
December 31, 2018 as compared to the same period in 2017 was primarily due to the acquisition and disposition of real estate
properties. Subsequent to January 1, 2017, the Company acquired 140 occupied properties for an aggregate purchase price of $1.2
billion and disposed of 286 consolidated properties, of which 69 were vacant, for an aggregate sales price of $1.1 billion.
40
2017 vs 2016 – The decrease in property operating expenses of $15.7 million during the year ended December 31, 2017 as
compared to the same period in 2016 was primarily due to the disposition of 438 consolidated properties subsequent to January
1, 2016.
General and Administrative Expenses
2018 vs 2017 – The increase of $5.3 million during the year ended December 31, 2018 as compared to the same period in
2017 was primarily due to an increase of $5.5 million of compensation and benefits, including equity-based compensation.
2017 vs 2016 – The increase of $6.7 million during the year ended December 31, 2017 as compared to the same period in
2016 was primarily due to an increase of $6.8 million of compensation and benefits, including equity-based compensation.
Depreciation and Amortization Expenses
2018 vs 2017 – The decrease of $66.2 million during the year ended December 31, 2018 as compared to the same period in
2017 was primarily due to furniture and fixtures that were fully depreciated during 2017 and 2018, as they had reached the end of
their useful lives.
2017 vs 2016 – The decrease of $55.2 million during the year ended December 31, 2017 as compared to the same period in
2016 was primarily related to the disposition of 438 consolidated properties subsequent to January 1, 2016. The Company also
recorded $50.5 million and $182.8 million of impairment charges on real estate investments during the years ended December 31,
2017 and 2016, respectively, which reduced the carrying value being depreciated and amortized.
Impairments
2018 vs 2017 – The increase in impairments of $4.1 million during the year ended December 31, 2018 as compared to the
same period in 2017 was primarily attributable to management’s change in strategy related to certain retail properties which
management determined, based on discussions with the current tenants, will not be re-leased, offset by a decrease in impairments
related to industrial properties. The Company impaired 70 properties during the year ended December 31, 2018 as compared to
69 properties during the year ended December 31, 2017.
2017 vs 2016 – The decrease in impairments of $132.3 million during the year ended December 31, 2017 as compared to the
same period in 2016 was primarily due to a decrease in the number of properties impaired from 153 properties during the year
ended December 31, 2016 to 69 properties during the year ended December 31, 2017. In addition, the decrease was also due to
management identifying certain properties for potential sale as part of its portfolio management strategy to reduce exposure to
office properties during the year ended December 31, 2016 as well as the Chapter 11 bankruptcy filed by Ovation Brands, Inc.
during 2016.
Other (Expense) Income, Provision for Income Taxes and Income (Loss) from Discontinued Operations
The table below sets forth, for the periods presented, certain financial information and the dollar amount change year over
year (dollar amounts in thousands):
2018
2017
2016
2018 vs 2017
Increase/(Decrease)
2017 vs 2016
Increase/(Decrease)
Year Ended December 31,
Interest expense
$
(280,887) $
(289,766) $
(317,376) $
(8,879) $
(27,610)
Gain (loss) on extinguishment and
forgiveness of debt, net
Other income, net
Equity in income and gain on disposition of
unconsolidated entities
Gain (loss) on derivative instruments, net
Gain on disposition of real estate and real
estate assets held for sale, net
Provision for income taxes
Income (loss) from discontinued operations,
net of income taxes
5,360
14,735
1,869
355
94,331
(5,101)
18,373
6,242
2,763
2,976
61,536
(6,882)
(771)
5,251
9,783
(1,191)
45,524
(7,136)
3,695
(19,117)
(123,937)
(13,013)
8,493
(894)
(2,621)
32,795
(1,781)
22,812
19,144
991
(7,020)
4,167
16,012
(254)
104,820
41
Interest Expense
2018 vs 2017 – The decrease of $8.9 million during the year ended December 31, 2018 as compared to the same period in
2017 was primarily due to the repayment of the 2018 Convertible Notes of $597.5 million and a $153.9 million reduction of secured
debt, partially offset by the issuance of $550.0 million of the 2025 Senior Notes and an increase in net borrowings under the credit
facilities of $218.0 million. In addition, there was a decrease in amortization of deferred financing costs of $3.1 million related to
the credit facilities during the year ended December 31, 2018 as compared to the same period in 2017, which was due to lower
deferred financing costs incurred in connection with the entrance into the Credit Agreement during the year ended December 31,
2018 as compared to the deferred financing costs incurred in connection with the 2014 Credit Agreement.
2017 vs 2016 – The decrease of $27.6 million during the year ended December 31, 2017 as compared to the same period in
2016 was primarily due to a $579.9 million reduction of secured debt, partially offset by the issuance of $600.0 million of Senior
Notes and a reduction in net borrowings under the credit facilities of $315.0 million.
Gain (Loss) on Extinguishment and Forgiveness of Debt, Net
2018 vs 2017 – Gain (loss) on extinguishment and forgiveness of debt, net decreased $13.0 million during the year ended
December 31, 2018 as compared to the same period in 2017. During the year ended December 31, 2018, the Company entered
into a deed-in-lieu of foreclosure agreement with the lender of a mortgage loan, secured by one property, which resulted in a gain
on forgiveness of debt of $5.2 million. During the same period in 2017, the Company entered into deed-in-lieu of foreclosure
agreements with the lenders of three mortgage loans, secured by six properties, which resulted in a gain on forgiveness of debt of
$20.5 million, which was offset by the write-off of $2.0 million of deferred financing costs related to the termination of the 2014
Credit Agreement.
2017 vs 2016 – Gain (loss) on extinguishment and forgiveness of debt, net increased $19.1 million during the year ended
December 31, 2017 as compared to the same period in 2016. During the year ended December 31, 2017, the Company entered
into deed-in-lieu of foreclosure agreements with the lenders of three mortgage loans, secured by six properties, which resulted in
a gain on forgiveness of debt of $20.5 million. There were no comparable transactions resulting in gains on forgiveness of debt
during the year ended December 31, 2016.
Other Income, Net
2018 vs 2017 – The increase of $8.5 million during the year ended December 31, 2018 as compared to the same period in
2017 was primarily due to a $5.1 million gain on measuring the Company’s investments in the Cole REITs at fair value after the
investments were no longer accounted for using the equity method, $4.8 million received related to a fully reserved loan receivable
and a gain of $1.7 million related to the sale of three mortgage notes, offset by a loss of $2.2 million related to the sale of six
CMBS and a reduction of $1.2 million in 1031 real estate program revenues during the year ended December 31, 2018.
2017 vs 2016 – The increase of $1.0 million during the year ended December 31, 2017 as compared to the same period in
2016 was primarily due to post-closing adjustments of $1.6 million, recorded in accordance with the purchase and sale agreement
during the year ended December 31, 2016, related to a multi-tenant asset portfolio sale completed in 2014, offset by a decrease in
interest income related to the Company’s investment securities and mortgage notes receivable of $0.6 million.
Equity in Income and Gain on Disposition of Unconsolidated Entities
2018 vs 2017 – Equity in income and gain on disposition of unconsolidated entities decreased $0.9 million during the year
ended December 31, 2018 as compared to the same period in 2017. During the year ended December 31, 2018, the Company
recorded a $0.7 million gain on the disposition and liquidation of one property owned by an unconsolidated joint venture. During
the year ended December 31, 2017, the Company recorded a $1.9 million gain on the disposition of one land parcel owned by one
unconsolidated joint venture.
2017 vs 2016 – Equity in income and gain on disposition of unconsolidated entities decreased $7.0 million during the year
ended December 31, 2017 as compared to the same period in 2016. During the year ended December 31, 2017, the Company
recorded a gain of $1.9 million related to the disposition of one land parcel owned by one unconsolidated joint venture. During
the year ended December 31, 2016, the Company recorded a gain of $10.2 million related to the disposition of one unconsolidated
joint venture owning one property.
42
Gain (Loss) on Derivative Instruments, Net
2018 vs 2017 – The $2.6 million decrease during the year ended December 31, 2018 as compared to the same period in 2017,
was primarily a result of the termination of 13 derivative instruments with an aggregate notional value of $662.4 million and the
de-designation of one derivative instrument with a notional value of $27.8 million during 2017.
2017 vs 2016 – The $4.2 million increase during the year ended December 31, 2017 as compared to the same period in 2016,
was primarily the result of the termination of six interest rate swaps in connection with the early repayment of the outstanding
borrowings under the 2014 Credit Agreement, which resulted in a gain of $1.1 million as compared to a loss of $3.3 million in
2016.
Gain on Disposition of Real Estate and Real Estate Assets Held For Sale, Net
2018 vs 2017 – The increase in gain on disposition of real estate and real estate assets held for sale, net of $32.8 million during
the year ended December 31, 2018 as compared to the same period in 2017, was due to the Company’s disposition of 148 properties,
excluding one property conveyed to the lender in a deed-in-lieu of foreclosure transaction, for an aggregate sales price of $526.4
million which resulted in a gain of $96.2 million during the year ended December 31, 2018, as compared to the disposal of 131
properties, excluding six properties transferred to the lender in either a deed-in-lieu of foreclosure or foreclosure sale transaction,
for an aggregate sales price of $594.9 million during the same period in 2017 for a gain of $64.7 million. During the year ended
December 31, 2018, the Company also recognized a loss of $1.9 million related to assets classified as held for sale, as compared
to a loss of $3.1 million during the same period in 2017.
2017 vs 2016 – The increase in gain on disposition of real estate and real estate assets held for sale, net of $16.0 million during
the year ended December 31, 2017 as compared to the same period in 2016, was due to the Company’s disposition of 131 properties,
excluding six properties transferred to the lender in either a deed-in-lieu of foreclosure or foreclosure sale transaction, for an
aggregate sales price of $594.9 million which resulted in a gain of $64.7 million during the year ended December 31, 2017, as
compared to the disposal of 301 properties for an aggregate sales price of $1.1 billion during the same period in 2016 for a gain
of $50.6 million, which included $28.8 million of goodwill allocation related to the sales. During the year ended December 31,
2017, the Company also recognized a loss of $3.1 million related to assets classified as held for sale, as compared to a loss of $5.1
million during the same period in 2016.
Provision for Income Taxes
2018 vs 2017 – The consolidated provision for income taxes of $5.1 million for the year ended December 31, 2018 as compared
to a provision of $6.9 million for the same period in 2017 reflects an overall decrease in expense attributable to the tax impact
related to the gain on the sale of certain Canadian properties in 2017.
2017 vs 2016 – The consolidated provision for income taxes of $6.9 million for the year ended December 31, 2017 as compared
to a provision of $7.1 million for the same period in 2016 reflects an overall decrease in expense attributable to higher state taxes
in 2016 and tax on net income from properties held in and sold by a TRS in 2016, which were partially offset by tax on the gain
on the sale of certain Canadian properties in 2017.
Income (Loss) from Discontinued Operations, Net of Income Taxes
2018 vs 2017 – The decrease in loss from discontinued operations, net of income taxes of $22.8 million during the year ended
December 31, 2018 was primarily due to the completion of the sale of Cole Capital on February 1, 2018.
2017 vs 2016 – During the fourth quarter of 2017, the Company entered into a purchase and sale agreement to sell substantially
all of the Cole Capital segment. The decrease in loss from discontinued operations, net of income taxes of $104.8 million during
the year ended December 31, 2017 was primarily due to decreases in impairment of goodwill of $120.9 million, in general and
administrative expenses of $18.8 million and in amortization of intangible assets of $11.7 million, partially offset by the loss
recognized on classification as held for sale of $20.0 million and an increase in the provision for income taxes of $24.7 million.
Revenues, net of reallowed fees and commissions increased $1.8 million for the year ended December 31, 2017, as compared to
the year ended December 31, 2016.
43
Non-GAAP Measures
Our results are presented in accordance with U.S. GAAP. We also disclose certain non-GAAP measures, as discussed further
below. Management uses these non-GAAP financial measures in our internal analysis of results and believes these measures are
useful to investors for the reasons explained below. These non-GAAP financial measures should not be considered as substitutes
for any measures derived in accordance with U.S. GAAP.
Funds from Operations and Adjusted Funds from Operations
Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real
Estate Investment Trusts, Inc. (“Nareit”), an industry trade group, has promulgated a supplemental performance measure known
as funds from operations (“FFO”), which we believe to be an appropriate supplemental performance measure to reflect the operating
performance of a REIT. FFO is not equivalent to our net income or loss as determined under U.S. GAAP.
Nareit defines FFO as net income or loss computed in accordance with U.S. GAAP, excluding gains or losses from disposition
of property, depreciation and amortization of real estate assets, impairment write-downs on real estate, and our pro rata share of
FFO adjustments related to unconsolidated partnerships and joint ventures. We calculated FFO in accordance with Nareit’s definition
described above.
In addition to FFO, we use adjusted funds from operations (“AFFO”) as a non-GAAP supplemental financial performance
measure to evaluate the operating performance of the Company. AFFO, as defined by the Company, excludes from FFO non-
routine items such as acquisition-related expenses, litigation, merger and other non-routine costs, net of insurance recoveries, held
for sale loss on discontinued operations, net revenue or expense earned or incurred that is related to the Services Agreement we
entered into with Cole Capital on February 1, 2018, gains or losses on sale of investment securities or mortgage notes receivable,
legal settlements and insurance recoveries not in the ordinary course of business and payments received on fully reserved loan
receivables. We also exclude certain non-cash items such as impairments of goodwill and intangible assets, straight-line rent, net
of bad debt expense related to straight-line rent, net direct financing lease adjustments, gains or losses on derivatives, reserves for
loan loss, gains or losses on the extinguishment or forgiveness of debt, non-current portion of the tax benefit or expense, equity-
based compensation and amortization of intangible assets, deferred financing costs, premiums and discounts on debt and
investments, above-market lease assets and below-market lease liabilities. We omit the impact of the Excluded Properties and
related non-recourse mortgage notes from FFO to calculate AFFO. Management believes that excluding these costs from FFO
provides investors with supplemental performance information that is consistent with the performance models and analysis used
by management, and provides investors a view of the performance of our portfolio over time. AFFO allows for a comparison of
the performance of our operations with other publicly-traded REITs, as AFFO, or an equivalent measure, is routinely reported by
publicly-traded REITs, and we believe often used by analysts and investors for comparison purposes.
For all of these reasons, we believe FFO and AFFO, in addition to net income (loss), as defined by U.S. GAAP, are helpful
supplemental performance measures and useful in understanding the various ways in which our management evaluates the
performance of the Company over time. However, not all REITs calculate FFO and AFFO the same way, so comparisons with
other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to net income (loss) and are not
intended to be used as a liquidity measure indicative of cash flow available to fund our cash needs. Neither the SEC, Nareit, nor
any other regulatory body has evaluated the acceptability of the exclusions used to adjust FFO in order to calculate AFFO and its
use as a non-GAAP financial performance measure.
44
The table below presents FFO and AFFO for the years ended December 31, 2018, 2017 and 2016 (in thousands, except share
and per share data) and includes both continuing operations, which primarily represent the Company's real estate operations, and
discontinued operations, which represent substantially all of Cole Capital.
Net (loss) income
Dividends on non-convertible preferred stock
Gain on disposition of real estate assets and interests in unconsolidated
joint ventures, net
Depreciation and amortization of real estate assets
Impairment of real estate
Proportionate share of adjustments for unconsolidated entities
FFO attributable to common stockholders and limited partners
Acquisition-related expenses
Litigation, merger and other non-routine costs, net of insurance recoveries
Impairment of goodwill and intangible assets
Loss on disposition and held for sale loss on discontinued operations
Payments received on fully reserved loans
Gain on investment securities and mortgage notes receivable
(Gain) loss on derivative instruments, net
Amortization of premiums and discounts on debt and investments, net
Amortization of above-market lease assets and deferred lease incentives,
net of amortization of below-market lease liabilities
Net direct financing lease adjustments
Amortization and write-off of deferred financing costs
Amortization of management contracts
Deferred and other tax (benefit) expense (1)
(Gain) loss on extinguishment and forgiveness of debt, net
Straight-line rent, net of bad debt expense related to straight-line rent
Equity-based compensation
Other amortization and non-cash charges, net
Proportionate share of adjustments for unconsolidated entities
Adjustments for Excluded Properties
Year Ended December 31,
2018
2017
$
(88,030) $
(71,892)
$
32,378
(71,892)
(95,034)
637,097
54,647
1,278
438,066
3,632
290,309
—
1,815
(4,792)
(4,092)
(355)
(3,486)
4,178
2,023
19,166
—
(1,855)
(5,360)
(39,723)
12,417
1,446
36
465
(61,536)
703,133
50,548
477
653,108
3,402
51,762
—
20,027
—
(65)
(2,976)
(4,616)
5,366
2,093
24,536
14,514
8,671
(18,373)
(44,903)
16,751
2,566
378
6,528
2016
(200,824)
(71,892)
(55,722)
756,315
182,820
2,719
613,416
1,321
3,884
120,931
—
—
—
1,191
(14,693)
5,396
2,264
28,063
26,171
(10,136)
771
(54,190)
10,728
5,296
1,044
—
AFFO attributable to common stockholders and limited partners
$
713,890
$
738,769
$
741,457
Weighted-average shares of Common Stock outstanding - basic
969,092,268
974,098,652
931,422,844
Effect of Limited Partner OP Units and dilutive securities(2)
24,145,875
24,059,312
24,626,646
Weighted-average shares of Common Stock outstanding - diluted (3)
993,238,143
998,157,964
956,049,490
AFFO attributable to common stockholders and limited partners per
diluted share
$
0.72
$
0.74
$
0.78
____________________________________
(1) This adjustment represents the non-current portion of the provision for or benefit from income taxes in order to show only the current portion of the provision
for or benefit from income taxes as an impact to AFFO. For the three months ended December 31, 2017, this adjustment is net of a current tax benefit due
to the acceleration of a bonus compensation-related deduction to take advantage of the Company’s higher effective tax rate in 2017. As the Company already
recognized the prior year bonus compensation-related tax deduction during the three months ended March 31, 2017, the acceleration of the 2018 benefit was
not included in the computation of AFFO.
(2) Dilutive securities include unvested restricted shares of Common Stock, unvested restricted stock units and stock options.
(3) Weighted-average shares for all periods presented exclude the effect of the convertible debt as the Company would expect to settle the debt with cash and
any shares underlying restricted stock units that are not issuable based on the Company’s level of achievement of certain performance targets through the
respective reporting period.
45
Liquidity and Capital Resources
General
Our principal liquidity needs for the next twelve months and beyond are to:
• fund normal operating expenses;
• fund capital expenditures, tenant improvements and leasing costs
• meet debt service and principal repayment obligations, including balloon payments on maturing debt;
• pay dividends;
• pay litigation costs and expenses (including any settlements or judgments); and
• fund property and/or common stock acquisitions.
We expect to be able to satisfy these obligations using one or more of the following sources:
• cash flow from operations;
• proceeds from real estate dispositions;
• utilization of Credit Facility;
• cash and cash equivalents balance;
• issuance of VEREIT debt and equity securities; and
• cash flow from insurance recoveries.
Continuous Equity Offering Program
On September 19, 2016, the Company registered a continuous equity offering program (the “Program”) pursuant to which
the Company can offer and sell, from time to time through September 19, 2019 in “at-the-market” offerings or certain other
transactions, shares of Common Stock with an aggregate gross sales price of up to $750.0 million, through its sales agents. The
Company intends to use the proceeds from any sale of shares for general corporate purposes, which may include funding potential
acquisitions and repurchasing or repaying outstanding indebtedness. As of December 31, 2018, no shares of Common Stock have
been issued pursuant to the Program.
Share Repurchase Program
On May 3, 2018, the Company’s Board of Directors terminated the 2017 Share Repurchase Program and authorized the 2018
Share Repurchase Program, which permits the Company to repurchase up to $200.0 million of its outstanding Common Stock
through May 3, 2019, as market conditions warrant. As of December 31, 2018, the Company had $194.4 million available for
share repurchases under the 2018 Share Repurchase Program. Additional shares of Common Stock repurchased by the Company,
if any, will be returned to the status of authorized but unissued shares of Common Stock.
Disposition Activity
As part of our effort to optimize our real estate portfolio by focusing on holding core assets, during the year ended December
31, 2018, we disposed of 149 properties, including one property conveyed to a lender in a deed-in-lieu of foreclosure transaction,
and one property owned by an unconsolidated joint venture for an aggregate sales price of $560.5 million, of which our share was
$521.4 million, resulting in consolidated proceeds of $502.3 million after repayment of the unconsolidated joint venture’s mortgage
loan and closing costs. We expect to continue to explore opportunities to sell additional properties to provide us further financial
flexibility and fund property acquisitions.
Credit Facility
Summary and Obligations
On May 23, 2018, the Company, as guarantor, and the Operating Partnership, as borrower, entered into a Credit Agreement
with Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto that allows for maximum
borrowings of $2.9 billion, consisting of a $2.0 billion Revolving Credit Facility and a $900.0 million Credit Facility Term Loan,
available through February 23, 2019, for up to four borrowings of delayed-draw term loans. As of December 31, 2018, the Revolving
Credit Facility had an outstanding balance of $253.0 million and $150.0 million had been drawn on the Credit Facility Term Loan.
In connection with entering into the Credit Agreement, the OP repaid all of the outstanding obligations under the 2014 Credit
Agreement.
46
The Revolving Credit Facility generally bears interest at an annual rate of London Inter-Bank Offer Rate (“LIBOR”) plus
0.775% to 1.55% or Base Rate plus 0.00% to 0.55% (based upon the General Partner’s then current credit rating). “Base Rate” is
defined as the highest of the prime rate, the federal funds rate plus 0.50% or a floating rate based on one month LIBOR plus 1.0%,
determined on a daily basis. The Credit Facility Term Loan generally bears interest at an annual rate of LIBOR plus 0.85% to
1.75%, or Base Rate plus 0.00% to 0.75% (based upon the General Partner’s then current credit rating). In addition, the Credit
Agreement provides the flexibility for interest rate auctions, pursuant to which, at the Company’s election, the Company may
request that lenders make competitive bids to provide revolving loans, which competitive bids may be at pricing levels that differ
from the foregoing interest rates.
Credit Facility Covenants
The Credit Facility requires restrictions on corporate guarantees, as well as the maintenance of certain financial covenants.
The key financial covenants in the Credit Facility, as defined and calculated per the terms of the Credit Agreement include
maintaining the following:
Unsecured Credit Facility Key Covenants
Ratio of total indebtedness to total asset value
Ratio of adjusted EBITDA to fixed charges
Ratio of secured indebtedness to total asset value
Ratio of unsecured indebtedness to unencumbered asset value
Ratio of unencumbered adjusted NOI to unsecured interest expense
Required
≤ 60%
≥ 1.5x
≤ 45%
≤ 60%
≥ 1.75x
The Company believes that it was in compliance with the financial covenants pursuant to the Credit Agreement and is not
restricted from accessing any borrowing availability under the Credit Facility as of December 31, 2018.
Corporate Bonds
Summary and Obligations
During the year ended December 31, 2018, the Company closed the 2025 Senior Notes offering, consisting of $550.0 million
aggregate principal amount of 4.625% Senior Notes due 2025. The OP used the net proceeds from the offering of the notes to
repay borrowings under its Revolving Credit Facility.
As of December 31, 2018, the OP had $3.4 billion aggregate principal amount of Senior Notes outstanding, with a weighted-
average maturity of 5.0 years. The indenture governing the Senior Notes requires that the Company be in compliance with certain
key financial covenants, including maintaining the following:
Corporate Bond Key Covenants
Limitation on incurrence of total debt
Limitation on incurrence of secured debt
Debt service coverage ratio
Maintenance of total unencumbered assets
Required
≤ 65%
≤ 40%
≥ 1.5x
≥ 150%
There were no material changes to the financial covenants of our Senior Notes during the year ended December 31, 2018. As
of December 31, 2018, the Company believes that it was in compliance with these financial covenants based on the covenant limits
and calculations in place at that time.
On February 6, 2019, the Company’s 2019 Senior Notes matured and the principal outstanding of $750.0 million, plus accrued
and unpaid interest thereon, was repaid, utilizing borrowings under the Credit Facility.
Convertible Debt
Summary and Obligations
During the year ended December 31, 2018, the Company’s 2018 Convertible Notes matured and the principal outstanding of
$597.5 million, plus accrued and unpaid interest thereon, was repaid with proceeds from the Revolving Credit Facility.
47
As of December 31, 2018, the Company had $402.5 million aggregate principal amount outstanding of convertible senior
notes due December 15, 2020 (the “2020 Convertible Notes”). The OP has issued corresponding identical convertible notes to the
General Partner. There were no changes to the terms of the 2020 Convertible Notes and the Company believes that it was in
compliance with the financial covenants pursuant to the indenture governing the 2020 Convertible Notes as of December 31, 2018.
Mortgage Notes Payable and Other Debt
Summary and Obligations
As of December 31, 2018, we had non-recourse mortgage indebtedness of $1.9 billion, which was collateralized by 459
properties, reflecting a decrease from December 31, 2017 of $153.9 million derived primarily from our disposition activity during
the year ended December 31, 2018. Our mortgage indebtedness bore interest at the weighted-average rate of 4.93% per annum
and had a weighted-average maturity of 3.4 years. We may in the future incur additional mortgage debt on the properties we
currently own or use long-term non-recourse financing to acquire additional properties.
The payment terms of our loan obligations vary. In general, only interest amounts are payable monthly with all unpaid principal
and interest due at maturity. Some of our loan agreements require that we comply with specific reporting and financial covenants
mainly related to debt coverage ratios and loan-to-value ratios. Each loan that has these requirements has specific ratio thresholds
that must be met.
Restrictions on Loan Covenants
Our mortgage loan obligations generally restrict corporate guarantees and require the maintenance of financial covenants,
including maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios), as well as the
maintenance of a minimum net worth. The mortgage loan agreements contain no dividend restrictions except in the event of default
or when a distribution would drive liquidity below the applicable thresholds. At December 31, 2018, the Company believes that
it was in compliance with the financial covenants under the mortgage loan agreements and had no restrictions on the payment of
dividends.
Litigation
During the year ended December 31, 2018, we entered into settlement agreements with various plaintiffs in connection with
litigation filed as a result of the findings of the Audit Committee Investigation for $217.5 million. The Company also entered into
settlement agreements for $15.7 million subsequent to December 31, 2018, which was accrued and included in litigation, merger
and other non-routine costs, net of insurance recoveries in the consolidated statements of operations for the year ended December
31, 2018.
Dividends
On November 5, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.1375 per share of Common
Stock (equaling an annualized dividend rate of $0.55 per share) for the fourth quarter of 2018 to stockholders of record as of
December 31, 2018, which was paid on January 15, 2019. An equivalent distribution by the Operating Partnership is applicable
per OP unit.
Our Series F Preferred Stock, as discussed in Note 11 – Equity to our consolidated financial statements, will pay cumulative
cash dividends at the rate of 6.70% per annum on their liquidation preference of $25.00 per share (equivalent to $1.675 per share
on an annual basis). As of December 31, 2018, there were approximately 42.8 million shares of Series F Preferred Stock (and
approximately 42.8 million corresponding Series F Preferred Units that were issued to the General Partner) and 86,874 Limited
Partner Series F Preferred Units that were issued and outstanding.
48
Contractual Obligations
The following is a summary of our contractual obligations as of December 31, 2018 (in thousands):
Principal payments - mortgage notes
Interest payments - mortgage notes (1) (2)
Principal payments - Credit Facility
Interest payments - Credit Facility (2)
Principal payments - corporate bonds
Interest payments - corporate bonds
Principal payments - convertible debt
Interest payments - convertible debt
Operating and ground lease commitments
Build-to-suit and other commitments (3)
Total
____________________________________
Total
Less than
1 year
1-3 years
4-5 years
More than
5 years
$ 1,917,132
$
167,279
$
617,957
$
459,741
$
672,155
321,914
403,000
58,702
3,400,000
754,473
402,500
29,517
287,159
30,343
93,710
144,935
—
15,918
750,000
120,075
—
15,094
18,479
30,343
—
30,990
400,000
226,151
402,500
14,423
36,120
—
80,830
403,000
11,794
2,439
—
—
—
2,250,000
202,776
205,471
—
—
—
—
35,890
196,670
—
—
$ 7,604,740
$ 1,210,898
$ 1,873,076
$ 1,194,031
$ 3,326,735
(1) As of December 31, 2018, we had $50.7 million of variable rate mortgage notes effectively fixed through the use of interest rate swap agreements. We used
the effective interest rates fixed under our swap agreements to calculate the debt payment obligations in future periods.
(2)
(3)
Interest payments due in future periods on the $14.0 million of variable rate debt and the Credit Facility payment obligations were calculated using a forward
LIBOR curve.
Includes one build-to-suit development project and the Company’s share of capital expenditures related an expansion project of the property held within an
unconsolidated joint venture.
Cash Flow Analysis for the year ended December 31, 2018
Operating Activities – During the year ended December 31, 2018, net cash provided by operating activities decreased $299.4
million to $493.9 million from $793.3 million during the same period in 2017. The decrease was primarily due to an increase in
litigation and other non-routine costs, including litigation settlements, paid during the year ended December 31, 2018. In addition,
there was a decrease in interest payments due to the repayment of the 2018 Convertible Notes and a reduction of secured debt,
offset by the issuance of the 2025 Senior Notes and an increase in net borrowings under the credit facilities during the year ended
December 31, 2018 as compared to the same period in 2017.
Investing Activities – Net cash provided by investing activities for the year ended December 31, 2018 increased $425.2 million
to $151.1 million from $274.1 million net cash used in investing activities during the same period in 2017. The increase was
primarily related to a decrease in investments in real estate assets of $198.4 million, net proceeds from disposition of discontinued
operations of $122.9 million and an increase in cash proceeds from dispositions of real estate and joint ventures of $56.8 million.
Financing Activities – Net cash used in financing activities of $655.4 million decreased $101.2 million during the year ended
December 31, 2018 from $756.6 million during the same period in 2017. The decrease was primarily related to a decrease in
payments on mortgage notes payable and other debt, including debt extinguishment costs of $286.5 million, which was partially
offset by a decrease of $117.1 million in net proceeds related to the credit facilities, corporate bonds and convertible notes and
repurchases of Common Stock under the Share Repurchase Programs of $50.2 million with no comparable repurchases during the
same period in 2017.
Cash Flow Analysis for the year ended December 31, 2017
Operating Activities – During the year ended December 31, 2017, net cash provided by operating activities decreased $4.7
million to $793.3 million from $797.9 million during the same period in 2016. The decrease was primarily due to a decrease in
rental receipts related to the disposition of 438 consolidated properties subsequent to January 1, 2016 and an increase in litigation
and other non-routine costs paid during the year ended December 31, 2017. This decrease was mostly offset by a decrease in
interest payments and insurance recoveries received as compared to the same period in 2016, the receipt of an income tax refund
during the year ended December 31, 2017, and an increase in rental receipts related to the acquisition of 96 consolidated properties
subsequent to January 1, 2016.
Investing Activities – Net cash used in investing activities for the year ended December 31, 2017 changed $1.2 billion to
$274.1 million from cash provided by investing activities of $881.6 million during the same period in 2016. The change was
primarily related to an increase in investments in real estate assets of $598.8 million and decrease in cash proceeds from dispositions
of real estate and joint ventures of $555.2 million.
49
Financing Activities – Net cash used in financing activities of $756.6 million decreased $750.4 million during the year ended
December 31, 2017 from $1.5 billion during the same period in 2016. The decrease was primarily due to a decrease in repayments
of debt, net of proceeds, of $1.5 billion, which was partially offset by the 2016 Common Stock offering resulting in net proceeds,
after underwriting discounts and offering costs, of $702.8 million and an increase in distributions paid of $28.1 million.
Election as a REIT
The General Partner elected to be taxed as a REIT for U.S. federal income tax purposes under Sections 856 through 860 of
the Internal Revenue Code commencing with the taxable year ended December 31, 2011. We believe we are organized and
operating in such a manner as to qualify to be taxed as a REIT for the taxable year ended December 31, 2018. As a REIT, the
General Partner is generally not subject to federal income tax on taxable income that it distributes to its stockholders so long as
it distributes at least 90% of its annual taxable income (computed without regard to the deduction for dividends paid and excluding
net capital gains). However, the General Partner, its TRS entities, and the OP are still subject to certain state and local income,
franchise and property taxes in the various jurisdictions in which they operate. The General Partner may also be subject to federal
income taxes on certain income and excise taxes on its undistributed income.
The OP is classified as a partnership for U.S. federal income tax purposes. As a partnership, the OP is not a taxable entity for
U.S. federal income tax purposes. Instead, each partner in the OP is required to include its allocable share of the OP’s income,
gains, losses, deductions and credits for each taxable year. Under the LPA, the OP is to conduct business in such a manner as to
permit the General Partner at all times to qualify as a REIT.
A TRS is a subsidiary of a REIT that is subject to federal, state and local income taxes, as applicable. The Company’s use
of a TRS enables it to engage in certain business activities while complying with the REIT qualification requirements and to
retain any income generated by these businesses for reinvestment without the requirement to distribute those earnings. The
Company conducted substantially all of the Cole Capital business activities through a TRS until it sold the Cole Capital business
on February 1, 2018.
During the year ended December 31, 2018, the Company conducted all of its business in the United States, Puerto Rico and
Canada and filed income tax returns in the U.S. federal jurisdiction, the Canadian federal jurisdiction and various state and local
jurisdictions. With few exceptions, the Company is no longer subject to routine examinations by taxing authorities for years before
2014. Certain of the Company’s intercompany transactions that have been eliminated in consolidation for financial accounting
purposes are also subject to taxation.
Inflation
We may be adversely impacted by inflation on any leases that do not contain indexed escalation provisions. However, net
leases that require the tenant to pay its allocable share of operating expenses, including common area maintenance costs, real estate
taxes and insurance, may reduce our exposure to increases in costs and operating expenses resulting from inflation.
Related Party Transactions and Agreements
Through the closing of the Cole Capital sale, we were contractually responsible for managing the Cole REITs’ affairs on a
day-to-day basis, identifying and making acquisitions and investments on the Cole REITs’ behalf, and recommending to each of
the Cole REIT’s respective board of directors an approach for providing investors with liquidity. In addition, we distributed the
shares of common stock for certain of the Cole REITs and advised them regarding offerings, managed relationships with participating
broker-dealers and financial advisors, and provided assistance in connection with compliance matters relating to the offerings. We
received compensation and reimbursement for services relating to the Cole REITs’ offerings and the investment, management and
disposition of their respective assets, as applicable. See Note 13 – Related Party Transactions and Arrangements to our consolidated
financial statements in this report for a further explanation of the various related party transactions, agreements and fees.
Off-Balance Sheet Arrangements
We have no material off-balance sheet arrangements that have had or are reasonably likely to have a current or future effect
on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures
or capital resources.
50
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Market Risk
The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse
changes in market prices or interest rates. Our market risk arises primarily from interest rate risk relating to variable-rate borrowings.
To meet our short and long-term liquidity requirements, we borrow funds at a combination of fixed and variable rates. Our interest
rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to manage our
overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as
swaps, collars and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. We
would not hold or issue these derivative contracts for trading or speculative purposes.
Interest Rate Risk
As of December 31, 2018, our debt included fixed-rate debt, including debt that has interest rates that are fixed with the use
of derivative instruments, with a fair value and carrying value each of $5.7 billion. Changes in market interest rates on our fixed
rate debt impact the fair value of the debt, but they have no impact on interest incurred or cash flow. For instance, if interest rates
rise 100 basis points, and the fixed rate debt balance remains constant, we expect the fair value of our debt to decrease, the same
way the price of a bond declines as interest rates rise. The sensitivity analysis related to our fixed-rate debt assumes an immediate
100 basis point move in interest rates from their December 31, 2018 levels, with all other variables held constant. A 100 basis
point increase in market interest rates would result in a decrease in the fair value of our fixed rate debt of $201.3 million. A 100
basis point decrease in market interest rates would result in an increase in the fair value of our fixed-rate debt of $213.8 million.
As of December 31, 2018, our debt included variable-rate debt with a fair value of $417.2 million and a carrying value of
$417.0 million. The sensitivity analysis related to our variable-rate debt assumes an immediate 100 basis point move in interest
rates from their December 31, 2018 levels, with all other variables held constant. A 100 basis point increase or decrease in variable
interest rates on our variable-rate debt would increase or decrease our interest expense by $4.2 million annually. See Note 7 – Debt
to our consolidated financial statements.
As of December 31, 2018, our interest rate swap had a fair value that resulted in assets of $0.5 million. See Note 2 – Summary
of Significant Accounting Policies to our consolidated financial statements for further discussion.
As the information presented above includes only those exposures that existed as of December 31, 2018, it does not consider
exposures or positions arising after that date. The information presented herein has limited predictive value. Future actual realized
gains or losses with respect to interest rate fluctuations will depend on cumulative exposures, hedging strategies employed and
the magnitude of the fluctuations.
These amounts were determined by considering the impact of hypothetical interest rate changes on our borrowing costs and
assume no other changes in our capital structure.
Credit Risk
Concentrations of credit risk arise when a number of tenants are engaged in similar business activities, or activities in the
same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including
those to the Company, to be similarly affected by changes in economic conditions. The Company is subject to tenant, geographic
and industry concentrations. Any downturn of the economic conditions in one or more of these tenants, geographies or industries
could result in a material reduction of our cash flows or material losses to us.
The factors considered in determining the credit risk of our tenants include, but are not limited to: payment history; credit
status and change in status (credit ratings for public companies are used as a primary metric); change in tenant space needs (i.e.,
expansion/downsize); tenant financial performance; economic conditions in a specific geographic region; and industry specific
credit considerations. We believe that the credit risk of our portfolio is reduced by the high quality of our existing tenant base,
reviews of prospective tenants’ risk profiles prior to lease execution and consistent monitoring of our portfolio to identify potential
problem tenants.
Item 8. Financial Statements and Supplementary Data.
The information required by Item 8 is hereby incorporated by reference to our consolidated financial statements beginning
on page F-1 of this document.
51
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A. Controls and Procedures.
I. Discussion of Controls and Procedures of the General Partner
For purposes of the discussion in this Part I of Item 9A, the “Company” refers to the General Partner.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are
designed to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded,
processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is
accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and
procedures, we recognize that no controls and procedures, no matter how well designed and operated, can provide absolute assurance
of achieving the desired control objectives.
In accordance with Rules 13a-15(b) and 15d-15(b) of the Exchange Act, management, under the supervision and with the
participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our
disclosure controls and procedures as of December 31, 2018 and determined that the disclosure controls and procedures were
effective at a reasonable assurance level as of that date.
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such
term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process to
provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for
external purposes in accordance with GAAP. Because of its inherent limitations, internal control over financial reporting is not
intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial
Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework
in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission.
Based on this evaluation, management has concluded that our internal control over financial reporting was effective as of
December 31, 2018.
The effectiveness of our internal control over financial reporting as of December 31, 2018 has been audited by Deloitte
& Touche LLP, an independent registered public accounting firm, as stated in their report in this Annual Report on Form 10-K.
Changes in Internal Control Over Financial Reporting
No change occurred in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d -15(f) of the
Exchange Act) during the three months ended December 31, 2018 that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.
II. Discussion of Controls and Procedures of the Operating Partnership
In the information incorporated by reference into this Part II of Item 9A, the term “Company” refers to the Operating Partnership,
except as the context otherwise requires.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are
designed to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded,
processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is
accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as
52
appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and
procedures, we recognize that no controls and procedures, no matter how well designed and operated, can provide absolute assurance
of achieving the desired control objectives.
In accordance with Rules 13a-15(b) and 15d-15(b) of the Exchange Act, management, under the supervision and with the
participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our
disclosure controls and procedures as of December 31, 2018 and determined that the disclosure controls and procedures were
effective at a reasonable assurance level as of that date.
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such
term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process to
provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for
external purposes in accordance with GAAP. Because of its inherent limitations, internal control over financial reporting is not
intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.
Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial
Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework
in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission.
Based on this evaluation, management has concluded that our internal control over financial reporting was effective as of
December 31, 2018.
Changes in Internal Control Over Financial Reporting
No change occurred in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d -15(f) of the
Exchange Act) during the three months ended December 31, 2018 that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.
53
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of VEREIT, Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of VEREIT, Inc. and subsidiaries (the “Company”) as of December
31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated
Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31,
2018, of the Company and our report dated February 20, 2019, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual
Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal
control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial reporting includes policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that
could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ DELOITTE & TOUCHE LLP
Phoenix, Arizona
February 20, 2019
54
Item 9B. Other Information.
None
55
Item 10. Directors, Executive Officers and Corporate Governance.
PART III
The information required by this Item will be included in our definitive proxy statement for the 2019 Annual Meeting of
Stockholders (the “Proxy Statement”), to be filed within 120 days following the end of our fiscal year, and is incorporated herein
by reference.
Item 11. Executive Compensation.
The information required by this Item will be included in the Proxy Statement and is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The information required by this Item will be included in the Proxy Statement and is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence.
The information required by this Item will be included in the Proxy Statement and is incorporated herein by reference.
Item 14. Principal Accounting Fees and Services.
The information required by this Item will be included in the Proxy Statement and is incorporated herein by reference.
56
Item 15. Exhibits and Financial Statement Schedules.
Financial Statements
PART IV
The Financial Statements are included herein at pages F-1 through F-60.
Financial Statement Schedules
Schedule II - Valuation and Qualifying Accounts is included herein on page F-61.
Schedule III - Real Estate and Accumulated Depreciation is included herein on pages F-62 through F-194.
Schedule IV - Mortgage Loans Held for Investment is included herein on page F-195.
Exhibits
The following exhibits are included in this Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (and
are numbered in accordance with Item 601 of Regulation S-K):
Exhibit
No.
Description
2.1
2.2
2.3
2.4
2.4.1
2.4.2
2.5
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Agreement and Plan of Merger by and among VEREIT, Inc., VEREIT Operating Partnership, L.P., Tiger Acquisition LLC,
American Realty Capital Trust III, Inc. and American Realty Capital Operating Partnership III, L.P., dated as of December 14,
2012 (Incorporated by reference to the Company’s Current Report on Form 8-K (File No. 001-35263), filed with the SEC on
December 17, 2012).
Agreement and Plan of Merger, by and among, VEREIT, Inc., VEREIT Operating Partnership, L.P., Safari Acquisition, LLC,
CapLease, Inc., CapLease, LP and CLF OP General Partner LLC, dated as of May 28, 2013 (Incorporated by reference to the
Company’s Current Report on Form 8-K (File NO. 001-35263), filed with the SEC on May 28, 2013).
Purchase and Sale Agreement, by and among, CNL APF Partners, LP and Certain Affiliates as Seller Parties, and VEREIT
Operating Partnership, L.P., as Purchaser, dated May 31, 2013. (Incorporated by reference to the Company’s Amended Current
Report on Form 8-K/A (File No. 001-35263), filed with the SEC on June 7,2013).
Agreement and Plan of Merger, dated as of July 1, 2013, among VEREIT, Inc., American Realty Capital Trust IV, Inc., Thunder
Acquisition, LLC, VEREIT Operating Partnership, L.P. and American Realty Capital Operating Partnership IV, L.P. (Incorporated
by reference to the Company’s Current Report on Form 8-K (File No. 001-35263), filed with the SEC on July 2, 2013).
Amendment dated as of October 6, 2013 to the Agreement and Plan of Merger, dated as of July 1, 2013, by and among VEREIT,
Inc., VEREIT Operating Partnership, L.P., Thunder Acquisition, LLC, American Realty Capital Trust IV, Inc. and American
Realty Capital Operating Partnership IV, L.P. (Incorporated by reference to the Company’s First Current Report on Form 8-K
(File No. 001-35263), filed with the SEC on October 7, 2013).
Second Amendment dated as of October 11, 2013 to the Agreement and Plan of Merger, dated as of July 1, 2013, by and among
VEREIT, Inc., VEREIT Operating Partnership, L.P., Thunder Acquisition, LLC, American Realty Capital Trust IV, Inc. and
American Realty Capital Operating Partnership IV, L.P. (Incorporated by reference as Annex E to the Company’s Final Prospectus
filed Pursuant to Rule 424(b)(3) (Registration No. 333-190056), filed with the SEC on December 4, 2013).
Agreement and Plan of Merger, dated as of October 22, 2013, by and among VEREIT, Inc., Cole Real Estate Investments, Inc.
and Clark Acquisition, LLC (Incorporated by reference to the Company’s Current Report on Form 8-K (File No. 001-35263),
filed with the SEC on October 23, 2013).
Articles of Amendment and Restatement of VEREIT, Inc. (Incorporated by reference to the Company’s Pre-Effective Amendment
No. 5 to Form S-11 (Registration No. 333-172205), filed with the SEC on July 5, 2011).
Articles Supplementary Relating to the Series A Convertible Preferred Stock of VEREIT, Inc., dated May 10, 2012 (Incorporated
by reference to the Company’s Form 8-K (File No. 001-35263), filed with the SEC on May 15, 2012).
Articles Supplementary Relating to the Series B Convertible Preferred Stock of VEREIT, Inc., dated July 24, 2012 (Incorporated
by reference to the Company’s Form 8-K (File No. 001-35263), filed with the SEC on July 30, 2012).
Articles Supplementary for the Series C Convertible Preferred Stock of VEREIT, Inc., dated June 6, 2013 (Incorporated by
reference to the Company’s Form 8-K (File No. 001-35263), filed with the SEC on June 12, 2013).
Articles of Amendment to Articles of Amendment and Restatement of VEREIT, Inc., effective July 2, 2013 (Incorporated by
reference to the Company’s Form 8-K (File No. 001-35263), filed with the SEC on July 9, 2013).
Articles Supplementary for the Series D Cumulative Convertible Preferred Stock of VEREIT, Inc., filed November 8, 2013
(Incorporated by reference to the Company’s Form 8-K (File No. 001-35263), filed with the SEC on November 15, 2013).
Articles of Amendment to Articles of Amendment and Restatement of VEREIT, Inc., effective December 9, 2013 (Incorporated
by reference to the Company’s Amended Current Report on Form 8-K/A (File No. 001-35263), filed with the SEC on December
20, 2013).
57
Exhibit
No.
Description
3.8
3.9
3.10
3.11
3.12
3.13
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
Articles Supplementary Relating to the 6.70% Series F Cumulative Redeemable Preferred Stock of VEREIT, Inc., dated January
2, 2014 (Incorporated by reference to the Company’s Registration Statement on Form 8-A (File No. 333-190056), filed with the
SEC on January 3, 2014).
Articles of Amendment to Articles of Amendment and Restatement of VEREIT, Inc., dated July 28, 2015 (Incorporated by
reference to the Company’s Form 8-K (File No. 001-35263), filed with the SEC on July 28, 2015).
Articles Supplementary to Articles of Amendment and Restatement of VEREIT, Inc., dated August 5, 2015 (Incorporated by
reference to the Company’s Quarterly Report on Form 10-Q (File No. 001-35263), for the quarter ended June 30, 2015 filed with
the SEC on August 6, 2015).
Amended and Restated Bylaws of VEREIT, Inc., effective as of January 1, 2016 (Incorporated by reference to the Company’s
Quarterly Report on Form 10-Q (File No. 001-35263), for the quarter ended September 30, 2015 filed with the SEC on November
5, 2015).
Certificate of Limited Partnership of VEREIT Operating Partnership, L.P. (Incorporated by reference to the Company’s
Registration Statement on Form S-4 (Registration No. 333-197780-01), filed with the SEC on August 1, 2014).
Amendment to Certificate of Limited Partnership of VEREIT Operating Partnership, L.P., effective July 28, 2015 (Incorporated
by reference to the Company’s Quarterly Report on Form 10-Q (File No. 001-35263), for the quarter ended June 30, 2015 filed
with the SEC on August 6, 2015).
Third Amended and Restated Agreement of Limited Partnership of VEREIT Operating Partnership, L.P., effective January 3,
2014 (Incorporated by reference to the Company’s Amendment No. 2 to its Annual Report on Form 10-K/A (File No. 001-35263),
for the year ended December 31, 2013 filed with the SEC on March 2, 2015).
First Amendment to Third Amended and Restated Agreement of Limited Partnership of VEREIT Operating Partnership, L.P.,
dated January 26, 2015 (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q (File No. 001-35263), for
the quarter ended June 30, 2015 filed with the SEC on August 6, 2015).
Second Amendment to Third Amended and Restated Agreement of Limited Partnership of VEREIT Operating Partnership, L.P.,
dated July 28, 2015 (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q (File No. 001-35263), for the
quarter ended June 30, 2015 filed with the SEC on August 6, 2015).
Indenture, dated as of July 29, 2013, between American Realty Capital Properties, Inc. and U.S. Bank National Association, as
trustee (Incorporated by reference to the Company’s Current Report on Form 8-K (File No. 001-35263), filed with the SEC on
July 29, 2013).
First Supplemental Indenture, dated as of July 29, 2013, between American Realty Capital Properties, Inc. and U.S. Bank National
Association, as trustee (Incorporated by reference to the Company’s Current Report on Form 8-K (File No. 001-35263), filed
with the SEC on July 29, 2013).
Second Supplemental Indenture, dated as of December 10, 2013, between American Realty Capital Properties, Inc. and U.S.
Bank National Association, as trustee (Incorporated by reference to the Company’s Current Report on Form 8-K (File No.
001-35263), filed with the SEC on December 11, 2013).
Form of 3.75% Convertible Senior Notes due 2020 (Incorporated by reference to the Company’s Current Report on Form 8-K
(File No. 001-35263), filed with the SEC on December 11, 2013).
Indenture, dated as of February 6, 2014, among ARC Properties Operating Partnership, L.P., Clark Acquisition, LLC, the guarantors
named therein and U.S. Bank National Association, as trustee (Incorporated by reference to the Company’s Current Report on
Form 8-K (File No. 001-35263), filed with the SEC on February 7, 2014).
Officers’ Certificate, dated as of February 6, 2014 (Incorporated by reference to the Company’s Current Report on Form 8-K
(File No. 001-35263), filed with the SEC on February 7, 2014).
First Supplemental Indenture, dated as of February 9, 2015, by and among ARC Properties Operating Partnership, L.P., American
Realty Capital Properties, Inc. and U.S. Bank National Association (Incorporated by reference to the Company’s Current Report
on Form 8-K (File No. 001-35263), filed with the SEC on February 13, 2015).
Officer’s Certificate, dated as of June 2, 2016 (Incorporated by reference to the Company’s Current Report on Form 8-K (File
No. 001-35263), filed with the SEC on June 3, 2016).
Form of 4.125% Senior Notes due 2021 (Incorporated by reference to the Company’s Current Report on Form 8-K (File No.
001-35263), filed with the SEC on June 3, 2016).
Form of 4.875% Senior Notes due 2026 (Incorporated by reference to the Company’s Current Report on Form 8-K (File No.
001-35263), filed with the SEC on June 3, 2016).
Officers’ Certificate, dated as of August 11, 2017 (Incorporated by reference to the Company’s Current Report on Form 8-K (File
No. 001-35263), filed with the SEC on August 11, 2017).
Form of 3.950% Convertible Senior Notes due 2027 (Incorporated by reference to the Company’s Current Report on Form 8-K
(File No. 001-35263), filed with the SEC on August 11, 2017).
Officer’s Certificate, dated as of October 16, 2018 (Incorporated by reference to the Company’s Current Report on Form 8-K
(File No. 001-35263), filed with the SEC on October 16, 2018).
Form of 4.625% Senior Notes due 2025 (Incorporated by reference to the Company’s Current Report on Form 8-K (File No.
001-35263), filed with the SEC on October 16, 2018).
58
Exhibit
No.
Description
10.1
10.2
10.3
10.4†
10.5†
10.6†
Credit Agreement dated as of May 23, 2018 by and among VEREIT Operating Partnership, L.P., VEREIT, Inc., the financial
institutions from time to time party thereto as lenders and Wells Fargo Bank, National Association, as the administrative agent
(Incorporated by reference to the Company’s Current Report on Form 8-K (File No. 001-35263), filed with the SEC on May 23,
2018).
Purchase and Sale Agreement, dated as of November 13, 2017, by and between VEREIT Operating Partnership, L.P. and CCA
Acquisition, LLC (Incorporated by reference to the Company’s Current Report on Form 8-K (File No. 001-35263), filed with
the SEC on November 13, 2017).
First Amendment to the Purchase and Sale Agreement, dated as of February 1, 2018, by and between VEREIT Operating
Partnership, L.P. and CCA Acquisition, LLC (Incorporated by reference to the Company’s Current Report on Form 8-K (File No.
001-35263), filed with the SEC on February 7, 2018).
Equity Plan, effective September 5, 2011 of VEREIT, Inc. (Incorporated by reference to the Company’s Pre-Effective Amendment
No. 4 to Form S-11 (Registration No. 333-172205), filed with the SEC on June 13, 2011).
First Amendment to VEREIT, Inc.’s Equity Plan, effective November 12, 2012 (Incorporated by reference to the Company’s
Annual Report on Form 10-K (File No. 001-35263), for the year ended December 31, 2014 filed with the SEC on March 30,
2015).
Second Amendment to VEREIT, Inc.’s Equity Plan, effective February 28, 2013 (Incorporated by reference to the Company’s
Annual Report on Form 10-K (File No. 001-35263), for the year ended December 31, 2014 filed with the SEC on March 30,
2015).
10.7†*
Form of Equity Plan Time-Based Restricted Stock Unit Award Agreement (CEO).
10.8†*
Form of Equity Plan Time-Based Restricted Stock Unit Award Agreement (Executive Officers).
10.9†*
Form of Equity Plan Time-Based Restricted Stock Unit Award Agreement (Employees).
10.10†*
Form of Equity Plan Performance-Based Restricted Stock Unit Award Agreement (Executive Officers and CEO).
10.11†*
Form of Equity Plan Performance-Based Restricted Stock Unit Award Agreement (Employees).
10.12†*
Form of Equity Plan Non-Qualified Stock Option Award Agreement (Executive Officers and CEO).
10.13†*
Form of Equity Plan Non-Qualified Stock Option Award Agreement (Employees).
10.14†
10.15†
10.16†
10.17†
10.18†
10.19†
10.20†
10.21†
10.22†
10.23†
10.24†
10.25†
Form of 2017 Deferred Stock Unit Award Agreement to be entered into with non-executive directors pursuant to the VEREIT,
Inc. Equity Plan (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q (File No. 001-35263), for the
quarter ended March 31, 2017 filed with the SEC on May 4, 2017).
Form of 2017 Deferred Stock Unit Award Agreement to be entered into with non-executive directors pursuant to the VEREIT,
Inc. Equity Plan and the Independent Directors’ Deferred Compensation Program (Incorporated by reference to the Company’s
Quarterly Report on Form 10-Q (File No. 001-35263), for the quarter ended March 31, 2017 filed with the SEC on May 4, 2017).
Director Stock Plan of VEREIT, Inc. (Incorporated by reference to the Company’s Pre-Effective Amendment No. 4 to Form S-11
(Registration No. 333-172205), filed with the SEC on June 13, 2011).
Form of Indemnification Agreement (Incorporated by reference to the Company’s Pre-effective Amendment No. 4 to Form S-11
Registration Statement (Registration No. 333-172205) filed with the SEC on June 13, 2011).
Form of Indemnification Agreement (Incorporated by reference to the Company’s Current Report on Form 8-K (File No.
001-35263), filed with the SEC on March 16, 2015).
Employment Agreement, dated as of March 10, 2015, by and between VEREIT, Inc. and Glenn Rufrano (Incorporated by reference
to the Company’s Current Report on Form 8-K (File No. 001-35263), filed with the SEC on March 16, 2015).
Amendment effective February 21, 2018, to the Employment Agreement, dated as of March 10, 2015, by and between VEREIT,
Inc. and Glenn Rufrano (Incorporated by reference to the Company’s Annual Report on Form 10-K (File No. 001-35263), for
the year ended December 31, 2017 filed with the SEC on February 22, 2018).
Employment Letter and Confidentiality and Non-Competition Agreement, effective as of October 5, 2015, by and between
VEREIT, Inc. and Michael J. Bartolotta (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q (File No.
001-35263), for the quarter ended September 31, 2015 filed with the SEC on November 5, 2015).
Amendment, effective February 21, 2018, to the Employment Agreement, dated as of October 5, 2015, by and between VEREIT,
Inc. and Michael J. Bartolotta (Incorporated by reference to the Company’s Annual Report on Form 10-K (File No. 001-35263),
for the year ended December 31, 2017 filed with the SEC on February 22, 2018).
Employment Agreement, dated as of May 21, 2015, by and between VEREIT, Inc. and Lauren Goldberg (Incorporated by reference
to the Company’s Quarterly Report on Form 10-Q (File No. 001-35263), for the quarter ended June 30, 2015 filed with the SEC
on August 6, 2015).
Amendment effective February 23, 2016, to Employment Agreement between VEREIT, Inc. and Lauren Goldberg, as of May
26, 2015 (Incorporated by reference to the Company’s Annual Report on Form 10-K (File No. 001-35263), for the year ended
December 31, 2015 filed with the SEC on February 23, 2016).
Amendment, effective February 21, 2018, to the Employment Agreement, dated as of May 21, 2015, by and between VEREIT,
Inc. and Lauren Goldberg (Incorporated by reference to the Company’s Annual Report on Form 10-K (File No. 001-35263), for
the year ended December 31, 2017 filed with the SEC on February 22, 2018).
59
Exhibit
No.
10.26†
10.27†
10.28†
10.29†
10.30†
21.1*
23.1*
23.2*
31.1*
31.2*
31.3*
31.4*
32.1**
32.2**
32.3**
32.4**
Description
Amended and Restated Employment Letter, dated as of February 23, 2016, by and between VEREIT, Inc. and Paul McDowell
(Incorporated by reference to the Company’s Annual Report on Form 10-K (File No. 001-35263), for the year ended December
31, 2015 filed with the SEC on February 23,2016).
Amendment, effective February 21, 2018, to the Employment Agreement, dated as of February 23, 2016, by and between VEREIT,
Inc. and Paul McDowell (Incorporated by reference to the Company’s Annual Report on Form 10-K (File No. 001-35263), for
the year ended December 31, 2017 filed with the SEC on February 22, 2018).
Amended and Restated Employment Letter, dated as of February 23, 2016, by and between VEREIT, Inc. and Thomas Roberts
(Incorporated by reference to the Company’s Annual Report on Form 10-K (File No. 001-35263), for the year ended December
31, 2015 filed with the SEC on February 23, 2016).
Amendment, effective February 21, 2018, to the Employment Agreement, dated as of February 23, 2016, by and between VEREIT,
Inc. and Thomas Roberts (Incorporated by reference to the Company’s Annual Report on Form 10-K (File No. 001-35263), for
the year ended December 31, 2017 filed with the SEC on February 22, 2018).
Separation Letter, dated as of January 31, 2018, by and between William C. Miller and VEREIT, Inc (Incorporated by reference
to the Company’s Annual Report on Form 10-K (File No. 001-35263), for the year ended December 31, 2017 filed with the SEC
on February 22, 2018).
List of Subsidiaries.
Consent of Deloitte & Touche LLP.
Consent of Deloitte & Touche LLP.
Certification of the Chief Executive Officer of VEREIT, Inc. pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a),
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of the Chief Financial Officer of VEREIT, Inc. pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a),
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of the Chief Executive Officer of VEREIT, Inc., the sole general partner of VEREIT Operating Partnership, L.P.,
pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002.
Certification of the Chief Financial Officer of VEREIT, Inc., the sole general partner of VEREIT Operating Partnership, L.P.,
pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002.
Written statements of the Chief Executive Officer of VEREIT, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
Written statements of the Chief Financial Officer of VEREIT, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
Written statements of the Chief Executive Officer of VEREIT, Inc., the sole general partner of VEREIT Operating Partnership,
L.P., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Written statements of the Chief Financial Officer of VEREIT, Inc., the sole general partner of VEREIT Operating Partnership,
L.P., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
XBRL Instance Document.
101.INS*
101.SCH* XBRL Taxonomy Extension Schema Document.
101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF* XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB* XBRL Taxonomy Extension Label Linkbase Document.
101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document.
_____________________________
*
Filed herewith
**
In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act
or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under
the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.
† Management contract or compensatory plan or arrangement.
60
Item 16. Form 10-K Summary.
Not Applicable
61
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, each registrant has duly caused this Annual
Report on Form 10-K to be signed on its behalf by the undersigned thereunto duly authorized.
SIGNATURES
VEREIT, INC.
By:
/s/ Michael J. Bartolotta
Michael J. Bartolotta
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
VEREIT OPERATING PARTNERSHIP, L.P.
By: VEREIT, Inc., its sole general partner
/s/ Michael J. Bartolotta
By:
Michael J. Bartolotta
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Dated: February 20, 2019
62
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Form 10-K has been signed
below by the following persons on behalf of each registrant and in the capacities and on the dates indicated.
Name
Capacity *
/s/ Glenn J. Rufrano
Chief Executive Officer
Glenn J. Rufrano
(Principal Executive Officer and Director)
Date
February 20, 2019
/s/ Michael J. Bartolotta
Executive Vice President and Chief Financial Officer
February 20, 2019
Michael J. Bartolotta
(Principal Financial Officer)
/s/ Gavin B. Brandon
Senior Vice President and Chief Accounting Officer
February 20, 2019
Gavin B. Brandon
(Principal Accounting Officer)
Director, Non-Executive Chairman
February 20, 2019
/s/ Hugh R. Frater
Hugh R. Frater
/s/ David B. Henry
David B. Henry
Director
/s/ Mary Hogan Preusse
Director
Mary Hogan Preusse
/s/ Richard J. Lieb
Richard J. Lieb
/s/ Mark S. Ordan
Mark S. Ordan
Director
Director
/s/ Eugene A. Pinover
Director
Eugene A. Pinover
/s/ Julie G. Richardson
Director
Julie G. Richardson
_________________________________
February 20, 2019
February 20, 2019
February 20, 2019
February 20, 2019
February 20, 2019
February 20, 2019
* Each person is signing in his or her capacity as an officer and/or director of VEREIT, Inc., which is the sole general partner
of VEREIT Operating Partnership, L.P.
63
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INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Financial Statements
Reports of Independent Registered Public Accounting Firms
Consolidated Balance Sheets of VEREIT, Inc. as of December 31, 2018 and December 31, 2017
Consolidated Statements of Operations of VEREIT, Inc. for the Years Ended December 31, 2018, 2017 and 2016
Consolidated Statements of Comprehensive Income (Loss) of VEREIT, Inc. for the Years Ended December 31,
2018, 2017 and 2016
Consolidated Statements of Changes in Equity of VEREIT, Inc. for the Years Ended December 31, 2018, 2017 and
2016
Consolidated Statements of Cash Flows of VEREIT, Inc. for the Years Ended December 31, 2018, 2017 and 2016
Consolidated Balance Sheets of VEREIT Operating Partnership, L.P. as of December 31, 2018 and December 31,
2017
Consolidated Statements of Operations of VEREIT Operating Partnership, L.P. for the Years Ended December 31,
2018, 2017 and 2016
Consolidated Statements of Comprehensive Income (Loss) of VEREIT Operating Partnership, L.P. for the Years
Ended December 31, 2018, 2017 and 2016
Consolidated Statements of Changes in Equity of VEREIT Operating Partnership, L.P. for the Years Ended December
31, 2018, 2017 and 2016
Consolidated Statements of Cash Flows of VEREIT Operating Partnership, L.P. for the Years Ended December 31,
2018, 2017 and 2016
Notes to Consolidated Financial Statements
Schedule II – Valuation and Qualifying Accounts
Schedule III – Real Estate and Accumulated Depreciation
Schedule IV – Mortgage Loans Held For Investment
Page
F-2
F-4
F-5
F-6
F-7
F-9
F-11
F-12
F-13
F-14
F-16
F-18
F-61
F-62
F-195
F-1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of VEREIT, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of VEREIT, Inc. and subsidiaries (the “Company”) as of December
31, 2018 and 2017, the related consolidated statements of operations, comprehensive income (loss), changes in equity and cash
flows for each of the three years in the period ended December 31, 2018, and the related notes and the schedules listed in the Index
at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all
material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and
its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally
accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in
Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission and our report dated February 20, 2019, expressed an unqualified opinion on the Company’s internal control over
financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP
Phoenix, Arizona
February 20, 2019
We have served as the Company’s auditor since 2015.
F-2
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the partners of VEREIT Operating Partnership, L.P.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of VEREIT Operating Partnership, L.P and subsidiaries (the
"Operating Partnership") as of December 31, 2018 and 2017, the related consolidated statements of operations, comprehensive
income (loss), changes in equity, and cash flows, for each of the three years in the period ended December 31, 2018, and the related
notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the
financial statements present fairly, in all material respects, the financial position of the Operating Partnership as of December 31,
2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31,
2018, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Operating Partnership's management. Our responsibility is to express an
opinion on the Operating Partnership's financial statements based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to
the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Operating Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting
but not for the purpose of expressing an opinion on the effectiveness of the Operating Partnership’s internal control over financial
reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP
Phoenix, Arizona
February 20, 2019
We have served as the Operating Partnership’s auditor since 2015.
F-3
VEREIT, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
ASSETS
Real estate investments, at cost:
Land
Buildings, fixtures and improvements
Intangible lease assets
Total real estate investments, at cost
Less: accumulated depreciation and amortization
Total real estate investments, net
Investment in unconsolidated entities
Cash and cash equivalents
Restricted cash
Rent and tenant receivables and other assets, net
Goodwill
Due from affiliates, net
Real estate assets held for sale and assets related to discontinued operations, net
Total assets
LIABILITIES AND EQUITY
Mortgage notes payable, net
Corporate bonds, net
Convertible debt, net
Credit facility, net
Below-market lease liabilities, net
Accounts payable and accrued expenses
Deferred rent and other liabilities
Distributions payable
Due to affiliates
Liabilities related to discontinued operations
Total liabilities
Commitments and contingencies (Note 10)
Preferred stock, $0.01 par value, 100,000,000 shares authorized and 42,834,138 issued
and outstanding as of each of December 31, 2018 and December 31, 2017
Common stock, $0.01 par value, 1,500,000,000 shares authorized and 967,515,165
and 974,208,583 issued and outstanding as of December 31, 2018 and December
31, 2017, respectively
Additional paid-in-capital
Accumulated other comprehensive loss
Accumulated deficit
Total stockholders’ equity
Non-controlling interests
Total equity
Total liabilities and equity
December 31, 2018
December 31, 2017
$
$
$
$
$
$
$
2,843,212
10,749,228
2,012,399
15,604,839
3,436,772
12,168,067
35,289
30,758
22,905
366,092
1,337,773
—
2,609
13,963,493
1,922,657
3,368,609
394,883
401,773
173,479
145,611
69,714
186,623
—
—
6,663,349
2,865,855
10,711,845
2,037,675
15,615,375
2,908,028
12,707,347
39,520
34,176
27,662
389,060
1,337,773
6,041
163,999
14,705,578
2,082,692
2,821,494
984,258
185,000
198,551
136,474
62,985
175,301
66
15,881
6,662,702
428
428
9,675
12,615,472
(1,280)
(5,467,236)
7,157,059
143,085
7,300,144
13,963,493
$
9,742
12,654,258
(3,569)
(4,776,581)
7,884,278
158,598
8,042,876
14,705,578
The accompanying notes are an integral part of these statements.
F-4
VEREIT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
Rental revenue
Operating expenses:
Acquisition-related
Litigation, merger and other non-routine costs, net of insurance recoveries
Property operating
General and administrative
Depreciation and amortization
Impairments
Total operating expenses
Other (expense) income:
Interest expense
Gain (loss) on extinguishment and forgiveness of debt, net
Other income, net
Equity in income and gain on disposition of unconsolidated entities
Gain (loss) on derivative instruments, net
Gain on disposition of real estate and real estate assets held for sale, net
Total other expenses, net
(Loss) income before taxes
Provision for income taxes
(Loss) income from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net (loss) income
Net loss (income) attributable to non-controlling interests (1)
Net (loss) income attributable to the General Partner
Basic and diluted net loss per share from continuing operations attributable to
common stockholders
Basic and diluted net income (loss) per share from discontinued operations
attributable to common stockholders
Basic and diluted net loss per share attributable to common stockholders (2)
_______________________________________________
(1) Represents net loss (income) attributable to limited partners and consolidated joint venture partners.
(2) Amounts may not total due to rounding.
Year Ended December 31,
2018
2017
2016
$1,257,867
$1,252,285
$1,335,447
3,632
290,963
126,461
63,933
640,618
54,647
3,402
47,960
128,717
58,603
706,802
50,548
1,321
3,884
144,428
51,927
762,038
182,820
1,180,254
996,032
1,146,418
(280,887)
5,360
(289,766)
18,373
14,735
1,869
355
6,242
2,763
2,976
94,331
(164,237)
(86,624)
(5,101)
(91,725)
3,695
(88,030)
2,256
$ (85,774) $
61,536
(197,876)
58,377
(6,882)
51,495
(19,117)
32,378
(560)
31,818
(317,376)
(771)
5,251
9,783
(1,191)
45,524
(258,780)
(69,751)
(7,136)
(76,887)
(123,937)
(200,824)
4,961
$ (195,863)
$
$
$
(0.17) $
(0.02) $
(0.16)
0.00
$
(0.16) $
(0.02) $
(0.04) $
(0.13)
(0.29)
The accompanying notes are an integral part of these statements.
F-5
VEREIT, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
Year Ended December 31,
2018
2017
2016
$
(88,030) $
32,378
$
(200,824)
—
313
(205)
2,237
2,345
(85,685)
2,200
(83,485) $
(18)
(70)
(951)
—
(1,039)
31,339
(534)
30,805
(7,685)
9,397
(2,271)
—
(559)
(201,383)
4,989
(196,394)
$
Net (loss) income
Other comprehensive income (loss):
Unrealized gain (loss) on interest rate derivatives
Reclassification of previous unrealized loss (gain) on interest rate
derivatives into net (loss) income
Unrealized loss on investment securities, net
Reclassification of previous unrealized loss (gain) on investment
securities into net (loss) income as other income, net
Total other comprehensive income (loss)
Total comprehensive (loss) income
Comprehensive loss (income) attributable to non-controlling interests (1)
Total comprehensive (loss) income attributable to the General Partner
$
_______________________________________________
(1) Represents comprehensive loss (income) attributable to limited partners and consolidated joint venture partners.
The accompanying notes are an integral part of these statements.
F-6
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F-8
VEREIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Cash flows from operating activities:
Net (loss) income
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
Depreciation and amortization
Gain on real estate assets, net
Impairments from held for sale
Impairments
Equity-based compensation
Equity in income of unconsolidated entities and gain on joint venture
Distributions from unconsolidated entities
Gain on investments
(Gain) loss on derivative instruments, net
(Gain) loss on extinguishment and forgiveness of debt, net
Changes in assets and liabilities:
Investment in direct financing leases
Rent and tenant receivables and other assets, net
Due from affiliates
Assets held for sale classified as discontinued operations
Accounts payable and accrued expenses
Deferred rent and other liabilities
Due to affiliates
Liabilities related to discontinued operations
Net cash provided by operating activities
Cash flows from investing activities:
Investments in real estate assets
Capital expenditures and leasing costs
Real estate developments
Principal repayments received on investment securities and mortgage
notes receivable
Investments in unconsolidated entities
Return of investment from unconsolidated entities
Proceeds from disposition of real estate and joint venture
Proceeds from disposition of discontinued operations
Investment in leasehold improvements and other assets
Deposits for real estate assets
Proceeds from sale of investments and other assets
Uses and refunds of deposits for real estate assets
Proceeds from the settlement of property-related insurance claims
Line of credit advances to Cole REITs
Line of credit repayments from Cole REITs
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from mortgage notes payable
Payments on mortgage notes payable and other debt, including debt
extinguishment costs
Proceeds from credit facility
Payments on credit facility
Proceeds from corporate bonds
Payments on corporate bonds, including extinguishment costs
Repayment of convertible notes
Payments of deferred financing costs
Repurchases of Common Stock under the Share Repurchase Programs
Proceeds from 2016 term loan
F-9
Year Ended December 31,
2018
2017
2016
$
(88,030) $
32,378
$
(200,824)
659,948
(96,068)
—
54,647
13,314
(1,869)
1,366
(4,092)
(355)
(5,360)
2,078
(34,096)
—
(2,492)
1,688
7,162
(66)
(13,861)
493,914
(500,625)
(22,291)
(9,221)
5,761
(771)
48
502,289
122,915
(841)
(13,412)
46,966
17,267
1,434
(2,200)
3,800
151,119
745,499
(61,536)
20,027
50,548
16,751
(2,726)
3,646
(65)
(2,976)
(18,373)
2,097
(21,394)
1,163
13,812
10,742
(395)
50
4,019
793,267
(699,004)
(21,694)
(14,850)
6,796
—
1,972
445,525
—
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(37,226)
400
36,111
355
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25,100
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806,548
(55,722)
—
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10,728
415
1,433
—
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771
3,976
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(416)
—
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(17,740)
(214)
—
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(100,194)
(16,568)
(17,411)
5,417
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2,580
1,000,700
—
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(17,856)
—
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—
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50,000
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187
4,652
3,112
(137,887)
1,934,000
(1,716,000)
546,304
—
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(25,471)
(50,154)
—
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329,000
(645,107)
600,000
—
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(518)
—
(337,022)
1,033,000
(1,993,000)
1,000,000
(1,311,203)
—
(19,872)
—
300,000
VEREIT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS – (Continued)
(In thousands)
Repayment of 2016 term loan
Repurchases of Common Stock to settle tax obligations
Proceeds from the issuance of Common Stock, net of underwriters’
discount
Payments of equity issuance costs
Contributions from non-controlling interest holders
Distributions paid
Net cash used in financing activities
Net change in cash and cash equivalents and restricted cash
Cash and cash equivalents and restricted cash, beginning of period
Less: cash and cash equivalents of discontinued operations
Cash and cash equivalents and restricted cash from continuing operations,
beginning of period
Cash and cash equivalents, and restricted cash, end of period
Less: cash and cash equivalents of discontinued operations
Cash and cash equivalents and restricted cash from continuing operations,
end of period
Reconciliation of Cash and Cash Equivalents and Restricted Cash
Cash and cash equivalents at beginning of period
Restricted cash at beginning of period
Cash and cash equivalents and restricted cash at beginning of period
Cash and cash equivalents at end of period
Restricted cash at end of period
Cash and cash equivalents and restricted cash at end of period
$
$
$
$
$
Year Ended December 31,
2018
2017
— $
(2,326)
— $
(2,148)
—
—
120
(606,679)
(655,406)
(10,373)
—
—
101
(608,615)
(756,595)
(237,434)
2016
(300,000)
(4,652)
702,765
(280)
675
(580,508)
(1,506,985)
172,600
$
64,036
(2,198)
301,470
(2,973)
$
128,870
(4,968)
61,838
53,663
—
53,663
34,176
27,662
61,838
30,758
22,905
53,663
$
$
$
298,497
123,902
64,036
(2,198)
61,838
253,479
45,018
298,497
34,176
27,662
61,838
$
$
$
301,470
(2,973)
298,497
64,135
59,767
123,902
253,479
45,018
298,497
The accompanying notes are an integral part of these statements.
F-10
VEREIT OPERATING PARTNERSHIP, L.P.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for unit data)
ASSETS
Real estate investments, at cost:
Land
Buildings, fixtures and improvements
Intangible lease assets
Total real estate investments, at cost
Less: accumulated depreciation and amortization
Total real estate investments, net
Investment in unconsolidated entities
Cash and cash equivalents
Restricted cash
Rent and tenant receivables and other assets, net
Goodwill
Due from affiliates, net
Real estate assets held for sale and assets related to discontinued operations, net
Total assets
LIABILITIES AND EQUITY
Mortgage notes payable, net
Corporate bonds, net
Convertible debt, net
Credit facility, net
Below-market lease liabilities, net
Accounts payable and accrued expenses
Deferred rent and other liabilities
Distributions payable
Due to affiliates
Liabilities related to discontinued operations
Total liabilities
Commitments and contingencies (Note 10)
General Partner's preferred equity, 42,834,138 General Partner Series F Preferred
Units issued and outstanding as of each of December 31, 2018 and December 31,
2017
General Partner's common equity, 967,515,165 and 974,208,583 General Partner OP
Units issued and outstanding as of December 31, 2018 and December 31, 2017,
respectively
Limited Partner's preferred equity, 86,874 Limited Partner Series F Preferred Units
issued and outstanding as of each of December 31, 2018 and December 31, 2017
Limited Partner's common equity, 23,715,908 and 23,748,347 Limited Partner OP
Units issued and outstanding as of December 31, 2018 and December 31, 2017,
respectively
Total partners’ equity
Non-controlling interests
Total equity
Total liabilities and equity
December 31, 2018
December 31, 2017
$
$
$
$
$
$
2,843,212
10,749,228
2,012,399
15,604,839
3,436,772
12,168,067
35,289
30,758
22,905
366,092
1,337,773
—
2,609
13,963,493
1,922,657
3,368,609
394,883
401,773
173,479
145,611
69,714
186,623
—
—
6,663,349
2,865,855
10,711,845
2,037,675
15,615,375
2,908,028
12,707,347
39,520
34,176
27,662
389,060
1,337,773
6,041
163,999
14,705,578
2,082,692
2,821,494
984,258
185,000
198,551
136,474
62,985
175,301
66
15,881
6,662,702
710,325
782,073
6,446,734
7,102,205
2,883
3,027
138,931
7,298,873
1,271
7,300,144
13,963,493
$
154,266
8,041,571
1,305
8,042,876
14,705,578
$
The accompanying notes are an integral part of these statements.
