|
UNITED STATES
|
SECURITIES AND EXCHANGE COMMISSION
|
Washington, D.C. 20549
|
VEREIT, INC.
|
|||||||||
VEREIT OPERATING PARTNERSHIP, L.P.
|
|||||||||
(Exact name of Registrant as specified in its charter)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
Maryland
|
|
001-35263
|
|
45-2482685
|
|||||
Delaware
|
|
333-197780
|
|
45-1255683
|
|||||
(State or other jurisdiction of incorporation)
|
|
(Commission File Number)
|
|
(I.R.S. Employer Identification No.)
|
|||||
|
|
|
|
|
|
|
|
|
|
2325 E. Camelback Road, Suite 1100
|
|||||||||
Phoenix, AZ 85016
|
|||||||||
(Address of principal executive offices, including zip code)
|
|||||||||
|
|||||||||
|
|||||||||
(800) 606-3610
|
|||||||||
(Registrant’s telephone number, including area code)
|
|||||||||
(Former name or former address, if changed since last report)
|
|
Exhibit No.
|
|
Description
|
10.1
|
|
|
99.1
|
|
|
99.2
|
|
|
VEREIT, INC.
|
|
|
|
|
|
By:
|
/s/ Michael J. Bartolotta
|
|
Name:
|
Michael J. Bartolotta
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
|
VEREIT OPERATING PARTNERSHIP, L.P.
By: VEREIT, Inc., its sole general partner
|
|
|
|
|
|
By:
|
/s/ Michael J. Bartolotta
|
|
Name:
|
Michael J. Bartolotta
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
Name of Purchased Subsidiary
|
Jurisdiction of organization
|
Jurisdiction where qualified to do business
|
CCA Real Estate, LLC
|
Delaware
|
AZ
|
|
CCA Acquisition, LLC
|
||
|
|
||
|
By:
|
/s/ Richard Ressler
|
|
|
Name:
|
Richard Ressler
|
|
|
Title:
|
Vice President
|
|
|
VEREIT Operating Partnership, L.P.
|
||
|
|
||
|
By:
|
/s/ Glenn J. Rufrano
|
|
|
Name:
|
Glenn J. Rufrano
|
|
|
Title:
|
Chief Executive Officer
|
|
|
|
September 30, 2017
As Reported
|
|
Pro Forma Adjustments
|
|
September 30, 2017 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Real estate investments, at cost:
|
|
|
|
|
|
|
||||||
Land
|
|
$
|
2,866,305
|
|
|
$
|
—
|
|
|
$
|
2,866,305
|
|
Buildings, fixtures and improvements
|
|
10,585,796
|
|
|
—
|
|
|
10,585,796
|
|
|||
Intangible lease assets
|
|
2,027,304
|
|
|
—
|
|
|
2,027,304
|
|
|||
Total real estate investments, at cost
|
|
15,479,405
|
|
|
|
|
15,479,405
|
|
||||
Less: accumulated depreciation and amortization
|
|
2,784,481
|
|
|
—
|
|
|
2,784,481
|
|
|||
Total real estate investments, net
|
|
12,694,924
|
|
|
|
|
12,694,924
|
|
||||
Investment in unconsolidated entities
|
|
44,101
|
|
|
(3,389
|
)
|
|
40,712
|
|
|||
Investment in direct financing leases, net
|
|
33,402
|
|
|
—
|
|
|
33,402
|
|
|||
Investment securities, at fair value
|
|
41,677
|
|
|
—
|
|
|
41,677
|
|
|||
Mortgage notes receivable, net
|
|
20,510
|
|
|
—
|
|
|
20,510
|
|
|||
Cash and cash equivalents
|
|
54,363
|
|
|
113,073
|
|
|
167,436
|
|
|||
Restricted cash
|
|
27,797
|
|
|
—
|
|
|
27,797
|
|
|||
Intangible assets, net
|
|
12,173
|
|
|
(12,173
