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American Realty Capital Properties Announces Record First Quarter 2013 Operating Results, In Line with Published 2013 Earnings Guidance Completes Successful Merger with ARCT III Grows Revenues Over 600% Compared to Prior Quarter End.

NEW YORK
 Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, May 6, 2013 /PRNewswire/ — American
Realty
 n. a short form of “real estate.” (See: real estate)


REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property.
 Capital
Properties, Inc. (
NASDAQ

:
ARCP

ARCP Association of Residential Cleaning Professionals
)(“ARCP” or the
“Company”) announced today its operating results for the three
months ended March 31, 2013. Operating highlights are provided below.
All per share results are reported on a fully
diluted
  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 basis.

(Logo: http://photos.prnewswire.com/prnh/20120529/NY15147LOGO)

For the quarter ended March 31, 2013, revenues were $40.2 million,
compared to $5.7 million generated in the fourth quarter of 2012, or an
increase of over 600%.
Funds from operations

 and adjusted funds from
operations totaled $24.5 million and $30.8 million for the first quarter
of 2013, respectively, compared to $2.2 million and $3.4 million
generated in the quarter ended
December
 see month.
 31, 2012, respectively.

“We are very pleased with our first quarter results which are
in line with our earlier 2013 earnings guidance, projecting earnings
growth of 16% between 2013 and 2014, and we are particularly well
positioned for continued earnings growth. Our completed acquisitions
through March 31 represent roughly 25% of our projected $1.1 billion of
2013 acquisitions,” stated
Nicholas
 (Nikolai Nikolayevich) , 1856–1929, Russian grand duke and army officer; first cousin of Czar Alexander III and grandson of Czar
 S. Schorsch, Chairman and Chief
Executive Officer of ARCP. “Our acquisition of American Realty
Capital Trust III, Inc. (”
ARCT

 III”) closed during the first
quarter, proving transformative from a portfolio
standpoint

, and
providing significant additional portfolio
diversification

. Our current
financial position exhibits extremely low leverage, and our
unsecured

 credit facility gives us current capacity of approximately $800 million
at very attractive pricing. We intend to continue executing our highly
accretive organic acquisition program on which our earnings guidance is
constructed, while at the same time actively pursuing strategic
opportunities to buy large-scale property portfolios and make additional
corporate acquisitions in the net lease sector.”

“Our balance sheet, post-merger with ARCT III, provides us
considerable flexibility as we
ramp up

 our acquisition activity. As of
March 31, our net debt to
EBITDA

 ratio is only 5.3 times, with a modest
leverage ratio (net debt to enterprise value) of 25.9%,” observed

Brian

 S. Block, Executive Vice President and Chief Financial Officer of
ARCP. “Our upsized unsecured credit facility along with common
stock currency that has increased over 25% since the ARCT III merger on

February
 see month.
 28, affords us additional optionality with respect to
constructing a high credit quality real estate portfolio designed for
stability and growth with the long-term in mind. The acquisition team
continues to source net leased properties accretive to our earnings
comprised of both medium- and long-term leases to strong credit
tenants.”

First Quarter 2013 Operating Highlights

* Funds from operations: $24.5 million, or $0.16 per share.

* Adjusted funds from operations: $30.8 million, or $0.20 per
share.

* Core funds from operations: $30.1 million, or $0.20 per share.

* Revenues: $40.2 million. Total
annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.
 
GAAP

See generally accepted accounting principles (GAAP).
 revenues as of
March 31, 2013, are $165.4 million.

* Net
operating income

 (excluding one-time merger and acquisition
costs and non-cash depreciation and amortization expenses): $35.6
million.

* Total dividends paid to stockholders : $32.3 million, or $0.897
per share on an annualized basis ($0.90 per share on an annualized basis
for March).

* Fully diluted weighted-average shares and units outstanding :
154.3 million.

First Quarter 2013 Property Portfolio Highlights

* Completed acquisition of ARCT III: successfully closed on this
transformative transaction increasing ARCP’s total enterprise value
to approximately $3.1 billion (details below).

* Closed on $262.3 million of new acquisitions: in addition to
acquiring ARCT III,acquired 48 properties with an average
capitalization
rate

 of 7.84%, consistent with ARCP’s net lease investment strategy
(both long- and medium-term remaining primary lease terms).