F-11
VEREIT OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per unit data)
Rental revenue
Operating expenses:
Acquisition-related
Litigation, merger and other non-routine costs, net of insurance recoveries
Property operating
General and administrative
Depreciation and amortization
Impairments
Total operating expenses
Other (expense) income:
Interest expense
Gain (loss) on extinguishment and forgiveness of debt, net
Other income, net
Equity in income and gain on disposition of unconsolidated entities
Gain (loss) on derivative instruments, net
Gain on disposition of real estate and real estate assets held for sale, net
Total other expenses, net
(Loss) income before taxes
Provision for income taxes
(Loss) income from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net (loss) income
Net loss attributable to non-controlling interests (1)
Net (loss) income attributable to the OP
Basic and diluted net loss per unit from continuing operations attributable to
common unitholders
Basic and diluted net income (loss) per unit from discontinued operations
attributable to common unitholders
Basic and diluted net loss per unit attributable to common unitholders (2)
_______________________________________________
(1) Represents net loss attributable to consolidated joint venture partners.
(2) Amounts may not total due to rounding.
Year Ended December 31,
2018
2017
2016
$ 1,257,867
$ 1,252,285
$ 1,335,447
3,632
290,963
126,461
63,933
640,618
54,647
3,402
47,960
128,717
58,603
706,802
50,548
1,321
3,884
144,428
51,927
762,038
182,820
1,180,254
996,032
1,146,418
(280,887)
5,360
14,735
1,869
355
94,331
(164,237)
(86,624)
(5,101)
(91,725)
3,695
(88,030)
154
(87,876) $
(289,766)
18,373
6,242
2,763
2,976
61,536
(197,876)
58,377
(6,882)
51,495
(19,117)
32,378
194
32,572
(317,376)
(771)
5,251
9,783
(1,191)
45,524
(258,780)
(69,751)
(7,136)
(76,887)
(123,937)
(200,824)
14
$ (200,810)
(0.17) $
(0.02) $
(0.16)
$
0.00
(0.16) $
(0.02) $
(0.04) $
(0.13)
(0.29)
$
$
$
$
The accompanying notes are an integral part of these statements.
F-12
VEREIT OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
Net (loss) income
Other comprehensive income (loss):
Unrealized gain (loss) on interest rate derivatives
Reclassification of previous unrealized loss (gain) on interest rate
derivatives into net (loss) income
Unrealized loss on investment securities, net
Reclassification of previous unrealized loss (gain) on investment
securities into net (loss) income as other income, net
Total other comprehensive income (loss)
Total comprehensive (loss) income
Comprehensive loss attributable to non-controlling interests (1)
Total comprehensive (loss) income attributable to the OP
$
_______________________________________________
(1) Represents comprehensive loss attributable to consolidated joint venture partners.
Year Ended December 31,
2018
2017
2016
$
(88,030) $
32,378
$
(200,824)
—
313
(205)
2,237
2,345
(85,685)
154
(85,531) $
(18)
(70)
(951)
—
(1,039)
31,339
194
31,533
(7,685)
9,397
(2,271)
—
(559)
(201,383)
14
(201,369)
$
The accompanying notes are an integral part of these statements.
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F-15
VEREIT OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Cash flows from operating activities:
Net (loss) income
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
Depreciation and amortization
Gain on real estate assets, net
Impairments from held for sale
Impairments
Equity based compensation
Equity in income of unconsolidated entities
Distributions from unconsolidated entities
Gain on investments
(Gain) loss on derivative instruments, net
(Gain) loss on extinguishment of debt and forgiveness of debt
Changes in assets and liabilities:
Investment in direct financing leases
Rent and tenant receivables and other assets, net
Due from affiliates
Assets held for sale classified as discontinued operations
Accounts payable and accrued expenses
Deferred rent and other liabilities
Due to affiliates
Liabilities related to discontinued operations
Net cash provided by operating activities
Cash flows from investing activities:
Investments in real estate assets
Capital expenditures and leasing costs
Real estate developments
Principal repayments received on investment securities and mortgage
notes receivable
Investments in unconsolidated entities
Return of investment from unconsolidated entities
Proceeds from disposition of real estate and joint venture
Proceeds from disposition of discontinued operations
Investment in leasehold improvements and other assets
Deposits for real estate assets
Proceeds from sale of investments and other assets
Uses and refunds of deposits for real estate assets
Proceeds from the settlement of property-related insurance claims
Line of credit advances to Cole REITs
Line of credit repayments from Cole REITs
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from mortgage notes payable
Payments on mortgage notes payable and other debt, including debt
extinguishment costs
Proceeds from credit facility
Payments on credit facility
Proceeds from corporate bonds
Payments on corporate bonds, including extinguishment costs
Repayment of convertible notes
Payments of deferred financing costs
Proceeds from 2016 term loan
Repayment of 2016 term loan
F-16
Year Ended December 31,
2018
2017
2016
$
(88,030) $
32,378
$
(200,824)
659,948
(96,068)
—
54,647
13,314
(1,869)
1,366
(4,092)
(355)
(5,360)
2,078
(34,096)
—
(2,492)
1,688
7,162
(66)
(13,861)
493,914
(500,625)
(22,291)
(9,221)
5,761
(771)
48
502,289
122,915
(841)
(13,412)
46,966
17,267
1,434
(2,200)
3,800
151,119
745,499
(61,536)
20,027
50,548
16,751
(2,726)
3,646
(65)
(2,976)
(18,373)
2,097
(21,394)
1,163
13,812
10,742
(395)
50
4,019
793,267
(699,004)
(21,694)
(14,850)
6,796
—
1,972
445,525
—
(1,191)
(37,226)
400
36,111
355
(16,400)
25,100
(274,106)
806,548
(55,722)
—
303,751
10,728
415
1,433
—
1,191
771
3,976
(52,626)
(416)
—
(3,323)
(17,740)
(214)
—
797,948
(100,194)
(16,568)
(17,411)
5,417
(25,777)
2,580
1,000,700
—
(2,259)
(17,856)
—
13,305
—
(10,300)
50,000
881,637
187
4,652
3,112
(137,887)
1,934,000
(1,716,000)
546,304
—
(597,500)
(25,471)
—
—
(424,385)
329,000
(645,107)
600,000
—
—
(9,575)
—
—
(337,022)
1,033,000
(1,993,000)
1,000,000
(1,311,203)
—
(19,872)
300,000
(300,000)
VEREIT OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS – (Continued)
(In thousands)
Repurchases of Common Stock under the Share Repurchase Programs
Repurchases of Common Stock to settle tax obligations
Proceeds from the issuance of common OP Units, net of underwriters’
discount
Payments of equity issuance costs
Contributions from non-controlling interest holders
Distributions paid
Net cash used in financing activities
Net change in cash and cash equivalents and restricted cash
Cash and cash equivalents and restricted cash, beginning of period
Less: cash and cash equivalents of discontinued operations
Cash and cash equivalents and restricted cash from continuing operations,
beginning of period
Cash and cash equivalents, and restricted cash, end of period
Less: cash and cash equivalents of discontinued operations
Cash and cash equivalents and restricted cash from continuing operations,
end of period
Reconciliation of Cash and Cash Equivalents and Restricted Cash
Cash and cash equivalents at beginning of period
Restricted cash at beginning of period
Cash and cash equivalents and restricted cash at beginning of period
Cash and cash equivalents at end of period
Restricted cash at end of period
Cash and cash equivalents and restricted cash at end of period
$
$
$
$
$
Year Ended December 31,
2018
2017
2016
(50,154) $
(2,326)
(518) $
(2,148)
—
(4,652)
—
—
120
(606,679)
(655,406)
(10,373)
—
—
101
(608,615)
(756,595)
(237,434)
702,765
(280)
675
(580,508)
(1,506,985)
172,600
$
64,036
(2,198)
301,470
(2,973)
$
128,870
(4,968)
61,838
53,663
—
53,663
34,176
27,662
61,838
30,758
22,905
53,663
$
$
$
298,497
123,902
64,036
(2,198)
61,838
253,479
45,018
298,497
34,176
27,662
61,838
$
$
$
301,470
(2,973)
298,497
64,135
59,767
123,902
253,479
45,018
298,497
The accompanying notes are an integral part of these statements.
F-17
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018
Note 1 – Organization
VEREIT is a Maryland corporation, incorporated on December 2, 2010, that qualified as a real estate investment trust (“REIT”)
for U.S. federal income tax purposes beginning in the taxable year ended December 31, 2011. The OP is a Delaware limited
partnership of which the General Partner is the sole general partner. VEREIT’s common stock, par value $0.01 per share (“Common
Stock”), and its 6.70% Series F Cumulative Redeemable Preferred Stock, par value $0.01 per share (“Series F Preferred Stock”)
trade on the New York Stock Exchange (“NYSE”) under the trading symbols, “VER” and “VER PRF,” respectively. As used
herein, the terms the “Company,” “we,” “our” and “us” refer to VEREIT, together with its consolidated subsidiaries, including the
OP.
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant
commercial properties in the U.S. VEREIT’s business model provides equity capital to creditworthy corporations in return for
long-term leases on their properties. The Company actively manages its portfolio considering a number of metrics including
property type, concentration and key economic factors for appropriate balance and diversity.
Substantially all of the Company’s operations are conducted through the OP. VEREIT is the sole general partner and holder
of 97.6% of the common equity interests in the OP as of December 31, 2018 with the remaining 2.4% of the common equity
interests owned by unaffiliated investors and certain former directors, officers and employees of ARC Properties Advisors, LLC
(the “Former Manager”). Under the limited partnership agreement of the OP, as amended (the “LPA”), after holding units of limited
partner interests in the OP (“OP Units”), including Series F Preferred Units, for a period of one year and meeting the other
requirements in the LPA, unless an earlier redemption is otherwise consented to by VEREIT, holders of OP Units, including Series
F Preferred Units, have the right to redeem the units for the cash value of a corresponding number of shares of VEREIT’s Common
Stock or VEREIT’s Series F Preferred Stock, as applicable, or, at the option of VEREIT, a corresponding number of shares of
VEREIT’s Common Stock or Series F Preferred Stock. The remaining rights of the holders of OP Units are limited, however, and
do not include the ability to replace the General Partner or to approve the sale, purchase or refinancing of the OP’s assets.
The actions of the OP and its relationship with the General Partner are governed by the LPA. The General Partner does not
have any significant assets other than its investment in the OP. Therefore, the assets and liabilities of the General Partner and the
OP are the same. Additionally, pursuant to the LPA, all administrative expenses and expenses associated with the formation,
continuity, existence and operation of the General Partner incurred by the General Partner on the OP’s behalf shall be treated as
expenses of the OP. Further, when the General Partner issues any equity instrument that has been approved by the General Partner’s
Board of Directors, the LPA requires the OP to issue to the General Partner equity instruments with substantially similar terms, to
protect the integrity of the Company’s umbrella partnership REIT structure, pursuant to which each holder of interests in the OP
has a proportionate economic interest in the OP reflecting its capital contributions thereto. OP Units and Series F Preferred Units
issued to the General Partner are referred to as “General Partner OP Units” and “General Partner Series F Preferred Units,”
respectively. OP Units and Series F Preferred Units issued to parties other than the General Partner are referred to as “Limited
Partner OP Units” and “Limited Partner Series F Preferred Units,” respectively. The LPA also provides that the OP issue debt with
terms and provisions consistent with debt issued by the General Partner. The LPA will be amended to provide for the issuance of
any additional class of equivalent equity instruments to the extent the General Partner’s Board of Directors authorizes the issuance
of any new class of equity securities.
As discussed in Note 4 —Discontinued Operations, on February 1, 2018, the Company completed the sale of its investment
management segment, Cole Capital. The assets, liabilities and related financial results of substantially all of the Cole Capital
segment are reflected in the financial statements as discontinued operations.
Note 2 – Summary of Significant Accounting Policies
Basis of Accounting
The consolidated financial statements of the Company presented herein include the accounts of the General Partner and its
consolidated subsidiaries, including the OP. All intercompany transactions have been eliminated upon consolidation. The financial
statements are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles in the
United States (“U.S. GAAP”).
Principles of Consolidation and Basis of Presentation
The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries and consolidated
joint venture arrangements. The portions of the consolidated joint venture arrangements not owned by the Company are presented
F-18
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
as non-controlling interests in VEREIT’s and the OP’s consolidated balance sheets, statements of operations, statements of
comprehensive income (loss) and statements of changes in equity. In addition, as described in Note 1 – Organization, certain third
parties have been issued OP Units. Holders of OP Units are considered to be non-controlling interest holders in the OP and their
ownership interest in the limited partner’s share is presented as non-controlling interests in VEREIT’s consolidated balance sheets,
statements of operations, statements of comprehensive income (loss) and statements of changes in equity. Further, a portion of the
earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages.
Upon conversion of OP Units to Common Stock, any difference between the fair value of shares of Common Stock issued and the
carrying value of the OP Units converted is recorded as a component of equity. As of each of December 31, 2018 and 2017, there
were approximately 23.7 million Limited Partner OP Units outstanding.
For legal entities being evaluated for consolidation, the Company must first determine whether the interests that it holds and
fees it receives qualify as variable interests in the entity. A variable interest is an investment or other interest that will absorb
portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. The Company’s evaluation
includes consideration of fees paid to the Company where the Company acts as a decision maker or service provider to the entity
being evaluated. If the Company determines that it holds a variable interest in an entity, it evaluates whether that entity is a variable
interest entity (“VIE”). VIEs are entities where investors lack sufficient equity at risk for the entity to finance its activities without
additional subordinated financial support or where equity investors, as a group, lack one of the following characteristics: (a) the
power to direct the activities that most significantly impact the entity’s economic performance, (b) the obligation to absorb the
expected losses of the entity, or (c) the right to receive the expected returns of the entity.
The Company then qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE, which is generally defined
as the party who has a controlling financial interest in the VIE. Consideration of various factors include, but are not limited to, the
Company’s ability to direct the activities that most significantly impact the entity’s economic performance and its obligation to
absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates
any VIEs when the Company is determined to be the primary beneficiary of the VIE and the difference between consolidating the
VIE and accounting for it using the equity method could be material to the Company’s consolidated financial statements. The
Company continually evaluates the need to consolidate these VIEs based on standards set forth in U.S. GAAP.
Reclassification
As described below, the following items previously reported have been reclassified to conform with the current period’s
presentation.
The operating expense reimbursements line item has been combined into rental revenue for prior periods presented to be
consistent with the current year presentation.
The investment in direct financing leases, net, investment securities, at fair value and mortgage notes receivable, net line items
from prior periods have been combined into the rent and tenant receivables and other assets, net caption on the consolidated balance
sheets. Investments in the Cole REITs, as defined in “Investment in Cole REITs” section herein, has also been reclassified as of
December 31, 2017 to rent and tenant receivables and other assets, net from investment in unconsolidated entities to be consistent
with the current year presentation. Refer to Note 5 – Rent and Tenant Receivables and Other Assets, Net for reclassification amounts
and additional information.
The distributions declared on Common Stock line item from prior periods has been updated to exclude distributions on
restricted stock units (“Restricted Stock Units”) and deferred stock units (“Deferred Stock Units”) on the consolidated statements
of changes in equity for all periods presented. These amounts are now included in the line item dividend equivalents on awards
granted under the Equity Plan (as defined in Note 12 – Equity-based Compensation), which also includes dividend equivalents on
restricted shares of Common Stock (“Restricted Shares”). The dividend equivalents on Restricted Shares were previously included
in the line item distributions to participating securities in the consolidated statements of changes in equity.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates. Management makes significant estimates regarding goodwill and intangible asset impairments, real
estate investment impairment, allocation of purchase price of real estate asset acquisitions and income taxes.
F-19
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Real Estate Investments
The Company records acquired real estate at cost and makes assessments as to the useful lives of depreciable assets. The
Company considers the period of future benefit of the asset to determine the appropriate useful lives. Depreciation is computed
using a straight-line method over the estimated useful life of 40 years for buildings, five to 15 years for building fixtures and
improvements and the remaining lease term for intangible lease assets.
Allocation of Purchase Price of Real Estate Assets
The Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets and liabilities
acquired based on their relative fair values. Tangible assets include land, buildings, fixtures and improvements on an as-if vacant
basis. The Company utilizes various estimates, processes and information to determine the as-if vacant property value. Identifiable
intangible assets and liabilities include amounts allocated to acquired leases for above-market and below-market lease rates and
the value of in-place leases. In estimating fair values for purposes of allocating purchase price, the Company utilizes a number of
sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective
property and other market data. The Company also considers information obtained about each property as a result of its pre-
acquisition due diligence, as well as subsequent marketing and leasing activities, in estimating the fair value of the tangible and
intangible assets acquired and intangible liabilities assumed.
The aggregate value of intangible assets related to in-place leases is primarily the difference between the property valued with
existing in-place leases adjusted to market rental rates and the property valued as if vacant. Factors considered by the Company
in its analysis of the in-place lease intangibles include an estimate of carrying costs during the expected lease-up period for each
property, taking into account current market conditions and costs to execute similar leases. In estimating carrying costs, the Company
includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected
lease-up period, which typically ranges from six to 18 months. The Company also estimates costs to execute similar leases, including
leasing commissions, legal and other related expenses. The value of in-place leases is amortized over the initial term of the respective
leases. If a tenant terminates its lease, then the unamortized portion of the in-place lease value is charged to expense.
Above-market and below-market in-place lease values for owned properties are recorded based on the present value (using
an interest rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to
be paid pursuant to the in-place leases and management’s estimate of fair market lease rates for the corresponding in-place leases,
measured over a period equal to the remaining non-cancelable term of the lease, including any bargain renewal periods. Above-
market leases are amortized as a reduction to rental revenue over the remaining terms of the respective leases. Below-market leases
are amortized as an increase to rental revenue over the remaining terms of the respective leases, including any bargain renewal
periods.
The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions
with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables.
The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could materially impact
the Company’s results of operations.
In January 2017, the Company elected to early adopt ASU 2017-01, Business Combinations (Topic 805): Clarifying the
Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business by adding guidance to assist entities in
evaluating whether transactions should be accounted for as acquisitions of assets or businesses. During the years ended December
31, 2018 and 2017, all real estate acquisitions qualified as asset acquisitions, and external acquisition costs related to asset
acquisitions were capitalized and allocated to tangible and intangible assets and liabilities as described above. Prior to January 1,
2017, external costs related to property acquisitions were expensed as incurred. Internal costs, such as employee salaries, related
to activities necessary to complete, or affect, self-originating asset acquisitions or business combinations are classified as
acquisition-related expenses in the accompanying consolidated statements of operations for all periods presented.
Assets Held for Sale
Upon classifying a real estate investment as held for sale, the Company will no longer recognize depreciation expense related
to the depreciable assets of the property. Assets held for sale are recorded at the lower of carrying value or estimated fair value,
less the estimated cost to dispose of the assets. See Note 3– Real Estate Investments and Related Intangibles for further discussion
regarding properties held for sale.
If circumstances arise that the Company previously considered unlikely and, as a result, the Company decides not to sell a
property previously classified as held for sale, the Company will reclassify the property as held and used. The Company measures
and records a property that is reclassified as held and used at the lower of (i) its carrying value before the property was classified
F-20
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously
classified as held and used or (ii) the estimated fair value at the date of the subsequent decision not to sell.
Development Activities
Project costs, which include interest expense, associated with the development, construction and lease-up of a real estate
project are capitalized as construction in progress. Once the development and construction of the building is substantially completed,
the amounts capitalized to construction in progress are transferred to (i) land and (ii) buildings, fixtures and improvements and
are depreciated over their respective useful lives.
Discontinued Operations
The Company reports discontinued operations when a component of an entity or group of components that has been disposed
of or classified as held for sale represents a strategic shift that has or will have a major effect on an entity’s operations and financial
results. The results of operations for assets meeting the definition of discontinued operations are reflected in the Company’s
consolidated statements of operations as discontinued operations for all periods presented. See Note 4 — Discontinued Operations
for further discussion regarding discontinued operations.
Investment in Unconsolidated Entities
Unconsolidated Joint Ventures
The Company accounts for its investment in unconsolidated joint venture arrangements using the equity method of accounting
as the Company has the ability to exercise significant influence, but not control, over operating and financing policies of these
investments. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted
for the Company’s share of equity in the joint ventures’ earnings and distributions. The Company records its proportionate share
of net income (loss) from the unconsolidated joint ventures in equity in income and gain on disposition of unconsolidated entities
in the consolidated statements of operations. See Note 3– Real Estate Investments and Related Intangibles for further discussion
on investments in unconsolidated joint ventures.
Investment in Cole REITs
As of December 31, 2017, the Company owned equity investments in Cole Credit Property Trust IV, Inc. (“CCPT IV”), CIM
Income NAV, Inc. (formerly known as Cole Real Estate Income Strategy (Daily NAV), Inc.) (“INAV”), Cole Office & Industrial
REIT (CCIT II), Inc. (“CCIT II”), Cole Office & Industrial REIT (CCIT III), Inc. (“CCIT III”), and Cole Credit Property Trust V,
Inc. (“CCPT V” and collectively with CCPT IV, INAV, CCIT II and CCIT III, the “Cole REITs”). On February 1, 2018, the Company
sold certain of its equity investments to CCA Acquisition, LLC (the “Cole Purchaser”), an affiliate of CIM Group, LLC, retaining
interests in CCIT II, CCIT III and CCPT V. Subsequent to the sale of Cole Capital and the adoption of ASU 2016-01 (as defined
in “Recent Accounting Pronouncements” section below), the Company carries these investments at fair value, as the Company
does not exert significant influence over CCIT II, CCIT III or CCPT V, and any changes in the fair value are recognized in other
income, net in the accompanying consolidated statement of operations for the year ended December 31, 2018. Prior to the sale of
Cole Capital, the Company accounted for these investments using the equity method of accounting, which required the investment
to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the respective Cole REIT’s earnings
and distributions. The Company recorded its proportionate share of net income or loss from the Cole REITs in equity in income
and gain on disposition of unconsolidated entities in the consolidated statement of operations for the year ended December 31,
2018.
Leasehold Improvements and Property and Equipment
The Company leases its corporate office facilities under operating leases. Leasehold improvements related to these are recorded
at cost less accumulated amortization. Leasehold improvements are amortized over the lesser of the estimated useful life or
remaining lease term.
Property and equipment, which typically include computer hardware and software, furniture and fixtures, among other items,
are stated at cost less accumulated depreciation. Property and equipment are depreciated on a straight-line method over the estimated
useful lives of the assets, which range from three to seven years. The Company reassesses the useful lives of its property and
equipment and adjusts the future monthly depreciation expense based on the new useful life, as applicable. If the Company disposes
of an asset, the asset and related accumulated depreciation are written off upon disposal.
F-21
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Goodwill
In the case of a business combination, after identifying all tangible and intangible assets and liabilities, the excess consideration
paid over the fair value of the assets and liabilities acquired and assumed, respectively, represents goodwill. In connection with
prior mergers, the Company recorded goodwill as a result of the merger consideration exceeding the net assets acquired. As of
December 31, 2018 and 2017, the carrying value of goodwill was $1.3 billion.
Prior to the adoption of ASU 2017-01 in January 2017, in the event the Company disposed of a property, or classified a property
as an asset held for sale, that constituted a business under U.S. GAAP, the Company allocated a portion of the real estate investments
reporting unit’s goodwill to that property in determining the gain or loss on the disposal of the property. The amount of goodwill
allocated to the business was based on the relative fair value of the business to the fair value of the reporting unit. During the year
ended December 31, 2016, the Company allocated $73.2 million of goodwill to dispositions and held for sale assets, which included
$2.3 million of goodwill allocated to the cost basis of two properties foreclosed upon. The allocated goodwill of $73.2 million was
included in gain on disposition of real estate and real estate assets held for sale, net, in the consolidated statement of operations.
Impairments
Real Estate Assets
The Company performs quarterly impairment review procedures, primarily through continuous monitoring of events and
changes in circumstances that could indicate the carrying value of its real estate assets may not be recoverable. Impairment indicators
that the Company considers include, but are not limited to, decrease in net operating income, bankruptcy or other credit concerns
of a property’s major tenant or tenants, such as history of late payments, rental concessions and other factors, as well as significant
decreases in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses or reduced lease rates. When impairment
indicators are identified or if a property is considered to have a more likely than not probability of being disposed of within the
next 12 to 24 months, the Company assesses the recoverability of the assets by determining whether the carrying value of the
assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition.
U.S. GAAP requires us to utilize the Company’s expected holding period of our properties when assessing recoverability. In the
event that such expected undiscounted future cash flows do not exceed the carrying value, the Company will adjust the real estate
assets to their respective fair values and recognize an impairment loss. Generally, fair value is determined using a discounted cash
flow analysis and recent comparable sales or leasing transactions. The assumptions and uncertainties utilized in the evaluation of
the impairment of real estate assets are discussed in Note 6 – Fair Value Measures.
Goodwill
The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change
that indicate the carrying value may not be recoverable. The Company’s annual testing date is during the fourth quarter. In 2017,
the Company adopted ASU 2017-04, Intangibles – Goodwill and Others (Topic 350): Simplifying the Test for Goodwill Impairment,
which allows the Company to test goodwill for impairment by comparing the carrying value of net assets to their respective fair
value. If the fair value is determined to be less than the carrying value, an impairment charge will be recorded for the difference
between the fair value and the carrying value. The Company estimates the fair value using discounted cash flows and relevant
competitor multiples. The evaluation of goodwill for potential impairment requires the Company’s management to exercise
significant judgment and to make certain assumptions. While the Company believes its assumptions are reasonable, there are no
guarantees as to actual results. Changes in assumptions based on actual results may have a material impact on the Company’s
financial results. The analysis performed for the annual goodwill tests during the years ended December 31, 2018, 2017 and 2016
resulted in no impairment. Goodwill related to discontinued operations is discussed in Note 4 — Discontinued Operations.
F-22
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Investment in Unconsolidated Entities
The Company is required to determine whether an event or change in circumstances has occurred that may have a significant
adverse effect on the fair value of any of its investment in the unconsolidated entities. If an event or change in circumstance has
occurred, the Company is required to evaluate its investment in the unconsolidated entity for potential impairment and determine
if the carrying value of its investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to
be other-than-temporary. To determine whether an impairment is other-than-temporary, the Company considers whether it has the
ability and intent to hold the investment until the carrying value is fully recovered. The evaluation of an investment in an
unconsolidated entity for potential impairment requires the Company’s management to exercise significant judgment and to make
certain assumptions. The use of different judgments and assumptions could result in different conclusions. No impairments of
unconsolidated entities were identified during the years ended December 31, 2018, 2017 and 2016.
Leasehold Improvements and Property and Equipment
Leasehold improvements and property and equipment are reviewed for impairment when events or changes in circumstances
indicate that the carrying value of such assets may not be recoverable. If this review indicates that the carrying value of the asset
is not recoverable, the Company records an impairment loss, measured at fair value by estimated discounted cash flows or market
appraisals. The evaluation of leasehold improvements and property and equipment for potential impairment requires the Company’s
management to exercise significant judgment and to make certain assumptions. The use of different judgments and assumptions
could result in different conclusions. No impairments of leasehold improvements and property and equipment were identified
during the years ended December 31, 2018, 2017 and 2016.
Cash and Cash Equivalents
Cash and cash equivalents include cash in bank accounts, as well as investments in highly-liquid money market funds with
original maturities of three months or less. The Company deposits cash with several high quality financial institutions. These
deposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to an insurance limit of $250,000. At times,
the Company’s cash and cash equivalents may exceed federally insured levels. Although the Company bears risk on amounts in
excess of those insured by the FDIC, it has not experienced and does not anticipate any losses due to the high quality of the
institutions where the deposits are held.
Restricted Cash
The Company had $22.9 million and $27.7 million, respectively, in restricted cash as of December 31, 2018 and 2017. Restricted
cash primarily consists of reserves related to lease expirations, as well as maintenance, structural and debt service reserves. In
accordance with certain debt agreements, rent from certain of the Company’s tenants is deposited directly into a lockbox account,
from which the monthly debt service payments are disbursed to the lender and the excess funds are then disbursed to the Company.
Included in restricted cash at December 31, 2018 was $21.5 million in lender reserves and $1.4 million held in restricted lockbox
accounts. Included in restricted cash at December 31, 2017 was $26.4 million in lender reserves and $1.3 million held in restricted
lockbox accounts.
Investment in Direct Financing Leases
The Company has acquired certain properties that are subject to leases that qualify as direct financing leases in accordance
with U.S. GAAP due to the significance of the lease payments from the inception of the leases compared to the fair value of the
property or due to bargain purchase options. Investments in direct financing leases represent the fair value of the remaining lease
payments on the leases and the estimated fair value of any expected residual property value at the end of the lease term. The fair
value of the remaining lease payments is estimated using a discounted cash flow analysis based on interest rates that would represent
the Company’s incremental borrowing rate for similar types of debt. The expected residual property value at the end of the lease
term is estimated using market data and assessments of the remaining useful lives of the properties at the end of the lease terms,
among other factors. Income from direct financing leases is calculated using the effective interest method over the remaining term
of the lease.
F-23
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Deferred Financing Costs
Deferred financing costs represent commitment fees, legal fees and other costs associated with obtaining commitments for
financing. Deferred financing costs, other than those associated with the Revolving Credit Facility (as defined in Note 7 –Debt),
are presented on the consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability rather
than as an asset. These costs are amortized to interest expense over the terms of the respective financing agreements using the
effective interest method. Unamortized deferred financing costs are written off when the associated debt is refinanced or repaid
before maturity. Costs incurred in connection with potential financial transactions that are not completed are expensed in the period
in which it is determined the financing will not be completed.
Convertible Debt
The Company has an outstanding aggregate balance of $402.5 million related to the 2020 Convertible Notes (as defined in
Note 7 – Debt ). The 2020 Convertible Notes are convertible into cash or shares of the Company’s Common Stock at the Company’s
option. In accordance with U.S GAAP, the 2020 Convertible Notes are accounted for as a liability with a separate equity component
recorded for the conversion option. A liability was recorded for the 2020 Convertible Notes on the issuance date at fair value based
on a discounted cash flow analysis using current market rates for debt instruments with similar terms. The difference between the
initial proceeds from the 2020 Convertible Notes and the estimated fair value of the debt instruments resulted in a debt discount,
with an offset recorded to additional paid-in capital representing the equity component. The debt discount is being amortized to
interest expense over the respective term of the 2020 Convertible Notes.
Derivative Instruments
The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest
rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective
of such agreements is to minimize the risks and/or costs associated with the Company’s operating and financial structure as well
as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for purposes other than interest
rate risk management.
The Company records all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair
value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in
a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to
apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset,
liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives
designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted
transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of
a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss
recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow
hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though
hedge accounting does not apply or the Company elects not to apply hedge accounting.
The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designated
and qualifies for hedge accounting treatment. If the Company elects not to apply hedge accounting treatment, any changes in the
fair value of these derivative instruments is recognized immediately in gain (loss) on derivative instruments, net in the consolidated
statements of operations and consolidated statements of comprehensive income (loss). If the derivative is designated and qualifies
for hedge accounting treatment, the change in the estimated fair value of the derivative is recorded in other comprehensive income
(loss) to the extent that it is effective. Any ineffective portion of a derivative’s change in fair value will be immediately recognized
in earnings.
As of December 31, 2018, the Company had one interest rate derivative that was not designated as a qualifying hedging
relationship with a fair value of $0.5 million associated with a loan with a notional value of $50.7 million. As of December 31,
2017, the Company had two interest rate derivatives that were not designated as qualifying hedging relationships with an aggregate
fair value of $0.6 million associated with loans with an aggregate notional value of $78.9 million. The fair value of the interest
rate derivatives is included in rent and tenant receivables and other assets, net in the accompanying consolidated balance sheets.
Revenue Recognition
In May 2014, the U.S. Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with
Customers (“ASU 2014-09”) (Topic 606), which supersedes the revenue recognition requirements in Revenue Recognition,
F-24
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Accounting Standards Codification (“ASC”) (Topic 605) and requires an entity to recognize revenue in a way that depicts the
transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services. The Company adopted ASU 2014-09 and the related ASUs (collectively, the
“Revenue ASUs”) during the first quarter of 2018 using the modified retrospective approach, which allows a cumulative effect
adjustment to beginning retained earnings equal to initially applying the Revenue ASUs to all contracts with customers not
completed as of the date of adoption. Adoption of the Revenue ASUs did not result in a cumulative effect adjustment to retained
earnings as all contracts not completed as of adoption within the scope of Topic 606 have the same revenue recognition timing
and measurement under Topic 605. Revenues generated through leasing arrangements are excluded from the Revenue ASUs as
discussed below.
Revenue Recognition - Real Estate
The Company’s rental revenue is recognized when earned and collectability is reasonably assured and includes rental revenues
and property operating expense reimbursements that each tenant pays in accordance with the terms of each lease. Rental revenue
also includes amortization of above and below-market leases. Many of the leases have rent escalations and the rental revenue is
recognized on a straight-line basis, which requires the Company to record a receivable that will only be received if the tenant
makes all rent payments required through the expiration of the initial lease term. Straight-line rent receivables are included in rent
and tenant receivables and other assets, net, in the consolidated balance sheets. See Note 5 – Rent and Tenant Receivables and
Other Assets, Net. For leases that have contingent rental revenue based on a percentage of the tenant’s sales, the Company recognizes
contingent rental revenue when the specified target is achieved.
The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by
taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in
which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability
of a receivable is uncertain, the Company will record an increase in the allowance for uncollectible accounts in the consolidated
balance sheets and bad debt expense in property operating expenses in the consolidated statements of operations. The Company
suspends revenue recognition when the collectability of amounts due pursuant to a lease is no longer reasonably assured.
Revenue Recognition - Cole Capital
As discussed in Note 4 —Discontinued Operations, on February 1, 2018, the Company completed the sale of its investment
management segment, Cole Capital. The assets, liabilities and related financial results of substantially all of the Cole Capital
segment are reflected in the financial statements as discontinued operations.
Cole Capital earned securities sales commissions, dealer manager fees, distribution and stockholder servicing fees, real estate
acquisition fees, financing coordination fees, property management fees, advisory fees, asset management fees and performance
fees for services relating to the Cole REITs’ offerings and the investment and management of their respective assets, in accordance
with the respective dealer manager and advisory agreements. The Company was also reimbursed for certain costs incurred in
providing these services, which were recorded as revenue as the expenses were incurred subject to revenue constraint due to the
limitations on the amount that was reimbursable based on the terms of the respective dealer manager and advisory agreements.
Refer to Note 13 – Related Party Transactions and Arrangements for a disaggregation of Cole Capital revenues.
Revenue Recognition - Other
The Company entered into a services agreement (the “Services Agreement”) with the Cole Purchaser, pursuant to which the
Company will continue to provide certain services to the Cole Purchaser and the Cole REITs, including operational real estate
support, (“Transition Services Revenues”) through March 31, 2019 (or, if later, the date of the last government filing other than a
tax filing made by any of the Cole REITs with respect to its 2018 fiscal year). Under the terms of the Services Agreement, the
Company will be entitled to receive reimbursement for certain of the services provided. The Company recorded Transition Services
Revenues as costs associated with providing such services were incurred, which coincided with the timing in which the performance
obligations of the contract had been met. During the period from February 1, 2018 through December 31, 2018, the Company
incurred $15.0 million of such costs and recognized revenues of $15.0 million, which are recorded in other income, net in the
consolidated statement of operations. The Company may also receive additional fees over the next six years if future revenues of
Cole Capital exceed a specified dollar threshold (the “Net Revenue Payments”), up to an aggregate of $80.0 million in Net Revenue
Payments.
F-25
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Litigation, Merger and Other Non-Routine Costs, Net of Insurance Recoveries
External costs incurred in relation to prior mergers and litigation resulting therefrom are included in litigation, merger and
other non-routine costs, net of insurance recoveries in the consolidated statements of operations. The Company has also incurred
legal fees and other costs associated with litigations and investigations resulting from the Audit Committee Investigation (defined
below), which are considered non-routine. The Company has directors’ and officers’ insurance and the insurance carriers have
paid certain defense costs subject to standard reservation of rights under the respective policies.
Litigation, merger and other non-routine costs, net of insurance recoveries include the following costs (amounts in thousands):
Merger Related Costs:
Transfer taxes(1)
Litigation and other non-routine costs:
Audit Committee Investigation and related matters (2)
Legal fees and expenses (3)
Litigation settlements (4)
Total costs
Insurance recoveries (5)
Total
___________________________________
Year Ended December 31,
2018
2017
2016
$
$
$
— $
(1,595) $
562
59,755
530
233,246
293,531
(2,568)
290,963
$
$
49,434
421
—
48,260
(300)
47,960
$
$
24,207
311
—
25,080
(21,196)
3,884
(1) The negative balance for the year ended December 31, 2017 is a result of estimated costs accrued in prior periods that exceeded actual expenses incurred.
(2)
Includes all fees and costs associated with various litigations and investigations prompted by the results of the 2014 investigation conducted by the audit
committee (the “Audit Committee”) of the Company’s Board of Directors (the “Audit Committee Investigation”), including fees and costs incurred pursuant
to the Company’s advancement obligations, litigation related thereto and in connection with related insurance recovery matters, net of accrual reversals.
During the year ended December 31, 2018, the Company reversed an accrual of $10.9 million, as the Company was legally released from certain advancement
obligations, and the accrued amounts were paid directly by the Company’s insurers to the payees subsequent to December 31, 2018. There were no reversals
in the years ended December 31, 2017 and 2016.
(3)
Includes legal fees and expenses associated with litigation resulting from prior mergers and related insurance recovery matters and excludes amounts presented
in income from discontinued operations, net of income taxes in the consolidated statements of operations for the year ended December 31, 2018.
(4) Refer to Note 10 – Commitments and Contingencies for additional information.
(5)
$2.3 million recorded during the year ended December 31, 2018 relates to litigation resulting from prior mergers.
Loss Contingencies
The Company records a liability in the consolidated financial statements for loss contingencies when a loss is known or
considered probable and the amount is reasonably estimable. If the reasonable estimate of a known or probable loss is a range,
and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a material loss
is reasonably possible but not known or probable, and is reasonably estimable, the estimated loss or range of loss is disclosed.
Equity-based Compensation
The Company has an equity-based incentive award plan for non-executive directors, officers, other employees and advisors
or consultants who provide services to the Company, as applicable, and a non-executive director restricted share plan, which are
accounted for under U.S. GAAP for share-based payments. The expense for such awards is recognized over the vesting period or
when the requirements for exercise of the award have been met. See Note 12 – Equity-based Compensation for additional information
on these plans.
Per Share Data
Income (loss) per basic share of Common Stock is calculated by dividing net income (loss) less dividends on unvested Restricted
Shares of Common Stock and dividends on preferred stock by the weighted-average number of shares of Common Stock issued
and outstanding during such period. Diluted income (loss) per share of Common Stock considers the effect of potentially dilutive
shares of Common Stock outstanding during the period.
Income Taxes
The General Partner elected to be taxed as a REIT for U.S. federal income tax purposes under Sections 856 through 860 of
the Internal Revenue Code commencing with the taxable year ended December 31, 2011. We believe we are organized and
operating in such a manner as to qualify to be taxed as a REIT for the taxable year ended December 31, 2018. As a REIT, the
F-26
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
General Partner is generally not subject to federal income tax on taxable income that it distributes to its stockholders so long as
it distributes at least 90% of its annual taxable income (computed without regard to the deduction for dividends paid and excluding
net capital gains). However, the General Partner, its TRS entities, and the OP are still subject to certain state and local income,
franchise and property taxes in the various jurisdictions in which they operate. The General Partner may also be subject to federal
income taxes on certain income and excise taxes on its undistributed income.
The OP is classified as a partnership for U.S. federal income tax purposes. As a partnership, the OP is not a taxable entity for
U.S. federal income tax purposes. Instead, each partner in the OP is required to include its allocable share of the OP’s income,
gains, losses, deductions and credits for each taxable year. Under the LPA, the OP is to conduct business in such a manner as to
permit the General Partner at all times to qualify as a REIT.
A TRS is a subsidiary of a REIT that is subject to federal, state and local income taxes, as applicable. The Company’s use
of a TRS enables it to engage in certain business activities while complying with the REIT qualification requirements and to
retain any income generated by these businesses for reinvestment without the requirement to distribute those earnings. The
Company conducted substantially all of the Cole Capital business activities through a TRS until it sold the Cole Capital business
on February 1, 2018.
During the year ended December 31, 2018, the Company conducted all of its business in the United States, Puerto Rico and
Canada and filed income tax returns in the U.S. federal jurisdiction, the Canadian federal jurisdiction and various state and local
jurisdictions. With few exceptions, the Company is no longer subject to routine examinations by taxing authorities for years before
2014. Certain of the Company’s intercompany transactions that have been eliminated in consolidation for financial accounting
purposes are also subject to taxation.
The Company provides for income taxes in accordance with current authoritative accounting and tax guidance. The tax
provision or benefit related to significant or unusual items is recognized in the quarter in which those items occur. In addition, the
effect of changes in enacted tax laws, rates or tax status is recognized in the quarter in which the change occurs. The accounting
estimates used to compute the provision for or benefit from income taxes may change as new events occur, additional information
is obtained or the tax environment changes.
During the years ended December 31, 2018, 2017 and 2016, the Company recognized state and local income and franchise
tax expense of $4.7 million, $6.9 million and $6.0 million, respectively, which are included in provision for income taxes in the
accompanying consolidated statements of operations. In addition, the Company recorded a provision for federal income taxes of
$0.4 million and $1.1 million for the years ended December 31, 2018 and 2016 related to a TRS entity, which is also included in
provision for income taxes in the accompanying consolidated statements of operations. No provision for federal income taxes
related to a TRS entity was recorded for the year ended December 31, 2017. The provision for or benefit from income taxes
attributable to the Cole Capital business, substantially all of which was conducted through a TRS entity, is included in discontinued
operations for all periods presented, as discussed in Note 4 — Discontinued Operations.
The Company had no unrecognized tax benefits as of or during the years ended December 31, 2018, 2017 or 2016. Any interest
and penalties related to unrecognized tax benefits would be recognized in provision for income taxes in the accompanying
consolidated statements of operations.
As of December 31, 2018, the OP and the General Partner had no material uncertain income tax positions.
Recent Accounting Pronouncements
Adopted Accounting Standards
In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10), Recognition and
Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires equity investments (except those
accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair
value with changes in fair value recognized in net income (loss). An entity may choose to measure equity investments that do not
have a readily determinable fair value at costs minus impairment, if any, plus or minus changes resulting from observable price
changes in orderly transactions for the identical or a similar investment of the same issue. ASU 2016-01 is effective for fiscal
years, and interim periods within, beginning after December 15, 2017 and requires prospective treatment of equity securities
without readily determinable fair values. The Company adopted ASU 2016-01 as of January 1, 2018 and recorded a $5.1 million
gain, which is included in other income, net in the accompanying consolidated statements of operations, on measuring the
Company’s investments in the Cole REITs at fair value after the investments were no longer accounted for using the equity method.
F-27
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
In February 2017, the FASB issued ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial
Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial
Assets (“ASU 2017-05”), which clarifies the following: 1) nonfinancial assets within the scope of Subtopic 610-20 may include
nonfinancial assets transferred within a legal entity to a counterparty; 2) an entity should allocate consideration to each distinct
asset by applying the guidance in Topic 606 on allocating the transaction price to performance obligations; and 3) requires entities
to derecognize a distinct nonfinancial asset or distinct in substance nonfinancial asset in a partial sale transaction when it (a) does
not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with Subtopic 810
and (b) transfers control of the asset in accordance with Topic 606. The adoption of this standard will result in higher gains on the
sale of partial real estate interests, including contributions of nonfinancial assets to a joint venture or other noncontrolling investee,
due to recognizing the full gain when the derecognition criteria are met and recording the retained noncontrolling interest at its
fair value. ASU 2017-05 is effective for annual periods, and interim periods therein, beginning after December 15, 2017. ASU
2017-05 was adopted during the first quarter of fiscal year 2018, in conjunction with the Revenue ASUs, using the modified
retrospective approach. The Company also elected the practical expedient to only apply the guidance to contracts that were not
completed upon adoption. At adoption, the Company did not have any contracts that were not completed within the scope of ASU
2017-05 and as such, the adoption of ASU 2017-05 did not impact the Company’s financial statements.
Accounting Standards Not Yet Adopted
In February 2016, the FASB issued ASU 2016-02, which will require that a lessee recognize assets and liabilities on the balance
sheet for all leases with a lease term of more than 12 months, with the result being the recognition of a right of use (“ROU”) asset
and a lease liability and the disclosure of key information about the entity’s leasing arrangements. The lessor accounting model
under ASU 2016-02 is similar to existing guidance, however it limits the capitalization of initial direct leasing costs, such as
internally generated costs. The Company expects to elect all practical expedients permitted under ASC Topic 842, other than the
hindsight practical expedient, which permits entities to use hindsight in determining the lease terms. Accordingly, the Company
will retain distinction between a finance lease (i.e., capital leases under existing guidance) and an operating lease and account for
its existing operating leases as operating leases under the new guidance, without reassessing (a) whether the contracts contain a
lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic
842, or (c) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct
costs in ASC Topic 842 at lease commencement.
In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to
Topic 842. The amendments help address transition guidance as it relates to land easements. As the Company plans to elect this
practical expedient, it will only evaluate new or modified land easements upon adoption of Topic 842.
In July 2018, the FASB issued ASU 2018-10, Leases (Topic 842), which contained targeted improvements to amend
inconsistencies and clarify guidance that were brought about by stakeholders. Additionally, in July 2018, the FASB issued ASU
2018-11, Leases (Topic 842), which provided the following practical expedients: (1) a transition method that allows entities to
apply the new standard at the adoption date and to recognize a cumulative-effect adjustment to the opening balance of retained
earnings effective at the adoption date; and (2) the option for lessors to not separate lease and non-lease components provided that
certain criteria are met. The Company plans to elect the practical expedients included in ASU 2018-11. As the Company is not
electing the hindsight practical expedient, the Company does not expect to have a cumulative effect adjustment to retained earnings
upon adoption.
In December 2018, the FASB issued ASU 2018-20, Narrow-Scope Improvements for Lessors, Leases (Topic 842). This ASU
2018-20 provides an election for lessors to exclude sales and related taxes from consideration in the contract, requires lessors to
exclude from revenue and expense lessor costs paid directly to a third party by lessees, and clarifies lessors’ accounting for variable
payments related to both lease and nonlease components.
The Company is currently evaluating the impact of adoption, and anticipates this standard will have a material impact on its
consolidated balance sheets. However, the Company does not expect adoption will have a material impact on its consolidated
statements of operations. While the Company is continuing to assess potential impacts of the standard, it currently expects the
most significant impact will be the recognition of ROU assets and lease liabilities for operating leases. Our initial ROU asset and
liability will be approximately $223.0 million. The Company expects its accounting for capital leases to remain substantially
unchanged. Leases pursuant to which the Company is the lessee primarily consist of approximately 200 leases, of which the
majority are ground leases. The Company will adopt ASU 2016-12 and its related amendments beginning January 1, 2019.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”). ASU
2016-13 is intended to improve financial reporting by requiring more timely recognition of credit losses on loans and other financial
instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt
securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial
F-28
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses
that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected
credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the
collectability of the financial assets and eliminates the “incurred loss” methodology under current U.S. GAAP. In November 2018,
the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU
2018-19”). This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial
instruments. ASU 2016-13 and ASU 2018-19 are effective for fiscal years, and interim periods within, beginning after December 15,
2019. Early adoption is permitted for fiscal years, and interim periods within, beginning after December 15, 2018. The Company
is currently evaluating the impact these amendments will have on its consolidated financial statements.
Note 3– Real Estate Investments and Related Intangibles
Property Acquisitions
During the year ended December 31, 2018, the Company acquired controlling financial interests in 52 commercial properties
for an aggregate purchase price of $502.7 million (the “2018 Acquisitions”), which includes one land parcel for build-to-suit
development, further discussed below, $2.1 million related to an outstanding tenant improvement allowance recorded as a payable
as of the acquisition date and for which the Company received a credit at close, and $2.6 million of external acquisition-related
expenses that were capitalized.
During the year ended December 31, 2017, the Company acquired a controlling interest in 88 commercial properties and three
land parcels for an aggregate purchase price of $748.8 million (the “2017 Acquisitions”), which includes $3.3 million of external
acquisition-related expenses that were capitalized and includes 22 properties acquired in a nonmonetary exchange discussed below.
During the year ended December 31, 2016, the Company acquired a controlling interest in eight commercial properties for
an aggregate purchase price of $100.2 million (the “2016 Acquisitions”). Prior to the adoption of ASU 2017-01, costs related to
property acquisitions were expensed as incurred. The Company has not included pro forma information for the Company's 2016
Acquisitions, which were acquired prior to the adoption of ASU 2017-01 and met the definition of a business combination, as they
did not have a material impact on the Company's financial position or results of operations.
The following table presents the allocation of the fair values of the assets acquired and liabilities assumed during the periods
presented (in thousands):
Real estate investments, at cost:
Land
Buildings, fixtures and improvements
Total tangible assets
Acquired intangible assets:
In-place leases and other intangibles (1)
Above-market leases (2)
Assumed intangible liabilities:
Below-market leases (3)
Total purchase price of assets acquired
____________________________________
Year Ended December 31,
2018
2017
2016
$
$
86,285
350,942
437,227
$
110,634
523,445
634,079
62,791
2,750
105,940
10,445
23,187
67,865
91,052
9,613
—
(116)
502,652
$
(1,680)
748,784
$
(471)
100,194
$
(1) The weighted average amortization period for acquired in-place leases and other intangibles is 16.3 years, 15.8 years and 13.8 years for 2018 Acquisitions,
2017 Acquisitions and 2016 Acquisitions, respectively.
(2) The weighted average amortization period for acquired above-market leases is 10.8 years and 18.0 years for 2018 Acquisitions and 2017 Acquisitions,
respectively. There were no acquired above-market leases during the year ended December 31, 2016.
(3) The weighted average amortization period for acquired intangible lease liabilities is 9.9 years, 13.8 years and 10.0 years for 2018 Acquisitions, 2017
Acquisitions and 2016 Acquisitions, respectively.
As of December 31, 2018, the Company invested $3.5 million, including $0.5 million of external acquisition-related expenses
that were capitalized, in one build-to-suit development project. The Company’s estimated remaining committed investment is
$24.9 million, and the project is expected to be completed within the next 12 months.
F-29
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Future Lease Payments
The following table presents future minimum base rent payments due to the Company over the next five years and thereafter.
These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions
related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (in
thousands):
2019
2020
2021
2022
2023
Thereafter
Total
Future Minimum Operating Lease
Base Rent Payments
$
$
1,107,610
1,080,639
1,042,346
972,564
890,327
5,387,232
10,480,718
Future Minimum
Direct Financing Lease Payments (1)
2,448
$
2,135
2,014
1,925
1,541
707
10,770
$
____________________________________
(1) Related to 25 properties which are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted
cash flows of the lease payments. Amounts reflected are the minimum base rental cash payments due to the Company under the lease agreements on these
respective properties.
Property Dispositions and Real Estate Assets Held for Sale
During the year ended December 31, 2018, the Company disposed of 149 properties, including one property conveyed to a
lender in a deed-in-lieu of foreclosure transaction as discussed in Note 7 – Debt, for an aggregate gross sales price of $526.4
million, of which our share was $504.3 million after the profit participation payments related to the disposition of 34 Red Lobster
properties. The dispositions resulted in proceeds of $496.7 million after closing costs. The Company recorded a gain of $96.2
million related to the sales which is included in gain on disposition of real estate and real estate assets held for sale, net in the
accompanying consolidated statements of operations.
During the year ended December 31, 2018, the Company also disposed of one property owned by an unconsolidated joint
venture for a gross sales price of $34.1 million, of which our share was $17.1 million based on our ownership interest in the joint
venture, resulting in proceeds of $5.6 million after debt repayments of $20.4 million and closing costs. The Company recorded a
gain of $0.7 million related to the sale and liquidation of the joint venture, which is included in equity in income and gain on
disposition of unconsolidated entities in the accompanying consolidated statements of operations.
During the year ended December 31, 2017, the Company disposed of 137 properties, including one property owned by a
consolidated joint venture, six properties transferred to the lender in either a deed-in-lieu of foreclosure or foreclosure sale
transaction as discussed in Note 7 – Debt, and 15 properties disposed of in connection with a nonmonetary exchange discussed
below, for an aggregate gross sales price of $594.9 million, of which our share was $574.4 million after the profit participation
payment related to the disposition of 31 Red Lobster properties and the consolidated joint venture partner’s share of the sales price.
The dispositions resulted in proceeds of $445.5 million after a mortgage loan assumption of $66.0 million and closing costs.
Additionally, the Company’s tax provision for the year ended December 31, 2017 included $1.7 million of Canadian tax gain on
the sale of certain Canadian properties. The Company recorded a gain of $64.7 million, which is included in gain on disposition
of real estate and real estate assets held for sale, net in the accompanying consolidated statements of operations.
During the year ended December 31, 2016, the Company disposed of 301 properties, for an aggregate gross sales price of
$1.08 billion, of which our share was $1.04 billion after the profit participation payment related to the disposition of 70 Red Lobster
properties. The dispositions resulted in proceeds of $958.4 million after a mortgage loan assumption of $55.0 million and closing
costs. The Company recorded a gain of $45.7 million, which included $67.8 million of goodwill allocated to the cost basis of such
properties, which is included in gain on disposition of real estate and real estate assets held for sale, net in the accompanying
consolidated statements of operations.
F-30
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
During the year ended December 31, 2016, the Company also disposed of one property owned by an unconsolidated joint
venture for a gross sales price of $113.5 million, of which our share was $102.1 million based on our ownership interest in the
joint venture, resulting in proceeds of $42.3 million after debt repayments of $57.0 million and closing costs. The Company
recorded a gain of $10.2 million related to the sale, which is included in equity in income and gain on disposition of unconsolidated
entities in the accompanying consolidated statements of operations.
As of December 31, 2018, there were five properties classified as held for sale with a carrying value of $2.6 million, included
in assets related to real estate assets held for sale and discontinued operations, net in the accompanying consolidated balance sheet,
which are expected to be sold in the next 12 months as part of the Company’s portfolio management strategy. As of December 31,
2017, there were 30 properties classified as held for sale. During the year ended December 31, 2018, the Company recorded a loss
of $1.9 million related to held for sale properties. During the year ended December 31, 2017, the Company recorded a loss of $3.1
million related to held for sale properties. During the year ended December 31, 2016, the Company recorded a loss of $5.1 million
related to held for sale properties, which included $3.2 million of goodwill allocated to the cost basis of such properties.
Intangible Lease Assets and Liabilities
Intangible lease assets and liabilities of the Company consisted of the following as of December 31, 2018 and 2017 (amounts
in thousands, except weighted-average useful life):
Intangible lease assets:
In-place leases and other intangibles, net of accumulated
amortization of $703,909 and $599,680, respectively
Leasing commissions, net of accumulated amortization of $4,048
and $2,902, respectively
Above-market lease assets and deferred lease incentives, net of
accumulated amortization of $105,936 and $88,335, respectively
Total intangible lease assets, net
Intangible lease liabilities:
Below-market leases, net of accumulated amortization of $89,905
and $73,916, respectively
Weighted-Average
Useful Life
December 31, 2018
December 31, 2017
15.5
10.7
16.4
18.8
$
$
$
980,971
$
1,091,433
15,660
13,876
201,875
1,198,506
$
241,449
1,346,758
173,479
$
198,551
The aggregate amount of above and below-market leases and deferred lease incentives amortized and included as a net
decrease to rental revenue was $4.2 million for the year ended December 31, 2018 and $5.4 million for each of the years ended
December 31, 2017 and 2016, respectively. The aggregate amount of in-place leases, leasing commissions and other lease intangibles
amortized and included in depreciation and amortization expense was $139.6 million, $154.2 million and $170.0 million for the
years ended December 31, 2018, 2017 and 2016, respectively.
The following table provides the projected amortization expense and adjustments to rental revenue related to the intangible
lease assets and liabilities for the next five years as of December 31, 2018 (amounts in thousands):
In-place leases and other intangibles:
Total projected to be included in amortization expense
$ 126,457
$ 119,161
$ 111,335
$
97,159
$
86,311
2019
2020
2021
2022
2023
Leasing commissions:
Total projected to be included in amortization expense
1,911
1,778
1,620
1,556
1,359
Above-market lease assets and deferred lease incentives:
Total projected to be deducted from rental revenue
20,870
20,456
20,027
19,213
18,270
Below-market lease liabilities:
Total projected to be included in rental revenue
17,973
16,821
15,656
14,809
13,924
F-31
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Nonmonetary Exchange
During the year ended December 31, 2017, the Company completed a nonmonetary exchange through the simultaneous
acquisition of 22 Bob Evans properties and disposition of 15 Red Lobster properties. Pursuant to Nonmonetary Transactions, ASC
(Topic 845), the cost of a nonmonetary asset acquired in exchange for another nonmonetary asset is the fair value of the asset
surrendered to obtain the acquired nonmonetary asset, and a gain or loss should be recognized on the exchange. The fair value of
the asset received should be used to measure the cost if the fair value of the asset received is more reliable than the fair value of
the asset surrendered. The Company estimated the fair value of the Bob Evans and Red Lobster properties using valuation techniques
consistent with the income approach and concluded that the fair value was $50.1 million. As the fair value of the assets received
exceeded the book value of the assets surrendered, the Company recorded a gain of $7.4 million, which is included in gain on
disposition of real estate and real estate assets held for sale, net in the accompanying consolidated statements of operations.
Consolidated Joint Ventures
The Company had an interest in one consolidated joint venture that owned one property as of December 31, 2018 and 2017.
As of December 31, 2018 and 2017, the consolidated joint venture had total assets of $32.5 million and $33.7 million, of which
$29.9 million and $30.7 million, respectively, were real estate investments, net of accumulated depreciation and amortization. The
property was secured by a mortgage note payable, which was non-recourse to the Company and had a balance of $14.0 million
and $14.9 million, as of December 31, 2018 and 2017, respectively. The Company has the ability to control operating and financing
policies of the consolidated joint venture. There are restrictions on the use of these assets as the Company would generally be
required to obtain the approval of the joint venture partner in accordance with the joint venture agreement for any major transactions.
The Company and the joint venture partner are subject to the provisions of the joint venture agreement, which includes provisions
for when additional contributions may be required to fund certain cash shortfalls.
Unconsolidated Joint Ventures
As of December 31, 2018, the Company held an investment in an unconsolidated joint venture that owned one property with
a carrying value of $35.3 million. As of December 31, 2017, the Company held investments in two unconsolidated joint ventures
that each owned one property with an aggregate carrying value of $39.5 million. During the year ended December 31, 2018, the
Company disposed of one property owned by an unconsolidated joint venture as previously discussed in the “Property Dispositions
and Real Estate Assets Held for Sale” section herein.
The Company had a 90% legal ownership interest in the unconsolidated joint venture at December 31, 2018 and December 31,
2017 and accounts for its investment using the equity method of accounting as the Company has the ability to exercise significant
influence, but not control, over operating and financing policies of the investment. The equity method of accounting requires the
investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in earnings and distributions
from the joint venture. During the year ended December 31, 2018 the Company recognized $1.2 million of net income from
unconsolidated joint ventures. During the years ended December 31, 2017 and 2016 the Company recognized $3.3 million and
$0.9 million of net income, respectively, from two unconsolidated joint ventures. The Company’s legal ownership interest may,
at times, not equal the Company’s economic interest because of various provisions in certain joint venture agreements regarding
distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns.
The carrying amount of the unconsolidated joint venture was greater than the underlying equity in net assets by $4.7 million
as of December 31, 2018. The carrying amount of the unconsolidated joint ventures was greater than the underlying equity in net
assets by $8.6 million as of December 31, 2017. This difference relates to a purchase price allocation of goodwill and a step up in
fair value of the investment assets acquired in connection with mergers. The step up in fair value was allocated to the individual
investment assets and is being amortized in accordance with the Company’s depreciation policy. The Company and the
unconsolidated joint venture partner are subject to the provisions of the applicable joint venture agreement, which includes
provisions for when additional contributions may be required to fund certain cash shortfalls, including the Company’s share of
expansion project capital expenditures.
F-32
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Note 4 — Discontinued Operations
On November 13, 2017, the Company entered into a purchase and sale agreement (as amended by that certain First Amendment
to the Purchase and Sale Agreement, dated as of February 1, 2018, the “Cole Capital Purchase and Sale Agreement”). On February 1,
2018, the Company completed the sale of its investment management segment, Cole Capital, under the terms of the Cole Capital
Purchase and Sale Agreement. Substantially all of the Cole Capital segment’s operations were conducted through Cole Capital
Advisors, Inc. (“CCA”), an Arizona corporation and a wholly owned subsidiary of the OP. The OP sold all of the issued and
outstanding shares of common stock of CCA and certain of CCA’s subsidiaries to the Cole Purchaser, for approximately $120.0
million paid in cash at closing. The Company could also receive up to an aggregate of $80.0 million in Net Revenue Payments.
There were no Net Revenue Payments received or earned for 2018. Substantially all of the Cole Capital segment financial results
are reflected in the financial statements as discontinued operations.
The following is a summary of the assets and liabilities related to discontinued operations and real estate assets held for sale
as of December 31, 2018 and 2017 (in thousands):
Carrying amount of major classes of assets included in discontinued operations:
Cash
Intangible assets, net (1)
Other assets, net (2)
Goodwill (3)
Due from Cole REITs, net
Loss recognized on classification as held for sale (4)
Assets related to discontinued operations, net
Carrying amount of major classes of liabilities included in discontinued operations:
Accounts payable and accrued expenses
Other liabilities
Due to Cole REITs
Liabilities related to discontinued operations
___________________________________
December 31,
2018
December 31,
2017
$
$
$
$
— $
—
—
—
—
—
— $
— $
—
—
— $
2,198
9,892
6,975
124,812
1,284
(19,509)
125,652
14,269
1,512
100
15,881
(1) The intangible assets consisted of management and advisory contracts that the Company had with certain Cole REITs. Accumulated amortization was $44.1
million as of December 31, 2017.
(2)
Includes program development costs of $3.3 million as of December 31, 2017, which were net of reserves of $7.6 million.
(3) The Company performed the annual goodwill test using the $120.0 million cash proceeds provided for under the Cole Capital Purchase and Sale Agreement,
plus the estimated fair value of the Net Revenue Payments and determined the carrying amount exceeded the estimated fair value. As such, no goodwill
impairment was recorded during the year ended December 31, 2017.
(4) The Company recognized a loss of $20.0 million on classification of the discontinued operations as held for sale, of which $0.5 million represented estimated
costs to sell that were subsequently accrued in accounts payable and accrued expenses as of December 31, 2017. In determining the loss recognized on
classification as held for sale, the Company elected to account for the future Net Revenue Payments as a gain contingency. Under this approach, the Company
will not recognize any Net Revenue Payments until realized.
F-33
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The following is a summary of the financial information for discontinued operations for the years ended December 31, 2018,
2017 and 2016 (in thousands):
Revenues:
Offering-related fees and reimbursements
Transaction service fees and reimbursements
Management fees and reimbursements
Total revenues
Operating expenses:
Cole Capital reallowed fees and commissions
Transaction costs (1)
General and administrative
Amortization of intangible assets
Goodwill and intangible asset impairments
Total operating expenses
Other income, net
Loss on disposition and assets held for sale
Income (loss) before taxes
Benefit from (provision for) income taxes
Income (loss) from discontinued operations, net of income taxes
____________________________________
Year Ended December 31,
2018
2017
2016
1,027
334
6,452
7,813
$
16,096
$
36,526
13,929
76,214
106,239
$
$
12,533
68,686
117,745
602
(654)
4,450
—
—
4,398
—
(1,815)
1,600
2,095
3,695
$
23,174
9,879
—
3,802
82,558
63,783
26,148
14,490
120,931
—
252,811
91,954
292
464
(20,027)
—
(134,774)
(5,278)
(13,839)
10,837
(19,117) $ (123,937)
$
$
$
(1) The negative balance for the year ended December 31, 2018 is a result of estimated costs accrued in prior periods that exceeded actual expenses incurred.
The following is a summary of cash flows related to discontinued operations for the years ended December 31, 2018, 2017
and 2016 (in thousands):
Cash flows related to discontinued operations:
Cash flows (used in) provided by operating activities
Cash flows provided by investing activities
Income Taxes
Year Ended December 31,
2018
2017
2016
$
$
(10,468) $
$
122,915
33,232 $
35,251
— $
—
Cole Capital’s business, substantially all of which was conducted through a TRS, recognized a benefit of $2.1 million for the
year ended December 31, 2018, a provision of $13.8 million the year ended December 31, 2017 and a benefit of $10.8 million for
the year ended December 31, 2016.
F-34
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The following table presents the reconciliation of the (benefit from) provision for income taxes with the amount computed
by applying the statutory federal income tax rate to loss before income taxes for the years ended December 31, 2018, 2017 and
2016 (in thousands):
Income (loss) before taxes
Less: Income from non-taxable entities
Income (loss) attributable to taxable subsidiaries before income
taxes
Federal provision at statutory rate
Impairment of goodwill
Nondeductible portion of transaction costs and loss recognized on
classification as held for sale
Impact of change in federal tax rate
Impact of valuation allowance
State income taxes and other
Total (benefit from) provision for income taxes - Cole Capital
$
Year Ended December 31,
2018
2017
$
1,600
(685)
(5,278) $
(9,523)
2016
(134,774)
(9,008)
915
$
(14,801) $
(143,782)
$
$
192
—
(719)
—
(1,158)
(410)
(2,095) $
(5,180)
—
8,283
3,481
6,165
1,090
13,839
$
(50,324)
42,327
—
—
—
(2,840)
(10,837)
The following table presents the components of the (benefit from) provision for income taxes for the years ended December
31, 2018, 2017 and 2016 (in thousands):
Current
Federal
State
$
Total current (benefit from) provision for income taxes
Deferred
Federal
State
Total deferred (benefit from) provision for income taxes
Total (benefit from) provision for income taxes - Cole Capital
$
Year Ended December 31,
2018
2017
2016
(74) $
(166)
(240)
(1,756)
(99)
(1,855)
(2,095) $
(120) $
602
482
12,016
1,341
13,357
13,839
$
2,244
(2,762)
(518)
(9,021)
(1,298)
(10,319)
(10,837)
F-35
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Note 5 – Rent and Tenant Receivables and Other Assets, Net
Rent and tenant receivables and other assets, net consisted of the following as of December 31, 2018 and 2017 (in thousands):
December 31, 2018
December 31, 2017
Straight-line rent receivable, net (1)
Accounts receivable, net (2)
Deferred costs, net (3)
Investment in direct financing leases, net
Mortgage notes receivable, net (4)
Leasehold improvements, property and equipment, net (5)
Investment in Cole REITs
Prepaid expenses
Other assets, net
Income tax receivable
Restricted escrow deposits
Investment securities, at fair value(6)
Total
___________________________________
$
$
259,106
36,939
17,515
13,254
10,164
9,754
7,844
5,022
3,594
1,760
1,140
—
366,092
$
$
230,529
36,921
5,746
19,539
20,294
12,089
3,264
6,493
5,003
3,213
4,995
40,974
389,060
(1) Allowance for uncollectible accounts included in straight-line rent receivable, net was $1.0 million and $2.0 million as of December 31, 2018 and 2017,
respectively. As of December 31, 2018, the allowance related to suspended revenue recognition was $0.1 million. As of December 31, 2017, there was no
allowance related to suspended revenue recognition.
(2)
In the event that the collectability of a receivable is uncertain, the Company will record an increase in the allowance for uncollectible accounts in the
consolidated balance sheets and bad debt expense in property operating expenses in the consolidated statements of operations. Allowance for uncollectible
accounts was $5.3 million and $6.3 million as of December 31, 2018 and 2017, respectively. The Company suspends revenue recognition when the collectability
of amounts due pursuant to a lease is no longer reasonably assured. As of December 31, 2018 and 2017, the allowance related to suspended revenue recognition
was $9.1 million and $12.6 million, respectively.
(3) Amortization expense for deferred costs related to the revolving credit facilities totaled $7.3 million for the year ended December 31, 2018 and $10.4 million
for each of the years ended December 31, 2017 and 2016. Accumulated amortization for deferred costs related to the Revolving Credit Facility, as defined
in Note 7 – Debt, was $47.6 million and $40.3 million as of December 31, 2018 and 2017, respectively.
(4) As of December 31, 2018, the Company owned five mortgage notes receivable with a weighted-average interest rate of 6.4% and weighted-average years
to maturity of 12.1 years. During the year ended December 31, 2018, the Company sold three mortgage notes receivable with an aggregate carrying value
of $8.8 million at December 31, 2017, resulting in a net gain of $1.7 million, which is included in other income, net in the accompanying consolidated
statements of operations.
(5) Amortization expense for leasehold improvements totaled $1.2 million for each of the years ended December 31, 2018 and 2017, with no related write-offs.
Amortization expense for leasehold improvements totaled $2.3 million for the year ended December 31, 2016, inclusive of write-offs of $1.0 million.
Accumulated amortization was $5.9 million and $4.7 million as of December 31, 2018 and 2017, respectively. Depreciation expense for property and
equipment totaled $2.3 million, $1.8 million and $3.4 million for the years ended December 31, 2018, 2017 and 2016, respectively, inclusive of write-offs
of $0.8 million, $0.6 million and $1.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Accumulated depreciation was $7.0
million and $5.7 million as of December 31, 2018 and 2017, respectively.
(6) During the year ended December 31, 2018, two commercial mortgage-backed securities (“CMBS”) were repaid and six CMBS were sold for an aggregate
gross sales price of $36.0 million for a net realized loss of $2.2 million, which is included in other income, net in the accompanying consolidated statements
of operations.
Note 6 – Fair Value Measures
The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such
as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the
investment. U.S. GAAP guidance defines three levels of inputs that may be used to measure fair value:
Level 1 – Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access
at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be
corroborated with observable market data for substantially the entire contractual term of the asset or liability.
Level 3 – Unobservable inputs reflect the entity’s own assumptions about the assumptions that market participants would use
in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation
techniques.
F-36
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors
specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different
levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based
on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy
disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from
quarter to quarter. Changes in the type of inputs may result in a reclassification for certain assets. The Company does not expect
that changes in classifications between levels will be frequent.
Items Measured at Fair Value on a Recurring Basis
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis
as of December 31, 2018 and 2017, aggregated by the level in the fair value hierarchy within which those instruments fall (in
thousands):
Level 1
Level 2
Level 3
Balance as of
December 31, 2018
Assets:
Derivative assets
Investment in Cole REITs
Total assets
Assets:
CMBS
Derivative assets
Total assets
$
$
$
$
— $
—
— $
544
—
544
$
$
— $
7,844
7,844
Level 1
Level 2
Level 3
— $
—
— $
— $
627
627
$
40,974
—
40,974
544
7,844
8,388
Balance as of
December 31, 2017
40,974
627
41,601
$
$
$
CMBS – The Company’s CMBS were carried at fair value and were valued using Level 3 inputs. The Company used estimated
non-binding quoted market prices from the trading desks of financial institutions that are dealers in such securities for similar
CMBS tranches that actively participate in the CMBS market. Broker quotes are only indicative of fair value and may not necessarily
represent what the Company would receive in an actual trade for the applicable instrument. Management determined that the prices
were representative of fair value through its knowledge and experience in the market. The significant unobservable input used in
valuing the CMBS was the discount rate or market yield used to discount the estimated future cash flows expected to be received
from the underlying investment, which include both future principal and interest payments. Significant increases or decreases in
the discount rate or market yield would result in a decrease or increase in the fair value measurement. The following risks were
included in the consideration and selection of discount rates or market yields: risk of default, rating of the investment and comparable
company investments.
Derivative Assets and Liabilities – The Company’s derivative financial instruments relate to interest rate swaps. The valuation
of derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This
analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based
inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments are incorporated into the
fair values to account for the Company’s potential nonperformance risk and the performance risk of the counterparties.
Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair
value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of
current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31,
2018 and 2017, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation
of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of the
Company’s derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level
2 of the fair value hierarchy.
F-37
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Investment in Cole REITs – The fair values of CCIT II and CCPT V were estimated using the net asset value per share. The
Company determined that the CCIT III per share primary offering price net of selling commissions and dealer manager fees
approximated fair value. Each of the Cole REIT’s share redemption programs includes restrictions that limit the number of shares
redeemed by the respective Cole REIT. CCIT II has estimated that it will commence a liquidity event over the next three to five
years. CCPT V has estimated that it will commence a liquidity event over the next three to six years following the termination of
its initial public offering. CCIT III has estimated that it will commence a liquidity event five to seven years following the termination
of its initial public offering. Subsequent to December 31, 2018, CCIT III terminated its primary offering, however it continues to
issue shares pursuant to its distribution reinvestment plan.
The following are reconciliations of the changes in assets and liabilities with Level 3 inputs in the fair value hierarchy for the
year ended December 31, 2018 (in thousands):
Beginning balance, January 1, 2018
Total gains and losses
Unrealized loss included in other comprehensive income, net
Realized loss included in other income, net
Unrealized gain included in other income, net
Purchases, issuance, settlements
Return of principal received
Amortization included in net income, net
Sale of investments
Ending Balance, December 31, 2018
____________________________________
CMBS
$
40,974
Investment in
Cole REITs (1)
3,264
$
(205)
(34)
—
(4,864)
157
(36,028)
$
— $
—
—
5,102
—
—
(522)
7,844
(1) As discussed in Note 2 – Summary of Significant Accounting Policies, as of December 31, 2017, the Company accounted for its investment in Cole REITs
using the equity method of accounting. Subsequent to the sale of Cole Capital, the Company retained interests in CCIT II, CCIT III and CCPT V, which were
carried at fair value as of December 31, 2018.
The following are reconciliations of the changes in assets and liabilities with Level 3 inputs in the fair value hierarchy for the
year ended December 31, 2017 (in thousands):
Beginning balance, January 1, 2017
Total gains and losses
Unrealized loss included in other comprehensive income, net
Purchases, issuance, settlements
Return of principal received
Amortization included in net income, net
Ending Balance, December 31, 2017
CMBS
$
47,215
(951)
(4,388)
(902)
40,974
$
F-38
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Items Measured at Fair Value on a Non-Recurring Basis
Certain financial and nonfinancial assets and liabilities are measured at fair value on a non-recurring basis and are subject to
fair value adjustments in certain circumstances, such as when there is evidence of impairment.
Real Estate Investments – The Company performs quarterly impairment review procedures, primarily through continuous
monitoring of events and changes in circumstances that could indicate the carrying value of its real estate assets may not be
recoverable.
As part of the Company’s quarterly impairment review procedures, net real estate assets representing 70 properties were
deemed to be impaired and their carrying values totaling $134.0 million were reduced to their estimated fair value of $79.4 million,
resulting in impairment charges of $54.6 million during the year ended December 31, 2018. The impairment charges relate to
certain office, retail and restaurant properties that, during 2018, management identified for potential sale or determined, based on
discussions with the current tenants, would not be re-leased.
During the year ended December 31, 2017, net real estate assets related to 69 properties, with carrying values totaling $161.9
million, were deemed to be impaired and their carrying values were reduced to their estimated fair values of $111.4 million,
resulting in impairment charges of $50.5 million. The majority of the impairment charges relate to certain office, restaurant and
other properties that, during 2017, management identified for potential sale or determined, based on discussions with the current
tenants, would not be re-leased.
During the year ended December 31, 2016 net real estate assets related to 153 properties, with carrying values totaling $668.2
million, were deemed to be impaired and their carrying values were reduced to their estimated fair values of $485.4 million,
resulting in impairment charges of $182.8 million. A majority of the impairment charges related to properties identified by
management for potential sale as part of its portfolio management strategy to reduce exposure to office properties. Additionally,
a tenant of 59 restaurants filed for bankruptcy.
The Company estimates fair values using Level 3 inputs and uses a combined income and market approach, specifically using
discounted cash flow analysis and recent comparable sales transactions. The evaluation of real estate assets for potential impairment
requires the Company’s management to exercise significant judgment and make certain key assumptions, including, but not limited
to, the following: (1) capitalization rate; (2) discount rates; (3) number of years property will be held; (4) property operating
expenses; and (5) re-leasing assumptions including number of months to re-lease, market rental revenue and required tenant
improvements. There are inherent uncertainties in making these estimates such as market conditions and performance and
sustainability of the Company’s tenants. For the Company’s impairment tests for the real estate assets during the year ended
December 31, 2018, the Company used a range of discount rates from 7.4% to 8.5% with a weighted-average rate of 7.9% and
capitalization rates from 6.9% to 8.5% with a weighted-average rate of 7.8%.