|
)
|
|
—
|
|
|||
Rent and tenant receivables and other assets, net
|
|
336,938
|
|
|
(1,773
|
)
|
|
335,165
|
|
|||
Goodwill
|
|
1,462,585
|
|
|
(124,812
|
)
|
|
1,337,773
|
|
|||
Due from affiliates, net
|
|
6,638
|
|
|
(6,638
|
)
|
|
—
|
|
|||
Real estate assets held for sale, net
|
|
1,625
|
|
|
—
|
|
|
1,625
|
|
|||
Total assets
|
|
$
|
14,736,733
|
|
|
|
|
$
|
14,701,021
|
|
||
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
||||||
Mortgage notes payable and other debt, net
|
|
$
|
2,115,633
|
|
|
$
|
—
|
|
|
2,115,633
|
|
|
Corporate bonds, net
|
|
2,820,164
|
|
|
—
|
|
|
2,820,164
|
|
|||
Convertible debt, net
|
|
981,490
|
|
|
—
|
|
|
981,490
|
|
|||
Below-market lease liabilities, net
|
|
204,051
|
|
|
—
|
|
|
204,051
|
|
|||
Accounts payable and accrued expenses
|
|
152,413
|
|
|
(8,670
|
)
|
|
143,743
|
|
|||
Deferred rent, derivative and other liabilities
|
|
63,876
|
|
|
—
|
|
|
63,876
|
|
|||
Distributions payable
|
|
172,129
|
|
|
—
|
|
|
172,129
|
|
|||
Due to affiliates
|
|
8
|
|
|
(8
|
)
|
|
—
|
|
|||
Total liabilities
|
|
6,509,764
|
|
|
|
|
6,501,086
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized and 42,834,138 issued and outstanding as of September 30, 2017
|
|
428
|
|
|
—
|
|
|
428
|
|
|||
Common stock, $0.01 par value, 1,500,000,000 shares authorized and 974,245,345 issued and outstanding as of September 30, 2017
|
|
9,742
|
|
|
—
|
|
|
9,742
|
|
|||
Additional paid-in-capital
|
|
12,648,967
|
|
|
—
|
|
|
12,648,967
|
|
|||
Accumulated other comprehensive loss
|
|
(3,330
|
)
|
|
—
|
|
|
(3,330
|
)
|
|||
Accumulated deficit
|
|
(4,592,533
|
)
|
|
(26,391
|
)
|
|
(4,618,924
|
)
|
|||
Total stockholders’ equity
|
|
8,063,274
|
|
|
|
|
8,036,883
|
|
||||
Non-controlling interests
|
|
163,695
|
|
|
(643
|
)
|
|
163,052
|
|
|||
Total equity
|
|
8,226,969
|
|
|
|
|
8,199,935
|
|
||||
Total liabilities and equity
|
|
$
|
14,736,733
|
|
|
|
|
$
|
14,701,021
|
|
|
|
Nine Months Ended September 30, 2017 As Reported
|
|
Pro Forma Adjustments
|
|
Nine Months Ended September 30, 2017 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Rental income
|
|
$
|
862,371
|
|
|
$
|
—
|
|
|
$
|
862,371
|
|
Direct financing lease income
|
|
1,212
|
|
|
—
|
|
|
1,212
|
|
|||
Operating expense reimbursements
|
|
72,103
|
|
|
—
|
|
|
72,103
|
|
|||
Cole Capital revenue
|
|
83,001
|
|
|
(83,001
|
)
|
|
—
|
|
|||
Total revenues
|
|
1,018,687
|
|
|
|
|
935,686
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
||||||
Cole Capital reallowed fees and commissions
|
|
7,907
|
|
|
(7,907
|
)
|
|
—
|
|
|||
Acquisition-related
|
|
2,282
|
|
|
—
|
|
|
2,282
|
|
|||
Litigation and other non-routine costs, net of insurance recoveries
|
|
36,793
|
|
|
—
|
|
|
36,793
|
|
|||
Property operating
|
|
96,288
|
|
|
—
|
|
|
96,288
|
|
|||
General and administrative
|
|
88,355
|
|
|
