8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 3, 2017

VEREIT, INC.
VEREIT OPERATING PARTNERSHIP, L.P.
(Exact name of Registrant as specified in its charter)
Maryland	001-35263	45-2482685
Delaware	333-197780	45-1255683
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
2325 E. Camelback Road, Suite 1100
Phoenix, AZ 85016
(Address of principal executive offices, including zip code)
(800) 606-3610
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)

________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     o

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 provided pursuant to Section 13(a) of the Exchange Act.      o

Item 2.02. Results of Operations and Financial Condition.

On August 3, 2017, VEREIT, Inc. (the “Company”) furnished the following documents: (i) a press release relating to its second quarter 2017 financial results and related matters, attached hereto as Exhibit 99.1; and (ii) quarterly supplemental information for the fiscal quarter ended June 30, 2017, attached hereto as Exhibit 99.2. The information set forth in this Item 2.02 and in the attached Exhibits 99.1 and 99.2 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information set forth in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Press Release issued August 3, 2017 relating to Second Quarter 2017 Financial Results and Related Matters
99.2	Quarterly Supplemental Information for the Quarter Ended June 30, 2017

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

VEREIT, INC.
By:	/s/ Michael J. Bartolotta
Name:	Michael J. Bartolotta
Title:	Executive Vice President and Chief Financial Officer

VEREIT OPERATING PARTNERSHIP, L.P. By: VEREIT, Inc., its sole general partner
By:	/s/ Michael J. Bartolotta
Name:	Michael J. Bartolotta
Title:	Executive Vice President and Chief Financial Officer

Date: August 2, 2017

Exhibit Index

Exhibit No.	Description
99.1	Press Release issued August 3, 2017 relating to Second Quarter 2017 Financial Results and Related Matters
99.2	Quarterly Supplemental Information for the Quarter Ended June 30, 2017

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

VEREIT® Announces Second Quarter2017 Operating Results

Continues Capital Allocation to Strengthen Portfolio and Balance Sheet Through Acquisitions, Dispositions and Debt Reduction

Phoenix, AZ, August 3, 2017 -- VEREIT, Inc. (NYSE: VER) (“VEREIT” or the “Company”) announced today its operating results for the three months ending June 30, 2017.

Second Quarter2017 Highlights

• Net Income of $34.2 million and Net Income per diluted share of $0.02

• Achieved $0.18 AFFO per diluted share including $0.01 from Cole Capital

• Completed $101.6 million of acquisitions and $224.8 million of dispositions and $70.2 million of acquisitions and $9.6 million of dispositions subsequent to the quarter

• Decreased Debt from $6.3 billion to $6.1 billion and Net Debt from $6.0 billion to $5.7 billion, or 37.9% net debt to gross real estate investments

• Reduced Net Debt to Normalized EBITDA from 5.5x to 5.4x

• Cole Capital^® raised $78.0 million of new equity capital

• Company narrows AFFO per diluted share guidance range from $0.70 - $0.73 to $0.71 - $0.73 (see reconciliation to earnings per share at the end of this release)

Second Quarter2017 Consolidated Financial Results

Revenue

Consolidated revenue for the quarter ended June 30, 2017 decreased $34.1 million to $336.9 million as compared to revenue of $371.0 million for the same quarter in 2016, primarily due to 2016 and 2017 dispositions.

Net Income (Loss) and Net Income (Loss) Attributable to Common Stockholders per Diluted Share

Consolidated net income for the quarter ended June 30, 2017 increased $31.0 million to $34.2 million as compared to net income of $3.2 million for the same quarter in 2016 and net income per diluted share increased $0.04 to $0.02 for the quarter ended June 30, 2017, as compared to a net loss per diluted share of $0.02 for the same quarter in 2016. The differences were primarily due to a larger gain on the disposition of real estate and extinguishment of debt and the following lower expense items: Cole Capital reallowed fees and commissions, property operating, G&A, depreciation and amortization and interest expense. These were partially offset by lower revenue and higher impairments and litigation expenses.

Normalized EBITDA

Consolidated Normalized EBITDA for the quarter ended June 30, 2017 decreased $15.1 million to $268.0 million as compared to Normalized EBITDA of $283.1 million for the same quarter in 2016, primarily due to 2016 and 2017 dispositions.

Funds From Operations Attributable to Common Stockholders and Limited Partners (“FFO”) and FFO per Diluted Share

FFO for the quarter ended June 30, 2017 decreased $12.8 million to $171.4 million, as compared to $184.2 million for the same quarter in 2016 and FFO per diluted share decreased $0.03 to $0.17 for the quarter ended June 30, 2017, as compared to $0.20 for the same quarter in 2016.

Adjusted FFO Attributable to Common Stockholders and Limited Partners (“AFFO”) and AFFO per Diluted Share

AFFO for the quarter ended June 30, 2017 increased $0.8 million to $180.9 million, as compared to $180.1 million for the same quarter in 2016, and AFFO per diluted share decreased $0.01 to $0.18 for the quarter ended June 30, 2017, as compared to $0.19 for the same quarter in 2016.

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Common Stock Dividend Information

On August 2, 2017, the Company’s Board of Directors declared a quarterly dividend of $0.1375 per share for the third quarter of 2017, representing an annual distribution rate of $0.55 per share. The dividend will be paid on October 16, 2017 to common stockholders of record as of September 29, 2017.

Balance Sheet and Liquidity

As of June 30, 2017, there was no balance outstanding on the Company’s revolving line of credit. The Company’s $2.8 billion unsecured credit facility is made up of a $500 million term loan and a revolving line of credit with $2.3 billion of capacity available. During the quarter, secured debt was reduced by $203.8 million.

Share Repurchase Activity

As of June 30, 2017, the Company repurchased 68,759 shares of its common stock at an average price of $7.50 per share.

Consolidated Financial Statistics

Consolidated Financial Statistics as of the quarter ended June 30, 2017 are as follows: Net Debt to Normalized EBITDA of 5.4x, Fixed Charge Coverage Ratio of 3.0x, Unencumbered Gross Real Estate Investments to Total Gross Real Estate Investments ratio of 69.5%, Net Debt to Gross Real Estate Investments of 37.9% and Weighted Average Debt Term of 4.0 years.

Management Commentary

Glenn J. Rufrano, Chief Executive Officer, stated, “We are pleased with VEREIT’s second quarter results demonstrating effective capital allocation and the ability to successfully execute on targeted acquisitions and dispositions. Based on our year-to-date performance, we are able to narrow our AFFO guidance,” stated Glenn J. Rufrano, Chief Executive Officer. “During the past two years, we have proven our ability to execute on our plan to re-shape the portfolio and enhance our balance sheet. With a business model focused on a large, diversified portfolio comprised of single-tenant retail, restaurant, office and industrial, we can reduce risk while maintaining optionality through various market conditions. We are now poised to provide capital to corporate clients through a pointed acquisition process.”

Real Estate Investment (“REI”) Segment Update

Real Estate Portfolio

As of June 30, 2017, the Company’s portfolio consisted of 4,105 properties with total portfolio occupancy of 98.6%, investment grade tenancy of 40.7% and a weighted-average remaining lease term of 9.5 years. During the quarter ended June 30, 2017, same-store rents (4,038 properties) were flat as compared to the same quarter in 2016. Excluding the effects of certain early lease renewal efforts, same store rents would have increased 0.3%.

Property Acquisitions

During the second quarter of 2017, the Company acquired 38 properties for approximately $101.6 million at an average cash cap rate of 7.0%.

Property Dispositions

During the quarter ended June 30, 2017, the Company disposed of 37 properties for approximately $224.8 million at an average cash cap rate of 6.9%, including $73.5 million in net sales of Red Lobster restaurants. The gain on second quarter sales was approximately $43.1 million.

Cole Capital^®Segment Update

Investment Management Capital Raise

During the quarter, Cole Capital raised $114.5 million of capital on behalf of its sponsored non-listed REITs (the “Cole REITs”), including $36.5 million through the Cole REITs’ distribution reinvestment plans (“DRIP”), compared to $174.1 million, including $35.5 million of DRIP proceeds, in the second quarter of 2016.

Investment Management Acquisitions

Cole Capital invested $276.7 million in 45 properties on behalf of the Cole REITs in the second quarter of 2017, compared to $211.2 million in 14 properties in the second quarter of 2016.

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Subsequent Events - Consolidated

Property Acquisitions

From July 1, 2017 through August 1, 2017, the Company acquired three properties for $70.2 million at an average cash cap rate of 6.5%. Acquisitions year-to-date through August 1, 2017, totaled $273.3 million. The average cash cap rate excluding the fee interest purchases in the first quarter was 6.9%.

Property Dispositions

From July 1, 2017 through August 1, 2017, the Company disposed of seven properties for an aggregate sales price of $9.6 million at an average cash cap rate of 7.2%. Dispositions year-to-date through August 1, 2017, totaled $433.6 million at an average cash cap rate of 7.0%.

Cole Capital Equity Raise

In July 2017, Cole Capital raised $34.1 million of capital on behalf of the Cole REITs, including $11.9 million through DRIP.

Audio Webcast Details

The live audio webcast, beginning at 1:00 p.m. ET on Thursday, August 3, 2017, is available by accessing this link:

http://ir.vereit.com/.Participants should log in 10-15 minutes early.

Following the call, a replay of the webcast will be available at the link above and archived for up to 12 months following the call.

About the Company

VEREIT is a leading, full-service real estate operating company with investment management capability. VEREIT owns and actively manages a diversified portfolio of retail, restaurant, office and industrial real estate assets with a total asset book value of $15.0 billion including approximately 4,100 properties and 91.1 million square feet, located in 49 states, as well as Puerto Rico and Canada. Additionally, VEREIT manages $7.7 billion of gross real estate investments on behalf of the Cole Capital^® non-listed REITs. VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange. Additional information about VEREIT can be found on its website at www.VEREIT.com and through social media platforms such as Twitter and LinkedIn.

Media Contacts

Parke Chapman

Rubenstein Associates

212.843.8489 | pchapman@rubenstein.com

John Bacon, Senior Vice President, Corporate Communications

VEREIT

60.778.6057 | JBacon@VEREIT.com

Investor Contact

Bonni Rosen, Director, Investor Relations                

VEREIT            

877.405.2653 | BRosen@VEREIT.com

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Definitions

Descriptions of FFO and AFFO, EBITDA and Normalized EBITDA, Debt Outstanding and Adjusted Debt Outstanding, Net Debt, Interest Expense, Excluding Non-Cash Amortization, Fixed Charge Coverage Ratio, Net Debt to Normalized EBITDA Annualized Ratio, Net Debt Leverage Ratio, and Unencumbered Asset Ratio are provided below. Refer to pages 7 through 12 for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure and the calculations of these financial ratios.

Effective January 1, 2017, we determined that adjusted funds from operations (“AFFO”), a non-GAAP measure, and our real estate portfolio and economic metrics should exclude the impact of properties owned by the Company for the month beginning with the date that (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 ("Excluded Properties") and ending with the disposition date, to better reflect our ongoing operations. Excluded Properties at June 30, 2017, included two vacant office properties and one vacant industrial property, comprised of an aggregate of 991,000 square feet, which each secured a mortgage note payable, with aggregate Debt Outstanding of $83.9 million. The Company did not update data presented for prior periods as the impact on prior period non-GAAP measures, including AFFO and Normalized EBITDA, and operating metrics was immaterial.

Funds from Operations (“FFO”) and Adjusted Funds from Operations (“AFFO”)

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 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 and impairment write-downs on real estate including the pro rata share of adjustments for unconsolidated partnerships and joint ventures. We calculated FFO in accordance with NAREIT's definition described above.

In addition to FFO, we use 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 and other non-routine costs, net of insurance recoveries, gains or losses on sale of investment securities or mortgage notes receivable and legal settlements and insurance recoveries not in the ordinary course of business. We also exclude certain non-cash items such as impairments of goodwill and intangible assets, straight-line rental revenue, 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. Effective January 1, 2017, we determined to 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.

4

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Normalized EBITDA

Normalized EBITDA as disclosed represents EBITDA, or earnings before interest, taxes, depreciation and amortization, modified to exclude non-routine items such as acquisition-related expenses, litigation and other non-routine transactions costs, net of insurance recoveries, gains or losses on sale of investment securities or mortgage notes receivable and legal settlements and insurance recoveries not in the ordinary course of business. We also exclude certain non-cash items such as impairments of goodwill and real estate and intangible assets, straight-line rental revenue, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, write-off of program development costs, and amortization of intangibles, above-market lease assets and below-market lease liabilities. Beginning in 2017, Normalized EBITDA omits the Normalized EBITDA impact of Excluded Properties. Management believes that excluding these costs from EBITDA 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. The Company believes that Normalized EBITDA is a useful non-GAAP supplemental measure to investors and analysts for assessing the performance of the Company's business segments. Therefore, Normalized EBITDA should not be considered as an alternative to net income, as computed in accordance with GAAP, or as an indicator of the Company's financial performance. The Company uses Normalized EBITDA as one measure of its operating performance when formulating corporate goals and evaluating the effectiveness of the Company's strategies. Normalized EBITDA may not be comparable to similarly titled measures of other companies.

Debt Outstanding and Adjusted Debt Outstanding

Debt Outstanding and Adjusted Debt Outstanding are non-GAAP measures that represent the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. Beginning in 2017, Adjusted Debt Outstanding omits the outstanding principal balance of mortgage notes secured by Excluded Properties. We believe that the presentation of Debt Outstanding and Adjusted Debt Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall liquidity, financial flexibility, capital structure and leverage. Debt Outstanding and Adjusted Debt Outstanding should not be considered as alternatives to the Company's consolidated debt balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP.

Net Debt

Net Debt is a non-GAAP measure used to show the Company's Adjusted Debt Outstanding, less all cash and cash equivalents. We believe that the presentation of Net Debt provides useful information to investors because our management reviews Net Debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage.

Interest Expense, Excluding Non-Cash Amortization

Interest Expense, Excluding Non-Cash Amortization is a non-GAAP measure that represents interest expense incurred on the outstanding principal balance of our debt. This measure excludes (i) the amortization of deferred financing costs, premiums and discounts, which is included in interest expense in accordance with GAAP, and (ii)the impact of Excluded Properties and related non-recourse mortgage notes. We believe that the presentation of Interest Expense, excluding non-cash amortization, which shows the interest expense on our contractual debt obligations, provides useful information to investors to assess our overall solvency and financial flexibility. Interest Expense, excluding non-cash amortization should not be considered as an alternative to the Company's interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company's financial information prepared in accordance with GAAP.

Fixed Charge Coverage Ratio

Fixed Charge Coverage Ratio is the sum of (i) Interest Expense, excluding non-cash amortization, (ii) secured debt principal amortization and (iii) dividends attributable to preferred shares divided by Normalized EBITDA. Management believes that Fixed Charge Coverage Ratio is a useful supplemental measure of our ability to satisfy fixed financing obligations.

Net Debt to Normalized EBITDA Annualized Ratio

Net Debt to Normalized EBITDA Annualized equals Net Debt divided by the current quarter Normalized EBITDA multiplied by four. We believe that the presentation of Net Debt to Normalized EBITDA Annualized provides useful information to investors because our management reviews Net Debt to Normalized EBITDA Annualized as part of its management of our overall liquidity, financial flexibility, capital structure and leverage.

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Net Debt Leverage Ratio

Net Debt Leverage Ratio equals Net Debt divided by Gross Real Estate Investments. We believe that the presentation of Net Debt Leverage Ratio provides useful information to investors because our management reviews Net Debt Leverage Ratio as part of its management of our overall liquidity, financial flexibility, capital structure and leverage.

Unencumbered Asset Ratio

Unencumbered Asset Ratio equals unencumbered Gross Real Estate Investments divided by Gross Real Estate Investments. Management believes that Unencumbered Asset Ratio is a useful supplemental measure of our overall liquidity and leverage.

