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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Spirit MTA REIT | NYSE:SMTA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.7676 | 0 | 01:00:00 |
|
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Maryland
|
|
|
|
82-6712510
|
(State or other Jurisdiction of Incorporation)
|
|
|
|
(IRS Employer Identification No.)
|
|
|
|
|
|
2727 North Harwood Street, Suite 300
Dallas, Texas 75201
|
|
|
|
(972) 476-1409
|
(Address of principal executive offices)
|
|
|
|
(Registrant’s telephone number, including area code)
|
Yes
x
No
o
|
Yes
x
No
o
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filer
x
|
Smaller reporting company
o
|
Emerging growth company
x
|
|
Glossary
|
|
|
|
Item 1. Spirit MTA REIT Financial Statements (Unaudited)
|
|
|
|
AFFO
|
Adjusted Funds From Operations. See definition in Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Annualized Contractual Rent
|
Contractual Rent multiplied by twelve
|
ASC
|
Accounting Standards Codification
|
Asset Management Agreement
|
Asset Management Agreement between Spirit Realty, L.P. and Spirit MTA REIT dated May 31, 2018
|
ASU
|
Accounting Standards Update
|
CMBS
|
Commercial mortgage-backed securities
|
Contractual Rent
|
Monthly contractual cash rent, excluding percentage rents, from properties owned fee-simple or ground leased, recognized during the final month of the reporting period, adjusted to exclude amounts received from properties sold during that period and adjusted to include a full month of contractual rent for properties acquired during that period
|
CPI
|
Consumer Price Index
|
EBITDA
re
|
EBITDA
re
is a non-GAAP financial measure and is computed in accordance with standards established by NAREIT. EBITDA
re
is defined as net income (loss) (computed in accordance with GAAP), plus interest expense, plus income tax expense (if any), plus depreciation and amortization, plus (minus) losses and gains on the disposition of depreciated property, plus impairment write-downs of depreciated property and investments in unconsolidated real estate ventures, plus adjustments to reflect the Company's share of EBITDA
re
of unconsolidated real estate ventures.
|
FASB
|
Financial Accounting Standards Board
|
FFO
|
Funds From Operations. See definition in Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
GAAP
|
Generally Accepted Accounting Principles in the United States
|
Liquidity Reserve
|
Cash held on deposit until there is a cashflow shortfall as defined in the Master Trust 2014 agreements or a liquidation of Master Trust 2014 occurs
|
Manager
|
Spirit Realty, L.P., a wholly-owned subsidiary of Spirit
|
Master Trust 2014
|
The asset-backed securitization trust established in 2005, and amended and restated in 2014, which issues non-recourse net-lease mortgage notes collateralized by commercial real estate, net-leases and mortgage loans from time to time
|
NAREIT
|
National Association of Real Estate Investment Trusts
|
Occupancy
|
The number of economically yielding owned properties divided by total owned properties
|
Other Properties
|
One of two reportable segments consisting of all properties not included in Master Trust 2014
|
Properties
|
Owned properties and mortgage loans receivable secured by properties
|
Property Management and Servicing Agreement
|
Second amended and restated agreement governing the management services and special services provided to Master Trust 2014 by Spirit Realty, L.P., dated as of May 20, 2014, as amended, supplemented, amended and restated or otherwise modified
|
Real Estate Investment Value
|
The gross acquisition cost, including capitalized transaction costs, plus improvements and less impairments, if any
|
Release Account
|
Proceeds from the sale of assets securing Master Trust 2014 held in a restricted account until a qualifying substitution is made or the funds are applied as prepayment of principal
|
S&P
|
Standard & Poor’s Rating Services
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Real estate investments:
|
|
|
|
||||
Land and improvements
|
$
|
955,446
|
|
|
$
|
973,231
|
|
Buildings and improvements
|
1,665,483
|
|
|
1,658,023
|
|
||
Total real estate investments
|
2,620,929
|
|
|
2,631,254
|
|
||
Less: accumulated depreciation
|
(574,519
|
)
|
|
(557,948
|
)
|
||
|
2,046,410
|
|
|
2,073,306
|
|
||
Loans receivable, net
|
67,752
|
|
|
32,307
|
|
||
Intangible lease assets, net
|
93,756
|
|
|
102,262
|
|
||
Real estate assets held for sale, net
|
36,060
|
|
|
28,460
|
|
||
Net investments
|
2,243,978
|
|
|
2,236,335
|
|
||
Cash and cash equivalents
|
37,356
|
|
|
6
|
|
||
Deferred costs and other assets, net
|
105,901
|
|
|
107,770
|
|
||
Goodwill
|
13,549
|
|
|
13,549
|
|
||
Total assets
|
$
|
2,400,784
|
|
|
$
|
2,357,660
|
|
Liabilities and equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Mortgages and notes payable, net
|
$
|
1,999,748
|
|
|
$
|
1,926,835
|
|
Intangible lease liabilities, net
|
22,850
|
|
|
23,847
|
|
||
Accounts payable, accrued expenses and other liabilities
|
20,861
|
|
|
16,060
|
|
||
Total liabilities
|
2,043,459
|
|
|
1,966,742
|
|
||
Commitments and contingencies (see Note 7)
|
|
|
|
|
|
||
Redeemable preferred equity:
|
|
|
|
|
|
||
SMTA Preferred Stock, $0.01 par value, $25 per share liquidation preference, 20,000,000 shares authorized: 6,000,000 and 0 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
|
150,000
|
|
|
—
|
|
||
SubREIT Preferred Stock, $0.01 par value, $1,000 per share liquidation preference, 50,000,000 shares authorized: 5,000 and 0 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
|
5,000
|
|
|
—
|
|
||
Total redeemable preferred equity
|
155,000
|
|
|
—
|
|
||
Stockholders' equity and parent company equity:
|
|
|
|
||||
Net parent investment
|
—
|
|
|
390,918
|
|
||
Common stock, $0.01 par value, 750,000,000 shares authorized; 42,851,010 and 10,000 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
|
429
|
|
|
—
|
|
||
Capital in excess of common stock par value
|
199,998
|
|
|
—
|
|
||
Accumulated earnings
|
1,898
|
|
|
—
|
|
||
Total stockholders' equity and parent company equity
|
202,325
|
|
|
390,918
|
|
||
Total liabilities and equity
|
$
|
2,400,784
|
|
|
$
|
2,357,660
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Rentals
|
$
|
59,240
|
|
|
$
|
56,003
|
|
|
$
|
118,271
|
|
|
$
|
112,388
|
|
Interest income on loans receivable
|
752
|
|
|
202
|
|
|
833
|
|
|
405
|
|
||||
Tenant reimbursement income
|
404
|
|
|
372
|
|
|
981
|
|
|
1,150
|
|
||||
Other income
|
562
|
|
|
668
|
|
|
941
|
|
|
1,150
|
|
||||
Total revenues
|
60,958
|
|
|
57,245
|
|
|
121,026
|
|
|
115,093
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
|
||||||
General and administrative
|
3,775
|
|
|
8,462
|
|
|
9,426
|
|
|
13,731
|
|
||||
Related party fees
|
3,351
|
|
|
1,385
|
|
|
5,081
|
|
|
2,739
|
|
||||
Transaction costs
|
5,525
|
|
|