The following table presents the impairment charges by asset class recorded during the years ended December 31, 2018, 2017
and 2016 (dollar amounts in thousands):
Properties impaired
Asset classes impaired:
Investment in real estate assets, net
Investment in direct financing leases, net
Below-market lease liabilities, net
Total impairment loss
Year Ended December 31,
2018
2017
2016
70
69
153
$
$
53,562
1,381
(296)
54,647
$
$
50,087
553
(92)
50,548
$
$
183,240
—
(421)
182,819
F-39
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Fair Value of Financial Instruments
The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, due to affiliates and
accounts payable approximate their carrying value in the accompanying consolidated balance sheets due to their short-term nature
and are classified as Level 1 under the fair value hierarchy. The fair values of the Company’s financial instruments are reported
below (dollar amounts in thousands):
Level
Carrying Amount at
December 31, 2018
Fair Value at
December 31, 2018
Carrying Amount at
December 31, 2017
Fair Value at
December 31, 2017
Assets:
Mortgage notes receivable, net
1, 3
Liabilities (1):
Mortgage notes payable and other
debt, net
Corporate bonds, net
Convertible debt, net
Credit facility
Total liabilities
2
2
2
2
$
$
$
10,164
$
10,164
$
20,294
$
28,272
1,933,209
3,395,885
398,591
403,000
6,130,685
$
$
1,961,496
3,368,928
396,905
403,000
6,130,329
$
$
2,095,690
2,848,768
992,218
185,000
6,121,676
$
$
2,144,522
2,922,027
1,012,349
185,000
6,263,898
_______________________________________________
(1) Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs.
Mortgage notes receivable, net – The fair value of the Company’s mortgage notes receivable at December 31, 2017 were
valued using Level 3 inputs, which were estimated with a discounted cash flow analysis, utilizing scheduled cash flows and discount
rates estimated by management to approximate market interest rates.
As discussed in Note 16 – Subsequent Events, the Company sold four of the remaining five mortgage notes receivable
subsequent to December 31, 2018. In connection with the Company’s decision to sell and classify them as held for sale, the fair
value of the Company’s mortgage notes receivable at December 31, 2018 were estimated using signed purchase and sale agreements
for the four sold subsequent to December 31, 2018 and for the one remaining mortgage note receivable, the fair value was estimated
using bids obtained by third-party valuation services that utilize observable market inputs. This resulted in transfers from Level 3
to Level 1.
Debt – The fair value is estimated by an independent third party using a discounted cash flow analysis, based on management’s
estimates of observable market interest rates. Corporate bonds and convertible debt are valued using quoted market prices in active
markets with limited trading volume when available.
F-40
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Note 7 – Debt
As of December 31, 2018, the Company had $6.1 billion of debt outstanding, including net premiums and net deferred financing
costs, with a weighted-average years to maturity of 4.2 years and a weighted-average interest rate of 4.3%. The following table
summarizes the carrying value of debt as of December 31, 2018 and 2017, and the debt activity for the year ended December 31,
2018 (in thousands):
Balance as of
December 31, 2017
Debt Issuances
Repayments,
Extinguishment
and Assumptions
Accretion and
Amortization
Balance as of
December 31, 2018
Year Ended December 31, 2018
Mortgage notes payable:
Outstanding balance
Net premiums (1)
Deferred costs
Mortgages notes payable, net
Corporate bonds:
Outstanding balance
Discount (2)
Deferred costs
Corporate bonds, net
Convertible debt:
Outstanding balance
Discount (2)
Deferred costs
Convertible debt, net
Credit facility:
Outstanding balance
Deferred costs (3)
Credit facility, net
$
$
2,071,038
24,652
(12,998)
2,082,692
$
187
—
(43)
144
(154,093) $
(191)
30
(154,254)
— $
(8,384)
2,459
(5,925)
2,850,000
(1,232)
(27,274)
2,821,494
1,000,000
(7,782)
(7,960)
984,258
185,000
—
185,000
550,000
(3,696)
(4,825)
541,479
—
—
—
—
—
—
—
—
(597,500)
—
—
(597,500)
1,934,000
(1,236)
1,932,764
(1,716,000)
—
(1,716,000)
—
813
4,823
5,636
—
3,873
4,252
8,125
—
9
9
1,917,132
16,077
(10,552)
1,922,657
3,400,000
(4,115)
(27,276)
3,368,609
402,500
(3,909)
(3,708)
394,883
403,000
(1,227)
401,773
Total debt
$
6,073,444
$
2,474,387
$
(2,467,754) $
7,845
$
6,087,922
____________________________________
(1) Net premiums on mortgage notes payable were recorded upon the assumption of the respective mortgage notes in relation to the various mergers and
acquisitions. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective mortgage notes
using the effective-interest method.
(2) Discounts on the corporate bonds and convertible debt were recorded based upon the fair value of the respective debt instruments as of the respective issuance
dates. Amortization of these discounts is recorded as an increase to interest expense over the remaining term of the respective debt instruments using the
effective-interest method.
(3) Deferred costs relate to the Credit Facility Term Loan.
F-41
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Mortgage Notes Payable
The Company’s mortgage notes payable consisted of the following as of December 31, 2018 (dollar amounts in thousands):
Fixed-rate debt (4)
Variable-rate debt
Total
Encumbered
Properties
458
1
459
Gross Carrying Value of
Collateralized Properties (1)
3,760,194
$
33,384
3,793,578
$
Outstanding
Balance
1,903,095
14,037
1,917,132
$
$
Weighted-Average
Interest Rate (2)
(5)
4.92%
5.72%
4.93%
Weighted-Average
Years to Maturity (3)
3.5
0.6
3.4
____________________________________
(1) Gross carrying value is gross real estate assets, including investment in direct financing leases, net of gross real estate liabilities.
(2) Weighted average interest rate is computed using the interest rate in effect until the anticipated repayment date. Should the loan not be repaid at the anticipated
repayment date, the applicable interest rate will increase as specified in the respective loan agreement until the extended maturity date.
(3) Weighted average years remaining to maturity is computed using the anticipated repayment date as specified in each loan agreement, where applicable.
(4)
Includes $50.7 million of variable-rate debt fixed by way of interest rate swap arrangements.
(5) Weighted-average interest rate for variable-rate debt represents the interest rate in effect as of December 31, 2018.
The Company’s mortgage loan agreements generally restrict corporate guarantees and require the maintenance of financial
covenants, including maintenance of certain financial ratios (such as debt service coverage ratios and minimum net operating
income). The mortgage loan agreements contain no dividend restrictions except in the event of default or when a distribution would
drive liquidity below the applicable thresholds. At December 31, 2018, the Company believes that it was in compliance with the
financial covenants under the mortgage loan agreements and had no restrictions on the payment of dividends.
On April 12, 2018, the Company entered into a deed-in-lieu of foreclosure agreement with the lender of a mortgage loan,
secured by one property, with an outstanding balance of $16.2 million at the time of default and conveyed all interest in the property
to satisfy the mortgage loan. As a result of the deed-in-lieu of foreclosure transaction, the Company recognized a gain on forgiveness
of debt of $5.2 million, which is included in gain (loss) on extinguishment and forgiveness of debt, net in the accompanying
consolidated statements of operations.
During the year ended December 31, 2017, the Company entered into deed-in-lieu of foreclosure agreements or completed
the foreclosure with the lenders of three mortgage loans, secured by six properties, which resulted in a gain on forgiveness of debt
of $20.5 million.
The following table summarizes the scheduled aggregate principal repayments due on mortgage notes subsequent to
December 31, 2018 (in thousands):
2019
2020
2021
2022
2023
Thereafter
Total
Total
167,279
265,189
352,768
314,898
144,843
672,155
1,917,132
$
$
F-42
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Corporate Bonds
As of December 31, 2018, the OP had $3.40 billion aggregate principal amount of senior unsecured notes (the “Senior Notes”)
outstanding comprised of the following (dollar amounts in thousands):
Outstanding Balance
December 31, 2018
Interest Rate
Maturity Date
2019 Senior Notes
2021 Senior Notes
2024 Senior Notes
2025 Senior Notes
2026 Senior Notes
2027 Senior Notes
Total balance and weighted-average interest rate
$
$
750,000
400,000
500,000
550,000
600,000
600,000
June 1, 2021
3.000% February 6, 2019
4.125%
4.600% February 6, 2024
4.625% November 1, 2025
4.875%
3.950% August 15, 2027
June 1, 2026
3,400,000
4.129%
On October 16, 2018, the Company closed a senior note offering, consisting of $550.0 million aggregate principal amount of
the Operating Partnership’s 4.625% Senior Notes due 2025 (the “2025 Senior Notes”).
The Senior Notes are guaranteed by the General Partner. The OP may redeem all or a part of any series of the Senior Notes
at any time, at its option, for the redemption prices set forth in the indenture governing the Senior Notes. If the redemption date
is 30 or fewer days prior to the maturity date with respect to the 2019 Senior Notes and the 2021 Senior Notes, is 60 or fewer days
prior to the maturity date with respect to the 2025 Senior Notes or is 90 or fewer days prior to the maturity date with respect to
the 2024 Senior Notes, the 2026 Senior Notes and the 2027 Senior Notes, the redemption price will equal 100% of the principal
amount of the Senior Notes of the applicable series to be redeemed, plus accrued and unpaid interest on the amount being redeemed
to, but excluding, the applicable redemption date. The Senior Notes are registered under the Securities Act of 1933, as amended
and are freely transferable.
The indenture governing our Senior Notes requires us to maintain financial ratios which include maintaining (i) a maximum
limitation on incurrence of total debt less than or equal to 65% of Total Assets (as defined in the indenture), (ii) maximum limitation
on incurrence of secured debt less than or equal to 40% of Total Assets (as defined in the indenture), (iii) a minimum debt service
coverage ratio of at least 1.5x and (iv) a minimum unencumbered asset value of at least 150% of the aggregate principal amount
of all of the outstanding Unsecured Debt (as defined in the indenture). As of December 31, 2018, the Company believes that it
was in compliance with the financial covenants of our Senior Notes based on the covenant limits and calculations in place at that
time.
Convertible Debt
During the year ended December 31, 2018, the Company’s convertible senior notes due August 1, 2018 (the “2018 Convertible
Notes”) matured and the principal outstanding of $597.5 million, plus accrued and unpaid interest thereon, was repaid. The interest
rate on the 2018 Convertible Notes was 3.00% annually.
As of December 31, 2018, the Company had convertible senior notes due December 15, 2020 (the “2020 Convertible Notes”)
with a balance of $402.5 million outstanding, which excludes the carrying value of the conversion options recorded within additional
paid-in capital of $12.8 million and the unamortized discount of $3.9 million. The discount will be amortized over the remaining
term of 2.0 years. The 2020 Convertible Notes bear interest at an annual rate of 3.75%.
The 2020 Convertible Notes may be converted into cash, shares of the Company’s Common Stock or a combination thereof,
in limited circumstances prior to June 15, 2020, and may be converted into such consideration at any time on or after June 15,
2020. As of December 31, 2018, the conversion rate was 66.7249 shares of the Company’s Common Stock per $1,000 principal
amount of 2020 Convertible Notes, which reflects adjustments to the initial conversion rate pursuant to the terms of the applicable
indenture as a result of cash dividend payments. There were no changes to the terms of the 2020 Convertible Notes during the
year ended December 31, 2018 and the Company believes that it was in compliance with the financial covenants pursuant to the
indenture governing the 2020 Convertible Notes as of December 31, 2018.
F-43
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Credit Facility
On May 23, 2018, the General Partner, as guarantor, and the OP, as borrower, entered into a credit agreement with Wells Fargo
Bank, National Association as administrative agent and other lenders party thereto (the “Credit Agreement”). The Credit Agreement
provides for a $2.0 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and a $900.0 million unsecured
term loan facility (the “Credit Facility Term Loan,” together with the Revolving Credit Facility, the “Credit Facility”), which is
available through February 23, 2019, for up to four borrowings of delayed-draw term loans. In connection with entering into the
Credit Agreement, the OP repaid all of the outstanding obligations under the amended and restated credit agreement dated as of
June 30, 2014 (as amended, the “2014 Credit Agreement”) and the 2014 Credit Agreement was terminated. The 2014 Credit
Agreement provided for a $2.3 billion revolving credit facility and was scheduled to terminate on June 30, 2018.
As of December 31, 2018, the outstanding balance under the Revolving Credit Facility was $253.0 million. As of December 31,
2018, $150.0 million had been drawn on the Credit Facility Term Loan. The maximum aggregate dollar amount of letters of credit
that may be outstanding at any one time under the Credit Facility is $50.0 million.
The Revolving Credit Facility generally bears interest at an annual rate of London Inter-Bank Offer Rate (“LIBOR”) plus
0.775% to 1.55% or Base Rate plus 0.00% to 0.55% (based upon the General Partner’s then current credit rating). “Base Rate” is
defined as the highest of the prime rate, the federal funds rate plus 0.50% or a floating rate based on one month LIBOR plus 1.0%,
determined on a daily basis. The Credit Facility Term Loan generally bears interest at an annual rate of LIBOR plus 0.85% to
1.75%, or Base Rate plus 0.00% to 0.75% (based upon the General Partner’s then current credit rating). In addition, the Credit
Agreement provides the flexibility for interest rate auctions, pursuant to which, at the Company’s election, the Company may
request that lenders make competitive bids to provide revolving loans, which competitive bids may be at pricing levels that differ
from the foregoing interest rates.
In the event of default, at the election of a majority of the lenders (or automatically upon a bankruptcy event of default with
respect to the OP or the General Partner), the commitments of the lenders under the Credit Facility will terminate, and payment
of any unpaid amounts in respect of the Credit Facility will be accelerated. The Revolving Credit Facility terminates on May 23,
2022, unless extended in accordance with the terms of the Credit Agreement. The Credit Agreement provides for two six-month
extension options with respect to the Revolving Credit Facility, exercisable at the OP’s election and subject to certain customary
conditions, as well as certain customary “amend and extend” provisions. Any term loans outstanding under the Credit Facility
Term Loan mature on May 23, 2023. At any time, upon timely notice by the OP and subject to any breakage fees, the OP may
prepay borrowings under the Credit Facility (subject to certain limitations applicable to the prepayment of any loans obtained
through an interest rate auction, as described above). The OP incurs a facility fee equal to 0.10% to 0.30% per annum (based upon
the General Partner’s then current credit rating) multiplied by the commitments (whether or not utilized) in respect of the Revolving
Credit Facility. In addition, the OP incurs a ticking fee equal to 0.25% multiplied by unused commitments in respect of the Credit
Facility Term Loan. The OP also incurs customary administrative agent, letter of credit issuance, letter of credit fronting, extension
and other fees.
The Credit Facility requires restrictions on corporate guarantees, as well as the maintenance of financial covenants, including
the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios). The key financial
covenants in the Credit Facility, as defined and calculated per the terms of the Credit Agreement, include maintaining (i) a maximum
leverage ratio less than or equal to 60%, (ii) a minimum fixed charge coverage ratio of at least 1.5x, (iii) a secured leverage ratio
less than or equal to 45%, (iv) a total unencumbered asset value ratio less than or equal to 60% and (v) a minimum unencumbered
interest coverage ratio of at least 1.75x. The Company believes that it was in compliance with the financial covenants pursuant to
the Credit Agreement and is not restricted from accessing any borrowing availability under the Credit Facility as of December 31,
2018.
In connection with entering into the Credit Agreement, the Company capitalized an aggregate $20.7 million in lender fees
and third-party costs in respect of the Revolving Credit Facility and the Credit Facility Term Loan, which will be amortized over
the respective terms. Deferred financing costs, net of accumulated amortization, related to the Revolving Credit Facility are included
in rent and other tenant receivables and other assets, net in the accompanying consolidated balance sheets. Deferred financing
costs, net of accumulated amortization, related to the Credit Facility Term Loan outstanding balance are included in credit facility,
net in the accompanying consolidated balance sheets.
F-44
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Note 8 – Supplemental Cash Flow Disclosures
Supplemental cash flow information was as follows for the years ended December 31, 2018, 2017 and 2016 (in thousands):
Supplemental disclosures:
Cash paid for interest
Cash paid for income taxes
Cash received from federal income tax refund
Non-cash investing and financing activities:
Accrued capital expenditures, tenant improvements and real estate
developments
Accrued deferred financing costs
Distributions declared and unpaid
Accrued equity issuance costs
Mortgage note payable relieved by foreclosure or a deed-in-lieu of foreclosure
Mortgage notes payable assumed in real estate disposition
Real estate investments received from a ground lease expiration and other
lease related transactions
Real estate investments received from a property-related legal settlement
Nonmonetary exchanges:
Real estate investments received
Real estate investments relinquished and gain on disposition
Rent and tenant receivables, intangible lease liability and other assets, net
Note 9 – Accounts Payable and Accrued Expenses
Year Ended December 31,
2018
2017
2016
267,400
5,589
2,939
12,648
67
148,383
$
$
$
$
$
$
260,951
11,280
16,686
$
$
$
317,170
20,279
—
6,578
$
7,701
— $
3
149,768
$
149,281
— $
$
16,200
— $
$
100,388
— $
66,000
1,386
$
— $
259
775
$
$
$
— $
— $
— $
$
50,204
(47,474) $
(2,511) $
9
38,050
55,000
—
—
—
—
—
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Accounts payable and accrued expenses consisted of the following as of December 31, 2018 and 2017 (in thousands):
Accrued interest
Accrued real estate taxes
Accrued legal fees
Accounts payable
Accrued other
Total
Note 10 – Commitments and Contingencies
Litigation
December 31, 2018
43,916
$
25,208
32,715
2,673
41,099
145,611
$
December 31, 2017
47,116
$
26,131
30,854
2,570
29,803
136,474
$
The Company is involved in various routine legal proceedings and claims incidental to the ordinary course of its business.
There are no material legal proceedings pending against the Company, except as follows:
Government Investigations and Litigation Relating to the Audit Committee Investigation
As previously reported, on October 29, 2014, the Company filed a Current Report on Form 8-K (the “October 29 8-K”)
reporting the Audit Committee’s conclusion, based on the preliminary findings of its investigation, that certain previously issued
consolidated financial statements of the Company, including those included in the Company’s Annual Report on Form 10-K for
the year ended December 31, 2013 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2014 and June 30, 2014,
and related financial information should no longer be relied upon. The Company also reported that the Audit Committee had based
its conclusion on the preliminary findings of its investigation into concerns regarding accounting practices and other matters that
F-45
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
were first reported to the Audit Committee in early September 2014 and that the Audit Committee believed that an error in the
calculation of adjusted funds from operations for the first quarter of 2014 had been identified but intentionally not corrected when
the Company reported its financial results for the three and six months ended June 30, 2014. Prior to the filing of the October 29
8-K, the Audit Committee previewed for the SEC the information contained in the filing. Subsequent to that filing, the SEC provided
notice that it had commenced a formal investigation and issued subpoenas calling for the production of various documents. In
addition, the United States Attorney’s Office for the Southern District of New York contacted counsel for the Audit Committee
and counsel for the Company with respect to this matter, and the Secretary of the Commonwealth of Massachusetts issued a
subpoena calling for the production of various documents. The Company has been cooperating with these regulators in their
investigations.
In connection with these investigations, on September 8, 2016, the United States Attorney’s Office for the Southern District
of New York announced the filing of criminal charges against the Company’s former Chief Financial Officer and former Chief
Accounting Officer (the “Criminal Action”), as well as the fact that the former Chief Accounting Officer pleaded guilty to the
charges filed. Also on September 8, 2016, the SEC announced the filing of a civil complaint against the same two individuals in
the United States District Court for the Southern District of New York. On June 30, 2017, following a jury trial, the former Chief
Financial Officer was convicted of the charges filed. Both the former Chief Accounting Officer and the former Chief Financial
Officer have entered into settlement agreements with the SEC resolving the charges brought against them.
The United States Attorney’s Office has indicated that it does not intend to bring criminal charges against the Company arising
from its investigation. In addition, the Company has not been in contact with the Massachusetts regulator since June 2015 and
believes the investigation is concluded. In March 2018, investigative staff of the SEC’s enforcement division inquired whether the
Company wished to discuss a resolution of potential civil charges the SEC may bring with respect to certain matters investigated
by the staff stemming from the announcement made on October 29, 2014. The Company has been cooperating with the SEC staff’s
investigation since its inception and is engaged in such discussions with the staff. The timing and substance of the ultimate resolution
of these discussions is unknown.
As discussed below, the Company and certain of its former officers and directors have been named as defendants in a number
of lawsuits filed following the October 29 8-K, including class actions, individual actions and derivative actions seeking money
damages and other relief under the federal securities laws and state laws in both federal and state courts in New York, Maryland
and Arizona.
Between October 30, 2014 and January 20, 2015, the Company and certain of its former officers and directors, among other
individuals and entities, were named as defendants in ten securities class action complaints filed in the United States District Court
for the Southern District of New York. The court consolidated these actions under the caption In re American Realty Capital
Properties, Inc. Litigation, No. 15-MC-00040 (AKH) (the “SDNY Consolidated Securities Class Action”). The plaintiffs filed a
second amended class action complaint on December 11, 2015, which asserted claims for violations of Sections 11, 12(a)(2) and
15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. On September 8, 2016, the court issued an order directing plaintiffs to file a third amended complaint to reflect certain
prior rulings by the court in connection with various motions to dismiss. The third amended complaint was filed on September
30, 2016 and the defendants were not required to file new answers. On August 31, 2017, the court issued an order granting plaintiffs’
motion for class certification. Defendants’ petitions seeking leave to appeal the court’s order granting class certification were
denied on January 24, 2018. Fact depositions were concluded at the end of 2018 and at a status conference in November 2018,
the court ordered all summary judgment motions to be filed by February 8, 2019, with briefing on all motions to be completed by
April 5, 2019. The next status conference with the court is scheduled for April 17, 2019 and trial is scheduled for September 9,
2019.
F-46
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The Company, certain of its former officers and directors, and the OP, among others, were also named as defendants in thirteen
individual securities fraud actions filed in the United States District Court for the Southern District of New York: Jet Capital Master
Fund, L.P. v. American Realty Capital Properties, Inc., et al., No. 15-cv-307 (the “Jet Capital Action”); Twin Securities, Inc. v.
American Realty Capital Properties, Inc., et al., No. 15-cv-1291; HG Vora Special Opportunities Master Fund, Ltd v. American
Realty Capital Properties, Inc., et al., No. 15-cv-4107; BlackRock ACS US Equity Tracker Fund, et al. v. American Realty Capital
Properties, Inc. et al., No. 15-cv-08464; PIMCO Funds: PIMCO Diversified Income Fund, et al. v. American Realty Capital
Properties, Inc. et al., No. 15-cv-08466; Clearline Capital Partners LP, et al. v. American Realty Capital Properties, Inc. et al., No.
15-cv-08467; Pentwater Equity Opportunities Master Fund Ltd., et al. v. American Realty Capital Properties, Inc. et al., No. 15-
cv-08510; Archer Capital Master Fund, et al. v. American Realty Capital Properties, Inc. et al, No. 16-cv-05471; Atlas Master
Fund et al. v. American Realty Capital Properties, Inc. et al., No. 16-cv-05475; Eton Park Fund, L.P. v. American Realty Capital
Properties, Inc., et al., No. 16-cv-09393; Reliance Standard Life Insurance Company, et al, v. American Realty Capital Properties,
Inc. et al, No. 17-cv-02796; Fir Tree Capital Opportunity Master Fund, L.P. et al. v. American Realty Capital Properties, Inc. et
al., No. 17-cv-04975; and Cohen & Steers Institutional Realty Shares, Inc. et al v. American Realty Capital Properties, Inc. et al.,
No. 18-cv-06770, (collectively, the “Opt-Out Actions”). The Opt-Out Actions assert claims arising out of allegedly false and
misleading statements in connection with the purchase or sale of the Company’s securities. The Company entered into a series of
agreements dated September 30 through October 26, 2018, to settle twelve of the thirteen pending Opt-Out Actions (the “Opt Out
Settlement Agreements”) brought by plaintiffs holding shares of common stock and swaps referencing common stock representing
approximately 18% of VEREIT’s outstanding shares of common stock outstanding at the end of the period covered by the litigations,
for an aggregate payment of $127.5 million. The Opt Out Settlement Agreements contain mutual releases by both Plaintiffs and
the Company, although the Company retains the right to pursue any and all claims against the other defendants in each Action
and/or third parties, including claims for contribution for amounts paid in the settlement. The Opt Out Settlement Agreements do
not contain any admission of liability, wrongdoing or responsibility by any of the parties. The only remaining opt out action is
the Jet Capital Action, which is proceeding on the same summary judgment and trial schedule as the SDNY Consolidated Securities
Class Action.
On October 27, 2015, the Company and certain of its former officers, among others, were also named as defendants in an
individual securities fraud action filed in the United States District Court for the District of Arizona, captioned Vanguard Specialized
Funds, et al. v. VEREIT, Inc. et al., No. 15-cv-02157 (the “Vanguard Action”, and such plaintiffs, “Plaintiffs”). The Vanguard
Action asserted claims arising out of allegedly false and misleading statements in connection with the purchase or sale of the
Company’s securities. On June 7, 2018, the Company entered into a Settlement Agreement and Release (the “Settlement
Agreement”) to settle the Vanguard Action. Pursuant to the terms of the Settlement Agreement, the Plaintiffs filed a motion to
dismiss all claims against the Company and the other defendants with prejudice, which was granted by the court on June 19, 2018,
and the Company paid Plaintiffs the sum of $90 million in connection with the settlement of the claims. The Settlement Agreement
contains mutual releases by both Plaintiffs and the Company, although the Company retains the right to pursue any and all claims
against the other defendants in the Action and/or third parties, including claims for contribution for amounts paid in the settlement.
The Settlement Agreement does not contain any admission of liability, wrongdoing or responsibility by any of the parties. Vanguard’s
holdings accounted for approximately 13% of the Company’s outstanding shares of common stock held at the end of the period
covered by the various pending shareholder actions.
In addition to the settlement of the opt-out actions and the Vanguard Action discussed above, on February 5, 2019, the Company
entered into a series of agreements to settle claims with shareholders who decided not to participate as class members in the SDNY
Consolidated Securities Class Action. Pursuant to the terms of the settlement agreements, the shareholders released all claims that
were the subject matter of the SDNY Consolidated Securities Class Action and the Company made payments totaling $15.7 million.
In total, the Company has now settled claims of shareholders who held shares of common stock and swaps referencing common
stock representing approximately 33.5% of VEREIT’s outstanding shares of common stock held at the end of the period covered
by the various pending shareholder actions for payments totaling $233.2 million, which is recorded in “Litigation, merger and
other non-routine costs, net of insurance recoveries” in the accompanying consolidated statement of operations for the year ended
December 31, 2018.
The Company was also named as a nominal defendant, and certain of its former officers and directors were named as defendants,
in shareholder derivative actions filed in the United States District Court for the Southern District of New York: Witchko v. Schorsch,
et al., No. 15-cv-06043 (the “Witchko Action”); and Serafin, et al. v. Schorsch, et al., No. 15-cv-08563 (the “Serafin Action”). The
court consolidated the Witchko Action and the Serafin Action (together the “SDNY Derivative Action”) and the plaintiffs designated
the complaint filed in the Witchko Action as the operative complaint in the SDNY Derivative Action. The SDNY Derivative Action
seeks money damages and other relief on behalf of the Company for alleged breaches of fiduciary duty, among other claims. On
February 12, 2016, the Company and other defendants filed a motion to dismiss the SDNY Derivative Action due to plaintiffs’
failure to plead facts demonstrating that the Board’s decision to refuse plaintiffs’ pre-suit demands was wrongful and not a protected
F-47
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
business judgment. On June 9, 2016, the court granted in part and denied in part the Company’s and other defendants’ motions to
dismiss. Plaintiffs filed an amended complaint on June 30, 2016, and the Company and other defendants filed answers to the
amended complaint on July 22, 2016. Discovery and summary judgment briefing in the Witchko Action is being coordinated with
the SDNY Consolidated Securities Class Action.
On December 3, 2015, the Company was named as a nominal defendant and certain of its former officers and directors were
named as defendants in a shareholder derivative action filed in the Circuit Court for Baltimore City in Maryland, Frampton v.
Schorsch, et al., No. 24-C-15-006269 (the “Frampton Action”). The Frampton Action seeks money damages and other relief on
behalf of the Company for, among other things, alleged breaches of fiduciary duty and contribution and indemnification. By order
dated November 4, 2016, the Frampton Action was stayed pending resolution of the SDNY Derivative Action.
On June 10, 2016, the Company was named as a nominal defendant, and certain of its former officers and directors, among
others, were named as defendants, in a shareholder derivative action filed in the Supreme Court of the State of New York, Kosky
v. Schorsch, et al., No. 653093/2016 (the “Kosky Action”). The Kosky Action seeks money damages and other relief on behalf of
the Company for, among other things, alleged breaches of fiduciary duty, negligence, and breach of contract. On October 6, 2016,
the parties filed a stipulation staying the Kosky Action until resolution of the SDNY Consolidated Securities Class Action.
On October 6, 2016, the Company was named as a nominal defendant, and certain of its former officers and directors, among
others, were named as defendants, in a shareholder derivative action filed in the United States District Court for the District of
Maryland, captioned Meloche v. Schorsch, et al., 16-cv-03366 (the “Meloche Action”). An amended complaint was filed on January
17, 2017. The Meloche Action seeks money damages and other relief on behalf of the Company for alleged breaches of fiduciary
duty and negligence. By order dated May 16, 2017, the Meloche Action was stayed until resolution of the SDNY Derivative Action.
There can be no assurance as to whether or how the completed settlements may affect any potential future resolution of any
other pending lawsuit or claims, the timing of any such resolution, or the amount at which any other matter may be resolved. The
Company has not reserved amounts for the SEC investigation, the on-going class action and the remaining opt out action discussed
above because it believes that any probable loss or reasonably possible range of loss is not reasonably estimable at this time. With
respect to the class action specifically, which represents substantially all of the remaining shares with alleged claims, although the
Company believes a loss is probable, it is currently unable to reasonably estimate a possible range of loss because the litigation
involves significant uncertainties, including, but not limited to, the complexity of the facts, the legal theories and the nature of the
claims, the information to be produced in discovery, which has not yet concluded, the applicable methodology for determining
any damages for each of the different types of claims, the extent to which members of the class would or would not file a claim,
and the uncertainty inherent in a class action where the trading history and other relevant characteristics of the claimants are not
currently known. The ultimate resolution of all of these matters, the timing and substance of which is unknown, may materially
impact the Company’s business, financial condition, liquidity and results of operations.
Cole Litigation Matter
In December 2013, Realistic Partners filed a putative class action lawsuit against the Company and the then-members of its
board of directors in the Supreme Court for the State of New York, captioned Realistic Partners v. American Realty Capital Partners,
et al., No. 654468/2013. The plaintiff alleged, among other things, that the board of the Company breached its fiduciary duties in
connection with the transactions contemplated under the Cole Merger Agreement (in connection with the merger between a wholly
owned subsidiary of Cole Credit Property Trust III, Inc. and Cole Holdings Corporation) and that Cole Credit Property Trust III,
Inc. aided and abetted those breaches. In January 2014, the parties entered into a memorandum of understanding regarding settlement
of all claims asserted on behalf of the alleged class of the Company’s stockholders. The proposed settlement terms required the
Company to make certain additional disclosures related to the Cole Merger, which were included in a Current Report on Form 8-
K filed by the Company with the SEC on January 17, 2014. The memorandum of understanding also contemplated that the parties
would enter into a stipulation of settlement, which would be subject to customary conditions, including confirmatory discovery
and court approval following notice to the Company’s stockholders, and provided that the defendants would not object to a payment
of up to $625,000 for attorneys’ fees. If the parties enter into a stipulation of settlement, which has not occurred, a hearing will be
scheduled at which the court will consider the fairness, reasonableness and adequacy of the settlement. There can be no assurance
that the parties will enter into a stipulation of settlement, that the court will approve any proposed settlement, or that any eventual
settlement will be under the same terms as those contemplated by the memorandum of understanding.
F-48
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Contractual Lease Obligations
The following table reflects the minimum base rent payments due from the Company over the next five years and thereafter
for certain ground lease obligations, which are substantially reimbursable by our tenants, and office lease obligations (in thousands):
2019
2020
2021
2022
2023
Thereafter
Total
Purchase Commitments
Future Minimum Base Rent Payments
Ground Leases
Office Leases
$
$
13,942
13,740
13,542
13,699
14,077
196,369
265,369
$
$
4,537
4,451
4,387
4,419
3,695
301
21,790
The Company enters into purchase and sale agreements and deposits funds into escrow towards the purchase of real estate
assets, some of which are expected to be assigned to one of the Cole REITs at or prior to the closing of the respective acquisition.
As of December 31, 2018, the Company was a party to five purchase and sale agreements with unaffiliated third-party sellers to
purchase a 100% interest in eight properties, subject to meeting certain criteria, for an aggregate purchase price of $81.7 million,
exclusive of closing costs. As of December 31, 2018, the Company had $1.1 million of property escrow deposits held by escrow
agents in connection with these future property acquisitions, which may be forfeited if the transactions are not completed under
certain circumstances. In accordance with the Services Agreement, the Company will be reimbursed by the assigned Cole REIT
for amounts escrowed when the property is assigned to the respective Cole REIT.
Environmental Matters
In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages
related to environmental matters. The Company has not been notified by any governmental authority of any non-compliance,
liability or other claim, and is not aware of any other environmental condition, in each case, that it believes will have a material
adverse effect on the results of operations.
Note 11 – Equity
Common Stock and General Partner OP Units
The General Partner is authorized to issue up to 1.5 billion shares of Common Stock. As of December 31, 2018, the General
Partner had approximately 967.5 million shares of Common Stock issued and outstanding.
Additionally, the Operating Partnership had approximately 967.5 million General Partner OP Units issued and outstanding as
of December 31, 2018, corresponding to the General Partner’s outstanding shares of Common Stock.
Common Stock Continuous Offering Program
On September 19, 2016, the Company registered a continuous equity offering program (the “Program”) pursuant to which
the Company can offer and sell, from time to time through September 19, 2019 in “at-the-market” offerings or certain other
transactions, shares of Common Stock with an aggregate gross sales price of up to $750.0 million, through its sales agents. As of
December 31, 2018, no shares of Common Stock have been issued pursuant to the Program.
Preferred Stock and Preferred OP Units
Series F Preferred Stock
As of December 31, 2018, there were approximately 42.8 million shares of Series F Preferred Stock (and approximately 42.8
million corresponding General Partner Series F Preferred Units) and 86,874 Limited Partner Series F Preferred Units issued and
outstanding.
The Series F Preferred Stock pays cumulative cash dividends at the rate of 6.70% per annum on their liquidation preference
of $25.00 per share (equivalent to $1.675 per share on an annual basis). The Series F Preferred Stock was not redeemable by the
F-49
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Company before January 3, 2019, the fifth anniversary of the date on which such Series F Preferred Stock was issued (the “Initial
Redemption Date”), except under circumstances intended to preserve the General Partner’s status as a REIT for federal and/or
state income tax purposes and except upon the occurrence of a change of control. On and after the Initial Redemption Date, the
General Partner may, at its option, redeem shares of the Series F Preferred Stock, in whole or from time to time in part, at a
redemption price of $25.00 per share plus, subject to exceptions, any accrued and unpaid dividends thereon to the date fixed for
redemption. The shares of Series F Preferred Stock have no stated maturity, are not subject to any sinking fund or mandatory
redemption and will remain outstanding indefinitely unless the General Partner redeems or otherwise repurchases them or they
become convertible and are converted into Common Stock (or, if applicable, alternative consideration). The Series F Preferred
Stock trades on the NYSE under the symbol VER PRF. The Series F Preferred Units contain the same terms as the Series F Preferred
Stock.
For federal income tax purposes, distributions to stockholders are characterized as ordinary dividends, capital gain
distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S stockholders’ basis (but not below zero) in
their shares. The following table shows the character of the Series F Preferred Stock distributions paid on a percentage basis for
the years ended December 31, 2018, 2017 and 2016:
Ordinary dividends
Capital gain distributions
Total
Limited Partner OP Units
Year Ended December 31,
2018
2017
2016
100.0%
—%
100%
95.0%
5.0%
100%
95.0%
5.0%
100%
As of December 31, 2018 the Operating Partnership had approximately 23.7 million Limited Partner OP Units outstanding.
As of December 31, 2018, the Company has received redemption requests totaling approximately 13.1 million Limited Partner
OP Units from certain affiliates of the Former Manager, which would have been redeemable for a corresponding number of shares
of Common Stock. The Company believes it has potential claims against recipients of those OP Units and has engaged in discussions
with affiliates of the Former Manager regarding the redemption requests. Pending any resolution, the Company does not currently
intend to satisfy any of the redemption requests. In light of the potential claims, since October 15, 2015, the OP has not paid
distributions in respect of a substantial portion of the outstanding Limited Partner OP Units when the Common Stock dividends
were otherwise paid.
Common Stock Dividends
The Company declared quarterly dividends to stockholders of record each quarter from the first quarter of the year ended
December 31, 2016 through the third quarter of the year ended December 31, 2018 of $0.1375 per share of Common Stock
(representing an annualized dividend rate of $0.55 per share). The Company’s Board of Directors declared a quarterly cash dividend
of $0.1375 per share of Common Stock (equaling an annualized dividend rate of $0.55 per share) for the fourth quarter of 2018
on November 5, 2018 to stockholders of record as of December 31, 2018, which was paid on January 15, 2019. An equivalent
distribution by the Operating Partnership is applicable per OP unit.
For federal income tax purposes, distributions to stockholders are characterized as ordinary dividends, capital gain
distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S stockholders’ basis (but not below zero) in
their shares. The following table shows the character of the Common Stock distributions paid on a percentage basis for the years
ended December 31, 2018, 2017 and 2016:
Ordinary dividends
Nondividend distributions
Capital gain distributions
Total
Year Ended December 31,
2018
2017
2016
13.8%
86.2%
—%
100%
60.0%
37.0%
3.0%
100%
95.0%
—%
5.0%
100%
F-50
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Share Repurchase Program
On May 12, 2017, the Company’s Board of Directors authorized the repurchase of up to $200.0 million of the Company’s
outstanding Common Stock over the subsequent 12 months, as market conditions warranted (the “2017 Share Repurchase
Program”). On May 3, 2018, the Company’s Board of Directors terminated the 2017 Share Repurchase Program and authorized
a new program (the “2018 Share Repurchase Program,” collectively with the 2017 Share Repurchase Program, the “Share
Repurchase Programs”) that permits the Company to repurchase up to $200.0 million of its outstanding Common Stock through
May 3, 2019, as market conditions warrant. Repurchases can be made through open market purchases, privately negotiated
transactions, structured or derivative transactions, including accelerated stock repurchase transactions, or other methods of acquiring
shares in accordance with applicable securities laws and other legal requirements. The Share Repurchase Programs do not obligate
the Company to make any repurchases at a specific time or in a specific situation. Repurchases are subject to prevailing market
conditions, the trading price of the stock, the Company’s financial performance and other conditions. Shares of Common Stock
repurchased by the Company under the Share Repurchase Programs, if any, will be returned to the status of authorized but unissued
shares of Common Stock.
During the period from May 12, 2017 through December 31, 2017, the Company repurchased approximately 69,000 shares
of Common Stock in multiple open market transactions, at a weighted average share price of $7.50 for an aggregate purchase price
of $0.5 million as part of the 2017 Share Repurchase Program. During the period from January 1, 2018 through May 2, 2018, the
Company repurchased approximately 6.4 million shares of Common Stock in multiple open market transactions, at a weighted
average share price of $6.94 for an aggregate purchase price of $44.6 million, for a total of $45.1 million of shares repurchased
as part of the 2017 Share Repurchase Program.
From May 3, 2018 through December 31, 2018, the Company repurchased approximately 0.8 million shares of Common
Stock in multiple open market transactions, at a weighted average share price of $6.95 for an aggregate purchase price of $5.6
million as part of the 2018 Share Repurchase Program, which are currently deemed to be authorized but unissued shares of Common
Stock. As of December 31, 2018, the Company had $194.4 million available for share repurchases under the 2018 Share Repurchase
Program.
Common Stock Repurchases to Settle Tax Obligations
Under the General Partner’s Equity Plan (as defined in Note 12 – Equity-based Compensation), participants have the option
to have the General Partner repurchase shares vesting from awards made under the Equity Plan in order to satisfy the minimum
federal and state tax withholding obligations. During the year ended December 31, 2018, the General Partner repurchased
approximately 0.3 million shares to satisfy the federal and state tax withholding obligations on behalf of employees that made this
election.
Note 12 – Equity-based Compensation
Equity Plans
The General Partner has an equity-based incentive award plan (the “Equity Plan”), which provides for the grant of stock
options (“Stock Options”), stock appreciation rights, Restricted Shares, Restricted Stock Units, Deferred Stock Units, dividend
equivalent rights and other stock-based awards to non-executive directors, officers, other employees and advisors or consultants
who provide services to the Company, as applicable, and a non-executive director restricted share plan, which are accounted for
under U.S. GAAP for share-based payments. The expense for such awards is recognized over the requisite service period. Restricted
Shares provide for rights identical to those of Common Stock. Restricted Stock Units do not provide for any rights of a common
stockholder prior to the vesting of such Restricted Stock Units. Restricted Shares are considered issued and outstanding. As is the
case when fully vested shares of Common Stock are issued from the Equity Plan, for each Restricted Share awarded under the
Equity Plan, the Operating Partnership issues a General Partner OP Unit to the General Partner with identical terms. Upon vesting
or settlement of Restricted Stock Units or Deferred Stock Units, respectively, the Operating Partnership issues a General Partner
OP Unit to the General Partner for each share of Common Stock issued as a result of such vesting.
F-51
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The General Partner has authorized and reserved a total number of shares equal to 10.0% of the total number of issued and
outstanding shares of Common Stock (on a fully diluted basis assuming the redemption of all OP Units for shares of Common
Stock) to be issued at any time under the Equity Plan for equity incentive awards. As of December 31, 2018, the General Partner
had cumulatively awarded under its Equity Plan approximately 4.0 million Restricted Shares, net of the forfeiture of 3.7 million
Restricted Shares through that date, 5.3 million Restricted Stock Units, net of the forfeiture/cancellation of 1.8 million Restricted
Stock Units through that date, 0.5 million Deferred Stock Units, and 2.8 million Stock Options, net of forfeiture/cancellation of
approximately 40,000 Stock Options through that date, collectively representing approximately 12.5 million shares of Common
Stock. Accordingly, as of such date, approximately 86.6 million additional shares were available for future issuance.
At December 31, 2018, a total of 45,000 shares were awarded under the non-executive director restricted share plan out of the
99,000 shares reserved for issuance.
Restricted Shares
The Company has issued Restricted Shares to certain employees and non-executive directors beginning in 2011. In addition,
the Company issued Restricted Shares to employees of affiliates of the Former Manager prior to 2015. The fair value of the
Restricted Shares granted to employees under the Equity Plan is generally determined using the closing stock price on the grant
date and is expensed over the requisite service period on a straight-line basis. The fair value of Restricted Shares granted to non-
executive directors and employees of affiliates of the Former Manager under the Equity Plan was measured based upon the fair
value of goods or services received or the equity instruments granted, whichever was more reliably determinable, and was expensed
in full at the date of grant.
During the years ended December 31, 2018, 2017 and 2016, the Company recorded $0.6 million, $2.0 million and $2.7 million,
respectively, of compensation expense related to the Restricted Shares. As of December 31, 2018, there was $0.1 million of
unrecognized compensation expense related to the Restricted Shares with a weighted-average remaining term of 0.1 years.
The following table details the activity of the Restricted Shares during the year ended December 31, 2018:
Unvested shares, December 31, 2017
Vested
Forfeited
Unvested shares, December 31, 2018
Time-Based Restricted Stock Units
Restricted Shares
Weighted-Average Grant
Date Fair Value
234,428
(159,210)
(4,218)
71,000
$
$
13.98
13.97
13.66
14.04
Under the Equity Plan, the Company may award Restricted Stock Units to employees that will vest if the recipient maintains
employment over the requisite service period (the “Time-Based Restricted Stock Units”). The fair value of the Time-Based
Restricted Stock Units granted to employees under the Equity Plan is generally determined using the closing stock price on the
grant date and is expensed over the requisite service period on a straight-line basis, which is generally three years. During the
years ended December 31, 2018, 2017 and 2016, the Company recorded $5.1 million, $6.3 million and $3.4 million, respectively,
of compensation expense related to the Time-Based Restricted Stock Units. As of December 31, 2018, there was $5.6 million of
unrecognized compensation expense related to the Time-Based Restricted Stock Units with a weighted-average remaining term
of 1.8 years.
Deferred Stock Units
The Company may award Deferred Stock Units to non-executive directors under the Equity Plan. Each Deferred Stock Unit
represents the right to receive one share of Common Stock. The Deferred Stock Units provide for immediate vesting on the grant
date and will be settled with Common Stock either on the earlier of the date on which the respective director separates from the
Company, dies or the third anniversary of the grant date, or if granted pursuant to the director’s voluntary election to participate
in the director’s deferred compensation program, on the date the director separates from the Company (or upon a change of control
or death). The fair value of the Deferred Stock Units is determined using the closing stock price on the grant date and is expensed
over the requisite service period or on the grant date for awards with no requisite service period. During the years ended December
31, 2018, 2017 and 2016, the Company recorded approximately $1.2 million, $1.0 million and $0.8 million, respectively, of expense
related to Deferred Stock Units. As of December 31, 2018, there is no unrecognized compensation expense related to the Deferred
Stock Units.
F-52
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The following table details the activity of the Time-Based Restricted Stock Units and Deferred Stock Units during the year
ended December 31, 2018.
Unvested units, December 31, 2017
Granted
Vested
Forfeited
Unvested units, December 31, 2018
Long-Term Incentive Awards
Time-Based Restricted
Stock Units
1,312,865
770,014
(755,810)
(36,054)
1,291,015
Weighted-Average
Grant Date Fair Value
8.61
$
6.76
8.66
7.44
7.51
$
Deferred Stock
Units
Weighted-Average
Grant Date Fair Value
—
6.95
6.95
—
—
— $
181,873
(181,873)
—
— $
The General Partner may award long-term incentive-based Restricted Stock Units (the “LTI Target Awards”) to employees
under the Equity Plan. Vesting of the LTI Target Awards is based upon the General Partner’s level of achievement of total stockholder
return (“TSR”), including both share price appreciation and Common Stock dividends, as measured equally against a market index
and against a peer group generally over a three year period.
The fair value and derived service period of the LTI Target Awards as of their grant date is determined using a Monte Carlo
simulation which takes into account multiple input variables that determine the probability of satisfying the required TSR, as
outlined in the award agreements. This method requires the input of assumptions, including the future dividend yield, the expected
volatility of the Common Stock and the expected volatility of the market index constituents and the peer group. Compensation
expense is recognized on a straight-line basis over the requisite service period regardless of whether the necessary TSR is attained,
provided that the requisite service condition has been achieved. During the years ended December 31, 2018, 2017 and 2016, the
Company recorded $5.8 million, $7.4 million and $4.6 million, respectively, of expense related to the LTI Target Awards. As
of December 31, 2018, there was $6.1 million of unrecognized compensation expense related to the LTI Target Awards with a
weighted-average remaining term of 1.7 years.
The following table details the activity of the LTI Target Awards during the year ended December 31, 2018.
Unvested units, December 31, 2017
Granted
Vested
Forfeited
Unvested units, December 31, 2018
Stock Options
LTI Target Awards
1,574,229
894,441
(327,693)
(524,014)
1,616,963
Weighted-Average
Grant Date Fair Value
7.98
$
6.44
7.14
7.14
7.57
$
The General Partner may award Stock Options to employees that will vest if the recipient maintains constant employment
through the end of the requisite service period.
The fair value of the Stock Options as of their grant date is determined using the Black-Scholes option pricing model, which
requires the input of assumptions including expected terms, expected volatility, dividend yield and risk free rate. Expected term
was calculated using the midpoint between the three year cliff vesting period and the 10-year contractual term. Expected volatilities
were based on both historical and implied volatilities. The risk-free interest rate was based on zero-coupon yields derived from
the U.S. Treasury Constant Maturity yield curve in effect as of the grant date.
F-53
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The following inputs and assumptions were used to calculate the weighted-average fair values of the options granted:
Expected term (in years)
Volatility
Dividend yield
Risk-free rate
Grant date fair value
Year Ended
December 31, 2018
6.5
27.39%
7.21%
2.75%
0.76
$
Compensation expense is recognized on a straight-line basis over the service period above. During the year ended December
31, 2018, the Company recorded $0.6 million of expense related to Stock Options. As of December 31, 2018, there was $1.5
million of unrecognized compensation expense related to Stock Options with a weighted-average remaining term of 2.1 years.
The following table details the activity of the Stock Options during the year ended December 31, 2018.
Outstanding, December 31, 2017
Granted
Forfeited
Outstanding, December 31, 2018
Stock Options
Weighted-Average
Exercise Price
— $
2,802,639
(39,474)
2,763,165
$
—
6.84
6.84
6.84
Weighted-Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic Value
— $
—
—
9.14
$
—
—
—
856,581
Note 13 – Related Party Transactions and Arrangements
Cole Capital
Through February 1, 2018, the Company was contractually responsible for managing the Cole REITs’ affairs on a day-to-day
basis, identifying and making acquisitions and investments on the Cole REITs’ behalf, and recommending to the respective Board
of Directors of each of the Cole REITs an approach for providing investors with liquidity. In addition, the Company was responsible
for raising capital for certain Cole REITs, advised them regarding offerings, managed relationships with participating broker-
dealers and financial advisors, and provided assistance in connection with compliance matters relating to the offerings. The
Company received compensation and reimbursement for services relating to the Cole REITs’ offerings and the investment,
management and disposition of their respective assets, as applicable. As discussed in Note 4 —Discontinued Operations, on
February 1, 2018, the Company completed the sale of Cole Capital. The assets and liabilities transferred pursuant to the Cole
Capital Purchase and Sale Agreement and related financial results are reflected in the consolidated balance sheets and consolidated
statements of operations as discontinued operations for all periods presented. As a result of the sale of Cole Capital, the Cole REITs
are no longer affiliated with the Company.
F-54
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The table below reflects the revenue earned from the Cole REITs (including closed programs, as applicable) and unconsolidated
joint ventures for the years ended December 31, 2018, 2017 and 2016 (in thousands).
Offering-related fees and reimbursements
Selling commissions (2)
Dealer manager and distribution fees (3)
Reimbursement revenue
Offering-related fees and reimbursements
Transaction service fees and reimbursements
Acquisition fees
Financing coordination fee
Reimbursement revenues
Transaction service fees and reimbursements
Management fees and reimbursements
Asset and property management fees and leasing fees (4)
Advisory and performance fee revenue
Reimbursement revenues
Management fees and reimbursements
Interest income on Affiliate Lines of Credit
Total related party revenues
___________________________________
Year Ended December 31,
2018 (1)
2017
2016
$
407
431
189
1,027
119
—
215
334
161
5,023
1,429
6,613
28
$
7,746
$
5,021
3,329
16,096
11,049
100
2,780
13,929
220
57,765
18,449
76,434
262
19,943
8,300
8,283
36,526
9,513
220
2,800
12,533
220
51,099
17,587
68,906
453
$
8,002
$
106,721
$
118,418
(1) Represents the revenue earned during the period from January 1, 2018 through January 31, 2018, unless otherwise noted.
(2) The Company reallowed 100% of selling commissions to participating broker-dealers from January 1, 2018 through January 31, 2018 and during the years
ended December 31, 2017 and 2016.
(3) During the years ended December 31, 2018, 2017 and 2016, the Company reallowed $0.2 million, $2.1 million and $3.2 million, respectively, of dealer
manager fees and/or distribution and stockholder servicing fees to participating broker-dealers as a marketing and due diligence expense reimbursement.
(4) Represents asset and property management fees and leasing fees related to properties owned through the Company’s unconsolidated joint ventures for the
years ended December 31, 2018, 2017 and 2016.
Investment in the Cole REITs
On February 1, 2018, the Company sold certain of its equity investments, recognizing a gain of $0.6 million, which is included
in other income, net in the accompanying consolidated statement of operations for the year ended December 31, 2018, to the Cole
Purchaser, retaining interests in CCIT II, CCIT III and CCPT V. As of December 31, 2018 and 2017, the Company owned aggregate
equity investments of $7.8 million and $3.3 million, respectively, in the Cole REITs. During the year ended December 31, 2018,
the Company recognized a gain of $5.1 million related to the change in fair value from the carrying value at December 31, 2017,
which is included in other income, net in the accompanying consolidated statement of operations. Prior to the sale of Cole Capital,
the Company accounted for these investments using the equity method of accounting, which required the investment to be initially
recorded at cost and subsequently adjusted for the Company’s share of equity in the respective Cole REIT’s earnings and
distributions. The Company recorded its proportionate share of net income or loss from the Cole REITs in equity in income and
gain on disposition of unconsolidated entities in the consolidated statement of operations for the years ended December 31, 2017
and 2016. During the years ended December 31, 2017 and 2016, the Company recognized a net loss of $0.5 million and $1.3
million from the Cole REITs, respectively.
Due to Cole REITs
As of December 31, 2017, due to affiliates was $0.1 million, related to amounts due to the Cole REITs, which is included in
due to affiliates in the accompanying consolidated balance sheet.
F-55
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Due from Cole REITs
As of December 31, 2017, $4.4 million was expected to be collected from affiliates, excluding any outstanding balances from
a line of credit with one of the Cole REITs, discussed below, related to services provided by the Company and expenses subject
to reimbursement by the Cole REITs in accordance with their respective advisory and property management agreements.
On September 23, 2016, the Company entered into a $30.0 million revolving line of credit with Cole Corporate Income
Operating Partnership III, LP, the operating partnership of CCIT III, as modified on March 28, 2017 (the “Subordinate Promissory
Note”). The Subordinate Promissory Note matured September 30, 2018 and no amounts were outstanding as of December 31,
2018. As of December 31, 2017, $1.6 million was outstanding, which is included in due from affiliates, net in the accompanying
consolidated balance sheet.
Note 14 – Net Income (Loss) Per Share/Unit
The General Partner’s unvested Restricted Shares contain non-forfeitable rights to dividends and are considered to be
participating securities in accordance with U.S. GAAP and, therefore, are included in the computation of earnings per share under
the two-class computation method. Under the two-class computation method, net losses are not allocated to participating securities
unless the holder of the security has a contractual obligation to share in the losses. The unvested Restricted Shares are not allocated
losses as the awards do not have a contractual obligation to share in losses of the General Partner. The two-class computation
method is an earnings allocation formula that determines earnings per share for each class of shares of Common Stock and
participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings.
Net (Loss) Income Per Share
The following is a summary of the basic and diluted net (loss) income per share computation for the General Partner for the
years ended December 31, 2018, 2017 and 2016 (dollar amounts in thousands):
(Loss) income from continuing operations
Noncontrolling interests’ share in continuing operations
Net (loss) income from continuing operations attributable to the General
Partner
Dividends to preferred shares and units
Net loss from continuing operations available to the General Partner
Earnings allocated to participating securities
Income (loss) from discontinued operations, net of income taxes
(Income) loss from discontinued operations attributable to limited partners
Net loss available to common stockholders used in basic and diluted
net loss per share
Year Ended December 31,
2018
2017
2016
$
(91,725) $
2,344
$
51,495
(1,005)
(76,887)
1,908
(89,381)
(71,892)
(161,273)
(42)
3,695
(88)
50,490
(71,892)
(21,402)
(491)
(19,117)
445
(74,979)
(71,892)
(146,871)
(492)
(123,937)
3,053
$
(157,708) $
(40,565) $
(268,247)
Weighted average number of Common Stock outstanding - basic and
diluted
969,092,268
974,098,652
931,422,844
Basic and diluted net loss per share from continuing operations attributable
to common stockholders
Basic and diluted net income (loss) per share from discontinued operations
attributable to common stockholders
Basic and diluted net loss per share attributable to common stockholders (1)
_______________________________________________
$
$
$
(1) Amounts may not total due to rounding.
(0.17) $
(0.02) $
(0.16)
0.00
$
(0.16) $
(0.02) $
(0.04) $
(0.13)
(0.29)
F-56
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
The following were excluded from diluted net loss per share attributable to common stockholders, as the effect would have
been antidilutive:
Weighted average unvested Restricted Shares and Restricted Stock Units (1)
Weighted average Stock Options (2)
OP Units
___________________________________
Year Ended December 31,
2018
420,369
—
23,725,506
2017
310,965
—
23,748,347
2016
868,252
—
23,763,797
(1) Net of assumed repurchases in accordance with the treasury stock method of 2.0 million for the year ended year ended December 31, 2018 and 1.6 million
for each of the years ended December 31, 2017 and 2016.
(2) Net of assumed repurchases in accordance with the treasury stock method of 2.4 million for the year ended December 31, 2018.
Net (Loss) Income Per Unit
The following is a summary of the basic and diluted net (loss) income per unit attributable to common unitholders, which
includes all common General Partner unitholders and limited partner unitholders, for the years ended December 31, 2018, 2017
and 2016 (dollar amounts in thousands):
(Loss) income from continuing operations
Noncontrolling interests’ share in continuing operations
Net (loss) income from continuing operations attributable to the Operating
Partnership
Dividends to preferred units
Net loss from continuing operations available to the Operating Partnership
Earnings allocated to participating units
Income (loss) from discontinued operations, net of income taxes
Net loss available to common unitholders used in basic and diluted net
loss per unit
$
$
Year Ended December 31,
2018
2017
2016
(91,725) $
154
51,495
$
194
(76,887)
14
(91,571) $
(71,892)
(163,463)
(42)
3,695
$
51,689
(71,892)
(20,203)
(491)
(19,117)
(76,873)
(71,892)
(148,765)
(492)
(123,937)
$
(159,810) $
(39,811) $
(273,194)
Weighted average number of common units outstanding - basic
992,817,774
997,846,999
955,181,238
Basic and diluted net loss per unit from continuing operations attributable
to common unitholders
Basic and diluted net income (loss) per unit from discontinued operations
attributable to common unitholders
Basic and diluted net loss per unit attributable to common unitholders (1)
_______________________________________________
$
$
$
(1) Amounts may not total due to rounding.
(0.17) $
(0.02) $
(0.16)
0.00
$
(0.16) $
(0.02) $
(0.04) $
(0.13)
(0.29)
The following were excluded from diluted net loss per unit attributable to common unitholders, as the effect would have been
antidilutive:
Weighted average unvested Restricted Shares and Restricted Stock Units (1)
Weighted average Stock Options (2)
___________________________________
Year Ended December 31,
2018
2017
2016
420,369
—
310,965
—
868,252
—
(1) Net of assumed repurchases in accordance with the treasury stock method of 2.0 million for the year ended year ended December 31, 2018 and 1.6 million
for each of the years ended December 31, 2017 and 2016.
(2) Net of assumed repurchases in accordance with the treasury stock method of 2.4 million shares for the year ended December 31, 2018.
F-57
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Note 15 – Quarterly Results (Unaudited)
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2018 for the
General Partner (in thousands, except share and per share amounts):
Rental revenue (1)
Net income (loss) from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net income (loss)
Net income (loss) attributable to the General Partner
Basic and diluted net income (loss) per share from continuing
operations attributable to common stockholders (2)
Basic and diluted net income (loss) per share from discontinued
operations attributable to common stockholders (2)
Basic and dilutive net income (loss) per share attributable to
common stockholders (2)
_______________________________________________
March 31,
2018
$ 315,074
29,036
3,501
32,537
31,795
Quarters Ended
June 30,
2018
September 30,
2018
December 31,
2018
$
$ 315,664
(74,691)
224
(74,467)
(72,670)
313,866
(73,942)
—
(73,942)
(72,117)
$
313,263
27,872
(30)
27,842
27,218
$
$
$
0.01 (3) $
(0.09) $
(0.09) $
0.01 (3)
0.00 (3) $
0.00
$
— $
(0.00)
0.01 (3) $
(0.09) $
(0.09) $
0.01 (3)
(1) Represents revenue from continuing operations as presented on the statement of operations in accordance with U.S. GAAP. Substantially all of Cole Capital
is presented as discontinued operations and the Company’s remaining financial results are reported as a single segment for all periods presented.
(2) The sum of the quarterly net income (loss) per share amounts may not agree to the full year net loss per share amounts. The Company calculates net income
(loss) per share based on the weighted-average number of outstanding shares of Common Stock during the reporting period. The average number of shares
fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.
(3) Represents dilutive net income per share attributable to common stockholders.
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2018 for the
OP (in thousands, except share and per share amounts):
Rental revenue (1)
Net income (loss) from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net income (loss)
Net income (loss) attributable to the OP
Basic and diluted net income (loss) per unit from continuing
operations attributable to common unitholders (2)
Basic and diluted net income (loss) per unit from discontinued
operations attributable to common unitholders (2)
Basic and dilutive net income (loss) per unit attributable to
common unitholders (2)
_______________________________________________
March 31,
2018
315,074
29,036
3,501
32,537
32,577
0.01
0.00
0.01
$
$
$
$
$
$
$
$
Quarters Ended
June 30,
2018
315,664
(74,691)
224
(74,467)
(74,451)
$
September 30,
2018
313,866
(73,942)
—
(73,942)
(73,885)
$
December 31,
2018
313,263
27,872
(30)
27,842
27,883
(0.09) $
(0.09) $
0.01
0.00
$
— $
(0.00)
(0.09) $
(0.09) $
0.01
(1) Represents revenue from continuing operations as presented on the statement of operations in accordance with U.S. GAAP. Substantially all of Cole Capital
is presented as discontinued operations and the Company’s remaining financial results are reported as a single segment for all periods presented.
(2) The sum of the quarterly net income (loss) per unit amounts may not agree to the full year loss income per unit amounts. The Company calculates net income
(loss) per unit based on the weighted-average number of outstanding units during the reporting period. The average number of units fluctuates throughout
the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.
F-58
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2017 for the
General Partner (in thousands, except share and per share amounts):
Rental revenue (1)
Net income (loss) from continuing operations
Income (loss) from discontinued operations, net of income
taxes
Net income (loss)
Net income (loss) attributable to the General Partner
Basic and diluted net (loss) income per share from continuing
operations attributable to common stockholders (2)
Basic and diluted net income (loss) per share from discontinued
operations attributable to common stockholders (2)
Basic and dilutive net (loss) income per share attributable to
common stockholders (2) (4)
$
$
$
_______________________________________________
Quarters Ended
March 31,
2017
320,898
$
June 30,
2017
308,245
$
September 30,
2017
306,543
$
11,935
29,550
2,855
14,790
14,438
4,636
34,186
33,408
12,489
4,005
16,494
16,094
December 31,
2017
316,599
(2,479)
$
(30,613)
(33,092)
(32,122)
(0.01) $
0.01 (3) $
(0.01) $
(0.02)
0.00
$
0.01 (3) $
0.00
$
(0.03)
(0.00) $
0.02 (3) $
(0.00) $
(0.05)
(1) Represents revenue from continuing operations as presented on the statement of operations in accordance with U.S. GAAP. Substantially all of Cole Capital
is presented as discontinued operations and the Company’s remaining financial results are reported as a single segment for all periods presented.
(2) The sum of the quarterly net income (loss) per share amounts may not agree to the full year loss per share amounts. The Company calculates net income
(loss) per share based on the weighted-average number of outstanding shares of Common Stock during the reporting period. The average number of shares
fluctuates throughout the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.
(3) Represents dilutive net income per share attributable to common stockholders.
(4) Amounts may not total due to rounding.
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2017 for the
OP (in thousands, except share and per share amounts):
Rental revenue (1)
Net income (loss) from continuing operations
Income (loss) from discontinued operations, net of income taxes
Net income (loss)
Net income (loss) attributable to the OP
Basic and diluted net (loss) income per unit from continuing
operations attributable to common unitholders (2)
Basic and diluted net income (loss) per unit from discontinued
operations attributable to common unitholders (2)
Basic and dilutive net (loss) income per unit attributable to
common unitholders (2) (3)
_______________________________________________
$
$
$
$
Quarters Ended
March 31,
2017
320,898
11,935
2,855
14,790
14,797
$
June 30,
2017
308,245
29,550
4,636
34,186
34,200
$
September 30,
2017
306,543
12,489
4,005
16,494
16,485
$
December 31,
2017
316,599
(2,479)
(30,613)
(33,092)
(32,910)
(0.01) $
0.00
$
0.01
0.01
(0.00) $
0.02
$
$
$
(0.01) $
(0.02)
0.00
$
(0.03)
(0.00) $
(0.05)
(1) Represents revenue from continuing operations as presented on the statement of operations in accordance with U.S. GAAP. Substantially all of Cole Capital
is presented as discontinued operations and the Company’s remaining financial results are reported as a single segment for all periods presented.
(2) The sum of the quarterly net income (loss) per unit amounts may not agree to the full year net loss per unit amounts. The Company calculates net income
(loss) per unit based on the weighted-average number of outstanding units during the reporting period. The average number of units fluctuates throughout
the year and can therefore produce a full year result that does not agree to the sum of the individual quarters.
(3) Amounts may not total due to rounding.
F-59
VEREIT, INC. and VEREIT OPERATING PARTNERSHIP, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2018 – (Continued)
Note 16 – Subsequent Events
The following events occurred subsequent to December 31, 2018:
Insurance Settlement
On January 23, 2019, the Company signed a settlement and release agreement (the “Insurance Settlement and Release
Agreement”) with certain insurance carriers and subsequently received $48.4 million of insurance recoveries. The Company did
not record these insurance recoveries as a receivable prior to the finalization of the Insurance Settlement and Release Agreement
in the accompanying consolidated balance sheets for the years ended December 31, 2018 and 2017, because it was not probable
that the Company would receive these insurance recoveries as of December 31, 2018 and 2017.
Real Estate Investment Activity
From January 1, 2019 through February 8, 2019 the Company disposed of eight properties for an aggregate gross sales price
of $9.2 million, of which four were held for sale with an aggregate carrying value of $1.9 million as of December 31, 2018. The
Company’s share of the aggregate sales price was $8.6 million with an estimated gain of $2.5 million. In addition, the Company
acquired three properties for an aggregate purchase price of $36.8 million, excluding capitalized external acquisition-related
expenses.
Debt Activity
On February 6, 2019, the Company’s 2019 Senior Notes matured and the principal outstanding of $750.0 million, plus accrued
and unpaid interest thereon, was repaid, utilizing borrowings under its Credit Facility.
On January 24, 2019, the Company entered into interest rate swap agreements with an aggregate $900.0 million notional
amount, effective on February 6, 2019 and maturing on January 31, 2023. Based on the General Partner’s then credit rating and
interest rate of LIBOR + 1.35%, the swap agreements effectively fixed the Credit Facility Term Loan interest rate at approximately
3.84%.
Mortgage Notes Receivable, Net
On January 15, 2019, the Company sold four mortgage notes receivable for $8.3 million.
Common Stock Dividend
On February 20, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.1375 per share of Common
Stock (equaling an annualized dividend rate of $0.55 per share) for the first quarter of 2019 to stockholders of record as of March 29,
2019, which will be paid on April 15, 2019. An equivalent distribution by the Operating Partnership is applicable per OP Unit.
Preferred Stock Dividend
On February 20, 2019, the Company’s Board of Directors declared a monthly cash dividend to holders of the Series F Preferred
Stock for April 2019 through June 2019 with respect to the periods included in the table below. The corresponding record and
payment dates for each month's Series F Preferred Stock dividend are also shown in the table below. The dividend for the Series
F Preferred Stock accrues daily on a 360-day annual basis equal to an annualized dividend rate of $1.675 per share, or $0.1395833
per 30-day month.
Period
March 15, 2019 - April 14, 2019
April 15, 2019 - May 14, 2019
May 15, 2019 - June 14, 2019
Record Date
April 1, 2019
May 1, 2019
June 1, 2019
Payment Date
April 15, 2019
May 15, 2019
June 17, 2019
F-60
VEREIT, INC. AND VEREIT OPERATING PARTNERSHIP, L.P.
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
December 31, 2018 (in thousands)
Schedule II – Valuation and Qualifying Accounts
Description
Year Ended December 31, 2018
Reserve for program development costs (1)
Allowance for doubtful accounts and other reserves
Unsecured note reserve
Total
Year Ended December 31, 2017
Reserve for program development costs (1)
Allowance for doubtful accounts and other reserves
Unsecured note reserve
Total
Year Ended December 31, 2016
Reserve for program development costs (1)
Allowance for doubtful accounts and other reserves
Unsecured note reserve
Total
_______________________________________________
(1) Classified as discontinued operations.
Balance at
Beginning of Year
Additions
Deductions
651 (2) $
(8,283)
(8,905)
(15,300)
$ (32,488)
Balance at
End of Year
$
$
—
6,309
—
6,309
$
$
$
$
$
$
7,632
12,683 (3)
15,300
35,615
31,652
7,576
15,300
54,528
34,798
6,595
15,300
56,693
$
$
$
2,531
—
3,182
9,328
6,956
—
$ 16,284
$ 26,191
2,318
—
$ 28,509
$ (33,348) (4) $
(1,849)
—
$ (35,197)
$
7,632
12,683 (3)
15,300
35,615
$ (29,337) (5) $
(1,337)
—
$ (30,674)
$
31,652
7,576
15,300
54,528
(2) Represents additions to the reserve during the period from January 1, 2018 through January 31, 2018, prior to the sale of Cole Capital.
(3)
Includes $1.0 million classified as discontinued operations.
(4) Deductions related to the return of the Company's interest in two funds not yet in offering ($1.3 million) and the closing of CCPT V's primary offering ($32.0
million).
(5) Deductions related to the closing of CCIT II’s primary offering.
F-61
VEREIT, INC. AND VEREIT OPERATING PARTNERSHIP, L.P.
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 2018 (in thousands)
Property
City
State
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
24 Hour Fitness
Woodlands
TX
$
— $ 2,690
$
7,463
$
126
$
10,279
$
(2,677)
9/24/2013
2002
7-Eleven
Sarasota
7-Eleven
La Feria
7-Eleven
Pharr
7-Eleven
Rio Hondo
7-Eleven
Gloucester
7-Eleven
Hampton
7-Eleven
Hampton
FL
TX
TX
TX
VA
VA
VA
AAA
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Oklahoma City OK
Oneonta
Oxford
Valley
El Dorado
Springdale
Auburndale
Pensacola
AL
AL
AL
AR
AR
FL
FL
Statesboro
GA
Indianapolis
Lafayette
Mansura
Minden
IN
IN
LA
LA
Battle Creek
MI
Benton Harbor MI
Redford
Kennett
Greenwood
Magnolia
Charlotte
MI
MO
MS
MS
NC
Bowling Green OH
Kent
OH
North Olmsted
OH
—
—
—
—
—
—
—
—
614
—
409
—
624
205
278
141
238
513
2,647
1,351
—
—
—
550
—
—
—
—
434
319
—
1,473
579
564
614
449
159
351
235
404
81
323
286
217
125
203
156
287
308
326
245
218
1,312
219
281
293
144
69
161
1,312
1,970
2,531
2,640
578
624
644
3,639
32,567
1,080
748
827
743
916
5,127
924
1,163
1,071
652
497
1,043
843
924
698
473
967
2,791
1,201
928
1,080
753
F-62
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,624
2,189
2,812
2,933
722
693
805
(410)
11/19/2012
2000
(602)
2/15/2013
2008
(773)
2/15/2013
1995
(807)
2/15/2013
2008
(179)
12/24/2012
1985
(193)
12/24/2012
1986
(200)
12/24/2012
1959
36,206
(8,038)
2/7/2014
2009
1,285
1,026
968
981
1,429
6,478
1,083
1,514
1,306
1,056
578
1,366
1,129
1,141
823
676
1,123
3,078
1,509
1,254
1,325
971
(294)
2/7/2014
2008
(189)
2/7/2014
1989
(213)
2/7/2014
2009
(212)
2/7/2014
2000
(258)
2/7/2014
2009
(1,373)
2/7/2014
2009
(237)
2/7/2014
1979
(307)
2/7/2014
2008
(270)
2/7/2014
1998
(203)
2/7/2014
1989
(146)
2/7/2014
2000
(320)
2/7/2014
2008
(222)
2/7/2014
1995
(246)
2/7/2014
1997
(209)
2/7/2014
1972
(136)
2/7/2014
1999
(266)
2/19/2014
2006
(687)
2/7/2014
2000
(299)
2/7/2014
1994
(262)
2/7/2014
2009
(311)
2/7/2014
1999
(224)
2/7/2014
1960
Property
City
State
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Aaron's
Abbott
Laboratories
Shawnee
OK
Bloomsburg
Meadville
Columbia
Marion
PA
PA
SC
SC
Chattanooga
TN
Copperas Cove
TX
Haltom City
Humble
Killeen
Kingsville
Livingston
Mexia
Mission
Odessa
Pasadena
Port Lavaca
Texas City
Richmond
Waukegan
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
VA
IL
AR
AL
Abuelo's
Rogers
Academy Sports
Mobile
Academy Sports
Montgomery
AL
Academy Sports
Fayetteville
Academy Sports
Dalton
AR
GA
Academy Sports
Bossier City
LA
Academy Sports
Johnson City
TN
Academy Sports
Smyrna
Academy Sports
Austin
Academy Sports
Fort Worth
Academy Sports
Killeen
Academy Sports
Laredo
TN
TX
TX
TX
TX
—
400
—
—
319
—
—
—
—
—
599
—
—
549
—
—
—
—
—
—
—
—
—
303
224
237
576
100
480
423
858
548
815
345
173
126
324
99
444
160
275
508
1,135
856
1,224
1,010
685
1,075
1,341
1,024
1,146
3,244
1,040
1,498
1,186
954
768
1,231
1,274
2,156
1,435
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,438
1,080
1,461
1,586
785
1,555
1,764
1,882
1,694
4,059
1,385
1,671
1,312
1,278
867
1,675
1,434
2,431
1,943
(311)
2/7/2014
2008
(219)
2/7/2014
1996
(326)
2/7/2014
1994
(259)
2/7/2014
1977
(177)
2/7/2014
2008
(252)
2/7/2014
1989
(347)
2/7/2014
2007
(291)
2/7/2014
2008
(304)
2/7/2014
2008
(840)
2/7/2014
1981
(270)
2/7/2014
2009
(388)
2/7/2014
2008
(309)
2/7/2014
2007
(246)
2/7/2014
2009
(206)
2/7/2014
2006
(325)
2/7/2014
2009
(333)
2/7/2014
2007
(556)
2/7/2014
2008
(422)
2/7/2014
1988
4,734
21,319
1,917
27,970
(5,703)
11/5/2013
1980
825
1,311
1,869
7,290
1,900
4,965
998
—
—
—
2,906
1,902
2,109
5,044
4,216
—
2,072
3,165
2,779
—
2,782
—
—
—
—
—
—
—
—
—
—
—
—
3,121
8,742
8,254
9,501
6,654
9,461
8,342
(697)
6/27/2013
2003
(1,818)
11/1/2013
2012
(1,802)
2/7/2014
2009
(2,862)
12/28/2012
2012
(2,107)
2/20/2013
2012
(1,702)
2/7/2014
2008
(399)
12/19/2016
2015
10,543
(2,064)
11/1/2013
2012
12,971
(1,935)
2/7/2014
1988
10,401
(1,863)
2/7/2014
2009
8,100
(1,266)
2/7/2014
2009
10,893
(1,884)
2/7/2014
2008
2,296
7,431
6,385
7,601
5,656
6,555
6,440
8,434
8,755
8,329
5,321
8,111
F-63
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Accomplishments
Through People
Columbus
GA
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Birmingham
Birmingham
Calera
Dothan
Enterprise
Opelika
Brooklyn
AL
AL
AL
AL
AL
AL
CT
—
—
—
—
—
—
—
—
170
455
330
723
326
280
289
324
Bonita Springs
FL
1,561
1,219
Lehigh Acres
FL
1,425
Albany
Cairo
Hazlehurst
Hinesville
Perry
GA
GA
GA
GA
GA
Thomasville
GA
Auburn
Bedford
Clinton
Fort Wayne
Fort Wayne
Franklin
Mishawaka
Richmond
IN
IN
IN
IN
IN
IN
IN
IN
Salina
KS
Barbourville
KY
Bardstown
KY
Brandenburg
KY
Crestwood
Florence
Frankfort
KY
KY
KY
Georgetown
KY
—
—
—
—
—
—
—
760
—
—
—
738
—
—
—
—
—
—
1,030
—
—
—
379
210
140
113
352
209
251
337
100
182
193
200
511
429
377
195
194
272
186
400
550
833
510
—
58
—
—
(7)
(6)
—
—
—
—
65
(24)
55
—
(1)
(30)
—
—
—
—
—
—
—
—
—
—
234
—
—
—
—
—
—
373
494
723
326
420
1,156
1,429
1,552
2,016
629
326
451
430
487
377
1,347
1,386
729
450
371
1,256
1,373
1,616
782
1,098
1,090
742
1,546
1,280
1,034
1,323
F-64
170
886
824
— 6/27/2013
1987
(115)
2/28/2013
1997
(151)
2/28/2013
1999
1,446
(224)
12/27/2012
2008
645
694
1,445
1,753
2,771
2,395
904
442
619
782
695
598
1,684
1,486
911
643
571
1,767
1,802
1,993
977
1,292
1,596
928
1,946
1,830
1,867
1,833
(100)
12/31/2012
1997
(129)
12/31/2012
1995
(348)
4/24/2013
2013
(242)
11/7/2014
2006
(432)
2/7/2014
2007
(513)
2/7/2014
2008
(196)
12/31/2012
1995
(97)
12/31/2012
1993
(140)
12/31/2012
1998
(133)
12/31/2012
1994
(151)
12/31/2012
1994
(112)
12/31/2012
1997
(446)
3/29/2012
2007
(346)
2/7/2014
2007
(216)
6/5/2013
2004
(137)
2/28/2013
1998
(113)
2/28/2013
1998
(305)
2/7/2014
2010
(342)
2/7/2014
2007
(396)
2/7/2014
2007
(235)
4/30/2013
2006
(330)
4/15/2013
2006
(342)
12/10/2012
2005
(230)
12/10/2012
2005
(374)
2/7/2014
2009
(328)
2/7/2014
2008
(254)
2/7/2014
2007
(315)
2/7/2014
2007
Property
City
State
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Hardinsburg
KY
Inez
Leitchfield
Louisville
KY
KY
KY
West Liberty
KY
Rayne
Brownstown
Caro
Charlotte
Flint
LA
MI
MI
MI
MI
Grand Rapids
MI
Howell
Livonia
Manistee
Monroe
Romulus
Sault Ste.
