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Spirit Realty Capital Continues to Build Its Portfolio of Single-Tenant Properties with Sale-Leaseback Transactions

August 26, 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, recently reported strong second quarter 2014 operating results due, in large part, to the Company’s ongoing acquisition program.

Through the first six months of 2014, Spirit Realty Capital acquired 190 properties leased in 36 transactions, and the Company also raised over $1 billion through a combination of equity and debt offerings.

Spirit Realty Capital acquires and leases properties in 49 states and in a wide range of industries, including retailers, chain restaurants, convenience stores, car washes, automotive service centers and medical/dental offices. As of June 2014, the Company’s portfolio totaled 2,369 properties.

During the first half of 2014, Spirit Realty Capital invested approximately $365 million in 190 single-tenant properties. Its small- and middle-market tenants include businesses operating under prominent brands such as Brookshire Brothers Grocery, Burger King, Chevron, Circle K, Dollar General, Family Dollar, O’Reilly Auto Parts, Planet Fitness, Popeye’s, Shell Oil, Sportsman’s Warehouse, Twin Peaks and Yard House. Also, Spirit Realty Capital has acquired real estate leased to surgical and medical imaging centers, as well as successful medical and dental practice groups.

“Approximately 71% of our acquisitions in the first half of 2014 were sale-leaseback transactions in which we purchased real estate directly from a seller and simultaneously negotiated to become its landlord under a long-term lease agreement. Our tenants depend upon real estate that is ‘operationally essential’ to their businesses; however, they recognize the capital that is tied up in those properties,” said Gregg Seibert, Chief Investment Officer of Spirit Realty Capital. “By offering the option of a sale-leaseback, we help business owners unlock that capital often to increase their profits, maintain cash flow, and expand. The cash generated from the transaction can be used to repay debt, fund acquisitions, renovate and expand properties, or provide a return to shareholders. We also offer potentially tax-deferred or otherwise tax-advantaged structures to sellers of properties. Many of our tenants have worked with us multiple times over the years as we effectively become their provider of low-cost capital.”

“We are well-funded and actively seeking high-quality properties that will allow us to grow and diversify our portfolio in a disciplined fashion,” said Peter Mavoides, President and Chief Operating Officer of Spirit Realty Capital. “We are in a strong competitive position and a leader in the triple net lease REIT market as a result of our financial strength, broad geographic presence and tenant industry diversification.”

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

Spirit Realty Capital’s second quarter and first six months of 2014 operating results were reported in a press release on August 5, 2014 and full second quarter and first six months of 2014 financial statements are available on the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 6, 2014.

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 $8.3 billion with a diverse portfolio of 2,369 properties across 49 states as of June 30, 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 Spirit Realty Capital’s 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 Capital’s business activities (including refinancing and interest rate risks, changes in interest rates and/or credit spreads, changes in the real estate markets), unknown liabilities acquired in connection with acquired properties, portfolios of properties, or interests in real-estate related entities, general risks affecting the real estate industry (including, without limitation, the market value of our properties, the inability to enter into or renew leases at favorable rates, portfolio occupancy varying from our expectations, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate), risks associated with our failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended and additional risks discussed in Spirit Realty Capital’s filings with the Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K for the year ended December 31, 2013 and in the prospectus supplements relating to its recently completed registered securities offerings. Spirit Realty Capital 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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