VEREIT, Inc. (NYSE:VER) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 12:30 pm ET

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VEREIT, Inc. (NYSE:VER) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Hello, and welcome to the VEREIT Third Quarter 2019 Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Bonni Rosen. Please go ahead, ma'am.

Executive
Bonni Rosen

Thank you for joining us today for the VEREIT 2019 third quarter earnings call.

Joining me today are Glenn Rufrano, our Chief Executive Officer; and Mike Bartolotta, our Chief Financial Officer. Today's call is being webcast on our website at vereit.com in the Investor Relations section. There will be a replay of the call beginning at approximately 2:30 p.m. Eastern Time today. Dial-in for the replay is 1877-344-7529 with the confirmation code of 10135550.

Before I turn the call over to Glenn, I would like to remind everyone that certain statements in this earnings call, which are not historical facts, will be forward looking. VEREIT's actual results may differ materially from these forward-looking statements and factors that could cause these differences are detailed in our SEC filings, including the quarterly report filed today. In addition, as stated more fully in our SEC reports, VEREIT disclaims any intent or obligation to update these forward-looking statements, except as expressly required by law.

Let me quickly review the format of today's call. First, Glenn will begin by providing a business and operational update, followed by Mike presenting our quarterly financial results. Glenn will then wrap up with closing remarks. We will conclude today's call by opening the line for questions.

Glenn, let me turn the call over to you.

Executive
Glenn Rufrano

Thanks, Bonni, and thanks for joining our call today. We've made a great deal of progress this quarter.

AFFO per diluted share was $0.18. Year-to-date acquisitions totaled $284 million and dispositions $847 million, including $326 million from our industrial partnership. We announced a global litigation settlement at a net cost of the company of $765.5 million and included an equity offering of $887 million. Net debt to normalized EBITDA ended at 5.5 times, which included the stock issued and settlement funding. Based upon this activity. We are reaffirming our AFFO guidance for this year of $0.68 to $0.70, and expect will be in the -- will be closer to the middle of the range.

Leasing for the quarter was a very active -- was very active at 1.6 million square feet leased and occupancy ended at a healthy 99%. Same-store rent was up 1%. Year-to-date, we have leased 2.8 million square feet, representing 191 leases of which 1.7 million square feet were renewals, and 838,000 square feet early renewals. Leasing activity included 1.3 million square feet of retail; 664,000 square feet of industrial; 442,000 square feet of office; and 378,000 square feet of restaurants. For renewal leases, we recaptured approximately 97% of prior rents.

From Q2 2015, when we announced our business plan, the capital markets have provided us a great deal of liquidity, and we've executed well. In total, we've had $13 billion of capital activity including acquisitions, dispositions, debt and