* Current Portfolio composition: 701 100% occupied,
freestanding
  
adj.
Standing or operating independently of anything else:
 single tenant properties comprised of 16.7 million square feet, occupied
by 79.4% investment grade corporate tenants with a weighted average
remaining lease term of 11.1 years.

First Quarter 2013 Capital Markets Activity

* Issued common stock: In
January
 see month.
 2013, ARCP priced an underwritten
public
follow-on offering

 of 1,800,000 shares of its common stock at a
price of $13.47 per share (before
underwriting

 discounts and
commissions). The underwriters fully exercised their option to purchase
an additional 270,000 shares of common stock at the public offering
price, less underwriting discounts and commissions. The offering closed
on January 29, 2013. As a result, ARCP received total
net proceeds

 of
approximately $26.5 million, after deducting underwriting discounts,
commissions and estimated expenses.
Ladenburg Thalmann

 & Co. Inc.
acted as sole book running manager for the offering and Aegis Capital
Corp.,
Maxim
 , name of a family of inventors and munition makers.

Sir Hiram Stevens Maxim, 1840–1916, was born near Sangerville, Maine.
 Group
LLC

 and National Securities Corporation served as
co-managers.

* Launched an “At-The-Market” program : In January 2013,
ARCP re-launched its “at the market” equity offering
(“ATM”) program in which it may from time to time offer and
sell shares of its common stock having aggregate offering proceeds of up
to $60.0 million. The shares will be issued pursuant to ARCP’s
existing $500.0 million universal shelf registration statement. As of
March 31, 2013, ARCP had issued 61,000 shares at a weighted average
price per share of $13.47 for net proceeds of $0.8 million pursuant to
the ATM program. As of March 31, 2013, $59.2 million of shares of common
stock remained available for issuance under the ATM program.

* Filed
WKSI
 
 Shelf registration : In addition to its existing $500.0
million universal shelf registration statement, ARCP filed a universal
shelf registration statement as a “well known seasoned issuer”
(WKSI).

* Upsized unsecured credit facility: In connection with the ARCT III
merger, ARCP assumed an $875.0 million unsecured credit facility with

Wells Fargo

 Bank, National Association acting as administrative agent.
Capital One, N.A. and JP
Morgan
 American family of financiers and philanthropists.

Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking.
 Chase Bank, N.A. participated as
documentation agents and
RBS

RBS Rural Business Cooperative Service
RBS Ribosome Binding Site  
 Citizens, N.A. and Regions Bank acted as

syndication

 agents for the credit facility. This credit facility was
upsized twice and, as of March 31, 2013, provides financing of up to
$1.45 billion, comprised of a $810.0 million term loan and $640.0
million of
revolving credit

, at a current annualized interest rate of
1.96%. The credit facility also includes an ”
accordion
 musical instrument consisting of a rectangular bellows expanded and contracted between the hands. Buttons or keys operated by the player open valves, allowing air to enter or to escape. The air sets in motion free reeds, frequently made of metal.
 feature” that would allow ARCP, subject to certain conditions, to
increase the aggregate commitments to $2.5 billion.

Merger Agreement with ARCT III

On December 14, 2012, ARCP and ARCT III entered into a definitive
merger agreement under which ARCP would acquire all of the outstanding
shares of ARCT III in a transaction that would result in a combined
company with $3.1 billion of enterprise value, increasing ARCP’s
enterprise value
tenfold

Adjective

1. having ten times as many or as much

2. composed of ten parts

Adverb

by ten times as many or as much

Adj. 1.
. The independent members of both
companies’ board of directors unanimously approved the merger
agreement and on February 26, 2013, both companies’ stockholders
voted ‘FOR’ the proposal to approve the companies’
respective actions with respect to the merger. As previously announced,
more than 97.4% of the shares voting at the ARCP special meeting voted

in favor of

 the merger, representing more than 55.0% of all ARCP
outstanding shares. In addition, more than 98.4% of the shares voting at
ARCT III’s special meeting voted in favor of the merger,
representing more than 68.8% of all outstanding ARCT III common shares.
The transaction successfully closed on February 28, 2013. Merger related
costs incurred were slightly below our projections. The portfolio is
currently fully integrated into Company operations.

Financial Results

Funds From Operations and Adjusted Funds From Operations

Funds from operations (”
FFO

“) for the three months ended
March 31, 2013, totaled $24.5 million, or $0.16 per share. FFO for this
period includes one-time net acquisition and transaction related
expenses of $5.6 million. Excluding such one-time costs, core FFO is
$30.1 million, or $0.20 per share.

