Document

EX-99.2 3 vereitex992supplementalq22.htm EX-99.2 Document

Exhibit 99.2



						Q2 2021 SUPPLEMENTAL INFORMATION


VEREIT Supplemental Information
June 30, 2021


Section			Page

Company Overview			5

Quarterly Financial Summary			7
Financial and Operations Statistics and Ratios			8
Key Balance Sheet Metrics and Capital Structure			9
Balance Sheets			10
Statements of Operations			11
Funds From Operations (FFO)			12
Adjusted Funds From Operations (AFFO)			13
EBITDAre and Normalized EBITDA			14
Net Operating Income			15
Same Store Contract Rental Revenue			16
Debt and Preferred Equity Summary			17
Credit Facility and Corporate Bond Covenants			19
Acquisitions and Dispositions			20
Diversification Statistics			21
Top 10 Concentrations			22
Tenants Comprising Over 1% of Annualized Rental Income			24
Tenant Industry Diversification			25
Property Geographic Diversification			26
Lease Expirations			28
Lease Summary			32
Property Type Diversification and Rent Coverage			34
Unconsolidated Joint Venture Investment Summary			39
Definitions			40

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



About the Data

This data and other information described herein are as of and for the three months ended June 30, 2021, unless otherwise indicated. Certain balances have been reclassified to conform with the current period's presentations, including partnership fees earned from services provided to our unconsolidated joint ventures, which were previously included in other income, net. The Company effected a one-for-five reverse stock split of its common stock after markets closed on December 17, 2020, whereby every five shares of VEREIT's issued and outstanding shares of common stock, $0.01 par value per share, were converted into one share of common stock, $0.01 par value per share. Prior period shares and per share amounts have been updated to reflect the reverse stock split. 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, 2020 and Quarterly Reports on Form 10-Q for the periods ended June 30, 2021, March 31, 2021, September 30, 2020, and June 30, 2020.

Our business was not materially impacted during the six months ended June 30, 2021 or during the year ended December 31, 2020 by the COVID-19 pandemic. During the three months ended June 30, 2021 our rent collection was 99.4% of rental revenue and as of July 21, 2021, we collected $14.2 million of deferred rent, representing approximately 100% of amounts due through June 30, 2021. The full extent of the future impact of the COVID-19 pandemic on our business, financial condition, liquidity and results of operations remains uncertain.

Subsequent to the issuance of the Company’s consolidated financial statements for the year ended December 31, 2020, the Company identified an overstatement in amounts recorded to depreciation expense. As a result, the Company revised the accompanying consolidated balance sheets as of December 31, 2020, September 30, 2020 and June 30, 2020 to reduce accumulated depreciation and amortization and accumulated deficit by $30.6 million, $29.7 million and $28.8 million, respectively. The Company also revised the accompanying statements of operations for the three month periods ended December 31, 2020, September 30, 2020 and June 30, 2020 to reduce depreciation and amortization expense by $0.9 million, $0.9 million and $1.9 million, respectively.

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



Forward-Looking Statements

Information set forth herein contains “forward-looking statements” which reflect the Company's expectations and projections regarding future events and plans, the Company's future financial condition, results of operations, liquidity and business, including leasing and occupancy, acquisitions, dispositions, rent receipts, rent relief requests, rent relief granted, the payment of future dividends, the impact of the coronavirus (COVID-19) on the Company's business, the pending merger (the “Merger”) with Realty Income Corporation and the redemption of the Series F Preferred Stock and Series F Preferred Units. Generally, the words "anticipates," "assumes," "believes," "continues," "could," "estimates," "expects," "goals," "intends," "may," "plans," "projects," "seeks," "should," "targets," "will," variations of such words and similar expressions identify forward-looking statements. These forward-looking statements are based on information currently available and involve a number of known and unknown assumptions and risks, uncertainties and other factors, which are difficult to predict and beyond the Company's control, that could cause actual events and plans or could cause the Company's business, financial condition, liquidity and results of operations to differ materially from those expressed or implied in the forward-looking statements. Further, information regarding historical rent collections should not serve as an indication of future rent collections.

The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the Company's ability to consummate the proposed Merger and the timing of the closing of the proposed Merger; the potential impact of the announcement of the proposed transactions or consummation of the proposed transactions on business relationships, including with tenants, clients, employees, customers and competitors; litigation associated with the Merger; costs, fees, expenses and charges related to the proposed transactions; risks as a result of the restrictions imposed by operating covenants contained in the Merger Agreement restricting the Company generally from issuing equity, incurring or pre-paying debt and limitations on the use of its revolving credit facility; the duration and extent of the impact of COVID-19 on our business and the businesses of our tenants (including their ability to timely make rental payments) and the economy generally; federal, state, or local legislation or regulation that could impact the timely payment of rent by tenants in light of COVID-19; the Company's ability to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all; risks associated with tenant, geographic and industry concentrations with respect to the Company's properties; risks accompanying the management of its industrial and office partnerships; the impact of impairment charges in respect of certain of the Company's properties; unexpected costs or liabilities that may arise from potential dispositions, including related to limited partnership, tenant-in-common and Delaware statutory trust real estate programs and the Company's management with respect to such programs; competition in the acquisition and disposition of properties and in the leasing of its properties including that the Company may be unable to acquire, dispose of, or lease properties on advantageous terms or at all; risks associated with bankruptcies or insolvencies of tenants, from tenant defaults generally or from the unpredictability of the business plans and financial condition of the Company's tenants, which are heightened as a result of the COVID-19 pandemic; risks associated with the Company's substantial indebtedness, including that such indebtedness may affect the Company's ability to pay dividends and that the terms and restrictions within the agreements governing the Company's indebtedness may restrict its borrowing and operating flexibility; the ability to retain or hire key personnel; and the continuation or deterioration of current market conditions. Additional factors that may affect future results are contained in the Company's filings with the SEC, which are available at the SEC’s website at www.sec.gov. The Company 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.

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						Q2 2021 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.

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. The Company 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, 2021, approximately 37.8% of the Company's Annualized Rental Income was earned from Investment-Grade Tenants, Economic Occupancy Rate was 97.1% and the Weighted Average Remaining Lease Term was 8.5 years.

Tenants, Trademarks and Logos

VEREIT is not affiliated or associated with, is not endorsed by, does not endorse, and is not sponsored by or a sponsor of the tenants or of their products or services pictured or mentioned. The names, logos and all related product and service names, design marks and slogans are the trademarks or service marks of their respective companies.

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

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						Q2 2021 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						Priscilla Almodovar, Independent Director

Lauren Goldberg, Executive Vice President, General Counsel and Secretary						David B. Henry, Independent Director

Paul H. McDowell, Executive Vice President and Chief Operating Officer						Mary Hogan Preusse, Independent Director

Thomas W. Roberts, Executive Vice President and Chief Investment Officer						Richard J. Lieb, Independent Director

Gavin B. Brandon, Senior Vice President and Chief Accounting Officer						Eugene A. Pinover, Independent Director

						Julie G. Richardson, Independent Director

						Susan E. Skerritt, Independent Director

						Glenn J. Rufrano, Chief Executive Officer and Director

Corporate Offices and Contact Information


2325 E. Camelback Road, 9th Floor						19 West 44th Street, Suite 1401
Phoenix, AZ 85016						New York, NY 10036
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.

462 South 4th Street, Suite 1600

Louisville, KY 40202

855-866- 0787

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



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

The following table summarizes the Company's quarterly financial results and portfolio metrics.


	Three Months Ended
Financial Results	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Total revenues	$	291,267		$	290,809		$	287,909		$	295,278		$	278,997
Net income (loss)	$	77,903		$	120,723		$	(36,933)		$	98,917		$	56,105
Basic and diluted net income (loss) per share attributable to common stockholders and limited partners	$	0.31		$	0.50		$	(0.20)		$	0.41		$	0.20
Normalized EBITDA	$	251,606		$	251,171		$	246,689		$	252,933		$	238,479
FFO attributable to common stockholders and limited partners	$	175,652		$	178,988		$	69,313		$	171,233		$	155,943
FFO attributable to common stockholders and limited partners per diluted share	$	0.76		$	0.78		$	0.31		$	0.79		$	0.72
AFFO attributable to common stockholders and limited partners	$	186,596		$	183,047		$	169,798		$	166,547		$	161,083
AFFO attributable to common stockholders and limited partners per diluted share	$	0.81		$	0.80		$	0.76		$	0.77		$	0.75
Dividends declared per common share	$	0.46		$	0.46		$	0.39		$	0.39		$	0.39
Weighted-average shares outstanding - diluted	229,991,566			229,429,867			222,511,425			217,027,675			215,910,613

Portfolio Metrics
Operating Properties	3,885			3,855			3,831			3,820			3,836
Rentable Square Feet (in thousands)	88,864			88,747			89,493			88,869			88,947
Economic Occupancy Rate	97.1		%	98.0		%	98.1		%	98.5		%	98.8		%
Weighted Average Remaining Lease Term (years)	8.5			8.4			8.4			8.4			8.5
Investment-Grade Tenants (1)	37.8		%	37.8		%	38.7		%	37.7		%	37.0		%

___________________________________

(1)The weighted-average credit rating of our investment-grade tenants was BBB+ as of June 30, 2021.