Marie
South Lyon
Tecumseh
Washington
Twnshp
Tupelo
Candler
Charlotte
Eden
MI
MI
MI
MI
MI
MI
MI
MI
MI
MS
NC
NC
NC
Granite Falls
NC
Rocky Mount
NC
Lakewood
Woodbury
Bethel
Canton
Dayton
Delaware
NJ
NJ
OH
OH
OH
OH
—
—
—
740
—
—
—
—
—
—
657
830
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
730
629
—
696
94
130
104
336
249
122
482
117
123
133
368
439
210
348
549
422
75
402
281
645
258
399
723
320
251
348
750
446
234
443
470
502
845
1,174
939
1,289
996
490
1,760
665
697
534
1,296
1,471
643
1,043
1,434
1,568
671
1,607
1,214
1,711
427
1,202
883
746
1,005
836
1,750
1,784
1,305
1,206
1,349
1,274
F-65
—
—
(5)
—
—
84
—
(9)
92
(3)
—
—
49
—
—
—
80
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
939
1,304
1,038
1,625
1,245
696
2,242
773
912
664
1,664
1,910
902
1,391
1,983
1,990
826
2,009
1,495
2,356
685
1,601
1,606
1,066
1,256
1,184
2,500
2,230
1,539
1,649
1,819
1,776
(262)
12/10/2012
2007
(375)
8/22/2012
2010
(289)
12/10/2012
2005
(312)
2/7/2014
2009
(300)
4/15/2013
2006
(150)
5/21/2013
2000
(430)
2/7/2014
2008
(225)
11/23/2011
2002
(238)
11/23/2011
2002
(181)
11/23/2011
2002
(307)
2/7/2014
2008
(356)
2/7/2014
2008
(219)
12/12/2011
2003
(314)
4/15/2013
2007
(353)
2/7/2014
2007
(394)
2/7/2014
2007
(240)
11/23/2011
2003
(390)
2/7/2014
2008
(290)
5/27/2014
2009
(421)
2/7/2014
2008
(136)
2/20/2014
1998
(299)
2/7/2014
2012
(226)
2/7/2014
2001
(219)
7/16/2013
2004
(321)
8/9/2012
2010
(244)
2/21/2014
2005
(559)
8/22/2012
2010
(578)
6/20/2012
2007
(325)
2/7/2014
2008
(315)
2/7/2014
2008
(344)
2/7/2014
2007
(322)
2/7/2014
2008
Initial Costs (1)
Encumbrances
at
December 31,
2018
State
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
City
Eaton
Franklin
Holland
Massillon
Salem
Springfield
Toledo
Twinsburg
Van Wert
Vermilion
Warren
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
—
—
638
—
660
—
610
610
—
—
—
—
Oklahoma City OK
Sapulpa
OK
704
Chambersburg
PA
Selinsgrove
Titusville
Chapin
Chesterfield
Greenwood
Rock Hill
Sweetwater
Alton
Deer Park
Houston
Houston
Houston
Houston
Houston
Houston
Humble
Huntsville
Kingwood
PA
PA
SC
SC
SC
SC
TN
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
—
—
—
—
—
—
—
—
—
—
800
800
—
—
—
—
—
—
—
157
218
131
218
267
461
116
486
33
337
83
208
362
553
99
207
395
131
210
506
360
169
295
343
248
837
285
225
189
420
327
419
471
873
1,453
1,987
1,147
1,075
1,375
1,004
630
1,079
745
1,178
1,300
830
891
1,172
922
745
630
915
839
958
1,507
1,029
991
685
1,405
1,293
1,666
1,404
1,278
1,392
F-66
—
—
—
—
—
—
—
—
—
—
(2)
—
—
—
—
—
—
—
—
44
—
(3)
—
—
—
—
—
—
—
—
—
—
628
1,091
1,584
2,205
1,414
1,536
1,491
1,490
663
1,416
826
1,386
1,662
1,383
990
1,379
1,317
876
840
1,465
1,199
1,124
1,802
1,372
1,239
1,522
1,690
1,518
1,855
1,824
1,605
1,811
(140)
6/13/2013
1987
(279)
8/9/2012
1984
(355)
2/7/2014
2008
(493)
2/7/2014
2007
(286)
2/7/2014
2009
(333)
12/31/2012
2005
(336)
2/7/2014
2009
(257)
2/7/2014
2009
(187)
6/13/2013
1995
(287)
2/7/2014
2006
(244)
4/12/2012
2003
(377)
8/9/2012
2007
(308)
2/7/2014
2007
(253)
2/28/2013
1997
(264)
6/3/2013
2003
(364)
12/12/2012
2010
(299)
6/20/2012
2007
(241)
6/27/2012
2008
(209)
3/9/2012
1995
(229)
2/7/2014
1995
(262)
11/29/2012
2006
(301)
10/18/2012
2006
(361)
2/7/2014
2008
(355)
9/30/2011
2006
(342)
9/30/2011
2006
(219)
8/21/2012
2007
(338)
2/7/2014
2006
(310)
2/7/2014
2008
(397)
2/7/2014
2008
(338)
2/7/2014
2007
(308)
2/7/2014
2008
(336)
2/7/2014
2009
Property
City
State
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Advance Auto
Parts
Aetna Life
Insurance
AGCO
Albertson's
Lubbock
Pasadena
Spring
Webster
Appleton
TX
TX
TX
TX
WI
Fort Atkinson
WI
Janesville
Kenosha
Milwaukee
WI
WI
WI
St. Mary's
WV
Fresno
Duluth
Lake Havasu
City
Albertson's
Mesa
Albertson's
Phoenix
Albertson's
Scottsdale
Albertson's
Tucson
Albertson's
Tucson
Albertson's
Yuma
Albertson's
Denver
Albertson's
Fort Collins
Albertson's
Alexandria
Albertson's
Baton Rouge
LA
Albertson's
Baton Rouge
LA
Albertson's
Bossier City
Albertson's
Lafayette
LA
LA
Albertson's
Albuquerque
NM
Albertson's
Farmington
NM
Albertson's
Las Cruces
Albertson's
Los Lunas
NM
NM
CA
GA
AZ
AZ
AZ
AZ
AZ
AZ
AZ
CO
CO
LA
—
—
—
—
—
—
939
—
—
—
—
265
382
388
385
498
353
299
569
610
309
1,259
1,146
1,616
1,452
1,228
824
1,695
465
1,473
928
—
—
—
—
—
—
—
—
—
—
1,524
1,528
2,004
1,837
1,726
1,177
1,994
1,034
2,083
1,237
(306)
2/7/2014
2008
(369)
7/6/2012
2008
(365)
2/7/2014
2007
(348)
2/7/2014
2008
(313)
2/7/2014
2007
(240)
8/26/2013
2004
(420)
2/7/2014
2007
(141)
3/13/2013
2004
(364)
2/7/2014
2008
(288)
12/28/2012
2007
3,405
22,343
2,917
28,665
(2,453)
11/5/2013
1969
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18,345
(3,112)
2/7/2014
1999
6,671
6,089
7,084
(1,546)
2/7/2014
2003
(1,145)
2/7/2014
1997
(1,268)
2/7/2014
1998
10,815
(2,193)
2/7/2014
1991
10,414
(2,138)
2/7/2014
2000
5,229
8,026
7,344
7,900
7,447
8,772
9,768
7,074
9,482
6,338
3,947
7,307
5,875
(1,023)
2/7/2014
1994
(1,802)
2/7/2014
2003
(1,429)
2/7/2014
2002
(1,815)
2/7/2014
1996
(1,729)
2/7/2014
1990
(1,998)
2/7/2014
1991
(2,253)
2/7/2014
1985
(1,421)
2/7/2014
1988
(2,300)
2/7/2014
2000
(1,316)
2/7/2014
1978
(889)
2/7/2014
2002
(1,996)
2/7/2014
1997
(1,602)
2/7/2014
1991
8,600
3,503
14,842
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,275
1,944
2,456
2,872
2,710
1,642
1,574
2,058
1,288
1,423
1,711
1,932
1,949
1,556
2,950
1,442
1,588
1,105
5,396
4,145
4,628
7,943
7,704
3,587
6,452
5,286
6,612
6,024
7,061
7,836
5,125
7,926
3,388
2,505
5,719
4,770
F-67
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Albertson's
Abilene
Albertson's
El Paso
Albertson's
Fort Worth
Albertson's
Fort Worth
Albertson's
Fort Worth
Albertson's
Fort Worth
Albertson's
Midland
Albertson's
Odessa
Albertson's
Weatherford
Ale House
Orlando
TX
TX
TX
TX
TX
TX
TX
TX
TX
FL
Ale House
St. Petersburg
FL
Aliberto's
Mexican Food
Amazon
Holbrook
West
Columbia
Amazon
Charleston
Amazon
Chattanooga
Amec Foster
Wheeler
Amega West
Houston
West
Alexander
Amega West
Midland
AZ
SC
TN
TN
TX
PA
TX
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,187
1,375
2,146
1,833
1,833
1,174
1,002
947
1,820
290
930
32
6,373
6,447
4,678
7,311
4,528
6,255
9,885
8,867
5,771
—
—
—
—
—
—
—
—
—
3,647
(1,300)
3,116
96
3,112
53,103
38,500
2,678
50,880
40,800
1,995
54,332
2,524
30,398
117
591
751
424
1,787
379
14,260
23,261
Ameriprise
Ashwaubenon WI
10,998
Amesbury Truth
Statesville
NC
—
AON
Lincolnshire
IL
92,517
5,336
124,777
Apple Market
St. Joseph
MO
Applebee's
Auburn
Applebee's
Oxford
Applebee's
Phenix City
AL
AL
AL
Applebee's
West Memphis
AR
Applebee's
Arvada
Applebee's
Applebee's
Applebee's
Brighton
Colorado
Springs
Colorado
Springs
Applebee's
Greeley
Applebee's
Northglenn
CO
CO
CO
CO
CO
CO
—
—
—
—
—
—
—
—
—
—
—
639
1,155
1,162
1,488
388
754
657
499
629
559
578
1,638
1,732
2,157
2,232
1,536
1,760
1,972
1,996
1,888
2,235
1,734
F-68
—
—
—
—
—
—
—
—
—
19
—
—
—
—
—
—
—
—
—
—
—
—
7,560
7,822
6,824
9,144
6,361
7,429
(1,748)
2/7/2014
1984
(1,835)
2/7/2014
1978
(1,353)
2/7/2014
2000
(1,977)
2/7/2014
2004
(1,267)
2/7/2014
2002
(1,659)
2/7/2014
1988
10,887
(2,667)
2/7/2014
1984
9,814
7,591
2,637
4,046
128
(2,364)
2/7/2014
1985
(1,610)
2/7/2014
2001
(377)
6/27/2013
1995
(938)
6/27/2013
1995
(28)
6/27/2013
1981
56,215
(12,464)
2/7/2014
2012
53,558
(11,810)
2/7/2014
2011
56,327
(12,917)
2/7/2014
2011
32,922
(7,773)
11/5/2013
1998
1,904
970
(384)
6/12/2014
2010
(86)
6/12/2014
1979
15,011
(3,854)
1/25/2013
2000
23,704
(762)
10/24/2017
2017
130,113
(38,558)
11/16/2012
1998
2,277
2,887
3,319
3,720
1,924
2,514
2,629
2,495
2,517
2,794
2,312
(407)
3/28/2014
1981
(540)
7/31/2013
1993
(644)
8/30/2013
1995
(696)
7/31/2013
1999
(448)
2/7/2014
2006
(549)
7/31/2013
1996
(615)
7/31/2013
1998
(622)
7/31/2013
1995
(589)
7/31/2013
1994
(697)
7/31/2013
1995
(541)
7/31/2013
1993
Property
City
State
Applebee's
Pueblo
Applebee's
Pueblo
Applebee's
Thornton
Applebee's
Bradenton
Applebee's
Brandon
Applebee's
Crestview
Applebee's
Crystal River
Applebee's
Davenport
Applebee's
Inverness
Applebee's
Lakeland
Applebee's
Lakeland
Applebee's
Largo
Applebee's
New Port
Richey
Applebee's
Plant City
Applebee's
Riverview
CO
CO
CO
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
Applebee's
St. Petersburg
FL
Applebee's
Temple
Terrace
Applebee's
Valrico
FL
FL
Applebee's
Wesley Chapel
FL
Applebee's
Winter Haven
FL
Applebee's
Augusta
Applebee's
Dublin
Applebee's
Evans
GA
GA
GA
Applebee's
Milledgeville
GA
Applebee's
Savannah
GA
Applebee's
Clinton
Applebee's
Fort Dodge
Applebee's
Marshalltown
Applebee's
Mason City
Applebee's
Muscatine
Applebee's
Boise
Applebee's
Garden City
IA
IA
IA
IA
IA
ID
ID
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
752
960
681
2,475
2,453
943
1,328
1,506
1,977
1,283
1,959
2,334
1,695
2,079
1,849
2,329
2,396
1,202
3,272
2,130
1,254
1,171
1,426
1,174
1,329
490
—
660
340
330
948
628
2,257
2,879
2,043
3,713
3,647
1,752
2,467
4,517
2,965
2,383
3,638
3,501
3,147
2,869
3,434
3,493
3,594
3,274
3,272
2,603
2,329
1,431
2,649
1,761
2,468
1,184
1,363
1,175
1,495
1,266
1,761
2,512
F-69
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3,009
3,839
2,724
6,188
6,100
2,695
3,795
6,023
4,942
3,666
5,597
5,835
4,842
4,948
5,283
5,822
5,990
4,476
6,544
4,733
3,583
2,602
4,075
2,935
3,797
1,674
1,363
1,835
1,835
1,596
2,709
3,140
(698)
8/30/2013
1998
(898)
7/31/2013
1998
(632)
8/30/2013
1994
(1,158)
7/31/2013
1994
(1,107)
6/27/2013
1997
(546)
7/31/2013
2000
(770)
7/31/2013
2001
(1,409)
7/31/2013
2007
(925)
7/31/2013
2000
(743)
7/31/2013
1997
(1,135)
7/31/2013
2000
(1,092)
7/31/2013
1995
(982)
7/31/2013
1998
(871)
6/27/2013
2001
(1,071)
7/31/2013
2006
(1,090)
7/31/2013
1994
(1,121)
7/31/2013
1993
(994)
6/27/2013
1998
(1,021)
7/31/2013
2000
(812)
7/31/2013
1999
(726)
7/31/2013
1987
(446)
7/31/2013
1998
(826)
7/31/2013
2004
(549)
7/31/2013
1999
(770)
7/31/2013
1994
(356)
6/27/2013
1995
(655)
6/27/2013
1995
(354)
6/27/2013
1995
(450)
6/27/2013
1995
(381)
6/27/2013
1995
(549)
7/31/2013
1998
(777)
8/30/2013
2003
Property
City
State
Applebee's
Nampa
Applebee's
Pocatello
Applebee's
Marion
Applebee's
Sterling
Applebee's
Swansea
Applebee's
Newton
Applebee's
Fall River
Applebee's
Adrian
Applebee's
Kalamazoo
ID
ID
IL
IL
IL
KS
MA
MI
MI
Applebee's
Farmington
MO
Applebee's
Joplin
Applebee's
Rolla
Applebee's
St. Charles
Applebee's
Horn Lake
MO
MO
MO
MS
Applebee's
Ocean Springs MS
Applebee's
Alamogordo
NM
Applebee's
Hobbs
NM
Applebee's
Rio Rancho
NM
Applebee's
Roswell
NM
Applebee's
North Canton
OH
Applebee's
Clackamas
Applebee's
Gresham
OR
OR
Applebee's
Lake Oswego
OR
Applebee's
Roseburg
Applebee's
Tualatin
OR
OR
Applebee's
Chambersburg
PA
Applebee's
Greenville
Applebee's
Bartlett
SC
TN
Applebee's
Corpus Christi
TX
Applebee's
Edinburg
Applebee's
Mcallen
TX
TX
Applebee's
New Braunfels
TX
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
729
612
855
390
727
504
275
407
575
574
754
671
781
584
673
271
600
645
405
152
901
853
1,352
717
1,116
591
600
315
563
898
1,114
566
2,915
1,837
1,527
1,291
1,741
1,569
1,558
2,351
2,644
2,242
1,829
2,272
1,075
1,642
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,708
(1,359)
2,438
3,401
3,654
2,295
838
2,103
2,560
1,652
1,673
2,072
2,416
—
—
—
—
—
—
—
—
—
—
—
2,166
(1,527)
—
—
—
—
—
2,201
2,926
2,058
1,988
1,486
F-70
3,644
2,449
2,382
1,681
2,468
2,073
1,833
2,758
3,219
2,816
2,583
2,943
1,856
2,226
1,022
2,709
4,001
4,299
2,700
990
3,004
3,413
3,004
2,390
3,188
3,007
1,239
2,516
3,489
2,956
3,102
2,052
(909)
7/31/2013
2000
(573)
7/31/2013
1998
(469)
2/7/2014
1998
(389)
6/27/2013
1995
(518)
2/7/2014
1998
(476)
6/27/2013
1998
(486)
7/31/2013
1994
(701)
2/7/2014
1995
(691)
2/7/2014
1994
(664)
2/7/2014
1999
(587)
2/7/2014
1994
(674)
2/7/2014
1997
(261)
6/23/2014
1990
(473)
2/7/2014
2005
(13)
6/27/2013
2000
(754)
8/30/2013
2000
(1,061)
7/31/2013
2002
(1,140)
7/31/2013
1995
(716)
7/31/2013
1998
(255)
6/27/2013
1992
(656)
7/31/2013
1997
(792)
8/30/2013
2004
(515)
7/31/2013
1993
(518)
8/30/2013
2000
(646)
7/31/2013
2002
(628)
2/7/2014
1995
(70)
6/27/2013
1995
(615)
2/7/2014
2005
(888)
6/27/2013
2000
(625)
6/27/2013
2006
(603)
6/27/2013
1993
(451)
6/27/2013
1995
Property
City
State
Applebee's
San Antonio
Applebee's
Tyler
Applebee's
Norton
Applebee's
Wytheville
Applebee's
Richland
Applebee's
Vancouver
Applebee's
Vancouver
TX
TX
VA
VA
WA
WA
WA
Apria Healthcare
Indianapolis
IN
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Alexander City AL
Arab
Guntersville
AL
AL
Hampton Cove
AL
Phoenix
Arvada
Apopka
AZ
CO
FL
Merritt Island
FL
Orange Park
Orlando
Rockledge
Atlanta
Canton
FL
FL
FL
GA
GA
Douglasville
GA
Kennesaw
GA
Richmond Hill
GA
Savannah
Suwanee
GA
GA
Mount Vernon
IL
Avon
Fort Wayne
Indianapolis
Indianapolis
New Albany
IN
IN
IN
IN
IN
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
732
696
848
564
1,112
791
718
981
527
40
142
310
559
190
464
297
420
251
381
1,207
370
370
583
430
293
370
911
500
529
530
370
456
1,796
2,904
433
923
2,064
1,846
1,675
3,922
401
887
503
986
618
1,465
697
552
1,256
585
571
987
1,200
1,692
840
755
293
1,561
764
812
647
1,236
1,130
470
F-71
—
—
—
—
—
—
—
775
—
—
—
—
200
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,528
3,600
1,281
1,487
3,176
2,637
2,393
5,678
928
927
645
1,296
1,377
1,655
1,161
849
1,676
836
952
2,194
1,570
2,062
1,423
1,185
586
1,931
1,675
1,312
1,176
1,766
1,500
926
(545)
6/27/2013
2003
(830)
2/7/2014
1990
(297)
2/7/2014
2006
(386)
2/7/2014
2000
(644)
7/31/2013
2003
(571)
8/30/2013
2001
(522)
7/31/2013
2001
(1,077)
5/19/2014
1993
(119)
6/27/2013
1999
(260)
6/27/2013
1995
(149)
6/27/2013
1995
(289)
6/27/2013
1995
(188)
6/27/2013
1995
(430)
6/27/2013
1995
(195)
7/31/2013
1985
(155)
7/31/2013
1984
(368)
6/27/2013
1995
(164)
7/31/2013
1985
(160)
7/31/2013
1984
(277)
7/31/2013
1984
(352)
6/27/2013
1995
(496)
6/27/2013
1995
(249)
6/27/2013
1984
(224)
6/27/2013
1984
(82)
7/31/2013
1985
(458)
6/27/2013
1995
(226)
6/27/2013
1999
(238)
6/27/2013
1995
(182)
7/31/2013
1987
(362)
6/27/2013
1995
(331)
6/27/2013
1995
(139)
6/27/2013
2005
Property
City
State
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
Arby's
New Albany
Scottsburg
Winchester
Kansas City
Salina
Topeka
IN
IN
IN
KS
KS
KS
Hopkinsville
KY
Louisville
KY
Alma
Chesterfield
Davison
Flint
Flint
MI
MI
MI
MI
MI
Grand Rapids
MI
Grandville
Midland
Port Huron
Saginaw
South Haven
Walker
Waterford
Wyoming
Corinth
Fayetteville
Jonesville
Kernersville
Columbus
Willard
Allentown
Carlisle
Hanover
MI
MI
MI
MI
MI
MI
MI
MI
MS
NC
NC
NC
OH
OH
PA
PA
PA
Chattanooga
TN
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
325
526
341
280
540
270
432
336
380
210
420
110
230
230
1,133
340
210
310
260
360
180
1,513
753
420
350
280
400
230
600
200
400
201
465
445
511
364
300
433
528
625
408
841
631
1,422
1,428
1,289
755
753
868
1,110
573
1,002
962
648
429
2,001
908
774
1,155
599
1,652
472
921
469
F-72
—
—
—
—
64
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
790
971
852
644
904
703
960
961
788
1,051
1,051
1,532
1,658
1,519
1,888
1,093
1,078
1,420
833
1,362
1,142
2,161
1,182
2,421
1,258
1,054
1,555
829
2,252
672
1,321
670
(138)
6/27/2013
1995
(132)
6/27/2013
1989
(143)
7/31/2013
1988
(107)
6/27/2013
1995
(4)
6/27/2013
1995
(127)
6/27/2013
1995
(148)
7/31/2013
1985
(232)
5/30/2013
1979
(120)
6/27/2013
1995
(247)
6/27/2013
1995
(185)
6/27/2013
1995
(417)
6/27/2013
1995
(419)
6/27/2013
1995
(44)
6/27/2013
1995
(212)
7/31/2013
1982
(221)
6/27/2013
1995
(254)
6/27/2013
1995
(326)
6/27/2013
1995
(168)
6/27/2013
1995
(294)
6/27/2013
1995
(282)
6/27/2013
1995
(182)
7/31/2013
1970
(127)
6/27/2013
1984
(587)
6/27/2013
1995
(266)
6/27/2013
1995
(227)
6/27/2013
1995
(339)
6/27/2013
1995
(176)
6/27/2013
1995
(484)
6/27/2013
1995
(139)
6/27/2013
1995
(270)
6/27/2013
1995
(132)
7/31/2013
1998
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Arby's
Arby's
Memphis
Amarillo
Art Van Furniture
Avon
Art Van Furniture
Mentor
Art Van Furniture
Middleburg
Heights
TN
TX
OH
OH
OH
Art Van Furniture
North Canton
OH
Art Van Furniture
Hanover
Art Van Furniture
Johnstown
Art Van Furniture
Lancaster
PA
PA
PA
Ashley Furniture
Jeffersontown
KY
At Home
At Home
Rogers
Gilbert
AR
AZ
At Home
Stockbridge
GA
At Home
Shreveport
At Home
Wixom
At Home
Blaine
At Home
Jackson
At Home
Clarksville
At Home
Memphis
At Home
Fort Worth
At Home
Richmond
At Home & Gabes
Florence
LA
MI
MN
MS
TN
TN
TX
TX
KY
Schaumburg
IL
AT&T
AT&T
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
449
260
925
1,090
1,440
545
703
386
2,156
1,966
2,589
4,053
2,057
2,093
3,329
3,023
2,661
1,649
4,790
2,641
4,605
6,794
2,364
835
627
10,031
9,582
5,529
8,636
4,108
2,582
6,030
2,368
10,042
8,351
8,967
12,311
11,339
9,220
7,245
7,625
4,048
10,723
7,273
5,968
9,305
Richardson
TX
10,882
1,891
31,118
AutoZone
Chicago
AutoZone
Yorkville
AutoZone
Pearl River
AutoZone
Hernando
AutoZone
Blanchester
AutoZone
Hamilton
AutoZone
Hartville
AutoZone
Mt. Orab
IL
IL
LA
MS
OH
OH
OH
OH
—
—
719
—
535
814
614
679
698
383
239
141
341
507
197
258
1,047
1,534
1,193
833
838
1,283
1,156
1,219
F-73
—
—
—
—
—
—
178
174
384
—
—
—
—
—
—
—
—
—
—
—
—
—
635
725
—
—
—
—
—
—
—
—
1,284
887
(234)
7/31/2013
1998
(184)
6/27/2013
1995
10,956
(330)
11/22/2017
2016
10,672
(314)
11/22/2017
2009
6,969
9,181
4,989
3,142
8,570
4,334
12,631
12,404
(178)
11/22/2017
1973
(289)
11/22/2017
2007
(132)
11/22/2017
1996
(93)
11/22/2017
1969
(202)
11/22/2017
1978
(584)
9/26/2014
1970
(64)
10/3/2018
2018
(54)
10/3/2018
2017
11,024
(2,391)
2/7/2014
1998
14,404
(175)
7/3/2018
2018
14,668
(172)
7/3/2018
2017
12,243
(255)
2/8/2018
2001
9,906
9,274
8,838
(191)
2/8/2018
1995
(112)
7/3/2018
1992
(130)
2/8/2018
2005
13,364
(280)
2/8/2018
2015
11,878
(48)
10/3/2018
2017
12,762
(728)
12/14/2016
1992
12,304
(2,371)
9/24/2014
1989
33,734
(8,005)
11/5/2013
1986
1,745
1,917
1,432
974
1,179
1,790
1,353
1,477
(315)
4/30/2013
1995
(411)
5/19/2014
2006
(311)
2/7/2014
2007
(194)
2/7/2014
2003
(217)
2/7/2014
2008
(326)
2/7/2014
2008
(297)
2/7/2014
2008
(307)
2/7/2014
2009
Property
City
State
AutoZone
Trenton
AutoZone
Rapid City
AutoZone
Nashville
Bahama Breeze
Pittsburgh
Bahama Breeze
Memphis
Bandana's Bar-B-
Q Restaurant
Bandana's Bar-B-
Q Restaurant
Bandana's Bar-B-
Q Restaurant
Collinsville
Arnold
Fenton
OH
SD
TN
PA
TN
IL
MO
MO
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
504
571
861
—
—
—
—
—
306
375
555
1,590
2,370
340
460
470
812
969
1,270
1,753
1,313
627
433
314
—
—
—
—
—
—
—
—
1,118
1,344
1,825
3,343
3,683
967
893
784
(208)
2/7/2014
2008
(240)
2/7/2014
2008
(323)
2/7/2014
2009
(281)
7/28/2014
2004
(181)
7/28/2014
1998
(189)
6/27/2013
1995
(130)
6/27/2013
1995
(97)
8/30/2013
1986
F-74
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
2,195
491
3,198
(648)
1/8/2014
1980
San Antonio
TX
9,108
1,666
19,092
Property
City
State
Bank of America
Merced
Bank of America
Asheville
Bank of America
Charlotte
Banner Life
Insurance
Urbana
Beall's
Lakeland
CA
NC
NC
MD
FL
Becton, Dickinson
and Company
Bed Bath &
Beyond
Bed Bath &
Beyond
Stockton
Windsor
Benihana
Anchorage
CA
VA
AK
Benihana
Miami Beach
FL
Benihana
Stuart
Benihana
Alpharetta
Benihana
Schaumburg
Benihana
Benihana
Wheeling
Farmington
Hills
FL
GA
IL
IL
MI
Benihana
Maple Grove
MN
Benihana
Dallas
TX
—
—
—
512
383
62
195
642
19,600
2,733
31,483
—
2,033
4,809
40,278
2,761
52,454
—
—
—
—
—
—
—
—
—
—
3,032
1,391
3,775
1,661
1,151
2,319
1,896
2,025
1,319
2,988
59,649
1,877
433
1,917
1,485
1,396
1,273
2,049
2,604
1,275
—
—
—
—
94
—
3
—
—
—
—
—
—
—
—
—
Best Buy
Montgomery
AL
3,148
1,370
5,749
(4,403)
Best Buy
Coral Springs
FL
Best Buy
Bourbonnais
Best Buy
Indianapolis
Best Buy
Richmond
Best Buy
Marquette
IL
IN
IN
MI
Best Buy
Norton Shores MI
Best Buy
Chesterfield
MO
Best Buy
Southaven
Best Buy
Tupelo
Best Buy
Pineville
Best Buy
Findlay
Best Buy
Kenosha
Best Buy/Party
City
BHC Marketing
Silverdale
The
Woodlands
MS
MS
NC
OH
WI
WA
TX
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,715
1,724
665
549
836
1,568
1,537
2,045
484
1,818
3,313
1,925
3,687
4,724
4,843
5,156
4,775
4,429
4,207
4,099
4,123
4,318
1,934
7,970
—
—
—
—
614
—
—
—
—
—
578
704
(56)
1/8/2014
1993
(182)
1/8/2014
1983
34,216
(7,122)
2/7/2014
2011
6,842
(1,132)
7/16/2014
2006
20,852
(4,750)
11/5/2013
2008
55,215
(18,668)
8/17/2012
2003
62,684
(1,586)
12/20/2017
2001
3,268
4,208
3,578
2,636
3,715
3,169
4,074
3,923
4,263
2,716
7,558
6,880
5,440
4,978
5,657
5,667
5,660
6,363
2,418
9,788
(578)
2/7/2014
1998
(199)
2/7/2014
1972
(615)
2/7/2014
1976
(227)
2/7/2014
2003
(450)
2/7/2014
1992
(258)
2/7/2014
2001
(723)
2/7/2014
2012
(794)
2/7/2014
2006
(462)
2/7/2014
1975
(74)
2/7/2014
2003
(1,466)
2/7/2014
1993
(1,566)
2/7/2014
1991
(1,270)
2/7/2014
2009
(1,206)
2/7/2014
2011
(1,362)
2/7/2014
2010
(1,088)
2/7/2014
2001
(1,138)
2/7/2014
2012
(1,212)
2/7/2014
2007
(489)
5/19/2014
2005
(2,122)
2/7/2014
1994
37,568
2,497
43,378
(1,989)
2/15/2017
1996
—
—
28
7,428
(1,462)
2/7/2014
2008
14,257
(308)
3/27/2018
1991
45,084
(9,782)
11/5/2013
2009
5,503
10,570
40,332
F-75
Property
City
State
Big Lots
Chester
Big O Tires
Phoenix
VA
AZ
Big O Tires
Los Lunas
NM
Bi-Lo's Grocery
Greenwood
Bi-Lo's Grocery
Mt Pleasant
SC
SC
IL
FL
FL
FL
MA
MA
MA
MD
PA
CA
CO
Joliet
Boynton
Beach
Jacksonville
Pembroke
Pines
Greenfield
Leominster
Uxbridge
California
Binny's Beverage
Depot
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
BJ's Wholesale
Club
Lancaster
Black Angus
Dublin
Black Bear DIner
Colorado
Springs
Black Meg 43
Copperas Cove
TX
Blue Goose
Cantina Mexican
Grapevine
Bob Evans
Newark
Bob Evans
East Peoria
Bob Evans
Indianapolis
Bob Evans
Jackson
Bob Evans
Muskegon
Bob Evans
Amherst
Bob Evans
Brunswick
Bob Evans
Cincinnati
Bob Evans
Cincinnati
TX
DE
IL
IN
MI
MI
OH
OH
OH
OH
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
782
—
—
—
—
—
—
335
206
316
533
4,093
1,834
5,569
5,929
3,373
1,367
1,265
4,212
169
—
—
—
8,594
(2,968)
1,585
10,931
16,348
8,446
5,104
7,661
8,416
2,168
14,002
—
3,585
21,344
12,645
5,538
36,445
—
6,882
10,196
775
(15)
—
—
—
—
—
—
—
—
—
—
3,877
1,573
1,581
4,745
9,719
4,194
(1,014)
2/24/2014
2013
(334)
2/7/2014
2010
(437)
6/1/2012
2006
(1,130)
2/7/2014
1999
— 2/7/2014
2003
(523)
2/7/2014
2011
16,485
(2,793)
2/7/2014
2001
22,277
(3,653)
2/7/2014
2003
12,765
(2,031)
2/7/2014
1997
16,170
(2,997)
2/7/2014
1997
24,929
(4,541)
2/7/2014
1993
41,983
(7,153)
2/7/2014
2006
17,078
(2,550)
2/7/2014
2003
20,376
(3,427)
2/7/2014
2001
19,184
(3,406)
2/7/2014
1995
29,670
(5,237)
2/7/2014
1993
19,048
(2,770)
2/7/2014
1995
13,621
3,400
16,782
—
—
—
—
—
—
—
—
—
—
—
—
—
620
480
151
572
869
717
430
980
550
163
1,147
563
601
2,467
809
151
868
810
1,142
708
1,305
860
1,557
1,088
1,706
1,529
F-76
—
—
—
(106)
—
—
—
—
—
—
—
—
—
—
20,182
(4,003)
2/7/2014
1996
3,087
1,289
196
1,440
1,679
1,859
1,138
2,285
1,410
1,720
2,235
2,269
2,130
(743)
6/27/2013
1995
(243)
6/27/2013
1995
(3)
6/27/2013
1979
(264)
6/27/2013
1999
(37)
6/26/2017
1996
(60)
6/26/2017
1993
(38)
6/26/2017
2002
(62)
6/26/2017
2005
(42)
6/26/2017
2001
(77)
6/26/2017
1987
(58)
6/26/2017
1992
(91)
6/26/2017
2003
(82)
6/26/2017
2002
Westminster
MD
13,978
6,516
13,860
Auburn
Portsmouth
Deptford
ME
NH
NJ
—
—
2,674
4,216
16,510
25,454
11,004
6,558
12,490
North Canton
OH
6,787
456
8,668
422
9,546
(3,260)
2/20/2013
1998
Property
City
State
Bob Evans
Lancaster
Bob Evans
Lima
Bob Evans
Marion
Bob Evans
Medina
Bob Evans
Mentor
OH
OH
OH
OH
OH
Bob Evans
Mount Vernon
OH
Bob Evans
Bob Evans
Stow
Troy
OH
OH
Bob Evans
Wapakoneta
OH
Bob Evans
Willoughby
Bob Evans
Xenia
OH
OH
Bob Evans
Phoenixville
PA
Bob Evans
Wilkes-Barre
PA
Bob's Stores
Randolph
Bojangles
Winder
Bojangles
Biscoe
Bojangles
Boone
Bojangles
Denver
Bojangles
Dobson
Bojangles
Hickory
Bojangles
Indian Trail
Bojangles
Morganton
Bojangles
Roanoke
Rapids
Bojangles
Southport
Bojangles
Statesville
Bojangles
Taylorsville
Bojangles
Troutman
Bojangles
Chapin
Bojangles
Clinton
Bojangles
Fountain Inn
Bojangles
Greenwood
Bojangles
Moncks
Corner
MA
GA
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
SC
SC
SC
SC
SC
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
626
366
469
496
626
343
418
512
253
675
337
495
373
2,840
645
247
278
1,013
251
749
655
566
442
505
646
436
718
577
397
287
440
505
1,546
1,631
1,657
1,050
929
1,338
1,416
1,255
1,479
1,262
1,433
438
714
6,826
1,198
986
833
1,881
1,004
1,789
1,217
1,321
1,032
1,179
1,937
1,108
1,077
1,071
926
1,150
1,320
1,179
F-77
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,172
1,997
2,126
1,546
1,555
1,681
1,834
1,767
1,732
1,937
1,770
933
1,087
9,666
1,843
1,233
1,111
2,894
1,255
2,538
1,872
1,887
1,474
1,684
2,583
1,544
1,795
1,648
1,323
1,437
1,760
1,684
(79)
6/26/2017
1998
(84)
6/26/2017
2000
(87)
6/26/2017
2008
(57)
6/26/2017
2000
(49)
6/26/2017
1999
(72)
6/26/2017
2011
(76)
6/26/2017
2002
(66)
6/26/2017
1992
(80)
6/26/2017
2001
(66)
6/26/2017
2005
(76)
6/26/2017
1988
(20)
6/26/2017
1999
(34)
6/26/2017
2003
(2,073)
11/5/2013
1965
(475)
7/30/2012
2011
(381)
11/29/2012
2010
(330)
7/27/2012
1980
(528)
7/31/2013
1997
(398)
7/30/2012
2010
(530)
6/27/2013
1973
(483)
7/27/2012
2011
(524)
7/27/2012
2010
(409)
7/27/2012
2011
(467)
7/30/2012
2011
(544)
7/31/2013
1988
(328)
6/27/2013
1987
(386)
10/10/2013
2012
(422)
8/9/2012
2009
(367)
7/27/2012
2009
(412)
10/10/2013
2012
(500)
2/28/2013
1995
(456)
11/29/2012
2010
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Bojangles
Walterboro
Bonefish Grill
Lakeland
SC
FL
Bonefish Grill
Independence
OH
Bonefish Grill
Gainesville
VA
Boston Market
Indianapolis
Boston Market
Indianapolis
Boston Market
Fayetteville
Boston Market
Raleigh
IN
IN
NC
NC
—
—
—
—
—
—
—
—
454
750
895
751
930
410
460
280
Brick House
Tavern & Tap
W. Windsor
NJ
1,043
1,307
Bridgestone Tire
Kansas City
MO
Bruegger's Bagels
Iowa City
Bruegger's Bagels
Durham
Bruegger's Bagels
Raleigh
Buca di Beppo
Italian
Buca di Beppo
Italian
Buffalo Wild
Wings
Bunge North
America
Wheeling
Westlake
Langhorne
Fort Worth
Burger King
Anchorage
Burger King
Andalusia
Burger King
Atmore
Burger King
Brewton
Burger King
Dothan
Burger King
Dothan
Burger King
Enterprise
Burger King
Evergreen
Burger King
Monroeville
Burger King
Burger King
Opp
Troy
Burger King
Sierra Vista
Burger King
Tucson
Burger King
Denver
Burger King
Clearwater
IA
NC
NC
IL
OH
PA
TX
AK
AL
AL
AL
AL
AL
AL
AL
AL
AL
AL
AZ
AZ
CO
FL
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
651
40
312
230
450
370
815
1,100
427
181
181
307
628
594
437
172
325
214
461
260
300
872
981
1,363
1,897
2,252
1,325
—
—
—
—
—
350
—
—
—
—
—
(8)
—
—
—
—
—
—
—
—
—
—
(15)
—
—
—
—
—
—
—
250
—
—
1,070
1,520
1,015
1,498
1,954
379
728
654
1,272
887
815
8,433
489
1,025
723
920
1,167
1,104
655
689
604
857
1,383
1,041
1,307
1,242
591
F-78
1,817
2,647
3,147
2,076
1,280
1,480
1,980
1,295
2,805
2,605
411
1,040
884
1,722
1,257
1,630
9,533
916
1,206
904
1,227
1,780
1,698
1,092
861
929
1,071
1,844
1,301
1,857
2,114
1,572
(526)
11/29/2012
2010
(561)
2/7/2014
2003
(691)
2/7/2014
2006
(586)
2/7/2014
2004
(63)
6/27/2013
1995
(314)
6/27/2013
1995
(446)
6/27/2013
1995
(298)
6/27/2013
1995
(356)
2/7/2014
1998
(611)
5/31/2013
2008
(111)
6/27/2013
1995
(204)
7/31/2013
1926
(192)
6/27/2013
1995
(383)
6/27/2013
1995
(267)
6/27/2013
1995
(254)
7/31/2013
1999
(2,314)
11/5/2013
2005
(145)
6/27/2013
1982
(288)
7/31/2013
2000
(203)
7/31/2013
2000
(258)
7/31/2013
1993
(328)
7/31/2013
1983
(310)
7/31/2013
1999
(184)
7/31/2013
1985
(193)
7/31/2013
1997
(169)
7/31/2013
1997
(241)
7/31/2013
1994
(388)
7/31/2013
1984
(292)
7/31/2013
1994
(387)
6/27/2013
1995
(368)
6/27/2013
1994
(175)
6/27/2013
1980
Initial Costs (1)
Encumbrances
at
December 31,
2018
State
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
Burger King
City
Defuniak
Springs
Burger King
Largo
Burger King
Niceville
Burger King
Panama City
Burger King
Springfield
Burger King
Tallahassee
Burger King
Tallahassee
Burger King
Alpharetta
Burger King
Alpharetta
Burger King
Alpharetta
Burger King
Alpharetta
Burger King
Atlanta
Burger King
Augusta
Burger King
Bainbridge
Burger King
Cairo
Burger King
Fort
Oglethorpe
Burger King
Martinez
Burger King
Roswell
Burger King
Thomson
Burger King
Valdosta
Burger King
Des Moines
Burger King
Perry
Burger King
Red Oak
Burger King
Shenandoah
Burger King
Stuart
Burger King
Maywood
Burger King
Springfield
Burger King
Gary
Burger King
Cut Off
Burger King
Gonzales
FL
FL
FL
FL
FL
FL
FL
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
IA
IA
IA
IA
IA
IL
IL
IN
LA
LA
Burger King
Lake Charles
LA
Burger King
Lake Charles
LA
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
362
683
598
319
324
720
843
635
1,128
795
501
380
693
347
245
170
909
495
748
564
1,160
557
334
313
607
860
354
544
726
380
456
610
1,087
412
399
956
971
720
454
865
977
943
1,219
499
2,080
1,042
981
2,175
1,350
1,156
876
376
949
680
1,002
582
911
1,051
677
606
1,088
465
456
746
F-79
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(357)
(562)
—
—
—
—
—
1,449
1,095
997
1,275
1,295
1,440
1,297
1,500
2,105
1,738
1,720
879
2,773
1,389
1,226
2,345
2,259
1,651
1,624
940
2,109
1,237
1,336
895
1,518
1,554
469
1,150
1,814
845
912
(305)
7/31/2013
1989
(122)
6/27/2013
1984
(112)
7/31/2013
1994
(268)
7/31/2013
1998
(272)
7/31/2013
1995
(202)
7/31/2013
1998
(127)
7/31/2013
1980
(256)
6/27/2013
1998
(290)
6/27/2013
1993
(279)
6/27/2013
1997
(361)
6/27/2013
2001
(146)
6/27/2013
1995
(584)
7/31/2013
1986
(292)
7/31/2013
1998
(275)
7/31/2013
1997
(638)
6/27/2013
1995
(400)
6/27/2013
1998
(324)
7/31/2013
1998
(260)
6/27/2013
1988
(106)
7/31/2013
1987
(266)
7/31/2013
1987
(191)
7/31/2013
1997
(281)
7/31/2013
1988
(163)
7/31/2013
1988
(256)
7/31/2013
1997
(160)
7/31/2013
2003
(6)
6/27/2013
1995
(179)
6/27/2013
1987
(305)
7/31/2013
1990
(130)
7/31/2013
1990
(128)
7/31/2013
1980
1,356
(209)
7/31/2013
1990
Property
City
State
Burger King
Metairie
Burger King
Opelousas
Burger King
Raceland
Burger King
Amesbury
Burger King
Springfield
Burger King
Caribou
Burger King
Belding
Burger King
Detroit
LA
LA
LA
MA
MA
ME
MI
MI
Burger King
Grand Rapids
MI
Burger King
Grand Rapids
MI
Burger King
Grand Rapids
MI
Burger King
Holland
Burger King
Hudsonville
Burger King
L'Anse
Burger King
Sparta
Burger King
Walker
Burger King
Warren
MI
MI
MI
MI
MI
MI
Burger King
Hastings
MN
Burger King
Kansas City
MO
Burger King
Brandon
Burger King
Clarksdale
Burger King
Cleveland
Burger King
Greenville
Burger King
Greenville
Burger King
Greenwood
Burger King
Grenada
MS
MS
MS
MS
MS
MS
MS
Burger King
Philadelphia
MS
Burger King
Yazoo City
MS
Burger King
Asheville
Burger King
Chadbourn
Burger King
Claremont
Burger King
Clinton
NC
NC
NC
NC
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
728
964
356
835
983
770
221
614
490
260
346
420
451
32
640
305
248
328
444
649
865
688
573
351
692
536
402
489
728
353
646
494
392
964
533
1,217
516
440
411
331
545
780
807
707
676
616
570
711
745
608
1,036
1,513
865
1,606
1,337
820
1,038
805
939
909
595
797
646
801
F-80
—
—
—
—
—
—
—
—
—
—
—
(668)
—
—
—
—
—
200
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,120
1,928
889
2,052
1,499
1,210
632
945
1,035
1,040
1,153
459
1,127
648
1,210
1,016
993
1,136
1,480
2,162
1,730
2,294
1,910
1,171
1,730
1,341
1,341
1,398
1,323
1,150
1,292
1,295
(110)
7/31/2013
1990
(271)
7/31/2013
1978
(150)
7/31/2013
2000
(360)
6/27/2013
1977
(153)
6/27/2013
1974
(129)
6/27/2013
1995
(115)
7/31/2013
1994
(93)
7/31/2013
1988
(160)
6/27/2013
1995
(229)
6/27/2013
1995
(226)
7/31/2013
1985
— 6/27/2013
1995
(190)
7/31/2013
1988
(173)
7/31/2013
1999
(167)
6/27/2013
1995
(199)
7/31/2013
1973
(209)
7/31/2013
1987
(179)
7/31/2013
1990
(291)
7/31/2013
1984
(448)
6/27/2013
1981
(243)
7/31/2013
1988
(451)
7/31/2013
1985
(375)
7/31/2013
2004
(230)
7/31/2013
1993
(291)
7/31/2013
1988
(226)
7/31/2013
1989
(263)
7/31/2013
1993
(255)
7/31/2013
1993
(167)
7/31/2013
1982
(236)
6/27/2013
1999
(191)
6/27/2013
2000
(237)
6/27/2013
1999
Property
City
State
Burger King
Durham
Burger King
Wilmington
Burger King
Blair
Burger King
Wahoo
Burger King
Dover
Burger King
Nashua
Burger King
Edison
Burger King
Elko
Burger King
Albany
NC
NC
NE
NE
NH
NH
NJ
NV
NY
Burger King
Central Square
NY
Burger King
Cohoes
Burger King
Hamburg
Burger King
Irondequoit
NY
NY
NY
Burger King
Montgomery
NY
Burger King
Schenectady
NY
Burger King
Syracuse
Burger King
Dayton
Burger King
Mansfield
Burger King
New
Philadelphia
Burger King
Willoughby
Burger King
Ardmore
NY
OH
OH
OH
OH
OK
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
522
1,443
1,359
1,305
2,111
1,310
1,555
1,261
1,180
1,689
833
786
1,647
1,522
1,316
1,212
1,035
957
1,198
1,415
1,293
(103)
6/27/2013
1995
(258)
6/27/2013
1999
(305)
7/31/2013
1987
(311)
7/31/2013
1990
(282)
6/27/2013
1970
(184)
7/31/2013
2008
(315)
6/27/2013
1995
(294)
6/27/2013
1995
(249)
6/27/2013
1995
(349)
6/27/2013
1995
(165)
6/27/2013
1995
(113)
6/27/2013
1974
(185)
7/31/2013
1980
(306)
6/27/2013
1995
(275)
6/27/2013
1995
(170)
7/31/2013
1986
(131)
7/31/2013
1990
(215)
7/31/2013
1985
(219)
7/31/2013
1986
(295)
6/27/2013
1995
(300)
6/27/2013
1995
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
170
573
272
196
1,159
655
480
260
330
500
270
403
988
480
380
606
569
191
419
410
270
352
870
1,087
1,109
952
655
1,075
1,001
850
1,189
563
383
659
1,042
936
606
466
766
779
1,005
1,023
F-81
Property
City
State
Burger King
Roseburg
OR
Burger King
Harrisburg
Burger King
Old Forge
Burger King
Gaffney
Burger King
Greenville
PA
PA
SC
SC
Burger King
North Augusta
SC
Burger King
North Augusta
SC
Burger King
Chattanooga
Burger King
Gallatin
Burger King
Austin
Burger King
Laredo
Burger King
Texas City
TN
TN
TX
TX
TX
Burger King
Spanaway
WA
Burger King
Germantown
WI
Burger King
Marshfield
Burger King
Rhinelander
Burger King
Weston
WI
WI
WI
Burger King
Bluefield
WV
Burlington
Rogers
Burlington
West Valley
City
Cabela's
Rogers
Cabela's
Thornton
Cabela's
Grandville
AR
UT
AR
CO
MI
Cabela's
Oklahoma City OK
Cabela's
Lacey
Cactus Wellhead
Williston
Cactus Wellhead
Dubois
Cactus Wellhead
Center
Cactus Wellhead
Pleasanton
Cadbury Holdings Whippany
California Pizza
Kitchen
Paradise
Valley
WA
ND
PA
TX
TX
NJ
AZ
California Pizza
Kitchen
Alpharetta
GA
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
350
619
390
370
420
256
450
740
199
666
684
421
509
644
232
260
329
210
1,460
2,331
3,419
3,677
3,269
3,383
3,393
72
129
115
144
2,767
2,285
1,279
886
412
905
880
571
1,451
1,050
1,591
463
999
1,026
782
1,628
1,300
885
606
718
1,163
6,379
5,821
17,605
19,099
20,328
11,590
—
—
126
—
—
—
—
—
—
(517)
—
300
—
—
—
—
—
—
—
—
—
—
—
—
1,236
1,031
1,421
1,250
991
1,707
1,500
2,331
662
1,148
1,710
1,503
2,137
1,944
1,117
866
1,047
1,373
7,839
8,152
(260)
6/27/2013
1995
(116)
7/31/2013
1985
(74)
6/27/2013
1995
(258)
6/27/2013
1995
(167)
6/27/2013
1995
(407)
7/31/2013
1985
(295)
7/31/2013
1985
(467)
6/27/2013
1995
(130)
7/31/2013
1984
(135)
6/27/2013
1998
(288)
7/31/2013
2002
(241)
7/31/2013
1984
(482)
6/27/2013
1997
(385)
6/27/2013
1986
(262)
6/27/2013
1986
(170)
7/31/2013
1986
(213)
6/27/2013
1987
(341)
6/27/2013
1995
(149)
3/7/2018
2015
(257)
11/30/2017
2017
21,024
(647)
9/25/2017
2012
22,776
(685)
9/25/2017
2012
23,597
(739)
9/25/2017
2013
14,973
(421)
9/25/2017
2015
20,158
(29)
23,522
(769)
9/25/2017
2007
—
—
—
—
—
—
—
3,807
2,671
2,001
3,052
(713)
7/24/2014
2011
(513)
6/12/2014
2012
(380)
6/12/2014
2011
(592)
6/12/2014
2011
40,785
(9,275)
11/5/2013
2004
3,765
4,528
(480)
2/7/2014
1994
(946)
2/7/2014
1994
3,735
2,542
1,886
2,908
38,018
1,480
3,249
F-82
Initial Costs (1)
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
California Pizza
Kitchen
California Pizza
Kitchen
California Pizza
Kitchen
State
GA
Atlanta
Schaumburg
IL
Grapevine
Captain D's
Statesboro
Captain D's
Florence
Captain D's
Southaven
Captain D's
Memphis
Captain D's
Duncanville
Cargill
Blair
Carl's Jr.
Purcell
CarMax
Henderson
CarMax
Austin
Carrabba's
Scottsdale
Carrabba's
Louisville
Carrabba's
Tampa
Carrabba's
Duluth
Carrabba's
Bowie
Carrabba's
Brooklyn
Carrabba's
Washington
Twnshp
Carrabba's
Columbia
TX
GA
KY
MS
TN
TX
NE
OK
NV
TX
AZ
CO
FL
GA
MD
OH
OH
SC
Carrabba's
Johnson City
TN
Cashland
Celina
OH
Castle Dental
Murfreesboro
TN
Cequent
Change
Healthcare
Operations
Mosinee
Nashville
Charleston's
Carmel
Checkers
Huntsville
Checkers
Hollywood
Checkers
Jacksonville
Checkers
Lauderhill
Checkers
Miami
WI
TN
IN
AL
FL
FL
FL
FL
Encumbrances
at
December 31,
2018
—
—
—
—
—
—
—
—
2,401
—
—
Land
2,307
1,180
1,544
350
248
270
230
295
627
77
1,857
3,179
2,250
401
325
564
338
246
4,989
513
8,542
10,396
9,900
5,461
16,940
—
—
—
—
—
—
—
—
—
—
—
—
4,700
—
—
—
—
—
—
1,350
1,083
1,650
836
1,429
1,187
906
1,159
771
108
256
1,847
1,400
2,085
2,881
1,036
2,212
1,859
2,164
2,536
132
256
1,416
3,259
688
140
689
160
731
280
621
10,417
3,016
—
2,220
1,096
1,951
—
F-83
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,164
4,359
3,794
751
573
834
568
541
(587)
2/7/2014
1993
(928)
2/7/2014
1995
(670)
2/7/2014
1994
(118)
6/27/2013
1995
(96)
6/27/2013
1981
(165)
6/27/2013
1995
(99)
6/27/2013
1995
(73)
6/27/2013
1982
5,616
(1,080)
2/7/2014
2009
590
(152)
6/27/2013
1980
18,938
(2,837)
2/7/2014
2002
22,401
(4,158)
2/7/2014
2004
3,197
2,483
3,735
3,717
2,465
3,399
2,765
3,323
3,307
240
512
(398)
2/7/2014
2000
(407)
2/7/2014
2000
(632)
2/7/2014
1994
(849)
2/7/2014
2004
(563)
2/7/2014
2003
(619)
2/7/2014
2002
(568)
2/7/2014
2001
(626)
2/7/2014
2000
(795)
2/7/2014
2003
(41)
7/31/2013
1995
(80)
7/31/2013
1996
4,675
(499)
2/21/2014
1992
11,105
(2,126)
2/7/2014
2010
3,156
689
2,380
1,827
2,231
621
(908)
6/27/2013
1995
— 6/27/2013
1995
(668)
6/27/2013
1995
(308)
7/31/2013
1993
(587)
6/27/2013
1995
— 7/31/2013
1993
Property
City
State
Checkers
Orlando
Checkers
Plantation
Checkers
Tampa
FL
FL
FL
Checkers
Fayetteville
GA
Chedder's Casual
Cafe
Chedder's Casual
Cafe
Bolingbrook
IL
Lubbock
Chevy's
Miami
Chevy's
Children's
Courtyard
Childtime
Childcare
Childtime
Childcare
Childtime
Childcare
Childtime
Childcare
Chilis
Chilis
Chilis
Chilis
Greenbelt
MD
Grand Prairie
TX
Modesto
Bedford
CA
OH
Oklahoma City OK
Oklahoma City OK
East Peoria
Flanders
Mt. Laurel
Amarillo
Encumbrances
at
December 31,
2018
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Land
1,033
220
736
681
1,344
1,053
1,455
530
367
280
111
124
108
1,023
1,508
1,402
1,447
1,332
TX
FL
IL
NJ
NJ
TX
TX
TX
ND
IL
AL
AL
AL
AL
FL
GA
GA
SC
SC
SC
SC
China Buffet
Alvin
China Buffet
Angleton
China Town
Buffet
Bismarck
Chipper's Grill
Streator
Church's Chicken
Atmore
Church's Chicken
Bay Minette
Church's Chicken
Flomaton
Church's Chicken
Jackson
Church's Chicken
Orlando
Church's Chicken
Augusta
Church's Chicken
Augusta
Church's Chicken
Charleston
Church's Chicken
Charleston
Church's Chicken
Columbia
Church's Chicken
Columbia
Initial Costs (1)
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
1,461
—
—
1,760
2,345
783
2,399
1,055
1,524
852
796
793
2,347
842
1,792
1,893
299
272
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(486)
(393)
1,033
1,681
736
681
3,104
3,398
2,238
2,929
1,422
1,804
963
920
901
3,370
2,244
3,124
2,704
409
399
— 7/31/2013
1995
(440)
6/27/2013
1995
— 6/27/2013
1995
— 6/27/2013
1995
(534)
6/27/2013
1997
(712)
6/27/2013
1997
(244)
7/31/2013
1995
(722)
6/27/2013
1995
(277)
2/7/2014
1999
(387)
2/7/2014
1988
(240)
2/7/2014
1979
(222)
2/7/2014
1985
(214)
2/7/2014
1986
(713)
6/27/2013
2003
(398)
2/7/2014
2003
(360)
2/7/2014
2004
(590)
7/31/2013
1984
(91)
6/27/2013
1982
(82)
6/27/2013
1982
2,966
(601)
7/31/2013
2000
445
718
891
691
846
634
853
654
765
667
388
266
(77)
6/27/2013
1995
(161)
7/31/2013
1976
(212)
7/31/2013
2003
(145)
7/31/2013
1981
(202)
7/31/2013
1982
(107)
7/31/2013
1984
(167)
7/31/2013
1976
(128)
7/31/2013
1984
(97)
7/31/2013
1973
(47)
7/31/2013
1979
(6)
7/31/2013
1978
(6)
7/31/2013
1977
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
811
110
127
1,038
1,928
190
144
134
173
127
254
256
196
421
500
437
231
255
574
757
518
719
380
597
458
344
167
437
428
F-84
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Church's Chicken
Greenville
Church's Chicken
Greenville
Church's Chicken
Church's Chicken
North
Charleston
North
Charleston
Church's Chicken
Orangeburg
Church's Chicken
Spartanburg
Chuze Fitness
Cigna
Cigna
Highlands
Ranch
Phoenix
Plano
Circle K
Phoenix
Circle K
Martinez
Circle K
Martinez
Circle K
Thomson
Circle K
Akron
Citizens Bank
Colchester
Citizens Bank
Deep River
Citizens Bank
East Lyme
Citizens Bank
Hamden
Citizens Bank
Higganum
Citizens Bank
Montville
Citizens Bank
Stonington
Citizens Bank
Lewes
Citizens Bank
Wilmington
Citizens Bank
Ludlow
Citizens Bank
Malden
Citizens Bank
Malden
Citizens Bank
Medford
Citizens Bank
Milton
SC
SC
SC
SC
SC
SC
CO
AZ
TX
AZ
GA
GA
GA
OH
CT
CT
CT
CT
CT
CT
CT
DE
DE
MA
MA
MA
MA
MA
Citizens Bank
New Bedford
MA
Citizens Bank
Randolph
Citizens Bank
Somerville
MA
MA
Citizens Bank
South Dennis
MA
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,697
1,194
2,244
—
1,383
—
—
254
325
302
407
407
350
2,850
6,194
472
487
302
407
271
525
4,795
16,215
10,036
42,676
344
348
293
637
675
185
453
258
581
171
413
190
102
299
810
488
484
589
619
297
480
561
—
1,377
813
329
340
1,254
1,049
1,812
1,032
475
971
2,342
1,079
916
299
540
596
1,935
1,094
2,476
694
1,439
561
1,294
F-85
—
(458)
—
—
(299)
(431)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
726
354
604
814
379
444
(132)
7/31/2013
2009
(7)
7/31/2013
1984
(85)
7/31/2013
1976
(114)
7/31/2013
1977
(5)
7/31/2013
1985
(9)
7/31/2013
1978
7,645
(1,168)
2/7/2014
2007
22,409
(3,797)
2/7/2014
2012
52,712
(10,111)
2/7/2014
2009
1,721
1,161
622
977
1,929
1,234
2,265
1,290
1,056
1,142
2,755
1,269
1,018
598
1,350
1,084
2,419
1,683
3,095
991
1,919
1,122
1,294
(450)
5/4/2012
1986
(260)
8/28/2012
2003
(80)
9/26/2014
1993
(86)
9/26/2014
1990
(398)
9/27/2012
1996
(319)
9/28/2012
2012
(550)
9/28/2012
1851
(313)
9/28/2012
1972
(144)
9/28/2012
1995
(358)
8/1/2010
1995
(711)
9/28/2012
1984
(328)
9/28/2012
1984
(267)
2/22/2013
1968
(94)
4/26/2012
1967
(164)
9/28/2012
1995
(181)
9/28/2012
1920
(587)
9/28/2012
1988
(332)
9/28/2012
1938
(735)
12/14/2012
1968
(211)
9/28/2012
1983
(437)
9/28/2012
1979
(170)
9/28/2012
1940
(384)
12/14/2012
1986
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
187
390
350
574
434
385
303
410
283
261
168
309
312
178
747
724
816
3,250
2,461
2,184
707
2,322
—
—
—
—
—
—
—
—
1,602
(1,227)
1,476
951
1,748
935
1,009
—
—
—
—
—
934
1,114
1,166
3,824
2,895
2,569
1,010
2,732
658
1,737
1,119
2,057
1,247
1,187
(213)
5/10/2013
1975
(220)
9/28/2012
1974
(242)
12/14/2012
1991
(1,205)
8/1/2010
1970
(861)
8/1/2010
1977
(764)
8/1/2010
1974
(210)
12/14/2012
1962
(849)
8/1/2010
1975
(8)
8/1/2010
1980
(550)
8/1/2010
1959
(354)
8/1/2010
1980
(651)
8/1/2010
1960
(277)
12/14/2012
1980
(372)
8/1/2010
1963
Property
City
State
Citizens Bank
Springfield
Citizens Bank
Winthrop
Citizens Bank
Woburn
Citizens Bank
Clinton
Township
Citizens Bank
Dearborn
Citizens Bank
Dearborn
Citizens Bank
Farmington
MA
MA
MA
MI
MI
MI
MI
Citizens Bank
Grosse Pointe
MI
Citizens Bank
Lathrup
Village
Citizens Bank
Livonia
Citizens Bank
Richmond
Citizens Bank
St. Clair
Shores
Citizens Bank
Troy
Citizens Bank
Warren
MI
MI
MI
MI
MI
MI
F-86
Property
City
State
Citizens Bank
Keene
Citizens Bank
Manchester
Citizens Bank
Manchester
Citizens Bank
Pelham
Citizens Bank
Pittsfield
Citizens Bank
Rollinsford
Citizens Bank
Salem
Citizens Bank
Haddon
Heights
Citizens Bank
Albany
Citizens Bank
Amherst
Citizens Bank
East Aurora
Citizens Bank
Johnstown
Citizens Bank
Port Jervis
Citizens Bank
Rochester
Citizens Bank
Vails Gate
Citizens Bank
Whitesboro
Citizens Bank
Alliance
Citizens Bank
Boardman
Citizens Bank
Broadview
Heights
Citizens Bank
Brunswick
Citizens Bank
Cleveland
Citizens Bank
Cleveland
Citizens Bank
Cleveland
Citizens Bank
Fairlawn
Citizens Bank
Lakewood
Citizens Bank
Louisville
Citizens Bank
Massillon
Citizens Bank
Northfield
Citizens Bank
Parma
NH
NH
NH
NH
NH
NH
NH
NJ
NY
NY
NY
NY
NY
NY
NY
NY
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
Citizens Bank
Parma Heights
OH
Citizens Bank
Rocky River
OH
Citizens Bank
South Russell
OH
Encumbrances
at
December 31,
2018
1,885
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,885
—
—
—
—
—
—
—
—
Initial Costs (1)
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
132
640
—
113
160
78
328
316
232
238
162
163
143
166
284
130
204
280
201
186
239
210
182
511
196
191
287
317
475
426
283
106
2,511
782
1,568
340
908
444
1,312
948
1,315
1,348
919
923
811
943
1,610
739
1,156
1,589
1,140
1,057
1,357
1,190
1,031
2,045
1,111
1,080
1,624
1,797
581
638
1,602
957
F-87
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,643
1,422
1,568
453
1,068
522
1,640
1,264
1,547
1,586
1,081
1,086
954
1,109
1,894
869
1,360
1,869
1,341
1,243
1,596
1,400
1,213
2,556
1,307
1,271
1,911
2,114
1,056
1,064
1,885
1,063
(745)
12/14/2012
1900
(237)
9/28/2012
1941
(465)
12/14/2012
1995
(107)
4/26/2012
1983
(335)
8/1/2010
1976
(164)
8/1/2010
1977
(389)
12/14/2012
1980
(266)
7/23/2013
1965
(460)
8/1/2010
1960
(478)
8/1/2010
1965
(326)
8/1/2010
1996
(323)
8/1/2010
1973
(292)
8/1/2010
1995
(335)
8/1/2010
1962
(563)
8/1/2010
1995
(259)
8/1/2010
1995
(433)
8/1/2010
1972
(595)
8/1/2010
1984
(411)
8/1/2010
1982
(396)
8/1/2010
2004
(508)
8/1/2010
1973
(446)
8/1/2010
1950
(386)
8/1/2010
1930
(607)
12/14/2012
1979
(389)
8/1/2010
1985
(404)
8/1/2010
1960
(608)
8/1/2010
1995
(663)
8/1/2010
1969
(172)
12/14/2012
1971
(189)
12/14/2012
1957
(560)
8/1/2010
1972
(284)
12/14/2012
1981
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Citizens Bank
Wadsworth
Citizens Bank
Willoughby
Citizens Bank
Aliquippa
Citizens Bank
Allison Park
Citizens Bank
Altoona
Citizens Bank
Ambridge
Citizens Bank
Beaver Falls
Citizens Bank
Butler
Citizens Bank
Camp Hill
Citizens Bank
Carnegie
Citizens Bank
Dallas
Citizens Bank
Dillsburg
Citizens Bank
Erie
Citizens Bank
Glenside
Citizens Bank
Greensburg
Citizens Bank
Havertown
Citizens Bank
Homestead
Citizens Bank
Kingston
Citizens Bank
Kittanning
Citizens Bank
Lancaster
Citizens Bank
Latrobe
OH
OH
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
Citizens Bank
Lower Burrell
PA
Citizens Bank
Mechanicsbur
g
Citizens Bank
Mercer
Citizens Bank
Milford
Citizens Bank
Mount
Lebanon
PA
PA
PA
PA
Citizens Bank
Mountain Top
PA
Citizens Bank
Narberth
Citizens Bank
Oakmont
Citizens Bank
Oil City
Citizens Bank
Philadelphia
Citizens Bank
Pittsburgh
PA
PA
PA
PA
PA
—
—
—
—
—
—
—
—
—
—
—
—
—
1,257
—
—
—
—
—
—
—
—
1,620
—
—
1,577
—
—
—
—
—
—
158
395
138
314
153
215
138
286
430
73
213
232
168
343
45
219
202
404
56
383
148
180
288
105
513
215
111
420
199
110
266
215
893
—
2,239
(1,565)
782
733
459
—
—
—
1,217
(1,282)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
553
1,144
645
1,396
1,205
926
671
1,370
861
875
807
943
1,060
468
591
722
2,590
314
769
1,939
631
2,381
1,127
623
1,065
1,219
F-88
1,051
1,069
920
1,047
612
150
691
1,430
1,075
1,469
1,418
1,158
839
1,713
906
1,094
1,009
1,347
1,116
851
739
902
2,878
419
1,282
2,154
742
2,801
1,326
733
1,331
1,434
(334)
8/1/2010
1960
(6)
8/1/2010
1920
(232)
12/14/2012
1953
(222)
9/28/2012
1972
(136)
12/14/2012
1971
(7)
8/1/2010
1925
(168)
9/28/2012
1995
(339)
12/14/2012
1966
(191)
12/14/2012
1971
(414)
12/14/2012
1920
(366)
9/28/2012
1949
(275)
12/14/2012
1935
(199)
12/14/2012
1954
(391)
5/22/2013
1958
(255)
12/14/2012
1957
(266)
9/28/2012
2003
(245)
9/28/2012
1960
(280)
12/14/2012
1977
(314)
12/14/2012
1889
(142)
9/28/2012
1967
(175)
12/14/2012
1969
(214)
12/14/2012
1980
(786)
9/28/2012
1900
(93)
12/14/2012
1964
(228)
12/14/2012
1981
(589)
9/28/2012
1960
(187)
12/14/2012
1980
(833)
8/1/2010
1935
(334)
12/14/2012
1967
(185)
12/14/2012
1965
(316)
12/14/2012
1971
(370)
9/28/2012
1970
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Citizens Bank
Pittsburgh
Citizens Bank
Pittsburgh
Citizens Bank
Pittsburgh
Citizens Bank
Pittsburgh
Citizens Bank
Pittsburgh
Citizens Bank
Pittsburgh
Citizens Bank
Pittsburgh
Citizens Bank
Pittsburgh
Citizens Bank
Reading
Citizens Bank
Reading
Citizens Bank
Temple
Citizens Bank
Turtle Creek
Citizens Bank
Tyrone
Citizens Bank
Upper Darby
Citizens Bank
Warrendale
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
PA
Citizens Bank
West Hazleton
PA
Citizens Bank
Wexford
PA
Citizens Bank
Coventry
Citizens Bank
Cranston
Citizens Bank
East
Greenwich
Citizens Bank
Johnston
RI
RI
RI
RI
Citizens Bank
N. Providence
RI
1,445
Citizens Bank
N. Providence
RI
Citizens Bank
Providence
Citizens Bank
Rumford
Citizens Bank
Wakefield
Citizens Bank
Warren
Citizens Bank
Warwick
Citizens Bank
Middlebury
Citizens Bank
St. Albans
Coborn's Liquor
Store
Coborn's Liquor
Store
Stanley
Tioga
RI
RI
RI
RI
RI
VT
VT
ND
ND
—
—
—
—
—
—
—
—
—
—
—
—
—
2,262
1,244
—
918
—
—
—
—
—
—
—
—
—
—
—
—
—
—
256
389
146
470
516
206
196
268
269
267
268
308
146
411
611
279
180
559
411
227
343
200
223
300
352
517
328
767
1,168
—
—
2,770
(1,725)
2,661
1,204
1,852
1,110
2,413
—
—
—
—
—
1,524
(1,542)
802
626
923
583
617
916
2,509
719
559
1,234
680
1,030
1,800
892
899
654
959
609
(586)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,023
1,557
1,191
3,131
1,720
2,058
1,306
2,681
251
483
894
1,231
729
1,028
1,527
2,788
899
1,118
1,645
907
1,373
2,000
1,115
1,199
1,006
1,476
937
(233)
9/28/2012
1970
(346)
12/14/2012
1940
(9)
12/14/2012
1900
(789)
12/14/2012
1979
(357)
12/14/2012
1970
(549)
12/14/2012
1923
(329)
12/14/2012
1980
(716)
12/14/2012
1970
— 4/12/2013
1904
— 12/14/2012
1970
(190)
9/28/2012
1936
(280)
9/28/2012
1970
(173)
12/14/2012
1967
(183)
12/14/2012
1966
(272)
12/14/2012
1981
(762)
9/28/2012
1900
(213)
12/14/2012
1975
(170)
9/28/2012
1968
(366)
12/14/2012
1967
(202)
12/14/2012
1959
(313)
9/28/2012
1972
(534)
12/31/2012
1971
(265)
12/14/2012
1971
(267)
12/14/2012
1960
(194)
12/14/2012
1977
(291)
9/28/2012
1976
(185)
9/28/2012
1980
1,870
8,828
697
11,395
(2,501)
9/24/2013
1995
363
141
1,163
1,065
544
798
5,037
4,581
F-89
—
—
—
—
907
939
6,200
5,646
(161)
12/14/2012
1969
(287)
8/1/2010
1989
(1,254)
2/21/2014
2014
(920)
6/26/2014
2014
Property
City
State
Codale
Codale
Codale
Logan
Orem
West Valley
Comcast
Englewood
Community Bank Whitehall
CompUSA
Arlington
ConAgra Foods
Milton
Conn's
Hurst
Cooper Tire &
Rubber
Franklin
Cork & Pig
San Angelo
Cost Plus
La Quinta
County of Yolo,
CA
Woodland
Cracker Barrel
Braselton
Cracker Barrel
Bremen
Cracker Barrel
Columbus
Cracker Barrel
Greensboro
Cracker Barrel
Mebane
UT
UT
UT
CO
NY
TX
PA
TX
IN
TX
CA
CA
GA
GA
GA
NC
NC
Cracker Barrel
Rocky Mount
NC
Cracker Barrel
Fort Mill
Cracker Barrel
Piedmont
Cracker Barrel
Abilene
Cracker Barrel
San Antonio
Cracker Barrel
Sherman
Cracker Barrel
Bristol
Cracker Barrel
Emporia
SC
SC
TX
TX
TX
VA
VA
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
420
637
2,684
1,490
106
1,770
2,437
3,007
5,171
25,881
5,060
600
1,467
—
—
5,656
27,242
497
1,990
14,883
4,438
33,994
—
—
—
769
1,211
2,640
2,935
1,294
2,677
1,012
—
—
912
1,632
2,514
1,106
—
—
—
—
—
—
—
1,274
1,301
1,630
1,374
1,725
557
1,241
2,435
972
2,306
4,786
13,681
2,403
2,361
3,153
2,495
2,054
2,334
2,721
2,927
2,933
3,005
3,744
1,703
2,267
1,489
2,164
7,949
6,114
2,890
3,057
4,533
F-90
—
—
—
—
—
127
—
117
—
43
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
84
—
4
3,427
5,808
(76)
3/30/2018
2010
(184)
3/30/2018
1995
28,565
(575)
3/30/2018
2008
6,550
(1,368)
11/5/2013
1999
706
4,031
(210)
8/1/2011
1995
(495)
2/7/2014
1992
32,898
(6,218)
2/7/2014
1991
2,604
(548)
5/19/2014
1999
38,432
(10,526)
11/5/2013
2009
3,118
5,997
(721)
7/31/2013
2005
(1,254)
2/7/2014
2007
16,321
(3,299)
11/5/2013
2001
3,697
3,373
4,065
4,127
3,160
3,608
4,022
4,557
4,307
4,730
4,301
2,944
3,239
3,025
3,092
8,468
6,114
4,213
4,102
6,048
(928)
11/13/2012
2005
(912)
11/13/2012
2006
(896)
2/7/2014
2003
(735)
2/7/2014
2005
(793)
11/13/2012
2004
(707)
2/7/2014
2006
(810)
2/7/2014
2006
(869)
2/7/2014
2005
(875)
2/7/2014
2005
(840)
2/7/2014
2005
(1,065)
2/7/2014
2007
(615)
2/7/2014
2006
(876)
11/13/2012
2004
(653)
2/7/2014
2004
(836)
11/13/2012
2005
(2,892)
6/12/2014
2013
(1,693)
11/5/2013
1976
(922)
5/31/2013
2003
(908)
2/7/2014
2008
(1,390)
10/1/2013
2012
Cracker Barrel
Waynesboro
VA
—
1,536
Cracker Barrel
Woodstock
Crest Production
Services
Crozer-Keystone
Health
CVS
CVS
CVS
VA
TX
PA
AL
2,262
—
176
928
519
—
—
1,239
Pleasanton
Ridley Park
Hoover
Meridianville
AL
1,900
1,045
Phoenix
AZ
5,025
1,511
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
Phoenix
City Of
Industry
Fresno
Palmdale
Sacramento
Norwich
Dover
Auburndale
Boca Raton
Ft. Myers
Gulf Breeze
Jacksonville
Lakeland
Naples
New Port
Richey
St. Cloud
Alpharetta
Ringgold
Stockbridge
Vidalia
Northbrook
Edinburgh
Evansville
Franklin
Mishawaka
Tipton
Lawrence
Mandeville
AZ
CA
CA
CA
CA
CT
DE
FL
FL
FL
FL
FL
FL
FL
FL
FL
GA
GA
GA
GA
IL
IN
IN
IN
IN
IN
KS
LA
3,015
901
2,500
1,224
5,045
1,890
5,226
2,493
4,724
2,163
5,454
1,998
2,046
4,081
1,565
1,418
2,625
—
3,025
2,335
1,079
545
3,715
2,240
2,258
2,675
587
—
1,595
1,149
2,626
1,534
—
572
1,948
1,346
—
—
—
—
—
—
2,258
—
2,908
855
368
420
227
310
409
311
837
4,020
2,385
2,704
3,202
4,409
4,630
4,016
5,995
—
2,038
3,560
3,502
—
4,323
2,347
4,164
2,966
1,875
858
2,939
1,283
1,105
15
—
16
17
19
15
—
—
—
—
—
—
16
—
—
78
(9)
—
—
3
3,620
4,426
6,315
7,140
6,198
8,008
4,081
3,456
3,560
5,837
545
6,563
2,950
4,164
4,115
3,487
1,421
4,285
2,138
1,476
(830)
10/1/2013
2012
(819)
