VEREIT® Announces November Rent Collection of 97% and Provides Transaction Activity Update

Rhea-AI Summary

VEREIT (NYSE: VER) announced its November 2020 rent collection at approximately 97%, consistent with October's figures. The Company invested $811 million year-to-date, including $280 million in institutional partnerships and $300 million toward redeeming preferred stock. VEREIT's Q4 2020 to Q1 2021 acquisition pipeline targets $150 million to $300 million. The firm aims to reduce office properties from 17% to below 15% of rental income, with $430 million in total expected dispositions. The issuance of $1.2 billion in senior notes provides low-cost capital without bond maturities until 2024.

Positive

• Achieved 97% rent collection for November, maintaining October's performance.
• Invested $811 million year-to-date, enhancing portfolio growth.
• On track for Q4 2020 to Q1 2021 acquisitions of $150 million to $300 million.
• Reduced office properties from 17% to expected 15% of rental income with $430 million in total dispositions.
• Issued $1.2 billion in senior notes, ensuring low cost of capital until 2024.

Negative

• None.

PHOENIX, Dec. 2, 2020 /PRNewswire/ -- VEREIT, Inc. (NYSE: VER) ("VEREIT" or the "Company"), 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., announced its November rent collection and updated transaction activity.

Rent Collection Update as of November 30, 2020
VEREIT had received rent of approximately 97% for November, which includes approximately 1% to be paid in arrears by a Government agency tenant and is in line with October rent collection of 97%.

Transaction Activity Update as of November 30, 2020

• Invested $811 million of capital year-to-date, including $280 million acquired for the institutional partnerships and $300 million allocated to the redemption of 6.7% preferred stock.
• On target for the high end of Q4 2020 to Q1 2021 acquisition pipeline of $150 million to $300 million with $75 million completed quarter-to-date at a cap rate in excess of 7%.
• As part of the Company's planned disposition program to reduce office from the current 17% of annualized rental income to below 15%, we have sold approximately $53 million quarter-to-date and have an additional $100 million under contract with the total approximate cap rate averaging 6%. Once completed, this will bring total office dispositions for the year to approximately $430 million.
• Issued $1.2 billion aggregate principal amount of senior notes with a 2.7% weighted average interest rate and weighted average duration of 10 years providing a low cost of debt capital and leaving no uncovered bond maturities until 2024. Proceeds from the offering have been used primarily to repay the $900.0 million credit facility term loan.

About VEREIT
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 has total real estate investments of $14.6 billion including approximately 3,800 properties and 88.9 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties.  VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange.  VEREIT uses, and intends to continue to use, its Investor Relations website, which can be found at www.VEREIT.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.  Additional information about VEREIT can be found through social media platforms such as Twitter and LinkedIn.

About the Data

Rent collection percentages disclosed are based on contractual rent and recoveries paid by tenants to cover estimated tax, insurance and common area maintenance expenses, including the Company's pro rata share of such amounts related to properties owned by unconsolidated joint ventures.  Percentages are calculated using a denominator that reflects pre-COVID-19 rents that has not been adjusted for any rent relief granted.  Amounts exclude any tenants in bankruptcy prior to the pandemic.

Forward-Looking Statements

Information set forth in this press release contains forward-looking statements which reflect VEREIT's expectations and projections regarding future results, events and plans, including but not limited to statements regarding acquisitions, dispositions and pipeline projects. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which are difficult to predict and beyond VEREIT's control, that could cause actual events and plans or could cause VEREIT's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. Further, information regarding historical rent collections should not serve as an indication of future rent collections. These factors include the risks and uncertainties detailed from time to time in VEREIT's filings with the U.S. Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. VEREIT disclaims any obligation to publicly update or revise any forward-looking statements contained in this press release whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.

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SOURCE VEREIT, Inc.

FAQ

What was VEREIT's rent collection rate for November 2020?

VEREIT reported a rent collection rate of approximately 97% for November 2020.

How much capital has VEREIT invested year-to-date?

As of November 30, 2020, VEREIT has invested $811 million year-to-date.

What are VEREIT's plans for acquisitions in Q4 2020 and Q1 2021?

VEREIT is targeting acquisitions between $150 million and $300 million during this period.

What is VEREIT's strategy regarding office properties?

VEREIT plans to reduce office properties from 17% to below 15% of its annualized rental income.

How much in senior notes did VEREIT issue recently?

VEREIT issued $1.2 billion in senior notes with a 2.7% weighted average interest rate.