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



Financial and Operations Statistics and Ratios (unaudited, dollars in thousands)


	Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Interest Coverage Ratio
Interest Expense, excluding non-cash amortization (1)	$	56,866		$	58,860		$	63,153		$	64,713		$	63,636
Normalized EBITDA (2)	251,606			251,171			246,689			252,933			238,479
Interest Coverage Ratio	4.42x			4.27x			3.91x			3.91x			3.75x

Fixed Charge Coverage Ratio
Interest Expense, excluding non-cash amortization (1)	$	56,866		$	58,860		$	63,153		$	64,713		$	63,636
Secured debt principal amortization	524			687			858			834			861
Dividends attributable to preferred shares	6,248			6,525			7,923			10,771			12,948
Total fixed charges	63,638			66,072			71,934			76,318			77,445
Normalized EBITDA (2)	251,606			251,171			246,689			252,933			238,479
Fixed Charge Coverage Ratio	3.95x			3.80x			3.43x			3.31x			3.08x

	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Net Debt Ratios
Net Debt (3)	$	5,490,670		$	5,476,756		$	5,564,553		$	5,832,236		$	5,804,109
Normalized EBITDA annualized	1,006,424			1,004,684			986,756			1,011,732			953,916
Net Debt to Normalized EBITDA annualized ratio	5.46x			5.45x			5.64x			5.76x			6.08x

Net Debt (3)	$	5,490,670		$	5,476,756		$	5,564,553		$	5,832,236		$	5,804,109
Gross Real Estate Investments (3)	14,551,239			14,485,227			14,646,970			14,621,857			14,704,629
Net Debt Leverage Ratio	37.7		%	37.8		%	38.0		%	39.9		%	39.5		%

Unencumbered Assets/Real Estate Assets
Unencumbered Gross Real Estate Investments	$	12,600,755		$	12,455,130		$	11,968,277		$	11,936,645		$	11,933,717
Gross Real Estate Investments (3)	14,551,239			14,485,227			14,646,970			14,621,857			14,704,629
Unencumbered Asset Ratio	86.6		%	86.0		%	81.7		%	81.6		%	81.2		%

___________________________________

(1)Refer to the Statements of Operations section for interest expense calculated in accordance with GAAP and to the Definitions section for the required reconciliation to the most directly comparable GAAP financial measure.

(2)Refer to the Statements of Operations section for net income calculated in accordance with GAAP and to the EBITDAre and Normalized EBITDA section for the required reconciliation to the most directly comparable GAAP financial measure.

(3)Refer to the Balance Sheets section for total debt and real estate investments, at cost calculated in accordance with GAAP and to the Definitions section for the required reconciliation to the most directly comparable GAAP financial measure.

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



Key Balance Sheet Metrics and Capital Structure (unaudited, dollars and shares in thousands, except per share amounts)


						Common equity			63.3%

						Corporate bonds			27.8%

						Mortgage notes payable			6.0%





						Preferred equity			2.2%





						Proportionate share of amounts for Unconsolidated Joint Ventures			0.7%

Fixed vs. Variable Rate Debt


Fixed	99.3	%

Variable	0.7	%


VEREIT Capitalization Table
	Wtd. Avg. Maturity (Years)	Rate (1)		June 30, 2021
Diluted shares outstanding				230,589
Stock price				$	45.93
Implied Equity Market Capitalization				$	10,590,953

Series F Perpetual Preferred (2)		6.70	%	$	373,025

Mortgage notes payable	2.1	4.86	%	1,007,108
Proportionate share of amounts for Unconsolidated Joint Ventures	3.6	2.90	%	109,678

Total secured debt	2.2	4.67	%	$	1,116,786







Corporate bonds due 2024	2.6	4.60	%	500,000
Corporate bonds due 2025	4.3	4.63	%	550,000
Corporate bonds due 2026	4.9	4.88	%	600,000
Corporate bonds due 2027	6.1	3.95	%	600,000
Corporate bonds due January 2028	6.5	3.40	%	600,000
Corporate bonds due June 2028	7.0	2.20	%	500,000
Corporate bonds due 2029	8.5	3.10	%	600,000
Corporate bonds due 2032	11.5	2.85	%	700,000
Total unsecured debt	6.6	3.68	%	$	4,650,000

Total Adjusted Principal Outstanding	5.8	3.87	%	$	5,766,786

Total Capitalization				$	16,730,764
Cash and cash equivalents				(275,496)
Pro rata share of Unconsolidated Joint Ventures' cash and cash equivalents				(621)
Enterprise Value				$	16,454,647

Net Debt/Enterprise Value				33.4		%
Net Debt/Normalized EBITDA Annualized				5.46x
Net Debt + Preferred (2)/Normalized EBITDA Annualized				5.83x
Fixed Charge Coverage Ratio				3.95x
Liquidity (3)				$	1,773,573

___________________________________

(1)Weighted average interest rate for variable rate debt represents the interest rate in effect as of June 30, 2021.

(2)Balance represents 14.9 million shares of Series F Preferred Stock (and 14.9 million corresponding general partner Series F Preferred Units) and 49,766 limited partner Series F Preferred Units outstanding at June 30, 2021, multiplied by the liquidation preference of $25 per share. On July 16, 2021, the Company announced that it intends to redeem all Series F Preferred Stock on August 15, 2021. Concurrently with the redemption of the Series F Preferred Stock, VEREIT Operating Partnership, L.P. (“VEREIT OP”) intends to redeem all outstanding Series F Preferred Units of VEREIT OP in accordance with the terms of VEREIT OP’s agreement of limited partnership.

(3)Liquidity represents cash and cash equivalents of $275.5 million and approximately $1.5 billion available capacity on our $1.5 billion revolving credit facility. Available capacity on our revolving credit facility is reduced by letters of credit outstanding of $1.9 million at June 30, 2021.

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



Balance Sheets (unaudited, in thousands)


	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Assets
Real estate investments, at cost:
Land	$	2,724,975	$	2,698,232	$	2,699,110	$	2,691,122	$	2,705,149
Buildings, fixtures and improvements	9,912,886		9,941,903		10,032,055		10,046,076		10,117,636
Intangible lease assets	1,908,178		1,883,826		1,872,461		1,872,899		1,891,831
Total real estate investments, at cost	14,546,039		14,523,961		14,603,626		14,610,097		14,714,616
Less: accumulated depreciation and amortization	3,917,175		3,861,411		3,833,084		3,799,653		3,727,350
Total real estate investments, net	10,628,864		10,662,550		10,770,542		10,810,444		10,987,266
Operating lease right-of-use assets	188,628		191,443		195,518		205,346		208,037
Investment in unconsolidated entities	80,487		80,513		81,639		100,339		86,300
Cash and cash equivalents	275,496		318,561		523,539		207,321		278,883
Restricted cash	9,584		12,704		13,842		14,955		21,203
Rent and tenant receivables and other assets, net	365,186		368,926		366,620		391,239		382,409
Goodwill	1,337,773		1,337,773		1,337,773		1,337,773		1,337,773

Real estate assets held for sale, net	28,977		4,888		65,583		1,896		48,093
Total assets	$	12,914,995	$	12,977,358	$	13,355,056	$	13,069,313	$	13,349,964


Liabilities and Equity
Mortgage notes payable, net	$	1,002,496	$	1,035,328	$	1,328,835	$	1,330,174	$	1,393,652
Corporate bonds, net	4,588,286		4,586,252		4,584,230		3,406,389		3,404,935
Convertible debt, net	—		—		—		252,077		270,152
Credit facility, net	—		—		—		896,630		896,314
Below-market lease liabilities, net	115,831		117,121		120,938		124,009		130,208
Accounts payable and accrued expenses	117,445		116,486		117,015		112,101		112,551
Derivative, deferred rent and other liabilities	64,371		62,944		63,204		162,952		161,538
Distributions payable	106,999		106,989		89,514		85,420		85,231