2/7/2014
2009
(1,352)
10/1/2013
2012
(1,420)
10/1/2013
2012
(1,232)
10/1/2013
2012
(1,838)
10/1/2013
2011
— 2/7/2014
2010
(557)
2/7/2014
1999
(1,069)
2/7/2014
2009
(1,054)
2/7/2014
2009
— 2/7/2014
2009
(1,197)
2/7/2014
2009
(721)
10/1/2013
2012
(1,149)
2/7/2014
2009
(802)
2/7/2014
2004
(603)
4/12/2013
2002
(289)
9/28/2012
1994
(868)
2/7/2014
2007
(419)
2/28/2013
1998
(374)
9/28/2012
2000
55
—
(5)
—
68
—
16
2,005
3,287
3,092
4,941
2,105
5,229
5,316
(457)
2/24/2014
1998
(830)
2/7/2014
2000
(986)
3/29/2012
1999
(1,241)
2/7/2014
2007
(514)
2/24/2014
1998
(1,206)
2/7/2014
2009
(895)
10/1/2013
2012
1,530
3,060
2,787
4,532
1,726
4,392
2,915
F-91
3,471
41,765
1,139
46,375
(9,396)
2/7/2014
1980
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
Metairie
LA
4,121
1,895
New Orleans
LA
3,719
2,439
Slidell
Hingham
Malden
Detroit
LA
MA
MA
MI
Harper Woods MI
Independence
MO
4,355
1,142
5,695
1,873
5,360
1,757
—
—
—
270
499
780
St. Joseph
MO
3,015
1,022
Southaven
Southaven
Beaufort
Eden
Kernersville
Weaverville
Cherry Hill
Edison
MS
MS
NC
NC
NC
NC
NJ
NJ
3,030
1,849
4,270
1,281
2,781
—
—
378
836
960
3,098
1,998
—
—
2,255
3,318
Lawrenceville
NJ
5,170
2,674
Albuquerque
NM
3,719
975
Albuquerque
NM
3,920
1,029
Las Cruces
NM
4,925
1,295
North Las
Vegas
Sparks
Henrietta
Mineola
Warren
NV
NV
NY
NY
OH
Oklahoma City OK
The Village
Tulsa
Freeland
Mechanicsbur
g
New Castle
OK
OK
PA
PA
PA
3,268
1,374
—
—
2,280
—
—
3,425
2,446
982
486
965
—
560
569
520
950
122
3,582
1,155
—
412
3,519
2,439
4,568
5,619
5,271
2,427
2,829
3,121
3,067
3,217
4,100
3,404
1,450
1,313
4,307
—
—
6,412
3,899
4,118
5,178
3,207
5,894
1,180
5,120
1,622
1,609
4,730
2,216
1,096
3,465
2,337
F-92
16
16
16
15
14
(5)
—
—
16
—
—
16
—
—
—
—
—
—
16
17
17
—
—
63
—
—
—
—
16
—
—
45
5,430
4,894
5,726
7,507
7,042
2,692
3,328
3,901
4,105
5,066
5,381
3,798
2,286
2,273
6,305
2,255
3,318
9,086
4,890
5,164
6,490
4,581
6,380
2,208
5,120
2,182
2,178
5,250
3,182
1,218
4,620
2,794
(1,080)
10/1/2013
2012
(749)
10/1/2013
2012
(1,401)
10/1/2013
2012
(1,723)
10/1/2013
2012
(1,616)
10/1/2013
2012
(791)
2/28/2013
1999
(923)
2/28/2013
1999
(877)
5/19/2014
2000
(941)
10/1/2013
2012
(1,044)
2/7/2014
2009
(1,303)
2/7/2014
2009
(1,044)
10/1/2013
2011
(399)
2/7/2014
1998
(359)
2/7/2014
1998
(1,268)
2/7/2014
2009
— 2/7/2014
2011
— 2/7/2014
2008
(1,733)
2/7/2014
2009
(1,196)
10/1/2013
2011
(1,263)
10/1/2013
2011
(1,588)
10/1/2013
2012
(1,094)
8/22/2012
2004
(1,633)
2/7/2014
2009
(394)
11/8/2012
1997
(1,354)
2/7/2014
2008
(440)
2/7/2014
2008
(417)
2/7/2014
1996
(1,290)
2/7/2014
2009
(681)
10/1/2013
2010
(374)
8/8/2012
2004
(1,156)
11/29/2012
2008
(786)
10/31/2012
1999
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Shippensburg
PA
1,859
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
CVS
Titusville
Towanda
Anderson
Cayce
Columbia
Greenville
Greenville
Piedmont
Jackson
Knoxville
Nashville
Converse
Dumas
Duncanville
Edinburg
Elsa
Ft . Worth
Gainesville
San Antonio
San Antonio
San Antonio
San Juan
Hardy
Lynchburg
Madison
Heights
Norfolk
Portsmouth
Roanoke
PA
PA
SC
SC
SC
SC
SC
SC
TN
TN
TN
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
VA
VA
VA
VA
VA
VA
Virginia Beach
VA
Williamsburg
VA
351
670
—
623
1,750
—
169
1,108
836
—
878
—
—
2,278
—
—
—
3,082
1,209
2,613
1,190
—
203
3,538
1,390
2,312
—
—
846
670
1,179
2,814
915
4,147
2,453
2,215
341
3,806
1,996
4,422
2,034
2,660
2,345
2,035
1,748
868
610
686
914
1,592
1,015
2,399
697
3,367
1,230
2,269
3,114
4,115
—
825
683
907
628
—
68
—
—
—
—
—
—
—
16
16
83
15
16
—
—
16
15
—
15
15
16
16
—
99
68
16
16
14
14
16
—
1,988
683
877
1,389
2,701
2,811
1,520
1,816
1,206
2,822
2,210
1,148
3,243
2,537
2,681
3,060
2,744
3,679
3,334
2,993
3,778
2,605
2,441
2,059
2,987
2,589
2,789
3,690
2,474
3,868
5,137
3,947
F-93
2,339
1,421
877
2,012
4,451
2,811
1,689
2,924
2,042
4,047
3,416
1,434
4,648
3,399
3,351
4,239
3,675
6,147
3,675
5,004
5,827
3,489
3,067
2,745
4,000
3,672
3,502
4,936
3,313
4,565
6,060
4,575
(649)
2/8/2013
2002
(389)
2/7/2014
1998
(282)
4/24/2013
2003
(367)
2/7/2014
1998
(819)
2/7/2014
2009
(882)
7/2/2013
2006
(496)
2/28/2013
1997
(517)
2/7/2014
1998
(314)
2/7/2014
1998
(866)
10/1/2013
2012
(679)
10/1/2013
2011
(389)
9/28/2012
1996
(995)
10/1/2013
2011
(779)
10/1/2013
2011
(759)
5/19/2014
2000
(877)
2/7/2014
2008
(842)
10/1/2013
2011
(1,129)
10/1/2013
2011
(882)
2/7/2014
2003
(919)
10/1/2013
2011
(1,159)
10/1/2013
2011
(800)
10/1/2013
2012
(750)
10/1/2013
2012
(656)
5/16/2013
2005
(829)
2/7/2014
1999
(707)
2/7/2014
1997
(856)
10/1/2013
2011
(1,132)
10/1/2013
2012
(760)
10/1/2013
2011
(1,186)
10/1/2013
2012
(1,575)
10/1/2013
2011
(1,078)
2/7/2014
1947
Dahl's
Des Moines
IA
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Dahl's
Dahl's
Dahl's
Des Moines
Des Moines
Johnston
Dairy Queen
Mauldin
Dairy Queen
Alto
Dairy Queen
Pineland
Dairy Queen
Silsbee
Dairy Queen
Woodville
DaVita Dialysis
Osceola
DaVita Dialysis
Casselberry
DaVita Dialysis
Palatka
DaVita Dialysis
Sanford
DaVita Dialysis
Augusta
IA
IA
IA
SC
TX
TX
TX
TX
AR
FL
FL
FL
GA
DaVita Dialysis
Douglasville
GA
DaVita Dialysis
Ft. Wayne
DaVita Dialysis
Hiawatha
IN
KS
DaVita Dialysis
New Orleans
LA
DaVita Dialysis
Allen Park
MI
DaVita Dialysis
Grand Rapids
MI
DaVita Dialysis
Clinton
DaVita Dialysis
St. Pauls
DaVita Dialysis
Akron
DaVita Dialysis
Cincinnati
MO
NC
OH
OH
DaVita Dialysis
Georgetown
OH
DaVita Dialysis
Willow Grove
PA
DaVita Dialysis
Hartsville
DaVita Dialysis
Beeville
SC
TX
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,163
2,871
3,202
133
50
40
60
98
137
392
207
530
118
119
394
69
511
209
215
128
138
312
219
125
311
126
99
1,649
11,761
6,644
—
110
120
100
65
1,232
2,320
1,173
2,793
1,818
1,858
2,963
1,302
2,237
1,885
1,794
896
1,246
1,994
878
706
3,886
1,136
1,879
DaVita Dialysis
Federal Way
WA
17,751
1,929
22,357
Denny's
Denny's
Mesa
Peoria
Denny's
Phoenix
Denny's
Scottsdale
AZ
AZ
AZ
AZ
—
—
—
—
1,089
310
825
736
891
457
1,237
491
F-94
—
—
—
—
—
—
—
—
—
—
—
—
47
—
(7)
—
—
151
—
—
—
—
55
(1)
51
—
—
—
—
—
—
—
2,812
(454)
2/7/2014
1959
14,632
(3,132)
2/7/2014
2011
9,846
(1,817)
2/7/2014
2000
133
160
160
160
163
1,369
2,712
1,380
3,323
1,983
1,977
3,350
1,371
2,748
2,245
2,009
1,024
1,384
2,306
1,152
830
4,248
1,262
1,978
— 6/27/2013
1995
(32)
6/27/2013
1995
(35)
6/27/2013
1995
(29)
6/27/2013
1995
(18)
7/31/2013
1980
(318)
3/28/2013
2009
(537)
2/7/2014
2007
(294)
6/5/2013
2013
(602)
2/7/2014
2005
(346)
2/7/2014
2000
(354)
2/7/2014
2001
(592)
2/7/2014
2008
(330)
5/30/2013
2012
(392)
9/30/2014
2010
(563)
12/31/2012
1955
(393)
2/7/2014
1997
(211)
2/26/2014
2003
(306)
8/2/2013
2006
(433)
3/31/2014
1932
(229)
3/28/2013
2008
(182)
3/28/2013
2009
(776)
2/7/2014
1989
(288)
5/30/2013
2013
(559)
12/31/2012
1979
24,286
(7,988)
11/21/2012
2000
1,980
767
2,062
1,227
(278)
7/31/2013
1994
(139)
6/27/2013
1995
(386)
7/31/2013
2005
(153)
7/31/2013
1980
Initial Costs (1)
Property
City
State
Denny's
Denny's
Tempe
Tempe
Denny's
Idaho Falls
Denny's
Merriam
Denny's
Topeka
AZ
AZ
ID
KS
KS
Denny's
Bloomington
MN
Denny's
Branson
MO
Denny's
Kansas City
MO
Denny's
N. Kansas City MO
Denny's
Denny's
Sedalia
Black
Mountain
Denny's
Mooresville
Denny's
Henrietta
Denny's
Watertown
Denny's
Fremont
Denny's
Marion
Denny's
Ontario
Denny's
Greenville
Denny's
Pasadena
Dick's Sporting
Goods
Dick's Sporting
Goods
Dick's Sporting
Goods
Dick's Sporting
Goods
Fort Gratiot
Moore
Charleston
Jackson
DJO, LLC
Vista
Dollar General
Andalusia
Dollar General
Birmingham
Dollar General
Bremen
Dollar General
Butler
MO
NC
NC
NY
NY
OH
OH
OR
SC
TX
MI
OK
SC
TN
CA
AL
AL
AL
AL
Dollar General
Childersburg
AL
Dollar General
Chunchula
Dollar General
Cullman
Dollar General
Cullman
AL
AL
AL
Encumbrances
at
December 31,
2018
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Land
378
1,567
196
390
630
1,184
620
750
630
500
210
250
361
330
320
115
240
570
500
722
1,243
3,733
1,346
3,732
317
156
59
338
328
174
331
221
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
—
—
—
—
—
—
—
623
2,411
628
1,540
1,076
1,184
2,829
1,436
1,567
1,283
715
1,091
602
1,437
1,295
505
1,307
1,124
1,816
8,465
(73)
6/27/2013
1980
(263)
7/31/2013
1995
(124)
6/27/2013
1995
(346)
6/27/2013
1995
(134)
6/27/2013
1995
— 7/31/2013
1995
(665)
6/27/2013
1995
(207)
6/27/2013
1995
(282)
6/27/2013
1995
(236)
6/27/2013
1995
(152)
6/27/2013
1995
(253)
6/27/2013
1995
(75)
7/31/2013
1970
(333)
6/27/2013
1995
(293)
6/27/2013
1995
(118)
6/27/2013
1989
(321)
6/27/2013
1995
(167)
6/27/2013
1995
(396)
6/27/2013
1995
(2,113)
2/7/2014
2010
11,669
(2,798)
2/7/2014
2012
8,758
7,452
(1,419)
2/7/2014
2005
(1,633)
2/7/2014
2007
20,600
(10,384)
8/15/2014
2006
1,240
1,038
1,076
1,431
1,314
871
1,111
1,082
(111)
7/24/2014
2014
(286)
6/6/2012
2012
(214)
9/29/2014
2014
(297)
3/28/2014
2014
(273)
2/7/2014
2013
(229)
4/26/2012
2012
(212)
3/28/2014
2013
(165)
9/26/2014
2014
245
844
432
1,150
446
—
2,209
686
937
783
505
841
241
1,107
975
390
1,067
554
1,316
7,743
10,426
5,025
6,106
16,868
914
882
1,017
1,093
986
697
780
861
F-95
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Dollar General
Frisco City
Dollar General
Gardendale
Dollar General
Hartselle
Dollar General
Headland
Dollar General
Mobile
Dollar General
Moulton
Dollar General
Mt. Vernon
Dollar General
Ohatchee
Dollar General
Phenix City
Dollar General
Phenix City
Dollar General
Red Level
Dollar General
Sylacauga
Dollar General
Tarrant
Dollar General
Troy
Dollar General
Tuscaloosa
Dollar General
Vance
Dollar General
Ash Flat
Dollar General
Batesville
Dollar General
Batesville
Dollar General
Beebe
Dollar General
Bella Vista
Dollar General
Bergman
Dollar General
Blytheville
Dollar General
Carlisle
Dollar General
Des Arc
Dollar General
Dumas
Dollar General
Flippin
Dollar General
Gassville
AL
AL
AL
AL
AL
AL
AL
AL
AL
AL
AL
AL
AL
AL
AL
AL
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
Dollar General
Green Forest
AR
Dollar General
Higden
AR
Dollar General
Lake Village
AR
Dollar General
Lepanto
AR
—
—
—
—
—
—
—
—
—
—
300
—
—
—
300
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
121
142
473
387
207
517
260
97
267
386
120
120
217
67
133
191
44
32
42
51
129
113
30
13
56
46
53
54
52
52
64
43
836
805
983
1,091
1,039
1,207
1,402
942
929
1,104
680
968
869
963
756
731
132
285
374
478
302
639
285
245
508
412
64
325
303
469
362
389
F-96
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
25
7
78
52
35
—
50
(2)
53
24
1
21
38
80
29
—
957
947
1,456
1,478
1,246
1,724
1,662
1,039
1,196
1,490
800
1,088
1,086
1,030
889
922
201
324
494
581
466
752
365
256
617
482
118
400
393
601
455
432
(231)
2/26/2014
2014
(257)
8/9/2012
2012
(273)
2/7/2014
2013
(222)
8/13/2014
2014
(284)
2/7/2014
2013
(397)
4/26/2012
2012
(386)
2/7/2014
2013
(207)
4/17/2014
2014
(252)
2/7/2014
2012
(304)
2/7/2014
2013
(233)
10/31/2011
2010
(262)
2/7/2014
2013
(294)
12/12/2011
2011
(263)
2/7/2014
2013
(256)
12/30/2011
2011
(199)
3/28/2014
2014
(43)
6/19/2012
1997
(84)
7/25/2013
1998
(112)
7/25/2013
1999
(138)
7/25/2013
1999
(103)
11/10/2011
2005
(206)
7/2/2012
2011
(85)
7/25/2013
2000
(83)
11/10/2011
2005
(153)
7/25/2013
1999
(122)
7/25/2013
2000
(21)
6/19/2012
1994
(94)
7/25/2013
1999
(104)
11/10/2011
2005
(142)
7/25/2013
1995
(108)
7/25/2013
1995
(114)
7/25/2013
1995
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Dollar General
Little Rock
Dollar General
Marvell
Dollar General
Maynard
Dollar General
Mcgehee
Dollar General
Quitman
Dollar General
Searcy
Dollar General
Tuckerman
Dollar General
White Hall
Dollar General
Wooster
Dollar General
Grand Ridge
Dollar General
Kissimmee
Dollar General
Lakeland
Dollar General
Molino
Dollar General
Palatka
Dollar General
Panama City
Dollar General
Guyton
Dollar General
Lyerly
Dollar General
Shiloh
Dollar General
Thomaston
Dollar General
Cedar Falls
Dollar General
Center Point
Dollar General
Chariton
Dollar General
Eagle Grove
Dollar General
Estherville
Dollar General
Hampton
Dollar General
Lake Mills
Dollar General
Nashua
AR
AR
AR
AR
AR
AR
AR
AR
AR
FL
FL
FL
FL
FL
FL
GA
GA
GA
GA
IA
IA
IA
IA
IA
IA
IA
IA
13
107
—
29
—
65
80
—
—
—
—
—
—
—
1
—
—
—
—
—
—
—
—
—
—
—
—
498
511
727
282
471
357
409
431
738
760
1,714
2,223
1,185
1,309
452
1,065
1,243
893
1,280
958
908
1,099
1,002
1,129
939
809
904
(121)
7/25/2013
1995
(112)
7/25/2013
1995
(203)
12/4/2012
1995
(69)
7/25/2013
1998
(122)
7/25/2013
2001
(79)
7/25/2013
1998
(88)
7/25/2013
1999
(114)
7/25/2013
1999
(206)
12/4/2012
1995
(231)
12/30/2011
2010
(268)
2/7/2014
2011
(484)
2/7/2014
2012
(345)
10/31/2011
2011
(311)
5/7/2014
2013
(92)
6/19/2012
1987
(252)
6/3/2013
2011
(267)
2/7/2014
2012
(218)
8/13/2014
2014
(268)
2/7/2014
2013
(251)
8/28/2013
2013
(240)
12/31/2012
2012
(298)
8/31/2012
2012
(265)
7/9/2013
2013
(284)
10/25/2012
2012
(250)
2/1/2012
2012
(243)
2/1/2012
2012
(244)
9/6/2012
2012
—
—
—
—
—
—
—
—
—
300
970
—
400
—
—
—
—
—
—
—
—
—
—
—
—
—
—
73
40
73
25
45
29
49
43
74
76
643
413
178
113
139
213
251
150
308
96
136
165
100
226
188
81
136
412
364
654
228
426
263
280
388
664
684
1,071
1,810
1,007
1,196
312
852
992
743
972
862
772
934
902
903
751
728
768
F-97
Property
City
State
Dollar General
Ottumwa
IA
Dollar General
Altamont
Dollar General
Carthage
Dollar General
Desoto
Dollar General
Fairbury
Dollar General
Galatia
Dollar General
Henry
Dollar General
Jacksonville
Dollar General
Jonesboro
Dollar General
Lexington
Dollar General
Mackinaw
Dollar General
Mahomet
Dollar General
Marion
Dollar General
Minonk
Dollar General
Mount Morris
Dollar General
Park Forest
Dollar General
Pittsburg
Dollar General
Rockford
Dollar General
Roodhouse
Dollar General
Savanna
Dollar General
South Pekin
Dollar General
Bainbridge
Dollar General
Medaryville
Dollar General
Monroeville
Dollar General
Porter
Dollar General
Rensselaer
Dollar General
Richland
Dollar General
Schneider
Dollar General
Auburn
Dollar General
Cottonwood
Falls
Dollar General
Erie
Dollar General
Garden City
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IN
IN
IN
IN
IN
IN
IN
KS
KS
KS
KS
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
143
211
48
138
96
87
104
145
77
100
149
292
153
56
97
390
97
464
207
273
104
131
96
112
243
111
156
124
42
89
42
136
812
844
908
784
867
1,008
934
823
309
899
1,011
877
867
1,034
877
1,036
915
597
829
1,093
933
765
914
636
995
957
887
1,010
801
802
790
771
F-98
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
27
—
—
—
—
—
—
—
—
—
—
—
—
—
—
955
1,055
956
922
963
1,095
1,038
968
386
999
1,160
1,169
1,020
1,090
974
1,426
1,012
1,088
1,036
1,366
1,037
896
1,010
748
1,238
1,068
1,043
1,134
843
891
832
907
(250)
1/31/2013
2012
(280)
3/9/2012
2012
(290)
8/31/2012
2012
(238)
3/26/2013
2013
(257)
6/7/2013
2013
(186)
7/29/2014
2014
(279)
5/23/2013
2013
(263)
8/31/2012
2012
(105)
11/10/2011
2007
(285)
9/21/2012
2012
(280)
2/25/2014
2013
(255)
8/22/2013
2013
(275)
9/24/2012
1995
(196)
7/2/2014
2014
(272)
12/17/2012
2012
(183)
8/1/2014
2013
(248)
3/31/2014
2014
(125)
6/18/2014
2014
(257)
12/31/2012
1995
(339)
12/31/2012
2012
(272)
8/14/2013
2013
(144)
9/22/2014
2010
(273)
7/31/2014
2014
(215)
12/22/2011
2011
(124)
5/29/2014
2014
(202)
7/30/2014
2014
(122)
4/30/2014
2014
(186)
9/17/2014
2014
(256)
8/31/2012
2009
(256)
8/31/2012
2009
(252)
8/31/2012
2009
(246)
8/31/2012
2010
Property
City
State
Dollar General
Harper
Dollar General
Humboldt
Dollar General
Kingman
Dollar General
Medicine
Lodge
Dollar General
Minneapolis
Dollar General
Pomona
Dollar General
Sedan
Dollar General
Syracuse
Dollar General
Berea
Dollar General
Coldiron
KS
KS
KS
KS
KS
KS
KS
KS
KY
KY
Dollar General
East Bernstadt
KY
Dollar General
Eubank
Dollar General
Monticello
Dollar General
Nancy
Dollar General
Whitesburg
Dollar General
Bastrop
Dollar General
Choudrant
Dollar General
Converse
Dollar General
Doyline
Dollar General
Gardner
Dollar General
Grambling
Dollar General
Jonesville
Dollar General
Keithville
KY
KY
KY
KY
LA
LA
LA
LA
LA
LA
LA
LA
Dollar General
Lake Charles
LA
Dollar General
Lake Charles
LA
Dollar General
Mangham
Dollar General
Dollar General
Monroe
Mount
Hermon
Dollar General
New Iberia
Dollar General
Patterson
Dollar General
Sarepta
LA
LA
LA
LA
LA
LA
Dollar General
St. Martinville
LA
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
300
—
—
—
—
—
—
—
—
300
400
400
—
—
—
—
91
44
142
40
43
42
42
43
138
187
141
137
251
81
211
148
83
84
88
138
597
103
83
102
406
40
97
94
315
259
131
175
818
828
804
765
816
796
792
817
781
747
799
775
867
733
845
838
745
756
793
784
719
929
750
919
770
759
869
842
736
1,035
743
1,028
F-99
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
909
872
946
805
859
838
834
860
919
934
940
912
1,118
814
1,056
986
828
840
881
922
1,316
1,032
833
1,021
1,176
799
966
936
1,051
1,294
874
1,203
(261)
8/31/2012
2009
(264)
8/31/2012
2010
(257)
8/31/2012
2010
(244)
8/31/2012
2010
(261)
8/31/2012
2010
(254)
8/31/2012
2010
(253)
8/31/2012
2009
(261)
8/31/2012
2010
(233)
5/30/2013
2012
(223)
5/30/2013
2013
(238)
5/30/2013
2012
(231)
5/30/2013
2013
(229)
4/25/2014
2012
(241)
4/26/2012
2011
(252)
5/30/2013
2012
(246)
7/1/2013
2013
(249)
2/6/2012
2011
(240)
9/26/2012
2012
(248)
11/27/2012
2012
(260)
3/8/2012
2012
(208)
2/7/2014
2012
(295)
9/27/2012
2012
(242)
7/26/2012
2012
(306)
2/29/2012
2012
(213)
2/7/2014
2012
(253)
2/6/2012
2011
(290)
2/6/2012
2011
(281)
2/6/2012
2009
(242)
4/26/2012
2011
(340)
4/26/2012
2011
(238)
8/9/2012
2011
(284)
2/7/2014
2012
Property
City
State
Dollar General
Thibodaux
LA
Dollar General
West Monroe
LA
Dollar General
Zachary
Dollar General
Adams
Dollar General
Bangor
Dollar General
Bronson
Dollar General
Cadillac
Dollar General
Camden
Dollar General
Carleton
Dollar General
Covert
Dollar General
Durand
Dollar General
East Jordan
Dollar General
Flint
Dollar General
Flint
Dollar General
Gaylord
Dollar General
Iron River
Dollar General
Manchester
Dollar General
Manistique
Dollar General
Melvindale
LA
MA
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
Dollar General
Mount Morris
MI
Dollar General
Negaunee
Dollar General
Rapid City
Dollar General
Romulus
Dollar General
Roscommon
Dollar General
Wakefield
Dollar General
Albert Lea
Dollar General
Annandale
Dollar General
Barnesville
Dollar General
Cohasset
Dollar General
Ely
Dollar General
Hawley
Dollar General
Melrose
MI
MI
MI
MI
MI
MN
MN
MN
MN
MN
MN
MN
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
234
153
248
254
173
97
187
138
222
37
181
125
83
91
172
86
213
155
242
110
87
179
199
87
88
223
212
86
87
174
89
96
1,146
869
743
1,016
691
436
747
781
666
704
726
709
743
820
687
777
853
876
967
988
779
716
794
781
794
551
848
841
964
944
803
863
F-100
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
161
—
—
—
—
—
—
1,380
1,022
991
1,270
864
533
934
919
888
741
907
834
826
911
859
863
1,066
1,031
1,209
1,098
866
895
993
868
882
935
1,060
927
1,051
1,118
892
959
(318)
2/7/2014
2012
(288)
3/9/2012
1995
(244)
4/26/2012
2011
(291)
10/10/2013
2012
(222)
7/10/2012
2012
(211)
8/6/2014
1965
(247)
3/16/2012
2012
(238)
2/27/2013
2013
(221)
3/16/2012
2011
(225)
8/30/2012
2012
(237)
5/18/2012
2012
(228)
7/10/2012
2012
(243)
5/18/2012
2012
(258)
10/31/2012
2012
(221)
7/10/2012
2012
(248)
8/30/2012
2012
(261)
2/27/2013
2013
(268)
2/27/2013
2012
(314)
6/26/2012
2012
(302)
2/27/2013
2012
(249)
8/30/2012
2012
(219)
2/27/2013
2012
(243)
2/27/2013
2011
(250)
8/30/2012
2012
(246)
12/19/2012
2012
(115)
5/30/2014
1960
(247)
8/2/2013
2013
(231)
2/26/2014
2014
(250)
5/2/2014
2013
(128)
4/30/2014
2014
(230)
10/16/2013
2013
(268)
12/17/2012
2012
Property
City
Dollar General
Milaca
State
MN
Dollar General
Montgomery
MN
Dollar General
Olivia
MN
Dollar General
Pequot Lakes
MN
Dollar General
Richmond
Dollar General
Roseau
Dollar General
Rush City
Dollar General
Springfield
Dollar General
Staples
Dollar General
Virginia
MN
MN
MN
MN
MN
MN
Dollar General
Appleton City
MO
Dollar General
Ash Grove
Dollar General
Ashland
Dollar General
Aurora
Dollar General
Auxvasse
Dollar General
Belton
Dollar General
Berkeley
Dollar General
Bernie
Dollar General
Billings
Dollar General
Bloomfield
Dollar General
Cardwell
Dollar General
Carterville
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
Dollar General
Caruthersville
MO
Dollar General
Caulfield
Dollar General
Clarkton
Dollar General
Clever
Dollar General
Conway
Dollar General
De Soto
Dollar General
Diamond
Dollar General
Doolittle
MO
MO
MO
MO
MO
MO
MO
Dollar General
Eagle Rock
MO
Dollar General
Edina
MO
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
300
—
—
—
—
—
—
—
—
—
—
—
300
—
—
—
—
—
102
87
98
155
96
143
126
88
150
147
22
35
70
98
72
105
132
35
139
23
89
10
98
139
19
136
37
101
44
137
133
127
916
783
884
880
836
808
716
795
848
831
124
315
398
881
650
948
748
314
790
215
805
192
878
789
354
542
694
912
175
778
786
722
F-101
—
—
—
—
—
—
—
—
—
—
—
—
135
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,018
(265)
9/24/2013
2013
870
982
(243)
12/17/2012
2012
(272)
1/31/2013
2012
1,035
(257)
8/22/2013
2013
932
951
842
883
998
978
146
350
603
979
722
(230)
2/20/2014
2014
(232)
10/30/2013
2013
(230)
7/25/2012
2012
(247)
12/26/2012
2012
(245)
9/4/2013
2013
(256)
1/14/2013
2012
(42)
11/10/2011
2004
(107)
11/10/2011
2006
(139)
11/10/2011
2006
(269)
2/28/2013
2013
(221)
11/22/2011
2011
1,053
(303)
8/3/2012
2012
880
349
929
238
894
202
976
928
373
678
731
(236)
10/9/2012
2012
(107)
11/10/2011
2007
(226)
10/17/2013
2013
(72)
11/10/2011
2005
(257)
8/24/2012
2012
(65)
11/10/2011
2004
(279)
9/27/2012
2012
(245)
12/31/2012
2012
(121)
11/10/2011
2007
(176)
6/19/2012
2010
(236)
11/22/2011
2011
1,013
(279)
2/14/2013
2013
219
915
919
849
(60)
11/10/2011
2005
(227)
8/2/2013
2013
(216)
2/26/2014
2014
(229)
9/13/2012
2012
Property
City
State
Dollar General
Eldon
Dollar General
Ellsinore
Dollar General
Gower
Dollar General
Hallsville
MO
MO
MO
MO
Dollar General
Hawk Point
MO
Dollar General
Humansville
MO
Dollar General
Jennings
Dollar General
Joplin
MO
MO
Dollar General
Kansas City
MO
Dollar General
King City
Dollar General
Laurie
Dollar General
Lawson
Dollar General
Lebanon
Dollar General
Lebanon
Dollar General
Lexington
Dollar General
Licking
Dollar General
Lilbourn
Dollar General
Lonedell
Dollar General
Malden
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
Dollar General
Marble Hill
MO
Dollar General
Marionville
MO
Dollar General
Marthasville
MO
Dollar General
Maysville
Dollar General
Morehouse
MO
MO
Dollar General
New Haven
MO
Dollar General
Oak Grove
Dollar General
Oran
Dollar General
Osceola
Dollar General
Ozark
Dollar General
Ozark
Dollar General
Pacific
Dollar General
Palmyra
MO
MO
MO
MO
MO
MO
MO
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
300
—
—
—
—
—
300
—
—
—
—
—
300
300
—
—
—
—
—
—
—
—
—
52
30
118
29
177
69
445
144
313
33
102
29
177
278
149
76
62
208
108
104
89
41
107
87
176
27
83
93
190
149
151
40
986
579
668
263
709
277
826
816
731
625
918
162
708
835
846
688
554
833
974
935
797
782
607
783
702
106
747
835
758
842
853
225
F-102
—
—
—
(6)
—
—
—
—
—
—
—
6
—
—
—
—
—
—
—
—
—
—
—
—
—
64
—
—
—
—
—
(3)
1,038
(301)
2/14/2013
2013
609
786
286
886
346
1,271
960
1,044
658
1,020
197
885
(197)
11/10/2011
2010
(214)
8/31/2012
2012
(88)
11/10/2011
2004
(226)
8/24/2012
2012
(90)
6/19/2012
2007
(266)
7/13/2012
2012
(232)
11/12/2013
2013
(232)
9/21/2012
2012
(213)
11/22/2011
2010
(261)
11/15/2013
2013
(55)
11/10/2011
2003
(224)
9/24/2012
2012
1,113
(265)
9/21/2012
2012
995
764
616
1,041
1,082
1,039
886
823
714
870
878
197
830
928
948
991
1,004
262
(244)
9/13/2013
2013
(234)
11/22/2011
2010
(189)
11/10/2011
2010
(251)
4/26/2013
2013
(284)
8/2/2013
2013
(297)
9/11/2012
2012
(251)
10/31/2012
2012
(261)
2/1/2012
2011
(208)
10/31/2011
2010
(248)
9/7/2012
2012
(231)
4/27/2012
2012
(37)
6/19/2012
1999
(247)
3/30/2012
2012
(255)
2/19/2013
2012
(249)
4/27/2012
2012
(267)
9/24/2012
2012
(277)
6/6/2012
2012
(73)
6/19/2012
2003
Property
City
Dollar General
Plattsburg
Dollar General
Qulin
State
MO
MO
Dollar General
Robertsville
MO
Dollar General
Rocky Mount
MO
Dollar General
Rolla
Dollar General
Savannah
Dollar General
Sedadia
Dollar General
Senath
Dollar General
Seneca
Dollar General
Shelbina
Dollar General
Sikeston
Dollar General
Sikeston
Dollar General
Springfield
Dollar General
St. Clair
Dollar General
St. James
Dollar General
St. Louis
Dollar General
St. Louis
Dollar General
St. Louis
Dollar General
St. Louis
Dollar General
Stanberry
Dollar General
Steele
Dollar General
Strafford
Dollar General
Vienna
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
MO
Dollar General
West Plains
MO
Dollar General
Willow
Springs
Dollar General
Windsor
Dollar General
Edwards
Dollar General
Greenville
Dollar General
Hickory
Dollar General
Jackson
Dollar General
Meridian
Dollar General
Meridian
MO
MO
MS
MS
MS
MS
MS
MS
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
400
—
—
—
—
—
300
—
—
—
—
—
—
300
300
—
—
—
—
44
30
131
88
209
270
273
61
47
101
56
144
378
220
81
372
260
215
445
111
31
51
78
90
24
86
75
82
77
198
178
40
843
573
744
789
835
811
637
552
189
911
1,056
819
702
879
244
692
606
1,219
1,039
629
598
471
704
769
213
829
671
739
692
793
713
754
F-103
—
(8)
—
—
—
—
—
—
180
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
—
—
—
—
—
—
—
887
595
875
877
1,044
1,081
910
613
416
1,012
1,112
963
1,080
1,099
325
1,064
866
1,434
1,484
740
629
522
782
859
260
915
746
821
769
991
891
794
(269)
8/9/2012
2012
(194)
11/10/2011
2009
(238)
8/24/2012
2011
(252)
8/31/2012
2012
(243)
8/21/2013
2013
(236)
8/23/2013
2013
(202)
9/7/2012
2012
(179)
6/19/2012
2010
(73)
6/19/2012
1962
(272)
5/22/2013
2013
(352)
2/24/2012
2011
(262)
8/24/2012
2012
(228)
6/14/2012
2012
(297)
12/30/2011
1995
(79)
6/19/2012
1999
(221)
8/31/2012
2012
(192)
9/26/2012
2012
(367)
4/30/2013
1995
(322)
12/14/2012
2012
(214)
11/22/2011
2010
(204)
11/10/2011
2009
(158)
11/10/2011
2009
(235)
2/24/2012
2011
(211)
2/20/2014
2014
(69)
6/19/2012
2002
(228)
2/20/2014
2014
(227)
12/30/2011
2011
(250)
12/30/2011
2011
(223)
7/2/2012
2011
(252)
9/27/2012
2011
(226)
9/13/2012
2011
(239)
9/13/2012
2011
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Dollar General
Moorhead
Dollar General
Natchez
MS
MS
—
—
107
166
606
664
—
—
713
830
(198)
5/1/2012
2011
(215)
6/12/2012
2012
F-104
Property
City
State
Dollar General
Soso
Dollar General
Stonewall
Dollar General
Stringer
MS
MS
MS
Dollar General
Walnut Grove
MS
Dollar General
Edenton
Dollar General
Fayetteville
NC
NC
Dollar General
Hendersonville
NC
Dollar General
Hickory
Dollar General
Morganton
Dollar General
Ocean Isle
Beach
Dollar General
Tryon
Dollar General
Vass
NC
NC
NC
NC
NC
Dollar General
Farmington
NM
Dollar General
Farmington
NM
Dollar General
Modena
Dollar General
Fairfield
Dollar General
Forest
Dollar General
Gratis
Dollar General
Greenfield
Dollar General
Hicksville
Dollar General
Loudonville
Dollar General
Lowell
Dollar General
Lucasville
NY
OH
OH
OH
OH
OH
OH
OH
OH
Dollar General
New Charlisle
OH
Dollar General
New
Matamoras
Dollar General
Payne
Dollar General
Pemberville
OH
OH
OH
Dollar General
Pleasant City
OH
Dollar General
Powhatan
Point
Dollar General
Sandusky
Dollar General
Toledo
OH
OH
OH
Dollar General
Wheelersburg
OH
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
300
—
300
—
—
—
400
—
300
—
—
—
—
300
—
400
—
—
—
—
—
300
300
—
300
—
—
—
—
116
116
116
71
240
216
360
89
472
341
139
226
269
224
249
131
76
161
110
156
236
157
223
215
123
81
146
131
138
210
252
395
658
655
655
641
1,025
647
1,034
804
1,108
633
789
528
807
898
996
1,272
681
1,042
986
1,490
945
1,114
893
860
696
729
1,059
740
784
1,700
1,149
1,132
F-105
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
774
771
771
712
1,265
863
1,394
893
1,580
974
928
754
1,076
1,122
1,245
1,403
757
1,203
1,096
1,646
1,181
1,271
1,116
1,075
819
810
(216)
4/12/2012
2011
(211)
7/2/2012
2011
(211)
7/2/2012
2011
(217)
12/30/2011
2011
(283)
2/28/2014
2013
(216)
2/6/2012
2011
(282)
2/7/2014
2013
(257)
8/13/2012
2012
(306)
2/7/2014
2013
(211)
2/6/2012
2011
(252)
8/13/2012
2012
(176)
2/6/2012
2011
(256)
9/6/2012
2012
(264)
7/11/2013
2013
(286)
10/10/2013
2012
(330)
2/7/2014
2013
(234)
10/31/2011
2010
(288)
2/18/2014
2013
(329)
2/23/2012
2011
(389)
2/7/2014
2012
(307)
6/6/2012
2012
(292)
2/7/2014
2012
(292)
5/16/2012
2012
(277)
7/10/2012
2012
(239)
10/31/2011
2010
(250)
10/31/2011
2010
1,205
(282)
2/7/2014
2012
871
922
1,910
1,401
1,527
(254)
10/31/2011
2010
(230)
7/2/2013
2014
(443)
2/7/2014
2012
(303)
2/7/2014
2012
(311)
2/25/2014
1925
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Dollar General
Broken Bow
OK
Dollar General
Calera
Dollar General
Commerce
Dollar General
Hartshorne
Dollar General
Lexington
Dollar General
Maud
Dollar General
Maysville
Dollar General
Ponca City
OK
OK
OK
OK
OK
OK
OK
Dollar General
Rush Spring
OK
Dollar General
Sand Springs
OK
Dollar General
Sand Springs
OK
Dollar General
Sand Springs
OK
Dollar General
Tahlequah
Dollar General
Wagoner
Dollar General
Pleasantville
Dollar General
Sykesville
Dollar General
Wattsburg
Dollar General
Holly Hill
Dollar General
West Union
Dollar General
Doyle
Dollar General
Manchester
OK
OK
PA
PA
PA
SC
SC
TN
TN
Dollar General
Mcminnville
TN
Dollar General
Pleasant Hill
TN
300
Dollar General
Adkins
Dollar General
Amarillo
Dollar General
Amarillo
Dollar General
Amarillo
Dollar General
Avinger
Dollar General
Beeville
Dollar General
Belton
Dollar General
Belton
Dollar General
Blessing
TX
TX
TX
TX
TX
TX
TX
TX
TX
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
331
136
38
100
85
76
41
145
87
143
43
198
123
31
163
68
96
1,983
259
—
—
—
—
46
75
114
120
39
157
97
153
198
44
90
89
145
83
—
—
(6)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,325
770
341
898
761
688
785
1,161
779
811
819
791
1,101
1,076
941
1,075
1,031
2,333
868
679
646
679
747
889
877
866
794
830
810
804
821
745
F-106
1,656
(309)
5/19/2014
2012
906
373
998
846
764
826
(246)
8/31/2012
2010
(115)
11/10/2011
2006
(287)
8/31/2012
2010
(243)
8/31/2012
2010
(220)
8/31/2012
2010
(251)
8/31/2012
2010
1,306
(302)
2/7/2014
2012
866
954
862
989
1,224
1,107
1,104
1,143
1,127
2,592
914
754
760
799
786
1,046
974
1,019
992
874
900
893
966
828
(249)
8/31/2012
2010
(234)
9/3/2013
2013
(237)
9/3/2013
2013
(229)
9/3/2013
2012
(285)
2/7/2014
2012
(280)
2/7/2014
2012
(254)
3/24/2014
2013
(289)
3/24/2014
2013
(277)
3/24/2014
2014
(707)
3/6/2013
2013
(255)
7/3/2013
2011
(217)
8/22/2012
2012
(208)
7/26/2012
2012
(219)
7/12/2012
2012
(253)
12/30/2011
2011
(276)
12/31/2012
2012
(255)
8/13/2013
2013
(252)
8/2/2013
2013
(233)
7/11/2013
2013
(242)
8/8/2013
2013
(253)
11/19/2012
2012
(246)
2/28/2013
2013
(260)
9/13/2012
2012
(231)
12/18/2012
2012
Property
City
State
Dollar General
Boling
Dollar General
Brookeland
Dollar General
Bryan
Dollar General
Bryan
Dollar General
Bryan
Dollar General
Buchanan
Dam
TX
TX
TX
TX
TX
TX
Dollar General
Canyon Lake
TX
Dollar General
Cedar Creek
Dollar General
Como
TX
TX
Dollar General
Corpus Christi
TX
Dollar General
Diana
Dollar General
Donna
Dollar General
Donna
Dollar General
Donna
Dollar General
Edinburg
Dollar General
Edinburg
Dollar General
Elmendorf
Dollar General
Ganado
Dollar General
Gladewater
Dollar General
Gordonville
Dollar General
Kyle
Dollar General
Kyle
Dollar General
La Marque
Dollar General
Lacy
Lakeview
Dollar General
Laredo
Dollar General
Littleriver
Acdmy
Dollar General
Lubbock
Dollar General
Lubbock
Dollar General
Lubbock
Dollar General
Lubbock
Dollar General
Lyford
Dollar General
Lytle
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
300
—
92
93
148
193
185
145
149
291
76
270
186
136
200
145
136
102
94
95
184
38
132
101
102
146
253
122
267
199
148
41
80
243
831
840
840
772
740
820
843
680
683
809
743
768
799
820
769
914
847
857
736
717
747
910
917
826
758
693
801
796
841
825
724
971
F-107
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
923
933
988
965
925
965
992
971
759
(242)
8/13/2013
2013
(245)
8/15/2013
2013
(266)
9/14/2012
2012
(245)
9/14/2012
2012
(236)
8/31/2012
2009
(260)
9/28/2012
2012
(265)
10/12/2012
2012
(213)
11/16/2012
2012
(225)
4/20/2012
2012
1,079
(251)
12/26/2012
2012
929
904
999
965
905
(217)
8/27/2013
2013
(244)
9/11/2012
2012
(252)
10/12/2012
2012
(252)
1/31/2013
2012
(244)
9/7/2012
2012
1,016
(268)
7/16/2013
2013
941
952
920
755
879
1,011
1,019
972
1,011
815
1,068
995
989
866
804
(267)
10/23/2012
2012
(250)
8/13/2013
2013
(235)
8/31/2012
2009
(236)
4/20/2012
2012
(237)
9/26/2012
2012
(257)
12/6/2013
2013
(293)
8/31/2012
2010
(258)
11/16/2012
2012
(244)
7/31/2012
2012
(228)
4/27/2012
2012
(256)
8/31/2012
2010
(232)
8/28/2013
2013
(251)
5/16/2013
2013
(226)
2/20/2014
2014
(245)
12/30/2011
2010
1,214
(278)
10/30/2013
2013
Property
City
State
Dollar General
Mercedes
Dollar General
Mission
Dollar General
Moody
Dollar General
Mount
Pleasant
TX
TX
TX
TX
Dollar General
New Braunfels
TX
Dollar General
New Braunfels
TX
Dollar General
New Braunfels
TX
Dollar General
Orange
Dollar General
Poteet
Dollar General
Presidio
Dollar General
Progreso
Dollar General
Dollar General
Rio Grande
City
Rio Grande
City
Dollar General
Roma
Dollar General
San Antonio
Dollar General
San Antonio
Dollar General
San Antonio
Dollar General
San Antonio
Dollar General
San Antonio
Dollar General
San Antonio
Dollar General
San Antonio
Dollar General
San Benito
Dollar General
San Juan
Dollar General
San Leon
Dollar General
Silsbee
Dollar General
Skidmore
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
Dollar General
Sullivan City
TX
Dollar General
Texarkana
Dollar General
Troy
Dollar General
Tyler
Dollar General
Tyler
Dollar General
Victoria
TX
TX
TX
TX
TX
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
400
—
400
300
—
500
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
215
158
41
214
205
95
156
277
96
72
169
137
163
253
252
222
163
271
239
220
333
202
169
87
43
90
165
136
93
219
602
91
859
894
781
858
818
855
883
1,150
864
1,370
957
779
652
1,010
756
888
926
812
956
880
776
807
956
786
810
811
876
772
841
875
956
817
F-108
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,074
1,052
822
1,072
1,023
950
1,039
1,427
960
1,442
1,126
916
815
1,263
1,008
1,110
1,089
1,083
1,195
1,100
1,109
1,009
1,125
873
853
901
(250)
8/2/2013
2013
(271)
3/27/2013
2013
(231)
6/11/2013
2013
(274)
8/31/2012
2009
(261)
8/31/2012
2012
(261)
2/14/2013
2013
(253)
10/30/2013
2013
(290)
2/7/2014
2012
(296)
10/31/2011
2010
(415)
3/28/2013
2013
(328)
10/31/2011
2010
(267)
10/31/2011
2010
(218)
2/1/2012
2011
(347)
10/31/2011
2010
(238)
10/22/2012
2012
(280)
10/22/2012
2012
(283)
2/14/2013
2013
(242)
5/23/2013
2013
(290)
3/11/2013
2013
(259)
7/9/2013
2013
(226)
8/13/2013
2013
(235)
8/23/2013
2013
(272)
11/15/2013
2013
(249)
9/25/2012
2012
(261)
7/6/2012
2012
(248)
2/14/2013
2013
1,041
(240)
2/26/2014
2014
908
934
1,094
1,558
908
(221)
10/25/2013
2013
(267)
9/12/2012
2012
(280)
8/31/2012
2010
(266)
2/7/2014
2013
(252)
1/31/2013
2013
Property
City
State
Dollar General
Vidor
Dollar General
Waco
Dollar General
Weslaco
Dollar General
Weslaco
Dollar General
Burkeville
Dollar General
Danville
Dollar General
Hopewell
Dollar General
Hot Springs
Dollar General
Richmond
Dollar General
Mellen
Dollar General
Minong
TX
TX
TX
TX
VA
VA
VA
VA
VA
WI
WI
Dollar General
Solon Springs
WI
Dollar General
Chelyan
Dollar General
Cowen
Dollar General
Elkview
Dollar General
Mcmechen
Dollar General
Millwood
Dollar General
Oceana
WV
WV
WV
WV
WV
WV
Dollar Tree
Huntsville
AL
Dollar Tree
Beverly Hills
FL
Dollar Tree
Bonita Springs
FL
Dollar Tree
Chiefland
Dollar Tree
Fort Myers
FL
FL
Dollar Tree
Ormond Beach
FL
Dollar Tree
Oviedo
Dollar Tree
Des Moines
Dollar Tree
Lombard
FL
IA
IL
Dollar Tree
Baton Rouge
LA
Dollar Tree
Burton
Dollar Tree
Winona
MI
MS
Dollar Tree
Hoosick Falls
NY
Dollar Tree
Caldwell
TX
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
300
500
400
400
300
300
300
—
—
—
—
—
—
—
—
—
—
973
—
—
—
—
—
866
—
—
—
—
192
215
205
160
155
584
283
242
79
38
76
273
196
274
91
98
317
476
409
672
322
189
573
469
152
1,008
377
131
146
181
138
1,182
767
862
822
906
621
713
661
726
711
727
685
1,092
783
823
819
881
1,023
1,092
965
918
1,123
1,344
860
848
863
543
716
1,164
585
724
552
F-109
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
—
—
—
—
—
1,182
959
1,077
1,027
1,066
776
1,297
944
968
790
765
761
1,365
979
1,097
910
979
1,340
1,568
1,374
1,590
1,445
1,533
1,433
1,317
1,021
1,551
1,093
1,295
731
905
(298)
2/7/2014
2012
(245)
8/31/2012
2012
(273)
9/24/2012
2012
(236)
10/16/2013
2013
(296)
5/8/2012
2012
(207)
2/6/2012
2011
(238)
2/6/2012
2011
(220)
2/6/2012
2011
(242)
2/6/2012
2011
(241)
12/30/2011
2011
(246)
12/30/2011
2011
(232)
12/30/2011
2011
(316)
9/27/2013
2013
(241)
1/16/2013
2012
(240)
8/2/2013
2013
(252)
1/9/2013
2012
(259)
7/2/2013
2013
(192)
11/20/2014
2014
(199)
8/29/2014
2014
(182)
8/28/2014
2013
(261)
2/7/2014
2013
(302)
3/31/2014
2013
(353)
2/7/2014
2002
(255)
6/4/2013
2008
(234)
2/19/2014
2013
(252)
8/30/2013
1995
(153)
12/12/2013
1967
(202)
2/7/2014
2003
(317)
2/7/2014
2003
(188)
7/31/2012
2012
(218)
4/26/2013
2013
387
1,077
(180)
5/29/2012
2012
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
811
1,099
1,088
857
230
3,254
3,208
3,671
4,067
846
—
—
—
—
—
4,065
4,307
4,759
4,924
1,076
(4)
12/13/2018
2018
(68)
4/27/2018
2018
(159)
10/20/2017
2017
(123)
12/14/2017
2017
(248)
6/27/2013
1995
26,437
3,520
39,639
(6,281)
36,878
(3,778)
11/5/2013
2006
—
—
—
—
1,480
9,117
314
10,911
(379)
11/17/2017
2017
357
190
127
436
724
982
—
—
—
793
914
(122)
7/31/2013
1990
(212)
6/27/2013
1995
1,109
(199)
6/25/2014
2014
Property
City
State
Duluth Trading Co
South Portland ME
Duluth Trading Co West Fargo
Duluth Trading Co Avon
Duluth Trading Co Waukesha
Dunkin Donuts/
Baskin-Robbins
Dearborn
Heights
Earhart Corporate
Center
Ann Arbor
ND
OH
WI
MI
MI
Eastchase Central
Montgomery
AL
Eegee's
Tucson
Einstein Bros.
Bagels
Elite Production
Services
Dearborn
Cuero
AZ
MI
TX
EMC Corporation
Bedford
MA
50,684
16,594
75,137
203
91,934
(17,067)
2/7/2014
2001
Energy
Maintenance
Services US
Pasadena
Evans Exchange
Evans
TX
GA
—
393
6,420
3,452
2,878
9,821
—
18
3,271
(583)
6/12/2014
2011
13,291
(2,530)
2/7/2014
2009
Experian
Schaumburg
IL
Express Energy
Services
Pleasanton
TX
Express Scripts
St. Louis
MO
Exterran Energy
Solutions
Fort Worth
Eyemart Express
Port Arthur
Family Dollar
Bessemer
Family Dollar
Camden
Family Dollar
Grove Hill
Family Dollar
Hayneville
Family Dollar
Hoover
Family Dollar
Huntsville
Family Dollar
Jemison
Family Dollar
Marion
Family Dollar
Millbrook
TX
TX
AL
AL
AL
AL
AL
AL
AL
AL
AL
Family Dollar
Montgomery
AL
Family Dollar
Montgomery
AL
Family Dollar
Wilmer
Family Dollar
El Dorado
Family Dollar
El Dorado
AL
AR
AR
—
—
—
—
5,935
26,003
(5,777)
26,161
(3,003)
2/7/2014
1986
413
5,706
1,360
5,541
32,333
5,704
—
—
—
5,954
(1,125)
6/12/2014
2012
38,039
(11,521)
1/25/2012
2011
7,064
(1,164)
9/5/2014
2011
8,077
3,331
14,992
152
18,475
(3,619)
2/7/2014
2008
—
—
—
—
—
—
757
—
—
—
959
—
—
663
295
137
144
172
368
628
143
247
316
218
533
221
151
49
1,301
851
741
722
1,153
924
997
780
1,052
847
936
791
806
1,003
F-110
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,596
(292)
6/16/2014
2014
988
885
894
1,521
1,552
1,140
1,027
1,368
1,065
1,469
1,012
957
1,052
(206)
5/29/2014
2014
(139)
7/24/2014
2013
(189)
5/7/2014
2013
(218)
8/29/2014
2014
(154)
1/12/2015
2014
(273)
2/7/2014
2011
(148)
7/30/2014
2014
(197)
8/28/2014
2013
(160)
8/28/2014
2013
(261)
2/7/2014
2010
(190)
5/29/2014
2014
(175)
8/28/2014
1988
(257)
2/7/2014
2002
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
571
467
—
974
—
603
—
—
—
—
—
—
—
247
155
125
123
603
454
126
98
302
110
400
302
303
416
845
758
629
1,015
882
313
785
895
571
772
584
281
712
1,229
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,092
(226)
2/7/2014
2011
913
754
1,138
1,485
767
911
993
873
882
984
583
1,015
1,645
(195)
2/7/2014
2002
(161)
2/7/2014
2002
(190)
8/28/2014
2013
(248)
2/7/2014
2002
(98)
2/7/2014
2003
(214)
2/7/2014
2000
(168)
8/28/2014
2013
(164)
2/7/2014
2001
(169)
8/28/2014
2001
(168)
2/7/2014
2004
(88)
2/7/2014
2003
(153)
8/28/2014
2004
(226)
8/28/2014
2013
Property
City
State
Family Dollar
Hot Springs
Family Dollar
Jacksonville
Family Dollar
Little Rock
Family Dollar
Ash Fork
Family Dollar
Avondale
AR
AR
AR
AZ
AZ
Family Dollar
Casa Grande
AZ
Family Dollar
Coolidge
Family Dollar
Duncan
AZ
AZ
Family Dollar
Fort Mohave
AZ
Family Dollar
Golden Valley
AZ
Family Dollar
Guadalupe
AZ
Family Dollar
Mohave Valley
AZ
Family Dollar
Phoenix
Family Dollar
Phoenix
AZ
AZ
F-111
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Family Dollar
Phoenix
Family Dollar
Phoenix
Family Dollar
Dacano
Family Dollar
Fort Lupton
Family Dollar
Rangely
Family Dollar
New Britain
Family Dollar
Wilmington
Family Dollar
Altha
Family Dollar
Anthony
Family Dollar
Apopka
Family Dollar
Auburndale
Family Dollar
Belleview
Family Dollar
Bristol
Family Dollar
Bunnell
Family Dollar
Cape Coral
Family Dollar
Citra
Family Dollar
Clearwater
Family Dollar
Deland
Family Dollar
Deltona
Family Dollar
Deltona
Family Dollar
Fort Meade
Family Dollar
Fountain
Family Dollar
Gainesville
Family Dollar
Graceville
Family Dollar
Jacksonville
Family Dollar
Jacksonville
Family Dollar
Lake Alfred
Family Dollar
Lake City
Family Dollar
Lake
Panasoffkee
Family Dollar
Lakeland
Family Dollar
Largo
Family Dollar
Middleburg
AZ
AZ
CO
CO
CO
CT
DE
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
—
1,109
1,040
757
916
—
—
—
—
—
1,127
—
—
631
—
—
—
—
1,057
686
1,042
417
—
1,002
—
1,028
789
—
622
—
732
—
—
504
155
154
66
484
540
126
242
518
314
332
202
188
675
47
425
492
171
206
211
202
423
367
271
545
484
186
237
339
844
274
767
1,079
959
1,180
593
1,280
1,218
727
1,037
1,402
951
829
727
936
1,190
1,038
1,006
1,293
1,074
1,578
606
825
1,263
810
1,121
1,173
1,006
872
696
785
962
822
F-112
—
—
—
—
—
26
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(16)
—
—
—
—
—
—
—
—
—
1,876
1,583
1,114
1,334
659
1,790
1,758
853
1,279
1,920
1,265
1,161
929
1,124
1,865
1,085
1,431
1,785
1,245
1,784
817
1,027
1,670
1,177
1,392
1,718
1,490
1,058
933
1,124
1,806
1,096
(228)
2/7/2014
2003
(298)
2/7/2014
2003
(267)
2/7/2014
2003
(326)
2/7/2014
1961
(194)
5/4/2012
2010
(231)
10/14/2014
2013
(199)
4/21/2015
2015
(206)
2/7/2014
2011
(200)
10/30/2014
2014
(355)
2/7/2014
2011
(177)
8/28/2014
2013
(219)
2/7/2014
2013
(208)
2/7/2014
2011
(178)
8/28/2014
2013
(322)
3/5/2014
2013
(192)
8/28/2014
2013
(183)
8/22/2014
2014
(333)
2/7/2014
2011
(262)
2/7/2014
2004
(397)
2/7/2014
2011
(144)
2/7/2014
2000
(157)
8/28/2014
2014
(322)
2/7/2014
2011
(217)
4/30/2014
2013
(278)
2/7/2014
2011
(303)
2/7/2014
2008
(151)
12/23/2014
2014
(224)
2/7/2014
2011
(189)
3/25/2014
2013
(217)
2/7/2014
2003
(266)
2/7/2014
2013
(243)
6/4/2013
2008
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Family Dollar
Milton
Family Dollar
Mulberry
Family Dollar
Ocala
Family Dollar
Ocala
Family Dollar
Ocala
Family Dollar
Okeechobee
Family Dollar
Orlando
Family Dollar
Orlando
FL
FL
FL
FL
FL
FL
FL
FL
Family Dollar
Ormond Beach
FL
Family Dollar
Palatka
FL
644
—
—
—
968
894
—
—
—
—
Family Dollar
Pembroke Park
FL
1,141
Family Dollar
Pensacola
Family Dollar
Pensacola
Family Dollar
Plant City
Family Dollar
Plant City
Family Dollar
Sebring
Family Dollar
St Petersburg
Family Dollar
Tallahassee
Family Dollar
Tampa
Family Dollar
Tampa
Family Dollar
Tampa
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
Family Dollar
Winter Haven
FL
Family Dollar
Zellwood
Family Dollar
Abbeville
Family Dollar
Acworth
Family Dollar
Alma
Family Dollar
Claxton
Family Dollar
Cordele
Family Dollar
Fayetteville
Family Dollar
Helena
FL
GA
GA
GA
GA
GA
GA
GA
Family Dollar
Jeffersonville
GA
Family Dollar
Lenox
GA
—
559
—
1,173
—
1,093
—
1,005
1,168
—
—
—
—
—
—
—
—
—
—
—
—
544
131
108
344
554
655
349
291
675
316
656
69
146
279
712
492
690
632
531
773
552
534
272
163
489
79
322
136
217
242
153
90
683
1,156
816
1,251
984
580
1,294
1,286
1,152
1,054
944
1,085
907
1,040
1,113
1,063
1,000
871
1,062
1,057
792
942
1,005
768
901
954
665
1,049
1,203
790
926
809
F-113
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,227
1,287
924
1,595
1,538
1,235
1,643
1,577
1,827
1,370
1,600
1,154
1,053
1,319
1,825
1,555
1,690
1,503
1,593
1,830
1,344
1,476
1,277
931
1,390
1,033
987
1,185
1,420
1,032
1,079
899
(163)
2/7/2014
2010
(214)
8/28/2014
2013
(161)
8/28/2014
2005
(316)
2/7/2014
2006
(266)
2/7/2014
2011
(187)
2/7/2014
2011
(236)
8/28/2014
2014
(235)
8/28/2014
2013
(294)
2/7/2014
2011
(281)
4/25/2014
2014
(284)
2/7/2014
2006
(198)
8/28/2014
2013
(218)
2/7/2014
2003
(264)
2/7/2014
2004
(307)
2/7/2014
2005
(208)
6/24/2014
2014
(279)
2/7/2014
2011
(249)
2/7/2014
2011
(287)
2/7/2014
2008
(291)
2/7/2014
2011
(212)
2/7/2014
2013
(117)
8/8/2014
2014
(183)
8/22/2014
2014
(152)
5/29/2014
2014
(172)
8/28/2014
2013
(177)
8/28/2014
1982
(175)
5/14/2014
2014
(204)
4/30/2014
2014
(208)
11/20/2014
2014
(218)
2/19/2014
2013
(171)
8/15/2014
2014
(253)
11/9/2012
2012
Property
City
State
Family Dollar
Lindale
Family Dollar
Macon
Family Dollar
Macon
Family Dollar
Marietta
Family Dollar
Marietta
Family Dollar
Omega
Family Dollar
Richland
Family Dollar
Riverdale
Family Dollar
Vienna
Family Dollar
Des Moines
Family Dollar
Fort Dodge
Family Dollar
Arco
Family Dollar
Homedale
Family Dollar
Kimberly
GA
GA
GA
GA
GA
GA
GA
GA
GA
IA
IA
ID
ID
ID
Family Dollar
Mount Vernon
IL
Family Dollar
Pulaski
Family Dollar
University
Park
Family Dollar
Brookston
Family Dollar
Indianapolis
Family Dollar
Lake Village
Family Dollar
Mitchell
Family Dollar
Princeton
Family Dollar
Seymour
Family Dollar
Terre Haute
Family Dollar
Greensburg
Family Dollar
Kansas City
Family Dollar
Kansas City
Family Dollar
Kansas City
Family Dollar
Topeka
Family Dollar
Wichita
IL
IL
IN
IN
IN
IN
IN
IN
IN
KS
KS
KS
KS
KS
KS
Family Dollar
Bowling Green KY
Family Dollar
Carlisle
KY
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
673
—
—
—
—
—
—
822
408
—
973
—
—
—
—
—
613
—
—
526
—
394
—
—
—
982
—
—
—
—
227
300
230
366
582
167
125
310
62
411
152
76
59
219
117
31
295
126
375
154
101
300
238
235
80
290
352
154
177
216
334
157
966
893
851
749
1,126
716
859
1,188
721
871
449
684
1,387
657
1,050
588
688
715
707
752
1,119
486
764
427
718
1,170
1,026
1,367
1,405
1,035
951
871
F-114
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(5)
—
—
—
—
—
—
1,193
1,193
1,081
1,115
1,708
883
984
1,498
783
1,282
601
760
1,446
876
1,167
619
983
841
1,082
906
1,220
786
1,002
662
798
1,455
1,378
1,521
1,582
1,251
1,285
1,028
(184)
8/28/2014
2014
(169)
8/28/2014
2013
(230)
2/7/2014
2011
(207)
2/19/2014
2013
(210)
8/28/2014
2013
(194)
3/12/2014
2013
(162)
8/28/2014
2014
(213)
9/26/2014
2014
(196)
3/12/2014
2013
(241)
2/7/2014
2003
(131)
2/7/2014
2002
(217)
9/18/2012
2012
(376)
2/7/2014
2006
(197)
4/10/2013
2013
(309)
7/11/2013
2012
(182)
12/31/2012
2012
(197)
10/29/2013
2013
(225)
10/1/2012
2012
(175)
2/7/2014
2003
(393)
4/30/2014
2013
(214)
8/28/2014
2014
(137)
2/7/2014
2000
(213)
2/7/2014
2003
(115)
2/7/2014
2011
(208)
9/9/2013
2012
(225)
11/6/2014
1995
(200)
12/18/2014
1995
(361)
2/7/2014
2002
(383)
2/7/2014
2004
(191)
8/28/2014
2013
(178)
8/28/2014
2013
(166)
8/28/2014
2014
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Family Dollar
Garrison
Family Dollar
Rockholds
Family Dollar
Abbeville
Family Dollar
Alexandria
Family Dollar
Arcadia
Family Dollar
Avondale
Family Dollar
Chalmette
Family Dollar
Farmerville
Family Dollar
Kentwood
KY
KY
LA
LA
LA
LA
LA
LA
LA
—
—
740
458
—
—
—
722
683
Family Dollar
New Orleans
LA
1,146
Family Dollar
Shreveport
Family Dollar
Tickfaw
Family Dollar
Westwego
Family Dollar
Lynn
Family Dollar
Barryton
Family Dollar
Birch Run
Family Dollar
Brooklyn
Family Dollar
Detroit
Family Dollar
Detroit
Family Dollar
Detroit
Family Dollar
Flint
Family Dollar
Hudson
Family Dollar
Jackson
Family Dollar
Kentwood
Family Dollar
Monroe
Family Dollar
Newaygo
Family Dollar
Pontiac
Family Dollar
Remus
Family Dollar
Saginaw
Family Dollar
Tustin
Family Dollar
Crosby
Family Dollar
Ely
LA
LA
LA
MA
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MN
MN
892
—
—
1,222
—
—
—
—
—
—
—
833
—
739
—
689
962
—
—
—
—
—
134
121
141
168
51
381
751
110
117
547
177
181
332
400
32
81
150
130
106
110
162
108
93
389
243
317
136
49
164
33
49
231
737
988
949
579
704
1,255
615
968
877
1,252
1,177
543
1,052
1,547
599
729
634
1,169
956
1,051
1,027
1,020
525
919
1,061
677
1,249
992
1,086
633
928
1,008
F-115
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
86
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
871
1,109
1,090
747
755
1,636
1,366
1,078
994
1,799
1,354
724
1,384
1,947
631
896
784
1,299
1,062
1,161
1,189
1,128
618
1,308
1,304
994
1,385
1,041
1,250
666
977
(214)
2/20/2014
2012
(190)
8/28/2014
2014
(263)
2/7/2014
2005
(155)
2/7/2014
2005
(207)
2/20/2014
2010
(234)
8/28/2014
2013
(201)
5/3/2012
2011
(263)
2/7/2014
2003
(244)
2/7/2014
2003
(337)
2/7/2014
2005
(317)
2/7/2014
2005
(180)
3/30/2012
2011
(201)
8/28/2014
2013
(407)
2/7/2014
2003
(186)
12/18/2012
2012
(227)
7/11/2013
1950
(176)
2/7/2014
2002
(365)
11/27/2012
2011
(285)
5/2/2013
1964
(205)
8/28/2014
2005
(306)
2/26/2014
2014
(295)
2/7/2014
2005
(152)
9/12/2013
2007
(227)
2/7/2014
2001
(200)
8/28/2014
2013
(197)
2/7/2014
2002
(347)
2/7/2014
2003
(289)
1/2/2014
2012
(304)
2/7/2014
2003
(196)
12/18/2012
1995
(273)
7/11/2013
1985
1,239
(286)
2/27/2014
2014
Property
City
State
Family Dollar
Intrnatnl Falls
MN
Family Dollar
St. Peter
Family Dollar
Berkeley
MN
MO
Family Dollar
Kansas City
MO
Family Dollar
Kansas City
MO
Family Dollar
Kansas City
MO
Family Dollar
Marble Hill
MO
Family Dollar
Raytown
Family Dollar
St Louis
Family Dollar
St Louis
Family Dollar
St Louis
Family Dollar
St. Louis
Family Dollar
Bassfield
Family Dollar
Biloxi
Family Dollar
Canton
Family Dollar
Carriere
Family Dollar
D'Iberville
Family Dollar
Drew
Family Dollar
Greenville
Family Dollar
Gulfport
Family Dollar
Gulfport
Family Dollar
Gulfport
Family Dollar
Gulfport
Family Dollar
Hattiesburg
Family Dollar
Horn Lake
Family Dollar
Kiln
Family Dollar
Laurel
Family Dollar
Natchez
Family Dollar
Okolona
Family Dollar
Pearl
MO
MO
MO
MO
MO
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
MS
Family Dollar
Philadelphia
MS
Family Dollar
Anaconda
MT
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
409
969
683
1,211
970
—
—
—
972
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
93
179
277
119
142
38
415
168
215
258
445
96
310
210
200
241
11
125
209
270
218
312
225
225
106
225
289
64
342
53
164
608
566
1,391
812
1,705
1,338
719
—
671
1,357
1,310
1,038
752
575
1,142
599
561
1,039
872
626
629
654
1,237
674
676
650
723
749
578
1,001
897
1,058
F-116
—
—
—
—
—
—
—
1,287
(4)
—
—
—
—
—
—
—
1
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
640
659
1,570
1,089
1,824
1,480
757
1,702
835
1,572
1,568
1,483
848
885
(176)
9/30/2013
1966
(146)
2/7/2014
1960
(357)
2/7/2014
2003
(215)
2/7/2014
2003
(458)
2/7/2014
2004
(357)
2/7/2014
2004
(210)
8/29/2013
2013
(203)
2/20/2015
2014
(219)
4/2/2012
2006
(351)
2/7/2014
2003
(339)
2/7/2014
2003
(327)
10/23/2012
2012
(217)
2/19/2014
2013
(190)
3/30/2012
2012
1,352
(213)
8/28/2014
2013
799
803
(199)
3/30/2012
2012
(183)
5/21/2012
2012
1,050
(228)
8/28/2014
1989
997
835
899
872
(238)
2/7/2014
2011
(204)
5/21/2012
2012
(200)
9/20/2012
2012
(204)
11/15/2012
2012
1,549
(338)
2/7/2014
2007
899
901
756
948
1,038
642
1,343
950
1,222
(207)
1/30/2013
2012
(216)
8/22/2012
2012
(203)
11/14/2012
2012
(209)
2/19/2014
2013
(184)
8/28/2014
1982
(186)
7/31/2012
2012
(186)
8/28/2014
2013
(171)
8/28/2014
2014
(207)
9/30/2014
2014
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
246
250
132
251
322
291
352
490
412
225
267
215
221
243
151
146
164
428
185
—
—
—
932
767
694
985
1,066
992
781
682
785
832
802
603
1,013
894
900
935
773
953
1,064
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,019
1,203
1,196
1,183
1,089
985
1,337
1,556
1,404
1,006
949
1,000
1,053
1,045
754
1,159
1,058
1,328
1,120
(182)
1/8/2015
2014
(134)
8/20/2014
2014
(247)
3/19/2015
1995
(180)
8/28/2014
2014
(141)
8/28/2014
2013
(132)
8/28/2014
2012
(262)
4/15/2014
2014
(198)
7/2/2014
2014
(186)
6/25/2014
2014
(186)
5/29/2014
2014
(185)
3/14/2014
2013
(149)
8/28/2014
2014
(158)
8/28/2014
2013
(152)
8/28/2014
2013
(174)
9/11/2013
1995
(195)
6/20/2014
2014
(165)
9/19/2014
2014
(240)
4/17/2014
2014
(222)
5/29/2014
2014
Property
City
Family Dollar
Ennis
State
MT
Family Dollar
Three Forks
MT
Family Dollar
Whitehall
MT
Family Dollar
Asheboro
Family Dollar
Boiling
Springs
Family Dollar
Burlington
Family Dollar
Charlotte
Family Dollar
Charlotte
Family Dollar
Charlotte
Family Dollar
Ellerbe
Family Dollar
Fayetteville
Family Dollar
Hickory
Family Dollar
Hiddenite
Family Dollar
Liberty
Family Dollar
Lumberton
Family Dollar
Lumberton
Family Dollar
Parkton
Family Dollar
Raeford
Family Dollar
Raeford
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
F-117
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Family Dollar
Troy
Family Dollar
Fort Yates
Family Dollar
New Town
Family Dollar
Rolla
Family Dollar
Madison
Family Dollar
Omaha
Family Dollar
Omaha
Family Dollar
Rushville
Family Dollar
Lancaster
Family Dollar
Stratford
NC
ND
ND
ND
NE
NE
NE
NE
NH
NJ
—
—
—
—
—
—
—
—
—
—
Family Dollar
Alamorgordo
NM
524
Family Dollar
Belen