(48,026
|
)
|
|
40,329
|
|
|||
Depreciation and amortization
|
|
543,963
|
|
|
(12,420
|
)
|
|
531,543
|
|
|||
Impairments
|
|
30,857
|
|
|
—
|
|
|
30,857
|
|
|||
Total operating expenses
|
|
806,445
|
|
|
|
|
738,092
|
|
||||
Operating income
|
|
212,242
|
|
|
|
|
197,594
|
|
||||
Other (expense) income:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(219,072
|
)
|
|
—
|
|
|
(219,072
|
)
|
|||
Gain on extinguishment and forgiveness of debt, net
|
|
18,691
|
|
|
—
|
|
|
18,691
|
|
|||
Other income, net
|
|
4,540
|
|
|
96
|
|
|
4,636
|
|
|||
Equity in income of unconsolidated entities
|
|
805
|
|
|
529
|
|
|
1,334
|
|
|||
Gain on derivative instruments, net
|
|
2,710
|
|
|
—
|
|
|
2,710
|
|
|||
Total other expenses, net
|
|
(192,326
|
)
|
|
|
|
(191,701
|
)
|
||||
Income before taxes and real estate dispositions
|
|
19,916
|
|
|
|
|
5,893
|
|
||||
Gain on disposition of real estate and held for sale assets, net
|
|
54,432
|
|
|
—
|
|
|
54,432
|
|
|||
Income before taxes
|
|
74,348
|
|
|
|
|
60,325
|
|
||||
Provision for income taxes
|
|
(8,878
|
)
|
|
3,439
|
|
|
(5,439
|
)
|
|||
Net income
|
|
65,470
|
|
|
|
|
54,886
|
|
||||
Net income attributable to non-controlling interests
|
|
(1,530
|
)
|
|
252
|
|
|
(1,278
|
)
|
|||
Net income attributable to the General Partner
|
|
$
|
63,940
|
|
|
|
|
$
|
53,608
|
|
||
|
|
|
|
|
|
|
||||||
Basic and diluted net income per share attributable to common stockholders
|
|
$
|
0.01
|
|
|
|
|
$
|
(0.00
|
)
|
|
|
Year Ended December 31, 2016 As Reported
|
|
Pro Forma Adjustments
|
|
Year Ended December 31, 2016 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Rental income
|
|
$
|
1,227,937
|
|
|
$
|
—
|
|
|
$
|
1,227,937
|
|
Direct financing lease income
|
|
2,055
|
|
|
—
|
|
|
2,055
|
|
|||
Operating expense reimbursements
|
|
105,455
|
|
|
—
|
|
|
105,455
|
|
|||
Cole Capital revenue
|
|
119,376
|
|
|
(119,376
|
)
|
|
—
|
|
|||
Total revenues
|
|
1,454,823
|
|
|
|
|
|
1,335,447
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
||||||
Cole Capital reallowed fees and commissions
|
|
23,174
|
|
|
(23,174
|
)
|
|
—
|
|
|||
Acquisition related
|
|
1,321
|
|
|
—
|
|
|
1,321
|
|
|||
Litigation, merger and other non-routine costs, net of insurance recoveries
|
|
3,884
|
|
|
—
|
|
|
3,884
|
|
|||
Property operating
|
|
144,428
|
|
|
—
|
|
|
144,428
|
|
|||
General and administrative
|
|
136,608
|
|
|
(84,681
|
)
|
|
51,927
|
|
|||
Depreciation and amortization
|
|
788,186
|
|
|
(26,148
|
)
|
|
762,038
|
|
|||
Impairments
|
|
303,751
|
|
|
(120,931
|
)
|
|
182,820
|
|
|||
Total operating expenses
|
|
1,401,352
|
|
|
|
|
|
1,146,418
|
|
|||
Operating income
|
|
53,471
|
|
|
|
|
|
189,029
|
|
|||
Other (expense) income:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(317,376
|
)
|
|
—
|
|
|
(317,376
|
)
|
|||
Loss on extinguishment and forgiveness of debt, net