Operating lease liabilities	199,561		202,024		209,104		214,102		215,322
Total liabilities	6,194,989		6,227,144		6,512,840		6,583,854		6,669,903

Series F preferred stock	149		149		189		189		309
Common stock	2,291		2,291		2,289		2,183		2,156
Additional paid-in capital	13,354,657		13,350,661		13,449,412		13,057,408		13,264,911
Accumulated other comprehensive income (loss)	732		634		536		(97,008)		(106,109)
Accumulated deficit	(6,644,896)		(6,610,678)		(6,617,380)		(6,484,456)		(6,488,521)
Total stockholders' equity	6,712,933		6,743,057		6,835,046		6,478,316		6,672,746
Non-controlling interests	7,073		7,157		7,170		7,143		7,315
Total equity	6,720,006		6,750,214		6,842,216		6,485,459		6,680,061
Total liabilities and equity	$	12,914,995	$	12,977,358	$	13,355,056	$	13,069,313	$	13,349,964

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



Statements of Operations (unaudited, in thousands, except per share data)


	Three Months Ended
	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Revenues:
Rental	$	290,567	$	290,309	$	287,431	$	293,692	$	278,576
Fees from managed partnerships	700		500		478		1,586		421
Total revenues	291,267		290,809		287,909		295,278		278,997
Operating expenses:
Acquisition-related	1,428		1,354		1,048		1,050		1,169
Merger, litigation and non-routine costs, net	6,605		68		10,925		105		(118)
Property operating	29,174		30,605		31,979		31,400		29,098

General and administrative	16,451		14,526		15,399		14,774		16,120
Depreciation and amortization	105,839		108,075		107,205		108,257		108,733
Impairments	14,129		31,849		28,204		16,397		12,094

Total operating expenses	173,626		186,477		194,760		171,983		167,096

Other income (expense):
Interest expense	(59,291)		(60,736)		(68,416)		(66,935)		(65,613)
Gain (loss) on extinguishment and forgiveness of debt, net	35		(2,132)		(67)		61		(200)
Other income, net	3,089		3,666		5,584		73		778
Loss on derivative instruments, net	—		—		(85,392)		—		—
Equity in income and gain on disposition of unconsolidated entities	464		447		1,133		663		1,497
Gain on disposition of real estate and held for sale assets, net	16,896		76,074		18,434		42,814		8,795
Total other (expenses) income, net	(38,807)		17,319		(128,724)		(23,324)		(54,743)
Income (loss) before taxes	78,834		121,651		(35,575)		99,971		57,158
Provision for income taxes	(931)		(928)		(1,358)		(1,054)		(1,053)


Net income (loss)	77,903		120,723		(36,933)		98,917		56,105
Net (income) loss attributable to non-controlling interests	(7)		(76)		46		(51)		(31)
Net income (loss) attributable to the General Partner	$	77,896	$	120,647	$	(36,887)	$	98,866	$	56,074

Basic and diluted net income (loss) per share attributable to common stockholders and limited partners	$	0.31	$	0.50	$	(0.20)	$	0.41	$	0.20

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



Funds From Operations (FFO) (unaudited, in thousands, except share and per share data)


	Three Months Ended
	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Net income (loss)	$	77,903	$	120,723	$	(36,933)	$	98,917	$	56,105
Dividends on Series F Preferred Stock	(6,248)		(6,525)		(7,923)		(10,771)		(12,948)
Gain on disposition of real estate assets, net	(16,896)		(76,074)		(18,965)		(42,814)		(8,795)
Depreciation and amortization of real estate assets	105,440		107,700		106,825		107,869		108,341
Impairment of real estate	14,129		31,849		24,852		16,397		12,094
Proportionate share of adjustments for unconsolidated entities	1,324		1,315		1,457		1,635		1,146
FFO attributable to common stockholders and limited partners	$	175,652	$	178,988	$	69,313	$	171,233	$	155,943



Weighted-average shares outstanding - basic	229,251,460		229,159,472		222,152,574		216,737,561		215,673,313
Effect of weighted-average Limited Partner OP Units and dilutive securities (1)	740,106		270,395		358,851		290,114		237,300
Weighted-average shares outstanding - diluted (2)	229,991,566		229,429,867		222,511,425		217,027,675		215,910,613

FFO attributable to common stockholders and limited partners per diluted share (3)	$	0.76	$	0.78	$	0.31	$	0.79	$	0.72

___________________________________

(1)Dilutive securities include unvested restricted stock units and stock options.

(2)Weighted-average shares for all periods presented exclude the effect of the Company's convertible debt which was fully repaid in cash as of December 31, 2020 and the underlying restricted stock units that would not have met the vesting criteria based on certain performance targets as of the end of the respective reporting period.

(3)Refer to the Statements of Operations section for basic and diluted net income (loss) per share attributable to common stockholders and limited partners.

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Adjusted Funds From Operations (AFFO) (unaudited, in thousands, except share and per share data)


	Three Months Ended
	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
FFO attributable to common stockholders and limited partners	$	175,652	$	178,988	$	69,313	$	171,233	$	155,943

Acquisition-related expenses	1,428		1,354		1,048		1,050		1,169
Merger, litigation and non-routine costs, net	6,605		68		10,925		105		(118)
Impairment of intangibles and right of use assets	—		—		3,352		—		—



Loss (gain) on investments	22		(695)		(313)		(76)		142
Loss on derivative instruments, net	—		—		85,392		—		—
Amortization of premiums and discounts on debt and investments, net	555		87		(193)		(201)		(362)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,830		1,547		1,428		393		788
Net direct financing lease adjustments	374		366		379		381		372
Amortization and write-off of deferred financing costs	2,649		2,555		6,262		3,114		2,898


(Gain) loss on extinguishment and forgiveness of debt, net	(35)		2,132		67		(61)		200
Straight-line rent	(4,613)		(4,219)		(7,108)		(12,595)		(3,404)
Equity-based compensation	3,903		2,669		2,952		2,991		3,857

Other adjustments, net	(1,638)		(1,661)		(3,536)		379		441
Proportionate share of adjustments for unconsolidated entities	(136)		(144)		(170)		(166)		(843)

AFFO attributable to common stockholders and limited partners	$	186,596	$	183,047	$	169,798	$	166,547	$	161,083



Weighted-average shares outstanding - basic	229,251,460		229,159,472		222,152,574		216,737,561		215,673,313
Effect of weighted-average Limited Partner OP Units and dilutive securities (1)	740,106		270,395		358,851		290,114		237,300
Weighted-average shares outstanding - diluted (2)	229,991,566		229,429,867		222,511,425		217,027,675		215,910,613

AFFO attributable to common stockholders and limited partners per diluted share (3)	$	0.81	$	0.80	$	0.76	$	0.77	$	0.75

___________________________________

(1)Dilutive securities include unvested restricted stock units and stock options.

(3)Refer to the Statements of Operations section for basic and diluted net income (loss) per share attributable to common stockholders and limited partners.

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



EBITDAre and Normalized EBITDA (unaudited, in thousands)


	Three Months Ended
	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Net income (loss)	$	77,903	$	120,723	$	(36,933)	$	98,917	$	56,105
Adjustments:
Interest expense	59,291		60,736		68,416		66,935		65,613
Depreciation and amortization	105,839		108,075		107,205		108,257		108,733
Provision for income taxes	931		928		1,358		1,054		1,053
Proportionate share of adjustments for unconsolidated entities	2,267		2,249		2,443		2,451		1,775

Gain on disposition of real estate assets, net	(16,896)		(76,074)		(18,965)		(42,814)		(8,795)
Impairment of real estate	14,129		31,849		24,852		16,397		12,094
EBITDAre	$	243,464	$	248,486	$	148,376	$	251,197	$	236,578
Impairment of intangibles and right of use assets	—		—		3,352		—		—


Acquisition-related expenses	1,428		1,354		1,048		1,050		1,169
Merger, litigation and non-routine costs, net	6,605		68		10,925		105		(118)
Loss (gain) on investments	22		(695)		(313)		(76)		142
Loss on derivative instruments, net	—		—		85,392		—		—
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,830		1,547		1,428		393		788
(Gain) loss on extinguishment and forgiveness of debt, net	(35)		2,132		67		(61)		200
Net direct financing lease adjustments	374		366		379		381		372