Family Dollar
Carrizozo
Family Dollar
Chimayo
Family Dollar
Cloudcroft
Family Dollar
Clovis
Family Dollar
Gallup
Family Dollar
Hernandez
Family Dollar
Logan
Family Dollar
Lovington
NM
NM
NM
NM
NM
NM
NM
NM
NM
Family Dollar
Mountainair
NM
Family Dollar
Roswell
Family Dollar
Springer
Family Dollar
Velarde
Family Dollar
Waterflow
Family Dollar
Battle
Mountain
Family Dollar
Carlin
NM
NM
NM
NM
NV
NV
Family Dollar
Cold Springs
NV
Family Dollar
Hawthorne
Family Dollar
Las Vegas
Family Dollar
Lovelock
NV
NV
NV
Family Dollar
Silver Spring
NV
—
—
—
—
657
—
1,152
—
—
—
766
—
—
—
—
—
—
—
876
—
—
341
126
105
83
37
196
141
125
456
378
161
350
250
158
184
119
221
140
80
54
84
140
106
183
175
116
99
217
191
689
185
202
621
715
942
749
703
1,334
1,159
499
1,294
1,511
675
—
—
632
1,344
854
1,366
1,434
—
722
752
953
—
—
—
1,431
895
869
764
612
742
808
F-118
—
—
24
—
—
—
3
—
(2)
(174)
—
969
1,113
(15)
—
—
—
—
1,147
—
—
—
1,199
1,122
1,294
—
—
—
—
—
—
—
962
841
(128)
6/17/2014
2014
(240)
1/31/2012
2010
1,071
(318)
1/31/2012
2011
832
740
1,530
1,303
624
1,748
1,715
836
1,319
1,363
775
1,528
973
1,587
1,574
1,227
776
836
1,093
1,305
1,305
1,469
1,547
994
1,086
955
1,301
927
1,010
(252)
1/31/2012
2010
(238)
12/30/2011
2011
(292)
12/19/2014
1995
(241)
12/18/2014
1995
(150)
4/26/2013
2007
(231)
12/12/2014
1989
(226)
12/31/2014
2014
(175)
2/7/2014
2001
(168)
5/29/2015
2014
(174)
3/6/2015
2014
(192)
1/30/2013
2009
(269)
12/18/2014
1995
(231)
2/7/2014
2004
(386)
2/7/2014
2007
(404)
2/7/2014
2008
(171)
5/29/2015
2015
(137)
6/30/2014
2014
(242)
7/16/2012
2011
(263)
2/7/2014
2004
(212)
2/11/2015
2014
(172)
2/25/2015
2015
(137)
2/5/2015
2014
(387)
2/7/2014
2009
(259)
9/13/2013
2012
(251)
9/13/2013
2013
(248)
6/1/2012
2012
(193)
2/7/2014
2005
(242)
5/4/2012
2012
(256)
9/21/2012
2012
Property
City
State
Family Dollar
Wells
Family Dollar
Altona
Family Dollar
Chateaugay
Family Dollar
Cincinnatus
Family Dollar
Penn Yan
Family Dollar
Sodus
Family Dollar
Wolcott
Family Dollar
Bethel
Family Dollar
Canal
Winchester
Family Dollar
Canton
Family Dollar
Cincinnati
Family Dollar
Cleveland
Family Dollar
Cleveland
Family Dollar
Cortland
Family Dollar
Dayton
Family Dollar
Dayton
Family Dollar
Hamilton
NV
NY
NY
NY
NY
NY
NY
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
Family Dollar
Jackson Center
OH
Family Dollar
Loveland
Family Dollar
Middleton
Family Dollar
Toledo
Family Dollar
Toledo
Family Dollar
Warren
Family Dollar
Durant
Family Dollar
El Reno
Family Dollar
Geary
Family Dollar
Keota
Family Dollar
Kingston
OH
OH
OH
OH
OH
OK
OK
OK
OK
OK
Family Dollar
Oklahoma City OK
Family Dollar
Oklahoma City OK
Family Dollar
Porum
Family Dollar
Poteau
OK
OK
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
525
—
—
852
—
460
—
1,079
1,370
—
—
—
—
—
798
660
—
—
—
—
—
—
—
—
—
—
—
—
84
94
133
287
23
54
197
139
218
93
221
39
216
188
107
129
131
97
179
137
306
226
170
164
225
167
279
28
403
390
18
310
755
923
910
862
760
1,441
1,193
1,099
1,116
766
1,055
1,614
1,818
963
899
618
1,215
764
986
869
917
905
681
1,223
—
882
872
660
—
990
—
—
F-119
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(2)
—
968
—
—
—
988
—
995
924
839
1,017
1,043
1,149
783
1,495
1,390
1,238
1,334
859
1,276
1,653
2,034
1,151
1,006
747
1,346
861
1,165
1,006
1,223
1,131
849
1,387
1,193
1,049
1,151
688
1,391
1,380
1,013
1,234
(246)
5/11/2012
2011
(265)
2/21/2014
2014
(261)
2/20/2014
2014
(243)
12/30/2013
2013
(203)
2/7/2014
2003
(378)
5/7/2014
2013
(211)
3/25/2015
2014
(306)
2/7/2014
2005
(207)
8/28/2014
2012
(198)
2/7/2014
2002
(211)
8/28/2014
2001
(425)
2/7/2014
2003
(493)
2/7/2014
1994
(184)
8/28/2014
2013
(212)
8/28/2014
1940
(136)
8/28/2014
2002
(222)
8/28/2014
2013
(146)
4/28/2014
1989
(273)
2/7/2014
2002
(235)
2/7/2014
2001
(280)
2/25/2013
2012
(266)
7/11/2013
1942
(216)
9/11/2012
2012
(239)
8/28/2014
2000
(197)
3/2/2015
1995
(128)
10/14/2015
2015
(168)
10/16/2014
2014
(165)
2/7/2014
2000
(146)
5/15/2015
2015
(187)
8/28/2014
2013
(153)
11/5/2015
2015
(146)
8/7/2015
2015
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Family Dollar
Stilwell
Family Dollar
Texhoma
Family Dollar
Tulsa
Family Dollar
Broad Top
Family Dollar
Abbeville
Family Dollar
Columbia
Family Dollar
Columbia
Family Dollar
Estill
Family Dollar
Lancaster
Family Dollar
Manning
Family Dollar
Mccormick
Family Dollar
Newberry
Family Dollar
North
Family Dollar
St. Matthews
Family Dollar
Woodruff
Family Dollar
Blackhawk
Family Dollar
Custer
Family Dollar
Lemmon
Family Dollar
Martin
Family Dollar
Mclaughlin
Family Dollar
Parker
Family Dollar
Tyndall
Family Dollar
Harrison
Family Dollar
Lexington
Family Dollar
Memphis
Family Dollar
Memphis
Family Dollar
Memphis
Family Dollar
Memphis
Family Dollar
Nashville
Family Dollar
Piney Flats
Family Dollar
Alton
Family Dollar
Arlington
OK
OK
OK
PA
SC
SC
SC
SC
SC
SC
SC
SC
SC
SC
SC
SD
SD
SD
SD
SD
SD
SD
TN
TN
TN
TN
TN
TN
TN
TN
TX
TX
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
638
1,251
973
—
—
—
—
40
150
220
196
146
429
489
244
249
313
167
231
193
175
229
115
32
140
85
35
117
72
74
323
248
215
376
336
334
200
134
300
768
—
878
954
734
719
943
757
725
960
791
935
979
828
1,125
585
617
—
764
—
828
—
420
838
1,039
811
1,508
1,156
1,275
953
908
—
F-120
—
912
—
—
—
(35)
—
—
—
—
—
—
—
—
—
—
—
1,021
—
1,092
1
1,072
—
—
—
—
—
—
—
—
—
1,058
808
1,062
1,098
1,150
880
1,113
1,432
1,001
974
1,273
958
1,166
1,172
1,003
1,354
700
649
1,161
849
1,127
946
1,144
494
1,161
1,287
1,026
1,884
1,492
1,609
1,153
1,042
1,358
(258)
1/6/2012
2011
(120)
4/15/2015
2015
(283)
7/30/2012
2012
(181)
5/30/2014
2013
(148)
5/23/2014
2014
(195)
3/12/2014
2014
(154)
2/3/2015
2013
(150)
6/4/2014
2014
(140)
8/28/2014
2013
(178)
9/30/2014
2014
(211)
4/30/2014
2014
(252)
3/27/2014
2013
(161)
2/23/2015
2013
(155)
9/3/2014
2014
(207)
8/28/2014
2010
(117)
8/6/2014
2006
(183)
6/14/2013
1995
(144)
5/1/2015
2014
(257)
1/31/2012
2010
(141)
5/12/2015
2015
(182)
10/10/2014
2014
(170)
3/31/2015
2015
(123)
7/23/2013
2006
(159)
8/28/2014
2013
(277)
2/7/2014
2004
(216)
2/7/2014
2003
(411)
2/7/2014
2005
(312)
2/7/2014
2003
(259)
8/28/2014
1976
(180)
8/28/2014
2014
(170)
8/28/2014
2013
(145)
12/4/2015
1995
Property
City
State
Family Dollar
Arlington
Family Dollar
Avinger
TX
TX
Family Dollar
Balch Springs
TX
Family Dollar
Beaumont
Family Dollar
Beaumont
Family Dollar
Beaumont
Family Dollar
Blooming
Grove
Family Dollar
Brazoria
Family Dollar
Broaddus
Family Dollar
Centerville
Family Dollar
Chireno
Family Dollar
Clarendon
TX
TX
TX
TX
TX
TX
TX
TX
TX
Family Dollar
Cockrell Hill
TX
Family Dollar
Converse
Family Dollar
Dallas
Family Dollar
Dickinson
Family Dollar
Donna
Family Dollar
Eagle Lake
Family Dollar
Etoile
Family Dollar
Floydada
Family Dollar
Fort Worth
Family Dollar
Fort Worth
Family Dollar
Houston
Family Dollar
Houston
Family Dollar
Houston
Family Dollar
Houston
Family Dollar
Houston
Family Dollar
Houston
Family Dollar
Houston
Family Dollar
Industry
Family Dollar
Jacksonville
Family Dollar
Kerens
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
654
—
—
—
—
—
—
970
409
627
681
—
—
—
—
—
—
—
886
—
—
—
911
425
40
318
215
235
225
70
216
75
226
50
83
369
148
292
182
194
100
45
36
276
350
174
297
565
138
128
277
920
1,355
—
—
—
190
195
73
—
761
—
1,511
810
806
753
966
—
679
943
749
1,156
469
676
876
855
566
850
681
935
—
696
1,081
1,223
1,052
769
1,144
95
—
1,003
658
F-121
1,112
—
1,209
—
—
—
—
—
922
—
—
—
—
—
—
—
—
100
—
—
—
1,015
—
—
—
—
—
—
—
902
—
—
1,537
801
1,527
1,726
1,045
1,031
823
1,182
997
905
993
832
(63)
2/13/2015
2014
(240)
10/22/2012
2012
(160)
4/10/2015
2015
(365)
2/7/2014
2003
(214)
2/7/2014
2003
(211)
2/7/2014
2003
(144)
8/28/2014
2014
(252)
2/7/2014
2002
(177)
2/6/2015
1995
(196)
9/10/2013
2013
(293)
12/10/2012
2012
(216)
9/17/2013
2013
1,525
(308)
2/7/2014
2002
617
968
1,058
1,049
766
895
717
1,211
1,365
870
1,378
1,788
1,190
897
1,421
1,450
1,092
1,198
731
(127)
2/7/2014
2003
(188)
2/7/2014
2004
(232)
2/7/2014
2010
(164)
8/28/2014
2013
(193)
7/6/2012
2012
(248)
8/6/2013
2013
(231)
12/30/2011
2010
(136)
8/21/2015
1995
(122)
11/3/2014
2015
(209)
4/26/2013
1995
(284)
2/7/2014
2002
(327)
2/7/2014
2009
(274)
2/7/2014
2002
(187)
2/7/2014
2002
(299)
2/7/2014
2002
(44)
2/7/2014
1981
(155)
1/5/2015
2014
(279)
3/21/2014
2014
(220)
2/29/2012
2011
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Family Dollar
La Pryor
Family Dollar
Leander
Family Dollar
Lovelady
Family Dollar
Lufkin
Family Dollar
Marshall
Family Dollar
Mcallen
Family Dollar
Mcallen
Family Dollar
Mesquite
Family Dollar
Mesquite
Family Dollar
Mesquite
Family Dollar
Mexia
Family Dollar
Noonday
Family Dollar
Oakhurst
Family Dollar
Oakwood
Family Dollar
Ore City
Family Dollar
Palestine
Family Dollar
Pharr
Family Dollar
Plano
Family Dollar
Port Arthur
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
Family Dollar
Raymondville
TX
Family Dollar
Refugio
Family Dollar
Rio Grande
Family Dollar
Robstown
Family Dollar
Royse City
Family Dollar
Sabinal
Family Dollar
San Angelo
Family Dollar
San Antonio
Family Dollar
San Antonio
Family Dollar
San Antonio
Family Dollar
San Antonio
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
—
557
—
1,153
—
—
857
—
—
—
—
625
—
—
—
671
969
—
1,044
542
—
—
550
972
—
891
800
864
598
506
74
355
82
198
85
445
219
426
1,414
1,460
112
103
36
133
27
120
219
468
178
117
110
133
44
411
35
232
198
299
260
211
—
—
—
—
—
—
—
1,146
(8)
(184)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
817
489
740
1,600
662
896
1,093
—
—
—
495
895
683
752
744
914
1,253
869
1,452
707
982
1,284
852
1,078
952
1,118
1,018
1,039
653
567
F-122
891
844
822
1,798
747
1,341
1,312
1,572
1,406
1,276
607
998
719
885
771
1,034
1,472
1,337
1,630
824
1,092
1,417
896
1,489
987
1,350
1,216
1,338
913
778
(154)
8/28/2014
2013
(136)
2/7/2014
2004
(224)
3/27/2013
1995
(416)
2/7/2014
2004
(182)
2/7/2014
2001
(168)
8/28/2014
2013
(289)
2/7/2014
2004
(178)
5/29/2015
1995
(165)
9/1/2015
2015
(167)
7/9/2015
2015
(137)
2/7/2014
2000
(236)
2/7/2014
2004
(212)
12/12/2012
2012
(214)
11/20/2013
2013
(142)
8/28/2014
2013
(245)
2/7/2014
2000
(332)
2/7/2014
2002
(253)
8/1/2013
2013
(376)
2/7/2014
2005
(188)
2/7/2014
2002
(183)
8/28/2014
2013
(338)
2/7/2014
2003
(216)
2/7/2014
2003
(288)
2/7/2014
2002
(176)
8/28/2014
2013
(300)
2/7/2014
2011
(270)
2/7/2014
2002
(274)
2/7/2014
2004
(176)
2/7/2014
2004
(153)
2/7/2014
2004
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
214
117
132
55
51
131
49
132
441
125
218
107
104
131
430
142
204
148
304
92
128
161
90
43
166
45
44
72
Family Dollar
San Antonio
Family Dollar
San Antonio
Family Dollar
San Benito
Family Dollar
San Diego
Family Dollar
Seadrift
Family Dollar
Somerville
Family Dollar
Sonora
Family Dollar
Tyler
Family Dollar
Victoria
Family Dollar
Waco
Family Dollar
Weatherford
Family Dollar
Beaver
Family Dollar
Bristol
Family Dollar
Gretna
Family Dollar
Hopewell
Family Dollar
Petersburg
Family Dollar
Stuart
Family Dollar
Wirtz
Family Dollar
Green Bay
Family Dollar
Markesan
Family Dollar
Mayville
Family Dollar
Milwaukee
Family Dollar
Thorp
Family Dollar
Webster
Family Dollar
Alderson
Family Dollar
Kemmerer
Family Dollar
Mountain
View
Family Dollar
Torrington
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
UT
VA
VA
VA
VA
VA
VA
WI
WI
WI
WI
WI
WI
WV
WY
WY
WY
Family Fare
Supermarket
Battle Creek
MI
Farmers Insurance Mercer Island
WA
Fazoli's
Carmel
FedEx
Homewood
IN
AL
728
1,143
598
602
—
—
—
416
—
440
—
646
608
—
—
948
—
—
—
—
—
970
—
—
—
—
—
—
—
—
—
—
911
1,619
772
855
832
743
548
554
144
544
—
—
—
—
—
—
—
—
—
—
1,057
(5)
913
837
744
987
1,209
750
919
1,072
831
1,023
1,397
810
808
663
853
838
645
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,125
1,736
904
910
883
874
597
686
585
669
1,270
1,020
941
875
1,417
1,351
954
1,067
1,376
923
1,151
1,558
900
851
829
898
882
717
(240)
2/7/2014
2004
(425)
2/7/2014
2004
(206)
2/7/2014
2004
(226)
2/7/2014
2004
(156)
8/28/2014
2013
(230)
12/31/2012
1995
(124)
8/28/2014
2001
(146)
2/7/2014
2003
(48)
2/7/2014
2003
(146)
2/7/2014
2001
(220)
10/10/2014
2014
(244)
2/7/2014
2007
(234)
2/7/2014
1978
(219)
7/2/2013
2012
(279)
2/26/2014
2014
(338)
2/7/2014
2003
(104)
4/18/2014
2013
(174)
8/28/2014
2013
(290)
2/7/2014
2011
(234)
12/12/2013
2013
(287)
2/26/2014
2014
(362)
2/7/2014
2003
(236)
8/30/2013
2013
(237)
7/11/2013
2013
(195)
7/11/2013
2012
(261)
2/22/2013
2013
(242)
9/13/2013
2013
(192)
5/9/2013
1995
9,343
(2,159)
2/7/2014
2010
52,495
(7,038)
11/5/2013
1982
949
1,301
(146)
7/31/2013
1986
(231)
6/27/2013
2000
1,393
7,950
24,285
28,210
427
522
522
779
F-123
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
Tempe
Yuma
Chico
Commerce
City
Melbourne
Des Moines
Ottumwa
Waterloo
Effingham
Kankakee
Quincy
Evansville
Kokomo
Lafayette
AZ
AZ
CA
CO
FL
IA
IA
IA
IL
IL
IL
IN
IN
IN
Independence
KS
Hazard
London
KY
KY
Bossier City
LA
Grand Rapids
MI
Port Huron
MI
Roseville
Mccomb
Butte
Greenville
Belmont
Wendover
Blauvelt
Marcy
Plattsburg
Lebanon
Northwood
Tulsa
MN
MS
MT
NC
NH
NV
NY
NY
NY
OH
OH
OK
15,373
(2,826)
6/25/2014
2004
2,076
3,214
(736)
10/17/2012
2011
(967)
11/9/2012
2006
33,173
(9,770)
3/20/2012
2007
1,592
2,277
5,506
3,034
(461)
7/26/2013
2001
(468)
4/18/2013
1986
(1,182)
10/30/2012
2012
(963)
3/22/2013
2006
16,736
(3,449)
2/7/2014
2008
1,474
5,483
3,326
7,169
4,896
2,280
4,300
3,501
6,518
8,986
1,246
9,744
6,028
(430)
5/31/2012
2003
(1,150)
9/28/2012
2012
(972)
5/31/2012
1998
(1,631)
3/16/2012
2012
(923)
2/7/2014
2008
(757)
10/30/2012
2012
(1,441)
9/28/2012
2012
(985)
10/11/2013
2013
(1,507)
2/7/2014
2009
(2,603)
6/14/2012
2012
(368)
5/31/2013
2003
(2,871)
11/30/2012
2012
(966)
2/7/2014
2008
2,914
12,300
—
308
2,076
2,776
6,556
26,224
6,712
1,875
14,827
—
—
—
—
—
—
—
—
159
733
205
152
—
—
—
—
2,126
—
—
—
—
—
—
—
—
—
—
—
—
195
371
665
186
768
114
215
350
295
1,797
125
1,462
548
403
363
265
262
159
—
130
393
—
183
—
34
176
2,552
2,749
1,433
1,361
2,882
1,103
2,101
3,011
2,661
—
3,541
3,442
4,128
2,166
4,085
3,151
6,223
7,189
1,121
8,282
—
—
—
—
—
—
—
—
3,268
2,212
6,903
2,386
1,483
7,653
4,049
12,105
(3,251)
9/27/2011
2001
—
—
—
—
—
—
—
486
—
7,266
2,651
1,745
(2,584)
2/22/2012
2006
(908)
12/29/2011
1991
(500)
2/25/2013
2012
41,199
(9,861)
4/5/2012
2012
6,134
4,783
9,944
6,657
9,153
(1,946)
9/5/2014
2006
(1,044)
2/7/2014
2008
(2,849)
8/26/2013
2013
(1,282)
2/7/2014
1998
(3,255)
2/22/2012
2008
26,100
14,420
26,779
—
2,614
339
801
—
1,492
2,410
—
674
458
5,795
3,982
8,452
5,497
8,695
F-124
Initial Costs (1)
Encumbrances
at
December 31,
2018
State
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
1,476
18,054
555
549
20,085
(5,684)
3/31/2014
1999
32,729
(10,380)
8/15/2013
2013
2,741
4,584
OK
PA
SD
TN
TN
TX
WA
WA
WI
FL
FL
Property
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
FedEx
City
Tulsa
Tinicum
Rapid City
Blountville
Humboldt
Bryan
Omak
Wenatchee
Menomonee
Falls
Parkersburg
WV
Filibertos
Payson
AZ
Fire Mountain
Buffet
Fire Mountain
Buffet
Summerville
SC
Charleston
WV
First Bank
Lake Mary
First Bank
Fleming's
Steakhouse
Pinellas Park
Englewood
CO
Floor & Decor
Overland Park
KS
Floor & Decor
Mcdonough
GA
Floor & Decor
Oklahoma City OK
Floor & Decor
Riverdale
Folsom Gateway
II
Folsom
Food Lion
Moyock
Forum Energy
Technology
Forum Energy
Technology
Guthrie
Gainesville
Fresenius Medical
Care
Fairhope
Fresenius Medical
Care
Foley
Fresenius Medical
Care
Mobile
Fresenius Medical
Care
Defuniak
Springs
Fresenius Medical
Care
Aurora
Fresenius Medical
Care
Fresenius Medical
Care
Chicago
Waukegan
Fresenius Medical
Care
Peru
UT
CA
NC
OK
TX
AL
AL
AL
FL
IL
IL
IL
IN
4,215
14,555
829
(719)
1,308
(1,241)
1,305
(1,228)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
305
562
239
1,422
252
266
193
679
245
243
1,230
630
1,152
2,943
1,859
3,069
2,920
32,180
5,056
4,543
4,763
1,425
2,393
3,671
1,504
1,470
3,055
5,832
7,711
6,666
5,734
21,600
10,314
27,983
—
—
—
—
—
—
—
2,294
—
—
—
1,269
393
123
—
287
278
115
287
588
94
69
2,950
1,305
6,019
2,035
2,580
2,505
2,180
2,584
1,764
1,792
1,305
F-125
—
—
34
—
—
—
—
4
4
—
—
—
—
—
372
265
—
—
—
(9)
—
10
15
—
61
—
7,630
5,618
4,782
6,219
1,677
2,659
(1,428)
5/8/2015
2007
(1,893)
2/3/2012
2009
(1,631)
7/11/2012
2008
(1,363)
6/15/2012
1995
(503)
9/27/2012
2012
(844)
9/27/2012
1995
18,770
(2,016)
2/18/2016
2015
3,864
(1,295)
9/20/2012
2012
789
312
320
2,738
2,104
4,207
8,775
9,570
9,735
8,654
(26)
7/31/2013
1986
(73)
1/8/2014
1997
(90)
1/8/2014
2000
(412)
10/1/2013
1990
(403)
10/1/2013
1980
(904)
2/7/2014
2004
(22)
11/26/2018
1963
(487)
12/13/2016
2015
(39)
10/25/2018
2018
(160)
6/28/2018
1992
38,669
(6,857)
2/7/2014
2006
4,484
1,698
6,142
2,035
2,858
2,783
2,305
2,886
2,352
1,947
1,374
(871)
2/7/2014
1999
(278)
6/25/2014
1979
(1,248)
6/25/2014
2008
(505)
7/8/2013
2006
(641)
7/8/2013
2009
(622)
7/8/2013
2009
(541)
7/8/2013
2008
(719)
7/13/2012
1996
(489)
7/31/2012
1960
(509)
7/31/2012
1980
(365)
6/27/2012
1982
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
6
—
—
—
—
—
—
—
—
—
6
81
—
—
—
—
—
802
1,836
2,740
1,392
1,355
3,226
2,794
2,026
2,799
2,685
3,557
2,333
1,628
2,014
1,478
1,462
1,374
1,003
1,590
(179)
1/30/2013
2008
(488)
6/5/2012
1995
(728)
6/5/2012
1995
(320)
4/30/2013
2008
(294)
4/30/2013
2012
(742)
4/30/2013
2012
(664)
6/28/2013
1995
(455)
6/28/2013
2002
(596)
6/28/2013
1995
(640)
6/28/2013
2004
(847)
6/28/2013
1999
(556)
6/28/2013
1986
(388)
6/28/2013
2009
(480)
6/28/2013
2000
(352)
6/28/2013
2010
(348)
6/28/2013
2008
(281)
4/30/2013
2011
(171)
6/5/2012
1995
(282)
2/28/2013
1958
4,758
(1,061)
2/7/2014
2007
8,337
(350)
5/18/2017
2017
631
70
(85)
6/25/2014
— 6/25/2014
5,244
(1,128)
6/27/2013
2008
2009
2008
Property
City
State
Fresenius Medical
Care
Bossier City
LA
Fresenius Medical
Care
Caro
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Jackson
Albemarle
Angiers
Asheboro
Fresenius Medical
Care
Clinton
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fresenius Medical
Care
Fairmont
Fayetteville
Fayetteville
Fayetteville
Lumberton
Pembroke
Red Springs
Roseboro
St. Pauls
Taylorsville
Kings Mills
Fresenius Medical
Care
Dallas
The Fresh Market
Winston-
Salem
Fresh Thyme
Farmers Market
Canton
Fun Town RV
Cleburne
Fun Town RV
Cleburne
Furr's
Garland
Gastro Pub
Tulsa
GE Aviation
Auburn
GE Engine
Winfield
General Electric
Longmont
General Mills
Geneva
General Mills
Fort Wayne
General Service
Administration
General Service
Administration
Mobile
Craig
MI
MI
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
OH
TX
NC
MI
TX
TX
TX
OK
AL
KS
CO
IL
IN
AL
CO
—
—
1,948
—
—
2,373
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
120
92
137
139
203
323
139
201
420
134
178
117
81
101
74
73
275
399
377
196
682
1,744
2,603
1,253
1,152
2,903
2,655
1,819
2,379
2,551
3,379
2,216
1,547
1,913
1,404
1,389
1,099
598
1,132
4,562
1,361
6,976
369
—
3,715
5,087
262
70
1,529
1,253
—
—
—
—
—
—
1,078
1,402
7,457
2,533
268
129
70,274
1,869
73,396
(17,333)
11/5/2013
1995
24,133
1,627
30,920
—
—
32,547
(9,087)
11/21/2012
1995
6,165
(4,092)
5/6/2014
1951
15,640
1,258
18,300
(5,022)
1/8/2014
1993
22,371
48,130
5,095
1,159
F-126
—
—
49
16
29,828
(8,169)
5/23/2012
1998
50,663
(16,832)
10/18/2012
2012
5,412
1,304
(1,681)
6/19/2012
1995
(404)
12/30/2011
1995
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
General Service
Administration
General Service
Administration
General Service
Administration
General Service
Administration
General Service
Administration
General Service
Administration
General Service
Administration
General Service
Administration
Cocoa
Grangeville
Freeport
Plattsburgh
Warren
Ponce
Fort Worth
Gloucester
Giant
Levittown
Giant Eagle
Gahanna
Giant Eagle
Lancaster
Glen's Market
Manistee
GM Financial
Arlington
Golden Corral
Cullman
Golden Corral
Gilbert
Golden Corral
Goodyear
Golden Corral
Surprise
Golden Corral
Bakersfield
Golden Corral
Palatka
Golden Corral
Albany
Golden Corral
Brunswick
FL
ID
NY
NY
PA
PR
TX
VA
PA
OH
OH
MI
TX
AL
AZ
AZ
AZ
CA
FL
GA
GA
Golden Corral
Council Bluffs
IA
Golden Corral
Clarksville
Golden Corral
Evansville
Golden Corral
Kokomo
Golden Corral
Richmond
Golden Corral
Wichita
Golden Corral
Henderson
Golden Corral
Louisville
Golden Corral
Owensboro
IN
IN
IN
IN
KS
KY
KY
KY
Golden Corral
Coon Rapids
MN
Golden Corral
Independence
MO
500
2,100
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
253
317
843
508
341
1,435
6,023
3,372
4,572
3,114
15
27
—
—
—
1,780
9,313
(4,565)
477
287
4,716
3,549
2,210
294
4,294
1,628
9,955
16,736
15,649
6,694
7,901
35,553
(4)
8
—
—
—
—
—
1,703
6,367
4,215
5,080
3,455
6,528
4,767
1,923
(501)
12/13/2011
1995
(2,036)
3/5/2012
2007
(1,158)
1/10/2012
1995
(1,504)
6/19/2012
2008
(1,030)
6/19/2012
2008
(698)
11/5/2013
1995
(1,424)
5/9/2012
2010
(536)
6/20/2012
1995
14,671
(2,524)
11/5/2013
1995
20,285
(3,848)
2/7/2014
2002
17,859
(3,498)
2/7/2014
2008
6,988
(1,709)
2/7/2014
2009
43,454
(9,485)
11/5/2013
1998
847
871
686
1,258
2,664
853
460
390
1,140
1,061
670
780
728
560
600
1,020
1,244
1,611
1,425
2,390
(2,143)
2,910
1,939
4,068
2,078
1,048
1,863
2,093
1,460
1,344
2,707
2,107
723
1,306
1,586
1,173
—
—
—
—
(471)
—
—
—
—
—
—
—
—
—
—
1,656
(1,941)
2,188
(2,893)
1,094
3,781
2,625
5,326
4,742
1,430
2,323
2,483
2,600
2,405
3,377
2,887
1,451
1,866
2,186
2,193
959
906
(150)
2/7/2014
1996
(884)
6/27/2013
2006
(589)
6/27/2013
2006
(1,235)
6/27/2013
2007
(671)
2/7/2014
2011
(157)
6/27/2013
1997
(561)
6/27/2013
1995
(630)
6/27/2013
1995
(440)
6/27/2013
1995
(502)
2/7/2014
2002
(815)
6/27/2013
1995
(634)
6/27/2013
1995
(233)
2/7/2014
2002
(366)
7/31/2013
2000
(477)
6/27/2013
1995
(347)
2/7/2014
2001
(112)
2/7/2014
1997
(94)
2/7/2014
2003
2,437
—
3,862
(722)
2/7/2014
2010
F-127
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
680
925
690
520
300
270
640
713
647
694
1,109
770
579
774
2,730
—
2,463
(2,319)
1,566
1,433
2,930
—
—
—
3,174
(2,023)
2,133
1,858
2,135
2,066
2,315
2,476
1,429
2,766
—
—
—
—
—
—
—
—
3,410
1,069
2,256
1,953
3,230
1,421
2,773
2,571
2,782
2,760
3,424
3,246
2,008
3,540
(822)
6/27/2013
1995
(147)
2/7/2014
1995
(471)
6/27/2013
1995
(431)
6/27/2013
1995
(882)
6/27/2013
1995
(166)
6/27/2013
1995
(550)
2/7/2014
2003
(462)
2/7/2014
2000
(584)
2/7/2014
2002
(558)
2/7/2014
1999
(581)
2/7/2014
2004
(745)
6/27/2013
1995
(388)
2/7/2014
2000
(734)
2/7/2014
2002
Property
City
State
Golden Corral
Flowood
Golden Corral
Horn Lake
Golden Corral
Aberdeen
Golden Corral
Bellevue
Golden Corral
Lincoln
MS
MS
NC
NE
NE
Golden Corral
Farmington
NM
Golden Corral
Akron
OH
Golden Corral
Beavercreek
OH
Golden Corral
Canton
Golden Corral
Cincinnati
Golden Corral
Cleveland
Golden Corral
Columbus
Golden Corral
Dayton
Golden Corral
Dayton
OH
OH
OH
OH
OH
OH
F-128
Property
City
State
Encumbrances
at
December 31,
2018
Initial Costs (1)
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Land
1,167
859
926
947
616
619
838
487
1,175
345
280
1,647
320
800
596
1,265
1,147
644
3,342
758
750
1,248
534
1,085
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Golden Corral
Elyria
Golden Corral
Fairfield
Golden Corral
Grove City
Golden Corral
Northfield
Golden Corral
Ontario
Golden Corral
Springfield
Golden Corral
Toledo
Golden Corral
Zanesville
OH
OH
OH
OH
OH
OH
OH
OH
Golden Corral
Midwest City
OK
Golden Corral
Norman
Golden Corral
Tulsa
Golden Corral
Monroeville
Golden Corral
Rock Hill
Golden Corral
Cookeville
Golden Corral
Baytown
Golden Corral
College
Station
Golden Corral
Houston
Golden Corral
San Angelo
Golden Corral
Spring
Golden Corral
Texarkana
Golden Corral
Bristol
Golden Corral
Beckley
Goodyear
Cumming
Goodyear
Cumming
Goodyear
Mcdonough
Goodyear
Stockbridge
Goodyear
Dekalb
OK
OK
PA
SC
TN
TX
TX
TX
TX
TX
TX
VA
WV
GA
GA
GA
GA
IL
10,674
1,797
21,264
12,994
1,222
32,119
19,491
4,476
44,516
Goodyear
Lockbourne
OH
12,716
3,107
28,868
Goodyear
York
Goodyear
Columbia
PA
SC
Goodyear
Corpus Christi
TX
22,090
1,980
53,396
—
—
656
753
2,077
1,737
Goodyear
Terrell
TX
14,851
2,516
34,804
F-129
1,599
1,135
1,859
1,061
2,412
1,142
3,333
2,030
1,708
2,107
3,890
849
2,130
1,937
1,788
1,718
2,447
1,702
1,207
3,031
2,276
—
—
—
—
—
—
—
—
(983)
—
—
—
—
—
—
—
(64)
—
—
—
—
2,258
(2,507)
2,516
1,915
—
(11)
—
—
—
—
—
—
—
—
2,766
1,994
2,785
2,008
3,028
1,761
4,171
2,517
1,900
2,452
4,170
2,496
2,450
2,737
2,384
2,983
3,530
2,346
4,549
3,789
3,026
999
3,050
2,989
(409)
2/7/2014
2004
(302)
2/7/2014
1999
(478)
2/7/2014
2007
(264)
2/7/2014
2004
(652)
2/7/2014
2004
(285)
2/7/2014
2000
(836)
2/7/2014
2004
(616)
6/27/2013
2002
(225)
6/27/2013
1991
(640)
6/27/2013
1994
(1,171)
6/27/2013
1995
(164)
2/7/2014
1982
(641)
6/27/2013
1995
(583)
6/27/2013
1995
(502)
7/31/2013
1998
(522)
6/27/2013
1990
(743)
6/27/2013
1995
(476)
2/7/2014
2012
(416)
2/7/2014
2011
(850)
7/31/2013
2001
(685)
6/27/2013
1995
(129)
2/7/2014
1995
(617)
2/7/2014
2010
(499)
2/7/2014
2010
23,061
(6,512)
1/8/2014
1995
33,341
(10,169)
1/8/2014
1995
48,992
(14,086)
1/8/2014
1999
31,975
(8,750)
1/8/2014
1998
55,376
(15,992)
1/8/2014
2001
2,733
2,490
(519)
2/7/2014
2010
(425)
2/7/2014
2008
37,320
(10,998)
1/8/2014
1998
Property
City
State
The Gorilla Glue
Company
Cincinnati
Grandy's
Ardmore
Grandy's
Moore
OH
OK
OK
Grandy's
Oklahoma City OK
Grandy's
Oklahoma City OK
Grandy's
Arlington
Grandy's
Carrollton
Grandy's
Grandy's
Dallas
Dallas
Grandy's
Fort Worth
Grandy's
Fort Worth
Grandy's
Garland
Grandy's
Garland
Grandy's
Greenville
Grandy's
Irving
Grandy's
Lancaster
Grandy's
Mesquite
Grandy's
Graphic
Packaging
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Gravity Oilfield
Services
Plano
Monroe
Big Springs
Levelland
Midland
Midland
Monahans
Odessa
Odessa
San Angelo
Snyder
Snyder
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
LA
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
LA
Greene's Energy
Group
Broussard
Hanesbrands
Rural Hall
NC
Hobbs
NM
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5,563
34,887
454
320
260
320
734
847
725
357
777
811
623
859
847
871
780
871
871
637
358
426
42
1,063
1,013
50
104
500
821
466
174
455
—
428
380
289
—
—
—
—
—
—
—
—
—
—
—
—
—
91,313
1,129
599
1,887
528
968
538
1,259
3,891
1,658
588
1,189
6,022
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
40,450
(1,491)
7/28/2017
1978
454
748
640
609
734
847
725
357
777
811
623
859
847
871
780
871
871
— 6/27/2013
1995
— 6/27/2013
1995
— 6/27/2013
1995
— 6/27/2013
1995
— 6/27/2013
1995
— 6/27/2013
1986
— 7/31/2013
1981
— 7/31/2013
1984
— 6/27/2013
1995
— 6/27/2013
1985
— 6/27/2013
1980
— 6/27/2013
1985
— 7/31/2013
1979
— 6/27/2013
1983
— 6/27/2013
1984
— 6/27/2013
1983
— 6/27/2013
1980
91,950
(111)
12/28/2018
2018
1,487
1,025
1,929
1,591
1,981
588
1,363
4,391
2,479
1,054
1,363
6,477
(274)
6/12/2014
2013
(150)
6/25/2014
2012
(453)
6/25/2014
1997
(131)
6/12/2014
2009
(214)
6/12/2014
2010
(131)
6/12/2014
2011
(248)
6/25/2014
1963
(951)
6/12/2014
1963
(364)
6/12/2014
2012
(153)
6/12/2014
2005
(243)
6/12/2014
1975
(1,068)
6/12/2014
1980
1,798
41,214
(50)
42,962
(9,406)
2/7/2014
1992
F-130
Property
City
State
Hanesbrands
Rural Hall
Hardee's
Morrilton
Hardee's
Jacksonville
Hardee's
Pace
Hardee's
Williston
Hardee's
Bremen
Hardee's
Canton
NC
AR
FL
FL
FL
GA
GA
Hardee's
Mount Vernon
IA
Hardee's
Old Fort
Hardee's
Hardee's
Sparta
Akron
Hardee's
Jefferson
Hardee's
Minerva
Hardee's
Hardee's
Seville
Aiken
Hardee's
Chapin
Hardee's
Chester
NC
NC
OH
OH
OH
OH
SC
SC
SC
Hardee's
Bloomingdale
TN
Hardee's
Clinton
Hardee's
Crossville
Hardee's
Erwin
Hardee's
Morristown
Hardee's
Springfield
Hardee's / Red
Burrito
Attalla
Harley Davidson
Round Rock
Harps Grocery
Cabot
Harps Grocery
Haskell
Harps Grocery
Hot Springs
Harps Grocery
Hot Springs
Harps Grocery
Searcy
Harps Grocery
West Fork
TN
TN
TN
TN
TN
AL
TX
AR
AR
AR
AR
AR
AR
Harps Grocery
Poplar Bluff
MO
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
17,990
1,082
22,565
(203)
23,444
(7,997)
12/21/2012
1989
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
175
875
419
395
129
488
320
300
372
207
242
214
151
220
380
586
270
390
300
346
353
343
220
1,688
270
499
592
839
705
635
572
937
583
435
553
518
539
480
904
346
483
363
321
454
450
741
563
844
893
689
406
431
515
896
9,563
4,664
3,281
4,353
4,486
4,159
4,708
2,991
F-131
—
—
—
—
—
—
(6)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(6)
—
—
4
1,112
1,458
854
948
647
1,027
794
1,204
718
690
605
535
605
670
1,121
1,149
1,114
1,283
989
752
784
858
(249)
3/28/2014
1986
(164)
7/31/2013
1993
(129)
6/27/2013
1991
(164)
6/27/2013
1992
(145)
7/31/2013
1980
(160)
6/27/2013
1983
(142)
6/27/2013
1987
(265)
6/27/2013
1995
(103)
6/27/2013
1983
(135)
7/31/2013
1990
(102)
7/31/2013
1989
(90)
7/31/2013
1990
(127)
7/31/2013
1989
(132)
6/27/2013
1995
(217)
6/27/2013
1995
(133)
7/31/2013
1994
(247)
6/27/2013
1995
(262)
6/27/2013
1995
(202)
6/27/2013
1995
(120)
6/27/2013
1982
(121)
7/31/2013
1991
(145)
7/31/2013
1990
1,116
(263)
6/27/2013
1995
11,251
(2,983)
7/31/2013
2008
4,934
3,780
4,945
5,319
4,864
5,343
3,567
(1,244)
2/7/2014
2014
(862)
2/7/2014
2012
(1,137)
2/7/2014
2013
(1,116)
2/7/2014
2013
(1,051)
2/7/2014
2008
(1,196)
2/7/2014
2013
(365)
2/21/2014
2014
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Harps Grocery
Inola
Harris Teeter
Durham
HD Supply
Santee
Healthnow
Buffalo
Helmer Scientific
Noblesville
Hobby Lobby
Algonquin
Hobby Lobby
Avon
Hobby Lobby
Auburn
Hobby Lobby
Kannapolis
Hobby Lobby
Columbia
Hobby Lobby
Logan
Hobby Lobby &
Big Lots
Foley
Home Depot
Tucson
Home Depot
San Diego
Home Depot
Evans
Home Depot
Kennesaw
Home Depot
Slidell
Home Depot
Las Vegas
Home Depot
Columbia
Home Depot
Odessa
Home Depot
Winchester
Home Town
Buffet
Home Town
Buffet
Home Town
Buffet
Home Town
Buffet
Rialto
Santa Maria
Newark
OK
NC
CA
NY
IN
IL
IN
ME
NC
TN
UT
AL
AZ
CA
GA
GA
LA
NV
SC
TX
VA
CA
CA
DE
Union Gap
WA
Hooters
Grand Prairie
TX
Houghton Town
Center
Tucson
Huntington
National Bank
Huntington
National Bank
Conneaut
Jefferson
Hy-Vee
Vermillion
IFM Efectors
Malvern
Igloo
Katy
AZ
OH
OH
SD
PA
TX
—
130
3,387
1,910
3,239
—
—
2,400
7,312
40,953
2,569
89,399
1,431
10,699
—
—
430
—
—
—
—
—
—
38
—
—
—
—
—
1
—
—
—
—
3,517
3,239
(859)
3/5/2014
2014
— 2/7/2014
2009
10,142
(2,262)
2/21/2014
1995
91,968
(17,452)
2/7/2014
2007
12,130
(428)
7/27/2017
2012
5,578
7,294
6,172
6,156
3,456
5,762
8,612
6,251
12,518
4,583
(217)
6/23/2017
2012
(1,421)
2/7/2014
2007
(83)
3/7/2018
2014
(1,068)
2/7/2014
2004
(710)
2/26/2014
1986
(845)
2/7/2014
2008
(123)
5/24/2018
2014
— 2/7/2014
2005
— 2/7/2014
1998
— 2/7/2014
2009
14,141
(2,771)
2/7/2014
2012
5,131
7,907
— 2/7/2014
1998
— 2/7/2014
1998
18,374
(5,315)
11/9/2009
2009
1,599
— 2/7/2014
1998
4,580
5,855
3,566
4,227
2,467
3,079
6,842
—
—
—
12,331
—
—
15,463
—
18,405
1,136
23,496
(6,424)
2/7/2014
2008
1,261
(1,046)
1,006
1,129
(763)
(739)
1,320
(1,223)
2,327
8,565
477
765
3,684
250
—
6
7
—
480
434
567
350
3,574
9,741
688
1,027
4,093
(170)
1/8/2014
1998
(86)
1/8/2014
2002
(150)
1/8/2014
1983
(117)
1/8/2014
2002
(731)
7/31/2013
2001
(318)
12/28/2017
2017
(131)
10/1/2013
1971
(210)
10/1/2013
1963
(1,357)
4/8/2013
1986
—
9,747
11,563
(1,181)
8/27/2014
2014
38,470
—
44,087
(8,666)
2/7/2014
2004
F-132
—
—
—
—
—
—
—
—
—
998
1,439
2,606
1,929
951
2,683
1,770
6,251
6,650
12,518
—
—
4,583
1,809
1,996
5,131
—
—
—
—
—
—
—
—
—
—
—
—
2,922
—
—
7,907
2,911
1,599
3,955
265
191
177
253
997
1,176
205
255
409
1,816
5,617
Property
City
State
Encumbrances
at
December 31,
2018
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
IHOP
Auburn
Homewood
AL
AL
Montgomery
AL
Castle Rock
Greeley
Loveland
Pueblo
CO
CO
CO
CO
Bossier City
LA
Natchitoches
LA
Roseville
MI
Kansas City
MO
Southaven
Greenville
Clarksville
MS
SC
TN
Murfreesboro
TN
Baytown
TX
Corpus Christi
TX
Fort Worth
Houston
Killeen
TX
TX
TX
Lake Jackson
TX
Leon Valley
TX
Auburn
WA
Inform
Diagnostics
Irving
Ingersoll Rand
Annandale
Ingram Micro
Amherst
Insurance Auto
Auctions
Hudson
Iron Mountain
Columbus
Iron Mountain
Mohnton
IRS Gateway
Center
Covington
Irving Oil
Belfast
Irving Oil
Bethel
TX
NJ
NY
FL
OH
PA
KY
ME
ME
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Initial Costs (1)
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
933
1,762
—
—
—
(772)
2,334
1,538
1,534
1,589
1,342
89
1,071
1,002
2,108
1,551
1,346
1,687
1,297
—
1,879
2,462
1,028
2,018
2,055
1,878
37,297
14,223
20,347
11,203
—
—
—
—
—
—
125
—
—
—
—
—
—
—
—
—
—
—
—
—
341
(90)
—
—
2,044
2,372
169
2,654
1,658
1,715
1,919
1,883
839
1,536
1,632
2,458
2,161
1,876
2,287
1,995
1,176
2,439
3,222
1,408
2,388
2,705
2,658
(283)
6/27/2013
1998
(530)
6/27/2013
1995
— 6/27/2013
1998
(703)
6/27/2013
1995
(463)
6/27/2013
1995
(113)
6/27/2013
1995
(478)
6/27/2013
1995
(407)
6/27/2013
1998
(27)
6/27/2013
1995
(330)
6/27/2013
1995
(302)
6/27/2013
1995
(635)
6/27/2013
1995
(467)
6/27/2013
1995
(405)
6/27/2013
1995
(508)
6/27/2013
1995
(364)
7/31/2013
1998
— 7/31/2013
1995
(566)
6/27/2013
1995
(741)
6/27/2013
1995
(309)
6/27/2013
1995
(608)
6/27/2013
1995
(789)
6/27/2013
1995
(565)
6/27/2013
1995
40,875
(9,055)
4/28/2014
1997
15,500
(6,672)
4/30/2014
1999
24,454
(5,216)
6/25/2014
1986
12,265
(141)
10/9/2018
2018
3,642
1,263
6,152
—
5,310
6,349
(1,384)
9/28/2012
1954
(1,330)
7/2/2014
1979
Land
1,111
610
941
320
120
181
330
541
750
340
630
350
610
530
600
698
1,176
560
760
380
370
650
780
3,237
1,367
4,107
1,062
405
197
3,120
80,689
1,582
85,391
(15,546)
6/5/2014
1994
339
182
698
331
F-133
—
—
1,037
513
(213)
2/7/2014
1997
(105)
2/7/2014
1990
Initial Costs (1)
Encumbrances
at
December 31,
2018
State
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
Irving Oil
City
Boothbay
Harbor
Irving Oil
Caribou
Irving Oil
Fort Kent
Irving Oil
Kennebunk
Irving Oil
Lincoln
Irving Oil
Orono
Irving Oil
Saco
Irving Oil
Skowhegan
Irving Oil
Conway
Irving Oil
Dover
Irving Oil
Rochester
ME
ME
ME
ME
ME
ME
ME
ME
NH
NH
NH
Irving Oil
Dummerston
VT
Irving Oil
Rutland
Irving Oil
Westminster
Jack in the Box
Avondale
Jack in the Box
Chandler
Jack in the Box
Folsom
Jack in the Box
Sacramento
Jack in the Box
West
Sacramento
Jack in the Box
Burley
Jack in the Box
Belleville
Jack in the Box
Florissant
Jack in the Box
St. Louis
Jack in the Box
Salem
Jack in the Box
Tigard
Jack in the Box
Arlington
Jack in the Box
Arlington
Jack in the Box
Cleburne
Jack in the Box
Corinth
Jack in the Box
Farmers
Branch
Jack in the Box
Fort Worth
Jack in the Box
Georgetown
VT
VT
AZ
AZ
CA
CA
CA
ID
IL
MO
MO
OR
OR
TX
TX
TX
TX
TX
TX
TX
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
413
187
358
469
360
228
619
541
173
380
290
185
249
108
110
450
280
476
590
240
200
502
420
580
620
420
420
291
400
460
490
600
550
404
352
541
360
272
222
492
525
717
747
353
220
437
2,237
1,447
2,423
1,110
1,710
1,430
966
1,515
1,494
1,301
1,361
1,325
1,365
1,647
1,416
1,640
1,702
1,508
F-134
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
963
591
710
(180)
2/7/2014
1993
(121)
2/7/2014
1990
(126)
2/7/2014
1973
1,010
(184)
2/7/2014
1980
720
500
841
1,033
698
1,097
1,037
538
469
545
2,347
1,897
2,703
1,586
2,300
1,670
1,166
2,017
1,914
1,881
1,981
1,745
1,785
1,938
1,816
2,100
2,192
2,108
(114)
2/7/2014
1994
(84)
2/7/2014
1984
(98)
2/7/2014
1995
(170)
2/7/2014
1988
(150)
2/7/2014
2004
(213)
2/7/2014
1988
(215)
2/7/2014
1970
(120)
2/7/2014
1993
(68)
2/7/2014
1984
(131)
2/7/2014
1990
(656)
6/27/2013
1995
(425)
6/27/2013
1995
(711)
6/27/2013
1995
(312)
7/31/2013
1991
(502)
6/27/2013
1995
(420)
6/27/2013
1995
(283)
6/27/2013
1995
(444)
6/27/2013
1995
(438)
6/27/2013
1995
(382)
6/27/2013
1995
(399)
6/27/2013
1995
(389)
6/27/2013
1995
(400)
6/27/2013
1995
(462)
7/31/2013
2000
(415)
6/27/2013
1995
(481)
6/27/2013
1995
(499)
6/27/2013
1995
(442)
6/27/2013
1995
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
380
600
470
460
390
330
410
450
1,449
1,856
1,344
1,437
1,172
1,845
1,621
1,396
—
—
—
—
—
—
—
—
1,829
2,456
1,814
1,897
1,562
2,175
2,031
1,846
(425)
6/27/2013
1995
(544)
6/27/2013
1995
(394)
6/27/2013
1995
(422)
6/27/2013
1995
(344)
6/27/2013
1995
(541)
6/27/2013
1995
(475)
6/27/2013
1995
(409)
6/27/2013
1995
Property
City
State
Jack in the Box
Granbury
TX
Jack in the Box
Grand Prairie
TX
Jack in the Box
Grapevine
Jack in the Box
Houston
Jack in the Box
Houston
Jack in the Box
Houston
Jack in the Box
Houston
Jack in the Box
Houston
TX
TX
TX
TX
TX
TX
F-135
Property
City
State
Jack in the Box
Hutchins
Jack in the Box
Lufkin
Jack in the Box
Lufkin
Jack in the Box
Mesquite
TX
TX
TX
TX
Jack in the Box
Missouri City
TX
Jack in the Box
Nacogdoches
TX
Jack in the Box
Orange
Jack in the Box
Port Arthur
Jack in the Box
San Antonio
Jack in the Box
San Antonio
Jack in the Box
San Antonio
Jack in the Box
Spring
Jack in the Box
Spring
Jack in the Box
Texas City
Jack in the Box
Tyler
Jack in the Box
Weatherford
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
Jack in the Box
Enumclaw
WA
Jeremiah's Italian
Ice
Winter Springs
FL
Jiffy Lube
Houston
Jo-Ann's
Shakopee
Johnny Carinos
Rogers
Johnny Carinos
Columbus
Johnny Carinos
Muncie
Johnny Carinos
Houston
Johnny Carinos
Midland
Katun Corp.
Davenport
Keane Frac
Pleasanton
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Bloomington
Charleston
Decatur
Dolton
Elmhurst
TX
MN
AR
IN
IN
TX
TX
IA
TX
IL
IL
IL
IL
IL
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
330
440
450
560
451
340
270
460
400
470
350
570
450
454
450
480
380
734
423
994
997
809
540
1,328
998
454
328
576
282
276
167
242
1,363
1,544
1,563
1,652
837
1,320
1,661
1,405
1,244
1,256
1,249
1,340
1,487
844
1,025
1,329
1,238
—
1,037
1,807
2,540
1,888
2,160
2,656
2,329
7,485
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,804
(2,858)
—
—
—
—
—
1,466
1,514
1,619
946
969
F-136
1,693
1,984
2,013
2,212
1,288
1,660
1,931
1,865
1,644
1,726
1,599
1,910
1,937
1,298
1,475
1,809
1,618
734
1,460
2,801
3,537
2,697
2,700
3,984
3,327
7,939
2,274
2,042
1,796
1,895
1,113
1,211
(400)
6/27/2013
1995
(453)
6/27/2013
1995
(458)
6/27/2013
1995
(485)
6/27/2013
1995
(235)
7/31/2013
1991
(387)
6/27/2013
1995
(487)
6/27/2013
1995
(412)
6/27/2013
1995
(365)
6/27/2013
1995
(368)
6/27/2013
1995
(366)
6/27/2013
1995
(393)
6/27/2013
1995
(436)
6/27/2013
1995
(250)
6/27/2013
1991
(301)
6/27/2013
1995
(390)
6/27/2013
1995
(363)
6/27/2013
1995
— 7/31/2013
1995
(231)
6/9/2014
2008
(441)
2/7/2014
2012
(771)
6/27/2013
2001
(584)
8/30/2013
2004
(668)
8/30/2013
2003
(806)
6/27/2013
2002
(726)
7/31/2013
2000
(1,477)
5/6/2014
1993
(250)
9/25/2014
2014
(434)
6/27/2013
2004
(448)
6/27/2013
2003
(480)
6/27/2013
2001
(266)
7/31/2013
1975
(272)
7/31/2013
1990
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Kentucky Fried
Chicken / A&W
Hazel Crest
Homewood
Matteson
Mattoon
Oak Forest
Rockford
Springfield
Springfield
Westchester
IL
IL
IL
IL
IL
IL
IL
IL
IL
Crawfordsville
IN
Frankfort
Franklin
Greenwood
Lebanon
Deming
Las Cruces
Warren
Green Bay
Milwaukee
Milwaukee
Milwaukee
Milwaukee
Milwaukee
South
Milwaukee
Wauwatosa
West Bend
IN
IN
IN
IN
NM
NM
OH
PA
WI
WI
WI
WI
WI
WI
WI
WI
WI
WI
FL
Kentucky Fried
Chicken
New
Kensington
Appleton
Granite City
IL
Allison Park
PA
Germantown
WI
Ker's WingHouse
Bar and Grill
Brandon
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
153
660
399
113
185
201
267
212
238
159
99
205
339
337
220
270
426
324
350
102
246
368
208
396
281
89
197
138
197
135
185
340
1,376
1,541
2,259
1,019
1,047
1,142
1,068
1,203
952
1,068
893
1,375
1,405
1,348
691
498
640
487
874
1,083
683
913
1,022
773
795
750
975
924
695
615
705
654
F-137
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(421)
(260)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,529
2,201
2,658
1,132
1,232
1,343
1,335
1,415
1,190
1,227
992
1,580
1,744
1,685
911
768
645
551
1,224
1,185
929
1,281
1,230
1,169
1,076
839
1,172
1,062
892
750
890
994
(386)
7/31/2013
1982
(432)
7/31/2013
1992
(634)
7/31/2013
1973
(286)
7/31/2013
1973
(294)
7/31/2013
1955
(320)
7/31/2013
1995
(300)
7/31/2013
1987
(338)
7/31/2013
1987
(267)
7/31/2013
1973
(316)
6/27/2013
1979
(251)
7/31/2013
1985
(408)
6/27/2013
1976
(416)
6/27/2013
1976
(378)
7/31/2013
1983
(203)
6/27/2013
1995
(146)
6/27/2013
1995
(49)
7/31/2013
1987
(41)
7/31/2013
1967
(256)
6/27/2013
1995
(321)
6/27/2013
1987
(202)
6/27/2013
1978
(270)
6/27/2013
1989
(303)
6/27/2013
1986
(229)
6/27/2013
1991
(236)
6/27/2013
1992
(222)
6/27/2013
1989
(289)
6/27/2013
1991
(274)
6/27/2013
1992
(206)
6/27/2013
1993
(182)
6/27/2013
1992
(209)
6/27/2013
1972
(197)
6/27/2013
1995
Property
City
State
Ker's WingHouse
Bar and Grill
Clearwater
FL
Key Bank
Spencerport
NY
Kirklands
Wilmington
Initial Costs (1)
Encumbrances
at
December 31,
2018
—
—
—
Land
550
59
1,127
8,700
8,052
4,670
4,173
—
—
7,705
—
—
—
—
1,431
964
547
1,110
1,532
2,984
2,756
3,429
1,286
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,268
—
—
—
—
—
—
—
—
—
—
195
348
352
305
259
560
303
502
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
60
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
182
—
125
125
—
175
125
—
627
1,112
1,061
7,891
—
3,109
5,009
10,399
6,932
14,561
5,842
3,423
7,321
7,788
6,279
6,250
7,574
7,691
5,794
5,715
6,165
6,073
7,782
7,642
1,147
811
654
712
1,036
829
562
613
F-138
1,177
1,171
2,188
(189)
6/27/2013
1995
(315)
6/5/2013
1960
(279)
2/7/2014
2004
15,943
(1,941)
2/7/2014
1982
4,173
4,540
6,033
— 2/7/2014
2008
(766)
2/7/2014
2011
(1,105)
2/7/2014
2009
10,946
(3,852)
3/28/2013
2003
8,042
(1,525)
2/7/2014
2011
16,093
(3,036)
2/7/2014
2007
8,826
6,179
8,607
9,056
6,279
6,250
7,574
7,691
5,794
5,715
6,165
6,073
7,782
7,642
1,524
1,159
1,131
1,142
1,295
1,564
990
1,115
(1,369)
2/7/2014
2006
(38)
2/7/2014
2007
(1,660)
2/7/2014
2005
(1,717)
2/7/2014
2011
(1,592)
11/5/2013
1996
(1,585)
11/5/2013
1995
(1,921)
11/5/2013
1995
(1,950)
11/5/2013
1993
(1,469)
11/5/2013
1995
(1,449)
11/5/2013
1996
(1,563)
11/5/2013
1995
(1,540)
11/5/2013
1996
(1,973)
11/5/2013
1996
(1,938)
11/5/2013
1996
(385)
6/27/2013
1995
(303)
4/23/2013
1960
(256)
4/23/2013
1971
(274)
6/10/2013
1985
(405)
9/21/2012
1964
(290)
6/27/2013
1995
(222)
4/23/2013
1962
(229)
4/23/2013
1962
NC
CA
FL
IA
KS
MI
MI
SC
SC
TX
TX
WI
GA
GA
GA
GA
KY
Monrovia
Tavares
Fort Dodge
Salina
Howell
Saginaw
Columbia
Spartanburg
Brownsville
Mcallen
Rice Lake
Calhoun
Lithonia
Suwanee
Suwanee
Frankfort
Madisonville
KY
Murray
Owensboro
Franklin
Knoxville
Greenville
Huntsville
Huntsville
Huntsville
KY
KY
TN
TN
AL
AL
AL
AL
Montgomery
AL
Montgomery
AL
Montgomery
AL
Montgomery
AL
Kohl's
Kohl's
Kohl's
Kohl's
Kohl's
Kohl's
Kohl's
Kohl's
Kohl's
Kohl's
Kohl's
Kroger
Kroger
Kroger
Kroger
Kroger
Kroger
Kroger
Kroger
Kroger
Kroger
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Krystal
Scottsboro
Tuscaloosa
Valley
AL
AL
AL
Vestavia Hills
AL
Jacksonville
Orlando
Orlando
Plant City
FL
FL
FL
FL
St. Augustine
FL
Albany
Atlanta
Augusta
Columbus
Decatur
East Point
Macon
GA
GA
GA
GA
GA
GA
GA
Milledgeville
GA
Snellville
Corinth
Gulfport
Pearl
Chattanooga
Chattanooga
Chattanooga
Knoxville
GA
MS
MS
MS
TN
TN
TN
TN
Lawrenceburg
TN
Memphis
Memphis
TN
TN
Murfreesboro
TN
Kum & Go
Bentonville
Kum & Go
Lowell
Kum & Go
Paragould
AR
AR
AR
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
206
297
342
574
372
669
355
411
309
166
365
622
94
221
325
261
466
279
215
426
336
186
440
369
304
257
181
465
587
774
708
1,157
1,165
694
513
574
372
446
533
411
721
664
851
934
533
664
759
609
466
652
861
638
784
328
659
246
709
1,029
723
698
1,370
1,437
2,123
F-139
172
454
125
—
—
125
—
—
125
—
—
—
—
—
—
—
—
—
125
—
—
—
—
—
—
—
—
—
—
(52)
(27)
—
1,349
1,825
1,116
855
1,148
869
1,115
888
947
1,030
830
1,216
1,556
627
885
(385)
6/27/2013
1995
(254)
9/21/2012
1976
(270)
4/23/2013
1979
(192)
4/23/2013
1995
(225)
9/21/2012
1990
(154)
9/21/2012
1994
(175)
9/21/2012
1995
(209)
9/21/2012
2012
(170)
9/21/2012
2012
(282)
9/21/2012
1962
(260)
9/21/2012
1973
(333)
9/21/2012
1979
(365)
9/21/2012
1977
(208)
9/21/2012
1965
(258)
10/26/2012
1984
1,084
(297)
9/21/2012
1962
870
932
1,056
1,076
1,064
1,120
514
1,099
615
1,013
1,286
904
1,163
1,905
2,184
2,831
(238)
9/21/2012
2011
(182)
9/21/2012
1981
(254)
4/23/2013
2007
(337)
9/21/2012
2011
(250)
9/21/2012
1976
(307)
9/21/2012
2010
(73)
6/27/2013
1995
(246)
4/23/2013
1983
(96)
9/21/2012
1970
(265)
4/23/2013
1980
(384)
4/23/2013
1975
(270)
4/23/2013
1972
(261)
4/23/2013
2008
(428)
11/20/2012
2009
(449)
11/20/2012
2009
(674)
9/28/2012
2012
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Kum & Go
Rogers
Kum & Go
Sherwood
Kum & Go
Fountain
Kum & Go
Monument
Kum & Go
Muscatine
Kum & Go
Ottumwa
Kum & Go
Sloan
Kum & Go
Story City
Kum & Go
Tipton
Kum & Go
Waukee
Kum & Go
West Branch
Kum & Go
Joplin
Kum & Go
Joplin
Kum & Go
Neosho
Kum & Go
Tioga
Kum & Go
Muskogee
Kum & Go
Muskogee
Kum & Go
Cheyenne
Kum & Go
Gillette
LA Fitness
Avondale
LA Fitness
Glendale
LA Fitness
Marana
LA Fitness
LA Fitness
Highland
Boynton
Beach
LA Fitness
Miami
LA Fitness
Tampa
LA Fitness
Broadview
LA Fitness
Oswego
LA Fitness
Tinley Park
LA Fitness
Carmel
LA Fitness
Indianapolis
LA Fitness
St. Clair
Shores
AR
AR
CO
CO
IA
IA
IA
IA
IA
IA
IA
MO
MO
MO
ND
OK
OK
WY
WY
AZ
AZ
AZ
CA
FL
FL
FL
IL
IL
IL
IN
IN
MI
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
668
866
1,131
1,192
794
586
447
223
507
1,280
219
218
205
504
318
423
97
411
878
2,253
3,049
2,177
—
1,284
4,481
2,274
—
—
—
—
—
—
—
—
—
1,485
2,730
1,084
3,345
3,163
1,722
1,457
1,279
2,163
1,559
1,609
1,696
1,457
1,853
1,368
2,162
2,089
1,945
1,280
1,089
782
594
1,144
2,863
1,691
973
2,327
2,048
9,040
7,568
8,322
8,673
9,945
8,671
6,500
8,763
8,749
8,976
9,562
8,970
6,787
F-140
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
—
—
—
—
—
2,227
2,475
2,827
2,649
2,647
1,954
2,609
2,312
2,452
2,560
1,308
1,000
799
1,648
3,181
2,114
1,070
2,738
2,926
(487)
11/20/2012
2008
(510)
9/28/2012
2012
(526)
12/24/2012
2012
(452)
12/24/2012
2012
(575)
12/27/2012
2012
(428)
11/20/2012
1998
(668)
2/7/2014
2008
(574)
2/7/2014
2006
(629)
2/7/2014
2008
(388)
3/28/2013
2012
(296)
2/7/2014
1997
(281)
2/11/2014
1987
(216)
2/11/2014
1986
(319)
2/11/2014
1997
(895)
11/8/2012
2012
(497)
7/22/2013
2013
(210)
9/30/2014
1999
(722)
12/27/2012
2012
(606)
6/28/2013
2013
11,293
(2,382)
2/7/2014
2006
9,765
9,606
(2,166)
2/7/2014
2005
(2,282)
2/7/2014
2011
10,947
(2,528)
2/7/2014
2009
11,430
(631)
11/22/2016
2005
11,401
(566)
11/22/2016
2015
7,584
(254)
11/13/2017
2016
276
12,384
(2,349)
2/7/2014
2010
—
—
—
—
—
11,912
(2,433)
2/7/2014
2008
10,698
(260)
12/22/2017
2006
11,019
(2,526)
2/7/2014
2008
10,249
(2,370)
2/7/2014
2009
8,950
(480)
11/22/2016
1982
Property
City
State
LA Fitness
Oakdale
LA Fitness
Webster
LA Fitness
Edmond
LA Fitness
Easton
LA Fitness
Memphis
LA Fitness
Dallas
LA Fitness
Denton
LA Fitness
Duncanville
LA Fitness
Mckinney
LA Fitness
Rowlett
LA Fitness
Spring
MN
NY
OK
PA
TN
TX
TX
TX
TX
TX
TX
Lamrite West
Strongsville
OH
Leeann Chin
Blaine
MN
Leeann Chin
Chanhassen
MN
Leeann Chin
Golden Valley
MN
Lee's Famous
Recipe Chicken
Lee's Famous
Recipe Chicken
Lee's Famous
Recipe Chicken
Florissant
St. Ann
St. Louis
Lifetime Dentistry
Chickasha
Chickasha
Logan's
Roadhouse
Logan's
Roadhouse
Logan's
Roadhouse
Logan's
Roadhouse
Logan's
Roadhouse
Logan's
Roadhouse
Logan's
Roadhouse
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Huntsville
Fayetteville
Hattiesburg
Owasso
Clarksville
Cleveland
El Paso
Merced
Collinsville
Fairview
Heights
Jacksonville
Litchfield
MO
MO
MO
OK
AL
AR
MS
OK
TN
TN
TX
CA
IL
IL
IL
IL
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
4,749
2,315
2,922
962
938
—
—
—
—
1,466
7,348
4,712
2,629
10,413
3,775
1,888
9,568
8,315
5,102
6,916
—
—
—
10,630
(2,291)
2/7/2014
2009
8,024
7,878
(227)
8/1/2017
2014
(1,668)
3/31/2014
2014
10,600
139
11,677
(2,818)
2/7/2014
1979
—
—
(6)
—
—
8,814
(109)
7/26/2018
2014
13,042
(2,615)
2/7/2014
2008
11,450
(2,473)
2/7/2014
2009
11,561
(2,548)
2/7/2014
2007
9,826
(516)
11/22/2016
2005
406
10,613
(403)
4/11/2017
2006
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,538
2,039
2,539
1,970
3,078
480
450
270
306
187
107
100
520
1,570
890
1,449
1,010
890
320
174
220
258
171
194
10,023
7,787
7,668
9,290
34,076
528
763
776
560
571
874
186
—
—
—
—
—
—
—
—
—
4,797
(1,363)
2,182
4,012
2,173
(953)
(803)
(568)
4,424
(1,264)
3,902
(1,225)
4,731
(1,558)
—
—
—
—
—
695
940
525
431
996
F-141
11,260
(2,394)
2/7/2014
2006
37,154
(1,238)
8/21/2017
1999
1,008
1,213
1,046
866
758
981
286
3,954
2,799
4,099
3,054
4,170
3,567
3,493
869
1,160
783
602
(155)
6/27/2013
1995
(224)
6/27/2013
1995
(228)
6/27/2013
1995
(166)
6/27/2013
1984
(169)
6/27/2013
1984
(259)
6/27/2013
1984
(58)
6/27/2013
1995
(750)
6/27/2013
1995
(329)
6/27/2013
1995
(698)
6/27/2013
1995
(385)
7/31/2013
2006
(706)
6/27/2013
1995
(604)
6/27/2013
1995
(691)
6/27/2013
1995
(195)
7/31/2013
1982
(278)
6/27/2013
2006
(155)
6/27/2013
1976
(128)
6/27/2013
1978
1,190
(295)
6/27/2013
1986
Property
City
State
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Marion
IL
Mount Carmel
IL
Vandalia
IL
West Frankfort
IL
Wood River
IL
Garden City
Hays
Clovis
Fairborn
Penn Hills
Austin
Green Bay
Ashtabula
Tampa
Paducah
Jonesboro
Burlington
Florence
KS
KS
NM
OH
PA
TX
WI
OH
FL
KY
OH
AR
IA
KY
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / A&W
Long John
Silver's / KFC
Long John
Silver's / Taco
Bell
Longhorn
Steakhouse
Longhorn
Steakhouse
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lowe's
Lumber
Liquidators
Los Tios Mexican
Restaurant
Dalton
New Orleans
LA
12,332
10,315
20,728
Sanford
Windham
ME
ME
Benton Harbor MI
Kansas City
MO
Las Vegas
NV
4,672
4,045
7,930
12,640
—
—
—
1,011
3,729
11,499
Ticonderoga
NY
4,345
1,812
West
Carrollton
Columbia
Texas City
Saginaw
OH
SC
TX
MI
Mad Max
Fond Du Lac
WI
Mad Max
Fond Du Lac
WI
—
—
—
—
—
—
2,864
5,485
2,313
287
303
1,484
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
305
105
101
244
251
120
160
210
103
438
459
748
440
370
1,059
(925)
484
484
996
314
530
624
705
300
656
477
563
1,640
1,852
—
(375)
(836)
—
—
—
(377)
—
—
—
—
—
—
1,121
1,443
(2,072)
18
2,101
2,775
4,814
30
8,405
8,191
10,189
—
185
819
250
—
—
—
—
—
7,851
245
—
—
—
—
—
—
—
—
—
—
—
—
9,883
—
9,253
502
1,212
2,511
F-142
439
589
210
404
565
650
784
538
403
1,094
936
1,311
2,080
2,222
492
48
— 6/27/2013
1983
(143)
6/27/2013
1977
— 6/27/2013
1976
— 6/27/2013
1977
(93)
6/27/2013
1975
(157)
6/27/2013
1978
(185)
6/27/2013
1994
(63)
6/27/2013
1995
(89)
6/27/2013
1976
(184)
7/31/2013
1993
(141)
6/27/2013
1993
(167)
6/27/2013
1978
(481)
6/27/2013
1995
(557)
6/27/2013
1995
(6)
2/7/2014
1995
(9)
6/27/2013
1990
10,691
(2,011)
5/19/2014
1994
11,785
(1,932)
2/7/2014
1996
15,253
(2,368)
2/7/2014
1997
31,043
(5,256)
11/5/2013
2005
4,045
12,640
9,107
3,729
11,499
1,812
— 2/7/2014
2009
— 6/3/2013
2006
(1,934)
3/17/2014
1994
— 2/7/2014
2009
— 2/7/2014
2002
— 2/7/2014
2009
12,747
(2,157)
2/7/2014
1994
5,485
— 2/7/2014
1994
11,566
(2,984)
5/19/2014
1995
789
1,515
3,995
(128)
5/28/2014
2000
(20)
7/17/2018
2007
(27)
7/17/2018
1974
Property
City
State
Mad Max
Fond Du Lac
WI
Mad Max
Mad Max
Port
Washington
Port
Washington
Mad Max
Sheboygan
Mad Max
West Bend
Mad Max
West Bend
Mad Max
West Bend
Mad Max
West Bend
Mars Petcare
Columbia
Marshall's
Convenience
Stores
Marshall's
Convenience
Stores
Marshall's
Convenience
Stores
Marshall's
Convenience
Stores
Marshall's
Convenience
Stores
Marshall's
Convenience
Stores
Cascade
Elkhart Lake
WI
Glenbeulah
WI
Kewaskum
WI
Plymouth
WI
Plymouth
Mastec
Houston
Mattress Firm
Daphne
Mattress Firm
Dothan
Mattress Firm
Rogers
Mattress Firm
Destin
Mattress Firm
Tallahassee
Mattress Firm
Fairview
Heights
Mattress Firm
Columbus
Mattress Firm
Evansville
Mattress Firm
Goshen
Mattress Firm
South Bend
Mattress Firm
Lafayette
Mattress Firm
Flint
Mattress Firm
Flint
Mattress Firm
Goldsboro
Mattress Firm
Painesville
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,194
—
—
—
—
133
191
533
354
463
483
278
333
272
568
733
318
710
965
315
570
—
—
—
—
—
—
—
—
405
759
1,266
672
1,173
1,448
593
903
(6)
7/17/2018
1952
(11)
7/17/2018
1991
(14)
7/17/2018
1996
(7)
7/17/2018
1996
(13)
7/17/2018
2012
(16)
7/17/2018
2016
(7)
7/17/2018
1986
(10)
7/17/2018
1999
1,875
19,591
(985)
20,481
(3,634)
11/5/2013
2014
32
283
45
253
82
199
369
528
406
321
693
924
231
157
117
211
289
—
467
409
349
437
436
955
605
468
318
539
2,669
1,233
1,217
1,284
1,287
1,386
958
891
2,227
1,555
2,445
1,251
1,323
1,164
1,385
1,318
F-143
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
468
(6)
8/30/2018
1991
1,238
(14)
8/30/2018
1985
650
721
400
738
3,038
1,761
1,623
1,605
1,980
2,310
1,189
1,048
2,344
1,766
2,734
1,251
1,790
1,573
1,734
1,755
(9)
8/30/2018
2008
(7)
8/30/2018
1999
(5)
8/30/2018
1984
(9)
8/30/2018
2005
(550)
6/12/2014
2012
(353)
10/1/2013
2013
(363)
5/14/2013
2013
(392)
2/6/2013
2012
(381)
6/5/2013
2013
(414)
5/14/2013
2013
(276)
2/7/2014
1977
(278)
11/6/2012
1964
(680)
2/11/2013
1995
(381)
3/20/2014
2013
(611)
2/24/2014
2013
(373)
5/2/2013
1995
(272)
8/19/2014
2014
(208)
10/3/2014
2014
(274)
5/29/2014
2014
(286)
7/10/2014
2014
WI
WI
WI
WI
WI
WI
WI
SC
WI
WI
TX
AL
AL
AR
FL
FL
IL
IN
IN
IN
IN
LA
MI
MI
NC
OH
Property
City
State
Mattress Firm
Johnstown
Mattress Firm
Florence
Mattress Firm
Rock Hill
Mattress Firm
Knoxville
Mattress Firm
Nederland
Mattress Firm
Bountiful
Mattress Firm
Spokane
Mattress Firm
Spokane
PA
SC
SC
TN
TX
UT
WA
WA
McAlisters
Murfreesboro
TN
McAlisters
Sherman
McAlisters
Waco
TX
TX
McDonald's
Scotland Neck
NC
MDC Holdings
Inc.
Denver
MedAssets
Plano
The Medicines
Co.