|
|
(771
|
)
|
|
—
|
|
|
(771
|
)
|
|||
Other income, net
|
|
6,035
|
|
|
(394
|
)
|
|
5,641
|
|
|||
Equity in income and gain on disposition of unconsolidated entities
|
|
9,783
|
|
|
1,338
|
|
|
11,121
|
|
|||
Loss on derivative instruments, net
|
|
(1,191
|
)
|
|
—
|
|
|
(1,191
|
)
|
|||
Total other expenses, net
|
|
(303,520
|
)
|
|
|
|
|
(302,576
|
)
|
|||
Loss before taxes and real estate dispositions
|
|
(250,049
|
)
|
|
|
|
|
(113,547
|
)
|
|||
Gain on disposition of real estate and held for sale assets, net
|
|
45,524
|
|
|
—
|
|
|
45,524
|
|
|||
Loss before taxes
|
|
(204,525
|
)
|
|
|
|
|
(68,023
|
)
|
|||
Benefit from (provision for) income taxes
|
|
3,701
|
|
|
(10,837
|
)
|
|
(7,136
|
)
|
|||
Net loss
|
|
(200,824
|
)
|
|
|
|
|
(75,159
|
)
|
|||
Net loss attributable to non-controlling interests
|
|
4,961
|
|
|
(3,016
|
)
|
|
1,945
|
|
|||
Net loss attributable to the General Partner
|
|
$
|
(195,863
|
)
|
|
|
|
|
$
|
(73,214
|
)
|
|
|
|
|
|
|
|
|
||||||
Basic and diluted net loss per share attributable to common stockholders
|
|
$
|
(0.29
|
)
|
|
|
|
$
|
(0.16
|
)
|
|
|
Year Ended December 31, 2015 As Reported
|
|
Pro Forma Adjustments
|
|
Year Ended December 31, 2015 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Rental income
|
|
$
|
1,339,787
|
|
|
$
|
—
|
|
|
$
|
1,339,787
|
|
Direct financing lease income
|
|
2,720
|
|
|
—
|
|
|
2,720
|
|
|||
Operating expense reimbursements
|
|
98,628
|
|
|
—
|
|
|
98,628
|
|
|||
Cole Capital revenue
|
|
114,882
|
|
|
(114,882
|
)
|
|
—
|
|
|||
Total revenues
|
|
1,556,017
|
|
|
|
|
1,441,135
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
||||||
Cole Capital reallowed fees and commissions
|
|
16,195
|
|
|
(16,195
|
)
|
|
—
|
|
|||
Acquisition related
|
|
6,243
|
|
|
—
|
|
|
6,243
|
|
|||
Litigation, merger and other non-routine costs, net of insurance recoveries
|
|
33,628
|
|
|
—
|
|
|
33,628
|
|
|||
Property operating
|
|
130,855
|
|
|
—
|
|
|
130,855
|
|
|||
General and administrative
|
|
149,066
|
|
|
(81,931
|
)
|
|
67,135
|
|
|||
Depreciation and amortization
|
|
847,611
|
|
|
(25,884
|
)
|
|
821,727
|
|
|||
Impairments
|
|
305,094
|
|
|
(213,339
|
)
|
|
91,755
|
|
|||
Total operating expenses
|
|
1,488,692
|
|
|
|
|
1,151,343
|
|
||||
Operating income
|
|
67,325
|
|
|
|
|
289,792
|
|
||||
Other (expense) income:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(358,392
|
)
|
|
—
|
|
|
(358,392
|
)
|
|||
Gain on extinguishment and forgiveness of debt, net
|
|
4,812
|
|
|
—
|
|
|
4,812
|
|
|||
Other income, net
|
|
6,439
|
|
|
3,271
|
|
|
9,710
|
|
|||
Reserve for loan loss
|
|
(15,300
|
)
|
|
—
|
|
|
(15,300
|
)
|
|||
Equity in income and gain on disposition of unconsolidated entities
|
|
9,092
|
|
|
(46
|
)
|
|
9,046
|
|
|||
Loss on derivative instruments, net
|
|
(1,460
|
)
|
|
—
|
|