367
|
|
|
8,542
|
|
|
367
|
|
||||
Property costs (including reimbursable)
|
2,047
|
|
|
1,565
|
|
|
3,460
|
|
|
4,021
|
|
||||
Interest
|
27,743
|
|
|
18,775
|
|
|
55,755
|
|
|
37,591
|
|
||||
Depreciation and amortization
|
21,109
|
|
|
20,275
|
|
|
42,102
|
|
|
40,885
|
|
||||
Impairments
|
1,247
|
|
|
5,419
|
|
|
6,072
|
|
|
11,912
|
|
||||
Total expenses
|
64,797
|
|
|
56,248
|
|
|
130,438
|
|
|
111,246
|
|
||||
(Loss) income before other income and income tax expense
|
(3,839
|
)
|
|
997
|
|
|
(9,412
|
)
|
|
3,847
|
|
||||
Other income:
|
|
|
|
|
|
|
|
|
|
||||||
(Loss) gain on debt extinguishment
|
(108
|
)
|
|
1
|
|
|
(363
|
)
|
|
1
|
|
||||
Gain on disposition of real estate assets
|
4,948
|
|
|
8,389
|
|
|
3,254
|
|
|
19,578
|
|
||||
Total other income
|
4,840
|
|
|
8,390
|
|
|
2,891
|
|
|
19,579
|
|
||||
Income (loss) before income tax expense
|
1,001
|
|
|
9,387
|
|
|
(6,521
|
)
|
|
23,426
|
|
||||
Income tax expense
|
(22
|
)
|
|
(45
|
)
|
|
(79
|
)
|
|
(90
|
)
|
||||
Net income (loss) and total comprehensive income (loss)
|
$
|
979
|
|
|
$
|
9,342
|
|
|
$
|
(6,600
|
)
|
|
$
|
23,336
|
|
Preferred dividends
|
(1,325
|
)
|
|
—
|
|
|
(1,325
|
)
|
|
—
|
|
||||
Net (loss) income attributable to common stockholders
|
$
|
(346
|
)
|
|
$
|
9,342
|
|
|
$
|
(7,925
|
)
|
|
$
|
23,336
|
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share attributable to common stockholders
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.01
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.54
|
|
Diluted
|
$
|
(0.01
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
||||
Diluted
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share issued
|
$
|
—
|
|
|
N/A
|
|
$
|
—
|
|
|
N/A
|
|
Redeemable Preferred Equity
|
|
Stockholders' Equity and Parent Company Equity
|
|||||||||||||||||||||||||||||||||||||
|
SMTA Preferred Stock
|
|
SubREIT Preferred Stock
|
|
|
|
Common Stock
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Shares
|
|
Par Value and Capital in Excess of Par Value
|
|
Shares
|
|
Par Value and Capital in Excess of Par Value
|
|
Total Redeemable Preferred Equity
|
|
Shares
|
|
Par
Value |
|
Capital in
Excess of Par Value |
|
Accumulated
Earnings |
|
Net Parent Investment
|
|
Total Stockholders' Equity and Parent Company Equity
|
|||||||||||||||||||
Balances,
December 31, 2017 |
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
390,918
|
|
|
$
|
390,918
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,223
|
|
|
(9,823
|
)
|
|
(6,600
|
)
|
||||||||
Contributions from parent company
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174,515
|
|
|
174,515
|
|
||||||||
Distributions to parent company
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(200,183
|
)
|
|
(200,183
|
)
|
||||||||
Issuance of shares of common stock, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,851,010
|
|
|
429
|
|
|
199,998
|
|
|
—
|
|
|
(200,427
|
)
|
|
—
|
|
||||||||
Issuance of shares of preferred stock, net
|
6,000,000
|
|
|
150,000
|
|
|
5,000
|
|
|
5,000
|
|
|
155,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(155,000
|
)
|
|
(155,000
|
)
|
||||||||
Dividends declared on preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,325
|
)
|
|
—
|
|
|
(1,325
|
)
|
||||||||
Balances,
June 30, 2018 |
6,000,000
|
|
|
$
|
150,000
|
|
|
5,000
|
|
|
$
|
5,000
|
|
|
$
|
155,000
|
|
|
42,851,010
|
|
|
$
|
429
|
|
|
$
|
199,998
|
|
|
$
|
1,898
|
|
|
$
|
—
|
|
|
$
|
202,325
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Operating activities
|
|
|
|
|
|
||
Net (loss) income
|
$
|
(6,600
|
)
|
|
$
|
23,336
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
42,102
|
|
|
40,885
|
|
||
Impairments
|
6,072
|
|
|
11,912
|
|
||
Amortization of deferred financing costs
|
1,727
|
|
|
653
|
|
||
Amortization of debt discounts
|
3,634
|
|
|
2,130
|
|
||
Stock based compensation expense
|
2,424
|
|
|
4,235
|
|
||
Loss (gain) on debt extinguishment, net
|
363
|
|
|
(1
|
)
|
||
Gain on disposition of real estate assets
|
(3,254
|
)
|
|
(19,578
|
)
|
||
Non-cash revenue
|
(1,437
|
)
|
|
(1,906
|
)
|
||
Bad debt expense and other
|
175
|
|
|
1,504
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Deferred costs and other assets, net
|
(2,539
|
)
|
|
1,327
|
|
||
Accounts payable, accrued expenses and other liabilities
|
4,137
|
|
|
1,655
|
|
||
Net cash provided by operating activities
|
46,804
|
|
|
66,152
|
|
||
Investing activities
|
|
|
|
|
|
||
Acquisitions of real estate
|
(15,328
|
)
|
|
(26,058
|
)
|
||
Capitalized real estate expenditures
|
(1,937
|
)
|
|
(892
|
)
|
||
Collections of principal on loans receivable
|
3,003
|
|
|
1,705
|
|
||
Proceeds from dispositions of real estate and other assets
|
39,118
|
|
|
84,935
|
|
||
Net cash provided by investing activities
|
24,856
|
|
|
59,690
|
|
||
Financing activities
|
|
|
|
|
|
||
Borrowings under mortgages and notes payable
|
92,216
|
|
|
—
|
|
||
Repayments under mortgages and notes payable
|
(23,248
|
)
|
|
(7,913
|
)
|
||
Debt extinguishment costs
|
(363
|
)
|
|
—
|
|
||
Deferred financing costs
|
(1,415
|
)
|
|
—
|
|
||
Preferred stock dividends paid
|
(1,325
|
)
|
|
—
|
|
||
Contributions from parent company
|
91,662
|
|
|
59,117
|
|
||
Distributions to parent company
|
(198,038
|
)
|
|
(165,864
|
)
|
||
Net cash used in financing activities
|
(40,511
|
)
|
|
(114,660
|
)
|
||
Net increase in cash, cash equivalents and restricted cash
|
31,149
|
|
|
11,182
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
66,510
|
|
|
12,688
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
97,659
|
|
|
$
|
23,870
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
|
|
|
|
||||
Investment contribution from parent
|
$
|
80,429
|
|
|
$
|
—
|
|
Investment distribution to parent
|
2,144
|
|
|
1,183
|
|
||
Financing provided in connection with the disposition of assets
|
2,888
|
|
|
—
|
|
||
Preferred equity issuance
|
155,000
|
|
|
—
|
|
||
Supplemental Cash Flow Disclosures:
|
|
|
|
|
|
||
Interest paid
|
$
|
49,069
|
|
|
$
|
34,842
|
|
Taxes paid
|
$
|
202
|
|
|
$
|
231
|
|
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2017
|
||||||
Cash and cash equivalents
|
$
|
37,356
|
|
|
$
|
6
|
|
|
$
|
6
|
|
Restricted cash:
|
|
|
|
|
|
||||||
Release Account
(1)
|
51,826
|
|
|
61,001
|
|
|
23,864
|
|
|||
Liquidity Reserve
(2)
|
5,544
|
|
|
5,503
|
|
|
—
|
|
|||
Other
(3)
|
2,933
|
|
|
—
|
|
|
—
|
|
|||
Total cash, cash equivalents and restricted cash
|
$
|
97,659
|
|
|
$
|
66,510
|
|
|
$
|
23,870
|
|
(2)
|
Liquidity Reserve cash was placed on deposit in conjunction with the issuance of additional series of notes under Master Trust 2014 and is held until there is a cashflow shortfall, as defined in the Master Trust 2014 agreements, or a liquidation of Master Trust 2014 occurs.
|
(3)
|
Funds held in lender controlled accounts released after scheduled debt service requirements are met on the CMBS debt.
