Realty Income estimates that 2013 Adjusted Funds from Operations (AFFO) should range from $2.31 to $2.37 per share, an increase of 9.5% to 15.0% over the 2012 estimated AFFO per share of $2.06 to $2.11. The AFFO per share estimate for 2013 is based on adding back items to FFO totaling $0.08 to $0.10, that reduce net income, and deducting capitalized expenditures and straight-line rent revenue items totaling approximately $0.05 to $0.07, for a net increase of $0.01 to $0.05 over FFO.
Realty Income considers FFO and AFFO to be appropriate supplemental measures of a real estate investment trust’s (REIT’s) operating performance. Realty Income defines FFO consistent with the National Association of Real Estate Investment Trust’s (NAREIT’s) definition as net income available to common stockholders plus depreciation and amortization of real estate assets, reduced by gains on sales of investment properties and extraordinary items. AFFO further adjusts FFO for unique revenue and expense items which are not pertinent to the measurement of Realty Income’s ongoing operating performance.
Conference Call and Investor Presentation Information
Realty Income and American Realty Capital Trust have scheduled a conference call on Thursday, September 6, 2012 at 8:00 AM Pacific Time to discuss the acquisition. To access the conference call dial: 866-225-8754. To access a live webcast of the conference call, go to www.realtyincome.com and click the link on Realty Income’s home page. An investor presentation discussing the transaction will also be available on Realty Income’s website at www.realtyincome.com .About Realty Income Realty Income is The Monthly Dividend Company ®, a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. To date, Realty Income has paid 505 consecutive monthly dividend payments throughout its 43-year operating history and has raised the dividend 67 times since listing on the New York Stock Exchange in 1994. The monthly income is supported by the cash flow from over 2,600 properties owned under long-term lease agreements with 136 leading regional and national retail chains and other commercial enterprises. The company is an active buyer of commercial properties nationwide. Additional information about the company can be obtained from the corporate website at www.realtyincome.com. About American Realty Capital Trust American Realty Capital Trust is a leading REIT that acquires, owns and operates single-tenant freestanding commercial properties. The company’s diversified real estate portfolio is comprised of long-term, net leases with primarily investment-grade tenants. American Realty Capital Trust’s primary goal is to provide durable, reliable income for investors through the delivery of dependable monthly dividends. Basis of Pro Forma Data and Forward-Looking Statements The rental revenue changes and statistics described above are based on the companies’ results for the six months ended June 30, 2012, and assume the acquisition occurred at the beginning of the period. Other data, such as occupancy and lease rollover figures, are based on data as of June 30, 2012. Statements in this press release, which are not strictly historical, are “forward-looking” statements. Forward-looking statements involve known and unknown risks, which may cause the companies’ actual future results to differ materially from expected results. These risks include, among others, whether the proposed transaction which is subject to customary conditions in fact closes general economic conditions, local real estate conditions, tenant financial health, the availability of capital to finance planned growth, property acquisitions and the timing of these acquisitions, charges for property impairments, the outcome of any legal proceedings to which the companies’ are party, as described in the companies’ filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the companies’ current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The companies undertake no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made. Additional Information and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction, Realty Income and ARCT will file with the Securities and Exchange Commission (SEC) a registration statement on Form S-4 containing a joint proxy statement/prospectus and other documents regarding the proposed transaction. The joint proxy statement/prospectus will contain important information about the proposed transaction and related matters. SHAREHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT REALTY INCOME, ARCT AND THE PROPOSED TRANSACTION.