Forward-Looking Statements

Information set forth herein (including information included or incorporated by reference herein) contains “forward-looking statements” (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which reflect VEREIT’s expectations regarding future events and VEREIT’s future financial condition, results of operations and business, including its positioning and diversified portfolio, its ability to reduce risk while maintaining optionality, and to provide capital to corporations through acquisitions. The forward-looking statements involve a number of assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. Generally, the words “expects,” “anticipates,” “assumes,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, most of which are difficult to predict and many of which are beyond VEREIT’s control. If a change occurs, VEREIT’s business, financial condition, liquidity and results of operations may vary materially from those expressed in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: VEREIT’s plans, market and other expectations, objectives, intentions and other statements that are not historical facts; the developments disclosed herein; VEREIT’s ability to execute on and realize success from its business plan; VEREIT’s ability to meet its updated 2017 guidance; the unpredictability of the business plans and financial condition of VEREIT’s tenants; the impact of impairment charges in respect of certain of VEREIT’s properties or other assets; risks associated with pending government investigations and litigations related to VEREIT’s previously disclosed audit committee investigation; the inability of Cole Capital to regain its prior level of capital raise; the ability to retain or hire key personnel; and continuation or deterioration of current market conditions. Additional factors that may affect future results are contained 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, 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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VEREIT, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data) (Unaudited)

	June 30, 2017			December 31, 2016
ASSETS
Real estate investments, at cost:
Land	$	2,858,662		$	2,895,625
Buildings, fixtures and improvements	10,496,710			10,644,296
Intangible lease assets	2,000,292			2,044,521
Total real estate investments, at cost	15,355,664			15,584,442
Less: accumulated depreciation and amortization	2,623,050			2,331,643
Total real estate investments, net	12,732,614			13,252,799
Investment in unconsolidated entities	44,931			46,077
Investment in direct financing leases, net	33,892			39,455
Investment securities, at fair value	42,250			47,215
Mortgage notes receivable, net	20,722			22,764
Cash and cash equivalents	292,498			256,452
Restricted cash	40,995			45,018
Intangible assets, net	16,319			24,609
Rent and tenant receivables and other assets, net	349,013			330,705
Goodwill	1,462,585			1,462,203
Due from affiliates	8,085			21,349
Real estate assets held for sale, net	4,136			38,928
Total assets	$	15,048,040		$	15,587,574
LIABILITIES AND EQUITY
Mortgage notes payable and other debt, net	$	2,381,031		$	2,671,106
Corporate bonds, net	2,228,422			2,226,224
Convertible debt, net	978,738			973,340
Credit facility, net	497,718			496,578
Below-market lease liabilities, net	209,566			224,023
Accounts payable and accrued expenses	149,309			146,137
Deferred rent, derivative and other liabilities	70,735			68,039
Distributions payable	168,953			162,578
Due to affiliates	89			16
Total liabilities	6,684,561			6,968,041
Commitments and contingencies
Preferred stock, $0.01 par value, 100,000,000 shares authorized and 42,834,138 issued and outstanding as of each of June 30, 2017 and December 31, 2016	428			428
Common stock, $0.01 par value, 1,500,000,000 shares authorized and 974,250,202 and 974,146,650 issued and outstanding as of June 30, 2017 and December 31, 2016, respectively	9,742			9,741
Additional paid-in-capital	12,645,309			12,640,171
Accumulated other comprehensive loss	(1,928		)	(2,556		)
Accumulated deficit	(4,456,708		)	(4,200,423		)
Total stockholders’ equity	8,196,843			8,447,361
Non-controlling interests	166,636			172,172
Total equity	8,363,479			8,619,533
Total liabilities and equity	$	15,048,040		$	15,587,574

7

VEREIT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per share data) (Unaudited)

	Three Months Ended June 30,
	2017			2016
Revenues:
Rental income	$	286,291		$	311,352
Direct financing lease income	403			535
Operating expense reimbursements	21,551			26,646
Cole Capital revenue	28,685			32,486
Total revenues	336,930			371,019
Operating expenses:
Cole Capital reallowed fees and commissions	2,874			6,975
Acquisition-related	756			41
Litigation and other non-routine costs, net of insurance recoveries	14,411			2,917
Property operating	31,627			38,199
General and administrative	29,411			33,094
Depreciation and amortization	184,288			197,345
Impairments	17,769			8,825
Total operating expenses	281,136			287,396
Operating income	55,794			83,623
Other (expense) income:
Interest expense	(73,621		)	(82,468		)
Gain on extinguishment and forgiveness of debt, net	9,005			252
Other income, net	1,835			1,216
Equity in income and gain on disposition of unconsolidated entities	513			70
Gain (loss) on derivative instruments, net	592			(177		)
Total other expenses, net	(61,676		)	(81,107		)
(Loss) income before taxes and real estate dispositions	(5,882		)	2,516
Gain on disposition of real estate and held for sale assets, net	42,639			437
Income before taxes	36,757			2,953
(Provision for) benefit from income taxes	(2,571		)	280
Net income	34,186			3,233
Net income attributable to non-controlling interests	(778		)	(87		)
Net income attributable to the General Partner	$	33,408		$	3,146
Basic and diluted net income (loss) per share attributable to common stockholders	$	0.02		$	(0.02	)
Distributions declared per common share	$	0.14		$	0.14

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VEREIT, INC.

CONSOLIDATED EBITDA AND NORMALIZED EBITDA

(In thousands) (Unaudited)

	Three Months Ended June 30,
	2017			2016
Net income	$	34,186		$	3,233
Adjustments:
Interest expense	73,621			82,468
Depreciation and amortization	184,288			197,345
Provision for (benefit from) income taxes	2,571			(280		)
Proportionate share of adjustments for unconsolidated entities	1,023			554
EBITDA	$	295,689		$	283,320
Gain on disposition of real estate assets, including joint ventures, net	(42,639		)	(437		)
Impairments	17,769			8,825
Acquisition-related expenses	756			41
Litigation and other non-routine costs, net of insurance recoveries	14,411			2,917
Gain on investment securities	(65		)	—
(Gain) loss on derivative instruments, net	(592		)	177
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,248
Gain on extinguishment and forgiveness of debt, net	(9,005		)	(252		)
Net direct financing lease adjustments	464			590
Straight-line rent, net of bad debt expense related to straight-line rent	(10,870		)	(15,663		)
Program development costs write-off	—			2,377
Other amortization and non-cash charges	(57		)	(157		)
Proportionate share of adjustments for unconsolidated entities	(11		)	74
Adjustment for Excluded Properties	472			—
Normalized EBITDA	$	268,025		$	283,060

9

VEREIT, INC.

CONSOLIDATED FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(In thousands, except for share and per share data) (Unaudited)

	Three Months Ended June 30,
	2017			2016
Net income	$	34,186		$	3,233
Dividends on non-convertible preferred stock	(17,973		)	(17,973		)
Gain on real estate assets and interest in joint venture, net	(42,639		)	(437		)
Depreciation and amortization of real estate assets	179,433			190,236
Impairment of real estate	17,769			8,825
Proportionate share of adjustments for unconsolidated entities	667			290
FFO attributable to common stockholders and limited partners	$	171,443		$	184,174
Acquisition-related expenses	756			41
Litigation and other non-routine costs, net of insurance recoveries	14,411			2,917
Gain on investment securities	(65		)	—
(Gain) loss on derivative instruments, net	(592		)	177
Amortization of premiums and discounts on debt and investments, net	(1,700		)	(4,030		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,248
Net direct financing lease adjustments	464			590
Amortization and write-off of deferred financing costs	6,327			7,461
Amortization of management contracts	4,146			6,240
Deferred tax benefit	(4,318		)	(6,417		)
Gain on extinguishment and forgiveness of debt, net	(9,005		)	(252		)
Straight-line rent, net of bad debt expense related to straight-line rent	(10,870		)	(15,663		)
Equity-based compensation expense	4,448			2,779
Other amortization and non-cash charges	627			751
Proportionate share of adjustments for unconsolidated entities	48			91
Adjustment for Excluded Properties	3,045			—
AFFO attributable to common stockholders and limited partners	$	180,868		$	180,107
Weighted-average shares outstanding - basic	974,160,295			904,107,378
Limited Partner OP Units and effect of dilutive securities	23,969,333			27,144,667
Weighted-average shares outstanding - diluted	998,129,628			931,252,045
FFO attributable to common stockholders and limited partners per diluted share	$	0.17		$	0.20
AFFO attributable to common stockholders and limited partners per diluted share	$	0.18		$	0.19

10

VEREIT, INC.

FINANCIAL AND OPERATIONS STATISTICS AND RATIOS

(Dollars in thousands) (Unaudited)

	Three Months Ended
	June 30, 2017
Interest expense, Excluding Non-Cash Amortization	$	66,446
Secured debt principal amortization	4,563
Dividends attributable to preferred shares	17,973
Total fixed charges	88,982
Normalized EBITDA	268,025
Fixed Charge Coverage Ratio	3.01		x
	June 30, 2017
Adjusted Debt Outstanding	$	6,031,589
Less: cash and cash equivalents	292,498
Net Debt	5,739,091
Normalized EBITDA annualized	1,072,100
Net Debt to Normalized EBITDA Annualized Ratio	5.35		x
Net Debt	$	5,739,091
Gross Real Estate Investments	15,157,133
Net Debt Leverage Ratio	37.9		%
Unencumbered Gross Real Estate Investments	$	10,541,410
Gross Real Estate Investments	15,157,133
Unencumbered asset ratio	69.5		%

	June 30, 2017
Mortgage notes payable and other debt, net	$	2,381,031
Corporate bonds, net	2,228,422
Convertible debt, net	978,738
Credit facility, net	497,718
Total debt - as reported	6,085,909
Adjustments:
Deferred financing costs, net	48,135
Net premiums	(18,599		)
Debt Outstanding	$	6,115,445
Debt Outstanding - Excluded Properties	(83,856		)
Adjusted Debt Outstanding	6,031,589

	Three Months Ended
	March 31, 2017
Interest expense - as reported	$	(73,621	)
Less Adjustments:
Amortization of deferred financing and issuance costs	(6,399		)
Amortization of net premiums	1,797
Interest Expense, Excluding Non-Cash Amortization - Excluded Properties	(2,573		)
Interest Expense, Excluding Non-Cash Amortization	$	(66,446	)

11

VEREIT, INC.

SEGMENT REPORTING - FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(Cole Capital Segment)

(In thousands, except for share and per share data) (Unaudited)

	Three Months Ended June 30,
	2017			2016
Net income	$	4,454		$	1,066
FFO attributable to common stockholders and limited partners	4,454			1,066
Acquisition-related expenses	36			14
Amortization of management contracts	4,146			6,240
Deferred tax benefit	(4,318		)	(6,417		)
Equity-based compensation expense	1,665			854
Other amortization and non-cash charges	627			751
AFFO attributable to common stockholders and limited partners	$	6,610		$	2,508
Weighted-average shares outstanding - basic	974,160,295			904,107,378
Limited Partner OP Units and effect of dilutive securities	23,969,333			27,144,667
Weighted-average shares outstanding - diluted	998,129,628			931,252,045
FFO attributable to common stockholders and limited partners per diluted share	$	0.004		$	0.001
AFFO attributable to common stockholders and limited partners per diluted share	$	0.007		$	0.003

12

VEREIT, INC.

CONSOLIDATED ADJUSTED FUNDS FROM OPERATIONS PER DILUTED SHARE - 2017 GUIDANCE

(Unaudited)

We narrow our AFFO per diluted share guidance range from $0.70 - $0.73, as previously disclosed in our Q4 2016 earnings release, to $0.71 - $0.73. This guidance assumes dispositions and acquisitions each totaling $450 million to $600 million at an average cash cap rate of 6.5% to 7.5%, real estate operations with average occupancy of approximately 98.0% and same-store rental growth between 0.0% and 0.3%. The guidance range also assumes Cole Capital will contribute $0.02 to $0.03 of AFFO per diluted share, including 2017 capital raise of $400 million to $500 million, excluding DRIP, and Cole acquisitions of $800 million to $1.0 billion. The Company also expects to target balance sheet net debt to normalized EBITDA between 5.7x and 6.0x. The estimated net loss per basic and diluted share is not a projection and is provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.

	Low			High
Basic and diluted net loss per share attributable to common stockholders (1)	$	(0.03	)	$	(0.01	)
Gain on disposition of real estate assets, net (2)	(0.06		)	(0.06		)
Depreciation and amortization of real estate assets	0.71			0.71
Impairment of real estate (2)	0.02			0.02
FFO attributable to common stockholders and limited partners per diluted share	0.64			0.66
Adjustments (3)	0.07			0.07
AFFO attributable to common stockholders and limited partners per diluted share	$	0.71		$	0.73

_____________________________________

(1) Includes impact of dividends to be paid to preferred shareholders and excludes the effect of non-controlling interests and the impact of the extinguishment of debt. Includes the impact of the gain on sale and impairment of real estate for the six months endedJune 30, 2017.

(2) Includes actual amounts for the six months endedJune 30, 2017.

(3) Includes (i) non-routine items such as acquisition-related costs, litigation and other non-routine costs, net of insurance recoveries, gains or losses on sale of investment securities or mortgage note receivables, legal settlements and insurance recoveries not in the ordinary course of business, (ii) certain non-cash items such as impairments of intangible assets and goodwill, straight-line rental revenue, 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 and (iii) the AFFO impact of Excluded Properties and related non-recourse mortgage notes.

13

EX-99.2

Exhibit 99.2

		Q2 2017 SUPPLEMENTAL INFORMATION

VEREIT Supplemental Information

June 30, 2017

Section	Page
Company Overview	4
Financial Information
Financial Summary	6
Financial and Operations Statistics and Ratios	7
Key Balance Sheet Metrics and Capital Structure	8
Business Model	9
Consolidated Balance Sheets	10
Consolidated Statements of Operations	11
Consolidated FFO and AFFO	12
Consolidated EBITDA and Normalized EBITDA	13
Real Estate Investments
Statements of Operations	15
FFO and AFFO	16
EBITDA and Normalized EBITDA	17
Net Operating Income	18
Same Store Contract Rental Revenue	19
Debt and Preferred Equity Summary	20
Mortgage Notes Payable	22
Credit Facility and Corporate Bond Covenants	24
Acquisitions and Dispositions	25
Diversification Statistics	26
Top 10 Concentrations	27
Tenants Comprising Over 1% of Annualized Rental Income	29
Tenant Industry Diversification	30
Property Geographic Diversification	31
Lease Expirations	33
Lease Summary	37
Diversification by Property Type	39
Unconsolidated Joint Venture Investment Summary	44
Cole Capital
Statements of Operations	46
FFO and AFFO	47
EBITDA and Normalized EBITDA	48
Net G&A	49
Program Development Costs	50
Cole REITs and Other Real Estate Programs	51
Definitions	58

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

		Q2 2017 SUPPLEMENTAL INFORMATION

About the Data

This data and other information described herein are as of and for the three months ended June 30, 2017, unless otherwise indicated. Future performance may not be consistent with past performance and is subject to change and inherent risks and uncertainties. This information should be read in conjunction with the financial statements and the Management's Discussion and Analysis of Financial Condition and Results of Operations sections contained in VEREIT, Inc.'s (the "Company", "VEREIT", "us", "our" and "we") Annual Report on Form 10-K for the year ended December 31, 2016 and Quarterly Reports on Form 10-Q for the three months ended June 30, 2017, March 31, 2017, September 30, 2016 and June 30, 2016. Effective January 1, 2017, the Company determined certain non-GAAP measures and operating metrics, which include portfolio metrics, should exclude the impact of properties owned by the Company for the month beginning with the date that (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 and ending with the disposition date, to better reflect the ongoing operations of the Company. The Company did not update data presented for periods prior to March 31, 2017, and the three months then ended, as the impact on non-GAAP measures, including AFFO and Normalized EBITDA, and operating metrics was immaterial. See the definitions section for a description of the Excluded Properties.

Forward-Looking Statements

Information set forth herein (including information included or incorporated by reference herein) contains “forward-looking statements” (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), which reflect VEREIT’s expectations regarding future events and VEREIT's future financial condition, results of operations and business. The forward-looking statements involve a number of assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. Generally, the words “expects,” “anticipates,”“assumes,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, most of which are difficult to predict and many of which are beyond VEREIT’s control. If a change occurs, VEREIT’s business, financial condition, liquidity and results of operations may vary materially from those expressed in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: VEREIT’s plans, market and other expectations, objectives, intentions and other statements that are not historical facts; the developments disclosed herein; VEREIT’s ability to execute on and realize success from its business plan; VEREIT’s ability to meet its 2017 guidance; the unpredictability of the business plans and financial condition of VEREIT’s tenants; the impact of impairment charges in respect of certain of VEREIT’s properties or other assets; risks associated with pending government investigations and litigations related to VEREIT's previously disclosed audit committee investigation; the inability of Cole Capital to regain its prior level of capital raise; the ability to retain or hire key personnel; and continuation or deterioration of current market conditions. Additional factors that may affect future results are contained 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, whether as a result of changes in underlying assumptions or factors, new information, future events or otherwise, except as required by law.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

		Q2 2017 SUPPLEMENTAL INFORMATION

Company Overview

(unaudited)

VEREIT is a real estate company incorporated in Maryland on December 2, 2010, which has elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes. On September 6, 2011, the Company completed its initial public offering.

VEREIT is a full service real estate operating company that operates through two business segments, its real estate investment ("REI") segment and its investment management segment, Cole Capital® ("Cole Capital"). Through its REI segment, the Company owns and actively manages a diversified portfolio of retail, restaurant, office and industrial real estate properties primarily subject to long-term net leases with creditworthy tenants. The Company targets 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. At June 30, 2017, approximately 40.7% of the Company's Annualized Rental Income was earned from Investment-Grade Tenants, Economic Occupancy Rate was 98.6% and the Weighted Average Remaining Lease Term was 9.5 years. Cole Capital is contractually responsible for raising capital for, managing the affairs of and identifying and making acquisitions and investments on behalf of non-listed REITs (the "Cole REITs") and other real estate programs sponsored by Cole Capital on a day-to-day basis. The Company receives compensation and reimbursement for services relating to the Cole REITs and other real estate programs' offerings and the investment, management, financing and disposition of their respective assets, as applicable. Cole Capital allows the Company to generate earnings without the corresponding need to invest capital in that business or incur balance sheet debt in order to fund or expand operations. Cole Capital also develops new REIT offerings and coordinates receipt of regulatory approvals from the SEC, the Financial Industry Regulatory Authority, Inc. and various blue sky jurisdictions for such offerings. At the appropriate time, Cole Capital recommends to each of the Cole REIT's respective board of directors an approach for providing investors with liquidity.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 4

		Q2 2017 SUPPLEMENTAL INFORMATION

Company Overview (cont.)