|
(1,460
|
)
|
|||
Total other expenses, net
|
|
(354,809
|
)
|
|
|
|
(351,584
|
)
|
||||
Loss before taxes and real estate dispositions
|
|
(287,484
|
)
|
|
|
|
(61,792
|
)
|
||||
Loss on disposition of real estate and held for sale assets, net
|
|
(72,311
|
)
|
|
—
|
|
|
(72,311
|
)
|
|||
Loss before taxes
|
|
(359,795
|
)
|
|
|
|
(134,103
|
)
|
||||
Benefit from income taxes
|
|
36,303
|
|
|
(40,892
|
)
|
|
(4,589
|
)
|
|||
Net loss
|
|
(323,492
|
)
|
|
|
|
(138,692
|
)
|
||||
Net loss attributable to non-controlling interests
|
|
7,139
|
|
|
(4,805
|
)
|
|
2,334
|
|
|||
Net loss attributable to the General Partner
|
|
$
|
(316,353
|
)
|
|
|
|
$
|
(136,358
|
)
|
||
|
|
|
|
|
|
|
||||||
Basic and diluted net loss per share attributable to common stockholders
|
|
$
|
(0.43
|
)
|
|
|
|
$
|
(0.23
|
)
|
|
|
Year Ended December 31, 2014 As Reported
|
|
Pro Forma Adjustments
|
|
Year Ended December 31, 2014 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Rental income
|
|
$
|
1,271,574
|
|
|
$
|
—
|
|
|
$
|
1,271,574
|
|
Direct financing lease income
|
|
3,603
|
|
|
—
|
|
|
3,603
|
|
|||
Operating expense reimbursements
|
|
100,522
|
|
|
—
|
|
|
100,522
|
|
|||
Cole Capital revenue
|
|
203,558
|
|
|
(203,558
|
)
|
|
—
|
|
|||
Total revenues
|
|
1,579,257
|
|
|
|
|
1,375,699
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
||||||
Cole Capital reallowed fees and commissions
|
|
66,228
|
|
|
(66,228
|
)
|
|
—
|
|
|||
Acquisition related
|
|
38,940
|
|
|
—
|
|
|
38,940
|
|
|||
Litigation, merger and other non-routine costs, net of insurance recoveries
|
|
199,616
|
|
|
—
|
|
|
199,616
|
|
|||
Property operating
|
|
137,741
|
|
|
—
|
|
|
137,741
|
|
|||
Management fees to affiliates
|
|
13,888
|
|
|
—
|
|
|
13,888
|
|
|||
General and administrative
|
|
167,428
|
|
|
(89,145
|
)
|
|
78,283
|
|
|||
Depreciation and amortization
|
|
916,003
|
|
|
(68,521
|
)
|
|
847,482
|
|
|||
Impairments
|
|
409,991
|
|
|
(309,444
|
)
|
|
100,547
|
|
|||
Total operating expenses
|
|
1,949,835
|
|
|
|
|
1,416,497
|
|
||||
Operating loss
|
|
(370,578
|
)
|
|
|
|
(40,798
|
)
|
||||
Other (expense) income:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(452,648
|
)
|
|
—
|
|
|
(452,648
|
)
|
|||
Loss on extinguishment and forgiveness of debt, net
|
|
(21,869
|
)
|
|
—
|
|
|
(21,869
|
)
|
|||
Other income, net
|
|
88,596
|
|
|
(2,079
|
)
|
|
86,517
|
|
|||
Equity in income (loss) of unconsolidated entities
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
|||
Loss on derivative instruments, net
|
|
(10,570
|
)
|
|
1,609
|
|
|
(8,961
|
)
|
|||
Total other expenses, net
|
|
(396,567
|
)
|
|
|
|
(397,037
|
)
|
||||
Loss before taxes and real estate dispositions
|
|
(767,145
|
)
|
|
|
|
(437,835
|
)
|
||||
Loss on disposition of real estate and held for sale assets, net
|
|
(277,031
|
)
|
|
—
|
|