|
|
Number of Properties
|
|
Dollar Amount of Investments
|
|||||||||||||||||
|
Owned
|
|
Financed
|
|
Total
|
|
Owned
|
|
Financed
|
|
Total
|
|||||||||
|
|
|
|
|
|
|
(In Thousands)
|
|||||||||||||
Gross balance, December 31, 2017
|
907
|
|
|
11
|
|
|
918
|
|
|
$
|
2,838,285
|
|
|
$
|
32,307
|
|
|
$
|
2,870,592
|
|
Acquisitions/improvements
(1)
|
14
|
|
|
2
|
|
|
16
|
|
|
71,501
|
|
|
37,888
|
|
|
109,389
|
|
|||
Dispositions of real estate
(2)(3)
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|
(54,194
|
)
|
|
—
|
|
|
(54,194
|
)
|
|||
Principal payments and payoffs
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
(3,293
|
)
|
|
(3,293
|
)
|
|||
Impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,072
|
)
|
|
—
|
|
|
(6,072
|
)
|
|||
Write-off of gross lease intangibles
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,139
|
)
|
|
—
|
|
|
(18,139
|
)
|
|||
Loan premium amortization and other
|
—
|
|
|
—
|
|
|
—
|
|
|
(268
|
)
|
|
850
|
|
|
582
|
|
|||
Gross balance, June 30, 2018
|
888
|
|
|
8
|
|
|
896
|
|
|
$
|
2,831,113
|
|
|
$
|
67,752
|
|
|
$
|
2,898,865
|
|
Accumulated depreciation and amortization
|
|
|
|
|
|
|
|
|
|
(678,444
|
)
|
|
—
|
|
|
(678,444
|
)
|
|||
Other non-real estate assets held for sale
|
|
|
|
|
|
|
|
|
|
707
|
|
|
—
|
|
|
707
|
|
|||
Net balance, June 30, 2018
|
|
|
|
|
|
|
|
|
|
$
|
2,153,376
|
|
|
$
|
67,752
|
|
|
$
|
2,221,128
|
|
|
June 30, 2018
|
||
2018 Remainder
|
$
|
116,735
|
|
2019
|
228,464
|
|
|
2020
|
218,310
|
|
|
2021
|
211,126
|
|
|
2022
|
198,173
|
|
|
Thereafter
|
1,460,857
|
|
|
Total future minimum rentals
|
$
|
2,433,665
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Mortgage loans-principal
|
$
|
32,256
|
|
|
$
|
32,665
|
|
Mortgage loans-premium, net of amortization
|
—
|
|
|
31
|
|
||
Allowance for loan losses
|
—
|
|
|
(389
|
)
|
||
Mortgage loans, net
|
32,256
|
|
|
32,307
|
|
||
Other notes receivable - principal
|
35,496
|
|
|
—
|
|
||
Total loans receivable, net
|
$
|
67,752
|
|
|
$
|
32,307
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
In-place leases
|
$
|
171,786
|
|
|
$
|
191,557
|
|
Above-market leases
|
23,258
|
|
|
24,691
|
|
||
Less: accumulated amortization
|
(101,288
|
)
|
|
(113,986
|
)
|
||
Intangible lease assets, net
|
$
|
93,756
|
|
|
$
|
102,262
|
|
|
|
|
|
||||
Below-market leases
|
$
|
38,058
|
|
|
$
|
39,274
|
|
Less: accumulated amortization
|
(15,208
|
)
|
|
(15,427
|
)
|
||
Intangible lease liabilities, net
|
$
|
22,850
|
|
|
$
|
23,847
|
|
|
Number of
Properties |
|
Carrying
Value |
|||
Balances, December 31, 2017
|
7
|
|
|
$
|
28,460
|
|
Transfers from real estate investments
|
10
|
|
|
35,582
|
|
|
Sales
|
(2
|
)
|
|
(2,206
|
)
|
|
Transfers to real estate investments held and used
|
(5
|
)
|
|
(24,880
|
)
|
|
Impairments
|
—
|
|
|
(896
|
)
|
|
Balances, June 30, 2018
|
10
|
|
|
$
|
36,060
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Real estate and intangible asset impairment
|
$
|
1,312
|
|
|
$
|
5,364
|
|
|
$
|
6,130
|
|
|
$
|
12,326
|
|
Write-off of lease intangibles, net
|
(65
|
)
|
|
55
|
|
|
(42
|
)
|
|
(414
|
)
|
||||
Recovery of loans receivable, previously reserved
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
||||
Total impairment loss
|
$
|
1,247
|
|
|
$
|
5,419
|
|
|
$
|
6,072
|
|
|
$
|
11,912
|
|
|
Stated
Rates (1) |
|
Maturity
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
|
|
(in Years)
|
(in Thousands)
|
|||||||
Series 2014-1 Class A2
|
5.4%
|
|
2.1
|
|
$
|
246,318
|
|
|
$
|
252,437
|
|
Series 2014-2
|
5.8%
|
|
2.7
|
|
231,550
|
|
|
234,329
|
|
||
Series 2014-3
|
5.7%
|
|
3.7
|
|
310,014
|
|
|
311,336
|
|
||
Series 2014-4 Class A1
|
3.5%
|
|
1.6
|
|
149,484
|
|
|
150,000
|
|
||
Series 2014-4 Class A2
|
4.6%
|
|
11.6
|
|
349,328
|
|
|
358,664
|
|
||
Series 2017-1 Class A
|
4.4%
|
|
4.5
|
|
539,620
|
|
|
542,400
|
|
||
Series 2017-1 Class B
|
5.5%
|
|
4.5
|
|
132,000
|
|
|
132,000
|
|
||
Total Master Trust 2014 notes
|
4.9%
|
|
4.9
|
|
1,958,314
|
|
|
1,981,166
|
|
||
Debt discount, net
|
|
|
|
(24,491
|
)
|
(36,342
|
)
|
||||
Deferred financing costs, net
|
|
|
|
(16,579
|
)
|
(17,989
|
)
|
||||
Total Master Trust 2014, net
|
|
|
|
|
$
|
1,917,244
|
|
|
$
|
1,926,835
|
|
|
Scheduled
Principal |
|
Balloon
Payment |
|
Total
|
||||||
2018 Remainder
|
$
|
17,587
|
|
|
$
|
—
|
|
|
$
|
17,587
|
|
2019
|
36,403
|
|
|
—
|
|
|
36,403
|
|
|||
2020
|
40,743
|
|
|
364,645
|
|
|
405,388
|
|
|||
2021
|
23,620
|
|
|
219,964
|
|
|
243,584
|
|
|||
2022
|
23,227
|
|
|
971,453
|
|
|
994,680
|
|
|||
Thereafter
|
182,612
|
|
|
161,664
|
|
|
344,276
|
|
|||
Total
|
$
|
324,192
|
|
|
$
|
1,717,726
|
|
|
$
|
2,041,918
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest expense
|
$
|
25,257
|
|
|
$
|
17,378
|
|
|
$
|
50,394
|
|
|
$
|
34,808
|
|
Non-cash interest expense:
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of deferred financing costs
|
852
|
|
|
328
|
|
|
1,727
|
|
|
653
|
|
||||
Amortization of debt discount, net
|
1,634
|
|
|
1,069
|
|
|
3,634
|
|
|
2,130
|
|
||||
Total interest expense
|
$
|
27,743
|
|
|
$
|
18,775
|
|
|
$
|
55,755
|
|
|
$
|
37,591
|
|
|
Declaration Date
|
|
Dividend Per Share
(1)
|
|
Record Date
|
|
Total Amount
(in thousands) |
|
Payment Date
|
||||
Preferred Stock
|
|
|
|
|
|
|
|
|
|
||||
SMTA Preferred Stock
|
June 19, 2018
|
|
$
|
0.2083
|
|
|
June 19, 2018
|
|
$
|
1,250
|
|
|
June 29, 2018
|
SubREIT Preferred Stock
|
June 14, 2018
|
|
$
|
15.0000
|
|
|
June 19, 2018
|
|
$
|
75
|
|
|
June 29, 2018
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Allocated corporate expenses:
|
|
|
|
|
|
|
|
||||||||
Cash compensation and benefits
|
$
|
1,302
|
|
|
$
|
2,750
|
|
|
$
|
3,965
|
|
|
$
|
4,678
|
|
Stock compensation
|
818
|
|
|
3,404
|
|
|
2,424
|
|
|
4,235
|
|
||||
Professional fees
|
411
|
|
|
972
|
|
|
1,013
|
|
|
1,878
|
|
||||
Other corporate expenses
|
418
|
|
|
664
|
|
|
1,068
|
|
|
1,230
|
|
||||
Total corporate expenses
|
2,949
|
|
|
7,790
|
|
|
8,470
|
|
|
12,021
|
|
||||
Transaction costs
|
3,424
|
|
|
69
|
|
|
3,957
|
|
|
69
|
|
||||
Total allocated costs
|
$
|
6,373
|
|
|
$
|
7,859
|
|
|
$
|
12,427
|
|
|
$
|
12,090
|
|
|
|
|
Fair Value Hierarchy Level
|
||||||||||||
Description
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
June 30, 2018
|
|
|
|
|
|
|
|
||||||||
Long-lived assets held and used
|
$
|
9,499
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,499
|
|
Long-lived assets held for sale
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-lived assets held and used
|
$
|
11,077
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,077
|
|
Long-lived assets held for sale
|
$
|
30,956
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,956
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||
|
Range
|
|
Weighted
Average |
|
Square
Footage |
|
Range
|
|
Weighted
Average |
|
Square
Footage |
||||||||
Long-lived assets held and used by asset type
|
|||||||||||||||||||
Retail
|
$
|
109.79
|
|
|
$
|
109.79
|
|
|
77,423
|
|
$
|
88.89
|
|
|
$
|
88.89
|
|
|
22,500
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Carrying
Value |
|
Estimated
Fair Value |
|
Carrying
Value |
|
Estimated
Fair Value |
||||||||
Loans receivable, net
|
$
|
67,752
|
|
|
$
|
68,522
|
|
|
$
|
32,307
|
|
|
$
|
29,076
|
|
Mortgages and notes payable, net
(1)
|
$
|
1,999,748
|
|
|
$
|
2,064,421
|
|
|
$
|
1,926,835
|
|
|
$
|
2,030,191
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Basic and diluted (loss)
income
:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) and total comprehensive income (loss)
|
$
|
979
|
|
|
$
|
9,342
|
|
|
$
|
(6,600
|
)
|
|
$
|
23,336
|
|
Less: dividends paid to preferred stockholders
|
(1,325
|
)
|
|
—
|
|
|
(1,325
|
)
|
|
—
|
|
||||
Net (loss)
income
attributable to common stockholders used in basic and diluted (loss) income per share
|
$
|
(346
|
)
|
|
$
|
9,342
|
|
|
$
|
(7,925
|
)
|
|
$
|
23,336
|
|
|
|
|
|
|
|
|
|
|
|||||||
Basic weighted average shares of common stock outstanding
(1)
:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding used in basic (loss)
income
per share
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
||||
Net (loss) income per share attributable to common stockholders
|
$
|
(0.01
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
||||||||
Dilutive weighted average shares of common stock
(1)
:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding used in diluted (loss)
income
per share
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
||||
Net (loss) income per share attributable to common stockholders - diluted
|
$
|
(0.01
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
||||||||
Total potentially dilutive shares
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Three Months Ended June 30, 2018
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||
|
|
Master Trust 2014
|
|
Other Properties
|
|
Total
|
|
Master Trust 2014
|
|
Other Properties
|
|
Total
|
||||||||||||
Segment Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues
|
|
$
|
44,790
|
|
|
$
|
16,168
|
|
|
$
|
60,958
|
|
|
$
|
41,530
|
|
|
$
|
15,715
|
|
|
$
|
57,245
|
|
Property Management and Servicing Fees
(1)
|
|
(1,684
|
)
|
|
—
|
|
|
(1,684
|
)
|
|
(1,385
|
)
|
|
—
|
|
|
(1,385
|
)
|
||||||
Property expenses
|
|
(17,086
|
)
|
|
(7,317
|
)
|
|
(24,403
|
)
|
|
(19,430
|
)
|
|
(7,829
|
)
|
|
(27,259
|
)
|
||||||
Interest expense
|
|
(26,630
|
)
|
|
(1,113
|
)
|
|
(27,743
|
)
|
|
(18,775
|
)
|
|
—
|
|
|
(18,775
|
)
|
||||||
(Loss) gain on debt extinguishment
|
|
(108
|
)
|
|
—
|
|
|
(108
|
)
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
(Loss) gain on disposition of assets
|
|
(470
|
)
|
|
5,418
|
|
|
4,948
|
|
|
1,475
|
|
|
6,914
|
|
|
8,389
|
|
||||||
Segment (loss) income
|
|
$
|
(1,188
|
)
|
|
$
|
13,156
|
|
|
$
|
11,968
|
|
|
$
|
3,415
|
|
|
$
|
14,801
|
|
|
$
|
18,216
|
|
Non-allocated expenses
|
|
|
|
|
|
(10,989
|
)
|
|
|
|
|
|
(8,874
|
)
|
||||||||||
Net income
|
|
|
|
|
|
$
|
979
|
|
|
|
|
|
|
$
|
9,342
|
|
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||
|
|
Master Trust 2014
|
|
Other Properties
|
|
Total
|
|
Master Trust 2014
|
|
Other Properties
|
|
Total
|
||||||||||||
Segment Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenues
|
|
$
|
89,996
|
|
|
$
|
31,030
|
|
|
$
|
121,026
|
|
|
$
|
82,786
|
|
|
$
|
32,307
|
|
|
$
|
115,093
|
|
Property Management and Servicing Fees
(1)
|
|
(3,414
|
)
|
|
—
|
|
|
(3,414
|
)
|
|
(2,739
|
)
|
|
—
|
|
|
(2,739
|
)
|
||||||
Property expenses
|
|
(38,057
|
)
|
|
(13,577
|
)
|
|
(51,634
|
)
|
|
(37,808
|
)
|
|
(19,010
|
)
|
|
(56,818
|
)
|
||||||
Interest expense
|
|
(53,797
|
)
|
|
(1,958
|
)
|
|
(55,755
|
)
|
|
(37,591
|
)
|
|
—
|
|
|
(37,591
|
)
|
||||||
(Loss) gain on debt extinguishment
|
|
(363
|
)
|
|
—
|
|
|
(363
|
)
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
(Loss) gain on disposition of assets
|
|
(2,143
|
)
|
|
5,397
|
|
|
3,254
|
|
|
5,712
|
|
|
13,866
|
|
|
19,578
|
|
||||||
Segment (loss) income
|
|
$
|
(7,778
|
)
|
|
$
|
20,892
|
|
|
$
|
13,114
|
|
|
$
|
10,360
|
|
|
$
|
27,164
|
|
|
$
|
37,524
|
|
Non-allocated expenses
|
|
|
|
|