Senior Management	Board of Directors
Glenn J. Rufrano, Chief Executive Officer	Hugh R. Frater, Non-Executive Chairman
Michael J. Bartolotta, Executive Vice President and Chief Financial Officer	David B. Henry, Independent Director
Lauren Goldberg, Executive Vice President, General Counsel and Secretary	Mary Hogan Preusse, Independent Director
Paul H. McDowell, Executive Vice President and Chief Operating Officer	Richard J. Lieb, Independent Director
William C. Miller, Executive Vice President, Investment Management	Mark S. Ordan, Independent Director
Thomas W. Roberts, Executive Vice President and Chief Investment Officer	Eugene A. Pinover, Independent Director
Gavin B. Brandon, Senior Vice President and Chief Accounting Officer	Julie G. Richardson, Independent Director
	Glenn J. Rufrano, Chief Executive Officer

Corporate Offices and Contact Information

2325 E. Camelback Road, Suite 1100	5 Bryant Park, 23rd Floor
Phoenix, AZ 85016	New York, NY 10018
800-606-3610	212-413-9100
www.VEREIT.com

Trading Symbols: VER, VER PRF

Stock Exchange Listing: New York Stock Exchange

Transfer Agent

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

800-736-3001

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 5

		Q2 2017 SUPPLEMENTAL INFORMATION

Quarterly Financial Summary

(unaudited, dollars in thousands, except share and per share amounts)

	Q2 2017			Q1 2017			Q4 2016			Q3 2016			Q2 2016
Consolidated Financial Results
Revenue	$	336,930		$	348,029		$	351,869		$	362,915		$	371,019
Net income (loss)	$	34,186		$	14,790		$	(118,223	)	$	30,246		$	3,233
Basic and diluted net income (loss) per share attributable to common stockholders and limited partners	$	0.02		$	(0.00	)	$	(0.14	)	$	0.01		$	(0.02	)
Normalized EBITDA	$	268,025		$	273,345		$	271,368		$	285,906		$	283,060
FFO attributable to common stockholders and limited partners	$	171,443		$	170,065		$	53,541		$	179,472		$	184,174
FFO attributable to common stockholders and limited partners per diluted share	$	0.172		$	0.170		$	0.054		$	0.185		$	0.198
AFFO attributable to common stockholders and limited partners	$	180,868		$	187,321		$	170,567		$	198,108		$	180,107
AFFO attributable to common stockholders and limited partners per diluted share	$	0.181		$	0.188		$	0.171		$	0.205		$	0.193
Dividends declared per common share	$	0.1375		$	0.1375		$	0.1375		$	0.1375		$	0.1375
Weighted-average shares outstanding - diluted	998,129,628			998,251,749			998,001,219			968,686,543			931,252,045
Real Estate Investments
Revenue	$	308,245		$	320,898		$	327,281		$	331,846		$	338,533
Net income	$	29,732		$	12,780		$	13,988		$	30,006		$	2,167
Normalized EBITDA	$	257,337		$	265,411		$	268,946		$	277,593		$	274,683
FFO attributable to common stockholders and limited partners	$	166,989		$	168,055		$	185,752		$	179,232		$	183,108
FFO attributable to common stockholders and limited partners per diluted share	$	0.167		$	0.168		$	0.186		$	0.185		$	0.197
AFFO attributable to common stockholders and limited partners	$	174,258		$	177,437		$	179,804		$	182,371		$	177,599
AFFO attributable to common stockholders and limited partners per diluted share	$	0.175		$	0.178		$	0.180		$	0.188		$	0.191
Operating Properties	4,105			4,105			4,142			4,213			4,291
Rentable Square Feet (in thousands)	91,094			92,950			93,257			96,885			98,229
Economic Occupancy Rate	98.6		%	98.4		%	98.3		%	98.0		%	97.7		%
Weighted Average Remaining Lease Term (years)	9.5			9.6			9.9			10.0			10.2
Investment-Grade Tenants(1)	40.7		%	41.6		%	41.2		%	41.5		%	42.7		%
Cole Capital
Revenue	$	28,685		$	27,131		$	24,588		$	31,069		$	32,486
Net income (loss)	$	4,454		$	2,010		$	(132,211	)	$	240		$	1,066
Normalized EBITDA	$	10,688		$	7,934		$	2,422		$	8,313		$	8,377
FFO attributable to common stockholders and limited partners	$	4,454		$	2,010		$	(132,211	)	$	240		$	1,066
FFO attributable to common stockholders and limited partners per diluted share	$	0.004		$	0.002		$	(0.132	)	$	0.000		$	0.001
AFFO attributable to common stockholders and limited partners	$	6,610		$	9,884		$	(9,237	)	$	15,737		$	2,508
AFFO attributable to common stockholders and limited partners per diluted share	$	0.007		$	0.010		$	(0.009	)	$	0.016		$	0.003
Capital raised on behalf of Cole REITs, excluding DRIP	$	77,953		$	66,718		$	67,512		$	136,381		$	138,655
Purchase price of property acquisitions on behalf of Cole REITs	$	276,701		$	216,187		$	173,086		$	173,869		$	211,178
Assets Under Management	$	7,712,905		$	7,481,884		$	7,265,673		$	7,131,400		$	7,005,695

___________________________________

(1) The weighted average credit rating of our Investment-Grade Tenants wasBBB+as of June 30, 2017.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 6

		Q2 2017 SUPPLEMENTAL INFORMATION

Financial and Operations Statistics and Ratios

(unaudited, dollars in thousands)

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Interest Coverage Ratio
Interest Expense, excluding non-cash amortization (1)	$	66,446		$	68,123		$	70,830		$	76,511		$	78,998
Normalized EBITDA	268,025			273,345			271,368			285,906			283,060
Interest Coverage Ratio	4.03x			4.01x			3.83x			3.74x			3.58x
Fixed Charge Coverage Ratio
Interest Expense, excluding non-cash amortization (1)	$	66,446		$	68,123		$	70,830		$	76,511		$	78,998
Secured debt principal amortization	4,563			8,993			6,076			5,734			5,168
Dividends attributable to preferred shares	17,973			17,973			17,973			17,973			17,973
Total fixed charges	88,982			95,089			94,879			100,218			102,139
Normalized EBITDA	268,025			273,345			271,368			285,906			283,060
Fixed Charge Coverage Ratio	3.01		x	2.87		x	2.86		x	2.85		x	2.77		x
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Net Debt Ratios
Adjusted Debt Outstanding (2)	$	6,031,589		$	6,277,388		$	6,400,896		$	6,586,839		$	8,514,700
Less: cash and cash equivalents	292,498			285,586			256,452			116,618			1,029,620
Net Debt	5,739,091			5,991,802			6,144,444			6,470,221			7,485,080
Normalized EBITDA annualized	1,072,100			1,093,380			1,085,472			1,143,624			1,132,240
Net Debt to Normalized EBITDA annualized ratio	5.35		x	5.48		x	5.66		x	5.66		x	6.61		x
Net Debt	$	5,739,091		$	5,991,802		$	6,144,444		$	6,470,221		$	7,485,080
Gross Real Estate Investments	15,157,133			15,367,137			15,507,082			15,815,333			16,085,149
Net Debt Leverage Ratio	37.9		%	39.0		%	39.6		%	40.9		%	46.5		%
Unencumbered Assets/Real Estate Assets
Unencumbered Gross Real Estate Investments	$	10,541,410		$	10,319,871		$	10,292,186		$	10,394,146		$	10,585,494
Gross Real Estate Investments	15,157,133			15,367,137			15,507,082			15,815,333			16,085,149
Unencumbered Asset Ratio	69.5		%	67.2		%	66.4		%	65.7		%	65.8		%

___________________________________

(1) Refer to the Consolidated Statements of Operations section for interest expense calculated in accordance with GAAP.

(2) Refer to the Consolidated Balance Sheets section for total debt calculated in accordance with GAAP.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 7

	Q2 2017 SUPPLEMENTAL INFORMATION

Key Balance Sheet Metrics and Capital Structure

(unaudited, dollars and shares in thousands, except per share amounts)

Common equity	53.3%
Secured debt	15.0%
Corporate bonds	14.8%
Preferred equity	7.0%
Convertible notes	6.6%
Unsecured term loan	3.3%

Fixed vs. Variable Rate Debt

Fixed	89.3	%
Swapped to Fixed	10.5	%
Variable	0.2	%

VEREIT Capitalization Table
	Wtd. Avg. Maturity (Years)	Rate (1)		June 30, 2017
Diluted shares outstanding				1,000,781
Stock price				$	8.14
Implied Equity Market Capitalization				$	8,146,357
Series F Perpetual Preferred (2)		6.70	%	$	1,070,853
Mortgage notes payable (3)	4.4	4.88	%	$	2,267,444
Secured term loan	0.5	5.81	%	14,151
Total secured debt	4.4	4.88	%	$	2,281,595
Unsecured credit facility (swapped to fixed)	1.0	3.25	%	$	500,000
2018 convertible notes	1.1	3.00	%	597,500
2019 corporate bonds	1.6	3.00	%	750,000
2020 convertible notes	3.5	3.75	%	402,500
2021 corporate bonds	3.9	4.13	%	400,000
2024 corporate bonds	6.6	4.60	%	500,000
2026 corporate bonds	8.9	4.88	%	600,000
Total unsecured debt	3.7	3.75	%	$	3,750,000
Total Adjusted Debt Outstanding	4.0	4.18	%	$	6,031,595
Total Capitalization				$	15,248,805
Less: Cash and cash equivalents				292,498
Enterprise Value				$	14,956,307
Net Debt/Enterprise Value				38.4		%
Net Debt/Normalized EBITDA Annualized				5.35		x
Net Debt + Preferred/Normalized EBITDA Annualized				6.35		x
Fixed Charge Coverage Ratio				3.01		x
Liquidity (4)				$	2,592,498

___________________________________

(1)Weighted average interest rate for variable rate debt represents the interest rate in effect as of June 30, 2017.

(2)Balance represents 42.8 million shares outstanding at June 30, 2017 multiplied by the liquidation preference of $25 per share.

(3)Omits three mortgage notes payable, each secured by an Excluded Property, with aggregate Debt Outstanding of $83.9 million and a weighted average interest rate of 9.01%.

(4)Liquidity represents cash and cash equivalents of $292.5 million and $2.3 billion available capacity on our revolving credit facility.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 8

		Q2 2017 SUPPLEMENTAL INFORMATION

Business Model

(unaudited)

	$15.0 Billion
	Book Value of Total Assets
	Retail (1)	Restaurants (1)
A full-service real estate operating company with investment management capability.	2,110 Properties	1,748 Properties
	Industrial & Distribution (1)	Office (1)
	146 Properties	91 Properties
	$7.7 Billion
	Assets Under Management
	Open Offerings
Cole Capital is a combination of Cole Capital distribution and Cole Capital investment management. Cole Capital investment management is a shared resource model with VEREIT.	CCPT V(2)l     Income NAV(2)l     CCIT III(2)
	Closed Offerings
	CCIT II(2)l     CCPT IV(2)l     TIC & DST(2)

___________________________________

(1) Omits three Excluded Properties, and 10 properties that consist of billboards, land and parking lots.

(2) Defined in the "Program Summary" of the Cole REITs and Other Real Estate Programs section.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 9

		Q2 2017 SUPPLEMENTAL INFORMATION

Consolidated Balance Sheets

(unaudited, in thousands)

	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Assets
Real estate investments, at cost:
Land	$	2,858,662		$	2,868,447		$	2,895,625		$	2,946,105		$	2,992,848
Buildings, fixtures and improvements	10,496,710			10,630,598			10,644,296			10,800,316			10,956,605
Intangible lease assets	2,000,292			2,017,739			2,044,521			2,073,076			2,102,606
Total real estate investments, at cost	15,355,664			15,516,784			15,584,442			15,819,497			16,052,059
Less: accumulated depreciation and amortization	2,623,050			2,494,811			2,331,643			2,188,998			2,029,121
Total real estate investments, net	12,732,614			13,021,973			13,252,799			13,630,499			14,022,938
Investment in unconsolidated entities	44,931			45,145			46,077			24,711			22,435
Investment in direct financing leases, net	33,892			34,909			39,455			40,785			43,155
Investment securities, at fair value	42,250			42,630			47,215			48,098			48,347
Mortgage notes receivable, net	20,722			22,545			22,764			23,014			23,297
Cash and cash equivalents	292,498			285,586			256,452			116,618			1,029,620
Restricted cash	40,995			46,712			45,018			61,828			60,837
Intangible assets, net	16,319			20,464			24,609			30,849			37,088
Rent and tenant receivables and other assets, net	349,013			346,898			330,705			339,529			333,124
Goodwill	1,462,585			1,462,585			1,462,203			1,602,610			1,620,233
Due from affiliates	8,085			15,007			21,349			20,883			8,043
Real estate assets held for sale, net	4,136			12,081			38,928			118,396			159,394
Total assets	$	15,048,040		$	15,356,535		$	15,587,574		$	16,057,820		$	17,408,511
Liabilities and Equity
Mortgage notes payable and other debt, net	$	2,381,031		$	2,586,917		$	2,671,106		$	2,861,210		$	2,938,072
Corporate bonds, net	2,228,422			2,227,307			2,226,224			2,225,157			3,522,297
Convertible debt, net	978,738			976,031			973,340			970,691			968,059
Credit facility, net	497,718			497,148			496,578			496,008			1,045,872
Below-market lease liabilities, net	209,566			217,721			224,023			229,340			237,403
Accounts payable and accrued expenses	149,309			135,817			146,137			139,150			163,122
Deferred rent, derivative and other liabilities	70,735			68,196			68,039			89,154			84,486
Distributions payable	168,953			165,765			162,578			159,415			146,695
Due to affiliates	89			7			16			—			—
Total liabilities	6,684,561			6,874,909			6,968,041			7,170,125			9,106,006
Series F preferred stock	428			428			428			428			428
Common stock	9,742			9,742			9,741			9,742			9,048
Additional paid-in capital	12,645,309			12,642,099			12,640,171			12,637,049			11,934,864
Accumulated other comprehensive loss	(1,928		)	(1,795		)	(2,556		)	(4,687		)	(12,297		)
Accumulated deficit	(4,456,708		)	(4,338,029		)	(4,200,423		)	(3,933,092		)	(3,810,341		)
Total stockholders' equity	8,196,843			8,312,445			8,447,361			8,709,440			8,121,702
Non-controlling interests	166,636			169,181			172,172			178,255			180,803
Total equity	8,363,479			8,481,626			8,619,533			8,887,695			8,302,505
Total liabilities and equity	$	15,048,040		$	15,356,535		$	15,587,574		$	16,057,820		$	17,408,511

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 10

		Q2 2017 SUPPLEMENTAL INFORMATION

Consolidated Statements of Operations

(unaudited, in thousands, except per share data)

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Revenues:
Rental income	$	286,291		$	293,739		$	299,231		$	303,383		$	311,352
Direct financing lease income	403			433			457			494			535
Operating expense reimbursements	21,551			26,726			27,593			27,969			26,646
Cole Capital revenue	28,685			27,131			24,588			31,069			32,486
Total revenues	336,930			348,029			351,869			362,915			371,019
Operating expenses:
Cole Capital reallowed fees and commissions	2,874			2,660			2,234			5,897			6,975
Acquisition-related	756			617			948			90			41
Litigation, merger and other non-routine costs, net of insurance recoveries	14,411			12,875			1,512			4,630			2,917
Property operating	31,627			34,016			36,596			34,820			38,199
General and administrative	29,411			29,148			44,353			29,761			33,094
Depreciation and amortization	184,288			183,152			191,360			195,173			197,345
Impairments	17,769			6,725			127,537			6,872			8,825
Total operating expenses	281,136			269,193			404,540			277,243			287,396
Operating income (loss)	55,794			78,836			(52,671		)	85,672			83,623
Other (expense) income:
Interest expense	(73,621		)	(73,743		)	(74,613		)	(79,869		)	(82,468		)
Gain (loss) on extinguishment and forgiveness of debt, net	9,005			(70		)	980			(2,003		)	252
Other income, net	1,835			798			2,013			1,744			1,216
Equity in income (loss) of unconsolidated entities	513			(82		)	(903		)	212			70
Gain (loss) on derivative instruments, net	592			824			2,095			(2,023		)	(177		)
Total other expenses, net	(61,676		)	(72,273		)	(70,428		)	(81,939		)	(81,107		)
(Loss) income before taxes and real estate dispositions	(5,882		)	6,563			(123,099		)	3,733			2,516
Gain (loss) on disposition of real estate, net	42,639			12,481			(199		)	28,111			437
Income (loss) before taxes	36,757			19,044			(123,298		)	31,844			2,953
(Provision for) benefit from income taxes	(2,571		)	(4,254		)	5,075			(1,598		)	280
Net income (loss)	34,186			14,790			(118,223		)	30,246			3,233
Net (income) loss attributable to non-controlling interests	(778		)	(352		)	2,805			(751		)	(87		)
Net income (loss) attributable to the General Partner	$	33,408		$	14,438		$	(115,418	)	$	29,495		$	3,146
Basic and diluted net income (loss) per share attributable to common stockholders and limited partners	$	0.02		$	(0.00	)	$	(0.14	)	$	0.01		$	(0.02	)

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 11

		Q2 2017 SUPPLEMENTAL INFORMATION

Consolidated FFO and AFFO

(unaudited, in thousands, except share and per share data)

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Net income (loss)	$	34,186		$	14,790		$	(118,223	)	$	30,246		$	3,233
Dividends on non-convertible preferred stock	(17,973		)	(17,973		)	(17,973		)	(17,973		)	(17,973		)
(Gain) loss on disposition of real estate assets, net	(42,639		)	(12,481		)	199			(28,111		)	(437		)
Depreciation and amortization of real estate assets	179,433			178,295			182,190			187,898			190,236
Impairment of real estate	17,769			6,725			6,606			6,872			8,825
Proportionate share of adjustments for unconsolidated entities	667			709			742			540			290
FFO attributable to common stockholders and limited partners	$	171,443		$	170,065		$	53,541		$	179,472		$	184,174
Acquisition-related expenses	756			617			948			90			41
Litigation, merger and other non-routine costs, net of insurance recoveries	14,411			12,875			1,512			4,630			2,917
Impairment of intangible assets	—			—			120,931			—			—
Gain on investment securities	(65		)	—			—			—			—
(Gain) loss on derivative instruments, net	(592		)	(824		)	(2,095		)	2,023			177
Amortization of premiums and discounts on debt and investments, net	(1,700		)	(847		)	(2,684		)	(3,553		)	(4,030		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,305			1,220			1,632			1,248
Net direct financing lease adjustments	464			621			544			571			590
Amortization and write-off of deferred financing costs	6,327			6,347			6,417			6,878			7,461
Amortization of management contracts	4,146			4,146			6,240			6,240			6,240
Deferred tax (benefit) expense (1)	(4,318		)	1,649			(9,203		)	6,941			(6,417		)
(Gain) loss on extinguishment and forgiveness of debt, net	(9,005		)	70			(980		)	2,003			(252		)
Straight-line rent, net of bad debt expense related to straight-line rent	(10,870		)	(12,797		)	(13,163		)	(12,319		)	(15,663		)
Equity-based compensation expense	4,448			3,111			3,631			2,588			2,779
Other amortization and non-cash charges	627			634			2,873			929			751
Proportionate share of adjustments for unconsolidated entities	48			55			835			(17		)	91
Adjustment for Excluded Properties	3,045			294			—			—			—
AFFO attributable to common stockholders and limited partners	$	180,868		$	187,321		$	170,567		$	198,108		$	180,107
Weighted-average shares outstanding - basic	974,160,295			973,849,610			973,681,227			943,480,170			904,107,378
Limited Partner OP Units and effect of dilutive securities (2)	23,969,333			24,402,139			24,319,992			25,206,373			27,144,667
Weighted-average shares outstanding - diluted (3)	998,129,628			998,251,749			998,001,219			968,686,543			931,252,045
FFO attributable to common stockholders and limited partners per diluted share (4)	$	0.172		$	0.170		$	0.054		$	0.185		$	0.198
AFFO attributable to common stockholders and limited partners per diluted share (4)	$	0.181		$	0.188		$	0.171		$	0.205		$	0.193

___________________________________

(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.

