- AFFO Growth: Updated ARCP AFFO pro forma 2014 guidance of $1.13 to $1.19 per share, as described in Annex A; target payout ratio of 85% to 90%.
- Dividend Increase: ARCP dividend per share on closing increases to $1.00.
- Significant Deleveraging: ARCP net debt to EBITDA ratio declines from 9.1x to 7.7x by year end 2014.
- Expense Synergies: $70 million of year one expense synergies expected.
- Scale and Competiveness: 64% larger than the closest comparable net lease REIT. Size and scale create operating and revenue efficiencies, including lower cost of capital, superior growth opportunities and higher investor returns.
- Portfolio Quality: Superior diversification by asset type, tenancy, industry and geography; 47% investment grade tenancy; 99% occupied; 11 years remaining average lease term.
- Optimization of Core Capabilities: In addition to the durability provided by the single tenant net lease portfolio, the multi-tenant retail properties coupled with the "vintage" (mid-term) net leased properties provide significant rent growth potential.
- Cost of Capital Advantages: ARCP's investment grade rating allows for significantly lower cost of financing, which is highly accretive to its overall corporate earnings.
- Increased Institutional Coverage: Transaction positions ARCP for potential inclusion in the S&P 500.
American Realty Capital Properties And Cole Real Estate Investments Merge To Create World's Largest Net Lease REIT With Enterprise Value Of $21.5 Billion
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