Adjusted funds from operations (”
AFFO

“) for the three
months ended March 31, 2013, totaled $30.8 million, or $0.20 per
share.

Dividend Increases

During the quarter ended March 31, 2013, ARCP announced its sixth
consecutive quarterly common stock dividend increase. The Company’s
board of directors authorized, and the Company declared on March 17,
2013, an increase in its annual dividend rate from $0.900 per share to
$0.910 per share. The new monthly dividend will be paid on June 15, 2013
to stockholders of record at the close of business on June 8, 2013, in
an amount equal to $0.075833 per share.

Total dividends paid to common stockholders by the Company were
$32.3 million for the three months ended March 31, 2013.

Property Portfolio

As of March 31, 2013, the Company owned 701 freestanding, single
tenant, 100% occupied net leased properties comprised of 16.7 million
square feet (excluding one vacant property classified as held-for-sale).
These properties are located in 45 states plus
Puerto Rico
 , island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla.
 and include
52 tenants, operating in 20 distinct industries. The weighted average
remaining primary lease term of the portfolio is 11.1 years and 79.4% of
annualized rental income is from tenants with investment grade ratings
as determined by a major
credit rating agency

 (includes properties
leased to
Home Depot

 USA, Inc., Bimbo Bakeries USA, Inc. and Iron
Mountain Information Management, Inc., which are, respectively, unrated
wholly owned subsidiaries of The Home Depot, Inc.,
Grupo Bimbo

 
SAB
 Spontaneous abortion. See Abortion.
 de
CV, and
Iron Mountain Incorporated

. We have attributed the rating of
each parent company to its
wholly owned subsidiary

 for purposes of this
discussion.)

In addition to the acquisition of ARCT III, during the quarter ended
March 31, 2013, ARCP acquired 48 properties, all 100% occupied,
comprised of over 1.3 million square feet for an aggregate base purchase
price of $262.3 million at an average capitalization rate of 7.84%. The
acquired properties are located in 10 states and occupied by 21 tenants,
further diversifying the tenant mix.

Since March 31, 2013, ARCP acquired an additional 20 properties, all
100% occupied, comprised of approximately 233,000 square feet for an
aggregate purchase price of $51.4 million at an average capitalization
rate of 7.85%. The acquired properties are located in 11 states plus
Puerto Rico and occupied by 9 tenants, further diversifying the tenant
mix. As a result, ARCP owns 721 freestanding, single tenant, 100%
occupied net leased properties comprised of approximately 17.0 million
square feet (excluding one vacant property classified as held-for-sale).
The following table summarizes the portfolio characteristics as of the
dates presented:

First Quarter 2013 Conference Call Details

ARCP will be hosting its first quarter 2013 conference call and
webcast on
Monday
 see week.
, May 6, 2013 at 11:00 AM ET. Nicholas S. Schorsch,
Chairman and Chief Executive Officer, and Brian S. Block, Executive Vice
President and Chief Financial Officer, will conduct the call. Conference
call details are as follows:

Live Conference Call and Webcast Details* Domestic Dial-In Number:
1-888-317-6003 International Dial-In Number: 1-412-317-6061
Canada
 , independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of
 Dial-In Number: 1-866-284-3684 Conference ID: 6124627 Webcast:
http://arcpreit.com/Q12013EarningsCall *Participants should dial in
10-15 minutes early.

Conference Call Replay Details Domestic Dial-In Number:
1-877-344-7529 International Dial-In Number: 1-412-317-0088 Conference
ID: 10027748 Date Available: May 6, 2013 (one hour after the end of the
conference call) to June 6, 2013 at 9:00 AM ET

Supplemental Information

Supplemental information on the Company’s first quarter 2013
operations can be found in the Company’s Current Report on
Form 8-K

See 8-K.
 filed with the U.S. Securities and Exchange Commission (SEC) on May 3,
2013. The supplemental information report is titled “Quarterly
Supplemental Information: First Quarter 2013.” Information in this
report includes, in addition to other data: (1)
Consolidated Balance
Sheet

A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm.
 and Income Statement Details; (2) Funds from Operations and
Adjusted Funds from Operations details; (3) Dividend Summary; and (4)
Portfolio Details.

