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Spirit Realty Capital Begins 2014 With Strong Acquisition Activity

May 27, 2014

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Spirit Realty Capital, Inc. (NYSE:SRC), a real estate investment trust that invests in single-tenant, operationally essential real estate, and a leading provider of sale-leaseback financing to middle-market operators nationwide, reported solid first quarter 2014 operating results based, in large measure, on strong acquisition activity. Spirit Realty Capital’s first quarter 2014 operating results were reported in a press release on May 8, 2014 and full first quarter 2014 financial statements are available on the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 9, 2014.

In the first quarter of 2014, Spirit Realty Capital maintained its position as a leader in the triple net lease REIT market and demonstrated its ability to invest in a disciplined fashion and grow its property portfolio with an attractive risk-to-return profile. Spirit Realty Capital acquired 218 properties leased in 31 transactions over the past two reported quarters, and expects to continue its growth strategy in 2014 by adding more quality assets to its portfolio.

From October 2013 through March 2014, Spirit Realty Capital has acquired approximately $400 million of single-tenant properties. Its small- and middle-market tenants include businesses operating under prominent brands such as Burger King, Circle K, Chevron, Albertson’s, O’Reilly Auto Parts, Yard House, Planet Fitness, Popeye’s, Dollar General, Goodrich Quality Theaters, Family Dollar, and Gander Mountain. Outside of the retail industry, Spirit Realty Capital has also acquired real estate leased to surgical and medical imaging centers, as well as successful medical and dental practice groups.

“We are excited about our success in sourcing and securing high-quality and strategically attractive investment opportunities that will allow us to grow and diversify our portfolio,” said Peter Mavoides, President and Chief Operating Officer of Spirit Realty Capital. “We believe we are in a strong competitive position to grow our portfolio through organically sourced transactions.”

Spirit Realty Capital acquired properties in a wide range of sectors during the first quarter of 2014, including chain restaurants, retailers, convenience stores, automotive service centers and medical/dental offices. Over its 10-year operating history, Spirit Realty Capital has acquired assets in these and other growth sectors and the company will continue to target such areas in 2014.

“We provide long-term capital to single-tenant operators across multiple industries,” said Gregg Seibert, Chief Investment Officer of Spirit Realty Capital. “Approximately 60% of our acquisitions over the past two quarters were sale-leaseback transactions in which we purchased the real estate directly from the seller and became its landlord on a long-term lease. The sellers were able to use the cash generated from the transaction to repay debt, fund acquisitions, renovate and expand their properties, or provide a return to their shareholders. In addition, we offer potentially tax-advantaged structures to sellers, including issuing units of our UPREIT operating partnership as acquisition consideration.”

Spirit Realty Capital also selectively acquires existing lease portfolios that demonstrate strong unit-level operating performance coupled with high-quality real estate characteristics.

About Spirit Realty Capital

Spirit Realty Capital was formed in 2003 to invest in single-tenant operationally essential real estate, which refers to generally free-standing, commercial real estate facilities where tenants conduct retail, service or distribution activities that are essential to the generation of their sales and profits. Spirit Realty Capital completed its initial public offering in September 2012 and trades under the symbol “SRC” on the New York Stock Exchange. Spirit Realty Capital has an estimated enterprise value of $7.9 billion comprising a diverse portfolio of 2,287 properties across 48 states as of March 31, 2014. More information about Spirit Realty Capital can be found at www.spiritrealty.com.

Forward-Looking and Cautionary Statements

Statements contained in this press release that are not strictly historical are forward-looking statements, which should be regarded solely as reflections of our current operating plans and estimates. These forward-looking statements can be identified by the use of words such as “expects,” “plans,” “estimates,” “projects,” “intends,” “believes,” “guidance,” and similar expressions that do not relate to historical matters. These forward-looking statements are subject to known and unknown risks and uncertainties that can cause actual results to differ materially from those currently anticipated, due to a number of factors which include, but are not limited to, our continued ability to source new investments, risks associated with using debt to fund Spirit Realty’s business activities (including refinancing and interest rate risks, changes in interest rates and/or credit spreads, changes in the real estate markets), risks related to the recent significant merger we completed, our ability to integrate the portfolios, disruption from the merger making it more difficult to maintain business and operational relationships, unknown liabilities acquired in connection with the acquired properties of the merger counterparty, portfolios of properties, or interests in real-estate related entities, and those discussed in Spirit Realty’s filings with the Securities and Exchange Commission from time to time. Spirit Realty expressly disclaims any responsibility to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.





Spirit Realty Capital, Inc.

Gregg Seibert, 480-315-6610

EVP, Chief Investment Officer

gseibert@spiritrealty.com

Source: Spirit Realty Capital, Inc.


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