|
(277,031
|
)
|
|||
Loss before taxes
|
|
(1,044,176
|
)
|
|
|
|
(714,866
|
)
|
||||
Benefit from income taxes
|
|
33,264
|
|
|
(40,577
|
)
|
|
(7,313
|
)
|
|||
Net loss
|
|
(1,010,912
|
)
|
|
|
|
(722,179
|
)
|
||||
Net loss attributable to non-controlling interests
|
|
33,727
|
|
|
(7,507
|
)
|
|
26,220
|
|
|||
Net loss attributable to the General Partner
|
|
$
|
(977,185
|
)
|
|
|
|
$
|
(695,959
|
)
|
||
|
|
|
|
|
|
|
||||||
Basic and diluted net loss per share attributable to common stockholders
|
|
$
|
(1.36
|
)
|
|
|
|
$
|
(1.01
|
)
|
|
|
September 30, 2017
As Reported
|
|
Pro Forma Adjustments
|
|
September 30, 2017 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Real estate investments, at cost:
|
|
|
|
|
|
|
||||||
Land
|
|
$
|
2,866,305
|
|
|
$
|
—
|
|
|
$
|
2,866,305
|
|
Buildings, fixtures and improvements
|
|
10,585,796
|
|
|
—
|
|
|
10,585,796
|
|
|||
Intangible lease assets
|
|
2,027,304
|
|
|
—
|
|
|
2,027,304
|
|
|||
Total real estate investments, at cost
|
|
15,479,405
|
|
|
|
|
15,479,405
|
|
||||
Less: accumulated depreciation and amortization
|
|
2,784,481
|
|
|
—
|
|
|
2,784,481
|
|
|||
Total real estate investments, net
|
|
12,694,924
|
|
|
|
|
12,694,924
|
|
||||
Investment in unconsolidated entities
|
|
44,101
|
|
|
(3,389
|
)
|
|
40,712
|
|
|||
Investment in direct financing leases, net
|
|
33,402
|
|
|
—
|
|
|
33,402
|
|
|||
Investment securities, at fair value
|
|
41,677
|
|
|
—
|
|
|
41,677
|
|
|||
Mortgage notes receivable, net
|
|
20,510
|
|
|
—
|
|
|
20,510
|
|
|||
Cash and cash equivalents
|
|
54,363
|
|
|
113,073
|
|
|
167,436
|
|
|||
Restricted cash
|
|
27,797
|
|
|
—
|
|
|
27,797
|
|
|||
Intangible assets, net
|
|
12,173
|
|
|
(12,173
|
)
|
|
—
|
|
|||
Rent and tenant receivables and other assets, net
|
|
336,938
|
|
|
(1,773
|
)
|
|
335,165
|
|
|||
Goodwill
|
|
1,462,585
|
|
|
(124,812
|
)
|
|
1,337,773
|
|
|||
Due from affiliates, net
|
|
6,638
|
|
|
(6,638
|
)
|
|
—
|
|
|||
Real estate assets held for sale, net
|
|
1,625
|
|
|
—
|
|
|
1,625
|
|
|||
Total assets
|
|
$
|
14,736,733
|
|
|
|
|
$
|
14,701,021
|
|
||
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
||||||
Mortgage notes payable and other debt, net
|
|
$
|
2,115,633
|
|
|
—
|
|
|
2,115,633
|
|
||
Corporate bonds, net
|
|
2,820,164
|
|
|
—
|
|
|
2,820,164
|
|
|||
Convertible debt, net
|
|
981,490
|
|
|
—
|
|
|
981,490
|
|
|||
Below-market lease liabilities, net
|
|
204,051
|
|
|
—
|
|
|
204,051
|
|
|||
Accounts payable and accrued expenses
|
|
152,413
|
|
|
(8,670
|
)
|
|
143,743
|
|
|||
Deferred rent, derivative and other liabilities
|
|
63,876
|
|
|
—
|
|
|
63,876
|
|
|||
Distributions payable
|
|
172,129
|
|
|
—
|
|
|
172,129
|
|
|||
Due to affiliates
|
|
8
|
|
|
(8
|
)
|
|
—
|
|
|||
Total liabilities
|
|
6,509,764
|
|
|
|
|
6,501,086
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