Funds from Operations and Adjusted Funds from Operations

ARCP considers FFO and AFFO, which is FFO as adjusted to exclude
acquisition-related fees and expenses, amortization of above-market
lease assets and liabilities, amortization of deferred financing costs,

straight-line

adj.
1. Lying in a straight line.

2. Relating to a device whose linkage produces or copies motion in straight lines.

3.
 rent, non-cash mark-to-market adjustments, amortization of
restricted stock, non-cash compensation and gains and losses useful
indicators of the performance of a
REIT

See real estate investment trust (REIT).
. Because FFO calculations
exclude such factors as depreciation and amortization of real estate
assets and gains or losses from sales of operating real estate assets
(which can vary among owners of identical assets in similar conditions
based on historical cost accounting and useful-life estimates), they
facilitate comparisons of operating performance between periods and
between other REITs in our peer group. Accounting for real estate assets
in
accordance

 with GAAP
implicitly
  
adj.
1. Implied or understood though not directly expressed:

2.
 assumes that the value of real estate
assets diminishes predictably over time. Since real estate values have
historically risen or fallen with market conditions, many industry
investors and analysts have considered the presentation of operating
results for real estate companies that use historical cost accounting to
be insufficient by themselves.

Additionally, the Company believes that AFFO, by excluding
acquisition-related fees and expenses, amortization of above-market
lease assets and liabilities, amortization of deferred financing costs,
straight-line rent, non-cash mark-to-market adjustments, amortization of
restricted stock, non-cash compensation and gains and losses, provides
information consistent with management’s analysis of the operating
performance of the properties. By providing AFFO, ARCP believes it is
presenting useful information that assists investors and analysts to
better assess the sustainability of our operating performance. Further,
ARCP believes AFFO is useful in comparing the sustainability of our
operating performance with the sustainability of the operating
performance of other real estate companies, including exchange-traded
and non-traded REITs.

As a result, the Company believes that the use of FFO and AFFO,
together with the required GAAP presentations, provide a more complete
understanding of our performance relative to our peers and a more
informed and appropriate basis on which to make decisions involving
operating, financing, and investing activities.

About the Company

ARCP is a publicly traded
Maryland
 , one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N).
 corporation listed on The NASDAQ
Global Select Market that qualified as a real estate investment trust
for U.S. federal income tax purposes for the taxable year ended December
31, 2011, focused on acquiring and owning single tenant freestanding
commercial properties subject to net leases with high credit quality
tenants. Additional information about the ARCP can be found on its
website at www.arcpreit.com. ARCP may
disseminate
  
v. dis·sem·i·nat·ed, dis·sem·i·nat·ing, dis·sem·i·nates

v.tr.
1. To scatter widely, as in sowing seed.

2.
 important information
regarding the Company and its operations, including financial
information, through social media platforms such as
Twitter

, Facebook
and
LinkedIn

.

Important Notice The statements in this press release that are not
historical facts may be forward-looking statements. These forward
looking statements involve substantial risks and uncertainties. Actual
results or events could differ materially from the plans, intentions and
expectations disclosed in the forward-looking statements ARCP makes.
Forward-looking statements may include, but are not limited to,
statements regarding stockholder liquidity and investment value and
returns. The words “anticipates,” “believes,”
“expects,” “estimates,” “projects,”
“plans,” “intends,” “may,”
“will,” “would,” and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Factors that
might cause such differences include, but are not limited to: the impact
of current and future regulation; the impact of credit rating changes;
the effects of competition; the ability to attract, develop and retain
executives and other qualified employees; changes in general economic or
market conditions; and other factors, many of which are beyond our
control, including other factors included in our reports filed with the
SEC, particularly in the “Risk Factors” and

Management’s Discussion and Analysis

 of Financial Condition
and Results of Operations” sections of ARCP’s latest Annual
Report on Form 10-K and subsequent quarterly reports on Form 10-Q, each
as filed with the SEC, as such Risk Factors may be updated from time to
time in subsequent reports. ARCP does not assume any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.

The below table reflects the items
deducted
  
v. de·duct·ed, de·duct·ing, de·ducts

v.tr.
1. To take away (a quantity) from another; subtract.

2. To derive by deduction; deduce.

v.intr.
 or added to net loss in
our calculation of FFO and AFFO for the three months ended March 31,
2013 and 2012 (in thousands):

SOURCE American Realty Capital Properties, Inc.