(2) Dilutive securities include unvested restricted shares of common stock and unvested restricted stock units.

(3) Weighted-average shares for all periods presented exclude the effect of the convertible debt as the Company would expect to settle the debt in cash and any shares underlying restricted stock units that are contingently issuable which are not issuable based on the Company’s level of achievement of certain performance targets through the respective reporting period.

(4) Refer to the Consolidated Statements of Operations section for basic and diluted net loss per share attributable to common stockholders.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 12

		Q2 2017 SUPPLEMENTAL INFORMATION

Consolidated EBITDA and Normalized EBITDA

(unaudited, in thousands)

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Net income (loss)	$	34,186		$	14,790		$	(118,223	)	$	30,246		$	3,233
Adjustments:
Interest expense	73,621			73,743			74,613			79,869			82,468
Depreciation and amortization	184,288			183,152			191,360			195,173			197,345
Provision for (benefit from) income taxes	2,571			4,254			(5,075		)	1,598			(280		)
Proportionate share of adjustments for unconsolidated entities	1,023			1,246			1,299			959			554
EBITDA	$	295,689		$	277,185		$	143,974		$	307,845		$	283,320
(Gain) loss on disposition of real estate assets, net	(42,639		)	(12,481		)	199			(28,111		)	(437		)
Impairments	17,769			6,725			127,537			6,872			8,825
Acquisition-related expenses	756			617			948			90			41
Litigation, merger and other non-routine costs, net of insurance recoveries	14,411			12,875			1,512			4,630			2,917
Gain on investment securities	(65		)	—			—			—			—
(Gain) loss on derivative instruments, net	(592		)	(824		)	(2,095		)	2,023			177
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,305			1,220			1,632			1,248
(Gain) loss on extinguishment and forgiveness of debt, net	(9,005		)	70			(980		)	2,003			(252		)
Net direct financing lease adjustments	464			621			544			571			590
Straight-line rent, net of bad debt expense related to straight-line rent	(10,870		)	(12,797		)	(13,163		)	(12,319		)	(15,663		)
Program development costs write-off	—			—			11,054			845			2,377
Other amortization and non-cash charges	(57		)	861			(107		)	(139		)	(157		)
Proportionate share of adjustments for unconsolidated entities	(11		)	(48		)	725			(36		)	74
Adjustment for Excluded Properties	472			(764		)	—			—			—
Normalized EBITDA	$	268,025		$	273,345		$	271,368		$	285,906		$	283,060

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 13

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 14

	Q2 2017 SUPPLEMENTAL INFORMATION

Statements of Operations - REI Segment

(unaudited, in thousands)

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Revenues:
Rental income	$	286,291		$	293,739		$	299,231		$	303,383		$	311,352
Direct financing lease income	403			433			457			494			535
Operating expense reimbursements	21,551			26,726			27,593			27,969			26,646
Total real estate investment revenues	308,245			320,898			327,281			331,846			338,533
Operating expenses:
Acquisition-related	720			617			923			90			27
Litigation, merger and other non-routine costs, net of insurance recoveries	14,411			12,875			1,512			4,630			2,917
Property operating	31,627			34,016			36,596			34,820			38,199
General and administrative	14,294			12,560			13,267			12,069			13,701
Depreciation and amortization	179,433			178,297			182,190			187,897			190,236
Impairment of real estate	17,769			6,725			6,606			6,872			8,825
Total operating expenses	258,254			245,090			241,094			246,378			253,905
Operating income	49,991			75,808			86,187			85,468			84,628
Other (expense) income:
Interest expense	(73,621		)	(73,743		)	(74,613		)	(79,869		)	(82,468		)
Gain (loss) on extinguishment and forgiveness of debt	9,005			(70		)	980			(2,003		)	252
Other income, net	1,759			670			1,856			1,649			1,216
Equity in income (loss) of unconsolidated entities	513			(82		)	(903		)	212			70
Gain (loss) on derivative instruments, net	592			824			2,095			(2,023		)	(177		)
Total other expenses, net	(61,752		)	(72,401		)	(70,585		)	(82,034		)	(81,107		)
(Loss) income before taxes and real estate dispositions	(11,761		)	3,407			15,602			3,434			3,521
Gain (loss) on disposition of real estate, net	42,639			12,481			(199		)	28,111			437
Income before taxes	30,878			15,888			15,403			31,545			3,958
Provision for income taxes	(1,146		)	(3,108		)	(1,415		)	(1,539		)	(1,791		)
Net income	$	29,732		$	12,780		$	13,988		$	30,006		$	2,167

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 15

	Q2 2017 SUPPLEMENTAL INFORMATION

FFO and AFFO - REI Segment

(unaudited, in thousands, except share and per share data)

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Net income	$	29,732		$	12,780		$	13,988		$	30,006		$	2,167
Dividends on non-convertible preferred stock	(17,973		)	(17,973		)	(17,973		)	(17,973		)	(17,973		)
(Gain) loss on disposition of real estate assets, net	(42,639		)	(12,481		)	199			(28,111		)	(437		)
Depreciation and amortization of real estate assets	179,433			178,295			182,190			187,898			190,236
Impairment of real estate	17,769			6,725			6,606			6,872			8,825
Proportionate share of adjustments for unconsolidated entities	667			709			742			540			290
FFO attributable to common stockholders and limited partners	$	166,989		$	168,055		$	185,752		$	179,232		$	183,108
Acquisition-related expenses	720			617			923			90			27
Litigation and other non-routine costs, net of insurance recoveries	14,411			12,875			1,512			4,630			2,917
Gain on investment securities	(65		)	—			—			—			—
(Gain) loss on derivative instruments, net	(592		)	(824		)	(2,095		)	2,023			177
Amortization of premiums and discounts on debt and investments, net	(1,700		)	(847		)	(2,684		)	(3,553		)	(4,030		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,305			1,220			1,632			1,248
Net direct financing lease adjustments	464			621			544			571			590
Amortization and write-off of deferred financing costs	6,327			6,347			6,417			6,878			7,461
(Gain) loss on extinguishment and forgiveness of debt, net	(9,005		)	70			(980		)	2,003			(252		)
Straight-line rent, net of bad debt expense related to straight-line rent	(10,870		)	(12,797		)	(13,163		)	(12,319		)	(15,663		)
Equity-based compensation expense	2,783			1,664			1,523			1,201			1,925
Other amortization and non-cash charges	—			2			—			—			—
Proportionate share of adjustments for unconsolidated entities	48			55			835			(17		)	91
Adjustment for Excluded Properties	3,045			294			—			—			—
AFFO attributable to common stockholders and limited partners	$	174,258		$	177,437		$	179,804		$	182,371		$	177,599
Weighted-average shares outstanding - basic	974,160,295			973,849,610			973,681,227			943,480,170			904,107,378
Limited Partner OP Units and effect of dilutive securities (1)	23,969,333			24,402,139			24,319,992			25,206,373			27,144,667
Weighted-average shares outstanding - diluted (2)	998,129,628			998,251,749			998,001,219			968,686,543			931,252,045
FFO attributable to common stockholders and limited partners per diluted share	$	0.167		$	0.168		$	0.186		$	0.185		$	0.197
AFFO attributable to common stockholders and limited partners per diluted share	$	0.175		$	0.178		$	0.180		$	0.188		$	0.191

___________________________________

(1) Dilutive securities include unvested restricted shares of common stock and unvested restricted stock units.

(2) Weighted-average shares for all periods presented exclude the effect of the convertible debt as the Company would expect to settle the debt in cash and any shares underlying restricted stock units that are contingently issuable which are not issuable based on the Company’s level of achievement of certain performance targets through the respective reporting period.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 16

	Q2 2017 SUPPLEMENTAL INFORMATION

EBITDA and Normalized EBITDA - REI Segment

(unaudited, in thousands)

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Net income	$	29,732		$	12,780		$	13,988		$	30,006		$	2,167
Adjustments:
Interest expense	73,621			73,743			74,613			79,869			82,468
Depreciation and amortization	179,433			178,297			182,190			187,897			190,236
Provision for income taxes	1,146			3,108			1,415			1,539			1,791
Proportionate share of adjustments for unconsolidated entities	1,023			1,246			1,299			959			554
EBITDA	$	284,955		$	269,174		$	273,505		$	300,270		$	277,216
(Gain) loss on disposition of real estate assets, net	(42,639		)	(12,481		)	199			(28,111		)	(437		)
Impairment of real estate assets	17,769			6,725			6,606			6,872			8,825
Acquisition-related expenses	720			617			923			90			27
Litigation, merger and other non-routine costs, net of insurance recoveries	14,411			12,875			1,512			4,630			2,917
Gain on investment securities	(65		)	—			—			—			—
(Gain) loss on derivative instruments, net	(592		)	(824		)	(2,095		)	2,023			177
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,305			1,220			1,632			1,248
(Gain) loss on extinguishment and forgiveness of debt, net	(9,005		)	70			(980		)	2,003			(252		)
Net direct financing lease adjustments	464			621			544			571			590
Straight-line rent, net of bad debt expense related to straight-line rent	(10,870		)	(12,797		)	(13,163		)	(12,319		)	(15,663		)
Other amortization and non-cash charges	25			938			(50		)	(32		)	(39		)
Proportionate share of adjustments for unconsolidated entities	(11		)	(48		)	725			(36		)	74
Adjustment for Excluded Properties	472			(764		)	—			—			—
Normalized EBITDA	$	257,337		$	265,411		$	268,946		$	277,593		$	274,683

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 17

	Q2 2017 SUPPLEMENTAL INFORMATION

Net Operating Income - REI Segment

(unaudited, dollars in thousands)

REI Segment NOI and Cash NOI

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Rental income - as reported (1)	$	286,291		$	293,739		$	299,231		$	303,383		$	311,352
Direct financing lease income - as reported	403			433			457			494			535
Operating expense reimbursements - as reported	21,551			26,726			27,593			27,969			26,646
Property operating expense - as reported	(31,627		)	(34,016		)	(36,596		)	(34,820		)	(38,199		)
NOI	276,618			286,882			290,685			297,026			300,334
Adjustments:
Straight-line rent, net of bad debt expense related to straight-line rent	(10,870		)	(12,797		)	(13,163		)	(12,319		)	(15,663		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,305			1,220			1,632			1,248
Net direct financing lease adjustments	464			621			544			571			590
Adjustment for Excluded Properties	447			(780		)	—			—			—
Cash NOI	$	268,362		$	275,231		$	279,286		$	286,910		$	286,509

___________________________________

(1) Rental income includes percentage rent of $1.2 million, $2.0 million, $1.3 million, $1.2 million and $1.7 million for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016, respectively.

Normalized Cash NOI

	Three Months Ended
	June 30, 2017
Cash NOI	$	268,362
Adjustments for intra-quarter acquisitions and dispositions (1)	(1,638		)
Normalized Cash NOI	$	266,724

___________________________________

(1) For properties acquired during the three months ended June 30, 2017, the adjustment eliminates Cash NOI for such properties and replaces Cash NOI for the partial period with an amount estimated to be equivalent to Cash NOI for the full period. For properties disposed of during the three months ended June 30, 2017, the adjustment eliminates Cash NOI for the period.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 18

	Q2 2017 SUPPLEMENTAL INFORMATION

Same Store Contract Rental Revenue

(unaudited, dollars in thousands)

The Company reviews the stabilized operating results from properties that we refer to as "same store." In determining the same store property pool, we include Operating Properties that were owned for the entirety of both the current and prior reporting periods, except for properties that during the current or prior year were under development or redevelopment. The following tables show the Company's same store portfolio statistics, which included 4,038⁽¹⁾ properties, with 88.9 million aggregate square feet, acquired prior to April 1, 2016 and owned through June 30, 2017:

	Three Months Ended June 30,						Increase/(Decrease)
	2017			2016			$ Change			% Change
Contract Rental Revenue	$	267,670		$	267,717		$	(47	)	—	%
Economic Occupancy Rate	98.5		%	99.1		%	N/A			N/A

		Contract Rental Revenue
	Number of	Three Months Ended June 30,				Increase/(Decrease)
	Properties	2017		2016		$ Change			% Change
Retail	2,070	$	110,081	$	109,732	$	349		0.3	%
Restaurant	1,726	59,733		59,618		115			0.2	%
Industrial and distribution	141	41,790		41,582		208			0.5	%
Office	91	55,932		56,654		(722		)	(1.3	)%	(3)
Other (2)	10	134		131		3			2.3	%
Total	4,038	$	267,670	$	267,717	$	(47	)	—	%	(4)

___________________________________

(1) Development and expansion properties are included in the same store population if the placed in service date was prior to April 1, 2016.

(2) Other properties include billboards, land and parking lots.

(3) Two office leases were renewed in a prior period and provided for abated rent during the three months ended June 30, 2017. Excluding the impact of the rent abatements, office same store Contract Rental Revenue increased 0.4% during the three months ended June 30, 2017, as compared to the same quarter in 2016.

(4) Excluding the impact of the office rent abatements, total same store Contract Rental Revenue increased 0.3% during the three months ended June 30, 2017, as compared to the same quarter in 2016.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 19

	Q2 2017 SUPPLEMENTAL INFORMATION

Debt Outstanding and Preferred Equity Summary

(unaudited, dollars in thousands)

Principal Payments Due	Total		Remaining 2017		2018		2019		2020		2021		2022		2023		Thereafter
Mortgage notes payable (1)	$	2,267,444	$	161,599	$	105,081	$	224,891	$	277,282	$	353,274	$	315,267	$	157,887	$	672,163
Unsecured credit facility	500,000		—		500,000		—		—		—		—		—		—
Corporate bonds	2,250,000		—		—		750,000		—		400,000		—		—		1,100,000
Convertible notes	1,000,000		—		597,500		—		402,500		—		—		—		—
Secured term loan	14,151		884		13,267		—		—		—		—		—		—
Total Adjusted Debt Outstanding	$	6,031,595	$	162,483	$	1,215,848	$	974,891	$	679,782	$	753,274	$	315,267	$	157,887	$	1,772,163

Debt Type	Percentage of Debt Outstanding		Weighted-Average Effective Interest Rate		Weighted-Average Years to Maturity
Mortgage notes payable (1)	37.6	%	4.88	%	4.4
Unsecured credit facility	8.3	%	3.25	%	1.0
Corporate bonds	37.3	%	4.06	%	5.1
Convertible notes	16.6	%	3.30	%	2.0
Secured term loan	0.2	%	5.81	%	0.5
Total	100.0	%	4.18	%	4.0

Debt Type	Percentage of Debt Outstanding		Weighted-Average Effective Interest Rate		Weighted-Average Years to Maturity
Total unsecured debt	62.2	%	3.75	%	3.7
Total secured debt	37.8	%	4.88	%	4.4
Total	100.0	%	4.18	%	4.0
Total fixed-rate debt (2)	99.8	%	4.18	%	4.0
Total variable-rate debt	0.2	%	4.00	%	0.1
Total	100.0	%	4.18	%	4.0

Preferred Equity	Balance (3)		Percent of Total Preferred Equity		Dividend Rate
Series F preferred stock	$	1,070,853	100.00	%	6.7	%

___________________________________

(1) Omits three mortgage notes payable, each secured by an Excluded Property, with aggregate Debt Outstanding of $83.9 million and a weighted average interest rate of 9.01%.

(2) Includes $630.3 million of variable-rate debt with its interest rate fixed by way of an interest rate swap agreement.

(3) Balance represents 42.8 million shares outstanding at June 30, 2017 multiplied by the liquidation preference of $25 per share.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 20

	Q2 2017 SUPPLEMENTAL INFORMATION

Debt and Preferred Equity Summary (cont.)

(unaudited, dollars in millions)

___________________________________

(1) Omits three mortgage notes payable, each secured by an Excluded Property, with aggregate Debt Outstanding of $83.9 million and a weighted average interest rate of 9.01%.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 21

	Q2 2017 SUPPLEMENTAL INFORMATION

Mortgage Notes Payable (cont.)