Other adjustments, net	(2,050)		(2,055)		(3,919)		(8)		54
Proportionate share of adjustments for unconsolidated entities	(32)		(32)		(46)		(48)		(706)

Normalized EBITDA	$	251,606	$	251,171	$	246,689	$	252,933	$	238,479

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Net Operating Income (unaudited, dollars in thousands)

NOI and Cash NOI


	Three Months Ended
	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Rental revenue - as reported (1)	$	290,567	$	290,309	$	287,431	$	293,692	$	278,576
Property operating expense - as reported	(29,174)		(30,605)		(31,979)		(31,400)		(29,098)
NOI	261,393		259,704		255,452		262,292		249,478
Adjustments:
Straight-line rent	(4,613)		(4,219)		(7,108)		(12,595)		(3,404)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,830		1,547		1,428		393		788
Net direct financing lease adjustments	374		366		379		381		372
Other non-cash adjustments	(13)		(18)		—		—		—
Proportionate share of amounts for Unconsolidated Joint Ventures	2,525		2,507		2,799		2,876		2,475

Cash NOI	$	261,496	$	259,887	$	252,950	$	253,347	$	249,709

___________________________________

(1)Rental revenue includes percentage rent of $1.1 million, $1.7 million, $2.9 million, $1.0 million and $1.4 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

Normalized Cash NOI


	Three Months Ended
	June 30, 2021
Cash NOI	$	261,496
Adjustments for intra-quarter acquisitions and dispositions (1)	1,747
Normalized Cash NOI	$	263,243

___________________________________

(1)The adjustment eliminates Cash NOI for properties acquired during the three months ended June 30, 2021 and replaces Cash NOI for the partial period with an amount estimated to be equivalent to Cash NOI for the full period. The adjustment also eliminates Cash NOI for properties disposed of during the three months ended June 30, 2021.

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

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



						Q2 2021 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 and properties owned by unconsolidated joint ventures that were owned for the entirety of both the current and prior reporting periods, except for development or redevelopment properties. The following tables show the Company's same store portfolio statistics, which for the three months ended June 30, 2021 included 3,752(1) Operating Properties, with 85.0 million aggregate square feet, acquired prior to April 1, 2020 and owned through June 30, 2021 and the pro rata share of Contract Rental Revenue from properties owned by unconsolidated joint ventures.


	Three Months Ended June 30,						Increase/(Decrease)
	2021			2020			$ Change		% Change
Contract Rental Revenue	$	255,238		$	242,472		$	12,766	5.3	%
Economic Occupancy Rate	97.0		%	99.1		%	N/A		(2.1)	%


		Contract Rental Revenue
	Number of	Three Months Ended June 30,				Increase/(Decrease)
	Properties	2021		2020		$ Change		% Change
Retail	2,042	$	119,316	$	117,446	$	1,870	1.6	%
Restaurant	1,498	51,661		41,168		10,493		25.5	%
Industrial	146	44,944		43,921		1,023		2.3	%
Office	58	39,282		39,879		(597)		(1.5)	%
Other (2)	8	35		58		(23)		(39.7)	%
Total	3,752	$	255,238	$	242,472	$	12,766	5.3	%

___________________________________

(1)Development and expansion properties are included in the same store population if the placed in service date was prior to April 1, 2020.

(2)Other properties include 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 | 16



						Q2 2021 SUPPLEMENTAL INFORMATION



Adjusted Principal Outstanding and Preferred Equity Summary (unaudited, dollars in thousands)


Principal Payments Due	Total		2021		2022		2023		2024		2025		2026		2027		Thereafter
Mortgage notes payable	$	1,007,108	$	15,705	$	239,201	$	124,217	$	621,021	$	1,078	$	1,138	$	1,202	$	3,546

Corporate bonds	4,650,000		—		—		—		500,000		550,000		600,000		600,000		2,400,000

Proportionate share of amounts for Unconsolidated Joint Ventures	109,678		—		—		23,672		53,850		—		—		32,156		—
Total Adjusted Principal Outstanding	$	5,766,786	$	15,705	$	239,201	$	147,889	$	1,174,871	$	551,078	$	601,138	$	633,358	$	2,403,546


Debt Type	Percentage of Adjusted Principal Outstanding		Weighted-Average Interest Rate		Weighted-Average Years to Maturity
Mortgage notes payable	17.5	%	4.86	%	2.1

Corporate bonds	80.6	%	3.68	%	6.6

Proportionate share of amounts for Unconsolidated Joint Ventures	1.9	%	2.90	%	3.6
Total	100.0	%	3.87	%	5.8


Debt Type	Percentage of Adjusted Principal Outstanding		Weighted-Average Interest Rate		Weighted-Average Years to Maturity
Total unsecured debt	80.6	%	3.68	%	6.6
Total secured debt	19.4	%	4.67	%	2.2
Total	100.0	%	3.87	%	5.8

Total fixed-rate debt	99.3	%	3.88	%	5.8
Total variable-rate debt	0.7	%	2.43	%	1.0
Total	100.0	%	3.87	%	5.8


Preferred Equity	Balance (1)		Dividend Rate
Series F preferred stock	$	373,025	6.7	%

___________________________________

(1)Balance represents 14.9 million shares of Series F Preferred Stock (and 14.9 million corresponding general partner Series F Preferred Units) and 49,766 limited partner Series F Preferred Units outstanding at June 30, 2021, multiplied by the liquidation preference of $25 per share. On July 16, 2021, the Company announced that it intends to redeem all Series F Preferred Stock on August 15, 2021. Concurrently with the redemption of the Series F Preferred Stock, VEREIT OP intends to redeem all outstanding Series F Preferred Units of VEREIT OP in accordance with the terms of VEREIT OP’s agreement of limited partnership.

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Adjusted Principal Outstanding and Preferred Equity Summary (cont.) (unaudited, dollars in millions)

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

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



						Q2 2021 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 not based on 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, 2021, 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, 2021

Ratio of total indebtedness to total asset value

≤ 60%

37.1%

Ratio of adjusted EBITDA to fixed charges

≥ 1.5x

3.51x

Ratio of secured indebtedness to total asset value

≤ 45%

5.7%

Ratio of unsecured indebtedness to unencumbered asset value

≤ 60%

37.4%

Ratio of unencumbered adjusted NOI to unsecured interest expense

≥ 1.75x

4.71x

Corporate Bond Key Covenants

Required

June 30, 2021

Limitation on incurrence of total debt

≤ 65%

37.3%

Limitation on incurrence of secured debt

≤ 40%

6.7%

Debt service coverage

≥ 1.5x

4.26x

Maintenance of total unencumbered assets

≥ 150%

282.8%

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Acquisitions and Dispositions (unaudited, square feet and dollars in thousands)

Acquisitions

The following table summarizes the Company's acquisition activity during the three months ended June 30, 2021.


Property Type	Number of Properties	Square Feet	Weighted Average Lease Term (Years) (1)	Weighted Average Cash Cap Rate		Purchase Price (2)
Retail	51	746	15.4	6.8	%	$	175,796

Restaurant	1	3	19.9	6.2	%	1,585
Total acquisitions (3)	52	749	15.4	6.7	%	$	177,381

Dispositions

The following table summarizes the Company's disposition activity and the related gains/losses during the three months ended June 30, 2021.


	Number of Properties	Square Feet	Weighted Average Lease Term (Years) (4)	Weighted Average Cash Cap Rate (5)		Sale Price		Gain (Loss)
Office	2	218	5.7	7.3	%	$	35,331	$	2,850
Restaurant	2	8	5.8	6.1	%	1,200		366
Retail	6	395	5.4	7.2	%	62,923		12,329
Vacant and other (6)	12	89	N/A	N/A		9,529		1,465
Total dispositions	22	710	5.5	7.2	%	$	108,983	$	17,010
Held for sale assets								(114)
Total gain on disposition of real estate, net								$	16,896

___________________________________

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

(2)Excludes acquisition-related expenses capitalized.

(3)During the three months ended June 30, 2021, the Company placed in service one build-to-suit project with a total investment of $44.5 million, including $12.3 million related to land acquired in 2020, at a cash cap rate of 8.4%.

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

(5)Excludes certain Cash Cap Rates considered not meaningful due to factors such as physical and economic vacancy or short remaining lease terms. Of the $109.0 million of real estate dispositions, the total weighted average cash cap rate of 7.2% represents $84.5 million.

(6)Represents four vacant restaurants and eight vacant retail properties.