||||||
General Partner's preferred equity, 42,834,138 General Partner Preferred Units issued and outstanding as of September 30, 2017
|
|
800,010
|
|
|
—
|
|
|
800,010
|
|
|||
General Partner's common equity, 974,245,345 General Partner OP Units issued and outstanding as of September 30, 2017
|
|
7,263,264
|
|
|
(26,391
|
)
|
|
7,236,873
|
|
|||
Limited Partner's preferred equity, 86,874 Limited Partner Preferred Units issued and outstanding as of September 30, 2017
|
|
3,063
|
|
|
—
|
|
|
3,063
|
|
|||
Limited Partner's common equity, 23,748,347 Limited Partner OP Units issued and outstanding as of September 30, 2017
|
|
158,326
|
|
|
(643
|
)
|
|
157,683
|
|
|||
Total partners’ equity
|
|
8,224,663
|
|
|
|
|
8,197,629
|
|
||||
Non-controlling interests
|
|
2,306
|
|
|
—
|
|
|
2,306
|
|
|||
Total equity
|
|
8,226,969
|
|
|
|
|
8,199,935
|
|
||||
Total liabilities and equity
|
|
$
|
14,736,733
|
|
|
|
|
$
|
14,701,021
|
|
|
|
Nine Months Ended September 30, 2017 As Reported
|
|
Pro Forma Adjustments
|
|
Nine Months Ended September 30, 2017 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Rental income
|
|
$
|
862,371
|
|
|
$
|
—
|
|
|
$
|
862,371
|
|
Direct financing lease income
|
|
1,212
|
|
|
—
|
|
|
1,212
|
|
|||
Operating expense reimbursements
|
|
72,103
|
|
|
—
|
|
|
72,103
|
|
|||
Cole Capital revenue
|
|
83,001
|
|
|
(83,001
|
)
|
|
—
|
|
|||
Total revenues
|
|
1,018,687
|
|
|
|
|
935,686
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
||||||
Cole Capital reallowed fees and commissions
|
|
7,907
|
|
|
(7,907
|
)
|
|
—
|
|
|||
Acquisition-related
|
|
2,282
|
|
|
—
|
|
|
2,282
|
|
|||
Litigation and other non-routine costs, net of insurance recoveries
|
|
36,793
|
|
|
—
|
|
|
36,793
|
|
|||
Property operating
|
|
96,288
|
|
|
—
|
|
|
96,288
|
|
|||
General and administrative
|
|
88,355
|
|
|
(48,026
|
)
|
|
40,329
|
|
|||
Depreciation and amortization
|
|
543,963
|
|
|
(12,420
|
)
|
|
531,543
|
|
|||
Impairments
|
|
30,857
|
|
|
—
|
|
|
30,857
|
|
|||
Total operating expenses
|
|
806,445
|
|
|
|
|
738,092
|
|
||||
Operating income
|
|
212,242
|
|
|
|
|
197,594
|
|
||||
Other (expense) income:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(219,072
|
)
|
|
—
|
|
|
(219,072
|
)
|
|||
Gain on extinguishment and forgiveness of debt, net
|
|
18,691
|
|
|
—
|
|
|
18,691
|
|
|||
Other income, net
|
|
4,540
|
|
|
96
|
|
|
4,636
|
|
|||
Equity in income of unconsolidated entities
|
|
805
|
|
|
529
|
|
|
1,334
|
|
|||
Gain on derivative instruments, net
|
|
2,710
|
|
|
—
|
|
|
2,710
|
|
|||
Total other expenses, net
|
|
(192,326
|
)
|
|
|
|
(191,701
|
)
|
||||
Income before taxes and real estate dispositions
|
|
19,916
|
|
|
|
|
5,893
|
|
||||
Gain on disposition of real estate and held for sale assets, net
|
|
54,432
|
|
|
—
|
|
|
54,432
|
|
|||