(unaudited, dollars in thousands)

Lender	Maturity		Adjusted Debt Outstanding As Of June 30, 2017		Coupon Rate			Effective Rate (1)		Payment Terms (2)
Cantor Commercial Real Estate Lending, L.P.	01/06/24		$	465,000	4.97	%		4.97	%	I/O
Cantor Commercial Real Estate Lending, L.P.	01/06/24		155,000		4.97	%		4.97	%	I/O
Wells Fargo Bank, National Association	01/01/18		130,462		5.61	%		5.61	%	P&I
JPMorgan Chase Bank, N.A.	09/01/20	(3)	97,429		5.55	%		5.55	%	P&I
Wells Fargo Bank, National Association	03/01/23	(3)	74,250		4.23	%		4.23	%	I/O
Wells Fargo Bank, National Association	07/01/22	(3)	68,110		4.54	%		4.54	%	I/O
Goldman Sachs Commercial Mortgage Capital, L.P.	06/06/20		62,027		5.73	%		5.73	%	P&I
Wells Fargo Bank, National Association	05/01/21		60,450		5.54	%		5.54	%	I/O
PNC Bank, National Association	01/01/19		59,500		4.10	%		4.10	%	I/O
Citigroup Global Markets Realty Corp	05/06/22		54,300		6.05	%		6.05	%	I/O
Capital One, N.A.	11/20/19		51,400		1mo. Libor + 1.95%		(4)	3.27	%	I/O through 11/01/2017, then P&I
American General Life Insurance Company	11/01/21		51,250		5.25	%		5.25	%	I/O
JPMorgan Chase Bank, N.A.	05/01/21		46,910		5.53	%		5.53	%	I/O
Goldman Sachs Commercial Mortgage Capital, L.P.	05/06/21	(3)	46,670		5.92	%		5.92	%	I/O
People's United Bank	04/01/21		41,846		5.55	%		5.55	%	P&I
Wells Fargo Bank, National Association	06/01/22	(3)	41,000		4.73	%		4.73	%	I/O
Morgan Stanley Mortgage Capital Holdings LLC	01/01/23		40,800		4.46	%		4.46	%	I/O
JPMorgan Chase Bank, N.A.	06/01/20		40,528		5.71	%		5.71	%	P&I
JPMorgan Chase Bank, N.A.	11/01/19	(3)	38,500		4.10	%		4.10	%	I/O
The Royal Bank of Scotland Plc	01/01/21		34,000		5.48	%		5.48	%	I/O
Goldman Sachs Mortgage Company	12/06/20		31,500		5.25	%		5.25	%	I/O
Oritani Bank	05/01/24		30,050		3.25	%		3.25	%	I/O through 05/01/2019, then P&I
Goldman Sachs Mortgage Company	12/06/20		30,000		5.25	%		5.25	%	I/O
Jackson National Life Insurance Company	10/01/18	(3)	29,450		4.25	%		4.25	%	I/O
German American Capital Corporation	10/06/22	(3)	29,160		4.48	%		4.48	%	I/O
German American Capital Corporation	10/06/22	(3)	28,440		4.48	%		4.48	%	I/O
BOKF, NA dba Bank of Oklahoma	07/29/18		28,016		1mo. Libor + 2.75%		(4)	4.10	%	P&I
PNC Bank, National Association	06/01/22		27,750		4.22	%		4.22	%	I/O
GS Commercial Real Estate LP	08/06/19	(3)	27,725		4.73	%		4.73	%	I/O
PNC Bank, National Association	09/01/22		27,324		4.00	%		4.00	%	P&I
Jackson National Life Insurance Company	07/01/19		27,200		3.10	%		3.10	%	I/O
John Hancock Life Insurance Company	10/03/22		22,500		4.04	%		4.04	%	I/O
BOKF, NA dba Bank of Texas	12/31/18		21,766		1mo. Libor + 1.80%		(4)	3.57	%	I/O
Aviva Life and Annuity Company	07/01/21		19,600		5.02	%		5.02	%	I/O through 07/01/2019, then P&I
The Variable Annuity Life Insurance Company	01/01/23		19,525		4.00	%		4.00	%	I/O
Morgan Stanley Mortgage Capital Holdings LLC	05/10/21		19,513		5.67	%		5.67	%	I/O
German American Capital Corp	06/06/22		18,972		4.60	%		4.60	%	P&I
Oritani Bank	05/01/24		18,889		3.25	%		3.25	%	I/O through 05/01/2019, then P&I
The Royal Bank of Scotland Plc	03/01/21		18,100		5.88	%		5.88	%	I/O
JPMorgan Chase Bank, National Association	05/01/21	(3)	15,580		5.54	%		5.54	%	P&I
Oritani Bank	01/01/23		15,000		3.75	%		3.75	%	I/O through 01/01/2018, then P&I

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 22

	Q2 2017 SUPPLEMENTAL INFORMATION

Mortgage Notes Payable (cont.)

(unaudited, dollars in thousands)

Lender	Maturity	Adjusted Debt Outstanding As Of June 30, 2017			Coupon Rate			Effective Rate (1)		Payment Terms (2)
Amegy Bank, National Association	08/19/17	14,308			1mo. Libor + 2.95%			3.79	%	P&I
BOKF, NA dba Bank of Texas	12/31/18	14,150			1mo. Libor + 1.80%		(4)	3.57	%	I/O
BOKF, NA dba Bank of Texas	12/31/20	13,420			1mo. Libor + 1.85%		(4)	4.25	%	I/O
Goldman Sachs Commercial Mortgage Capital, L.P.	09/06/17	12,270			3.70	%		3.70	%	I/O
JPMorgan Chase Bank, N.A.	07/01/20	11,094			5.50	%		5.50	%	P&I
40/86 Mortgage Capital, Inc.	01/01/19	10,050			5.00	%		5.00	%	I/O
Monumental Life Insurance Company	04/01/23	9,413			3.95	%		3.95	%	P&I
Transamerica Life Insurance Company	08/01/30	6,912			5.57	%		5.57	%	P&I
Transamerica Life Insurance Company	08/01/30	6,160			5.32	%		5.32	%	P&I
BOKF, NA dba Bank of Texas	04/12/18	1,562			1mo. Libor + 2.45%		(4)	3.39	%	I/O
Capital Lease Funding, LLC	07/15/18	1,342			7.20	%		7.20	%	P&I
US Bank National Association	04/15/19	920			5.40	%		5.40	%	P&I
Transamerica Life Insurance Company	08/01/30	351			5.93	%		5.93	%	P&I
		$	2,267,444	(5)				4.88	%

___________________________________

(1) Represents interest rate in effect at June 30, 2017. For loans subject to interest rate swaps, this represents the all-in fixed interest rate.

(2) I/O means interest only is due monthly with the principal due at maturity. P&I means both principal and interest are due monthly.

(3) The maturity date shown represents the anticipated maturity date of the loan as specified in the loan agreement. Should the loan not be repaid at the anticipated maturity date, the applicable interest rate will increase as specified in the loan agreement.

(4) Variable-rate loan fixed by way of interest rate swap agreement.

(5) Omits three mortgage notes payable, each secured by an Excluded Property, with aggregate Debt Outstanding of $83.9 million and weighted average interest rate of 9.01%.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 23

	Q2 2017 SUPPLEMENTAL INFORMATION

Credit Facility and Corporate Bond Covenants

(unaudited)

The following is a summary of key financial covenants for the Company's unsecured credit facility and corporate bonds, as defined and calculated per the terms of the facility's credit agreement and the bonds' governing documents, respectively. These calculations, which are notbased on U.S. GAAP measurements, are presented to investors to show that the Company is in compliance with the financial covenants and are not measures of our liquidity or performance. As of June 30, 2017, the Company believes it is in compliance with these covenants based on the covenant limits and calculations in place at that time.

Unsecured Credit Facility Key Covenants	Required	June 30, 2017
Minimum tangible net worth	≥ $5.5B	$9.5B
Ratio of total indebtedness to total asset value	≤ 60%	37.8%
Ratio of adjusted EBITDA to fixed charges	≥ 1.5x	2.91x
Ratio of secured indebtedness to total asset value	≤ 45%	13.5%
Ratio of unsecured indebtedness to unencumbered asset value	≤ 60%	32.7%
Ratio of unencumbered adjusted NOI to unsecured interest expense	≥ 1.75x	4.97x
Minimum unencumbered asset value	≥ $8.0B	$10.6B

Corporate Bond Key Covenants	Required	June 30, 2017
Limitation on incurrence of total debt	≤ 65%	38.3%
Limitation on incurrence of secured debt	≤ 40%	15.0%
Debt service coverage	≥ 1.5x	4.27x
Maintenance of total unencumbered assets	≥ 150%	298.0%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 24

	Q2 2017 SUPPLEMENTAL INFORMATION

Acquisitions and Dispositions

(unaudited, square feet and dollars in thousands)

Acquisitions

The following table summarizes the Company's property acquisition activity during the three months ended June 30, 2017.

Property Type	Number of Properties	Square Feet	Weighted Average Lease Term (Years) (1)	Weighted Average Cash Cap Rate		Purchase Price
Retail	16	201	16.2	6.8	%	$	51,574
Bob Evans - Red Lobster Exchange (2)	22	123	19.9	7.3	%	50,073
Total acquisitions	38	324	18.0	7.0	%	$	101,647

Dispositions

The following table summarizes the Company's property disposition activity and the related gains/losses during the three months ended June 30, 2017.

Property Type	Number of Properties	Square Feet	Weighted Average Lease Term (Years) (3)	Weighted Average Cash Cap Rate (4)		Sale Price		Gain (Loss)
Retail	3	55	6.0	7.9	%	$	10,375	$	399
Office	2	379	9.5	6.6	%	135,050		33,957
Red Lobster - GGC Participation #1 (5)	6	49	21.3	7.0	%	23,429		2,616
Red Lobster - Bob Evans Exchange (2)	15	99	22.1	7.3	%	50,073		7,388
Other restaurants	4	29	2.9	7.9	%	5,619		784
Vacant (6)	1	2	N/A	N/A		250		49
Other (7)	6	1,142	N/A	N/A		—		(2,076		)	(8)
Total dispositions	37	1,755	13.2	6.9	%	$	224,796	$	43,117
Held for sale assets								(478		)
Total gain on disposition of real estate, net								$	42,639

___________________________________

(1) Represents the remaining lease term from the date of acquisition.

(2) VEREIT simultaneously acquired 22 Bob Evans properties and disposed of 15 Red Lobster properties through a nonmonetary exchange.

(3) Represents the remaining lease term from the date of sale.

(4) Excludes certain properties' cash cap rates considered not meaningful due to factors such as physical and economic vacancy or short remaining lease terms.

(5) The Red Lobster properties were sold under an agreement with the tenant, under which the tenant received a portion of the sales proceeds. The sales price and cash cap rate presented are based on our proceeds after making the participation payment to the tenant. The cash cap rate on the gross sales price of $27.3 million was 6.0%.

(6) Represents one restaurant property.

(7) Includes four properties transferred to the lender to satisfy the mortgage loan and two restaurant properties relinquished to the ground lessor upon expiration or termination of the ground lease. Gain (loss) amounts also include partial condemnations or easements related to certain properties, and post-closing adjustments.

(8) Excludes the gain relating to the properties transferred to the lender of $9.0 million, which is included in gain (loss) on extinguishment and forgiveness of debt, net in the Consolidated Statements of Operations.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 25

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification Statistics: Real Estate Portfolio

(unaudited, percentages based on portfolio Annualized Rental Income)

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________

Statistics (square feet in thousands)
Operating Properties	4,105
Rentable Square Feet	91,094
Economic Occupancy Rate	98.6	%
Weighted Average Remaining Lease Term	9.5
Investment-Grade Tenants	40.7	%
Flat leases	21.6	%
NNN leases	62.4	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 26

	Q2 2017 SUPPLEMENTAL INFORMATION

Top 10 Concentrations: Real Estate Portfolio

(unaudited, square feet and dollars in thousands)

Tenant Concentration	Number of Leases	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio		Investment Rating
Red Lobster	26	2,144	2.4	%	$	78,988	7.0	%	B-
Family Dollar	188	3,451	3.8	%	37,890		3.3	%	BB+
Walgreens	104	1,506	1.7	%	37,881		3.3	%	BBB
Dollar General	408	3,775	4.1	%	34,736		3.1	%	BBB
FedEx	47	3,299	3.6	%	31,991		2.8	%	BBB
CVS	97	1,378	1.5	%	31,157		2.8	%	BBB+
Albertson's	33	1,923	2.1	%	23,633		2.1	%	B+
BJ's Wholesale Club	3	2,223	2.4	%	19,585		1.7	%	B-
Citizens Bank	167	809	0.9	%	19,379		1.7	%	A-
Petsmart	12	858	0.9	%	17,619		1.6	%	B+
Total	1,085	21,366	23.4	%	$	332,859	29.4	%

Tenant Industry Concentration	Number of Leases	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Restaurants - Casual Dining	346	4,728	5.2	%	$	165,696	14.6	%
Manufacturing	58	17,179	18.9	%	115,957		10.2	%
Restaurants - Quick Service	846	3,395	3.7	%	100,604		8.9	%
Retail - Discount	623	10,110	11.1	%	91,283		8.1	%
Retail - Pharmacy	241	3,592	3.9	%	82,791		7.3	%
Retail - Grocery & Supermarket	87	5,518	6.1	%	59,009		5.2	%
Finance	285	2,677	2.9	%	58,422		5.2	%
Retail - Home & Garden	102	7,249	8.0	%	52,238		4.6	%
Professional Services	56	3,612	4.0	%	47,874		4.2	%
Logistics	51	4,120	4.5	%	39,521		3.5	%
Total	2,695	62,180	68.3	%	$	813,395	71.8	%

Geographic Concentration	Number of Properties	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Texas	559	10,865	11.9	%	$	149,765	13.2	%
Florida	256	4,570	5.0	%	64,424		5.7	%
Illinois	161	4,533	5.0	%	62,088		5.5	%
Ohio	295	6,756	7.4	%	58,807		5.2	%
Pennsylvania	161	5,519	6.1	%	55,708		4.9	%
California	76	3,789	4.2	%	50,746		4.5	%
Georgia	190	3,833	4.2	%	44,781		4.0	%
Indiana	137	4,836	5.3	%	40,625		3.6	%
Michigan	184	2,098	2.3	%	37,190		3.3	%
North Carolina	165	3,240	3.6	%	36,238		3.2	%
Total	2,184	50,039	55.0	%	$	600,372	53.1	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 27

	Q2 2017 SUPPLEMENTAL INFORMATION

Metropolitan Statistical Area (MSA) Concentration	Number of Properties	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Chicago, IL	102	4,002	4.4	%	$	52,552	4.6	%
Dallas, TX	114	3,536	3.9	%	49,376		4.4	%
Houston, TX	91	2,598	2.9	%	29,920		2.6	%
Atlanta, GA	89	2,752	3.0	%	28,152		2.5	%
Philadelphia, PA	50	2,005	2.2	%	27,826		2.5	%
New York, NY	25	1,132	1.2	%	25,585		2.3	%
Boston, MA	28	1,819	2.0	%	24,980		2.2	%
Phoenix, AZ	47	1,156	1.3	%	21,971		1.9	%
Washington, DC	23	613	0.7	%	17,161		1.5	%
Indianapolis, IN	40	1,607	1.8	%	16,154		1.4	%
Total	609	21,220	23.4	%	$	293,677	25.9	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 28

	Q2 2017 SUPPLEMENTAL INFORMATION

Tenants Comprising Over 1% of Annualized Rental Revenue

(unaudited, square feet and dollars in thousands)

Tenant	Number of Leases	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio		Investment Rating
Red Lobster	26	2,144	2.4	%	$	78,988	7.0	%	B-
Family Dollar	188	3,451	3.8	%	37,890		3.3	%	BB+
Walgreens	104	1,506	1.7	%	37,881		3.3	%	BBB
Dollar General	408	3,775	4.1	%	34,736		3.1	%	BBB
FedEx	47	3,299	3.6	%	31,991		2.8	%	BBB
CVS	97	1,378	1.5	%	31,157		2.8	%	BBB+
Albertson's	33	1,923	2.1	%	23,633		2.1	%	B+
BJ's Wholesale Club	3	2,223	2.4	%	19,585		1.7	%	B-
Citizens Bank	167	809	0.9	%	19,379		1.7	%	A-
Petsmart	12	858	0.9	%	17,619		1.6	%	B+
L.A. Fitness	20	871	1.0	%	16,767		1.5	%	B+
Goodyear	10	4,728	5.2	%	16,550		1.5	%	BB
Tractor Supply	59	1,235	1.4	%	16,005		1.4	%	NR
Amazon	3	3,048	3.3	%	14,159		1.3	%	AA-
Advance Auto Parts	106	736	0.8	%	12,099		1.1	%	BBB-
Home Depot	11	1,695	1.9	%	11,463		1.0	%	A
General Service Administration	13	639	0.7	%	11,436		1.0	%	AA+
Lowe's	13	1,747	1.9	%	11,381		1.0	%	A-
Total	1,320	36,065	39.6	%	$	442,719	39.2	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 29

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification: Tenant Industry

(unaudited, square feet and dollars in thousands)

Industry	Number of Leases	Leased Square Feet	Leased Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Administration & Support Services	4	427	0.5	%	$	4,003	0.4	%
Agricultural	2	138	0.2	%	1,245		0.1	%
Education	5	219	0.2	%	2,155		0.2	%
Entertainment & Recreation	22	920	1.0	%	18,156		1.6	%
Finance	285	2,677	2.9	%	58,422		5.2	%
Government & Public Services	21	899	1.0	%	18,864		1.7	%
Healthcare	10	1,055	1.2	%	16,485		1.5	%
Information & Communication	12	507	0.6	%	7,767		0.7	%
Insurance	13	1,352	1.4	%	26,467		2.3	%
Logistics	51	4,120	4.5	%	39,521		3.5	%
Manufacturing	58	17,179	18.9	%	115,957		10.2	%
Mining & Natural Resources	4	413	0.5	%	6,641		0.6	%
Other Services	34	5,277	5.8	%	20,840		1.8	%
Professional Services	56	3,612	3.9	%	47,874		4.2	%
Rental	11	719	0.8	%	6,784		0.6	%
Restaurants - Casual Dining	346	4,728	5.2	%	165,696		14.6	%
Restaurants - Quick Service	846	3,395	3.7	%	100,604		8.9	%
Retail - Apparel & Jewelry	12	1,393	1.5	%	15,130		1.3	%
Retail - Department Stores	13	965	1.1	%	8,010		0.7	%
Retail - Discount	623	10,110	11.1	%	91,283		8.1	%
Retail - Electronics & Appliances	17	1,517	1.7	%	10,062		0.9	%
Retail - Gas & Convenience	128	579	0.6	%	28,952		2.6	%
Retail - Grocery & Supermarket	87	5,518	6.1	%	59,009		5.2	%
Retail - Hobby, Books & Music	10	395	0.4	%	3,438		0.3	%
Retail - Home & Garden	102	7,249	8.0	%	52,238		4.6	%
Retail - Home Furnishings	39	417	0.5	%	7,390		0.7	%
Retail - Internet	3	3,048	3.3	%	14,159		1.3	%
Retail - Medical Services	64	471	0.5	%	11,238		1.0	%
Retail - Motor Vehicle	164	1,181	1.3	%	21,817		1.9	%
Retail - Office Supply	4	76	0.1	%	1,155		0.1	%
Retail - Pet Supply	15	903	1.0	%	18,453		1.6	%
Retail - Pharmacy	241	3,592	3.9	%	82,791		7.3	%
Retail - Specialty (Other)	22	561	0.6	%	6,155		0.5	%
Retail - Sporting Goods	21	1,249	1.4	%	14,903		1.3	%
Retail - Warehouse Clubs	7	2,631	2.9	%	22,699		2.0	%
Other	25	356	0.3	%	6,202		0.5	%
Total	3,377	89,848	98.6	%	$	1,132,565	100.0	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 30