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Diversification Statistics: Real Estate Portfolio (unaudited, percentages based on portfolio Annualized Rental Income)

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________


Statistics (square feet in thousands)

Operating Properties	3,885
Rentable Square Feet	88,864
Economic Occupancy Rate	97.1	%
Weighted Average Remaining Lease Term	8.5
Investment-Grade Tenants	37.8	%
Flat leases	19.1	%
NNN leases	65.3	%

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

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



						Q2 2021 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	25	1,489	1.7	%	$	52,353	4.8	%	NR
Dollar Tree/Family Dollar	113	3,354	3.8	%	39,310		3.6	%	BBB
Dollar General	403	3,734	4.2	%	34,597		3.2	%	BBB
Walgreens	92	1,310	1.5	%	32,436		3.0	%	BBB
CVS	90	1,293	1.5	%	28,774		2.7	%	BBB
FedEx	41	2,595	2.9	%	27,639		2.6	%	BBB
BJ's Wholesale Club	3	2,223	2.5	%	20,800		1.9	%	BB
LA Fitness	24	1,049	1.2	%	20,467		1.9	%	CCC+
Albertsons	26	1,536	1.7	%	18,628		1.7	%	BB-
Goodyear	5	4,728	5.3	%	17,421		1.6	%	BB-
Total	822	23,311	26.3	%	$	292,425	27.0	%


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	298	3,683	4.1	%	$	130,228	12.1	%
Restaurants - Quick Service	773	2,860	3.2	%	91,336		8.5	%
Retail - Discount	543	8,930	10.0	%	90,090		8.3	%
Manufacturing	49	15,748	17.7	%	89,490		8.3	%
Retail - Pharmacy	196	2,991	3.4	%	67,916		6.3	%
Retail - Home & Garden	111	8,926	10.0	%	65,744		6.1	%
Retail - Grocery & Supermarket	68	4,254	4.8	%	49,268		4.6	%
Retail - Motor Vehicle	181	6,138	6.9	%	48,828		4.5	%
Entertainment & Recreation	39	1,783	2.0	%	46,078		4.3	%
Retail - Gas & Convenience	159	881	1.0	%	43,075		4.0	%
Total	2,417	56,194	63.1	%	$	722,053	67.0	%


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	551	10,468	11.8	%	$	133,471	12.4	%
Ohio	277	8,587	9.7	%	67,368		6.2	%
Illinois	153	4,758	5.4	%	65,672		6.1	%
Florida	247	4,308	4.8	%	63,848		5.9	%
Pennsylvania	100	3,772	4.2	%	38,654		3.6	%
Georgia	163	3,135	3.5	%	38,149		3.5	%
Michigan	190	2,022	2.3	%	36,651		3.4	%
North Carolina	146	3,260	3.7	%	35,692		3.3	%
Indiana	132	4,511	5.1	%	35,440		3.3	%
California	58	3,154	3.5	%	32,455		3.0	%
Total	2,017	47,975	54.0	%	$	547,400	50.7	%

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Top 10 Concentrations: Real Estate Portfolio (unaudited, square feet and dollars in thousands)


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	98	4,078	4.6	%	$	56,311	5.2	%
Dallas, TX	107	3,411	3.8	%	39,772		3.7	%
New York, NY	23	1,141	1.3	%	24,321		2.3	%
Atlanta, GA	72	2,188	2.5	%	23,396		2.2	%
Houston, TX	85	2,235	2.5	%	23,056		2.1	%
Boston, MA	20	1,505	1.7	%	21,164		2.0	%
Philadelphia, PA	35	1,114	1.3	%	19,716		1.8	%
Cincinnati, OH	42	2,316	2.6	%	18,564		1.7	%
Cleveland, OH	59	1,107	1.2	%	14,526		1.3	%
Detroit, MI	60	714	0.8	%	14,372		1.3	%
Total	601	19,809	22.3	%	$	255,198	23.6	%

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Tenants Comprising Over 1% of Annualized Rental Income (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	25	1,489	1.7	%	$	52,353	4.8	%	NR
Dollar Tree/Family Dollar	113	3,354	3.8	%	39,310		3.6	%	BBB
Dollar General	403	3,734	4.2	%	34,597		3.2	%	BBB
Walgreens	92	1,310	1.5	%	32,436		3.0	%	BBB
CVS	90	1,293	1.5	%	28,774		2.7	%	BBB
FedEx	41	2,595	2.9	%	27,639		2.6	%	BBB
BJ's Wholesale Club	3	2,223	2.5	%	20,800		1.9	%	BB
LA Fitness	24	1,049	1.2	%	20,467		1.9	%	CCC+
Albertsons	26	1,536	1.7	%	18,628		1.7	%	BB-
Goodyear	5	4,728	5.3	%	17,421		1.6	%	BB-
Topgolf	5	290	0.3	%	17,281		1.6	%	B-
Tractor Supply	61	1,274	1.4	%	16,777		1.6	%	BBB
At Home	6	1,538	1.7	%	13,306		1.2	%	B
Advance Auto Parts	104	716	0.8	%	11,883		1.1	%	BBB-
Home Depot	9	1,751	2.0	%	11,837		1.1	%	A
Lowe's	14	1,751	2.0	%	11,541		1.1	%	BBB+
Merrill Lynch	1	482	0.5	%	11,104		1.0	%	A-
AON	2	819	0.9	%	10,822		1.0	%	A-

Total	1,024	31,932	35.9	%	$	396,976	36.7	%

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

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



						Q2 2021 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	3	425	0.5	%	$	3,960	0.4	%
Agricultural	2	138	0.2	%	1,245		0.1	%
Education	3	24	—	%	445		—	%
Entertainment & Recreation	39	1,783	2.0	%	46,078		4.3	%
Finance	153	1,699	1.9	%	38,238		3.5	%
Government & Public Services	11	589	0.7	%	10,059		0.9	%
Healthcare	7	690	0.8	%	9,184		0.9	%
Information & Communication	5	385	0.4	%	5,253		0.5	%
Insurance	12	1,155	1.3	%	22,902		2.1	%
Logistics	44	3,297	3.7	%	33,394		3.1	%
Manufacturing	49	15,748	17.7	%	89,490		8.3	%
Mining & Natural Resources	5	424	0.5	%	6,807		0.6	%
Other Services	28	511	0.6	%	5,580		0.5	%
Professional Services	46	3,075	3.5	%	38,916		3.6	%
Rental	10	878	1.0	%	9,521		0.9	%
Restaurants - Casual Dining	298	3,683	4.1	%	130,228		12.1	%
Restaurants - Quick Service	773	2,860	3.2	%	91,336		8.5	%
Retail - Apparel & Jewelry	13	1,360	1.5	%	16,197		1.5	%
Retail - Department Stores	17	1,223	1.4	%	10,349		1.0	%
Retail - Discount	543	8,930	10.0	%	90,090		8.3	%
Retail - Electronics & Appliances	14	1,559	1.8	%	10,045		0.9	%
Retail - Gas & Convenience	159	881	1.0	%	43,075		4.0	%
Retail - Grocery & Supermarket	68	4,254	4.8	%	49,268		4.6	%
Retail - Hobby, Books & Music	15	2,091	2.3	%	12,696		1.2	%
Retail - Home & Garden	111	8,926	10.0	%	65,744		6.1	%
Retail - Home Furnishings	48	2,731	3.1	%	30,133		2.8	%
Retail - Internet	1	1,423	1.6	%	6,797		0.6	%
Retail - Medical Services	63	526	0.6	%	11,520		1.1	%
Retail - Motor Vehicle	181	6,138	6.9	%	48,828		4.5	%
Retail - Pet Supply	14	558	0.6	%	10,670		1.0	%
Retail - Pharmacy	196	2,991	3.4	%	67,916		6.3	%
Retail - Specialty (Other)	18	520	0.6	%	5,602		0.5	%
Retail - Sporting Goods	25	2,039	2.3	%	26,743		2.5	%
Retail - Warehouse Clubs	5	2,466	2.8	%	22,989		2.1	%
Other	24	321	0.3	%	8,288		0.7	%
Total	3,003	86,301	97.1	%	$	1,079,586	100.0	%

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

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



						Q2 2021 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	149	1,666	1.9	%	$	26,784	2.5	%
Alaska	3	25	—	%	821		0.1	%
Arizona	75	1,457	1.6	%	23,666		2.2	%
Arkansas	129	1,282	1.4	%	19,747		1.8	%
California	58	3,154	3.6	%	32,455		3.0	%
Colorado	42	1,548	1.7	%	23,527		2.2	%
Connecticut	14	85	0.1	%	1,807		0.2	%
Delaware	6	59	0.1	%	1,075		0.1	%