Melrose Park
Center
Parsippany
CO
TX
NJ
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
389
398
385
586
311
736
409
511
310
563
429
320
906
929
898
1,088
1,245
1,367
1,685
1,582
720
1,223
791
—
12,648
66,398
10,432
45,650
27,700
5,150
50,051
745
(8)
—
—
—
—
—
—
—
—
—
—
397
—
748
597
2,040
1,319
1,283
1,674
1,556
2,103
2,094
2,093
1,030
1,786
1,220
320
(281)
7/31/2013
1995
(287)
12/7/2012
2012
(262)
8/21/2013
2008
(330)
3/19/2013
2012
(395)
9/26/2012
1997
(424)
12/31/2012
2012
(517)
4/4/2013
2013
(490)
3/28/2013
2013
(217)
6/27/2013
1995
(324)
5/16/2014
2013
(238)
3/27/2014
2000
— 6/27/2013
2005
79,443
(17,105)
11/5/2013
2001
56,082
(9,902)
2/7/2014
2013
55,949
(11,324)
2/7/2014
2009
17,255
(2,664)
2/7/2014
2006
Melrose Park
IL
—
6,143
10,515
Merrill Lynch
Hopewell
Metro by T-
Mobile
Richardson
Mezcal Mexican
Restaurant
Grafton
Michaels
Lancaster
Michaels
Lafayette
Michaels
Phoenix
Michelin
Louisville
NJ
TX
OH
CA
LA
AZ
KY
Millenium Chem
Glen Burnie
MD
Mills Fleet Farm
Cedar Falls
Mister Car Wash
Florence
Mister Car Wash
Florence
IA
AL
AL
Mister Car Wash
Muscle Shoals
AL
Mister Car Wash
Grand Rapids
MI
Mister Car Wash
Grand Rapids
MI
Mister Car Wash
Grand Rapids
MI
Mister Car Wash
Grand Rapids
MI
74,250
17,619
108,349
(12,141)
113,827
(15,642)
2/7/2014
2001
7,489
1,292
19,606
769
21,667
(5,161)
11/5/2013
1986
—
—
—
—
—
—
—
—
—
—
—
—
—
—
64
7,744
1,831
2,325
1,120
2,127
—
198
404
378
662
779
721
458
191
33,872
3,631
5,948
7,763
—
—
—
—
—
255
(60)
7/31/2013
1990
41,616
(1,113)
11/20/2017
1998
5,462
8,273
8,883
(1,049)
2/7/2014
2011
(126)
5/31/2018
1997
(2,403)
11/5/2013
2011
23,198
(3,894)
21,431
(2,794)
2/21/2014
1984
—
3
3
3
—
—
—
—
3,501
1,577
2,012
1,826
1,439
2,379
1,717
1,396
— 12/21/2018
N/A
(49)
10/17/2017
2008
(70)
10/17/2017
2016
(55)
10/17/2017
2008
(36)
5/16/2017
2002
(77)
4/18/2017
2001
(45)
5/16/2017
1984
(44)
5/16/2017
1961
3,501
1,376
1,605
1,445
777
1,600
996
938
F-144
Property
City
State
Mister Car Wash
Grand Rapids
MI
Mister Car Wash
Jenison
Mister Car Wash
Kentwood
Monro Muffler
Lewiston
Monro Muffler
Waukesha
Monterey's Tex
Mex
Tulsa
Moonshine
Austin
MI
MI
ME
WI
OK
TX
MotoMart
MS Energy
Service
St. Charles
MO
Midland
N/A - Billboard
Memphis
N/A - Billboard
Memphis
N/A - Billboard
Memphis
N/A - Billboard
Memphis
N/A - Parking Lot
Kingston
National Tire &
Battery
National Tire &
Battery
National Tire &
Battery
Morrow
St. Louis
Nashville
Natural Grocers
Gilbert
Natural Grocers
Gilbert
Natural Grocers
Tucson
Natural Grocers
Salem
Nestle Holdings
Breinigsville
Northern Tool &
Equipment
Ocala
Northrop
Grumman
El Segundo
NTT Data
Lincoln
O'Charley's
Dalton
O'Charley's
Tucker
Old Country
Buffet
Burbank
Olive Garden
Flagstaff
Olive Garden
Altamonte
Springs
Olive Garden
Leesburg
TX
TN
TN
TN
TN
PA
GA
MO
TN
AZ
AZ
AZ
OR
PA
FL
CA
NE
GA
GA
CA
AZ
FL
FL
Olive Garden
Port Charlotte
FL
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
(326)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
799
—
—
—
—
—
554
393
238
279
228
135
837
1,085
1,165
33
63
73
90
29
397
756
603
2,113
2,100
1,571
1,339
7,381
902
915
877
1,115
684
406
1,797
1,980
948
—
—
—
—
—
1,586
924
1,373
3,211
3,231
3,637
3,886
66,948
1,574
1,693
2,727
15,935
67,908
2,812
25,566
—
—
—
—
—
—
—
—
—
406
1,037
246
875
699
692
1,454
1,817
866
1,309
(1,094)
—
—
—
—
455
4,023
1,837
4,156
F-145
1,456
1,308
1,115
1,394
912
215
2,634
3,065
2,113
33
63
73
90
29
1,983
1,680
1,976
5,324
5,331
5,208
5,225
(11)
8/15/2018
1976
(10)
8/15/2018
1977
(42)
5/16/2017
1979
(348)
5/10/2013
1976
(210)
7/23/2013
2002
(20)
7/31/2013
2001
(546)
6/27/2013
1998
(595)
2/7/2014
2009
(214)
6/12/2014
2012
— 7/31/2013
1995
— 7/31/2013
1995
— 7/31/2013
1995
— 7/31/2013
1995
— 6/27/2013
1995
(548)
6/5/2012
1992
(308)
10/31/2012
1998
(337)
2/7/2014
1978
(177)
3/1/2017
2016
(178)
3/1/2017
2016
(228)
3/1/2017
2016
(1,017)
2/7/2014
2013
74,329
(20,730)
11/5/2013
1994
4,420
(713)
2/7/2014
2008
83,843
(14,927)
6/27/2014
1972
28,378
(5,837)
2/7/2014
2009
2,223
1,903
461
1,330
4,722
2,529
5,610
(552)
6/27/2013
1993
(263)
6/27/2013
1993
(112)
1/8/2014
2001
(80)
7/28/2014
1996
(556)
7/28/2014
2006
(238)
7/28/2014
1990
(496)
7/28/2014
1990
Property
City
Olive Garden
Salisbury
Olive Garden
Cary
State
MD
NC
Olive Garden
Oklahoma City OK
Olive Garden
Langhorne
Olive Garden
Pittsburgh
Olive Garden
Houston
Olive Garden
Chesapeake
Olive Garden
Manassas
PA
PA
TX
VA
VA
Olive Garden
Silverdale
WA
Olive Garden
Morgantown
WV
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
1,171
1,545
819
970
1,560
973
1,382
1,965
1,752
1,765
3,144
6,603
4,053
3,717
1,422
2,902
2,252
2,585
2,015
2,199
—
—
—
—
—
—
—
—
—
—
4,315
8,148
4,872
4,687
2,982
3,875
3,634
4,550
3,767
3,964
(388)
7/28/2014
1995
(771)
7/28/2014
1992
(487)
7/28/2014
1991
(446)
7/28/2014
1996
(233)
7/28/2014
2003
(359)
7/28/2014
1994
(289)
7/28/2014
1991
(324)
7/28/2014
1993
(263)
7/28/2014
1993
(363)
7/28/2014
2006
Omnipoint
Communication
Indianapolis
IN
49,838
5,770
64,073
3,162
73,005
(17,688)
5/9/2013
2000
On the Border
Rogers
On the Border
Mesa
On the Border
Peoria
On the Border
Alpharetta
On the Border
Buford
On the Border
Naperville
On the Border
West
Springfield
On the Border
Auburn Hills
On the Border
Novi
AR
AZ
AZ
GA
GA
IL
MA
MI
MI
950
655
1,804
2,090
1,562
2,129
—
—
—
1,771
1,786
2,549
2,000
413
—
—
1,355
444
On the Border
Kansas City
MO
1,454
1,743
On the Border
Lees Summit
MO
1,200
1,647
On the Border
Concord Mills
NC
—
1,903
On the Border
Mount Laurel
NJ
713
1,446
On the Border
W. Windsor
NJ
2,433
1,489
On the Border
Columbus
OH
1,925
1,594
On the Border
Oklahoma City OK
On the Border
Tulsa
On the Border
Burleson
On the Border
College
Station
On the Border
Denton
On the Border
Desoto
OK
TX
TX
TX
TX
—
—
—
—
—
—
859
740
891
2,218
1,419
751
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,500
1,534
1,352
1,842
1,506
1,414
4,173
2,745
3,176
1,039
1,008
1,456
1,938
1,703
1,558
2,310
2,956
2,844
1,471
2,012
3,207
F-146
2,155
3,624
3,481
3,613
3,292
3,963
4,586
4,100
3,620
2,782
2,655
3,359
3,384
3,192
3,152
3,169
3,696
3,735
3,689
3,431
3,958
(463)
2/7/2014
2002
(476)
2/7/2014
1998
(383)
2/7/2014
1998
(566)
2/7/2014
1997
(470)
2/7/2014
2001
(514)
2/7/2014
1997
(1,217)
2/7/2014
1995
(784)
2/7/2014
1999
(881)
2/7/2014
1997
(393)
2/7/2014
1997
(373)
2/7/2014
2002
(501)
2/7/2014
2000
(596)
2/7/2014
2004
(691)
2/7/2014
1998
(556)
2/7/2014
1997
(720)
2/7/2014
1996
(899)
2/7/2014
1995
(855)
2/7/2014
2000
(450)
2/7/2014
1997
(616)
2/7/2014
2002
(923)
2/7/2014
1998
Property
City
State
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
On the Border
Ft. Worth
On the Border
Garland
On the Border
Lubbock
On the Border
Rockwall
On the Border
Woodbridge
TX
TX
TX
TX
VA
AL
KY
Oneonta
Louisville
Breaux Bridge
LA
Central
La Place
New Roads
Ravenna
Willard
Highlands
Houston
San Antonio
LA
LA
LA
OH
OH
TX
TX
TX
Christiansburg
VA
Laramie
WY
Alhambra
Fort Smith
Centennial
Jacksonville
Sebring
Fort Wayne
CA
AR
CO
FL
FL
IN
Lexington
KY
Baton Rouge
LA
Southgate
MI
Lees Summit
MO
Garner
NC
Las Cruces
NM
Boardman
Township
OH
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
O'Reilly Auto
Parts
Orora
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
—
—
—
—
—
52
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,213
2,757
4,054
3,937
2,698
593
1,367
877
1,019
1,161
912
1,281
1,014
1,094
1,235
1,469
1,355
1,441
(872)
2/7/2014
1999
(507)
2/7/2014
2007
(1,030)
2/7/2014
1994
(881)
2/7/2014
1999
(555)
2/7/2014
1998
(148)
8/2/2012
2000
(210)
2/7/2014
2011
(198)
2/7/2014
2009
(236)
2/7/2014
2010
(218)
2/7/2014
2008
(199)
2/7/2014
2008
(289)
2/7/2014
2010
(218)
2/7/2014
2011
(193)
2/7/2014
2010
(212)
2/7/2014
2010
(252)
2/7/2014
2010
(195)
2/7/2014
2010
(409)
10/12/2012
1999
15,873
(2,972)
1/24/2013
1966
2,837
2,775
3,031
2,676
1,717
3,216
2,014
3,529
1,521
2,905
2,085
3,317
(620)
2/7/2014
1999
(442)
2/7/2014
1996
(625)
2/7/2014
2001
(530)
2/7/2014
2001
(510)
2/7/2014
2000
(643)
2/7/2014
2002
(378)
2/7/2014
2001
(780)
2/7/2014
1994
(212)
2/7/2014
1999
(553)
2/7/2014
2004
(449)
2/7/2014
2000
(796)
2/7/2014
1995
—
—
—
—
—
—
—
—
—
—
—
—
—
485
560
703
646
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,222
1,065
375
693
1,799
81
573
139
104
342
175
144
137
281
340
439
562
144
7,143
841
1,378
770
981
733
1,077
742
787
901
1,088
536
575
2,991
1,692
3,679
3,244
899
460
794
738
915
819
737
1,137
877
813
895
1,030
793
1,297
8,730
1,996
1,397
2,261
1,695
984
2,139
1,272
2,742
620
1,817
1,549
2,742
F-147
Owens & Minor
Cleveland
Owens Corning
Newark
Owens Corning
Wichita Falls
TX
Property
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Outback
Steakhouse
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pantry Gas &
Convenience
Pearson
Education
City
State
Independence
OH
Pittsburgh
Conroe
Houston
Mcallen
Colonial
Heights
PA
TX
TX
TX
VA
Newport News
VA
Winchester
VA
OH
OH
Montgomery
AL
Charlotte
Charlotte
Charlotte
Charlotte
Conover
Cornelius
Lincolnton
Matthews
NC
NC
NC
NC
NC
NC
NC
NC
Thomasville
NC
Fort Mill
Lawrence
SC
KS
OH
VA
MO
AZ
CA
CA
CA
FL
Penske
Bedford
Peraton
Herndon
Petco
Petco
Lake Charles
LA
Dardenne
Prairie
PetSmart
Phoenix
PetSmart
Merced
PetSmart
PetSmart
Redding
Westlake
Village
PetSmart
Boca Raton
Initial Costs (1)
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
2,268
—
932
(932)
2,063
2,321
443
746
1,356
1,310
6,077
13,013
847
1,228
1,332
417
1,787
1,308
936
2,258
2,159
1,819
1,436
1,967
—
—
—
—
—
—
(4)
—
—
—
—
—
—
—
—
—
—
—
—
—
3,169
1,370
3,022
3,285
1,278
2,043
1,956
2,014
6,828
(546)
2/7/2014
2006
— 2/7/2014
1995
(553)
2/7/2014
2001
(625)
2/7/2014
1998
(136)
2/7/2014
1999
(553)
2/7/2014
2000
(670)
2/7/2014
1993
(711)
2/7/2014
2006
(1,287)
9/30/2014
2014
13,738
(2,884)
2/7/2014
2007
1,078
1,754
2,664
2,084
2,978
2,378
2,080
4,105
3,925
2,799
2,611
3,278
(185)
6/12/2014
1972
(381)
12/31/2012
1998
(413)
12/31/2012
2004
(129)
12/31/2012
1982
(554)
12/31/2012
1987
(406)
12/31/2012
1997
(290)
12/31/2012
1998
(700)
12/31/2012
1999
(670)
12/31/2012
2000
(564)
12/31/2012
1987
(445)
12/31/2012
2000
(610)
12/31/2012
1988
18,057
(3,435)
17,170
(1,910)
11/5/2013
1997
—
—
183
— 6/27/2013
1995
Land
901
1,370
959
964
835
1,297
600
704
755
725
231
526
1,332
1,667
1,191
1,070
1,144
1,847
1,766
980
1,175
1,311
2,548
183
1,384
53,584
(17,140)
37,828
(1,079)
11/5/2013
1999
Encumbrances
at
December 31,
2018
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,145
—
690
806
4,072
3,024
51,250
7,308
97,510
—
—
—
—
1,729
1,312
3,406
3,514
4,194
4,133
5,017
4,912
F-148
54
—
42
—
228
—
—
4,816
3,830
(969)
2/7/2014
2008
(699)
2/7/2014
2009
104,860
(19,625)
2/7/2014
1997
5,923
5,673
8,423
8,426
(987)
2/7/2014
1993
(1,068)
2/7/2014
1989
(1,137)
2/7/2014
1998
(1,198)
2/7/2014
2001
Property
City
State
PetSmart
Lake Mary
PetSmart
Plantation
PetSmart
Tallahassee
PetSmart
Evanston
PetSmart
Braintree
PetSmart
Oxon Hill
PetSmart
Flint
FL
FL
FL
IL
MA
MD
MI
PetSmart
Lee'S Summit
MO
PetSmart
Sedalia
PetSmart
PetSmart
Parma
Dallas
PetSmart
Southlake
Oak Creek
Lawrenceville
NJ
MO
OH
TX
TX
WI
IL
IL
IL
IL
IN
TX
AZ
FL
FL
GA
GA
GA
KY
Aurora
Glendale
Heights
New Lenox
Plainfield
Mishawaka
Page
Cooper City
Marathon
Eatonton
Greensboro
Jackson
Louisville
Salisbury
MD
Dearborn
Bozeman
Glasgow
Livingston
MI
MT
MT
MT
PetSmart
Physicians
Dialysis
Physicians
Immediate Care
Physicians
Immediate Care
Physicians
Immediate Care
Physicians
Immediate Care
Physicians
Immediate Care
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pier 1 Imports
Victoria
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,430
965
1,468
1,120
2,805
1,722
606
781
273
1,288
470
1,063
906
633
1,043
487
535
590
252
457
66
320
530
353
569
673
539
245
284
150
120
130
2,556
5,302
1,387
6,007
8,398
4,389
3,839
3,381
3,645
3,527
6,089
7,093
3,578
2,757
1,346
2,256
1,884
1,747
1,351
1,767
263
466
187
353
465
735
499
734
528
343
217
245
F-149
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,986
6,267
2,855
7,127
(632)
2/7/2014
1997
(1,232)
2/7/2014
2001
(355)
2/7/2014
1998
(1,359)
2/7/2014
2001
11,203
(1,850)
2/7/2014
1996
6,111
4,445
4,162
3,918
4,815
6,559
8,156
4,484
3,390
2,389
2,743
2,419
2,337
1,603
2,224
329
786
717
706
1,034
1,408
1,038
979
812
493
337
375
(1,025)
2/7/2014
1998
(893)
2/7/2014
1996
(95)
1/5/2018
2017
(122)
11/1/2017
2017
(817)
2/7/2014
1996
(1,325)
2/7/2014
1998
(1,576)
2/7/2014
1998
(160)
8/25/2017
2016
(588)
2/7/2014
2009
(377)
2/7/2014
2003
(597)
2/7/2014
1997
(509)
2/7/2014
2011
(468)
2/7/2014
2011
(395)
2/7/2014
2013
(471)
2/7/2014
2011
(74)
7/31/2013
1977
(140)
6/27/2013
1995
(56)
6/27/2013
1995
(99)
7/31/2013
1988
(131)
7/31/2013
1989
(218)
6/27/2013
1987
(148)
6/27/2013
1975
(206)
7/31/2013
1983
(148)
7/31/2013
1977
(103)
6/27/2013
1995
(65)
6/27/2013
1995
(74)
6/27/2013
1995
Property
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
City
State
East Syracuse
NY
Bowling Green OH
Defiance
Delaware
Middleburg
Hts
OH
OH
OH
North Olmsted
OH
Norwalk
Sandusky
Strongsville
Toledo
Batesburg
Bishopville
Cheraw
Columbia
Edgefield
Laurens
Pageland
Saluda
Santee
St. George
West
Columbia
Box Elder
Knoxville
Amarillo
Amarillo
Crystal City
OH
OH
OH
OH
SC
SC
SC
SC
SC
SC
SC
SC
SC
SC
SC
SD
TN
TX
TX
TX
Fort Stockton
TX
Midland
Midland
Monahans
Odessa
Odessa
TX
TX
TX
TX
TX
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
137
141
114
270
128
122
77
140
74
58
261
365
415
881
221
454
344
346
371
367
507
68
300
339
254
148
252
414
506
361
456
588
185
262
197
721
156
153
115
171
108
173
484
365
507
588
410
371
420
346
248
245
415
217
546
1,016
1,015
453
1,007
506
619
671
847
882
F-150
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
322
403
311
991
284
275
192
311
182
231
745
730
922
(55)
6/27/2013
1978
(73)
7/31/2013
1979
(58)
6/27/2013
1977
(213)
6/27/2013
1975
(44)
7/31/2013
1985
(45)
6/27/2013
1977
(32)
7/31/2013
1977
(48)
7/31/2013
1982
(32)
6/27/2013
1977
(51)
6/27/2013
1978
(136)
7/31/2013
1987
(103)
7/31/2013
1987
(142)
7/31/2013
1984
1,469
(165)
7/31/2013
1977
631
825
764
692
619
612
922
285
846
1,355
1,269
601
1,259
920
1,125
1,032
1,303
1,470
(115)
7/31/2013
1986
(104)
7/31/2013
1989
(118)
7/31/2013
1999
(97)
7/31/2013
1995
(69)
7/31/2013
1972
(69)
7/31/2013
1980
(116)
7/31/2013
1980
(64)
6/27/2013
1985
(164)
6/27/2013
1995
(285)
7/31/2013
1976
(285)
7/31/2013
1980
(134)
6/27/2013
1981
(282)
7/31/2013
2008
(142)
7/31/2013
1975
(174)
7/31/2013
1978
(188)
7/31/2013
1979
(238)
7/31/2013
1976
(247)
7/31/2013
1972
Initial Costs (1)
City
State
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Odessa
Odessa
Odessa
Pecos
Stamford
Cedar City
Kanab
Ashland
Bedford
Chester
TX
TX
TX
TX
TX
UT
UT
VA
VA
VA
Christiansburg
VA
Clifton Forge
VA
Colonial
Heights
Hampton
Hopewell
VA
VA
VA
Newport News
VA
Newport News
VA
Petersburg
Richmond
Richmond
Abbotsford
Antigo
Clintonville
Eagle River
Hayward
Merrill
Neilsville
Plover
VA
VA
VA
WI
WI
WI
WI
WI
WI
WI
WI
Stevens Point
WI
Tomahawk
Waupaca
WI
WI
Beckley
WV
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
572
627
457
387
38
52
52
589
548
473
494
287
311
641
707
394
394
378
666
311
159
45
208
28
51
83
35
85
130
35
61
160
572
766
685
719
115
361
210
1,093
670
1,104
918
861
311
345
864
591
591
701
814
311
195
252
69
159
205
531
106
199
390
81
91
131
F-151
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
100
—
—
—
(100)
—
100
100
—
35
—
1,144
1,393
1,142
1,106
153
413
262
1,682
1,218
1,577
1,412
1,148
622
986
(161)
7/31/2013
1976
(215)
7/31/2013
1979
(192)
7/31/2013
1976
(202)
7/31/2013
1974
(32)
7/31/2013
1995
(107)
6/27/2013
1978
(59)
7/31/2013
1989
(307)
7/31/2013
1989
(188)
7/31/2013
1977
(310)
7/31/2013
1983
(258)
7/31/2013
1982
(241)
7/31/2013
1978
(87)
7/31/2013
1991
(97)
7/31/2013
1977
1,571
(242)
7/31/2013
1985
985
985
1,079
1,480
622
354
397
277
187
256
514
141
384
620
116
187
291
(166)
7/31/2013
1969
(166)
7/31/2013
1970
(197)
7/31/2013
1979
(228)
7/31/2013
1978
(87)
7/31/2013
1991
(55)
7/31/2013
1980
(87)
7/31/2013
1997
(19)
7/31/2013
1978
(45)
7/31/2013
1991
(58)
7/31/2013
1993
(113)
7/31/2013
1980
(30)
7/31/2013
1995
(72)
7/31/2013
1995
(129)
7/31/2013
1995
(23)
7/31/2013
1986
(37)
7/31/2013
1991
(37)
7/31/2013
1977
Property
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Pizza Hut/
WingStreet
Property
Pizza Hut/
WingStreet
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
PLS Check
Cashers
City
State
Huntington
WV
Mesa
Phoenix
Tucson
Compton
Calumet Park
Chicago
Dallas
Dallas
Fort Worth
AZ
AZ
AZ
CA
IL
IL
TX
TX
TX
Grand Prairie
TX
Houston
Mesquite
Kenosha
TX
TX
WI
NJ
PNC Bank
Woodbury
PNC Bank
Cincinnati
OH
Pollo Tropical
Davie
Pollo Tropical
Fort
Lauderdale
Pollo Tropical
Lake Worth
Ponderosa
Scottsburg
Popeyes
Brandon
Popeyes
Carol City
Popeyes
Jacksonville
Popeyes
Lakeland
Popeyes
Miami
Popeyes
Orlando
Popeyes
Pensacola
Popeyes
Popeyes
Popeyes
Starke
Tampa
Tampa
FL
FL
FL
IN
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
Popeyes
Winter Haven
FL
Popeyes
Thomasville
GA
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
190
187
288
264
475
306
451
197
169
187
385
158
261
190
465
195
280
190
280
430
776
423
781
830
220
782
301
380
216
673
484
110
4
759
677
800
107
1,003
127
1,356
1,180
1,473
1,056
1,293
1,388
693
2,633
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
538
(304)
—
—
—
—
—
—
—
—
—
—
—
614
—
—
—
—
1,490
1,242
1,182
141
961
1,090
955
830
330
955
673
—
508
1,065
1,001
705
F-152
194
946
965
1,064
582
1,309
578
1,553
1,349
1,660
1,441
1,451
1,649
883
3,098
429
1,770
1,432
1,462
571
1,737
1,513
1,736
1,660
550
1,737
974
994
724
1,738
1,485
815
(1)
7/31/2013
1995
(262)
2/7/2014
2006
(220)
2/7/2014
2006
(285)
2/7/2014
2005
(88)
2/7/2014
2005
(338)
2/7/2014
2005
(107)
2/7/2014
2001
(367)
2/7/2014
1983
(322)
2/7/2014
2003
(385)
2/7/2014
2003
(286)
2/7/2014
1971
(320)
2/7/2014
2005
(404)
2/7/2014
2006
(207)
2/7/2014
2005
(744)
1/8/2014
1971
(5)
1/8/2014
1979
(437)
6/27/2013
1995
(364)
6/27/2013
1995
(347)
6/27/2013
1995
(43)
6/27/2013
1985
(285)
6/27/2013
1978
(301)
1/8/2014
1979
(268)
7/31/2013
1955
(233)
7/31/2013
1999
(93)
7/31/2013
1962
(268)
7/31/2013
2004
(186)
1/8/2014
2001
(46)
6/27/2013
1995
(141)
1/8/2014
1981
(316)
6/27/2013
1976
(297)
6/27/2013
1976
(207)
6/27/2013
1995
Property
City
State
Popeyes
Valdosta
GA
Popeyes
Baton Rouge
LA
Popeyes
Bayou Vista
Popeyes
Eunice
Popeyes
Franklin
Popeyes
Lafayette
Popeyes
Lafayette
Popeyes
Marksville
Popeyes
Ferguson
Popeyes
St. Louis
Popeyes
St. Louis
Popeyes
Greenville
Popeyes
Grenada
Popeyes
Popeyes
Omaha
Omaha
Popeyes
Eatontown
Popeyes
Austin
LA
LA
LA
LA
LA
LA
MO
MO
MO
MS
MS
NE
NE
NJ
TX
Popeyes
Channelview
TX
Popeyes
Houston
Popeyes
Houston
Popeyes
Houston
Popeyes
Houston
Popeyes
Nederland
Popeyes
Orange
Popeyes
Port Arthur
TX
TX
TX
TX
TX
TX
TX
Popeyes
Newport News
VA
Popeyes
Portsmouth
Price Rite
Rochester
VA
NY
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
(579)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
839
717
1,084
1,273
821
1,333
1,374
1,616
511
129
719
(176)
6/27/2013
1995
(111)
7/31/2013
1999
(210)
6/27/2013
1985
(250)
7/31/2013
1986
(159)
6/27/2013
1985
(266)
6/27/2013
1993
(267)
6/27/2013
1996
(334)
6/27/2013
1987
(108)
7/31/2013
1984
— 6/27/2013
1959
(121)
7/31/2013
1978
1,490
(289)
6/27/2013
1984
535
858
879
1,447
1,749
621
642
536
277
505
1,113
1,303
997
598
599
(127)
1/8/2014
2007
(144)
7/31/2013
1996
(173)
7/31/2013
1985
(223)
7/31/2013
1987
(158)
6/27/2013
1996
(118)
6/27/2013
1995
(133)
6/27/2013
1995
(68)
7/31/2013
1976
(47)
7/31/2013
1976
(64)
7/31/2013
1978
(187)
7/31/2013
1988
(238)
7/31/2013
1984
(174)
6/27/2013
1984
(64)
6/27/2013
2002
(68)
6/27/2013
2002
4,163
(1,277)
9/27/2012
1965
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3,080
240
323
375
382
283
434
473
487
128
248
288
513
77
343
264
651
1,216
220
190
295
111
278
445
456
408
381
369
569
599
394
709
891
538
899
901
1,129
383
460
431
977
458
515
615
796
533
401
452
241
166
227
668
847
589
217
230
3,594
F-153
Property
City
State
Publix
Birmingham
AL
Pulte Mortgage
Englewood
CO
Qdoba Mexican
Grill
Qdoba Mexican
Grill
Quincy's Family
Steakhouse
Flint
Grand Blanc
Monroe
RaceTrac
Bessemer
RaceTrac
Mobile
RaceTrac
Bellview
RaceTrac
Jacksonville
RaceTrac
Leesburg
RaceTrac
Atlanta
RaceTrac
Denton
RaceTrac
Houston
RaceTrac
Houston
Rally's
Rally's
Rally's
Rally's
Rally's
Rally's
Rally's
Rally's
Indianapolis
Indianapolis
Indianapolis
Kokomo
Muncie
New Orleans
New Orleans
Hamtramck
Red Lobster
Birmingham
Red Lobster
Dothan
Red Lobster
Huntsville
Red Lobster
Montgomery
MI
MI
NC
AL
AL
FL
FL
FL
GA
TX
TX
TX
IN
IN
IN
IN
IN
LA
LA
MI
AL
AL
AL
AL
Red Lobster
Vestavia Hills
AL
Red Lobster
Fort Smith
Red Lobster
Red Lobster
Hot Springs
North Little
Rock
Red Lobster
Pine Bluff
Red Lobster
Chandler
Red Lobster
Flagstaff
AR
AR
AR
AR
AZ
AZ
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
934
6,377
165
7,476
(1,695)
2/7/2014
2004
2,563
22,026
110
165
560
761
580
684
1,065
1,188
1,025
1,030
1,209
1,203
210
1,168
1,168
290
310
450
220
230
—
726
1,098
1,034
1,257
1,643
928
999
226
—
891
990
935
458
2,624
1,317
3,831
2,863
2,711
1,511
2,645
1,204
1,509
1,514
—
—
548
1,196
1,691
1,018
1,020
741
1,244
2,330
1,413
1,417
1,228
1,593
1,906
1,194
252
514
F-154
—
—
—
(245)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24,589
(5,628)
11/5/2013
2009
1,100
1,100
773
3,385
1,897
4,515
3,928
3,899
2,536
3,675
2,413
2,712
1,724
1,168
1,168
838
1,506
2,141
1,238
1,250
741
1,970
3,428
2,447
2,674
2,871
2,521
2,905
1,420
252
1,405
(372)
3/29/2013
2006
(352)
3/29/2013
2006
(72)
7/31/2013
1978
(700)
2/7/2014
(350)
2/7/2014
(1,061)
2/7/2014
(856)
2/7/2014
(821)
2/7/2014
(427)
2/7/2014
(672)
2/7/2014
(314)
2/7/2014
(395)
2/7/2014
2003
1998
2007
2011
2007
2004
2003
1995
1997
(444)
6/27/2013
1995
— 7/31/2013
2005
— 7/31/2013
2005
(161)
6/27/2013
1995
(351)
6/27/2013
1995
(496)
6/27/2013
1995
(298)
6/27/2013
1995
(299)
6/27/2013
1995
(176)
7/28/2014
1972
(217)
7/28/2014
1979
(322)
7/28/2014
1975
(241)
7/28/2014
1983
(204)
7/28/2014
1972
(227)
7/28/2014
1980
(303)
7/28/2014
1994
(295)
7/28/2014
1981
(254)
7/28/2014
1995
(165)
7/28/2014
2000
(182)
7/28/2014
1996
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Red Lobster
Gilbert
Red Lobster
Surprise
Red Lobster
Tucson
Red Lobster
Bakersfield
Red Lobster
Chula Vista
Red Lobster
Fremont
Red Lobster
Inglewood
Red Lobster
Oceanside
Red Lobster
Palm Desert
Red Lobster
Riverside
Red Lobster
San Bruno
Red Lobster
San Diego
Red Lobster
Red Lobster
Valencia
Colorado
Springs
Red Lobster
Bridgeport
Red Lobster
Danbury
Red Lobster
Newark
Red Lobster
Red Lobster
Altamonte
Springs
Boynton
Beach
Red Lobster
Fort Pierce
Red Lobster
Hollywood
Red Lobster
Kissimmee
Red Lobster
Leesburg
Red Lobster
Miami
Red Lobster
Orlando
Red Lobster
Panama City
Red Lobster
Pembroke
Pines
Red Lobster
Plantation
AZ
AZ
AZ
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CO
CT
CT
DE
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
Red Lobster
Port Charlotte
FL
Red Lobster
Sebring
FL
Red Lobster
Winter Haven
FL
Red Lobster
Athens
Red Lobster
Austell
GA
GA
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,638
—
—
1,132
914
—
—
—
—
—
—
—
1,212
—
618
—
—
721
—
—
—
479
1,975
1,476
1,003
1,055
669
—
460
565
676
731
1,671
564
2,211
1,529
1,321
2,459
1,611
1,113
841
1,512
323
159
1,515
1,674
1,631
1,491
2,282
1,364
1,262
1,062
1,188
1,515
3,126
1,733
1,516
1,487
2,217
2,027
1,092
F-155
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
460
565
676
731
1,671
2,202
2,211
1,529
2,453
3,373
1,611
1,113
841
1,512
323
159
1,515
2,886
1,631
2,109
2,282
1,364
1,983
1,062
1,188
1,515
3,605
3,708
2,992
2,490
3,272
2,696
1,092
(212)
7/28/2014
2007
(238)
7/28/2014
2003
(238)
7/28/2014
2009
(272)
7/28/2014
2003
(361)
7/28/2014
1988
(131)
7/28/2014
1984
(538)
7/28/2014
2007
(345)
7/28/2014
2010
(277)
7/28/2014
2012
(338)
7/28/2014
1988
(479)
7/28/2014
1992
(499)
7/28/2014
1988
(389)
7/28/2014
1988
(344)
7/28/2014
2004
(172)
7/28/2014
1996
(123)
7/28/2014
1996
(429)
7/28/2014
2006
(273)
7/28/2014
1986
(412)
7/28/2014
2008
(284)
7/28/2014
1995
(596)
7/28/2014
2003
(440)
7/28/2014
2002
(245)
7/28/2014
1990
(400)
7/28/2014
2003
(427)
7/28/2014
1989
(382)
7/28/2014
1976
(446)
7/28/2014
1987
(295)
7/28/2014
1989
(269)
7/28/2014
1990
(254)
7/28/2014
1992
(284)
7/28/2014
1972
(266)
7/28/2014
1971
(301)
7/28/2014
2001
Initial Costs (1)
Property
City
State
Red Lobster
Buford
Red Lobster
Cartersville
Red Lobster
Columbus
Red Lobster
Dalton
Red Lobster
Decatur
GA
GA
GA
GA
GA
Red Lobster
Douglasville
GA
Red Lobster
Jonesboro
Red Lobster
Kennesaw
Red Lobster
Rome
Red Lobster
Roswell
Red Lobster
Savannah
Red Lobster
Tucker
Red Lobster
Cedar Rapids
Red Lobster
Davenport
Red Lobster
Boise
Red Lobster
Pocatello
Red Lobster
Alton
Red Lobster
Aurora
Red Lobster
Chicago
Red Lobster
Red Lobster
Danville
Fairview
Heights
Red Lobster
Forsyth
Red Lobster
Gurnee
Red Lobster
Marion
Red Lobster
Matteson
Red Lobster
Norridge
Red Lobster
Oak Lawn
Red Lobster
Orland Park
Red Lobster
Peru
Red Lobster
Schaumburg
Red Lobster
Springfield
Red Lobster
West Dundee
GA
GA
GA
GA
GA
GA
IA
IA
ID
ID
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
Red Lobster
Anderson
IN
Encumbrances
at
December 31,
2018
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Land
1,315
594
956
775
1,102
1,356
1,049
1,382
961
2,358
475
—
—
619
—
—
1,251
1,598
1,064
253
—
—
1,735
399
962
—
1,825
1,046
339
—
1,205
197
813
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,638
1,386
1,957
2,045
1,873
1,161
1,678
1,802
911
354
2,236
1,718
495
2,896
714
773
1,854
782
2,422
1,580
1,806
1,083
2,286
2,399
2,212
929
2,316
2,489
1,169
665
1,253
2,195
1,272
F-156
3,953
1,980
2,913
2,820
2,975
2,517
2,727
3,184
1,872
2,712
2,711
1,718
495
3,515
714
773
3,105
2,380
3,486
1,833
1,806
1,083
4,021
2,798
3,174
929
4,141
3,535
1,508
665
2,458
2,392
2,085
(408)
7/28/2014
2000
(257)
7/28/2014
1996
(330)
7/28/2014
2005
(314)
7/28/2014
1995
(258)
7/28/2014
1973
(225)
7/28/2014
1991
(233)
7/28/2014
1972
(283)
7/28/2014
1987
(174)
7/28/2014
1979
(108)
7/28/2014
1981
(299)
7/28/2014
1971
(435)
7/28/2014
1973
(245)
7/28/2014
1981
(388)
7/28/2014
1975
(262)
7/28/2014
1988
(401)
7/28/2014
1994
(282)
7/28/2014
1983
(149)
7/28/2014
1979
(335)
7/28/2014
1980
(294)
7/28/2014
1991
(811)
7/28/2014
1972
(324)
7/28/2014
1975
(319)
7/28/2014
1980
(378)
7/28/2014
1992
(298)
7/28/2014
1976
(449)
7/28/2014
1979
(311)
7/28/2014
1975
(348)
7/28/2014
1980
(235)
7/28/2014
1995
(226)
7/28/2014
1976
(218)
7/28/2014
1977
(313)
7/28/2014
1982
(216)
7/28/2014
1982
Property
City
State
Red Lobster
Avon
Red Lobster
Elkhart
Red Lobster
Evansville
Red Lobster
Kokomo
Red Lobster
Mishawaka
Red Lobster
Muncie
Red Lobster
Richmond
Red Lobster
Terre Haute
IN
IN
IN
IN
IN
IN
IN
IN
Red Lobster
Elizabethtown
KY
Red Lobster
Lexington
Red Lobster
Owensboro
KY
KY
Red Lobster
St. Matthews
KY
Red Lobster
Baton Rouge
Red Lobster
Monroe
Red Lobster
Annapolis
Red Lobster
Frederick
Red Lobster
Lanham
LA
LA
MD
MD
MD
Red Lobster
Owings Mills
MD
Red Lobster
Salisbury
Red Lobster
Suitland
Red Lobster
Battle Creek
Red Lobster
Dearborn
Heights
Red Lobster
Flint
Red Lobster
Jackson
Red Lobster
Kentwood
Red Lobster
Lansing
Red Lobster
Livonia
Red Lobster
Mt. Pleasant
Red Lobster
Novi
Red Lobster
Portage
Red Lobster
Saginaw
Red Lobster
Southgate
Red Lobster
Traverse City
MD
MD
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
MI
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
616
587
394
593
627
371
1,066
866
—
815
1,640
—
455
—
—
—
—
1,070
1,090
202
822
505
235
819
—
635
508
2,061
396
335
611
1,036
864
1,657
3,357
1,835
2,205
1,427
1,416
2,640
401
1,094
1,485
1,841
1,535
2,022
644
319
455
229
1,868
3,112
1,827
2,156
2,266
2,174
1,606
1,534
1,824
1,346
1,847
2,496
1,961
2,531
1,121
F-157
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
864
2,273
3,944
2,229
2,798
2,054
1,787
3,706
1,267
1,094
2,300
3,481
1,535
2,477
644
319
455
229
2,938
4,202
2,029
2,978
2,771
2,409
2,425
1,534
2,459
1,854
3,908
2,892
2,296
3,142
2,157
(324)
7/28/2014
2001
(391)
9/19/2014
1993
(441)
7/28/2014
1972
(274)
7/28/2014
1980
(307)
7/28/2014
1974
(189)
7/28/2014
1975
(273)
7/28/2014
1996
(355)
7/28/2014
1972
(179)
7/28/2014
2003
(318)
7/28/2014
2011
(250)
7/28/2014
1982
(258)
7/28/2014
1972
(390)
7/28/2014
2011
(327)
7/28/2014
1991
(189)
7/28/2014
1985
(185)
7/28/2014
1997
(200)
7/28/2014
1980
(128)
7/28/2014
1989
(321)
7/28/2014
1992
(399)
7/28/2014
1975
(280)
7/28/2014
1979
(305)
7/28/2014
1975
(325)
7/28/2014
1976
(310)
7/28/2014
1976
(243)
7/28/2014
1975
(390)
7/28/2014
1976
(299)
7/28/2014
1987
(261)
7/28/2014
1993
(295)
7/28/2014
1983
(341)
7/28/2014
1975
(287)
7/28/2014
1975
(389)
7/28/2014
1990
(244)
7/28/2014
1996
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
349
867
—
1,291
1,496
1,128
—
518
593
—
1,023
2,656
1,642
1,674
1,298
1,074
2,003
1,762
1,466
1,092
1,510
1,002
—
—
—
—
—
—
—
—
—
—
—
3,005
2,509
1,674
2,589
2,570
3,131
1,762
1,984
1,685
1,510
2,025
(360)
7/28/2014
1975
(298)
7/28/2014
1993
(366)
7/28/2014
1987
(185)
7/28/2014
1975
(168)
7/30/2014
2000
(287)
7/28/2014
1973
(488)
7/28/2014
1973
(221)
7/28/2014
1975
(197)
7/28/2014
1995
(588)
7/28/2014
1972
(179)
7/28/2014
1979
Property
City
State
Red Lobster
Warren
Red Lobster
Mankato
Red Lobster
Rochester
Red Lobster
Roseville
Red Lobster
Branson
Red Lobster
Bridgeton
MI
MN
MN
MN
MO
MO
Red Lobster
Chesterfield
MO
Red Lobster
Crestwood
MO
Red Lobster
Jefferson City
MO
Red Lobster
Springfield
Red Lobster
St. Joseph
MO
MO
F-158
Property
City
Red Lobster
St. Peters
Red Lobster
St.Louis
Red Lobster
Jackson
Red Lobster
Meridian
Red Lobster
Asheville
Red Lobster
Cary
Red Lobster
Concord
Red Lobster
Fayetteville
Red Lobster
Greensboro
Red Lobster
Raleigh
Red Lobster
Bismarck
Red Lobster
Fargo
Red Lobster
Kearney
Red Lobster
Lincoln
Red Lobster
Cherry Hill
Red Lobster
Deptford
Red Lobster
Vineland
State
MO
MO
MS
MS
NC
NC
NC
NC
NC
NC
ND
ND
NE
NE
NJ
NJ
NJ
Red Lobster
Clovis
NM
Red Lobster
Farmington
NM
Red Lobster
Amherst
Red Lobster
Brooklyn
Red Lobster
Hicksville
Red Lobster
Liverpool
Red Lobster
Rochester
NY
NY
NY
NY
NY
Red Lobster
Ronkonkoma
NY
Red Lobster
Valley Stream
NY
Red Lobster
Vestal
Red Lobster
Watertown
Red Lobster
Yonkers
Red Lobster
Akron
NY
NY
NY
OH
Red Lobster
Beavercreek
OH
Red Lobster
Canton
OH
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,387
1,128
—
544
1,933
—
675
1,372
946
831
888
678
—
—
—
—
—
855
1,344
—
—
900
756
—
—
1,027
807
—
—
551
398
1,543
2,662
2,851
872
2,865
1,118
1,506
2,908
1,785
2,183
3,321
2,933
1,109
254
2,274
1,608
1,779
318
2,287
1,271
5,897
870
2,088
2,122
1,109
1,417
2,255
1,586
894
1,398
2,334
2,596
F-159
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,543
4,049
3,979
872
3,409
3,051
1,506
3,583
3,157
3,129
4,152
3,821
1,787
254
2,274
1,608
1,779
318
3,142
2,615
5,897
870
2,988
2,878
1,109
1,417
3,282
2,393
894
1,398
2,885
2,994
(614)
7/28/2014
1976
(350)
7/28/2014
1972
(392)
7/28/2014
1977
(267)
7/28/2014
1996
(390)
7/28/2014
1980
(235)
7/28/2014
1992
(462)
7/28/2014
2002
(356)
7/28/2014
1978
(258)
7/28/2014
1972
(288)
7/28/2014
1983
(437)
7/28/2014
1990
(403)
7/28/2014
1981
(240)
7/28/2014
1996
(116)
7/28/2014
1977
(670)
7/28/2014
1984
(503)
7/28/2014
1991
(411)
7/28/2014
1995
(162)
7/28/2014
1995
(363)
7/28/2014
1992
(237)
7/28/2014
1980
(1,535)
7/28/2014
2003
(276)
7/28/2014
1982
(305)
7/28/2014
1975
(345)
7/28/2014
1985
(346)
7/28/2014
2005
(457)
7/28/2014
1983
(322)
7/28/2014
1976
(297)
7/28/2014
1993
(288)
7/28/2014
2012
(418)
7/28/2014
1981
(368)
7/28/2014
1994
(337)
7/28/2014
1974
Property
City
State
Encumbrances
at
December 31,
2018
Red Lobster
Cincinnati
Red Lobster
Cincinnati
Red Lobster
Columbus
Red Lobster
Red Lobster
Columbus
Cuyahoga
Falls
Red Lobster
Dublin
Red Lobster
Lancaster
Red Lobster
Lima
Red Lobster
Mansfield
Red Lobster
Mentor
Red Lobster
Miamisburg
Red Lobster
New
Philadelphia
Red Lobster
Niles
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
Red Lobster
North Olmsted
OH
Red Lobster
Parma
Red Lobster
Sandusky
OH
OH
Red Lobster
St. Clairsville
OH
Red Lobster
Wooster
OH
Red Lobster
Youngstown
OH
Red Lobster
Muskogee
OK
Red Lobster
Oklahoma City OK
Red Lobster
Oklahoma City OK
Red Lobster
Shawnee
OK
Red Lobster
Bartonsville
PA
Red Lobster
Chambersburg
PA
Red Lobster
Du Bois
Red Lobster
Greensburg
Red Lobster
Hanover
Red Lobster
Lancaster
Red Lobster
Langhorne
Red Lobster
Mechanicsbur
g
Red Lobster
Philadelphia
PA
PA
PA
PA
PA
PA
PA
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Initial Costs (1)
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,687
2,344
1,100
2,123
2,511
873
1,570
658
1,697
2,129
2,615
1,349
1,799
2,291
2,156
1,126
853
1,205
2,477
1,707
2,681
1,960
1,744
2,389
1,212
981
2,432
1,870
2,968
2,735
2,656
1,902
F-160
3,171
2,709
1,100
2,910
2,817
873
2,307
1,501
2,032
2,780
3,227
1,581
1,799
2,291
2,622
2,416
853
1,405
2,691
2,106
3,291
2,760
2,181
2,389
1,906
1,298
3,180
2,316
2,968
3,714
3,332
1,902
(232)
7/28/2014
1977
(313)
7/28/2014
1980
(366)
7/28/2014
2002
(286)
7/28/2014
1973
(328)
7/28/2014
1974
(255)
7/28/2014
1990
(263)
7/28/2014
1991
(181)
7/28/2014
1991
(247)
7/28/2014
1977
(299)
7/30/2014
1977
(323)
7/28/2014
1974
(251)
7/28/2014
1991
(465)
7/28/2014
1982
(519)
7/28/2014
1974
(293)
7/28/2014
1975
(210)
7/30/2014
1986
(386)
7/28/2014
1997
(243)
7/28/2014
1995
(346)
7/28/2014
1982
(301)
7/28/2014
1995
(355)
7/28/2014
1980
(303)
7/28/2014
1991
(281)
7/28/2014
1995
(540)
7/28/2014
2010
(246)
7/28/2014
1991
(216)
7/28/2014
1995
(342)
7/28/2014
1989
(317)
7/28/2014
1995
(580)
7/28/2014
1977
(423)
7/28/2014
1996
(360)
7/28/2014
1976
(388)
7/28/2014
1977
Land
1,484
365
—
787
306
—
737
843
335
651
612
232
—
—
466
1,290
—
200
214
399
610
800
437
—
694
317
748
446
—
979
676
—
Initial Costs (1)
Property
City
State
Red Lobster
Pittsburgh
Red Lobster
Pittsburgh
Red Lobster
Pottstown
Red Lobster
Scranton
Red Lobster
Springfield
PA
PA
PA
PA
PA
Red Lobster
State College
PA
Red Lobster
Washington
Red Lobster
Whitehall
Red Lobster
Aiken
Red Lobster
Columbia
Red Lobster
Florence
PA
PA
SC
SC
SC
Red Lobster
Myrtle Beach
SC
Red Lobster
Spartanburg
Red Lobster
Sumter
Red Lobster
Chattanooga
Red Lobster
Clarksville
Red Lobster
Jackson
Red Lobster
Memphis
Red Lobster
Sevierville
Red Lobster
Abilene
Red Lobster
Amarillo
Red Lobster
Burleson
Red Lobster
College
Station
Red Lobster
Conroe
Red Lobster
Denton
Red Lobster
Duncanville
Red Lobster
El Paso
Red Lobster
El Paso
Red Lobster
Fort Worth
Red Lobster
Houston
Red Lobster
Houston
Red Lobster
Humble
SC
SC
TN
TN
TN
TN
TN
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
Encumbrances
at
December 31,
2018
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Land
—
1,641
—
—
1,571
—
—
—
780
—
779
—
—
988
1,548
543
822
1,602
—
209
590
—
—
—
832
361
—
—
—
—
960
—
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,379
1,096
1,115
1,563
2,344
1,026
694
2,155
1,247
918
1,506
462
1,136
1,117
2,575
2,223
1,427
2,290
1,062
1,976
2,342
356
643
557
2,044
2,658
414
883
239
399
1,833
1,087
F-161
1,379
2,737
1,115
1,563
3,915
1,026
694
2,155
2,027
918
2,285
462
1,136
2,105
4,123
2,766
2,249
3,892
1,062
2,185
2,932
356
643
557
2,876
3,019
414
883
239
399
2,793
1,087
(423)
7/28/2014
1976
(188)
7/28/2014
1987
(540)
7/28/2014
1995
(522)
7/28/2014
2001
(364)
7/28/2014
1983
(438)
7/28/2014
1999
(200)
7/28/2014
1976
(683)
7/28/2014
1977
(236)
7/28/2014
1991
(271)
7/28/2014
1980
(269)
7/28/2014
1990
(221)
7/28/2014
2006
(265)
7/28/2014
1973
(241)
7/28/2014
1995
(318)
7/28/2014
1972
(326)
7/28/2014
1990
(276)
7/28/2014
1995
(306)
7/28/2014
1972
(371)
7/28/2014
2002
(289)
7/30/2014
1980
(319)
7/28/2014
1976
(190)
7/28/2014
2003
(201)
7/28/2014
1983
(228)
7/28/2014
2011
(339)
7/28/2014
1991
(351)
7/28/2014
1974
(208)
7/28/2014
1976
(271)
7/28/2014
2008
(120)
7/28/2014
1982
(201)
7/28/2014
1974
(269)
7/28/2014
1981
(291)
7/28/2014
1980
Property
City
State
Red Lobster
Killeen
Red Lobster
Laredo
Red Lobster
Lewisville
Red Lobster
Longview
Red Lobster
Mcallen
Red Lobster
Mcallen
Red Lobster
San Antonio
Red Lobster
Sugar Land
Red Lobster
Layton
Red Lobster
Bristol
TX
TX
TX
TX
TX
TX
TX
TX
UT
VA
Red Lobster
Charlottesville
VA
Red Lobster
Chesapeake
VA
Red Lobster
Harrisonburg
VA
Red Lobster
Manassas
Red Lobster
Midlothian
Red Lobster
Sterling
Red Lobster
Winchester
Red Lobster
Olympia
Red Lobster
Silverdale
Red Lobster
Spokane
VA
VA
VA
VA
WA
WA
WA
Red Lobster
Ashwaubenon WI
Red Lobster
Mt. Pleasant
Red Lobster
Wauwatosa
WI
WI
Red Lobster
Charleston
WV
Red Lobster
Huntington
WV
Red Lobster
Morgantown
WV
Red Lobster
Parkersburg
WV
Red Lobster
Casper
Red Lobster
Cheyenne
Red Oak Village
San Marcos
Reef Services,
LLC
Gainesville
WY
WY
TX
TX
Regal Cinemas
Christiansburg
VA
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
732
—
1,087
324
1,175
960
—
—
1,577
816
—
1,262
465
1,800
—
—
—
—
1,661
—
1,270
856
1,524
—
344
1,252
654
1,014
1,514
1,935
819
1,626
2,625
2,280
1,647
963
708
1,333
1,175
1,021
1,374
1,369
941
655
646
357
596
501
1,427
1,116
1,773
997
1,100
2,552
1,477
1,447
1,337
640
12,480
5,287
20,357
—
—
86
1,610
285
9,897
F-162
—
—
(106)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
171
—
—
2,667
819
2,607
2,949
3,455
2,607
963
708
2,910
1,991
1,021
2,636
1,834
2,741
655
646
357
596
2,162
1,427
2,386
2,629
2,521
1,100
2,896
2,729
2,101
2,351
2,154
(312)
7/28/2014
1991
(302)
7/28/2014
2003
(232)
7/28/2014
1973
(366)
7/28/2014
1981
(332)
7/28/2014
1981
(320)
7/28/2014
2010
(220)
7/28/2014
1974
(203)
7/28/2014
1981
(269)
7/28/2014
1993
(231)
7/28/2014
2005
(261)
7/28/2014
1986
(227)
7/28/2014
1992
(273)
7/28/2014
1993
(200)
7/28/2014
1993
(272)
7/28/2014
2003
(265)
7/28/2014
2001
(187)
7/28/2014
2006
(306)
7/28/2014
1995
(164)
7/28/2014
1993
(372)
7/28/2014
2009
(195)
7/28/2014
1975
(348)
7/28/2014
2012
(177)
7/28/2014
1975
(372)
7/28/2014
2003
(383)
7/28/2014
1985
(290)
7/28/2014
2009
(285)
7/28/2014
1994
(301)
7/28/2014
2011
(102)
7/28/2014
1992
25,815
(4,968)
2/7/2014
2006
371
(59)
6/25/2014
2009
11,507
(96)
8/24/2018
2007
Initial Costs (1)
Property
City
State
Encumbrances
at
December 31,
2018
Ridley Pointe
Smyrna
Rite Aid
Bear
TN
DE
—
—
Land
2,009
851
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
9,467
2,702
109
—
11,585
(381)
8/25/2017
2016
3,553
(829)
1/8/2014
1999
F-163
Property
City
State
Rite Aid
Bay City
Rite Aid
Burton
Rite Aid
West Branch
Rite Aid
Bristol
Rite Aid
Winchester
MI
MI
MI
NH
NH
Rite Aid
Cheektowaga
NY
Rite Aid
Rite Aid
Genoa
Lima
Rite Aid
Louisville
Rite Aid
Marion
Rite Aid
St. Marys
Rite Aid
Warren
OH
OH
OH
OH
OH
OH
Rite Aid
Wheelersburg
OH
Rite Aid
Meadville
Rite Aid
Philadelphia
Rite Aid
Memphis
Rite Aid
Hayes
PA
PA
TN
VA
Road Ranger
Winnebago
IL
Rockwell Collins
Sterling
Ross
Austin
Rubbermaid
Winfield
Rubbermaid
Winfield
VA
TX
KS
KS
Rubbermaid
Bowling Green OH
Rubbermaid
Brimfield
Ruby Tuesday
Dillon
Ruby Tuesday
Bartow
Ruby Tuesday
Somerset
Ryan's Buffet
Commerce
Ryan's Buffet
Rome
Ryan's Buffet
Asheville
OH
CO
FL
KY
GA
GA
NC
Ryan's Buffet
Clarksburg
WV
Salty's
Jasper
AL
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
463
128
418
395
343
436
405
576
576
508
581
668
361
193
633
266
812
707
1,629
2,541
1,280
1,461
1,868
3,466
1,845
2,304
3,266
2,877
2,322
2,670
1,444
2,521
2,531
1,062
3,247
3,202
62
(50)
70
52
—
—
—
—
—
—
—
62
65
—
—
54
—
—
2,154
2,619
1,768
1,908
2,211
3,902
2,250
2,880
3,842
3,385
2,903
3,400
1,870
2,714
3,164
1,382
4,059
3,909
(407)
6/24/2014
1996
(791)
7/26/2013
1999
(346)
6/23/2014
1996
(452)
1/8/2014
1997
(574)
1/8/2014
1998
(964)
2/7/2014
2000
(554)
1/8/2014
1998
(769)
11/13/2012
2006
(1,098)
10/31/2012
2008
(960)
11/13/2012
2006
(640)
5/19/2014
2005
(756)
5/19/2014
1999
(419)
5/19/2014
1998
(754)
1/8/2014
1999
(724)
5/19/2014
1999
(313)
5/19/2014
2000
(895)
5/19/2014
2005
(901)
2/7/2014
1998
4,285
29,802
6,304
40,391
(6,382)
6/30/2014
2011
2,631
700
3,989
(920)
5/19/2014
2002
658
819
15,555
1,056
20,060
714
13,564
1,552
29,495
400
270
480
962
831
1,628
1,916
1,120
1,470
1,848
—
—
—
—
—
—
—
(647)
(919)
1,261
2,204
(1,179)
—
140
1,639
(1,305)
219
—
F-164
16,374
(5,392)
11/28/2012
2012
21,116
(7,386)
4/25/2012
2008
14,278
(4,367)
7/29/2013
2013
31,047
(10,043)
1/31/2013
2012
2,028
2,186
1,600
1,785
1,760
2,286
334
359
(490)
6/27/2013
1995
(577)
6/27/2013
1995
(337)
6/27/2013
1995
(284)
2/7/2014
1996
(289)
2/7/2014
1983
(362)
2/7/2014
1996
(75)
1/8/2014
2001
(66)
6/27/2013
1995
Property
City
State
Sam's Club
Sam's Club
Hoover
Colorado
Springs
AL
CO
Sam's Club
Douglasville
GA
Sam's Southern
Eatery
Santa Rosa
Commons
Savers
Schlotzsky's
Schmitz &
Schmitz
Kennesaw
Pace
Austin
Colorado
Springs
Gainesville
GA
FL
TX
CO
TX
Schneider Electric
Foxboro
MA
Scotts Company
Orrville
Scotts Company
Orrville
Scotts Company
Orrville
SCP Distributors
North Little
Rock
SCP Distributors
Knoxville
Sedgwick Claims
Mgmt Services
Dublin
Select Energy
Services
Select Energy
Services
Select Energy
Services
Select Energy
Services
Select Energy
Services
Select Energy
Services
Select Energy
Services
Select Energy
Services
Damascus
Frierson
Alderson
Big Wells
Chireno
Cleburne
Dilley
Odessa
Shale Tank Truck
Cleburne
Shale Tank Truck
Midland
Sherwin-Williams
Angola
Sherwin-Williams Muskegon
Sherwin-Williams
Ashtabula
Sherwin-Williams
Boardman
Shoney's
Gadsden
Shoney's
Oxford
Shoney's
Grayson
OH
OH
OH
AR
TN
OH
AR
LA
OK
TX
TX
TX
TX
TX
TX
TX
IN
MI
OH
OH
AL
AL
KY
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,253
3,347
1,701
210
9,606
12,652
11,052
46
—
—
—
—
11,859
(2,296)
2/7/2014
1989
15,999
(2,975)
2/7/2014
1998
12,753
(2,423)
2/7/2014
1999
256
(14)
6/27/2013
1995
4,447
21,884
464
26,795
(5,178)
2/7/2014
2008
740
530
29
2,958
530
1,950
—
—
—
3,698
1,060
1,979
(755)
5/19/2014
2002
(157)
6/27/2013
1997
(336)
6/25/2014
1930
11,784
—
27,888
39,672
(4,882)
6/27/2014
1965
278
611
609
258
251
945
530
260
260
353
388
154
308
460
476
757
249
187
176
206
220
670
420
2,502
1,134
11,576
1,665
900
8,520
800
4,954
1,150
1,820
5,470
2,333
1,416
1,998
547
939
996
1,524
704
825
707
25
406
F-165
—
—
—
(9)
189
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,780
1,745
(883)
9/28/2012
1950
(407)
7/30/2012
1950
12,185
(4,155)
7/30/2012
2006
1,914
1,340
9,465
1,330
5,214
1,410
2,173
5,858
2,487
1,724
2,458
1,023
1,696
1,245
1,711
880
1,031
927
695
826
(302)
11/20/2014
2006
(191)
11/20/2014
2012
(1,861)
6/26/2014
1997
(306)
6/12/2014
2009
(1,009)
6/12/2014
2010
(294)
6/12/2014
2008
(374)
6/12/2014
2011
(1,104)
6/25/2014
2011
(480)
6/25/2014
2008
(304)
6/25/2014
2012
(452)
6/25/2014
1982
(122)
6/25/2014
2007
(221)
6/25/2014
2012
(257)
5/19/2014
2001
(396)
2/7/2014
2008
(148)
5/19/2014
2003
(173)
5/19/2014
2003
(213)
6/27/2013
1995
(8)
6/27/2013
1995
(122)
6/27/2013
1995
Property
City
State
Shoney's
Grenada
Shoney's
Hattiesburg
Shoney's
Jackson
MS
MS
MS
Shoney's
Summerville
SC
Shoney's
Cookeville
TN
Shoney's
Lawrenceburg
TN
Shoney's
Charleston
Shoney's
Lewisburg
Shoney's
Princeton
Shoney's
Shopko
Hometown
Sierra Pines
Ripley
L'Anse
The
Woodlands
SiteOne
Homer Glen
SiteOne
Park City
SiteOne
Pingree Grove
Smokey Bones
Morrow
Smokey Bones
Pittsburgh
Sonic Drive-In
Wadesboro
Sonny's Real Pit
BBQ
Sonny's Real Pit
BBQ
Sonny's Real Pit
BBQ
Sonny's Real Pit
BBQ
Venice
Athens
Conyers
Marietta
Southern Kitchen
Prattville
Sovereign Bank
Linden
Sovereign Bank
Spaghetti
Warehouse
Spaghetti
Warehouse
Spaghetti
Warehouse
Kennett
Square
Arlington
Dallas
San Antonio
WV
WV
WV
WV
MI
TX
IL
IL
IL
GA
PA
NC
FL
GA
GA
GA
AL
NJ
PA
TX
TX
TX
Sprouts
Centennial
CO
St. Luke's Urgent
Care
Creve Coeur
MO
Staples
Staples
Pensacola
Helena
FL
MT
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
270
730
360
350
510
330
190
110
90
200
382
809
618
572
800
760
873
543
642
593
599
1,736
—
—
—
—
—
—
—
—
—
—
—
1,079
1,348
932
1,150
1,270
1,203
733
752
683
799
(227)
7/31/2013
1995
(186)
6/27/2013
1995
(172)
6/27/2013
1995
(241)
6/27/2013
1995
(229)
6/27/2013
1995
(263)
6/27/2013
1995
(164)
6/27/2013
1995
(193)
6/27/2013
1995
(179)
6/27/2013
1995
(180)
6/27/2013
1995
2,118
(473)
5/13/2014
2009
14,036
5,219
19,196
7,233
31,648
(3,095)
11/5/2013
2014
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
929
932
1,281
390
1,490
137
338
460
450
290
893
744
1,161
2,184
390
266
507
1,280
663
—
—
—
—
—
—
—
—
—
1,772
400
1,038
1,802
(1,871)
601
837
630
810
1,140
1,581
1,644
1,539
1,159
2,329
2,412
1,400
1,656
—
—
—
—
1,434
(1,063)
—
—
—
—
6,394
4,497
3,354
2,452
F-166
1,822
1,676
2,442
2,574
1,880
403
845
1,740
1,113
2,462
969
2,930
3,249
2,030
2,466
1,511
7,975
6,141
4,893
3,611
(32)
5/29/2018
1960
(24)
5/29/2018
1988
(35)
5/29/2018
2018
(658)
6/27/2013
1995
(146)
7/28/2014
2000
(79)
6/27/2013
2007
(158)
7/31/2013
1978
(385)
6/27/2013
1995
(200)
6/27/2013
1995
(546)
6/27/2013
1995
(125)
2/7/2014
1997
(646)
1/8/2014
1945
(672)
1/8/2014
1963
(421)
6/27/2013
1995
(499)
6/27/2013
1995
(96)
6/27/2013
1995
(1,771)
2/7/2014
2009
(1,286)
2/7/2014
2010
(752)
2/7/2014
2010
(585)
2/7/2014
2012
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
3,192
1,533
—
150
4,361
2,363
(719)
2/7/2014
2008
(456)
6/27/2013
1995
9,067
4,341
14,558
(3,594)
1/8/2014
1988
Property
City
State
Staples
Houston
Starbucks
Las Vegas
State of Colorado
Longmont
Steak 'n Shake
Tampa
Stearns Crossing
Bartlett
Stop & Shop
Cranston
TX
NV
CO
FL
IL
RI
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Stripes
Portales
NM
Andrews
Brady
Brownsville
Carrizo
Springs
TX
TX
TX
TX
Corpus Christi
TX
Corpus Christi
TX
Corpus Christi
TX
Eagle Pass
Edinburg
Edinburg
Edinburg
TX
TX
TX
TX
Fort Stockton
TX
Haskell
Houston
Laredo
Laredo
Midland
Mission
Mission
Odessa
Odessa
Ranchito
San Angelo
San Angelo
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TN
Subway
Knoxville
1,815
1,169
—
—
—
680
1,150
951
—
7,060
4,437
5,970
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,309
306
406
203
613
496
681
1,011
803
762
1,286
488
450
1,237
143
1,204
581
626
1,098
742
1,007
301
803
498
772
1,006
160
—
2,595
2,302
3,205
3,195
2,526
2,047
3,125
3,109
2,453
1,546
2,499
2,818
3,812
2,554
2,069
2,367
2,338
4,857
550
3,178
2,895
3,596
2,671
4,025
3,277
349
F-167
785
681
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(33)
—
—
—
—
—
—
1,736
(73)
7/31/2013
1999
11,088
(1,889)
2/7/2014
1999
4,309
2,901
2,708
3,408
3,808
3,022
2,728
4,136
3,912
3,215
2,832
2,987
3,268
5,049
2,697
3,273
2,948
2,964
5,955
1,292
4,152
3,196
4,399
3,169
4,797
4,283
509
— 2/7/2014
2011
(767)
2/7/2014
2010
(703)
2/15/2013
2008
(870)
2/7/2014
2007
(889)
2/7/2014
2007
(767)
2/7/2014
2010
(580)
2/7/2014
2007
(875)
2/7/2014
2007
(872)
2/7/2014
2007
(698)
2/7/2014
2009
(443)
2/7/2014
1999
(752)
2/7/2014
2007
(710)
2/7/2014
2007
(1,248)
2/7/2014
2010
(750)
2/7/2014
2010
(566)
2/7/2014
2007
(708)
2/7/2014
2010
(713)
2/7/2014
2010
(1,346)
2/7/2014
2006
(147)
2/7/2014
1986
(830)
2/7/2014
2003
(814)
2/7/2014
2011
(1,453)
2/7/2014
1998
(739)
2/7/2014
2010
(1,119)
2/7/2014
1997
(916)
2/7/2014
2007
(102)
6/27/2013
1995
Property
City
State
Sun Trust Bank
Coral Springs
FL
Sun Trust Bank
Destin
Sun Trust Bank
Dunedin
Sun Trust Bank
Dunnellon
Sun Trust Bank
Lakeland
Sun Trust Bank
North Port
Sun Trust Bank
Palm Harbor
Sun Trust Bank
Plant City
Sun Trust Bank
Port Orange
Sun Trust Bank
Port Orange
Sun Trust Bank
Sun Trust Bank
S. Daytona
Beach
West Palm
Beach
Sun Trust Bank
Atlanta
Sun Trust Bank
Atlanta
Sun Trust Bank
Dunwoody
Sun Trust Bank
Jesup
Sun Trust Bank
St. Simons
Island
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
GA
GA
GA
GA
GA
Sun Trust Bank
Annapolis
MD
Sun Trust Bank
Ellicott City
MD
Sun Trust Bank
Frederick
Sun Trust Bank
Waldorf
Sun Trust Bank
Belmont
Sun Trust Bank
Carrboro
Sun Trust Bank
Concord
Sun Trust Bank
Durham
Sun Trust Bank
Greensboro
Sun Trust Bank
Lexington
Sun Trust Bank
Matthews
Sun Trust Bank
Mocksville
Sun Trust Bank
Raleigh
Sun Trust Bank
Chattanooga
Sun Trust Bank
Madison
MD
MD
NC
NC
NC
NC
NC
NC
NC
NC
NC
TN
TN
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
654
572
479
82
598
460
535
751
590
563
592
1,026
1,018
1,435
1,784
184
1,363
2,653
1,728
991
523
616
512
707
747
403
447
382
978
658
223
286
1,525
1,717
1,917
463
1,110
1,381
1,249
1,753
1,095
1,314
1,099
1,026
1,527
478
1,460
1,657
734
2,170
931
991
2,962
924
512
707
1,388
748
831
382
2,933
658
1,263
1,143
F-168
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,179
2,289
2,396
545
1,708
1,841
1,784
2,504
1,685
1,877
1,691
2,052
2,545
1,913
3,244
1,841
2,097
4,823
2,659
1,982
3,485
1,540
1,024
1,414
2,135
1,151
1,278
764
3,911
1,316
1,486
1,429
(438)
4/12/2013
1996
(494)
4/12/2013
1998
(555)
3/22/2013
1995
(134)
3/22/2013
1980
(319)
4/12/2013
1988
(400)
3/22/2013
1982
(359)
4/12/2013
1994
(508)
3/22/2013
2000
(317)
3/22/2013
1989
(381)
3/22/2013
1982
(316)
4/12/2013
1985
(297)
3/22/2013
1981
(439)
4/12/2013
1965
(138)
4/12/2013
1970
(423)
3/22/2013
1972
(480)
3/22/2013
1964
(213)
3/22/2013
1975
(609)
7/23/2013
1976
(270)
3/22/2013
1975
(285)
4/26/2013
1880
(858)
3/22/2013
1964
(268)
3/22/2013
1970
(147)
4/12/2013
1980
(203)
4/12/2013
1988
(399)
4/12/2013
1973
(215)
4/12/2013
1962
(239)
4/12/2013
2001
(111)
3/22/2013
1971
(850)
3/22/2013
2000
(191)
3/22/2013
1977
(366)
3/22/2013
1953
(331)
3/22/2013
1953
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
567
1,598
613
90
305
1,308
613
510
—
—
—
—
872
2,906
1,226
600
(86)
7/23/2013
1954
(376)
4/12/2013
1992
(176)
4/12/2013
1970
(148)
3/22/2013
1975
Property
City
State
Sun Trust Bank
Nashville
Sun Trust Bank
Nashville
Sun Trust Bank
Nashville
Sun Trust Bank
Cheriton
TN
TN
TN
VA
F-169
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Sun Trust Bank
Lynchburg
Sun Trust Bank
Petersburg
Sun Trust Bank
Richmond
Sun Trust Bank
Richmond
VA
VA
VA
VA
Sun Trust Bank
Rocky Mount
VA
Sunbelt Rentals
Mabelvale
Sunbelt Rentals
Memphis
AR
TN
Sunoco
Merritt Island
FL
—
—
—
—
—
—
—
—
251
102
277
224
265
240
365
540
466
306
416
2,012
1,504
894
929
2,162
Sunset Valley
Homestead
Sunset Valley
TX
16,650
14,283
28,351
SuperAmerica
Foley
MN
SuperAmerica
Pequot Lakes
MN
SuperAmerica
Pierz
SuperAmerica
Sartell
MN
MN
SuperAmerica
Sauk Rapids
MN
SuperAmerica
St. Cloud
SuperAmerica
St. Cloud
SuperAmerica
St. Cloud
SuperAmerica
St. Cloud
SuperAmerica
St. Cloud
SuperAmerica
Waite Park
SuperAmerica
Waite Park
MN
MN
MN
MN
MN
MN
MN
Superior Energy
Services
Gainesville
TX
Sweet Tomato
Coral Springs
FL
Synovus Bank
Tampa
Sysmex
Lincolnshire
Taco Bell
Albertville
Taco Bell
Cullman
Taco Bell
Daphne
Taco Bell
Taco Bell
Dora
Foley
Taco Bell
Hartselle
Taco Bell
Jasper
FL
IL
AL
AL
AL
AL
AL
AL
AL
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
72
158
67
718
419
582
104
126
330
361
316
770
284
790
985
276
1,489
411
486
753
657
136
151
365
433
333
503
10,475
1,625
2,298
22,500
4,143
36,987
—
—
—
—
—
—
—
419
375
180
348
360
378
445
778
1,053
1,278
813
1,460
781
814
F-170
—
—
—
—
—
—
128
—
297
—
—
—
—
—
—
—
—
—
—
—
—
3
—
—
5
—
—
—
—
—
—
—
717
408
693
2,236
1,769
1,134
1,422
2,702
(135)
3/22/2013
1973
(88)
4/12/2013
1975
(120)
3/22/2013
1959
(578)
4/12/2013
1909
(429)
5/22/2013
1961
(205)
6/4/2014
2006
(226)
9/26/2014
1995
(454)
5/19/2014
2009
42,931
(6,941)
2/7/2014
2007
348
1,647
478
1,204
1,172
1,239
240
277
695
794
649
(18)
3/27/2017
1984
(96)
3/27/2017
1983
(25)
3/27/2017
1996
(28)
3/27/2017
2000
(46)
3/27/2017
1997
(42)
3/27/2017
1987
(8)
3/27/2017
1922
(10)
3/27/2017
1968
(23)
3/27/2017
1984
(28)
3/27/2017
1987
(20)
3/27/2017
1999
1,273
(31)
3/27/2017
1999
10,762
(6,935)
7/24/2014
1982
2,415
3,283
(489)
6/27/2013
1995
(682)
12/31/2012
1959
41,135
(8,787)
2/7/2014
2010
1,197
1,428
1,458
1,161
1,820
1,159
1,259
(218)
7/31/2013
1995
(312)
6/27/2013
1995
(375)
6/27/2013
1995
(228)
7/31/2013
1995
(428)
6/27/2013
1995
(231)
6/27/2013
1995
(241)
6/27/2013
1995
Property
City
State
Taco Bell
Mobile
Taco Bell
Saraland
Taco Bell
Warrior
Taco Bell
Winfield
Taco Bell
Corona
Taco Bell
Fairfield
Taco Bell
Fontana
Taco Bell
Montclair
AL
AL
AL
AL
CA
CA
CA
CA
Taco Bell
Moreno Valley
CA
Taco Bell
Rancho
Cucamonga
Taco Bell
Rubidoux
Taco Bell
Suisun City
Taco Bell
Vacaville
Taco Bell
Vacaville
Taco Bell
Jacksonville
Taco Bell
Jacksonville
Taco Bell
Pensacola
Taco Bell
Augusta
Taco Bell
Hephzibah
Taco Bell
Jesup
Taco Bell
Kennesaw
Taco Bell
Waycross
CA
CA
CA
CA
CA
FL
FL
FL
GA
GA
GA
GA
GA
Taco Bell
Crawfordsville
IN
Taco Bell
Hartford City
Taco Bell
Kokomo
Taco Bell
Lafayette
Taco Bell
Marion
Taco Bell
Noblesville
Taco Bell
Tipton
IN
IN
IN
IN
IN
IN
Taco Bell
North Corbin
KY
Taco Bell
Detroit
Taco Bell
St. Louis
MI
MO
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
160
150
364
278
306
500
524
322
367
415
415
355
522
1,184
440
340
140
220
330
230
162
170
234
99
199
304
496
363
104
139
124
190
1,973
1,063
675
834
1,138
1,327
1,016
900
998
1,210
1,223
1,419
1,513
1,375
1,167
1,383
1,897
1,292
930
715
601
1,115
934
889
798
912
921
545
936
1,082
704
1,951
F-171
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,133
1,213
1,039
1,112
1,444
1,827
1,540
1,222
1,365
1,625
1,638
1,774
2,035
2,559
1,607
1,723
2,037
1,512
1,260
945
763
1,285
1,168
988
997
1,216
1,417
908
1,040
1,221
828
2,141
(579)
6/27/2013
1995
(312)
6/27/2013
1995
(189)
7/31/2013
1995
(234)
7/31/2013
1995
(337)
6/27/2013
1990
(393)
6/27/2013
1985
(301)
6/27/2013
1992
(267)
6/27/2013
1996
(296)
6/27/2013
1992
(359)
6/27/2013
1992
(362)
6/27/2013
1992
(398)
7/31/2013
1986
(448)
6/27/2013
1985
(407)
6/27/2013
1994
(342)
6/27/2013
1995
(406)
6/27/2013
1995
(556)
6/27/2013
1995
(379)
6/27/2013
1995
(273)
6/27/2013
1995
(210)
6/27/2013
1995
(178)
6/27/2013
1984
(327)
6/27/2013
1995
(262)
7/31/2013
1991
(249)
7/31/2013
1978
(224)
7/31/2013
1993
(256)
7/31/2013
1990
(258)
7/31/2013
1994
(153)
7/31/2013
2005
(263)
7/31/2013
1998
(320)
6/27/2013
1995
(198)
7/31/2013
1989
(517)
6/27/2013
1995
Property
City
State
Taco Bell
Wentzville
MO
Taco Bell
Taco Bell
Brunswick
North
Olmstead
Taco Bell
Kingston
Taco Bell
Livingston
Taco Bell
Dallas
Taco Bell / KFC
Texarkana
Taco Bell / KFC
Minden
Taco Bell / KFC
Shreveport
Taco Bell / KFC
Shreveport
Taco Bell / KFC
Shreveport
Taco Bell / KFC
Shreveport
Taco Bell / KFC
Dunkirk
Taco Bell / KFC
Geneva
Taco Bell / KFC
Canonsburg
Taco Bell / KFC
Pittsburgh
Taco Bell / KFC
Mount
Pleasant
Taco Bell / KFC
New Boston
Taco Bell / KFC
Green Bay
Taco Bell / KFC
Milwaukee
OH
OH
TN
TN
TX
AR
LA
LA
LA
LA
LA
NY
NY
PA
PA
TX
TX
WI
WI
Taco Bell / KFC
Benwood
WV
Taco Bell / Pizza
Hut
Dallas
Taco Bueno
Hutchinson
TX
KS
Taco Bueno
Springfield
MO
Taco Bueno
Arlington
Taco Bueno
Frisco
Taco Bueno
Lubbock
Taco Bueno
N. Richland
Hills
Taco Bueno
Waco
Taco Cabana
Austin
Taco Cabana
Pasadena
Taco Cabana
San Antonio
TX
TX
TX
TX
TX
TX
TX
TX
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
410
400
390
280
300
400
111
274
343
616
427
352
800
569
176
180
106
125
470
533
123
420
561
753
597
601
228
423
595
700
420
600
1,168
1,267
904
714
775
1,225
630
639
514
753
522
528
978
695
1,586
269
952
1,127
574
1,055
287
1,582
841
753
895
577
561
567
893
2,105
1,420
1,955
F-172
—
—
—
300
—
—
—
—
—
—
—
—
—
—
—
3
—
—
—
—
4
—
—
(974)
—
—
—
—
—
—
—
—
1,578
1,667
1,294
1,294
1,075
1,625
741
913
857
(343)
6/27/2013
1995
(372)
6/27/2013
1995
(265)
6/27/2013
1995
(230)
6/27/2013
1995
(13)
6/27/2013
1995
(359)
6/27/2013
1995
(177)
7/31/2013
1980
(179)
7/31/2013
1995
(144)
7/31/2013
1995
1,369
(211)
7/31/2013
1995
949
880
1,778
1,264
1,762
452
1,058
1,252
1,044
1,588
414
2,002
1,402
532
1,492
1,178
789
990
1,488
2,805
1,840
2,555
(146)
7/31/2013
1997
(148)
7/31/2013
1998
(274)
7/31/2013
2000
(195)
7/31/2013
1999
(445)
7/31/2013
1996
(74)
10/1/2013
1995
(267)
7/31/2013
1992
(316)
7/31/2013
1995
(161)
7/31/2013
1986
(313)
6/27/2013
1978
(78)
10/1/2013
1995
(464)
6/27/2013
1995
(236)
7/31/2013
2000
— 7/31/2013
2006
(251)
7/31/2013
2000
(171)
6/27/2013
2000
(166)
6/27/2013
2000
(168)
6/27/2013
2000
(250)
7/31/2013
2000
(617)
6/27/2013
1995
(416)
6/27/2013
1995
(574)
6/27/2013
1995
Property
City
State
Taco Cabana
San Antonio
Taco Cabana
San Antonio
Taco Cabana
San Antonio
Taco Cabana
Schertz
TX
TX
TX
TX
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Take 5 Oil
Change
Talbots
Talbots
Lawrenceburg
IN
Alexandria
Erlanger
Florence
Fort Wright
Akron
Akron
Akron
Bedford
Heights
Cleveland
KY
KY
KY
KY
OH
OH
OH
OH
OH
Fairview Park
OH
Lakewood
Mayfield
Heights
Medina
Miamisburg
Moraine
OH
OH
OH
OH
OH
N. Barberton
OH
Painesville
Parma
Parma
Seven Hills
Solon
OH
OH
OH
OH
OH
South Euclid
OH
Stow
Westlake
Willoughby
Hingham
Lakeville
OH
OH
OH
MA
MA
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
500
280
500
520
516
294
337
279
179
79
135
205
156
127
205
205
201
135
246
415
140
276
124
306
182
233
109
230
85
168
1,740
1,695
1,766
1,408
721
677
1,072
896
816
287
761
1,043
529
559
179
765
430
414
486
692
502
208
390
502
201
487
561
132
525
425
23,362
3,009
27,080
22,509
6,302
25,209
F-173
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(5)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,240
1,975
2,266
1,928
1,237
971
1,409
1,175
995
366
896
(511)
6/27/2013
1995
(497)
6/27/2013
1995
(518)
6/27/2013
1995
(413)
6/27/2013
1995
(36)
6/8/2017
2017
(30)
6/8/2017
1996
(46)
6/8/2017
2003
(40)
6/8/2017
1998
(38)
6/8/2017
1995
(57)
9/2/2014
1988
(156)
9/2/2014
1995
1,248
(209)
9/2/2014
1992
685
686
384
970
631
544
732
(115)
9/2/2014
1986
(112)
9/2/2014
1988
(53)
9/2/2014
1988
(157)
9/2/2014
1993
(93)
9/2/2014
1988
(91)
9/2/2014
1995
(23)
6/8/2017
1992
1,107
(31)
6/8/2017
1995
642
484
514
808
383
720
670
362
610
593
(99)
9/2/2014
1998
(55)
9/2/2014
1988
(75)
9/2/2014
1986
(111)
9/2/2014
1986
(50)
9/2/2014
1987
(101)
9/2/2014
1992
(104)
9/2/2014
1986
(37)
9/2/2014
1988
(97)
9/2/2014
1999
(86)
9/2/2014
1986
30,089
(7,045)
5/24/2013
1980
31,511
(8,273)
5/17/2013
1987
Property
City
State
Taqueria El
Rodeo de Jalisco
San Antonio
TX
TCF Bank
Crystal
TD Bank
Falmouth
Teva
Pharmaceuticals
Malvern
Texas Roadhouse
Cedar Rapids
Texas Roadhouse
Ammon
Texas Roadhouse
Shively
Texas Roadhouse
Concord
Texas Roadhouse
Gastonia
Texas Roadhouse
Hickory
Texas Roadhouse
College
Station
MN
ME
PA
IA
ID
KY
NC
NC
NC
TX
Texas Roadhouse
Grand Prairie
TX
Texas Roadhouse
Kenosha
TGI Fridays
Royal Palm
Beach
TGI Fridays
Ann Arbor
TGI Fridays
Kentwood
TGI Fridays
Novi
TGI Fridays
Blasdell
TGI Fridays
Warwick
Thorntons Oil
Bloomington
Thorntons Oil
Franklin Park
Thorntons Oil
Joliet
Thorntons Oil
Oaklawn
Thorntons Oil
Ottawa
Thorntons Oil
Plainfield
Thorntons Oil
Roselle
Thorntons Oil
South Elgin
Thorntons Oil
Springfield
Thorntons Oil
Summit
Thorntons Oil
Waukegan
Thorntons Oil
Westmont
WI
FL
MI
MI
MI
NY
RI
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
IL
Thorntons Oil
Clarksville
IN
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
168
640
206
642
19,607
4,057
23,689
—
—
307
374
1,282
(58)
7/31/2013
1965
(180)
6/27/2013
1995
28,053
(6,236)
3/18/2013
2002
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,666
40,981
(6,111)
37,536
(3,854)
11/5/2013
1999
430
490
540
650
570
580
670
780
1,061
1,530
547
281
1,042
1,215
1,228
1,184
1,403
953
1,203
565
862
661
1,239
926
2,233
875
760
1,319
2,194
1,206
2,055
2,130
1,544
1,831
2,299
1,867
1,835
1,530
1,640
2,533
1,042
1,913
—
—
—
—
—
—
—
—
(14)
—
—
—
—
—
2,775
(1,252)
733
1,882
2,539
—
—
—
898
278
—
—
—
—
—
—
—
—
—
2,003
1,338
2,194
1,688
2,514
109
1,421
3,069
687
F-174
2,624
1,696
2,595
2,780
2,114
2,411
2,969
2,647
2,882
3,060
2,187
2,814
2,084
3,128
2,751
1,917
3,285
3,492
2,379
2,568
2,200
2,855
2,927
3,440
2,342
2,296
3,829
2,006
(661)
6/27/2013
1995
(363)
6/27/2013
1995
(618)
6/27/2013
1995
(641)
6/27/2013
1995
(465)
6/27/2013
1995
(551)
6/27/2013
1995
(692)
6/27/2013
1995
(562)
6/27/2013
1995
(557)
6/27/2013
2001
(477)
7/31/2013
2001
(512)
7/31/2013
1998
(790)
7/31/2013
1983
(325)
7/31/2013
1994
(581)
6/27/2013
2000
(387)
6/27/2013
1983
(240)
2/7/2014
1992
(548)
2/7/2014
1989
(734)
2/7/2014
2000
(283)
2/7/2014
1994
(597)
2/7/2014
2006
(410)
2/7/2014
1995
(614)
2/7/2014
1996
(537)
2/7/2014
1995
(819)
2/7/2014
1994
(38)
2/7/2014
2000
(416)
2/7/2014
1999
(852)
2/7/2014
1997
(238)
2/7/2014
2005
Property
City
State
Thorntons Oil
Edinburgh
Thorntons Oil
Evansville
Thorntons Oil
Evansville
Thorntons Oil
Jeffersonville
Thorntons Oil
Terre Haute
Thorntons Oil
Henderson
Thorntons Oil
Henderson
Thorntons Oil
Louisville
Thorntons Oil
Shelbyville
Thorntons Oil
Galloway
Tiffany & Co.