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification: Property Geographic

(unaudited, square feet and dollars in thousands)

Location	Number of Properties	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
United States
Alabama	146	1,580	1.7	%	$	23,622	2.1	%
Alaska	3	25	—	%	777		0.1	%
Arizona	75	1,849	2.0	%	31,980		2.8	%
Arkansas	95	997	1.1	%	12,278		1.1	%
California	76	3,789	4.2	%	50,746		4.5	%
Colorado	47	1,688	1.9	%	24,266		2.1	%
Connecticut	18	89	0.1	%	2,464		0.2	%
Delaware	12	99	0.1	%	2,103		0.2	%
Florida	256	4,570	5.0	%	64,424		5.7	%
Georgia	190	3,833	4.2	%	44,781		4.0	%
Idaho	16	130	0.1	%	3,232		0.3	%
Illinois	161	4,533	5.0	%	62,088		5.5	%
Indiana	137	4,836	5.3	%	40,625		3.6	%
Iowa	50	1,461	1.6	%	13,040		1.1	%
Kansas	41	2,134	2.3	%	10,088		0.9	%
Kentucky	85	2,303	2.5	%	24,947		2.2	%
Louisiana	95	1,615	1.8	%	21,528		1.9	%
Maine	25	648	0.7	%	8,562		0.8	%
Maryland	28	610	0.7	%	14,458		1.3	%
Massachusetts	39	2,579	2.8	%	30,244		2.7	%
Michigan	184	2,098	2.3	%	37,190		3.3	%
Minnesota	53	557	0.6	%	8,704		0.8	%
Mississippi	76	1,833	2.0	%	14,984		1.3	%
Missouri	155	1,707	1.9	%	22,584		2.0	%
Montana	9	115	0.1	%	1,698		0.1	%
Nebraska	20	466	0.5	%	8,708		0.8	%
Nevada	28	717	0.8	%	8,271		0.7	%
New Hampshire	20	254	0.3	%	4,429		0.4	%
New Jersey	34	1,660	1.8	%	35,782		3.2	%
New Mexico	47	924	1.0	%	12,625		1.1	%
New York	82	1,520	1.7	%	27,639		2.4	%
North Carolina	165	3,240	3.6	%	36,238		3.2	%
North Dakota	12	201	0.2	%	4,268		0.4	%
Ohio	295	6,756	7.4	%	58,807		5.2	%
Oklahoma	77	2,009	2.2	%	23,612		2.1	%
Oregon	14	300	0.3	%	5,532		0.5	%
Pennsylvania	161	5,519	6.1	%	55,708		4.9	%
Rhode Island	14	215	0.2	%	3,226		0.3	%
South Carolina	117	3,327	3.7	%	28,265		2.5	%
South Dakota	12	180	0.2	%	2,169		0.2	%
Tennessee	109	3,377	3.7	%	29,054		2.6	%
Texas	559	10,865	11.9	%	149,765		13.2	%
Utah	7	86	0.1	%	1,376		0.1	%
Vermont	7	23	—	%	306		—	%
Virginia	101	1,780	2.0	%	29,886		2.6	%
Washington	23	459	0.5	%	9,267		0.8	%
West Virginia	38	237	0.3	%	5,781		0.5	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 31

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification: Property Geographic (cont.)

(unaudited, square feet and dollars in thousands)

Location	Number of Properties	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Wisconsin	79	1,152	1.3	%	16,322		1.4	%
Wyoming	8	54	0.1	%	1,436		0.1	%
Territories
Puerto Rico	3	88	0.1	%	2,335		0.2	%
Canadian Provinces
Ontario	1	7	—	%	345		—	%
Total	4,105	91,094	100.0	%	$	1,132,565	100.0	%

Percentages based on Annualized Rental Income.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 32

	Q2 2017 SUPPLEMENTAL INFORMATION

Lease Expirations

(unaudited, square feet and dollars in thousands)

Year of Expiration	Number of Leases Expiring	Leased Square Feet	Leased Square Feet as a % of Total Portfolio		Annualized Rental Income Expiring		Annualized Rental Income Expiring as a % of Total Portfolio
Remaining 2017	60	498	0.6	%	$	6,544	0.5	%
2018	199	3,233	3.4	%	34,433		3.0	%
2019	176	3,199	3.5	%	54,409		4.7	%
2020	217	3,891	4.1	%	42,002		3.8	%
2021	189	10,501	11.6	%	83,931		7.4	%
2022	285	9,389	10.3	%	80,993		7.2	%
2023	217	5,944	6.5	%	72,441		6.4	%
2024	172	9,022	10.0	%	105,118		9.4	%
2025	269	4,446	4.9	%	64,099		5.6	%
2026	244	8,773	9.6	%	84,445		7.5	%
Thereafter	1,349	30,952	34.1	%	504,150		44.5	%
Total	3,377	89,848	98.6	%	$	1,132,565	100.0	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 33

	Q2 2017 SUPPLEMENTAL INFORMATION

Lease Expirations (cont.)

(unaudited, square feet and dollars in thousands)

Year of Expiration	Number of Leases Expiring	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income Expiring		Annualized Rental Income Expiring as a % of Total Portfolio
Remaining 2017
Retail	35	224	0.3	%	$	3,693	0.3	%
Restaurant	20	86	0.1	%	1,377		0.1	%
Industrial & distribution	3	166	0.2	%	1,086		0.1	%
Office	2	22	—	%	388		—	%
Total Remaining 2017	60	498	0.6	%	$	6,544	0.5	%
2018
Retail	102	1,195	1.2	%	$	17,348	1.5	%
Restaurant	80	301	0.3	%	6,992		0.6	%
Industrial & distribution	10	1,564	1.7	%	6,201		0.6	%
Office	5	173	0.2	%	3,874		0.3	%
Other (1)	2	—	—	%	18		—	%
Total 2018	199	3,233	3.4	%	$	34,433	3.0	%
2019
Retail	86	1,590	1.7	%	$	19,752	1.7	%
Restaurant	73	305	0.3	%	7,099		0.6	%
Industrial & distribution	3	137	0.2	%	1,275		0.1	%
Office	14	1,167	1.3	%	26,283		2.3	%
Total 2019	176	3,199	3.5	%	$	54,409	4.7	%
2020
Retail	100	1,212	1.2	%	$	15,766	1.4	%
Restaurant	97	390	0.4	%	7,801		0.7	%
Industrial & distribution	8	1,352	1.5	%	5,222		0.5	%
Office	11	937	1.0	%	13,212		1.2	%
Other (1)	1	—	—	%	1		—	%
Total 2020	217	3,891	4.1	%	$	42,002	3.8	%

___________________________________

(1) Includes billboards, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 34

	Q2 2017 SUPPLEMENTAL INFORMATION

Lease Expirations (cont.)

(unaudited, square feet and dollars in thousands)

Year of Expiration	Number of Leases Expiring	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income Expiring		Annualized Rental Income Expiring as a % of Total Portfolio
2021
Retail	83	1,348	1.5	%	$	21,091	1.9	%
Restaurant	70	366	0.4	%	9,341		0.8	%
Industrial & distribution	14	7,098	7.8	%	25,386		2.2	%
Office	21	1,689	1.9	%	28,090		2.5	%
Other (1)	1	—	—	%	23		—	%
Total 2021	189	10,501	11.6	%	$	83,931	7.4	%
2022
Retail	192	2,353	2.6	%	$	32,066	2.8	%
Restaurant	52	255	0.3	%	6,664		0.6	%
Industrial & distribution	25	5,408	5.9	%	18,999		1.7	%
Office	14	1,373	1.5	%	23,176		2.1	%
Other (1)	2	—	—	%	88		—	%
Total 2022	285	9,389	10.3	%	$	80,993	7.2	%
2023
Retail	144	2,055	2.3	%	$	27,494	2.4	%
Restaurant	49	215	0.2	%	5,132		0.5	%
Industrial & distribution	15	2,477	2.7	%	16,324		1.4	%
Office	9	1,197	1.3	%	23,491		2.1	%
Total 2023	217	5,944	6.5	%	$	72,441	6.4	%
2024
Retail	100	2,172	2.4	%	$	29,104	2.6	%
Restaurant	45	238	0.3	%	6,212		0.6	%
Industrial & distribution	10	3,374	3.7	%	14,271		1.3	%
Office	16	3,238	3.6	%	55,492		4.9	%
Other (1)	1	—	—	%	39		—	%
Total 2024	172	9,022	10.0	%	$	105,118	9.4	%

___________________________________

(1) Includes billboards, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 35

	Q2 2017 SUPPLEMENTAL INFORMATION

Lease Expirations (cont.)

(unaudited, square feet and dollars in thousands)

Year of Expiration	Number of Leases Expiring	Leased Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income Expiring		Annualized Rental Income Expiring as a % of Total Portfolio
2025
Retail	187	1,809	2.0	%	$	32,035	2.8	%
Restaurant	66	288	0.3	%	8,258		0.7	%
Industrial & distribution	11	1,663	1.8	%	13,433		1.2	%
Office	5	686	0.8	%	10,373		0.9	%
Total 2025	269	4,446	4.9	%	$	64,099	5.6	%
2026
Retail	88	1,962	2.2	%	$	21,755	1.9	%
Restaurant	133	575	0.6	%	20,842		1.8	%
Industrial & distribution	17	5,498	6.0	%	26,562		2.4	%
Office	6	738	0.8	%	15,286		1.4	%
Total 2026	244	8,773	9.6	%	$	84,445	7.5	%
Thereafter
Retail	830	16,098	17.7	%	$	234,182	20.8	%
Restaurant	468	4,999	5.5	%	183,619		16.2	%
Industrial & distribution	29	8,063	8.9	%	53,738		4.7	%
Office	19	1,792	2.0	%	32,196		2.8	%
Other (1)	3	—	—	%	415		—	%
Total Thereafter	1,349	30,952	34.1	%	$	504,150	44.5	%
Total Remaining Lease Expirations	3,377	89,848	98.6	%	$	1,132,565	100.0	%

___________________________________

(1) Includes billboards, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 36

	Q2 2017 SUPPLEMENTAL INFORMATION

Lease Summary

(unaudited)

Rent Escalations

(square feet and dollars in thousands)

	Number of Leases	Leased Square Feet	Leased Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Fixed dollar or percent increase	2,096	59,153	64.9	%	$	784,610	69.3	%
CPI	231	6,879	7.6	%	103,508		9.1	%
Flat	1,050	23,816	26.1	%	244,447		21.6	%
Total	3,377	89,848	98.6	%	$	1,132,565	100.0	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 37

	Q2 2017 SUPPLEMENTAL INFORMATION

Lease Summary (cont.)

(unaudited)

Tenant Expense Obligation

(square feet and dollars in thousands)

	Number of Leases	Leased Square Feet	Leased Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
NNN	2,436	52,659	57.8	%	$	706,482	62.4	%
NN	902	35,689	39.2	%	391,247		34.5	%
Other (1)	39	1,500	1.6	%	34,836		3.1	%
Total	3,377	89,848	98.6	%	$	1,132,565	100.0	%

___________________________________

(1) Includes gross, modified gross and billboard.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 38

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification: Property Type

(unaudited, square feet and dollars in thousands)

Property Type	Number of Properties (1)	Rentable Square Feet	Square Feet as a % of Total Portfolio		Annualized Rental Income		Annualized Rental Income as a % of Total Portfolio
Retail (1)	2,110	32,300	35.5	%	$	454,286	40.1	%
Restaurant	1,748	8,486	9.3	%	263,337		23.3	%
Industrial and distribution	146	36,800	40.4	%	182,497		16.1	%
Office	91	13,508	14.8	%	231,861		20.5	%
Other (2)	10	—	—	%	584		—	%
Total	4,105	91,094	100.0	%	$	1,132,565	100.0	%

___________________________________

(1) Includes 10 anchored shopping centers, representing 1.7% of Annualized Rental Income.

(2) Includes billboards, land and parking lots.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 39

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification by Property Type: Retail

(unaudited, percentages based on Annualized Rental Income of the retail properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________

Statistics (square feet in thousands)
Operating Properties	2,110
Rentable Square Feet	32,300
Economic Occupancy Rate	99.1	%
Weighted Average Remaining Lease Term	9.5
Investment-Grade Tenants	46.8	%
Flat leases	35.4	%
NNN leases	66.5	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 40

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification by Property Type: Restaurants

(unaudited, percentages based on Annualized Rental Income of the restaurant properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________

Statistics (square feet in thousands)
Operating Properties	1,748
Rentable Square Feet	8,486
Economic Occupancy Rate	94.5	%
Weighted Average Remaining Lease Term	13.3
Investment-Grade Tenants	2.8	%
Flat leases	7.6	%
NNN leases	99.4	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 41

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification by Property Type: Industrial and Distribution

(unaudited, percentages based on Annualized Rental Income of the industrial & distribution properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________

Statistics (square feet in thousands)
Operating Properties	146
Rentable Square Feet	36,800
Economic Occupancy Rate	100.0	%
Weighted Average Remaining Lease Term	8.2
Investment-Grade Tenants	57.2	%
Flat leases	22.1	%
NNN leases	50.6	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 42

	Q2 2017 SUPPLEMENTAL INFORMATION

Diversification by Property Type: Office

(unaudited, percentages based on Annualized Rental Income of the office properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________

Statistics (square feet in thousands)
Operating Properties	91
Rentable Square Feet	13,508
Economic Occupancy Rate	96.3	%
Weighted Average Remaining Lease Term	6.4
Investment-Grade Tenants	58.7	%
Flat leases	10.0	%
NNN leases	21.5	%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 43

	Q2 2017 SUPPLEMENTAL INFORMATION

Unconsolidated Joint Venture Investment Summary

(unaudited, square feet and dollars in thousands)

The following table shows certain information regarding the Company's interests in unconsolidated joint ventures as of June 30, 2017:

Joint Venture	Partner	Ownership % (1)	Pro rata Share of Purchase Price		Rentable Square Feet (2)	Annualized Rental Income (2)		Debt (2) (3)		Major Tenants
Cole/Mosaic JV South Elgin IL, LLC	Affiliate of Mosaic Properties and Development, LLC	50%	$	17,000	232	$	3,024	$	20,400	Home Depot, Best Buy
Cole/Faison JV Bethlehem GA, LLC	Faison-Winder Investors, LLC	90%	33,429		280	3,293		—		Publix, Belk
Total			$	50,429	512	6,317		20,400
Company's aggregate interest						$	4,475	$	10,200

___________________________________

(1) The Company's ownership interest reflects its legal ownership interest. Legal ownership may, at times, not equal the Company's economic interest in the listed properties 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. As a result, the Company's actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests.

(2) Represents information for the total unconsolidated joint venture.

(3) Represents a secured loan with a fixed interest rate of 5.20% and a maturity date of July 2021.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 44

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 45

		Q2 2017 SUPPLEMENTAL INFORMATION

Statements of Operations - Cole Capital

(unaudited, in thousands)

	Three Months Ended
		June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Revenues:
Offering-related fees and reimbursements		$	4,523		$	4,316		$	3,683		$	9,545		$	10,914
Transaction service fees and reimbursements		5,062			4,097			2,320			3,779			4,476
Management fees and reimbursements		19,100			18,718			18,585			17,745			17,096
Total Cole Capital revenues		28,685			27,131			24,588			31,069			32,486
Operating Expenses:
Cole Capital reallowed fees and commissions		2,874			2,660			2,234			5,897			6,975
Acquisition-related		36			—			25			—			14
General and administrative		15,117			16,588			31,086			17,692			19,393
Depreciation and amortization		4,855			4,855			9,170			7,276			7,109
Impairment of intangible assets		—			—			120,931			—			—
Total operating expenses		22,882			24,103			163,446			30,865			33,491
Operating income (loss)		5,803			3,028			(138,858		)	204			(1,005		)
Total other income, net		76			128			157			95			—
Income (loss) before taxes		5,879			3,156			(138,701		)	299			(1,005		)
(Provision for) benefit from income taxes		(1,425		)	(1,146		)	6,490			(59		)	2,071
Net income (loss)		$	4,454		$	2,010		$	(132,211	)	$	240		$	1,066

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 46

		Q2 2017 SUPPLEMENTAL INFORMATION

FFO and AFFO - Cole Capital

(unaudited, in thousands, except share and per share data)

	Three Months Ended
	June 30, 2017			March 31, 2017		December 31, 2016			September 30, 2016		June 30, 2016
Net income (loss)	$	4,454		$	2,010	$	(132,211	)	$	240	$	1,066
FFO attributable to common stockholders and limited partners	4,454			2,010		(132,211		)	240		1,066
Acquisition-related expenses	36			—		25			—		14
Impairment of intangible assets	—			—		120,931			—		—
Amortization of management contracts	4,146			4,146		6,240			6,240		6,240
Deferred tax expense (benefit) (1)	(4,318		)	1,649		(9,203		)	6,941		(6,417		)
Equity-based compensation expense	1,665			1,447		2,108			1,387		854
Other amortization and non-cash charges	627			632		2,873			929		751
AFFO attributable to common stockholders and limited partners	$	6,610		$	9,884	$	(9,237	)	$	15,737	$	2,508
Weighted-average shares outstanding - basic	974,160,295			973,849,610		973,681,227			943,480,170		904,107,378
Limited Partner OP Units and effect of dilutive securities (2)	23,969,333			24,402,139		24,319,992			25,206,373		27,144,667
Weighted-average shares outstanding - diluted (3)	998,129,628			998,251,749		998,001,219			968,686,543		931,252,045
FFO attributable to common stockholders and limited partners per diluted share	$	0.004		$	0.002	$	(0.132	)	$	—	$	0.001
AFFO attributable to common stockholders and limited partners per diluted share	$	0.007		$	0.010	$	(0.009	)	$	0.016	$	0.003

___________________________________

(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.