Florida	247	4,308	4.8	%	63,848		5.9	%
Georgia	163	3,135	3.5	%	38,149		3.5	%

Idaho	17	143	0.2	%	3,386		0.3	%
Illinois	153	4,758	5.4	%	65,672		6.1	%
Indiana	132	4,511	5.1	%	35,440		3.3	%
Iowa	46	1,067	1.2	%	12,398		1.1	%
Kansas	41	2,208	2.5	%	10,155		0.9	%
Kentucky	75	1,999	2.2	%	22,250		2.1	%
Louisiana	97	2,785	3.1	%	29,131		2.7	%
Maine	24	681	0.8	%	8,747		0.8	%
Maryland	26	585	0.7	%	14,181		1.3	%
Massachusetts	27	2,251	2.5	%	26,294		2.4	%
Michigan	190	2,022	2.3	%	36,651		3.4	%
Minnesota	53	1,162	1.3	%	14,356		1.3	%
Mississippi	72	1,899	2.1	%	14,604		1.4	%
Missouri	145	1,686	1.9	%	22,638		2.1	%
Montana	9	115	0.1	%	2,024		0.2	%
Nebraska	19	366	0.4	%	5,770		0.5	%
Nevada	30	743	0.8	%	8,898		0.8	%
New Hampshire	16	240	0.3	%	4,107		0.4	%
New Jersey	29	1,601	1.8	%	30,057		2.8	%
New Mexico	41	763	0.9	%	10,027		0.9	%
New York	68	1,530	1.7	%	30,153		2.8	%
North Carolina	146	3,260	3.7	%	35,692		3.3	%
North Dakota	12	211	0.2	%	4,406		0.4	%
Ohio	277	8,587	9.7	%	67,368		6.2	%
Oklahoma	82	1,784	2.0	%	26,397		2.4	%
Oregon	11	65	0.1	%	1,918		0.2	%
Pennsylvania	100	3,772	4.2	%	38,654		3.6	%
Rhode Island	4	141	0.2	%	1,957		0.2	%
South Carolina	102	2,331	2.6	%	23,910		2.2	%
South Dakota	10	169	0.2	%	2,072		0.2	%
Tennessee	105	2,874	3.2	%	28,233		2.6	%
Texas	551	10,468	11.8	%	133,471		12.4	%
Utah	11	515	0.6	%	5,804		0.5	%
Vermont	6	53	0.1	%	1,140		0.1	%
Virginia	97	2,451	2.8	%	28,699		2.7	%
Washington	26	607	0.7	%	10,475		1.0	%
West Virginia	34	214	0.2	%	5,244		0.5	%

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

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



						Q2 2021 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	104	1,371	1.5	%	21,133		2.0	%
Wyoming	8	69	0.1	%	1,375		0.1	%
Territories
Puerto Rico	3	88	0.1	%	2,820		0.3	%



Total	3,885	88,864	100.0	%	$	1,079,586	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 | 27



						Q2 2021 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
2021	45	3,756	4.2	%	$	27,407	2.5	%
2022	217	7,634	8.6	%	66,819		6.2	%
2023	263	4,324	4.9	%	57,464		5.3	%
2024	238	9,320	10.5	%	114,214		10.6	%
2025	299	4,830	5.4	%	64,030		5.9	%
2026	270	9,019	10.1	%	85,440		7.9	%
2027	333	6,914	7.8	%	95,554		8.9	%
2028	325	5,841	6.6	%	69,568		6.4	%
2029	150	5,733	6.5	%	54,618		5.1	%
2030	102	4,706	5.3	%	53,128		4.9	%
Thereafter	761	24,224	27.2	%	391,344		36.3	%
Total	3,003	86,301	97.1	%	$	1,079,586	100.0	%

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

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



						Q2 2021 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	13	123	0.1	%	$	2,315	0.2	%
Restaurant	24	149	0.2	%	3,255		0.3	%
Industrial	1	2,717	3.0	%	9,024		0.8	%
Office	6	767	0.9	%	12,776		1.2	%
Other (1)	1	—	—	%	37		—	%
Total 2021	45	3,756	4.2	%	$	27,407	2.5	%

2022
Retail	127	1,245	1.4	%	$	20,163	1.9	%
Restaurant	54	218	0.2	%	6,237		0.6	%
Industrial	22	4,859	5.5	%	17,402		1.6	%
Office	13	1,312	1.5	%	22,944		2.1	%
Other (1)	1	—	—	%	73		—	%
Total 2022	217	7,634	8.6	%	$	66,819	6.2	%

2023
Retail	161	2,157	2.4	%	$	28,299	2.6	%
Restaurant	73	296	0.4	%	7,716		0.7	%
Industrial	17	1,234	1.4	%	9,490		0.9	%
Office	8	637	0.7	%	11,756		1.1	%
Other (1)	4	—	—	%	203		—	%
Total 2023	263	4,324	4.9	%	$	57,464	5.3	%

2024
Retail	130	1,992	2.2	%	$	31,458	2.9	%
Restaurant	71	307	0.4	%	8,014		0.7	%
Industrial	14	3,558	4.0	%	16,654		1.6	%
Office	21	3,463	3.9	%	57,894		5.4	%
Other (1)	2	—	—	%	194		—	%
Total 2024	238	9,320	10.5	%	$	114,214	10.6	%

___________________________________

(1)Includes redevelopment property, 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 | 29



						Q2 2021 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	186	2,190	2.5	%	$	30,688	2.8	%
Restaurant	96	350	0.4	%	10,158		0.9	%
Industrial	11	1,707	1.9	%	13,760		1.3	%
Office	6	583	0.6	%	9,424		0.9	%

Total 2025	299	4,830	5.4	%	$	64,030	5.9	%

2026
Retail	118	2,014	2.3	%	$	25,764	2.4	%
Restaurant	123	496	0.5	%	17,700		1.6	%
Industrial	17	5,631	6.3	%	25,066		2.3	%
Office	11	878	1.0	%	16,764		1.6	%
Other (1)	1	—	—	%	146		—	%
Total 2026	270	9,019	10.1	%	$	85,440	7.9	%

2027
Retail	249	3,990	4.5	%	$	52,653	4.9	%
Restaurant	69	524	0.6	%	20,889		1.9	%
Industrial	9	1,771	2.0	%	12,740		1.2	%
Office	6	629	0.7	%	9,272		0.9	%

Total 2027	333	6,914	7.8	%	$	95,554	8.9	%

2028
Retail	191	3,000	3.4	%	$	38,408	3.6	%
Restaurant	109	481	0.6	%	12,958		1.2	%
Industrial	19	2,166	2.4	%	14,363		1.3	%
Office	5	194	0.2	%	3,586		0.3	%
Other (1)	1	—	—	%	253		—	%
Total 2028	325	5,841	6.6	%	$	69,568	6.4	%

___________________________________

(1)Includes redevelopment property, 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 | 30



						Q2 2021 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
2029
Retail	90	2,177	2.5	%	$	27,211	2.5	%
Restaurant	52	321	0.4	%	10,179		1.0	%
Industrial	6	3,024	3.4	%	13,810		1.3	%
Office	2	211	0.2	%	3,418		0.3	%

Total 2029	150	5,733	6.5	%	$	54,618	5.1	%

2030
Retail	73	3,362	3.8	%	$	43,751	4.0	%
Restaurant	23	183	0.2	%	3,919		0.4	%
Industrial	6	1,128	1.3	%	4,246		0.4	%
Office	—	33	—	%	1,212		0.1	%

Total 2030	102	4,706	5.3	%	$	53,128	4.9	%

Thereafter
Retail	386	11,833	13.3	%	$	213,431	19.8	%
Restaurant	350	3,157	3.6	%	118,412		11.0	%
Industrial	19	8,752	9.8	%	52,258		4.8	%
Office	2	482	0.5	%	6,551		0.6	%
Other (1)	4	—	—	%	692		0.1	%
Total Thereafter	761	24,224	27.2	%	$	391,344	36.3	%

Total Remaining Lease Expirations	3,003	86,301	97.1	%	$	1,079,586	100.0	%

___________________________________

(1)Includes redevelopment property, 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 | 31



						Q2 2021 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	1,937	59,874	67.3	%	$	759,993	70.4	%
CPI	166	7,706	8.7	%	113,222		10.5	%
Flat	900	18,721	21.1	%	206,371		19.1	%
Total	3,003	86,301	97.1	%	$	1,079,586	100.0	%

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

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



						Q2 2021 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	2,135	53,530	60.2	%	$	704,515	65.3	%
NN	849	31,800	35.8	%	354,511		32.8	%
Other (1)	19	971	1.1	%	20,560		1.9	%
Total	3,003	86,301	97.1	%	$	1,079,586	100.0	%

___________________________________

(1)Includes gross, modified gross, and billboard leases.