|
(19,714
|
)
|
|
|
|
|
|
(14,188
|
)
|
||||||||||
Net (loss) income
|
|
|
|
|
|
$
|
(6,600
|
)
|
|
|
|
|
|
$
|
23,336
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Master Trust 2014
|
|
Other Properties
|
|
Total
|
|
Master Trust 2014
|
|
Other Properties
|
|
Total
|
||||||||||||
Net investments
|
|
$
|
1,682,042
|
|
|
$
|
561,936
|
|
|
$
|
2,243,978
|
|
|
$
|
1,721,583
|
|
|
$
|
514,752
|
|
|
$
|
2,236,335
|
|
Restricted cash
|
|
59,973
|
|
|
330
|
|
|
60,303
|
|
|
66,504
|
|
|
—
|
|
|
66,504
|
|
||||||
Segment assets
|
|
$
|
1,742,015
|
|
|
$
|
562,266
|
|
|
$
|
2,304,281
|
|
|
$
|
1,788,087
|
|
|
$
|
514,752
|
|
|
$
|
2,302,839
|
|
Other assets
|
|
|
|
|
|
96,503
|
|
|
|
|
|
|
54,821
|
|
||||||||||
Total assets
|
|
|
|
|
|
$
|
2,400,784
|
|
|
|
|
|
|
$
|
2,357,660
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgages and notes payable, net
|
|
$
|
1,917,244
|
|
|
$
|
82,504
|
|
|
$
|
1,999,748
|
|
|
$
|
1,926,835
|
|
|
$
|
—
|
|
|
$
|
1,926,835
|
|
Intangible lease liabilities, net
|
|
18,095
|
|
|
4,755
|
|
|
22,850
|
|
|
19,725
|
|
|
4,122
|
|
|
23,847
|
|
||||||
Segment liabilities
|
|
$
|
1,935,339
|
|
|
$
|
87,259
|
|
|
$
|
2,022,598
|
|
|
$
|
1,946,560
|
|
|
$
|
4,122
|
|
|
$
|
1,950,682
|
|
Other liabilities
|
|
|
|
|
|
20,861
|
|
|
|
|
|
|
16,060
|
|
||||||||||
Total liabilities
|
|
|
|
|
|
$
|
2,043,459
|
|
|
|
|
|
|
$
|
1,966,742
|
|
|
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||||||||
|
|
Properties
(1)
|
|
Gross Proceeds
(1)
|
|
Properties
|
|
Gross Proceeds
|
||||||
Master Trust 2014
|
|
25
|
|
|
$
|
23,282
|
|
|
21
|
|
|
$
|
40,619
|
|
Other Properties
|
|
5
|
|
|
20,938
|
|
|
10
|
|
|
47,087
|
|
||
Total
|
|
30
|
|
|
$
|
44,220
|
|
|
31
|
|
|
$
|
87,706
|
|
◦
|
industry and economic conditions;
|
◦
|
volatility and uncertainty in the financial markets, including potential fluctuations in the CPI;
|
◦
|
our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate, integrate and manage diversifying acquisitions or investments;
|
◦
|
the financial performance of our retail tenants and the demand for retail space, particularly with respect to challenges being experienced by general merchandise retailers;
|
◦
|
our ability to diversify our tenant base and reduce the concentration of our significant tenant;
|
◦
|
the nature and extent of future competition;
|
◦
|
increases in our costs of borrowing as a result of changes in interest rates and other factors;
|
◦
|
our ability to access debt and equity capital markets;
|
◦
|
our ability to pay down, refinance, restructure and/or extend our indebtedness as it becomes due;
|
◦
|
our ability and willingness to renew our leases upon expiration and to reposition our properties on the same or better terms upon expiration in the event such properties are not renewed by tenants or we exercise our rights to replace existing tenants upon default;
|
◦
|
the impact of any financial, accounting, legal or regulatory issues or litigation that may affect us or our major tenants;
|
◦
|
our ability to manage our expanded operations;
|
◦
|
our ability and willingness to maintain our qualification as a REIT;
|
◦
|
our relationship with our Manager and its ability to retain qualified personnel;
|
◦
|
potential conflicts of interest with our Manager or Spirit;
|
◦
|
our ability to achieve the intended benefits from our Spin-Off from Spirit; and
|
◦
|
other risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, illiquidity of real estate investments and potential damages from natural disasters.
|
•
|
On May 31, 2018, the Spin-Off from Spirit was completed with the distribution of one share of SMTA common stock for every ten shares of Spirit common stock, held by each of Spirit's stockholders as of May 18, 2018.
|
•
|
42,851,010
shares of SMTA common stock were issued on
May 31, 2018
in conjunction with the Spin-Off.
|
•
|
Sold
three
properties leased to Shopko for gross proceeds of
$15.6 million
, at a weighted average capitalization rate of
7.92%
.
|
|
Three Months Ended June 30,
|
|||||||||||||
(In Thousands)
|
2018
|
|
2017
|
|
Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Rentals
|
$
|
59,240
|
|
|
$
|
56,003
|
|
|
$
|
3,237
|
|
|
5.8
|
%
|
Interest income on loans receivable
|
752
|
|
|
202
|
|
|
550
|
|
|
NM
|
|
|||
Tenant reimbursement income
|
404
|
|
|
372
|
|
|
32
|
|
|
8.6
|
%
|
|||
Other income
|
562
|
|
|
668
|
|
|
(106
|
)
|
|
(15.9
|
)%
|
|||
Total revenues
|
60,958
|
|
|
57,245
|
|
|
3,713
|
|
|
6.5
|
%
|
|||
Expenses:
|
|
|
|
|
|
|
|
|
|
|||||
General and administrative
|
3,775
|
|
|
8,462
|
|
|
(4,687
|
)
|
|
(55.4
|
)%
|
|||
Related party fees
|
3,351
|
|
|
1,385
|
|
|
1,966
|
|
|
NM
|
|
|||
Transaction costs
|
5,525
|
|
|
367
|
|
|
5,158
|
|
|
NM
|
|
|||
Property costs (including reimbursable)
|
2,047
|
|
|
1,565
|
|
|
482
|
|
|
30.8
|
%
|
|||
Interest
|
27,743
|
|
|
18,775
|
|
|
8,968
|
|
|
47.8
|
%
|
|||
Depreciation and amortization
|
21,109
|
|
|
20,275
|
|
|
834
|
|
|
4.1
|
%
|
|||
Impairments
|
1,247
|
|
|
5,419
|
|
|
(4,172
|
)
|
|
(77.0
|
)%
|
|||
Total expenses
|
64,797
|
|
|
56,248
|
|
|
8,549
|
|
|
15.2
|
%
|
|||
(Loss) income before other income and income tax expense
|
(3,839
|
)
|
|
997
|
|
|
(4,836
|
)
|
|
NM
|
|
|||
Other income:
|
|
|
|
|
|
|
|
|
|
|
||||
(Loss) gain on debt extinguishment
|
(108
|
)
|
|
1
|
|
|
(109
|
)
|
|
NM
|
|
|||
Gain on disposition of real estate assets
|
4,948
|
|
|
8,389
|
|
|
(3,441
|
)
|
|
(41.0
|
)%
|
|||
Total other income
|
4,840
|
|
|
8,390
|
|
|
(3,550
|
)
|
|
NM
|
|
|||