(2) Dilutive securities include unvested restricted shares of common stock and unvested restricted stock units.

(3) Weighted-average shares for all periods presented exclude the effect of the convertible debt as the Company would expect to settle the debt in cash and any shares underlying restricted stock units that are contingently issuable which are not issuable based on the Company’s level of achievement of certain performance targets through the respective reporting period.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 47

		Q2 2017 SUPPLEMENTAL INFORMATION

EBITDA and Normalized EBITDA - Cole Capital

(unaudited, in thousands)

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Net income (loss)	$	4,454		$	2,010		$	(132,211	)	$	240		$	1,066
Adjustments:
Depreciation and amortization	4,855			4,855			9,170			7,276			7,109
Provision for (benefit from) income taxes	1,425			1,146			(6,490		)	59			(2,071		)
EBITDA	$	10,734		$	8,011		$	(129,531	)	$	7,575		$	6,104
Impairment of intangible assets	—			—			120,931			—			—
Acquisition-related expenses	36			—			25			—			14
Program development costs write-off	—			—			11,054			845			2,377
Other amortization and non-cash charges	(82		)	(77		)	(57		)	(107		)	(118		)
Normalized EBITDA	$	10,688		$	7,934		$	2,422		$	8,313		$	8,377

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 48

		Q2 2017 SUPPLEMENTAL INFORMATION

Net G&A

(unaudited, dollars in thousands)

Cole Capital generally receives a selling commission, dealer manager fee and/or a distribution and stockholder servicing fee based on the gross offering proceeds related to the sale of shares of the Cole REITs’ common stock. Cole Capital reallows all or a portion of these fees to participating broker-dealers and records the expense in the same period that it recognizes the related revenue. In its capacity as advisor to the Cole REITs, Cole Capital incurs certain costs on behalf of the Cole REITs, which are reimbursable. In accordance with GAAP, Cole Capital records these costs as general and administrative expenses and the reimbursements as revenue in the same period. The following table presents the Cole Capital segment revenue and general and administrative expenses, each net of fees reallowed to participating broker-dealers and reimbursements from the Cole REITs.

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Cole Capital revenue, net of reallowed fees and commissions	$	25,811		$	24,471		$	22,354		$	25,172		$	25,511
Less: Expense reimbursements from Cole REITs recorded as revenue	6,395			6,387			6,395			7,416			7,342
Net Cole Capital Revenue	19,416			18,084			15,959			17,756			18,169
Other income	76			128			157			95			—
Net Cole Capital Revenue and other income	$	19,492		$	18,212		$	16,116		$	17,851		$	18,169
Total consolidated general and administrative expenses	$	29,411		$	29,148		$	44,353		$	29,761		$	33,094
Less: REI segment general and administrative expenses	14,294			12,560			13,267			12,069			13,701
Cole Capital general and administrative expenses	15,117			16,588			31,086			17,692			19,393
Less:
Expenses reimbursed from Cole REITs	6,395			6,387			6,395			7,416			7,342
Net Cole Capital G&A Expense	8,722			10,201			24,691			10,276			12,051
Expenses incurred recorded as program development costs	1,165			905			(8,268		)	2,452			973
Normalized Net Cole Capital G&A Expense	$	9,887		$	11,106		$	16,423		$	12,728		$	13,024
Normalized EBITDA Margin	54.8		%	43.6		%	15.0		%	46.6		%	46.1		%
Normalized Net Cole Capital G&A Expense as percent of Net Cole Capital Revenue and other income	50.7		%	61.0		%	101.9		%	71.3		%	71.7		%

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 49

		Q2 2017 SUPPLEMENTAL INFORMATION

Program Development Costs

(unaudited, in thousands)

Cole Capital pays for organization, registration and offering expenses associated with the sale of common stock of the Cole REITs. The reimbursement of these expenses by the Cole REITs is limited to a certain percentage of the proceeds raised from their offerings, in accordance with their respective advisory agreements and charters. Such expenses paid by the Company on behalf of the Cole REITs in excess of these limits that are expected to be collected as the Cole REITs raise additional funds are recorded as program development costs, which are included in rent and tenant receivables and other assets, net on the balance sheet. The Company assesses the collectability of the program development costs, considering the offering period and historical and forecasted sales of shares under the Cole REITs' respective offerings, and reserves for any balances considered not collectible.

The following table presents a rollforward of the program development costs balance:

	Program Development Costs(1) for the Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Beginning Balance	$	3,182		$	3,161		$	12,268		$	12,115		$	13,578
Expenses incurred	2,824			3,063			4,618			7,010			6,993
Offering-related reimbursement revenue	(550		)	(884		)	(839		)	(2,299		)	(2,436		)
Reserve for uncollectible amounts and write-offs(2)	(1,659		)	(2,158		)	(12,886		)	(4,558		)	(6,020		)
Ending Balance	$	3,797		$	3,182		$	3,161		$	12,268		$	12,115

___________________________________

(1) Excludes INAV (as defined in the "Program Summary" of the Cole REITs and Other Real Estate Programs section), as expenses are recorded as incurred and revenue is recorded when reimbursement is received.

(2) The Company assesses the collectability of the program development costs and records monthly reserves for the portion that is not expected to be collected. Certain triggering events, such as impairment evaluations of the Cole Capital segment and the closing of a Cole REIT's offering, may result in a write-off of additional program development costs. Reserves for uncollectible amounts and write-offs are recorded as a general and administrative expense in the respective period.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 50

		Q2 2017 SUPPLEMENTAL INFORMATION

Cole REITs and Other Real Estate Programs

(unaudited, dollars in thousands)

Program Summary

The following table shows the Cole REITs and other real estate programs' cumulative activity summary information from each respective program's offering commencement date through or as of June 30, 2017:

Program	Capital Raised (1)			DRIP (2)		Number of Investments (3)	Assets Under Management		Debt Outstanding
Open Programs:
Cole Credit Property Trust V, Inc. ("CCPT V")	$	353,374		$	21,851	127	$	555,907	$	251,600
Cole Real Estate Income Strategy (Daily NAV), Inc. ("INAV")	436,545			16,869		133	619,767		261,869
Cole Office & Industrial REIT (CCIT III), Inc. ("CCIT III")	11,247		(4)	38		1	32,750		25,325
Total Open Programs	801,166			38,758		261	1,208,424		538,794
Closed Programs:
Cole Office & Industrial REIT (CCIT II), Inc. ("CCIT II")	650,973			43,332		37	1,192,131		591,545
Cole Credit Property Trust IV, Inc. ("CCPT IV")	2,915,961			404,927		898	5,021,614		2,441,104
Other Programs (5)	—			—		25	290,736		131,652
Total Closed Programs	3,566,934			448,259		960	6,504,481		3,164,301
Total	$	4,368,100		$	487,017	1,221	$	7,712,905	$	3,703,095

___________________________________

(1) Represents gross proceeds, excluding DRIP shares and redemptions.

(2) Represents the value of shares issued under each respective program's distribution reinvestment plan.

(3) Includes properties owned through consolidated joint ventures.

(4) Includes a $2.5 million investment made by VEREIT in order for CCIT III to break escrow and commence operations.

(5) Includes tenant-in-common programs ("TIC"), Delaware statutory trust programs ("DST") and Cole Growth Opportunity Fund I, L.P. ("GOP").

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 51

		Q2 2017 SUPPLEMENTAL INFORMATION

Cole REITs and Other Real Estate Programs (cont.)

Offering Summary

The following table shows offering summary information for the Cole REITs in offering as of June 30, 2017:

Program	Primary Investment Strategy	Offering Commencement  Date	NAV per Share			Offering  Price per Share		Annualized Distribution per Share (1)
CCPT V
A Shares	Retail	3/17/2014	$	24.00	(2)	$	26.37	$	1.57	(4)
T Shares	Retail	4/29/2016	$	24.00	(2)	$	25.26	$	1.57	(4)
INAV
W Shares	Diversified	12/6/2011	$	18.14	(3)	$	18.14	$	0.96	(5)
A Shares	Diversified	10/10/2013	$	17.95	(3)	$	18.65	$	0.98	(5)
I Shares	Diversified	11/19/2013	$	18.30	(3)	$	18.30	$	0.97	(5)
CCIT III
A Shares	Office and Industrial	9/22/2016	N/A			$	10.00	$	0.60	(4)
T Shares	Office and Industrial	9/22/2016	N/A			$	9.57	$	0.60	(4)

___________________________________

(1) The annualized distribution does not include the effect of any fees paid monthly in arrears subsequent to the share purchase date.

(2) Represents the estimated net asset value per share as of December 31, 2016, as determined by CCPT V's board of directors on March 24, 2017.

(3) The NAV per share for each share class is calculated daily as of the close of business using a process that reflects (i) estimated values of each of INAV's commercial real estate assets, related liabilities and notes receivable secured by real estate provided periodically by INAV's independent valuation expert in individual appraisal reports, (ii) daily updates in the price of liquid assets for which third party market quotes are available, (iii) accruals of INAV's daily distributions and (iv) estimates of daily accruals, on a net basis, of operating revenues and expenses and debt service costs and fees.

(4) Represents the daily distribution rate at June 30, 2017, annualized.

(5) Represents the sum of daily distribution rates for each day in the previous twelve months.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 52

		Q2 2017 SUPPLEMENTAL INFORMATION

Cole REITs and Other Real Estate Programs (cont.)

(unaudited)

Fee Summary

The following table shows the summary of the fee information relating to the offering of the Cole REITs as of June 30, 2017.

	Selling Commissions (1)		Dealer Manager Fees (2)			Annual Distribution and Stockholder Servicing Fees (2)
Open Programs (3)
CCPT V
A Shares	7	%	2	%		—
T Shares	3	%	2	%		1	%	(3)
INAV
W Shares	—		0.55	%	(4)	—
A Shares	up to 3.75%		0.55	%	(4)	0.5	%	(4)
I Shares	—		0.25	%	(4)	—
CCIT III
A Shares	7	%	2	%		—
T Shares	3	%	2	%		1	%	(3)

The following table shows the summary of the fee information relating to transactions and portfolio management for the Cole REITs and other real estate programs as of June 30, 2017.

	Transaction Fees										Management Fees
Program	Acquisition Fees (5)		Disposition Fees		Liquidation Performance Fees			Financing Coordination Fee			Asset Management / Advisory Fees			Performance Fees
Open Programs
CCPT V	2	%	1	%	15	%	(6)	—			0.65% - 0.75%		(8)	—
INAV	—		—		N/A			—			0.90	%	(9)	25	%	(10)
CCIT III	2	%	1	%	15	%	(6)	1	%	(7)	0.65% - 0.75%		(8)	—
Closed Programs
CCIT II	2	%	1	%	15	%	(6)	—			0.65% - 0.75%		(8)	—
CCPT IV	2	%	1	%	15	%	(6)	—			0.65% - 0.75%		(8)	—
Other Programs	Various		Various		—			—			Various			Various

___________________________________

(1) The Company reallows 100% of selling commissions earned to participating broker-dealers.

(2) The Company may reallow all or a portion of its dealer manager or distribution and stockholder servicing fee to participating broker-dealers as a marketing and due diligence expense reimbursement.

(3) Fees are calculated on a daily basis in the amount of 1/365th of 1.0% of the per share NAV of the Class T shares sold in the primary portion of the respective offering. The maximum amount of the distribution and stockholder servicing fee with respect to sales of Class T shares is 4.0% of the gross offering proceeds. Distribution and stockholder servicing fees continue to be paid after the offering closes if the 4.0% maximum has not been met.

(4) Fees are calculated on a daily basis in the amount of 1/365th of the amount indicated in the table above for each class of common stock and are paid monthly in arrears.

(5) Percent taken on gross purchase price.

(6) Paid only under the following circumstances: (i) if shares are listed on a national securities exchange; (ii) if the respective program is sold or the assets are liquidated; or (iii) upon termination of the advisory agreement. In connection with such events, the performance fee will only be earned upon the return to investors of their net capital invested and a 6% annual cumulative, non-compounded return (8% in the case of CCIT II and CCPT IV).

(7) Financing coordination fee payable for services in connection with the origination, assumption, or refinancing for any debt (other than loans advanced by the Company) to acquire properties or make other permitted investments.

(8) Annualized fee based on the average monthly invested assets or average assets, as defined in the respective agreements.

(9) Annualized fee based on the average daily NAV.

(10) Paid on the amount by which the total return on stockholders' capital exceeds 6% per annum on a calendar year basis.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 53

		Q2 2017 SUPPLEMENTAL INFORMATION

Cole REITs and Other Real Estate Programs (cont.)

(unaudited, dollars in thousands)

Program Activity Summary

The following table shows the Cole REITs and other real estate programs' activity summary information for the three months ended June 30, 2017:

Program	Capital Raised (1)		DRIP (2)		Number of Investments Acquired	Purchase Price of Acquisitions		Number of Investments Sold	Sales Price of Dispositions
Open Programs
CCPT V	$	22,315	$	2,668	9	$	40,620	—	$	—
INAV	51,008		2,435		13	113,648		—	—
CCIT III	4,630		33		—	—		—	—
Total Open Programs	77,953		5,136		22	154,268		—	—
Closed Programs
CCIT II	—		5,598		—	—		—	—
CCPT IV	—		25,768		23	122,433		11	17,696
Other Programs (3)	—		—		—	—		3	38,620
Total Closed Programs	—		31,366		23	122,433		14	56,316
Total	$	77,953	$	36,502	45	$	276,701	14	$	56,316

___________________________________

(1) Represents gross proceeds, excluding DRIP shares issued.

(2) Represents the value of shares issued under each respective program's distribution reinvestment plan.

(3) Includes TIC and DST programs and GOP.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 54

		Q2 2017 SUPPLEMENTAL INFORMATION

Cole REITs and Other Real Estate Programs (cont.)

(unaudited, dollars in thousands)

Revenue Summary

The following table shows revenue earned from the Cole REITs and other real estate programs for the three months ended June 30, 2017 by activity type:

Program	Offering-Related Fees and Reimbursements			Transaction Service Revenue and Reimbursements		Management Service Revenue and Reimbursements		Total Revenue and Reimbursements
Open Programs:
CCPT V	$	2,131		$	1,022	$	1,819	$	4,972
INAV	1,962			426		1,635		4,023
CCIT III	381			15		426		822
Gross revenue - Open Programs	4,474			1,463		3,880		9,817
Less:
Reallowed revenues	2,825			—		—		2,825
Reimbursements	945			645		1,875		3,465
Net Cole Capital Revenue - Open Programs	704			818		2,005		3,527
Closed Programs:
CCIT II (1)	49		(2)	19		2,930		2,998
CCPT IV	—			2,658		12,035		14,693
Other Programs	—			922		255		1,177
Gross revenue - Closed Programs	49			3,599		15,220		18,868
Less:
Reallowed revenues	49		(2)	—		—		49
Reimbursements	—			122		2,808		2,930
Net Cole Capital Revenue - Closed Programs	—			3,477		12,412		15,889
Total Net Cole Capital Revenue	$	704		$	4,295	$	14,417	$	19,416

___________________________________

(1) CCIT II closed its offering on September 17, 2016. The program’s fee structure was similar to that of CCPT V.

(2) Represents distribution and stockholder servicing fees. The Company reallowed 100% of such fees to participating broker-dealers.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

VEREIT, Inc. | WWW.VEREIT.COM | 55

		Q2 2017 SUPPLEMENTAL INFORMATION

Cole REITs and Other Real Estate Programs (cont.)

(unaudited, dollars in thousands)

The following tables present the primary revenue drivers and Net Cole Capital Revenue earned by activity type for the Cole REITs and other real estate programs:

Offering-related fees and reimbursements

	Three Months Ended
	June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016
Capital raised (excluding DRIP)	$	77,953	$	66,718	$	67,512	$	136,381	$	138,655
Selling commissions	2,343		2,177		1,831		5,008		6,063
Dealer manager and distribution fees	1,235		1,253		1,015		2,237		2,415
Reimbursement revenue	945		886		837		2,300		2,436
Gross offering-related revenue	4,523		4,316		3,683		9,545		10,914
Less:
Reallowed securities commissions	2,343		2,177		1,831		5,008		6,063
Reallowed dealer manager and distribution fees	531		483		403		889		912
Reimbursable expenses	945		886		837		2,300		2,436
Net offering-related revenue	$	704	$	770	$	612	$	1,348	$	1,503

Transaction service revenue

	Three Months Ended
	June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016			June 30, 2016
Purchase price of acquisitions	$	276,701	$	216,187	$	173,086	$	173,869		$	211,178
Acquisition fees	3,373		3,272		1,460		2,813		(1)	3,758
Disposition fees	922		91		84		280			62
Reimbursement revenue	767		734		776		686			656
Gross transaction service revenue	5,062		4,097		2,320		3,779			4,476
Less: Reimbursable expenses	767		734		776		686			656
Net transaction service revenue	$	4,295	$	3,363	$	1,544	$	3,093		$	3,820

Management service revenue

	Three Months Ended
	June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016
Assets under management	$	7,712,905	$	7,481,884	$	7,265,673	$	7,131,400	$	7,005,695
Asset and property management and leasing fees	255		327		325		304		286
Advisory and performance fee revenue	14,162		13,624		13,478		13,011		12,560
Reimbursement revenue	4,683		4,767		4,782		4,430		4,250
Gross management service revenue	19,100		18,718		18,585		17,745		17,096
Less: Reimbursable expenses	4,683		4,767		4,782		4,430		4,250
Net management service revenue	$	14,417	$	13,951	$	13,803	$	13,315	$	12,846

_______________________________________________

(1)     Includes a $0.2 million financing coordination fee.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

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		Q2 2017 SUPPLEMENTAL INFORMATION

Cole REITs and Other Real Estate Programs (cont.)