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Property Type Diversification and Rent Coverage (unaudited, square feet and dollars in thousands)

Property Type Diversification


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)	2,143	34,803	39.2	%	$	514,141	47.6	%
Restaurant	1,515	6,907	7.8	%	219,437		20.3	%
Industrial	158	37,396	42.1	%	188,813		17.5	%
Office	59	9,758	10.9	%	155,597		14.4	%
Other (2)	10	—	—	%	1,598		0.2	%
Total	3,885	88,864	100.0	%	$	1,079,586	100.0	%

___________________________________

(1) Includes six anchored shopping centers, representing 1.1% of Annualized Rental Income.

(2) Includes redevelopment property, billboards, land and parking lots.

Rent Coverage

The following table shows weighted-average rent coverage for retail and restaurant properties calculated as our tenants' property level EBITDAR (earnings before interest, tax, depreciation, amortization and rent), prior to the deduction of any corporate overhead expenses, for the most recently provided trailing twelve-month period, divided by annualized June 2021 rent per the lease terms. (1) (2)

Property Type

Number of Properties (3)

2021 Rent Coverage

Retail and Restaurant

1,438

2.69x

__________________________________

(1)16.0% of tenant financial information analyzed reflects periods ended March 31, 2020 or prior.

(2)In certain cases, property level EBITDAR reflects a period of less than twelve months, annualized.

(3)Property level performance data was collected for 88.4% of retail and restaurant properties required to provide unit level financial information, representing 46.6% of retail and restaurant properties owned at June 30, 2021 (excluding vacant and dark properties; percentages based on property count).

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

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



						Q2 2021 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	2,143
Rentable Square Feet	34,803
Economic Occupancy Rate	97.9	%
Weighted Average Remaining Lease Term	9.1
Investment-Grade Tenants	47.6	%
Flat leases	26.4	%
NNN leases	67.2	%

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Diversification by Property Type: Restaurants (unaudited, percentages based on Annualized Rental Income of the retail properties)

Tenant Diversification

______________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________


Statistics (square feet in thousands)

Operating Properties	1,515
Rentable Square Feet	6,907
Economic Occupancy Rate	93.8	%
Weighted Average Remaining Lease Term	11.5
Investment-Grade Tenants	3.5	%
Flat leases	8.8	%
NNN leases	99.3	%

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Diversification by Property Type: Industrial (unaudited, percentages based on Annualized Rental Income of the retail properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________


Statistics (square feet in thousands)

Operating Properties	158
Rentable Square Feet	37,396
Economic Occupancy Rate	97.7	%
Weighted Average Remaining Lease Term	7.2
Investment-Grade Tenants	36.9	%
Flat leases	15.0	%
NNN leases	55.7	%

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Diversification by Property Type: Office (unaudited, percentages based on Annualized Rental Income of the retail properties)

____________________________________________________

______________________________________________________

_________________________________________________

_________________________________________________


Statistics (square feet in thousands)

Operating Properties	59
Rentable Square Feet	9,758
Economic Occupancy Rate	94.2	%
Weighted Average Remaining Lease Term	3.6
Investment-Grade Tenants	54.9	%
Flat leases	14.4	%
NNN leases	22.6	%

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



Unconsolidated Joint Venture Investment Summary (unaudited, square feet and dollars in thousands)

Unconsolidated Joint Venture Investments

The following table summarizes the Company's investments in Unconsolidated Joint Ventures as of June 30, 2021.



Joint Venture	Legal Ownership Percentage (1)	Property Type	Number of Properties	Pro Rata Share of Gross Real Estate Investments		Pro Rata Share of Rentable Square Feet	Pro Rata Share of Annualized Rental Income		Pro Rata Share of Adjusted Principal Outstanding
Industrial partnership	20%	Industrial	7	$	131,787	1,409	$	8,154	$	86,006
Office partnership	20%	Office	5	39,195		165	3,551		23,672
Total				$	170,982	1,574	$	11,705	$	109,678

__________________________________

(1)Legal ownership percentage may, at times, not equal the Company's economic interest because of various provisions in the joint venture agreements regarding capital contributions, distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns.

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

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



						Q2 2021 SUPPLEMENTAL INFORMATION



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

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 our pro rata share of such revenues from properties owned by Unconsolidated Joint Ventures. Annualized Rental Income excludes any adjustments to rental income due to changes in the collectability assessment, contingent rent, such as percentage rent, and operating expense reimbursements. 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.

Cash Cap Rate for real estate properties 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. For mezzanine positions, the acquisition Cash Cap Rate equals the annual interest rate or cumulative preferred return rate and the disposition Cash Cap Rate equals the annual interest or cumulative preferred return divided by gross proceeds.

Contract Rental Revenue includes minimum rent, percentage rent and other contingent consideration, and rental revenue from parking and storage space and the Company's pro rata share of such revenues from properties owned by Unconsolidated Joint Ventures. Contract Rental Revenue 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. The Company believes that Contract Rental Revenue is a useful non-GAAP supplemental measure to investors and analysts for assessing performance. However, 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 Contract Rental Revenue for the three months ended June 30, 2021 and 2020 (dollar amounts in thousands):


	Three Months Ended June 30,
		2021		2020
Rental revenue - as reported		$	290,567	$	278,576
Adjustments:
Costs reimbursed related to CAM, property operating expenses and ground leases		(15,523)		(22,681)
Straight-line rent		(4,613)		(3,404)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities		1,830		788
Net direct financing lease adjustments		374		372
Other non-contract rental revenue		(450)		(1,730)
Proportionate share of amounts for Unconsolidated Joint Ventures		2,631		2,528

Contract Rental Revenue		$	274,816	$	254,449

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						Q2 2021 SUPPLEMENTAL INFORMATION



Definitions (cont.) (unaudited, in thousands, except share and per share data)

COVID-19 Lease Concessions Relief refers to eligible concessions where, in accordance with the question-and-answer document, Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic, issued by the Financial Accounting Standards Board, the Company has elected to not apply the lease modification guidance in Accounting Standards Codification (“ASC”) Topic 842, Leases (“ASC 842”). Eligible concessions are changes to the lease agreement related to the effects of COVID-19 that provide a deferral of payments with no substantive changes to the consideration of the original contract. The Company accounts for eligible deferral concessions as if there were no changes made to the lease agreement and, accordingly, continues to recognize income and increases the lease receivable. Ineligible concessions are accounted for as a lease modification under ASC 842, which requires the Company to reevaluate the lease classification and remeasure and reallocate the consideration over the remaining lease term, and include any prepaid rent liabilities and accrued rent assets relating to the original lease as part of the lease payments for the modified lease.

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

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 for Real Estate ("EBITDAre") and Normalized EBITDA

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 Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate. Nareit defines EBITDAre as net income or loss computed in accordance with GAAP, adjusted for interest expense, income tax expense (benefit), depreciation and amortization, impairment write-downs on real estate, gains or losses from disposition of property and our pro rata share of EBITDAre adjustments related to unconsolidated partnerships and joint ventures. We calculated EBITDAre in accordance with Nareit's definition described above.

In addition to EBITDAre, we use Normalized EBITDA as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDA, as defined by the Company, represents EBITDAre, modified to exclude non-routine items such as acquisition-related expenses, merger, litigation and non-routine costs, net and gains or losses on sale of investment securities or mortgage notes receivable. We also exclude certain non-cash items such as impairments of goodwill, intangible and right of use assets, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt and amortization of intangibles, above-market lease assets and below-market lease liabilities. Management believes that excluding these costs from EBITDAre 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. Therefore, EBITDAre and Normalized EBITDA should not be considered as an alternative to net income, as computed in accordance with GAAP. 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. EBITDAre and Normalized EBITDA may not be comparable to similarly titled measures of other companies.

Economic Occupancy Rate equals the sum of Leased Square Feet divided by Rentable Square Feet.