Parsippany
IN
IN
IN
IN
IN
KY
KY
KY
KY
OH
NJ
Tilted Kilt
Hendersonville
TN
Time Warner
Cable
Milwaukee
Tire Kingdom
Auburndale
Tire Kingdom
Dublin
Tire Kingdom
Greenville
WI
FL
OH
SC
Tire Warehouse
Fitchburg
MA
Tire Warehouse
Bangor
Tires Plus
Duluth
TitleMax
Gainesville
ME
GA
GA
TJ Maxx
Philadelphia
PA
T-Mobile
Topgolf
Nashville
Brooklyn
Center
Tractor Supply
Oneonta
Tractor Supply
Summerdale
Tractor Supply
Tuscaloosa
Tractor Supply
Little Rock
Tractor Supply
Auburn
Tractor Supply
Dixon
Tractor Supply
Jackson
Tractor Supply
Los Banos
Tractor Supply
Buena Vista
TN
MN
AL
AL
AL
AR
CA
CA
CA
CA
CO
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
1,204
—
—
—
—
—
—
—
—
—
—
1,154
—
1,500
609
373
499
203
289
777
221
9,889
1,190
8,173
359
276
746
930
—
1,175
2,962
1,619
—
1,209
3,468
1,213
—
646
685
467
602
1,233
732
659
483
637
299
547
1,505
1,479
1,398
1,533
1,829
3,271
1,778
1,680
2,036
1,550
2,248
81,081
310
763
—
—
—
—
—
—
—
—
—
—
—
—
2,190
1,946
2,000
2,766
2,561
3,930
2,261
2,317
2,335
2,097
(443)
2/7/2014
1996
(443)
2/7/2014
1987
(415)
2/7/2014
1990
(486)
2/7/2014
1995
(555)
2/7/2014
1995
(949)
2/7/2014
1971
(472)
2/7/2014
2007
(442)
2/7/2014
1994
(569)
2/7/2014
1991
(439)
2/7/2014
1998
83,329
(25,106)
11/5/2013
1997
1,073
(230)
6/27/2013
1995
3,081
22,512
1,095
26,688
(6,037)
11/5/2013
2001
1,571
1,119
1,367
704
1,400
1,259
270
84,953
—
—
—
—
—
—
—
—
2,180
1,492
1,866
907
1,689
2,036
491
(420)
2/7/2014
2010
(393)
4/30/2012
2003
(380)
3/28/2014
1997
(209)
6/27/2013
1982
(414)
6/27/2013
1977
(361)
2/21/2014
2001
(84)
7/31/2013
2007
94,842
(26,305)
11/5/2013
2001
15,847
691
17,728
(4,031)
11/5/2013
2002
—
—
—
—
—
—
—
—
—
—
32,801
(129)
11/2/2018
2018
1,797
2,746
2,725
2,965
4,076
5,663
4,849
4,851
3,620
(377)
4/18/2013
1983
(538)
2/7/2014
2010
(429)
2/7/2014
2012
(441)
2/7/2014
2009
(649)
2/7/2014
2012
(912)
2/7/2014
2007
(778)
2/7/2014
2012
(974)
2/28/2013
2009
(138)
6/16/2017
2014
24,628
1,438
2,470
1,979
2,035
2,901
4,044
3,640
3,638
2,974
F-175
Initial Costs (1)
Property
City
State
Encumbrances
at
December 31,
2018
Tractor Supply
Middletown
Tractor Supply
Mims
Tractor Supply
Bainbridge
Tractor Supply
Rincon
Tractor Supply
Alton
Tractor Supply
Mishawaka
Tractor Supply
Sellersburg
Tractor Supply
St. John
Tractor Supply
Lawrence
Tractor Supply
Topeka
Tractor Supply
Glasgow
Tractor Supply
Grayson
Tractor Supply
Paducah
Tractor Supply
Gray
DE
FL
GA
GA
IL
IN
IN
IN
KS
KS
KY
KY
KY
LA
Land
1,487
310
687
978
565
620
762
—
—
—
—
1,404
—
1,433
2,247
1,715
1,377
—
—
—
—
2,048
361
446
453
540
393
550
Tractor Supply
Belchertown
MA
1,823
1,148
Tractor Supply
Millbury
Tractor Supply
Southwick
Tractor Supply
Augusta
Tractor Supply
Jonesville
Tractor Supply
Negaunee
MA
MA
ME
MI
MI
Tractor Supply
Jefferson City
MO
Tractor Supply
Nixa
Tractor Supply
Sedalia
Tractor Supply
Troy
Tractor Supply
Union
Tractor Supply
Franklin
Tractor Supply
Murphy
Tractor Supply
York
Tractor Supply
Plaistow
MO
MO
MO
MO
NC
NC
NE
NH
—
806
2,428
1,601
1,423
—
—
1,125
1,346
1,090
1,286
1,404
1,479
1,402
—
—
530
267
488
490
476
480
730
589
434
990
326
638
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Buildings,
Fixtures and
Improvements
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
59
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
73
—
—
—
13
—
—
—
—
4,780
3,097
3,132
2,994
3,686
3,303
2,908
5,112
2,998
2,231
2,265
3,249
1,967
2,752
4,327
3,900
5,184
3,286
2,631
2,441
2,440
2,516
2,262
3,317
3,614
3,063
3,080
2,778
3,190
(690)
2/7/2014
2007
(684)
10/10/2013
2012
(508)
2/7/2014
2008
(421)
2/7/2014
2007
(653)
2/7/2014
2008
(575)
2/7/2014
2011
(475)
2/7/2014
2010
(772)
2/7/2014
2007
(577)
2/7/2014
2010
(495)
5/19/2014
2006
(494)
5/19/2014
2005
(588)
2/7/2014
2011
(441)
5/19/2014
1995
(627)
8/7/2012
2011
(717)
2/7/2014
2009
(642)
6/26/2014
2013
(804)
2/7/2014
2008
(616)
2/7/2014
2009
(565)
3/28/2014
2005
(567)
6/12/2012
2010
(404)
2/7/2014
2009
(452)
2/7/2014
2009
(404)
2/7/2014
2010
(551)
2/7/2014
2009
(628)
2/7/2014
2008
(572)
2/7/2014
2009
(476)
2/7/2014
2010
(88)
11/3/2017
2017
(626)
10/10/2013
2012
3,293
2,787
2,445
2,016
3,062
2,683
2,146
3,397
2,637
1,785
1,812
2,709
1,574
2,202
3,179
3,094
3,583
2,756
2,364
1,953
1,877
2,040
1,782
2,587
3,012
2,629
2,090
2,452
2,552
F-176
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Tractor Supply
Plymouth
NH
2,074
Tractor Supply
Allentown
Tractor Supply
Sicklerville
NJ
NJ
Tractor Supply
Farmington
NM
Tractor Supply
Roswell
Tractor Supply
Silver City
Tractor Supply
Macedon
Tractor Supply
Hamilton
Tractor Supply
Wauseon
Tractor Supply
Chickasha
Tractor Supply
Glenpool
Tractor Supply
Stillwater
Tractor Supply
Gibsonia
Tractor Supply
Columbia
Tractor Supply
Irmo
Tractor Supply
Ballinger
Tractor Supply
Del Rio
Tractor Supply
Edinburg
Tractor Supply
Kenedy
Tractor Supply
Pearsall
Tractor Supply
Rio Grande
NM
NM
NY
OH
OH
OK
OK
OK
PA
SC
SC
TX
TX
TX
TX
TX
TX
Tractor Supply
Woodstock
VA
Tractor Supply
Romney
Trader Joe's
Sarasota
Trader Joe's
Lexington
WV
FL
KY
Tumbleweed
Terre Haute
IN
Tumbleweed
Louisville
Tumbleweed
Mayesville
Tumbleweed
Owensboro
KY
KY
KY
Tumbleweed
Bellefontaine
OH
Tumbleweed
Springfield
Tumbleweed
Wooster
OH
OH
424
697
1,931
1,091
947
716
168
675
931
599
359
205
—
—
—
—
—
—
932
1,374
—
1,180
1,205
1,648
1,044
—
—
1,248
—
—
1,163
1,144
—
—
—
—
—
—
—
—
—
—
—
—
952
725
476
927
768
309
318
469
524
418
1,646
2,287
434
468
353
355
234
549
342
16
—
—
—
—
—
—
—
—
538
—
—
—
—
62
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,430
3,949
4,302
2,194
2,181
2,380
1,591
1,472
2,128
2,056
2,447
2,715
2,778
2,222
2,171
2,477
2,044
3,163
2,372
2,551
1,095
2,098
3,097
5,416
3,795
1,303
1,404
823
1,420
938
1,280
799
F-177
2,870
4,646
6,233
3,285
3,128
3,096
1,759
2,147
3,059
3,193
2,806
2,920
3,822
3,174
2,958
2,953
2,971
3,931
2,681
2,869
1,564
2,622
3,515
7,062
6,082
1,737
1,872
1,176
1,775
1,172
1,829
1,141
(668)
11/29/2012
2011
(1,201)
1/27/2012
2008
(906)
2/7/2014
2009
(525)
3/28/2014
2012
(480)
2/7/2014
2009
(569)
3/28/2014
2012
(374)
4/29/2014
1992
(462)
2/7/2014
(491)
2/7/2014
1975
2007
(560)
3/28/2014
2014
(522)
2/7/2014
(576)
2/7/2014
(613)
2/7/2014
(465)
2/7/2014
(483)
2/7/2014
(512)
2/7/2014
(435)
2/7/2014
(650)
2/7/2014
(488)
2/7/2014
(531)
2/7/2014
2009
2009
2009
2011
2009
2010
2009
2009
2010
2009
(318)
6/19/2012
1993
(558)
5/19/2014
2004
(103)
11/29/2017
2017
(1,394)
2/7/2014
(1,020)
2/7/2014
2012
2012
(407)
7/31/2013
1997
(438)
7/31/2013
2001
(257)
7/31/2013
2000
(443)
7/31/2013
1997
(293)
7/31/2013
1999
(399)
7/31/2013
1998
(249)
7/31/2013
1997
Property
City
State
Tumbleweed
Zanesville
OH
Tutor Time
Downingtown
PA
Tutor Time
Austin
Ulta Beauty
Jonesboro
Ulta Beauty
Fort Gratiot
Ulta Beauty
Jackson
TX
AR
MI
TN
United Buffet and
Grille
United
Technologies
Hagerstown
MD
Bradenton
University Plaza
Flagstaff
The UPS Store
Elizabethtown
KY
US Bank
Alsip
US Bank
Chicago
US Bank
US Bank
Chicago
Chicago
Heights
IL
IL
IL
IL
US Bank
Elmwood Park
IL
US Bank
Evergreen
Park
US Bank
Lyons
US Bank
Orland Hills
US Bank
Westchester
US Bank
Wilmington
US Bank
Fayetteville
US Bank
Garfield
Height
VA Clinic
Oceanside
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Hueytown
Jasper
Mobile
Arkadelphia
Pine Bluff
Fountain Hills
AZ
Peoria
San Luis
Obispo
Santee
AZ
CA
CA
FL
AZ
IL
IL
IL
IL
IL
NC
OH
CA
AL
AL
AL
AR
AR
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
(465)
7/31/2013
1998
—
—
—
—
—
1,454
—
—
—
—
—
—
—
—
—
—
—
639
205
417
742
164
547
244
2,692
4,727
1,460
226
267
191
182
431
167
214
2,646
1,253
—
—
—
—
366
330
608
165
1,491
2,788
1,861
2,289
2,083
2,123
—
—
—
—
—
—
1,306
(1,505)
2,130
2,993
2,278
3,031
2,247
2,670
45
(707)
2/7/2014
(498)
2/7/2014
(531)
2/7/2014
(498)
2/7/2014
(503)
2/7/2014
(20)
1/8/2014
1998
2000
2013
2012
2010
2001
2004
1982
17,973
18,087
10,336
1,280
1,511
1,082
1,637
2,441
944
1,212
2,327
853
1,872
1,741
1,016
—
501
778
—
—
—
—
—
—
—
—
—
—
—
—
20,665
(3,735)
2/7/2014
23,315
(5,588)
2/7/2014
12,574
(3,251)
9/24/2013
2001
1,506
1,778
1,273
1,819
2,872
1,111
1,426
3,580
1,219
2,202
2,349
1,181
(472)
8/1/2010
(558)
8/1/2010
(399)
8/1/2010
1981
1923
1979
(482)
1/24/2013
1996
(867)
8/1/2010
(349)
8/1/2010
(447)
8/1/2010
1984
1984
1959
(690)
12/14/2012
1995
(249)
2/22/2013
1986
(654)
8/1/2010
(405)
2/7/2014
(304)
1/8/2014
1966
2012
1958
2010
27,749
9,489
33,812
105
43,406
(7,571)
2/7/2014
—
—
—
—
—
—
—
—
—
60
577
127
225
105
241
837
195
265
639
(312)
2,545
(2,786)
276
633
433
597
(254)
(720)
(473)
(228)
387
336
149
138
65
610
(7)
6/27/2013
1995
(54)
2/7/2014
2000
(1)
6/27/2013
1974
(1)
6/27/2013
1990
(1)
6/27/2013
1978
(37)
6/27/2013
1994
1,953
(1,552)
1,238
(67)
2/27/2013
1996
1,013
(844)
1,261
(1,390)
364
136
(96)
1/8/2014
(42)
1/8/2014
2000
1995
F-178
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
1,014
(1,070)
534
(498)
3,071
(2,203)
567
(242)
140
130
1,728
574
(36)
1/8/2014
— 8/1/2010
1995
1995
(180)
6/27/2013
2003
(4)
6/27/2013
1979
5,289
—
9,553
(1,297)
2/7/2014
2010
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Lone Tree
CO
New London
CT
Brandon
Cocoa
FL
FL
Coral Springs
FL
Kissimmee
Melbourne
Melbourne
Orlando
Tallahassee
Augusta
Augusta
Bowdon
Columbus
Mason City
Boise
Garden City
Lombard
Merrillville
Mishawaka
FL
FL
FL
FL
FL
GA
GA
GA
GA
IA
ID
ID
IL
IN
IN
Bowling Green KY
Nicholasville
KY
Bossier City
LA
Van Buren
Detroit
ME
MI
Harper Woods MI
Highland Park MI
Southfield
Spring Lake
Belton
Joplin
Joplin
MI
MI
MO
MO
MO
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
196
94
860
249
4,264
1,167
464
405
778
(1,083)
1,392
1,237
—
—
1,286
—
(297)
828
178
178
416
1,933
(1,274)
533
414
(591)
(525)
1,247
(1,563)
1,307
2,529
(2,876)
290
335
492
84
511
375
648
435
1,255
1,339
1,305
100
4,768
1,500
973
(737)
—
—
—
—
—
—
2,040
(1,602)
1,168
2,594
(2,882)
115
204
207
150
283
341
476
314
127
1,720
(1,339)
1,159
(1,263)
1,171
(1,137)
848
(787)
1,605
(1,601)
512
701
(391)
—
1,610
(1,231)
300
—
F-179
862
1,856
1,642
989
1,487
120
67
100
960
808
1,674
1,797
184
5,279
1,875
1,621
873
880
496
100
241
211
287
462
(2)
4/12/2013
1981
(400)
4/12/2013
1987
(326)
2/7/2014
2011
(11)
7/31/2013
1998
(16)
4/12/2013
1991
(5)
7/31/2013
1981
(2)
7/31/2013
1978
— 3/22/2013
1900
(118)
2/7/2014
2002
(12)
6/27/2013
1995
(409)
2/22/2013
2013
(324)
2/26/2014
2003
(30)
6/27/2013
1973
(1,311)
2/7/2014
2011
(441)
7/30/2013
2013
(293)
4/25/2013
2012
(21)
6/11/2014
2001
(117)
2/7/2014
(27)
1/8/2014
— 8/1/2010
— 8/1/2010
— 8/1/2010
— 8/1/2010
2004
1998
1956
1982
1967
1975
(6)
7/31/2013
1994
1,177
(208)
6/27/2013
2006
693
427
(29)
2/11/2014
1984
(110)
2/11/2014
1973
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Albemarle
Greenville
Raleigh
Warsaw
Wilmington
Wilson
Flanders
East
Greenbush
Greene
Nedrow
Rochester
NC
NC
NC
NC
NC
NC
NJ
NY
NY
NY
NY
Schenectady
NY
Cincinnati
Dayton
Englewood
Massillon
Mentor
Moraine
OH
OH
OH
OH
OH
OH
Youngstown
OH
The Dalles
Grants Pass
OR
OR
Lake Oswego
OR
Beaver Falls
Drexel Hill
Ford City
Highspire
Indiana
Matamoras
Monesson
PA
PA
PA
PA
PA
PA
PA
North Fayette
PA
Philadelphia
Pitcairn
PA
PA
457
(493)
1,085
(1,323)
1,091
1,428
1,257
692
883
269
—
(880)
—
—
(1,154)
(373)
1,227
(1,193)
80
384
—
(262)
1,655
(1,172)
824
732
—
(807)
(713)
(422)
1,202
(1,189)
1,011
(599)
148
232
802
2,979
1,693
(50)
(123)
(486)
—
—
1,304
(1,489)
1,064
802
649
1,255
946
(901)
(601)
(644)
(920)
(655)
1,123
(1,222)
—
—
—
—
—
—
483
1,085
1,091
75
412
373
915
1,468
404
216
55
128
292
353
129
547
212
178
87
139
201
393
590
243
266
89
216
676
509
198
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,990
2,700
127
46
722
867
F-180
3
(650)
(773)
447
847
2,182
623
1,669
1,065
1,197
300
250
135
250
775
370
148
125
225
590
185
248
517
3,372
2,283
58
429
290
221
(43)
6/27/2013
1995
— 12/12/2012
2012
(346)
9/28/2012
1997
(10)
11/13/2012
2003
(384)
3/29/2013
2013
(220)
9/28/2012
2012
(18)
2/7/2014
2003
(1)
6/27/2013
1980
— 8/1/2010
1981
(24)
6/27/2013
1979
(10)
7/31/2013
1985
— 8/1/2010
1974
(2)
7/31/2013
1969
(5)
7/31/2013
1995
— 6/27/2013
1974
— 8/1/2010
(7)
8/1/2010
1958
1976
(1)
6/27/2013
1995
(1)
6/27/2013
1976
(219)
7/31/2013
1994
(845)
1/8/2014
1963
(510)
6/27/2013
1995
(56)
1/8/2014
2004
— 12/14/2012
1950
— 12/14/2012
1975
— 12/14/2012
1974
1,011
(139)
7/31/2013
2000
800
99
— 12/14/2012
1920
(5)
8/1/2010
4,693
(656)
2/7/2014
1930
1999
199
140
— 12/14/2012
1920
— 12/14/2012
1985
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Pittsburgh
Pittsburgh
Shamokin
Greenville
North
Charleston
Memphis
Sevierville
Bay City
Gun Barrel
City
Houston
Houston
Killeen
Waco
Midlothian
Norfolk
White River
Junction
Schofield
PA
PA
PA
SC
SC
TN
TN
TX
TX
TX
TX
TX
TX
VA
VA
VT
WI
Vanguard Car
Rental
College Park
GA
Velox Insurance
Woodstock
Verizon Wireless
Statesville
The Vitamin
Shoppe
The Vitamin
Shoppe
Evergreen
Park
Ashland
GA
NC
IL
VA
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
185
255
54
280
2,193
100
1,443
229
300
900
1,051
1,019
217
342
4,636
283
430
124
961
1,749
2,640
10,559
534
595
230
656
183
106
1,561
155
207
476
992
892
1,300
437
196
6,244
127
459
1,427
2,399
19,663
—
—
(108)
(482)
—
167
(751)
(220)
(866)
—
—
(803)
(842)
(861)
—
—
—
40
27
—
—
1,039
(836)
1,236
1,274
163
140
(312)
12/14/2012
1960
(302)
12/14/2012
1970
(3)
7/31/2013
1995
(4)
7/31/2013
1970
6,829
(1,290)
2/7/2014
2008
550
1,122
133
395
— 6/27/2013
1995
(92)
2/7/2014
2003
(7)
7/31/2013
1985
(26)
6/27/2013
1995
2,649
(527)
6/27/2013
1995
13,199
(2,763)
5/19/2014
2004
723
645
669
(99)
7/31/2013
1993
— 7/31/2013
1995
(60)
6/27/2013
1995
1,093
(126)
4/12/2013
1990
386
302
(12)
8/1/2010
1975
(55)
7/31/2013
1987
7,805
(2,114)
5/19/2014
2002
322
693
(40)
7/31/2013
1988
(138)
6/27/2013
1993
1,903
(429)
4/19/2013
2012
22,062
(6,088)
11/5/2013
2013
Volusia Square
Daytona Beach
FL
16,557
4,598
28,511
(18,165)
14,944
(202)
2/7/2014
1986
Waffle House
Cocoa
Walgreens
Birmingham
Walgreens
Talladega
Walgreens
Wetumpka
Walgreens
Kingman
Walgreens
Phoenix
Walgreens
Tucson
Walgreens
Tucson
Walgreens
Coalinga
FL
AL
AL
AL
AZ
AZ
AZ
AZ
CA
—
1,487
—
—
2,861
—
—
150
996
377
547
669
1,037
1,234
2,910
1,406
2,800
396
279
3,005
1,311
3,102
5,726
1,927
5,143
3,571
3,568
F-181
—
—
—
—
—
—
—
—
—
429
4,001
1,688
3,649
6,395
2,964
6,377
4,977
3,964
(78)
7/31/2013
1986
(880)
2/7/2014
(395)
1/8/2014
1999
1997
(1,105)
2/22/2012
2007
(1,547)
2/7/2014
2009
(624)
3/26/2013
1999
(1,386)
2/7/2014
(984)
2/7/2014
2003
2004
(1,307)
10/11/2011
2008
Property
City
State
Walgreens
Lancaster
Walgreens
Castle Rock
Walgreens
Denver
Walgreens
Pueblo
Walgreens
Orlando
Walgreens
Acworth
Walgreens
Decatur
Walgreens
Grayson
Walgreens
Tucker
Walgreens
Twin Falls
Walgreens
Cahokia
Walgreens
Chicago
Walgreens
Chicago
Walgreens
Chicago
Walgreens
Chicago
Walgreens
Matteson
Walgreens
South Elgin
Walgreens
St. Charles
Walgreens
Anderson
Walgreens
Jeffersonville
Walgreens
Lafayette
Walgreens
South Bend
CA
CO
CO
CO
FL
GA
GA
GA
GA
ID
IL
IL
IL
IL
IL
IL
IL
IL
IN
IN
IN
IN
Walgreens
Lawrenceburg
KY
Walgreens
Lexington
Walgreens
Paris
Walgreens
Scottsville
Walgreens
Stanford
KY
KY
KY
KY
Walgreens
Shereveport
LA
Walgreens
Adams
MA
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
2,719
859
3,953
1,581
3,350
—
—
—
—
2,720
—
—
519
1,007
1,583
1,746
947
793
2,322
1,156
—
—
—
—
—
2,450
394
1,212
1,617
952
911
416
2,158
1,710
1,935
1,472
—
—
—
807
824
626
2,978
1,240
—
—
—
—
—
—
—
567
—
743
153
152
619
300
—
—
—
—
—
—
—
—
—
—
167
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,246
3,689
4,050
2,971
1,869
2,940
3,337
3,747
1,419
3,896
1,577
2,829
3,003
3,235
4,830
4,070
3,208
3,262
3,227
2,472
4,183
5,014
2,267
1,943
2,228
2,904
2,886
3,509
1,200
4,770
2,764
4,160
F-182
5,105
5,270
4,050
3,490
2,876
4,523
5,083
4,694
2,212
5,052
2,138
4,041
4,620
4,187
5,741
4,486
4,918
4,734
4,034
3,296
4,809
6,254
2,834
1,943
2,971
3,057
3,038
4,128
1,500
6,873
3,949
5,576
(1,254)
2/7/2014
2009
(1,157)
7/11/2013
2002
(1,271)
7/2/2013
(812)
2/7/2014
2008
2003
(577)
9/30/2013
1996
(966)
1/25/2013
2012
(911)
2/7/2014
(1,007)
2/7/2014
(427)
1/8/2014
(1,096)
2/7/2014
2001
2004
1996
2009
(537)
5/19/2014
1994
(930)
1/30/2013
1999
(987)
1/30/2013
1995
(864)
2/7/2014
(1,258)
2/7/2014
(1,043)
2/7/2014
(892)
2/7/2014
(869)
2/7/2014
2003
2000
2008
2002
2002
(1,109)
7/31/2012
2001
(825)
11/30/2012
2008
(1,008)
2/7/2014
(1,399)
2/7/2014
2008
2006
(757)
11/30/2012
2008
(648)
11/30/2012
2007
(744)
11/30/2012
2008
(969)
11/30/2012
2007
(963)
11/30/2012
2009
(1,250)
2/22/2012
2003
(376)
7/30/2013
1958
(1,265)
2/7/2014
(860)
8/6/2013
(1,099)
2/7/2014
2007
2000
2008
Walgreens
Framingham
MA
2,908
2,103
Walgreens
Baltimore
MD
Walgreens
Brooklyn Park MD
—
—
1,185
1,416
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
3,013
1,648
5,146
—
Property
City
State
Walgreens
Augusta
Walgreens
Walgreens
Buxton
Dover-
Foxcroft
ME
ME
ME
Walgreens
Fort Fairfield
ME
Walgreens
Fort Kent
ME
Walgreens
Clarkston
Walgreens
Walgreens
Clinton
Dearborn
Heights
Walgreens
Eastpointe
Walgreens
Lincoln Park
Walgreens
Livonia
Walgreens
Stevensville
Walgreens
Troy
Walgreens
Warren
MI
MI
MI
MI
MI
MI
MI
MI
MI
—
—
—
—
—
—
—
—
—
256
117
387
2,768
1,463
190
668
5,494
1,041
—
3,099
—
—
261
855
—
748
Walgreens
North Mankato MN
2,415
1,748
Walgreens
Country Club
Hills
Walgreens
Columbia
Walgreens
Greenwood
Walgreens
Burlington
MO
MS
MS
NC
Walgreens
Cape Carteret
NC
Walgreens
Durham
Walgreens
Durham
Walgreens
Laurinburg
Walgreens
Leland
NC
NC
NC
NC
—
—
—
—
—
997
452
561
973
919
2,871
1,441
2,720
2,201
—
355
2,472
1,226
Walgreens
Rocky Mount
NC
2,857
1,105
Walgreens
Wilson
Walgreens
Winterville
Walgreens
North Platte
Walgreens
Omaha
Walgreens
Papillion
Walgreens
Maplewood
NC
NC
NE
NE
NE
NJ
—
2,889
—
573
578
935
2,460
1,316
—
1,239
4,700
1,071
—
2,131
22
76
20
—
50
3
—
—
96
—
3
3
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,659
1,821
2,064
3,197
3,413
3,605
2,672
5,896
2,350
3,420
1,896
2,990
3,604
4,204
4,072
3,181
2,726
3,087
3,581
2,923
3,577
3,681
4,046
1,337
5,322
4,291
4,122
3,212
6,071
F-183
6,794
2,131
2,937
2,014
2,471
5,965
4,926
3,798
3,340
6,937
2,707
4,275
1,899
3,741
5,352
5,201
4,524
3,742
3,699
4,006
5,022
5,124
3,932
4,907
5,151
1,910
5,900
5,226
5,438
4,451
7,142
(1,456)
2/7/2014
2007
(477)
5/19/2014
1997
(818)
1/8/2014
(562)
1/8/2014
(621)
1/8/2014
(879)
2/7/2014
1999
1998
1999
2000
(1,140)
11/13/2012
2002
(1,158)
4/1/2013
1998
(959)
1/19/2012
1998
(2,027)
7/31/2012
2007
(756)
4/1/2013
1998
(1,244)
11/28/2011
2007
(628)
12/12/2012
2000
(998)
11/21/2012
1999
(1,000)
2/7/2014
(1,058)
2/7/2014
2008
2009
(1,349)
12/21/2012
2011
(1,133)
2/22/2012
2007
(838)
1/8/2014
(839)
2/7/2014
(1,085)
2/7/2014
(963)
2/7/2014
2000
2008
2010
2008
(1,031)
2/26/2014
2013
(1,029)
2/7/2014
(1,250)
2/7/2014
2008
2009
(419)
7/30/2013
2002
(1,528)
2/7/2014
(1,205)
2/7/2014
(1,145)
2/7/2014
(875)
2/7/2014
2009
2009
2009
2009
(2,208)
11/18/2011
2011
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Walgreens
Albuquerque
NM
—
1,173
Walgreens
Las Vegas
Walgreens
Las Vegas
Walgreens
Lockport
NV
NV
NY
6,566
1,528
—
—
700
2,358
Walgreens
Staten Island
NY
3,081
—
Walgreens
Watertown
Walgreens
Akron
Walgreens
Bryan
Walgreens
Cleveland
Walgreens
Cleveland
Walgreens
Eaton
Walgreens
Medina
NY
OH
OH
OH
OH
OH
OH
Walgreens
New Albany
OH
Walgreens
Edmond
Walgreens
Stillwater
Walgreens
Tahlequah
Walgreens
Walgreens
Tulsa
Aibonito
Pueblo
Walgreens
Las Piedras
Walgreens
Anderson
Walgreens
Easley
Walgreens
Fort Mill
Walgreens
Greenville
Walgreens
Lancaster
OK
OK
OK
OK
PR
PR
SC
SC
SC
SC
SC
—
2,937
1,684
—
—
2,570
3,067
—
—
2,240
—
—
—
664
219
472
743
398
820
919
697
368
647
1,147
5,695
1,855
5,293
1,726
—
835
3,686
1,206
2,180
1,300
3,991
1,313
2,841
1,941
Walgreens
Myrtle Beach
SC
—
—
Walgreens
N. Charleston
SC
3,379
1,320
Walgreens
Spartanburg
SC
Walgreens
Travelers Rest
SC
Walgreens
Spearfish
Walgreens
Bartlett
Walgreens
Cordova
Walgreens
Memphis
SD
TN
TN
TN
—
—
—
—
—
—
894
882
1,116
2,358
1,005
896
—
—
—
—
—
—
71
—
68
—
—
—
—
—
87
—
—
—
—
—
—
(232)
—
—
—
—
—
—
—
—
—
—
2,287
6,114
2,801
2,301
3,984
2,664
1,548
4,154
1,890
4,757
3,586
4,585
3,424
4,287
4,368
3,664
2,904
5,566
5,179
3,342
3,617
2,760
3,940
3,526
2,077
3,081
3,575
3,527
4,158
2,194
2,345
2,687
F-184
3,460
7,642
3,501
4,659
3,984
5,601
2,283
4,373
2,430
5,500
3,984
5,405
4,343
4,984
4,823
4,311
4,051
7,421
6,905
4,177
4,823
3,828
5,253
5,467
2,077
4,401
4,469
4,409
5,274
4,552
3,350
3,583
(636)
2/7/2014
1996
(2,132)
5/30/2012
2009
(900)
4/30/2013
2001
(652)
4/21/2014
1998
(1,459)
10/5/2011
2007
(747)
2/7/2014
2006
(496)
5/31/2013
1994
(1,480)
2/22/2012
2007
(534)
5/19/2014
1994
(1,330)
2/7/2014
2008
(1,242)
6/27/2012
2008
(1,209)
2/7/2014
2001
(900)
2/7/2014
2006
(1,169)
2/7/2014
2000
(1,189)
2/7/2014
2000
(1,205)
1/2/2013
2008
(791)
2/7/2014
2001
(1,802)
3/5/2013
2012
(1,664)
4/3/2013
1995
(1,190)
2/8/2012
2006
(1,253)
6/27/2012
2007
(844)
2/7/2014
2010
(1,364)
6/27/2012
2006
(1,091)
2/7/2014
2009
(750)
12/29/2011
2001
(1,067)
6/27/2012
2007
(986)
5/19/2014
2004
(972)
5/19/2014
2005
(1,144)
2/7/2014
2008
(593)
2/7/2014
2001
(783)
11/9/2012
2002
(903)
10/2/2012
2003
Wal-Mart
Pueblo
CO
8,249
2,586
12,512
Property
City
State
Walgreens
Murfreesboro
TN
Walgreens
Anthony
Walgreens
Baytown
Walgreens
Houston
Walgreens
Portsmouth
Walgreens
Appleton
Walgreens
Appleton
Walgreens
Beloit
Walgreens
Janesville
Walgreens
Janesville
TX
TX
TX
VA
WI
WI
WI
WI
WI
Walgreens
Huntington
WV
Wal-Mart
Douglasville
GA
Wal-Mart
Valdosta
Wal-Mart
Cary
GA
NC
Wal-Mart
Albuquerque
NM
Wal-Mart
Las Vegas
Wal-Mart
Lancaster
NV
SC
Waste
Connections
Weatherford
TX
WaWa
WaWa
Gap
Portsmouth
Weir Oil and Gas Williston
Wells Fargo
Bristol
Wells Fargo
Lebanon
Welspun Global
Trade
Houston
Wendy's
Anniston
Wendy's
Auburn
Wendy's
Birmingham
Wendy's
Homewood
Wendy's
Phenix City
Wendy's
Batesville
Wendy's
Benton
PA
VA
ND
PA
PA
TX
AL
AL
AL
AL
AL
AR
AR
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,364
—
—
1,792
454
644
953
491
730
975
2,612
1,198
2,184
721
—
1,039
2,134
—
593
964
1,817
4,369
4,298
1,965
3,311
3,047
4,344
3,653
5,315
4,009
2,250
3,559
3,909
2,314
10,991
17,038
17,588
9,447
5,549
—
—
2,714
11,677
—
—
—
—
—
—
—
—
102
561
1,241
1,573
—
—
—
273
114
80
3,386
(2,911)
5,054
—
6,232
81
435
—
—
—
118
89
2,271
5,013
5,251
2,456
4,041
4,022
5,542
4,374
6,354
4,602
3,214
(501)
5/19/2014
1999
(1,124)
2/7/2014
2008
(1,152)
2/7/2014
2009
(632)
5/19/2014
1993
(1,006)
11/5/2013
1998
(838)
2/7/2014
2008
(1,202)
2/7/2014
2008
(1,017)
2/7/2014
2008
(1,453)
2/7/2014
2008
(1,090)
2/7/2014
2010
(751)
11/30/2012
2008
15,098
(3,488)
2/7/2014
1998
21,147
(4,559)
2/7/2014
1999
13,356
(2,525)
2/7/2014
1998
7,863
(1,462)
2/7/2014
2005
10,991
17,038
— 2/7/2014
2008
— 2/7/2014
2001
14,391
(3,121)
2/7/2014
1999
577
5,615
1,573
6,505
313
604
(175)
6/12/2014
2011
(1,313)
2/7/2014
2004
— 2/7/2014
2008
(1,242)
6/25/2014
2012
(31)
1/8/2014
1818
(128)
1/8/2014
1995
19,524
2,356
36,347
(19,687)
19,016
— 11/5/2013
2009
—
—
—
—
—
—
—
454
718
562
995
529
155
478
591
1,333
990
—
1,178
878
1,018
F-185
—
—
—
—
—
—
—
1,045
2,051
1,552
995
1,707
1,033
1,496
(175)
6/27/2013
1976
(374)
7/31/2013
2000
(293)
6/27/2013
2005
— 6/27/2013
1995
(349)
6/27/2013
1999
(246)
7/31/2013
1995
(302)
6/27/2013
1993
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Wendy's
Bentonville
Wendy's
Wendy's
Bryant
Cabot
Wendy's
Conway
Wendy's
Conway
Wendy's
Fayetteville
Wendy's
Fayetteville
Wendy's
Fort Smith
Wendy's
Fort Smith
Wendy's
Little Rock
Wendy's
Little Rock
Wendy's
Little Rock
Wendy's
Little Rock
Wendy's
Little Rock
Wendy's
Little Rock
Wendy's
Pine Bluff
Wendy's
Rogers
Wendy's
Russellville
Wendy's
Springdale
Wendy's
Springdale
Wendy's
Stuttgart
Wendy's
Van Buren
Wendy's
Camarillo
Wendy's
Groton
Wendy's
Norwich
Wendy's
Orange
Wendy's
Indialantic
Wendy's
Lake Wales
Wendy's
Lynn Haven
Wendy's
Melbourne
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
AR
CA
CT
CT
CT
FL
FL
FL
FL
Wendy's
Merritt Island
FL
Wendy's
New Smyrna
Beach
FL
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
648
529
524
478
482
408
463
195
63
278
990
605
501
773
532
221
579
356
323
410
67
197
320
1,099
703
1,343
592
975
446
550
720
476
708
575
707
594
833
830
463
1,186
1,016
878
623
463
500
773
650
1,022
912
638
896
821
1,038
748
2,253
900
937
1,641
614
1,462
852
680
589
394
F-186
—
—
—
—
—
—
—
(11)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,356
1,104
1,231
1,072
1,315
1,238
926
1,370
1,079
1,156
1,613
1,068
1,001
1,546
1,182
1,243
1,491
994
1,219
1,231
1,105
945
2,573
1,999
1,640
2,984
1,206
2,437
1,298
1,230
1,309
870
(210)
6/27/2013
1993
(170)
6/27/2013
1995
(209)
6/27/2013
1991
(176)
6/27/2013
1985
(247)
6/27/2013
1994
(246)
6/27/2013
1994
(130)
7/31/2013
1989
(352)
6/27/2013
1995
(301)
6/27/2013
1995
(260)
6/27/2013
1976
(464)
6/27/2013
1982
(137)
6/27/2013
1987
(141)
7/31/2013
1983
(217)
7/31/2013
1994
(182)
7/31/2013
1978
(303)
6/27/2013
1989
(270)
6/27/2013
1995
(189)
6/27/2013
1985
(265)
6/27/2013
1994
(243)
6/27/2013
1995
(308)
6/27/2013
2001
(221)
6/27/2013
1994
(661)
6/27/2013
1995
(252)
7/31/2013
1978
(278)
6/27/2013
1980
(461)
7/31/2013
1995
(182)
6/27/2013
1985
(410)
7/31/2013
1999
(252)
6/27/2013
1995
(202)
6/27/2013
1993
(165)
7/31/2013
1990
(117)
6/27/2013
1982
Property
City
State
Wendy's
Ormond Beach
FL
Wendy's
Ormond Beach
FL
Wendy's
Panama City
Wendy's
Panama City
Wendy's
Port Orange
FL
FL
FL
Wendy's
South Daytona
FL
Wendy's
Tallahassee
Wendy's
Tallahassee
Wendy's
Titusville
Wendy's
Titusville
Wendy's
Albany
Wendy's
Albany
Wendy's
Marietta
Wendy's
Brunswick
Wendy's
Columbus
Wendy's
Columbus
Wendy's
Columbus
Wendy's
Columbus
FL
FL
FL
FL
GA
GA
GA
GA
GA
GA
GA
GA
Wendy's
Douglasville
GA
Wendy's
Eastman
Wendy's
Fairburn
Wendy's
Hogansville
GA
GA
GA
Wendy's
Lithia Springs
GA
Wendy's
Morrow
Wendy's
Savannah
Wendy's
Sharpsburg
Wendy's
Bourbonnais
Wendy's
Joliet
Wendy's
Kankakee
Wendy's
Mokena
Wendy's
Normal
Wendy's
Anderson
GA
GA
GA
IL
IL
IL
IL
IL
IN
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
626
503
461
445
695
531
952
855
415
414
414
383
383
306
701
743
478
223
605
258
561
503
529
837
569
432
514
505
761
770
1,656
748
506
435
1,787
1,184
2,209
1,380
776
473
1,076
1,316
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
240
668
755
720
649
346
642
250
665
443
872
1,359
(1,081)
—
—
—
—
—
—
—
—
—
—
774
922
720
1,299
1,039
963
1,419
997
991
736
F-187
1,187
1,006
990
1,282
1,264
963
1,466
1,360
1,176
1,184
2,070
1,131
889
741
2,488
1,927
2,687
1,603
1,381
731
2,392
518
1,442
1,677
1,440
1,948
1,385
1,605
1,669
1,662
1,434
1,608
(166)
6/27/2013
1994
(141)
7/31/2013
1984
(157)
6/27/2013
1984
(248)
6/27/2013
1987
(160)
7/31/2013
1996
(128)
6/27/2013
1980
(152)
6/27/2013
1986
(149)
6/27/2013
1986
(225)
6/27/2013
1984
(216)
7/31/2013
1996
(465)
7/31/2013
1995
(199)
3/26/2014
1999
(150)
6/27/2013
1994
(129)
6/27/2013
1985
(530)
6/27/2013
1999
(351)
6/27/2013
1988
(655)
6/27/2013
2003
(367)
3/26/2014
1982
(230)
6/27/2013
1993
(140)
6/27/2013
1996
(369)
7/31/2013
2002
(4)
7/31/2013
1985
(229)
6/27/2013
1988
(259)
7/31/2013
1990
(202)
7/31/2013
2001
(385)
6/27/2013
2002
(292)
7/31/2013
1993
(270)
7/31/2013
1977
(398)
7/31/2013
2005
(280)
7/31/2013
1992
(263)
3/26/2014
1985
(218)
6/27/2013
1978
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Wendy's
Anderson
Wendy's
Anderson
Wendy's
Anderson
Wendy's
Wendy's
Avon
Avon
Wendy's
Carmel
Wendy's
Carmel
Wendy's
Connersville
Wendy's
Wendy's
Fishers
Fishers
Wendy's
Greenfield
Wendy's
Indianapolis
Wendy's
Lebanon
Wendy's
Noblesville
Wendy's
Pendleton
Wendy's
Richmond
Wendy's
Richmond
Wendy's
Benton
Wendy's
Louisville
Wendy's
Louisville
Wendy's
Louisville
Wendy's
Mayfield
Wendy's
Minden
Wendy's
Worcester
Wendy's
Baltimore
Wendy's
Wendy's
Baltimore
District
Heights
Wendy's
Landover
Wendy's
Pasadena
Wendy's
Wendy's
Salisbury
Madison
Heights
Wendy's
Picayune
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
IN
KY
KY
KY
KY
KY
LA
MA
MD
MD
MD
MD
MD
MD
MI
MS
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
859
505
584
538
638
736
915
324
855
761
429
751
1,265
590
448
735
661
252
834
532
857
242
182
370
760
904
332
340
1,049
370
198
437
707
757
713
407
330
211
178
1,298
147
229
214
212
108
42
894
1,716
992
926
1,379
1,221
1,420
779
936
1,288
802
1,035
275
267
1,902
1,299
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
725
(477)
1,032
—
F-188
1,566
1,262
1,297
945
968
947
1,093
1,622
1,002
990
643
963
1,373
632
1,342
2,451
1,653
1,178
2,213
1,753
2,277
1,021
1,118
1,658
1,562
1,939
607
607
2,951
1,669
446
1,469
(210)
6/27/2013
1978
(212)
7/31/2013
1995
(200)
7/31/2013
1976
(160)
2/7/2014
1990
(175)
2/7/2014
1999
(90)
2/7/2014
1980
(112)
2/7/2014
2001
(364)
7/31/2013
1989
(94)
2/7/2014
1999
(119)
2/7/2014
2012
(93)
2/7/2014
1980
(114)
2/7/2014
1993
(84)
2/7/2014
1979
(24)
2/7/2014
1988
(265)
6/27/2013
2005
(481)
7/31/2013
1989
(278)
7/31/2013
1989
(246)
3/26/2014
2001
(409)
6/27/2013
2001
(362)
6/27/2013
1998
(421)
6/27/2013
2000
(207)
3/26/2014
1986
(277)
6/27/2013
2001
(378)
6/27/2013
1995
(238)
6/27/2013
1995
(307)
6/27/2013
2002
(81)
6/27/2013
1979
(79)
6/27/2013
1978
(564)
6/27/2013
1997
(381)
6/27/2013
1995
(35)
6/27/2013
1998
(274)
3/26/2014
1983
Property
City
State
Wendy's
Kinston
Wendy's
Bellevue
Wendy's
Millville
Wendy's
Henderson
Wendy's
Henderson
Wendy's
Henderson
Wendy's
Las Vegas
Wendy's
Las Vegas
Wendy's
Las Vegas
Wendy's
Las Vegas
Wendy's
Las Vegas
Wendy's
Las Vegas
Wendy's
Auburn
NC
NE
NJ
NV
NV
NV
NV
NV
NV
NV
NV
NV
NY
Wendy's
Binghamton
NY
Wendy's
Corning
Wendy's
Cortland
Wendy's
Endicott
Wendy's
Fulton
Wendy's
Horseheads
Wendy's
Liverpool
Wendy's
Oswego
Wendy's
Owego
Wendy's
Wendy's
Vestal
Belpre
NY
NY
NY
NY
NY
NY
NY
NY
NY
OH
Wendy's
Bowling Green OH
Wendy's
Brookville
OH
Wendy's
Buckeye Lake
OH
Wendy's
Centerville
OH
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
1,650
822
1,542
1,775
1,339
1,292
987
1,481
1,372
1,183
1,639
1,025
1,550
1,172
1,908
1,587
1,566
1,573
1,441
1,394
835
2,016
1,366
1,491
508
1,520
1,741
2,049
(302)
5/1/2014
2004
(143)
6/27/2013
1981
(346)
6/27/2013
1994
(266)
2/7/2014
1997
(144)
2/7/2014
1999
(173)
2/7/2014
2000
(162)
2/7/2014
1976
(185)
2/7/2014
1976
(164)
2/7/2014
1984
(149)
2/7/2014
1986
(222)
2/7/2014
1991
(113)
2/7/2014
1994
(304)
7/31/2013
1977
(247)
7/31/2013
1978
(482)
7/31/2013
1996
(267)
7/31/2013
1984
(352)
7/31/2013
1987
(314)
3/26/2014
1980
(384)
7/31/2013
1982
(104)
3/26/2014
1980
(171)
3/26/2014
1986
(537)
7/31/2013
1989
(105)
3/26/2014
1995
(317)
3/26/2014
2000
(54)
7/31/2013
1994
(285)
3/26/2014
1984
(260)
6/27/2013
2000
(402)
7/31/2013
1997
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
491
338
373
933
882
785
398
919
789
725
915
633
465
293
191
635
313
392
72
530
190
101
488
297
502
448
864
615
1,159
484
1,169
842
457
507
589
562
583
458
724
392
1,085
879
1,717
952
1,253
1,181
1,369
864
645
1,915
878
1,194
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
932
(926)
1,072
877
1,434
—
—
—
F-189
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Wendy's
Cincinnati
Wendy's
Dayton
Wendy's
Dayton
Wendy's
Dayton
Wendy's
Dayton
Wendy's
Dayton
Wendy's
Dayton
Wendy's
Dayton
Wendy's
Eaton
Wendy's
Englewood
Wendy's
Fairborn
Wendy's
Fairborn
Wendy's
Fairborn
Wendy's
Fairfield
Wendy's
Hamilton
Wendy's
Hamilton
Wendy's
Hamilton
Wendy's
Hillsboro
Wendy's
Lancaster
Wendy's
Miamisburg
Wendy's
Middletown
Wendy's
Middletown
Wendy's
Middletown
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
OH
Wendy's
Saint Bernard
OH
Wendy's
Springboro
Wendy's
Swanton
Wendy's
Wendy's
Sylvania
West
Carrollton
OH
OH
OH
OH
Wendy's
West Chester
OH
Wendy's
West Chester
OH
Wendy's
Whitehall
OH
Wendy's
Wintersville
OH
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
939
723
304
288
342
274
286
259
207
261
629
604
271
794
655
697
908
291
552
888
755
752
494
432
891
430
300
708
944
616
716
621
1,408
1,343
1,264
813
848
1,029
869
838
1,084
924
1,468
1,408
828
970
1,848
1,295
1,362
1,408
1,025
1,086
1,133
920
1,481
1,009
1,336
1,233
799
865
772
924
863
1,449
F-190
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,347
2,066
1,568
1,101
1,190
1,303
1,155
1,097
1,291
1,185
2,097
2,012
1,099
1,764
2,503
1,992
2,270
1,699
1,577
1,974
1,888
1,672
1,975
1,441
2,227
1,663
1,099
1,573
1,716
1,540
1,579
2,070
(395)
7/31/2013
1980
(377)
7/31/2013
1977
(335)
3/26/2014
1974
(216)
3/26/2014
1985
(225)
3/26/2014
1973
(283)
3/26/2014
2004
(231)
3/26/2014
1977
(223)
3/26/2014
1985
(130)
3/26/2014
1993
(245)
3/26/2014
1976
(412)
7/31/2013
1999
(395)
7/31/2013
1992
(220)
3/26/2014
1975
(272)
7/31/2013
1981
(547)
6/27/2013
2001
(363)
7/31/2013
1974
(382)
7/31/2013
2002
(417)
6/27/2013
1985
(288)
7/31/2013
1984
(305)
7/31/2013
1995
(318)
7/31/2013
1995
(258)
7/31/2013
1995
(416)
7/31/2013
1977
(283)
7/31/2013
1985
(375)
7/31/2013
1982
(362)
6/27/2013
1995
(234)
6/27/2013
1995
(243)
7/31/2013
1979
(217)
7/31/2013
1982
(259)
7/31/2013
2005
(256)
6/27/2013
1983
(407)
7/31/2013
1977
Property
City
State
Wendy's
Edmond
Wendy's
Enid
Wendy's
Ponca City
Wendy's
Sayre
Wendy's
Anderson
Wendy's
Columbia
Wendy's
Wendy's
Greenville
N. Myrtle
Beach
Wendy's
Spartanburg
Wendy's
Brentwood
Wendy's
Crossville
Wendy's
Knoxville
Wendy's
Knoxville
Wendy's
Manchester
OK
OK
OK
PA
SC
SC
SC
SC
SC
TN
TN
TN
TN
TN
Wendy's
Mcminnville
TN
Wendy's
Millington
TN
Wendy's
Murfreesboro
TN
Wendy's
Nashville
Wendy's
Nashville
Wendy's
Arlington
TN
TN
TX
Wendy's
Corpus Christi
TX
Wendy's
El Paso
Wendy's
Kingwood
Wendy's
San Antonio
Wendy's
San Antonio
Wendy's
San Antonio
Wendy's
San Antonio
Wendy's
San Antonio
Wendy's
San Antonio
Wendy's
San Antonio
Wendy's
San Marcos
Wendy's
Schertz
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
791
158
529
372
734
1,368
516
464
699
339
190
330
330
245
255
380
586
592
328
1,322
646
630
304
268
410
707
633
1,007
703
788
714
793
697
893
983
1,115
897
—
631
861
572
1,356
760
1,161
1,132
1,390
1,443
1,208
1,088
1,100
1,313
1,546
1,198
1,889
1,724
630
451
603
1,388
546
45
45
1,024
109
F-191
—
—
—
—
(1,168)
—
—
—
(818)
—
—
—
—
—
—
—
—
—
—
—
—
—
(944)
—
—
—
—
—
—
—
—
—
1,488
1,051
1,512
1,487
463
1,368
1,147
1,325
453
1,695
950
1,491
1,462
1,635
1,698
1,588
1,674
1,692
1,641
2,868
1,844
2,519
1,084
898
861
1,310
2,021
1,553
748
833
1,738
902
(185)
3/27/2014
1979
(251)
7/31/2013
2003
(276)
7/31/2013
1979
(313)
7/31/2013
1994
(11)
7/31/2013
1995
(37)
6/27/2013
1995
(177)
7/31/2013
1975
(242)
7/31/2013
1983
(4)
7/31/2013
1977
(380)
7/31/2013
1982
(213)
7/31/2013
1978
(341)
6/27/2013
1995
(332)
6/27/2013
1995
(390)
7/31/2013
1984
(405)
7/31/2013
2010
(354)
6/27/2013
1995
(305)
7/31/2013
1983
(309)
7/31/2013
1983
(368)
7/31/2013
1983
(458)
6/27/2013
1994
(336)
7/31/2013
1987
(530)
7/31/2013
1996
(120)
7/31/2013
2001
(187)
6/27/2013
1985
(134)
6/27/2013
1987
(159)
2/7/2014
1990
(337)
2/7/2014
1992
(148)
2/7/2014
1995
(24)
2/7/2014
2000
(24)
2/7/2014
2003
(262)
2/7/2014
2002
(34)
2/7/2014
1994
Property
City
State
Wendy's
Selma
Wendy's
Bluefield
TX
VA
Wendy's
Christiansburg
VA
Wendy's
Dublin
Wendy's
Emporia
Wendy's
Hayes
Wendy's
Hillsville
Wendy's
Lebanon
VA
VA
VA
VA
VA
Wendy's
Mechanicsville
VA
Wendy's
Pounding Mill
VA
Wendy's
Woodbridge
Wendy's
Woodbridge
Wendy's
Wytheville
VA
VA
VA
Wendy's
Bellingham
WA
Wendy's
Bothell
Wendy's
Burlington
WA
WA
Wendy's
Port Angeles
WA
Wendy's
Redmond
Wendy's
Silverdale
Wendy's
Beloit
Wendy's
Fitchburg
WA
WA
WI
WI
Wendy's
Germantown
WI
Wendy's
Greenfield
Wendy's
Janesville
Wendy's
Kenosha
Wendy's
Kenosha
Wendy's
Madison
Wendy's
Milwaukee
Wendy's
Milwaukee
Wendy's
Milwaukee
Wendy's
New Berlin
Wendy's
Oak Creek
WI
WI
WI
WI
WI
WI
WI
WI
WI
WI
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
841
450
416
384
631
304
324
431
521
296
1,193
521
598
502
687
425
422
969
808
1,138
662
419
487
647
322
965
454
810
338
436
903
577
117
1,927
624
1,401
1,424
859
973
1,006
704
1,404
1,598
615
897
477
292
806
502
123
201
931
1,230
1,257
1,137
971
1,290
1,447
1,362
810
1,351
1,015
739
1,347
F-192
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
958
2,377
1,040
1,785
2,055
1,163
1,297
1,437
1,225
1,700
2,791
1,136
1,495
979
979
1,231
924
1,092
1,009
2,069
1,892
1,676
1,624
1,618
1,612
2,412
1,816
1,620
1,689
1,451
1,642
1,924
(31)
2/7/2014
2003
(565)
6/27/2013
1995
(175)
7/31/2013
1980
(416)
6/27/2013
1993
(422)
6/27/2013
1994
(255)
6/27/2013
1992
(273)
7/31/2013
2001
(282)
7/31/2013
1983
(209)
6/27/2013
1989
(416)
6/27/2013
2004
(473)
6/27/2013
1996
(182)
6/27/2013
1978
(252)
7/31/2013
2003
(132)
2/7/2014
1994
(63)
2/7/2014
2004
(239)
6/27/2013
1994
(236)
2/7/2014
1980
(22)
2/7/2014
1977
(154)
2/7/2014
1995
(261)
7/31/2013
2002
(345)
7/31/2013
2003
(353)
7/31/2013
1989
(319)
7/31/2013
2001
(272)
7/31/2013
1991
(362)
7/31/2013
1984
(406)
7/31/2013
1986
(382)
7/31/2013
1998
(227)
7/31/2013
1979
(379)
7/31/2013
1985
(285)
7/31/2013
1983
(207)
7/31/2013
1983
(378)
7/31/2013
1999
Initial Costs (1)
Encumbrances
at
December 31,
2018
Buildings,
Fixtures and
Improvements
Land
Costs
Capitalized
Subsequent
to
Acquisition
(2)
Gross Amount
Carried at
December 31,
2018
(3) (4)
Accumulated
Depreciation
(3) (5)
Date
Acquired
Date of
Construction
Property
City
State
Wendy's
Sheboygan
Wendy's
West Allis
Wendy's
Beaver
Wendy's
Bridgeport
WI
WI
WV
WV
Wendy's
Buckhannon
WV
Wendy's
Clarksburg
Wendy's
Fairmont
WV
WV
Wendy's
Parkersburg
WV
Wendy's
Parkersburg
WV
Wendy's
Parkersburg
WV
Wendy's
Ripley
WV
Wendy's
Saint Marys
WV
Wendy's
Vienna
WV
West Marine
Anchorage
AK
West Marine
West Marine
Fort
Lauderdale
Harrison
Township
West Marine
Deltaville
Whataburger
Edna
Whataburger
El Campo
Whataburger
Ingleside
Whataburger
Lubbock
Whole Foods
Hinsdale
Wild Bill's
Sports Salon
Rochester
Willbros Group,
Inc.
Tulsa
FL
MI
VA
TX
TX
TX
TX
IL
MN
OK
Williams
Sonoma
Olive Branch
MS
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
676
583
290
273
157
277
224
295
311
241
273
70
301
1,220
4,337
452
425
290
693
1,106
432
5,709
5,499
—
—
—
1,347
2,239
2,330
1,014
1,083
1,156
818
890
1,181
1,119
885
1,243
964
871
1,322
702
2,531
9,052
2,092
2,409
869
1,013
474
647
7,388
1,102
6,375
44,266
Winn-Dixie
Jacksonville
FL
63,240
4,360
82,834
Worrior Energy
Services
Midland
Other
N/A
TX
N/A
—
—
508
—
815
13,345
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
25
1,690
1,666
1,446
1,091
1,047
1,458
1,343
1,180
1,554
1,205
1,144
1,392
1,003
3,751
(284)
7/31/2013
1995
(304)
7/31/2013
1984
(339)
6/27/2013
1995
(230)
7/31/2013
1984
(250)
7/31/2013
1987
(314)
3/26/2014
1980
(332)
6/27/2013
1983
(248)
7/31/2013
1979
(349)
7/31/2013
1977
(271)
7/31/2013
1996
(258)
6/27/2013
1984
(371)
7/31/2013
2001
(197)
7/31/2013
1976
(644)
3/31/2014
1995
13,389
(2,099)
2/7/2014
2011
2,544
2,834
1,159
1,706
1,580
1,079
(676)
2/7/2014
2009
(776)
7/31/2012
2012
(244)
7/31/2013
1986
(300)
6/27/2013
1986
(133)
7/31/2013
1986
(182)
7/31/2013
1992
12,887
(2,086)
2/7/2014
1999
2,449
8,614
(344)
7/31/2013
1993
(1,200)
6/25/2014
1982
46,596
(15,753)
8/10/2012
2001
87,194
(21,852)
4/24/2013
2000
1,323
(187)
6/25/2014
2012
13,370
(3,642)
N/A
N/A
$
1,917,132
$ 2,884,968
$ 10,791,126
$
(83,654)
$
13,592,440
$ (2,622,879)
_______________________________________________
F-193
(1) Initial costs exclude subsequent impairment charges.
(2) Consists of capital expenditures and real estate development costs, net of condemnations, easements and impairment charges.
(3) Gross intangible lease assets of $2.01 billion and the associated accumulated amortization of $813.9 million are not reflected in the table
above.
(4) The aggregate cost for Federal income tax purposes of land, buildings, fixtures and improvements as of December 31, 2018 was $15.4
billion.
(5) Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, five to 15 years for
building fixtures and improvements.
The following is a reconciliation of the gross real estate activity for the years ended December 31, 2018, 2017 and 2016
(amounts in thousands):
Balance, beginning of year
Additions:
Acquisitions
Improvements
Deductions/Other:
Dispositions
Impairments
Reclassified to assets held for sale
Other
Balance, end of year
Years Ended December 31,
2018
13,577,700
$
2017
13,539,921
$
2016
14,566,343
437,227
31,898
634,080
28,503
(368,808)
(84,278)
(2,997)
1,698
13,592,440
$
(505,403)
(82,292)
(52,376)
15,267
13,577,700
$
91,052
25,781
(878,552)
(228,750)
(36,722)
769
13,539,921
$
$
The following is a reconciliation of the accumulated depreciation for the years ended December 31, 2018, 2017 and 2016
(amounts in thousands):
Balance, beginning of year
Additions:
Depreciation expense
Deductions/Other:
Dispositions
Impairments
Reclassified to assets held for sale
Other
Balance, end of year
Years Ended December 31,
2018
2017
2016
$
2,217,108
$
1,766,006
$
1,331,751
497,511
548,901
586,321
(57,346)
(32,147)
(400)
(1,847)
2,622,879
$
(34,086)
(50,828)
(12,885)
—
2,217,108
$
(77,987)
(69,040)
(5,039)
—
1,766,006
$
F-194
VEREIT, INC. AND VEREIT OPERATING PARTNERSHIP, L.P.
SCHEDULE IV – MORTGAGE LOANS ON REAL ESTATE
December 31, 2018 (in thousands)
Schedule IV – Mortgage Loans on Real Estate
Description
Location
Long-Term Mortgage Loans
Interest
Rate
Final
Maturity
Date
Periodic
Payment
Terms
Prior
Liens
Face Amount
of Mortgages
Carrying
Amount of
Mortgages (1)
Principal Amount of
Loans Subject to
Delinquent
Principal or Interest
CVS Caremark
Corporation
CVS Caremark
Corporation
CVS Caremark
Corporation
Evansville, IN
6.22%
1/15/2033
P&I
N/A
$
2,465
$
2,505
Greensboro, GA
6.52%
1/15/2030
P&I
N/A
Shelby Twp., MI
5.98%
1/15/2031
Walgreen Co.
Dallas, TX
6.46% 12/15/2029
Walgreen Co.
Nacogdoches, TX
6.80%
9/15/2030
P&I
P&I
P&I
N/A
N/A
N/A
899
1,828
2,254
2,501
920
1,841
2,297
2,601
$
9,947
$
10,164
$
—
—
—
—
—
—
___________________________________
(1) During the year ended December 31, 2018, the Company decided to sell its mortgage notes receivable and classified them as held for sale. The valuation
allowance related to the remaining five mortgage notes as of December 31, 2018 was $0.7 million.
Beginning Balance
Deductions during the year:
Early payoff of loan investment
Sale of loan investments
Principal payments received on loan investments
Amortization of unearned discounts and premiums
Valuation allowance
Ending Balance
Years Ended December 31,
2018
2017
2016
$
20,294
$
22,764
$
24,238
—
(8,256)
(897)
15
(992)
(1,502)
—
(904)
(64)
—
—
—
(1,339)
(135)
—
$
10,164
$
20,294
$
22,764
F-195
[THIS PAGE INTENTIONALLY LEFT BLANK]
The following tables show reconciliations to amounts presented in
accordance with GAAP on the balance sheet and income statement
for the periods presented (dollar amounts in thousands):
EXECUTIVE TEAM
Glenn J. Rufrano
(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:605)(cid:70)(cid:72)(cid:85)
Michael J. Bartolotta
(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:9)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:50)(cid:605)(cid:70)(cid:72)(cid:85)
Three Months Ended Dec. 31,
2018
2014
$
27,842
$
(360,427)
Lauren Goldberg
(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:42)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:88)(cid:81)(cid:86)(cid:72)(cid:79)(cid:3)
(cid:9)(cid:3)(cid:54)(cid:72)(cid:70)(cid:85)(cid:72)(cid:87)(cid:68)(cid:85)(cid:92)
(cid:3)
70,832
(cid:20)(cid:24)(cid:22)(cid:15)(cid:19)(cid:24)(cid:19)(cid:3)
(cid:20)(cid:15)(cid:25)(cid:20)(cid:23)(cid:3)
(cid:21)(cid:24)(cid:23)(cid:3)
126,157
(cid:3)(cid:21)(cid:21)(cid:25)(cid:15)(cid:21)(cid:26)(cid:21)
(cid:3)(cid:11)(cid:21)(cid:25)(cid:15)(cid:24)(cid:26)(cid:20)(cid:12)
(cid:22)(cid:15)(cid:23)(cid:19)(cid:21)
Paul H. McDowell
(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:9)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:50)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:50)(cid:605)(cid:70)(cid:72)(cid:85)
Thomas W. Roberts
(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:9)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:918)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)
(cid:50)(cid:605)(cid:70)(cid:72)(cid:85)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
Net income (loss)
(cid:3)
(cid:36)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:29)(cid:3)
Interest expense
(cid:3) (cid:39)(cid:72)(cid:83)(cid:85)(cid:72)(cid:70)(cid:76)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:80)(cid:82)(cid:85)(cid:87)(cid:76)(cid:93)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:85)(cid:72)(cid:68)(cid:79)(cid:3)(cid:72)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)
(cid:3)
(cid:3)
(cid:51)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:11)(cid:69)(cid:72)(cid:81)(cid:72)(cid:564)(cid:87)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:12)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91)(cid:72)(cid:86)(cid:3)
(cid:51)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:88)(cid:81)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)
EBITDA
(cid:11)(cid:42)(cid:68)(cid:76)(cid:81)(cid:12)(cid:3)(cid:79)(cid:82)(cid:86)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:85)(cid:72)(cid:68)(cid:79)(cid:3)(cid:72)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:77)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:89)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:86)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)
(cid:3)
(cid:918)(cid:80)(cid:83)(cid:68)(cid:76)(cid:85)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:85)(cid:72)(cid:68)(cid:79)(cid:3)(cid:72)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)
EBITDAre
Non-real estate impairment
(cid:47)(cid:82)(cid:86)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:72)(cid:71)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)
(cid:51)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:71)(cid:3)(cid:79)(cid:82)(cid:68)(cid:81)(cid:86)(cid:3)
(cid:36)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:16)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)
$
253,592
$
(31,167)
(25,591)
(cid:20)(cid:27)(cid:15)(cid:24)(cid:25)(cid:24)(cid:3)
1,263
(cid:28)(cid:25)(cid:15)(cid:25)(cid:28)(cid:21)
$
246,206
$
66,788
—
(cid:22)(cid:19)(cid:3)
(cid:11)(cid:23)(cid:15)(cid:26)(cid:28)(cid:21)(cid:12)(cid:3)
(cid:20)(cid:15)(cid:20)(cid:22)(cid:25)(cid:3)
(cid:515)(cid:3)
(cid:515)(cid:3)
(cid:11)(cid:26)(cid:27)(cid:12)(cid:3)
(cid:25)(cid:19)(cid:3)
309,444
(cid:515)
(cid:515)
(cid:23)(cid:15)(cid:22)(cid:21)(cid:23)
(cid:21)(cid:23)(cid:15)(cid:22)(cid:22)(cid:22)
—
(cid:20)(cid:26)(cid:21)
1,475
(cid:25)(cid:19)(cid:24)
(cid:23)(cid:23)(cid:27)
(cid:11)(cid:21)(cid:24)(cid:15)(cid:22)(cid:25)(cid:26)(cid:12)
(cid:11)(cid:25)(cid:19)(cid:15)(cid:19)(cid:19)(cid:19)(cid:12)
(cid:20)(cid:22)(cid:15)(cid:20)(cid:19)(cid:28)
(cid:22)(cid:22)(cid:24)
(cid:20)(cid:15)(cid:19)(cid:27)(cid:25)
(cid:47)(cid:76)(cid:87)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:80)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:81)(cid:82)(cid:81)(cid:16)(cid:85)(cid:82)(cid:88)(cid:87)(cid:76)(cid:81)(cid:72)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:86)(cid:88)(cid:85)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:85)(cid:72)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:3)
(cid:21)(cid:22)(cid:15)(cid:24)(cid:23)(cid:20)(cid:3)
Gain on investments
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:47)(cid:82)(cid:86)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:71)(cid:72)(cid:85)(cid:76)(cid:89)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)
(cid:36)(cid:80)(cid:82)(cid:85)(cid:87)(cid:76)(cid:93)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:69)(cid:82)(cid:89)(cid:72)(cid:16)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:86)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:82)(cid:73)
(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:68)(cid:80)(cid:82)(cid:85)(cid:87)(cid:76)(cid:93)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:16)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)
(cid:11)(cid:42)(cid:68)(cid:76)(cid:81)(cid:12)(cid:3)(cid:79)(cid:82)(cid:86)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:72)(cid:91)(cid:87)(cid:76)(cid:81)(cid:74)(cid:88)(cid:76)(cid:86)(cid:75)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:74)(cid:76)(cid:89)(cid:72)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:72)(cid:69)(cid:87)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)
(cid:3) (cid:49)(cid:72)(cid:87)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)
(1,790)
(cid:28)(cid:21)(cid:3)
945
(cid:11)(cid:21)(cid:20)(cid:12)(cid:3)
(cid:23)(cid:28)(cid:27)(cid:3)
(cid:54)(cid:87)(cid:85)(cid:68)(cid:76)(cid:74)(cid:75)(cid:87)(cid:16)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:85)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)(cid:68)(cid:71)(cid:3)(cid:71)(cid:72)(cid:69)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:87)(cid:85)(cid:68)(cid:76)(cid:74)(cid:75)(cid:87)(cid:16)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3)
(cid:11)(cid:27)(cid:15)(cid:22)(cid:23)(cid:20)(cid:12)(cid:3)
(cid:47)(cid:72)(cid:74)(cid:68)(cid:79)(cid:3)(cid:86)(cid:72)(cid:87)(cid:87)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)
(cid:51)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:90)(cid:85)(cid:76)(cid:87)(cid:72)(cid:16)(cid:82)(cid:909)(cid:3)
(cid:3) (cid:50)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)
(cid:3)
(cid:51)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:88)(cid:81)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:3)
NORMALIZED EBITDA
$
257,486
$
336,752
(cid:48)(cid:82)(cid:85)(cid:87)(cid:74)(cid:68)(cid:74)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:83)(cid:68)(cid:92)(cid:68)(cid:69)(cid:79)(cid:72)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)
Corporate bonds, net
Convertible debt, net
(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)
Total debt - as reported
(cid:36)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:29)
(cid:39)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)
(cid:49)(cid:72)(cid:87)(cid:3)(cid:83)(cid:85)(cid:72)(cid:80)(cid:76)(cid:88)(cid:80)(cid:86)(cid:3)
(cid:3)
(cid:36)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:51)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:68)(cid:79)(cid:3)(cid:50)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)
(cid:36)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:51)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:68)(cid:79)(cid:3)(cid:50)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)
(cid:47)(cid:72)(cid:86)(cid:86)(cid:29)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:89)(cid:68)(cid:79)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)
Net Debt
(cid:49)(cid:82)(cid:85)(cid:80)(cid:68)(cid:79)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:40)(cid:37)(cid:918)(cid:55)(cid:39)(cid:36)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)
NET DEBT TO NORMALIZED EBITDA annualized ratio
Dec. 31, 2018 Dec. 31, 2014
(cid:7)(cid:3) (cid:20)(cid:15)(cid:28)(cid:21)(cid:21)(cid:15)(cid:25)(cid:24)(cid:26)(cid:3)
(cid:7)(cid:3) (cid:22)(cid:15)(cid:26)(cid:26)(cid:22)(cid:15)(cid:28)(cid:21)(cid:21)
3,368,609
2,531,081
394,883
(cid:23)(cid:19)(cid:20)(cid:15)(cid:26)(cid:26)(cid:22)(cid:3)
952,856
(cid:22)(cid:15)(cid:20)(cid:25)(cid:26)(cid:15)(cid:28)(cid:20)(cid:28)
6,087,922
10,425,778
(cid:23)(cid:21)(cid:15)(cid:26)(cid:25)(cid:22)(cid:3)
(cid:11)(cid:27)(cid:15)(cid:19)(cid:24)(cid:22)(cid:12)(cid:3)
(cid:27)(cid:27)(cid:15)(cid:19)(cid:19)(cid:22)
(cid:11)(cid:23)(cid:23)(cid:15)(cid:25)(cid:25)(cid:19)(cid:12)
(cid:7)(cid:3)
$
$
$
(cid:25)(cid:15)(cid:20)(cid:21)(cid:21)(cid:15)(cid:25)(cid:22)(cid:21)(cid:3)
(cid:7)(cid:3) (cid:20)(cid:19)(cid:15)(cid:23)(cid:25)(cid:28)(cid:15)(cid:20)(cid:21)(cid:20)
6,122,632
$ 10,469,121
(cid:22)(cid:19)(cid:15)(cid:26)(cid:24)(cid:27)(cid:3)
(cid:23)(cid:20)(cid:25)(cid:15)(cid:26)(cid:20)(cid:20)
6,091,874
$ 10,052,410
1,029,944
$ 1,347,008
5.91x
7.46x
BOARD OF DIRECTORS
Hugh R. Frater
(cid:49)(cid:82)(cid:81)(cid:16)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:38)(cid:75)(cid:68)(cid:76)(cid:85)(cid:80)(cid:68)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:57)(cid:40)(cid:53)(cid:40)(cid:918)(cid:55)(cid:15)(cid:3)(cid:918)(cid:81)(cid:70)(cid:17)(cid:15)(cid:3)(cid:918)(cid:81)(cid:87)(cid:72)(cid:85)(cid:76)(cid:80)(cid:3)
(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:605)(cid:70)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:41)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:49)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)
(cid:48)(cid:82)(cid:85)(cid:87)(cid:74)(cid:68)(cid:74)(cid:72)(cid:3)(cid:36)(cid:86)(cid:86)(cid:82)(cid:70)(cid:76)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:41)(cid:68)(cid:81)(cid:81)(cid:76)(cid:72)(cid:3)(cid:48)(cid:68)(cid:72)(cid:12)
David B. Henry
(cid:41)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:38)(cid:75)(cid:68)(cid:76)(cid:85)(cid:80)(cid:68)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:40)(cid:50)(cid:15)(cid:3)(cid:46)(cid:76)(cid:80)(cid:70)(cid:82)(cid:3)(cid:53)(cid:72)(cid:68)(cid:79)(cid:87)(cid:92)(cid:3)
(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)
Mary Hogan Preusse
(cid:41)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:82)(cid:16)(cid:43)(cid:72)(cid:68)(cid:71)(cid:3)
(cid:82)(cid:73)(cid:3)(cid:36)(cid:80)(cid:72)(cid:85)(cid:76)(cid:70)(cid:68)(cid:86)(cid:3)(cid:53)(cid:72)(cid:68)(cid:79)(cid:3)(cid:40)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:36)(cid:51)(cid:42)(cid:3)(cid:36)(cid:86)(cid:86)(cid:72)(cid:87)(cid:3)
(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:56)(cid:54)(cid:3)
Richard J. Lieb
(cid:54)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:36)(cid:71)(cid:89)(cid:76)(cid:86)(cid:82)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:38)(cid:75)(cid:68)(cid:76)(cid:85)(cid:80)(cid:68)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:53)(cid:72)(cid:68)(cid:79)(cid:3)(cid:40)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:42)(cid:85)(cid:72)(cid:72)(cid:81)(cid:75)(cid:76)(cid:79)(cid:79)(cid:3)(cid:9)(cid:3)(cid:38)(cid:82)(cid:17)(cid:15)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)
Mark S. Ordan
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Eugene A. Pinover
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Julie G. Richardson
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Glenn J. Rufrano
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INVESTOR RELATIONS
InvestorRelations@VEREIT.com
877.405.2653
HEADQUARTERS
2325 East Camelback Road
9th Floor, Phoenix, Arizona 85016
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companies.
w w w . V E R E I T . c o m