Income (loss) before income tax expense
|
1,001
|
|
|
9,387
|
|
|
(8,386
|
)
|
|
NM
|
|
|||
Income tax expense
|
(22
|
)
|
|
(45
|
)
|
|
23
|
|
|
(51.1
|
)%
|
|||
Net income
|
$
|
979
|
|
|
$
|
9,342
|
|
|
$
|
(8,363
|
)
|
|
(89.5
|
)%
|
|
Three Months Ended June 30,
|
||||||
(In Thousands)
|
2018
|
|
2017
|
||||
|
|
||||||
Interest expense-Master Trust 2014
|
$
|
24,169
|
|
|
$
|
17,378
|
|
Interest expense-CMBS
|
1,088
|
|
|
—
|
|
||
Non-cash interest expense:
|
|
|
|
|
|
||
Amortization of deferred financing costs
|
852
|
|
|
328
|
|
||
Amortization of debt discount, net
|
1,634
|
|
|
1,069
|
|
||
Total interest expense
|
$
|
27,743
|
|
|
$
|
18,775
|
|
|
Three Months Ended June 30,
|
||||||
(In Thousands)
|
2018
|
|
2017
|
||||
|
|
||||||
Depreciation of real estate assets
|
$
|
18,406
|
|
|
$
|
17,651
|
|
Amortization of lease intangibles
|
2,703
|
|
|
2,624
|
|
||
Total depreciation and amortization
|
$
|
21,109
|
|
|
$
|
20,275
|
|
|
Six Months Ended June 30,
|
|||||||||||||
(In Thousands)
|
2018
|
|
2017
|
|
Change
|
|
% Change
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Rentals
|
$
|
118,271
|
|
|
$
|
112,388
|
|
|
$
|
5,883
|
|
|
5.2
|
%
|
Interest income on loans receivable
|
833
|
|
|
405
|
|
|
428
|
|
|
NM
|
|
|||
Tenant reimbursement income
|
981
|
|
|
1,150
|
|
|
(169
|
)
|
|
(14.7
|
)%
|
|||
Other income
|
941
|
|
|
1,150
|
|
|
(209
|
)
|
|
(18.2
|
)%
|
|||
Total revenues
|
121,026
|
|
|
115,093
|
|
|
5,933
|
|
|
5.2
|
%
|
|||
Expenses:
|
|
|
|
|
|
|
|
|
|
|||||
General and administrative
|
9,426
|
|
|
13,731
|
|
|
(4,305
|
)
|
|
(31.4
|
)%
|
|||
Related party fees
|
5,081
|
|
|
2,739
|
|
|
2,342
|
|
|
85.5
|
%
|
|||
Transaction costs
|
8,542
|
|
|
367
|
|
|
8,175
|
|
|
NM
|
|
|||
Property costs (including reimbursable)
|
3,460
|
|
|
4,021
|
|
|
(561
|
)
|
|
(14.0
|
)%
|
|||
Interest
|
55,755
|
|
|
37,591
|
|
|
18,164
|
|
|
48.3
|
%
|
|||
Depreciation and amortization
|
42,102
|
|
|
40,885
|
|
|
1,217
|
|
|
3.0
|
%
|
|||
Impairments
|
6,072
|
|
|
11,912
|
|
|
(5,840
|
)
|
|
(49.0
|
)%
|
|||
Total expenses
|
130,438
|
|
|
111,246
|
|
|
19,192
|
|
|
17.3
|
%
|
|||
(Loss) income before other income and income tax expense
|
(9,412
|
)
|
|
3,847
|
|
|
(13,259
|
)
|
|
NM
|
|
|||
Other income:
|
|
|
|
|
|
|
|
|
|
|||||
(Loss) gain on debt extinguishment
|
(363
|
)
|
|
1
|
|
|
(364
|
)
|
|
NM
|
|
|||
Gain on disposition of real estate assets
|
3,254
|
|
|
19,578
|
|
|
(16,324
|
)
|
|
(83.4
|
)%
|
|||
Total other income
|
2,891
|
|
|
19,579
|
|
|
(16,688
|
)
|
|
NM
|
|
|||
Income (loss) before income tax expense
|
(6,521
|
)
|
|
23,426
|
|
|
(29,947
|
)
|
|
NM
|
|
|||
Income tax expense
|
(79
|
)
|
|
(90
|
)
|
|
11
|
|
|
(12.2
|
)%
|
|||
Net (loss) income
|
$
|
(6,600
|
)
|
|
$
|
23,336
|
|
|
$
|
(29,936
|
)
|
|
NM
|
|
|
Six Months Ended June 30,
|
||||||
(In Thousands)
|
2018
|
|
2017
|
||||
|
|
||||||
Interest expense-Master Trust 2014
|
$
|
48,479
|
|
|
$
|
34,808
|
|
Interest expense-CMBS
|
1,915
|
|
|
—
|
|
||
Non-cash interest expense:
|
|
|
|
|
|
||
Amortization of deferred financing costs
|
1,727
|
|
|
653
|
|
||
Amortization of debt discount, net
|
3,634
|
|
|
2,130
|
|
||
Total interest expense
|
$
|
55,755
|
|
|
$
|
37,591
|
|
|
Six Months Ended June 30,
|
||||||
(In Thousands)
|
2018
|
|
2017
|
||||
|
|
||||||
Depreciation of real estate assets
|
$
|
36,710
|
|
|
$
|
35,562
|
|
Amortization of lease intangibles
|
5,392
|
|
|
5,323
|
|
||
Total depreciation and amortization
|
$
|
42,102
|
|
|
$
|
40,885
|
|
888
|
$233.8M
|
45
|
205
|
23
|
Properties
|
Annualized Contractual Rent
|
States
|
Tenants
|
Industries
|
◦
|
an Occupancy of
98.8%
;
|
◦
|
56.4%
of Contractual Rent from master leases;
|
◦
|
95.8%
of leases containing contractual rent escalators (based on Contractual Rent); and
|
◦
|
a weighted average remaining lease term of
10.1
years.
|
Tenant
(1)
|
|
Number of
Properties |
|
Total Square
Feet |
|
Percent of
Contractual Rent |
|||
|
|
|
|
|
|
|
|||
Shopko
|
|
95
|
|
|
6,506
|
|
|
19.5
|
%
|
AMC Entertainment, Inc.
|
|
14
|
|
|
696
|
|
|
4.7
|
%
|
Academy, LTD.
|
|
2
|
|
|
1,564
|
|
|
4.2
|
%
|
Universal Pool Co., Inc.
|
|
14
|
|
|
543
|
|
|
3.1
|
%
|
Crème De La Crème (Lessee), Inc.
|
|
9
|
|
|
190
|
|
|
2.3
|
%
|
Goodrich Quality Theaters
|
|
4
|
|
|
245
|
|
|
2.3
|
%
|
Casual Male Retail Group Inc.
|
|
1
|
|
|
756
|
|
|
2.2
|
%
|
Buehler Food Markets Inc.
|
|
5
|
|
|
503
|
|
|
2.2
|
%
|
Carmax, Inc.
|
|
4
|
|
|
201
|
|
|
2.1
|
%
|
Heartland Dental Holdings, Inc.
|
|
59
|
|
|
234
|
|
|
1.9
|
%
|
Other
|
|
670
|
|
|
8,270
|
|
|
55.5
|
%
|
Vacant
|
|
11
|
|
|
263
|
|
|
—
|
%
|
Total
|
|
888
|
|
|
19,971
|
|
|
100.0
|
%
|
Asset Type
|
|
Number of
Properties |
|
Total Square
Feet |
|
Percent of
Contractual Rent |
||
|
|
|
|
|
|
|
||
Retail
|
|
766
|
|
|
15,415
|
|
|
82.9%
|
Industrial
|
|
41
|
|
|
3,713
|
|
|
9.3%
|
Office
|
|
81
|
|
|
843
|
|
|
7.8%
|
Total
|
|
888
|
|
|
19,971
|
|
|
100.0%
|
Industry
|
|
Number of
Properties |
|
Total Square
Feet |
|
Percent of
Contractual Rent |
||
|
|
|
|
|
|
|
||
General Merchandise
|
|
98
|
|
|
6,606
|
|
|
19.7%
|
Restaurants-Quick Service
|
|
311
|
|
|
852
|
|
|
11.1%
|
Movie Theaters
|
|
29
|
|
|
1,519
|
|
|
10.2%
|
Restaurants-Casual Dining
|
|
106
|
|
|
754
|
|
|
9.4%
|
Medical / Other Office
|
|
80
|
|
|
652
|
|
|
6.4%
|
Sporting Goods
|
|
4
|
|
|
1,832
|
|
|
5.4%
|
Specialty Retail
|
|
23
|
|
|
954
|
|
|
4.4%
|
Education
|
|
18
|
|
|
431
|
|
|
4.4%
|
Home Furnishings
|
|
17
|
|
|
907
|
|
|
3.8%
|
Grocery
|
|
19
|
|
|
1,011
|
|
|
3.7%
|
Automotive Parts and Services
|