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

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						Q2 2021 SUPPLEMENTAL INFORMATION



Definitions (cont.) (unaudited, in thousands, except share and per share data)

Fixed Charge Coverage Ratio is the sum of (i) Interest Expense, excluding non-cash amortization, (ii) secured debt principal amortization on Adjusted Principal Outstanding 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, Nareit 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 adjusted for gains or losses from disposition of property, depreciation and amortization of real estate assets, impairment write-downs on real estate, and our pro rata share of FFO adjustments related to unconsolidated partnerships and joint ventures. We calculate 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, merger, litigation and non-routine costs, net and gains or losses on sale of investment securities or mortgage notes receivable. We also exclude certain non-cash items such as impairments of goodwill, intangible and right of use assets, straight-line rent, net direct financing lease adjustments, gains or losses on derivatives, gains or losses on the extinguishment or forgiveness of debt, 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. Management believes that excluding these items 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 Lease is a lease under which the landlord is responsible for all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs).

Gross Real Estate Investments represent total gross real estate and related assets of Operating Properties, equity investments in the Cole REITs, investment in direct financing leases, investment securities backed by real estate and mortgage notes receivable, and the Company's pro rata share of such amounts related to properties owned by Unconsolidated Joint Ventures, net of gross intangible lease liabilities. We believe that the presentation of Gross Real Estate Investments, which shows our total investments in real estate and related assets, in connection with Net Debt, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Gross Real Estate Investments should not be considered as an alternative to the Company's real estate investments 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 2021 SUPPLEMENTAL INFORMATION



Definitions (cont.) (unaudited, in thousands, except share and per share data)

The following table shows a reconciliation of Gross Real Estate Investments to the amounts presented in accordance with GAAP on the balance sheet for the periods presented (dollar amounts in thousands):


	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Total real estate investments, at cost - as reported	$	14,546,039	$	14,523,961	$	14,603,626	$	14,610,097	$	14,714,616
Adjustments:

Investment in Cole REITs	7,929		7,951		7,255		6,943		6,867
Gross assets held for sale	47,666		7,145		91,341		2,379		54,046
Investment in direct financing leases, net	5,806		6,181		6,547		8,198		8,579

Mortgage notes receivable, net	—		—		—		15,727		9,959
Gross intangible lease liabilities	(227,183)		(225,657)		(227,442)		(227,165)		(236,324)
Proportionate share of amounts for Unconsolidated Joint Ventures	170,982		165,646		165,643		205,678		146,886

Gross Real Estate Investments	$	14,551,239	$	14,485,227	$	14,646,970	$	14,621,857	$	14,704,629

Implied Equity Market Capitalization equals shares of common stock outstanding, 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 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.

Interest Expense, excluding non-cash amortization is a non-GAAP measure that represents interest expense incurred on the outstanding principal balance of our debt and the Company's pro rata share of the Unconsolidated Joint Ventures' outstanding principal balance. This measure excludes the amortization of deferred financing costs, premiums and discounts, which is included in interest expense in accordance with GAAP. 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, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Interest expense - as reported	$	59,291	$	60,736	$	68,416	$	66,935	$	65,613
Adjustments:
Amortization of deferred financing costs and other non-cash charges	(2,508)		(2,412)		(6,189)		(3,212)		(2,995)
Amortization of net premiums	(709)		(248)		120		299		459
Proportionate share of amounts for Unconsolidated Joint Ventures	792		784		806		691		559

Interest Expense, excluding non-cash amortization	$	56,866	$	58,860	$	63,153	$	64,713	$	63,636

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						Q2 2021 SUPPLEMENTAL INFORMATION



Definitions (cont.) (unaudited, in thousands, except share and per share data)

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.

Leased Square Feet is Rentable Square Feet leased (including month-to-month agreements).

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.

Net Debt, Principal Outstanding and Adjusted Principal Outstanding

Principal Outstanding is a non-GAAP measure that represents the Company's outstanding principal debt balance, excluding certain GAAP adjustments, such as premiums and discounts, financing and issuance costs, and related accumulated amortization. Adjusted Principal Outstanding includes the Company's pro rata share of the Unconsolidated Joint Ventures' outstanding principal debt balance. We believe that the presentation of Principal Outstanding and Adjusted Principal Outstanding, which show our contractual debt obligations, provides useful information to investors to assess our overall financial flexibility, capital structure and leverage. Principal Outstanding and Adjusted Principal 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 is a non-GAAP measure used to show the Company's Adjusted Principal Outstanding, less all cash and cash equivalents and the Company's pro rata share of the Unconsolidated Joint Ventures' 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.

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


	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Mortgage notes payable, net	$	1,002,496	$	1,035,328	$	1,328,835	$	1,330,174	$	1,393,652
Corporate bonds, net	4,588,286		4,586,252		4,584,230		3,406,389		3,404,935
Convertible debt, net	—		—		—		252,077		270,152
Credit facility, net	—		—		—		896,630		896,314

Total debt - as reported	5,590,782		5,621,580		5,913,065		5,885,270		5,965,053
Deferred financing costs, net	40,693		42,503		44,573		39,204		41,152
Net discounts	25,634		26,305		25,557		12,343		11,860
Principal Outstanding	5,657,109		5,690,388		5,983,195		5,936,817		6,018,065
Proportionate share of amounts for Unconsolidated Joint Ventures	109,678		106,516		106,516		106,516		68,360

Adjusted Principal Outstanding	$	5,766,787	$	5,796,904	$	6,089,711	$	6,043,333	$	6,086,425

Cash and cash equivalents	(275,496)		(318,561)		(523,539)		(207,321)		(278,883)
Pro rata share of Unconsolidated Joint Ventures' cash and cash equivalents	(621)		(1,587)		(1,619)		(3,776)		(3,433)

Net Debt	$	5,490,670	$	5,476,756	$	5,564,553	$	5,832,236	$	5,804,109

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.

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						Q2 2021 SUPPLEMENTAL INFORMATION



Definitions (cont.) (unaudited, in thousands, except share and per share data)

Net Debt to Normalized EBITDA Annualized Ratio equals Net Debt divided by the respective 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 total revenues less property operating expenses and excludes fee revenue earned for services to our unconsolidated real estate joint ventures, impairment, depreciation and amortization, general and administrative expenses, acquisition-related expenses and merger, litigation and non-routine costs, net. Cash NOI excludes the impact of certain GAAP adjustments included in rental revenue, such as straight-line rent adjustments and amortization of above-market intangible lease assets and below-market lease intangible liabilities. Cash NOI includes the pro rata share of such amounts from properties owned by Unconsolidated Joint Ventures. 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 NOI and Cash NOI for the periods presented (dollar amounts in thousands):


	Three Months Ended
	June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020
Total revenues	$	291,267	$	290,809	$	287,909	$	295,278	$	278,997
Less total operating expenses	(173,626)		(186,477)		(194,760)		(171,983)		(167,096)
Partnership fee revenue	(700)		(500)		(478)		(1,586)		(421)
Acquisition-related expenses	1,428		1,354		1,048		1,050		1,169
Merger, litigation and non-routine costs, net	6,605		68		10,925		105		(118)
General and administrative	16,451		14,526		15,399		14,774		16,120
Depreciation and amortization	105,839		108,075		107,205		108,257		108,733
Impairment of real estate	14,129		31,849		28,204		16,397		12,094

NOI	261,393		259,704		255,452		262,292		249,478
Straight-line rent	(4,613)		(4,219)		(7,108)		(12,595)		(3,404)
Amortization of above-market lease assets and deferred lease incentives, net of amortization of below-market lease liabilities	1,830		1,547		1,428		393		788
Net direct financing lease adjustments	374		366		379		381		372
Other non-cash adjustments	(13)		(18)		—		—		—
Proportionate share of amounts for Unconsolidated Joint Ventures	2,525		2,507		2,799		2,876		2,475

Cash NOI	$	261,496	$	259,887	$	252,950	$	253,347	$	249,709

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

Operating Properties refers to all properties owned and consolidated by the Company as of the reporting date.

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						Q2 2021 SUPPLEMENTAL INFORMATION



Definitions (cont.) (unaudited, in thousands, except share and per share data)

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 and the Company's pro rata share of leasable square feet of properties owned by Unconsolidated Joint Ventures. Rentable Square Feet at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020 excludes the square feet of one redevelopment property.

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).

Unconsolidated Joint Ventures include the Company's investments in unconsolidated joint ventures formed to acquire and own real estate properties and exclude other investments in unconsolidated entities.

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.

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