VEREIT, Inc. (NYSE:VER) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 01:30 pm ET


VEREIT, Inc. (NYSE:VER) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the VEREIT Fourth Quarter and Annual Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Ms. Bonni Rosen, Head of Investor Relations. Please go ahead.

Bonni Rosen

Thank you for joining us today for the VEREIT 2019 fourth quarter and year end 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 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 1-877-344-7529 with the confirmation code of 10138882.

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 annual report filed today. In addition, as stated more fully in our SEC report, 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 financial results. Glenn will then wrap up with closing remarks. We will conclude today's call by opening the line for questions where we will be joined by our Chief Investment Officer, Tom Roberts; and our Chief Operating Officer, Paul McDowell.

Glenn, let me turn the call over to you.

Glenn Rufrano

Thanks. Bonni, and thanks for joining our call. Over the last five years, we've resolved the legacy issues found in front of us, always focusing on growth in share price through reporting transparency, company stability, and transformation to a net acquirer. Major components of the transformation include settling all outstanding litigation, which includes an agreement with the SEC, building a quality portfolio, enhancing the strength of our balance sheet. And maintaining continuity in an experienced management team. In 2019, we improved tenant diversification and office exposure continues to decrease.

We reduced net debt to normalized EBITDA below our original guidance due to net dispositions along with our ATM usage. The result was achieving a BBB flat rating from Fitch, with an upgraded outlook to positive from Moody's. As you will see we met our guidance while settling the litigation.

Moving on to a specific financial and operation performance. AFFO per diluted share for 2019 was $0.69. Acquisitions totaled $426 million, and dispositions $1.1 billion, including $326 million from our industrial partnership. The global litigation settlement at a cost to the company of $765.5 million, was financed with an equity offering of $887 million. We issued $129 million under the company's ATM program, and $600 million 10-year senior notes