|
79
|
|
|
362
|
|
|
3.7%
|
Automotive Dealers
|
|
12
|
|
|
323
|
|
|
3.5%
|
Health and Fitness
|
|
14
|
|
|
562
|
|
|
3.3%
|
Apparel
|
|
3
|
|
|
1,019
|
|
|
2.7%
|
Other
|
|
3
|
|
|
183
|
|
|
2.1%
|
Entertainment
|
|
4
|
|
|
200
|
|
|
1.7%
|
Manufacturing
|
|
7
|
|
|
763
|
|
|
1.0%
|
Car Washes
|
|
6
|
|
|
48
|
|
|
1.0%
|
Building Materials
|
|
28
|
|
|
458
|
|
|
*
|
Drug Stores / Pharmacies
|
|
8
|
|
|
82
|
|
|
*
|
Distribution
|
|
1
|
|
|
94
|
|
|
*
|
Multi-Tenant
|
|
2
|
|
|
41
|
|
|
*
|
Dollar Stores
|
|
5
|
|
|
55
|
|
|
*
|
Vacant
|
|
11
|
|
|
263
|
|
|
—%
|
Total
|
|
888
|
|
|
19,971
|
|
|
100.0%
|
Location
|
|
Number of Properties
|
|
Total Square Feet (in thousands)
|
|
Percent of Contractual Rent
|
|
Location
(
continued)
|
|
Number of Properties
|
|
Total Square Feet (in thousands)
|
|
Percent of Contractual Rent
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Texas
|
|
64
|
|
|
2,698
|
|
|
11.8
|
%
|
|
Arkansas
|
|
20
|
|
|
316
|
|
|
1.3
|
Wisconsin
|
|
35
|
|
|
2,770
|
|
|
9.3
|
|
|
New Mexico
|
|
10
|
|
|
76
|
|
|
1.2
|
Illinois
|
|
70
|
|
|
1,461
|
|
|
8.3
|
|
|
Colorado
|
|
7
|
|
|
198
|
|
|
1.2
|
Minnesota
|
|
25
|
|
|
1,398
|
|
|
5.6
|
|
|
Washington
|
|
5
|
|
|
348
|
|
|
1.2
|
Ohio
|
|
40
|
|
|
1,162
|
|
|
5.3
|
|
|
New York
|
|
10
|
|
|
104
|
|
|
1.1
|
Georgia
|
|
72
|
|
|
476
|
|
|
5.1
|
|
|
South Dakota
|
|
5
|
|
|
268
|
|
|
1.0
|
Michigan
|
|
64
|
|
|
1,184
|
|
|
4.4
|
|
|
Virginia
|
|
17
|
|
|
208
|
|
|
*
|
Indiana
|
|
41
|
|
|
637
|
|
|
4.3
|
|
|
Montana
|
|
3
|
|
|
254
|
|
|
*
|
Missouri
|
|
37
|
|
|
520
|
|
|
3.0
|
|
|
West Virginia
|
|
8
|
|
|
233
|
|
|
*
|
South Carolina
|
|
16
|
|
|
415
|
|
|
2.7
|
|
|
Nebraska
|
|
7
|
|
|
227
|
|
|
*
|
Pennsylvania
|
|
23
|
|
|
405
|
|
|
2.6
|
|
|
Kentucky
|
|
15
|
|
|
95
|
|
|
*
|
Florida
|
|
46
|
|
|
380
|
|
|
2.6
|
|
|
Idaho
|
|
4
|
|
|
233
|
|
|
*
|
Arizona
|
|
21
|
|
|
301
|
|
|
2.5
|
|
|
Mississippi
|
|
11
|
|
|
60
|
|
|
*
|
North Carolina
|
|
20
|
|
|
386
|
|
|
2.3
|
|
|
Wyoming
|
|
6
|
|
|
113
|
|
|
*
|
Massachusetts
|
|
1
|
|
|
756
|
|
|
2.2
|
|
|
Maryland
|
|
12
|
|
|
41
|
|
|
*
|
Oregon
|
|
6
|
|
|
300
|
|
|
1.9
|
|
|
New Jersey
|
|
3
|
|
|
292
|
|
|
*
|
Nevada
|
|
3
|
|
|
166
|
|
|
1.9
|
|
|
Louisiana
|
|
7
|
|
|
19
|
|
|
*
|
Tennessee
|
|
48
|
|
|
232
|
|
|
1.8
|
|
|
Utah
|
|
2
|
|
|
97
|
|
|
*
|
California
|
|
13
|
|
|
122
|
|
|
1.8
|
|
|
Rhode Island
|
|
1
|
|
|
22
|
|
|
*
|
Alabama
|
|
31
|
|
|
110
|
|
|
1.8
|
|
|
Alaska
|
|
1
|
|
|
50
|
|
|
*
|
Kansas
|
|
19
|
|
|
252
|
|
|
1.6
|
|
|
North Dakota
|
|
1
|
|
|
8
|
|
|
*
|
Oklahoma
|
|
17
|
|
|
201
|
|
|
1.5
|
|
|
Maine
|
|
1
|
|
|
6
|
|
|
*
|
Iowa
|
|
20
|
|
|
371
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
Leases Expiring In:
|
|
Number of
Properties |
|
Annualized Contractual Rent
|
|
Total Square
Feet |
|
Percent of Expiring
Contractual Rent |
|||||
|
|
|
|
|
|
|
|
|
|
||||
2018
|
|
13
|
|
$
|
1,783
|
|
|
121
|
|
|
0.8
|
%
|
|
2019
|
|
72
|
|
11,282
|
|
|
998
|
|
|
4.8
|
|
|
|
2020
|
|
37
|
|
6,510
|
|
|
452
|
|
|
2.8
|
|
|
|
2021
|
|
61
|
|
11,809
|
|
|
1,180
|
|
|
5.1
|
|
|
|
2022
|
|
77
|
|
13,216
|
|
|
1,119
|
|
|
5.7
|
|
|
|
2023
|
|
24
|
|
4,035
|
|
|
361
|
|
|
1.7
|
|
|
|
2024
|
|
31
|
|
7,091
|
|
|
322
|
|
|
3.0
|
|
|
|
2025
|
|
38
|
|
15,947
|
|
|
783
|
|
|
6.8
|
|
|
|
2026
|
|
110
|
|
19,937
|
|
|
1,931
|
|
|
8.5
|
|
|
|
2027
|
|
62
|
|
38,242
|
|
|
3,397
|
|
|
16.4
|
|
|
|
Thereafter
|
|
352
|
|
103,922
|
|
|
9,044
|
|
|
44.4
|
|
|
|
Vacant
|
|
11
|
|
—
|
|
|
263
|
|
|
—
|
|
|
|
Total owned properties
|
|
888
|
|
$
|
233,774
|
|
|
19,971
|
|
|
100.0
|
%
|
|
|
Stated
Rates (1) |
|
Maturity
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
(in Years)
|
(in Thousands)
|
|||||||
Series 2014-1 Class A2
|
5.4%
|
|
2.1
|
|
$
|
246,318
|
|
|
$
|
252,437
|
|
Series 2014-2
|
5.8%
|
|
2.7
|
|
231,550
|
|
|
234,329
|
|
||
Series 2014-3
|
5.7%
|
|
3.7
|
|
310,014
|
|
|
311,336
|
|
||
Series 2014-4 Class A1
|
3.5%
|
|
1.6
|
|
149,484
|
|
|
150,000
|
|
||
Series 2014-4 Class A2
|
4.6%
|
|
11.6
|
|
349,328
|
|
|
358,664
|
|
||
Series 2017-1 Class A
|
4.4%
|
|
4.5
|
|
539,620
|
|
|
542,400
|
|
||
Series 2017-1 Class B
|
5.5%
|
|
4.5
|
|
132,000
|
|
|
132,000
|
|
||
Total Master Trust 2014 notes
|
4.9%
|
|
4.9
|
|
1,958,314
|
|
|
1,981,166
|
|
||
Debt discount, net
|
|
|
|
|
(24,491
|
)
|
|
(36,342
|
)
|
||
Deferred financing costs, net
|
|
|
|
|
(16,579
|
)
|
|
(17,989
|
)
|
||
Total Master Trust 2014, net
|
|
|
|
|
$
|
1,917,244
|
|
|
$
|
1,926,835
|
|
|
Total
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Master Trust 2014
|
$
|
1,958,314
|
|
|
$
|
16,926
|
|
|
$
|
35,199
|
|
|
$
|
404,132
|
|
|
$
|
242,248
|
|
|
$
|
993,273
|
|
|
$
|
266,536
|
|
CMBS
|
83,604
|
|
|
661
|
|
|
1,204
|
|
|
1,256
|
|
|
1,336
|
|
|
1,407
|
|
|
77,740
|
|
|||||||
Total
|
$
|
2,041,918
|
|
|
$
|
17,587
|
|
|
$
|
36,403
|
|
|
$
|
405,388
|
|
|
$
|
243,584
|
|
|
$
|
994,680
|
|
|
$
|
344,276
|
|
|
|
Six Months Ended June 30,
|
||||||||||
(In Thousands)
|
|
2018
|
|
2017
|
|
Change
|
||||||
|
|
|
||||||||||
Net cash provided by operating activities
|
|
$
|
46,804
|
|
|
$
|
66,152
|
|
|
$
|
(19,348
|
)
|
Net cash provided by investing activities
|
|
24,856
|
|
|
59,690
|
|
|
(34,834
|
)
|
|||
Net cash used in financing activities
|
|
(40,511
|
)
|
|
(114,660
|
)
|
|
74,149
|
|
|||
Net increase in cash and cash equivalents
|
|
$
|
31,149
|
|
|
$
|
11,182
|
|
|
$
|
19,967
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Unaudited, In Thousands)
|
|
2018
(1)
|
|
2017
(2)
|
|
2018
(3)
|
|
2017
(2)
|
