American Finance Trust, Inc (NASDAQ:AFIN) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 11:00 am ET

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American Finance Trust, Inc (NASDAQ:AFIN) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to the American Finance Trust Third Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Louisa Quarto, Executive Vice President. Please go ahead.

Executive
Louisa Quarto

Thank you, operator. Good morning everyone and thank you for joining us for AFIN's third quarter 2019 earnings call. The call is being webcast in the Investor Relations section of AFIN's website at www.americanfinancetrust.com. The following information contains forward-looking statements, which are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize actual results may differ materially from those expressed or implied by the forward-looking statements. We refer all of you to our SEC filings, including the Annual Report Annual Report on Form 10-K for the year ended December 31, 2018, filed on March 7, 2019 and all other filings with the SEC after that date for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements or portfolio information provided during this conference call are only made as of the date of this call. As stated in our SEC filings, AFIN disclaims any intent or obligation to update or revise these forward-looking statements or portfolio information except as required by law.

During today's call we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of GAAP net income to the non-GAAP measures can be found in our earnings release supplement and Form 10-Q, all of which posted on our website at www.americanfinancetrust.com.

I'll now turn the call over to our CEO, Mike Weil, Mike?

Executive
Mike Weil

Thanks, Louisa. Good morning to our shareholders and other participants and thank you for joining us. With me today on the call are Katie Kurtz, our Chief Financial Officer and Zach Pomerantz, Senior Vice President of Asset Management. I'll start with an overview of our third quarter results and highlight some of our recent accomplishments. Katie will provide additional financial details and Zach will discuss our portfolio and pipeline, and then we'll take questions.

Before we get started, I would like to welcome to the call, the two analysts who picked up coverage of AFIN in the third quarter. Bryan Maher from B. Riley FBR and Barry Oxford from D.A. Davidson. We're pleased to have your coverage joining Jeremy Metz and Frank Lee from Bank of Montreal.

We're pleased to report another strong quarter for the company. From a real estate perspective, we had an extremely active quarter, closing on $179 million in primarily service retail acquisitions including $143 million dialysis portfolio. These acquisitions increased annualized straight-line rent by approximately $14 million, which will start to be fully realized in the fourth quarter.

Through lease up of the multi-tenant portfolio, we increased portfolio occupancy this quarter by 180 basis points to 95.2%, In capital markets, we completed an $87 million