(unaudited, dollars in millions)

The following table shows the capital raised on behalf of programs managed by Cole Capital since 2009:

_______________________________________________

(1) Includes a $2.5 million investment made by VEREIT in order for CCIT III to break escrow and commence operations.

(2) Represents capital raised on behalf of Cole REITs for the six months ended June 30, 2017.

Source: Robert A. Stanger & Co., Inc.; Represents aggregate capital raised, excluding DRIP, on behalf of programs managed by Cole Capital.

See the Definitions section for a description of the Company's non-GAAP and operating metrics.

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		Q2 2017 SUPPLEMENTAL INFORMATION

Definitions

Annualized Rental Income is rental revenue under our leases on Operating Properties 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.

Assets Under Management represents the Cole REITs and other real estate programs' total gross real estate assets, including net investments in unconsolidated entities, net of gross intangible lease liabilities.

Cash Cap Rate equals the estimated future 12-month Cash NOI, excluding any rent concessions or abatements, at acquisition or disposition divided by the purchase or sale price. For properties acquired or disposed of as a portfolio, the amount presented represents the portfolio cash cap rate. For development projects, Cash Cap Rate equals the estimated future 12-month NOI from the date rent commences divided by the total estimated investment. For certain properties, the Cash Cap Rate is equal to future 12-month Contract Rental Revenue, excluding any rent concessions or abatements, divided by the purchase price or sale price, as the majority of the Company's properties are subject to Triple Net Leases.

Contract Rental Revenue includes minimum rent, percentage rent and other contingent consideration, and rental revenue from parking and storage space and excludes GAAP adjustments, such as straight-line rent and amortization of above-market lease assets and below-market lease liabilities. Contract Rental Revenue includes such revenues from properties subject to a direct financing lease, and beginning in 2017, omits the Contract Rental Revenue related to Excluded Properties. The Company believes that Contract Rental Revenue is a useful non-GAAP supplemental measure to investors and analysts for assessing the performance of the Company's REI segment. Therefore, Contract Rental Revenue should not be considered as an alternative to revenue, as computed in accordance with GAAP, or as an indicator of the Company's financial performance. Contract Rental Revenue may not be comparable to similarly titled measures of other companies.

The following table shows the calculation of the REI segment Contract Rental Revenue for the three months ended June 30, 2017 and 2016 (dollar amounts in thousands):

	Three Months Ended June 30,
	2017			2016
Rental income - as reported	$	286,291		$	311,352
Direct financing lease income - as reported	403			535
Adjustments:
Straight-line rent	(12,139		)	(16,252		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,248
Net direct financing lease adjustments	464			590
Other non-contract rental revenue	(441		)	—
Contract Rental Revenue - Excluded Properties	(701		)	—
Contract Rental Revenue	$	275,580		$	297,473

CPI is a lease in which base rent is adjusted based on changes in a consumer price index.

Debt Outstanding and Adjusted Debt Outstanding are non-GAAP measures that represent the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. Beginning in 2017, Adjusted Debt Outstanding omits the outstanding principal balance of mortgage notes secured by Excluded Properties. We believe that the presentation of Debt Outstanding and Adjusted Debt Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall liquidity, financial flexibility, capital structure and leverage. Debt Outstanding and Adjusted Debt Outstanding should not be considered as alternatives to the Company's consolidated debt balance as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with, and as a supplement to, the Company's financial information prepared in accordance with GAAP.

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		Q2 2017 SUPPLEMENTAL INFORMATION

Definitions (cont.)

The following table shows a reconciliation of Debt Outstanding and Adjusted Debt Outstanding to the amounts presented in accordance with GAAP on the balance sheet for the periods presented (dollar amounts in thousands):

	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Mortgage notes payable and other debt, net	$	2,381,031		$	2,586,917		$	2,671,106		$	2,861,210		$	2,938,072
Corporate bonds, net	2,228,422			2,227,307			2,226,224			2,225,157			3,522,297
Convertible debt, net	978,738			976,031			973,340			970,691			968,059
Credit facility, net	497,718			497,148			496,578			496,008			1,045,872
Mortgage notes payable associated with assets held for sale	—			—			—			—			—
Total debt - as reported	6,085,909			6,287,403			6,367,248			6,553,066			8,474,300
Adjustments:
Deferred financing costs, net	48,135			51,936			55,660			59,467			69,719
Net premiums	(18,599		)	(20,131		)	(22,012		)	(25,694		)	(29,319		)
Debt Outstanding	6,115,445			6,319,208			6,400,896			6,586,839			8,514,700
Debt Outstanding - Excluded Properties	(83,856		)	(41,820		)	—			—			—
Adjusted Debt Outstanding	$	6,031,589		$	6,277,388		$	6,400,896		$	6,586,839		$	8,514,700

Direct Financing Lease is 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 booked 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.

Double Net Lease ("NN") is a lease under which the tenant agrees to pay all operating expenses associated with the property (e.g., real estate taxes, insurance, maintenance), but excludes some or all major repairs (e.g. roof, structure, parking lot).

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Normalized EBITDA

Normalized EBITDA, as disclosed, represents EBITDA, or earnings before interest, taxes, depreciation and amortization, modified to exclude non-routine items such as acquisition-related expenses, litigation, merger and other non-routine transactions costs, net of insurance recoveries, gains or losses on sale of investment securities or mortgage notes receivable and legal settlements and insurance recoveries not in the ordinary course of business. We also exclude certain non-cash items such as impairments of goodwill and real estate and intangible assets, straight-line rental revenue, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, write-off of program development costs, and amortization of intangibles, above-market lease assets and below-market lease liabilities. Beginning in 2017, Normalized EBITDA omits the Normalized EBITDA impact of Excluded Properties. Management believes that excluding these costs from EBITDA 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. The Company believes that Normalized EBITDA is a useful non-GAAP supplemental measure to investors and analysts for assessing the performance of the Company's business segments. Therefore, Normalized EBITDA should not be considered as an alternative to net income, as computed in accordance with GAAP, or as an indicator of the Company's financial performance. The Company uses Normalized EBITDA as one measure of its operating performance when formulating corporate goals and evaluating the effectiveness of the Company's strategies. Normalized EBITDA may not be comparable to similarly titled measures of other companies.

Economic Occupancy Rate equals the sum of square feet leased (including month-to-month agreements) divided by Rentable Square Feet.

Enterprise Value equals the sum of the Implied Equity Market Capitalization, preferred stock and Net Debt.

Excluded Properties are 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.

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		Q2 2017 SUPPLEMENTAL INFORMATION

Definitions (cont.)

Excluded Properties during the three months ended and at March 31, 2017, included one vacant office property and one vacant industrial property, comprising an aggregate of 578,000 square feet with aggregate Debt Outstanding of $41.8 million. During the three months ended June 30, 2017, one additional office property and four additional industrial properties met the criteria to be Excluded Properties. The four industrial properties that met the criteria during the three months ended June 30, 2017, were transferred to the lender on June 27, 2017, to settle the related mortgage note obligation. Excluded Properties at June 30, 2017, included two office properties and one industrial property, all of which were vacant at that date. The Excluded Properties at June 30, 2017, comprised an aggregate of 991,000 square feet and each secured a mortgage note payable, with aggregate Debt Outstanding of $83.9 million.

Fixed Charge Coverage Ratio is the sum of (i) Interest Expense, excluding non-cash amortization, (ii) secured debt principal amortization and (iii) dividends attributable to preferred shares divided by Normalized EBITDA. Management believes that Fixed Charge Coverage Ratio is a useful supplemental measure of our ability to satisfy fixed financing obligations.

Flat Lease is a lease that requires equal rent payments, with no increases, throughout the initial term of the lease agreement. A Flat Lease may include a period of free rent at the beginning or end of the lease.

Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO")

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 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 GAAP.

NAREIT defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from disposition of property, depreciation and amortization of real estate assets and impairment write-downs on real estate including the pro rata share of adjustments for unconsolidated partnerships and joint ventures. We calculated FFO in accordance with NAREIT's definition described above.

In addition to FFO, we use 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, gains or losses on sale of investment securities or mortgage notes receivable and legal settlements and insurance recoveries not in the ordinary course of business. We also exclude certain non-cash items such as impairments of goodwill and intangible assets, straight-line rental revenue, 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. Effective January 1, 2017, we determined to 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 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.

GAAP is an abbreviation for generally accepted accounting principles in the United States.

Gross Leaseis a lease under which the landlord is responsible for all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs).

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Definitions (cont.)

Gross Real Estate Investments represent total gross real estate and related assets of Operating Properties, including net investments in unconsolidated entities, investment in direct financing leases, investment securities backed by real estate and loans held for investment, net of gross intangible lease liabilities.

Implied Equity Market Capitalization equals shares of common stock outstanding, including restricted stock awards, multiplied by the closing sale price of the Company's stock as reported on the New York Stock Exchange.

Industry is derived from the North American Industry Classification System, NAICS, which is a system used by Federal statistical agencies to classify business establishments, for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

Interest Expense, excluding non-cash amortization is a non-GAAP measure that represents interest expense incurred on the outstanding principal balance of our debt. This measure excludes (i) the amortization of deferred financing costs, premiums and discounts, which is included in interest expense in accordance with GAAP, and (ii)the impact of Excluded Properties and related non-recourse mortgage notes. We believe that the presentation of Interest Expense, excluding non-cash amortization, which shows the interest expense on our contractual debt obligations, provides useful information to investors to assess our overall solvency and financial flexibility. Interest Expense, excluding non-cash amortization should not be considered as an alternative to the Company's interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company's financial information prepared in accordance with GAAP.

The following table shows a reconciliation of Interest Expense, excluding non-cash amortization to interest expense presented in accordance with GAAP on the statements of operations for the periods presented (dollar amounts in thousands):

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Interest expense - as reported	$	(73,621	)	$	(73,743	)	$	(74,613	)	$	(79,869	)	$	(82,468	)
Less Adjustments:
Amortization of deferred financing costs and other non-cash charges	(6,399		)	(6,443		)	(6,514		)	(7,081		)	(7,470		)
Amortization of net premiums	1,797			1,881			2,731			3,723			4,000
Interest Expense, excluding non-cash amortization - Excluded Properties	(2,573		)	(1,058		)	—			—			—
Interest Expense, excluding non-cash amortization	$	(66,446	)	$	(68,123	)	$	(70,830	)	$	(76,511	)	$	(78,998	)

Interest Coverage Ratio equals Normalized EBITDA divided by Interest Expense, excluding non-cash amortization. Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations.

Investment-Grade Tenants are those with a Standard & Poor’s credit rating of BBB- or higher or a Moody’s credit rating of Baa3 or higher.  The ratings may reflect those assigned by Standard & Poor’s or Moody’s to the lease guarantor or the parent company, as applicable.

Metropolitan Statistical Area (MSA) is a large metropolitan area represented by a large group of zip codes, as defined by Real Capital Analytics.

Modified Gross Lease is a lease under which the landlord is responsible for most expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs), but passes through some operating expenses to the tenant.

NAV per share represents the net asset value of the respective share class.

Net Cole Capital G&A Expense

In its capacity as advisor to the Cole REITs, Cole Capital incurs certain costs on behalf of the Cole REITs, which are reimbursable. In accordance with GAAP, Cole Capital records these costs as general and administrative expenses and the reimbursements as revenue in the same period. We believe Net Cole Capital G&A Expense is a helpful non-GAAP supplemental measure in determining the effective cost to the Company, eliminating any gross up presentation required by GAAP.

Net Cole Capital Revenue

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		Q2 2017 SUPPLEMENTAL INFORMATION

Definitions (cont.)

Cole Capital generally receives a selling commission, dealer manager fee and/or a distribution and stockholder servicing fee based on the gross offering proceeds related to the sale of shares of the Cole REITs’ common stock. The Company reallows all or a portion of these fees to participating broker-dealers and records the expense at the same time it recognizes the related revenue. In its capacity as advisor to the Cole REITs, Cole Capital incurs certain costs on behalf of the Cole REITs, which are reimbursable. In accordance with GAAP, Cole Capital records these costs as general and administrative expenses and the reimbursements as revenue in the same period. We believe Net Cole Capital Revenue is a helpful non-GAAP supplemental measure in determining the effective revenue earned by the Company, eliminating any gross up presentation required by GAAP.

Net Debt is a non-GAAP measure used to show the Company's Adjusted Debt Outstanding, less all cash and cash equivalents. We believe that the presentation of Net Debt provides useful information to investors because our management reviews Net Debt as part of its management of our overall liquidity, financial flexibility, capital structure and leverage.

Net Debt Leverage Ratio equals Net Debt divided by Gross Real Estate Investments. We believe that the presentation of Net Debt Leverage Ratio provides useful information to investors because our management reviews Net Debt Leverage Ratio as part of its management of our overall liquidity, financial flexibility, capital structure and leverage.

Net Debt to Normalized EBITDA Annualized equals Net Debt divided by the current quarter Normalized EBITDA multiplied by four. We believe that the presentation of Net Debt to Normalized EBITDA Annualized provides useful information to investors because our management reviews Net Debt to Normalized EBITDA Annualized as part of its management of our overall liquidity, financial flexibility, capital structure and leverage.

Net Operating Income ("NOI") and Cash NOI

NOI is a non-GAAP performance measure used to evaluate the operating performance of a real estate company. NOI represents rental and other property income and tenant reimbursement income less property operating expenses. NOI excludes depreciation and amortization, general and administrative expenses, acquisition-related expenses and litigation and other non-routine costs. Cash NOI excludes the impact of certain GAAP adjustments to rental revenue, such as straight-line rent adjustments and amortization of above-market intangible lease assets and below-market lease intangible liabilities. Beginning in 2017, Cash NOI omits the Cash NOI impact of Excluded Properties. It is management's view that NOI and Cash NOI provide investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis. NOI and Cash NOI should not be considered as an alternative to operating income. Further, NOI and Cash NOI may not be comparable to similarly titled measures of other companies.

The following table shows the calculation of the REI segment NOI and Cash NOI for the periods presented (dollar amounts in thousands):

	Three Months Ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Operating income	$	49,991		$	75,808		$	86,187		$	85,468		$	84,628
Acquisition-related expenses	720			617			923			90			27
Litigation, merger and other non-routine costs, net of insurance recoveries	14,411			12,875			1,512			4,630			2,917
General and administrative	14,294			12,560			13,267			12,069			13,701
Depreciation and amortization	179,433			178,297			182,190			187,897			190,236
Impairment of real estate	17,769			6,725			6,606			6,872			8,825
NOI	276,618			286,882			290,685			297,026			300,334
Straight-line rent, net of bad debt expense related to straight-line rent	(10,870		)	(12,797		)	(13,163		)	(12,319		)	(15,663		)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,703			1,305			1,220			1,632			1,248
Net direct financing lease adjustments	464			621			544			571			590
Cash NOI - Excluded Properties	447			(780		)	—			—			—
Cash NOI	$	268,362		$	275,231		$	279,286		$	286,910		$	286,509

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		Q2 2017 SUPPLEMENTAL INFORMATION

Definitions (cont.)

Normalized Cash NOI equals our Cash NOI for our most recently reported quarter and eliminates the Cash NOI for properties acquired or developments completed during the most recently reported quarter and replaces Cash NOI for the partial period with an amount estimated to be equivalent to Cash NOI for the full period. Additionally, Normalized Cash NOI eliminates the Cash NOI contributed by properties disposed of during the most recently reported period. It is management's view that Normalized Cash NOI provides investors relevant and useful information because it reflects only the Cash NOI of properties owned as of the most recent reporting period. Normalized Cash NOI should not be considered as an alternative to operating income.

Normalized EBITDAAnnualized equals Normalized EBITDA, for the respective quarter, multiplied by four.

Normalized EBITDA Margin is a measurement of a company's operating profitability. It is equal to Normalized EBITDA divided by Net Cole Capital Revenue and other income. Management believes that Normalized EBITDA Margin is a useful supplemental measure of our operating profitability.

Normalized Net Cole Capital G&A Expense equals Net Cole Capital G&A Expense adjusted for the net change in program development costs. We believe Normalized Net G&A Expense is a helpful supplemental measure in determining the effective cost to the Company, eliminating any gross up presentation required by GAAP and adjusting to include costs incurred and recorded as program development costs on the balance sheet.

Operating Properties refers to all properties owned by the Company and beginning in 2017, it omits Excluded Properties owned by the Company as of the reporting date.

Property Operating Expense includes reimbursable and non-reimbursable costs to operate a property, including real estate taxes, utilities, insurance, repairs, maintenance, legal, property management fees, etc.

Rentable Square Feet is leasable square feet of Operating Properties.

Triple Net Lease ("NNN") is a lease under which the tenant agrees to pay all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs).

Unencumbered Asset Ratio equals unencumbered Gross Real Estate Investments divided by Gross Real Estate Investments. Management believes that Unencumbered Asset Ratio is a useful supplemental measure of our overall liquidity and leverage.

Weighted Average Remaining Lease Term is the number of years remaining on each respective lease, weighted based on Annualized Rental Income of Operating Properties.

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