||||||||
|
|
|
|
|
|
|
||||||||||
Net (loss) income attributable to common stockholders
|
|
$
|
(346
|
)
|
|
$
|
9,342
|
|
|
$
|
(7,925
|
)
|
|
$
|
23,336
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
||||||
Portfolio depreciation and amortization
|
|
21,109
|
|
|
20,275
|
|
|
42,102
|
|
|
40,885
|
|
||||
Portfolio impairments
|
|
1,247
|
|
|
5,419
|
|
|
6,072
|
|
|
11,912
|
|
||||
Gain on disposition of real estate assets
|
|
(4,948
|
)
|
|
(8,389
|
)
|
|
(3,254
|
)
|
|
(19,578
|
)
|
||||
Total adjustments to net income
|
|
17,408
|
|
|
17,305
|
|
|
44,920
|
|
|
33,219
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
FFO
|
|
$
|
17,062
|
|
|
$
|
26,647
|
|
|
$
|
36,995
|
|
|
$
|
56,555
|
|
Add/(less):
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss (gain) on debt extinguishment
|
|
108
|
|
|
(1
|
)
|
|
363
|
|
|
(1
|
)
|
||||
Transaction costs
|
|
5,525
|
|
|
367
|
|
|
8,542
|
|
|
367
|
|
||||
Real Estate Acquisition Costs
|
|
218
|
|
|
10
|
|
|
219
|
|
|
10
|
|
||||
Non-cash interest expense
|
|
2,486
|
|
|
1,397
|
|
|
5,361
|
|
|
2,783
|
|
||||
Straight-line rent, net of related bad debt expense
|
|
(587
|
)
|
|
(466
|
)
|
|
(1,434
|
)
|
|
(859
|
)
|
||||
Other amortization and non-cash charges
|
|
133
|
|
|
192
|
|
|
223
|
|
|
324
|
|
||||
Non-cash compensation expense
|
|
818
|
|
|
3,404
|
|
|
2,424
|
|
|
4,235
|
|
||||
Total adjustments to FFO
|
|
8,701
|
|
|
4,903
|
|
|
15,698
|
|
|
6,859
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
AFFO
|
|
$
|
25,763
|
|
|
$
|
31,550
|
|
|
$
|
52,693
|
|
|
$
|
63,414
|
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared to common stockholders
|
|
$
|
—
|
|
|
N/A
|
|
|
$
|
—
|
|
|
N/A
|
|
||
Net (loss) income per share of common stock
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
(0.01
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.54
|
|
Diluted
|
|
$
|
(0.01
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.54
|
|
FFO per share of common stock
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
$
|
0.40
|
|
|
$
|
0.62
|
|
|
$
|
0.86
|
|
|
$
|
1.32
|
|
AFFO per share of common stock
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
$
|
0.60
|
|
|
$
|
0.74
|
|
|
$
|
1.23
|
|
|
$
|
1.48
|
|
Weighted average shares of common stock outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
||||
Diluted
|
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
|
42,851,010
|
|
|
|
June 30,
|
||||||
(Unaudited, In Thousands)
|
|
2018
|
|
2017
|
||||
|
|
|
||||||
Master Trust 2014, net
|
|
$
|
1,917,244
|
|
|
$
|
1,334,485
|
|
CMBS, net
|
|
82,504
|
|
|
—
|
|
||
|
|
$
|
1,999,748
|
|
|
$
|
1,334,485
|
|
Add/(less):
|
|
|
|
|
|
|
||
Unamortized debt discount
|
|
24,491
|
|
|
16,855
|
|
||
Unamortized deferred financing costs
|
|
17,678
|
|
|
7,904
|
|
||
Cash and cash equivalents
|
|
(37,356
|
)
|
|
(6
|
)
|
||
Cash reserves on deposit with lenders as additional security classified as other assets
|
|
(60,303
|
)
|
|
(23,864
|
)
|
||
Total adjustments
|
|
(55,490
|
)
|
|
889
|
|
||
Adjusted Debt
|
|
$
|
1,944,258
|
|
|
$
|
1,335,374
|
|
|
|
|
||||||
|
|
Three Months Ended June 30,
|
||||||
(Unaudited, In Thousands)
|
|
2018
|
|
2017
(1)
|
||||
|
|
|
||||||
Net (loss) income attributable to common stockholders
|
|
$
|
(346
|
)
|
|
$
|
9,342
|
|
Add/(less):
|
|
|
|
|
|
|||
Interest
|
|
27,743
|
|
|
18,775
|
|
||
Depreciation and amortization
|
|
21,109
|
|
|
20,275
|
|
||
Income tax expense
|
|
22
|
|
|
45
|
|
||
Gain on disposition of real estate assets
|
|
(4,948
|
)
|
|
(8,389
|
)
|
||
Impairments on real estate assets
|
|
1,247
|
|
|
5,419
|
|
||
Total adjustments
|
|
45,173
|
|
|
36,125
|
|
||
EBITDA
re
|
|
$
|
44,827
|
|
|
$
|
45,467
|
|
Add/(less):
|
|
|
|
|
|
|||
Transaction costs
|
|
5,525
|
|
|
367
|
|
||
Real estate acquisition costs
|
|
218
|
|
|
10
|
|
||
Loss (gain) on debt extinguishment
|
|
108
|
|
|
(1
|
)
|
||
Total adjustments
|
|
5,851
|
|
|
376
|
|
||
Adjusted EBITDA
re
|
|
$
|
50,678
|
|
|
$
|
45,843
|
|
Annualized Adjusted EBITDA
re
(2)
|
|
$
|
202,712
|
|
|
$
|
183,372
|
|
|
|
|
|
|
||||
Interest Expense
|
|
$
|
27,743
|
|
|
$
|
18,775
|
|
Less: Non-cash interest
|
|
(2,486
|
)
|
|
(1,397
|
)
|
||
Preferred Stock Dividends
|
|
1,325
|
|
|
—
|
|
||
Fixed Charges
|
|
$
|
26,582
|
|
|
$
|
17,378
|
|
|
|
|
|
|
||||
Adjusted Debt / Annualized Adjusted EBITDA
re
|
|
9.3x
|
|
7.3x
|
||||
Fixed Charge Coverage Ratio (Adjusted EBITDA
re
/ Fixed Charges)
|
|
2.0x
|
|
2.6x
|
(1)
|
Amounts for historical years are based on the SMTA's allocated portion of Spirit’s expense. For further detail on the allocation, see related party transactions as described in Note 6 to the consolidated financial statements herein.
|
(2)
|
Current quarter Adjusted EBITDA
re
multiplied by four.
|
|
Carrying
Value |
|
Estimated
Fair Value |
||||
|
|
|
|
||||
Loans receivable, net
|
$
|
67,752
|
|
|
$
|
68,522
|
|
Mortgages and notes payable, net
(1)
|
$
|
1,999,748
|
|
|
$
|
2,064,421
|
|
Exhibit No.
|
Description
|
|
|
2.1
|
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
3.3
|
|
|
|
10.1
|
|
|
|
10.2
|
|
|
|
10.3
|
|
|
|
10.4
|
|
|
|
10.5
|
|
|
|
10.6
|
|
|
|
10.7
|
|
|
|
10.8
|
|
|
|
31.1*
|
|
|
|
32.1*
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
|
SPIRIT MTA REIT
|
||
|
|
|
By:
|
|
/s/ Ricardo Rodriguez
|
Name:
|
|
Ricardo Rodriguez
|
Title:
|
|
Chief Executive Officer, President, Chief Financial Officer and Treasurer
|
1 Year Spirit MTA REIT Chart |
1 Month Spirit MTA REIT Chart |
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