Income before taxes
|
|
74,348
|
|
|
|
|
60,325
|
|
||||
Provision for income taxes
|
|
(8,878
|
)
|
|
3,439
|
|
|
(5,439
|
)
|
|||
Net income
|
|
65,470
|
|
|
|
|
54,886
|
|
||||
Net loss attributable to non-controlling interests
|
|
12
|
|
|
—
|
|
|
12
|
|
|||
Net income attributable to the OP
|
|
$
|
65,482
|
|
|
|
|
$
|
54,898
|
|
||
|
|
|
|
|
|
|
||||||
Basic and diluted net income per unit attributable to common unitholders
|
|
$
|
0.01
|
|
|
|
|
$
|
0.00
|
|
|
|
Year Ended December 31, 2016 As Reported
|
|
Pro Forma Adjustments
|
|
Year Ended December 31, 2016 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Rental income
|
|
$
|
1,227,937
|
|
|
$
|
—
|
|
|
$
|
1,227,937
|
|
Direct financing lease income
|
|
2,055
|
|
|
—
|
|
|
2,055
|
|
|||
Operating expense reimbursements
|
|
105,455
|
|
|
—
|
|
|
105,455
|
|
|||
Cole Capital revenue
|
|
119,376
|
|
|
(119,376
|
)
|
|
—
|
|
|||
Total revenues
|
|
1,454,823
|
|
|
|
|
|
1,335,447
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
||||||
Cole Capital reallowed fees and commissions
|
|
23,174
|
|
|
(23,174
|
)
|
|
—
|
|
|||
Acquisition related
|
|
1,321
|
|
|
—
|
|
|
1,321
|
|
|||
Litigation, merger and other non-routine costs, net of insurance recoveries
|
|
3,884
|
|
|
—
|
|
|
3,884
|
|
|||
Property operating
|
|
144,428
|
|
|
—
|
|
|
144,428
|
|
|||
General and administrative
|
|
136,608
|
|
|
(84,681
|
)
|
|
51,927
|
|
|||
Depreciation and amortization
|
|
788,186
|
|
|
(26,148
|
)
|
|
762,038
|
|
|||
Impairments
|
|
303,751
|
|
|
(120,931
|
)
|
|
182,820
|
|
|||
Total operating expenses
|
|
1,401,352
|
|
|
|
|
|
1,146,418
|
|
|||
Operating income
|
|
53,471
|
|
|
|
|
|
189,029
|
|
|||
Other (expense) income:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(317,376
|
)
|
|
—
|
|
|
(317,376
|
)
|
|||
Loss on extinguishment and forgiveness of debt, net
|
|
(771
|
)
|
|
—
|
|
|
(771
|
)
|
|||
Other income, net
|
|
6,035
|
|
|
(394
|
)
|
|
5,641
|
|
|||
Equity in income and gain on disposition of unconsolidated entities
|
|
9,783
|
|
|
1,338
|
|
|
11,121
|
|
|||
Loss on derivative instruments, net
|
|
(1,191
|
)
|
|
—
|
|
|
(1,191
|
)
|
|||
Total other expenses, net
|
|
(303,520
|
)
|
|
|
|
|
(302,576
|
)
|
|||
Loss before taxes and real estate dispositions
|
|
(250,049
|
)
|
|
|
|
|
(113,547
|
)
|
|||
Gain on disposition of real estate and held for sale assets, net
|
|
45,524
|
|
|
—
|
|
|
45,524
|
|
|||
Loss before taxes
|
|
(204,525
|
)
|
|
|
|
|
(68,023
|
)
|
|||
Benefit from (provision for) income taxes
|
|
3,701
|
|
|
(10,837
|
)
|
|
(7,136
|
)
|
|||
Net loss
|
|
(200,824
|
)
|
|
|
|
|
(75,159
|
)
|
|||
Net loss (income) attributable to non-controlling interests
|
|
14
|
|
|
—
|
|
|
14
|
|
|||
Net loss attributable to the OP
|
|
$
|
(200,810
|
)
|
|
|
|
|
$
|
(75,145
|
)
|
|
|
|
|
|
|
|
|
||||||
Basic and diluted net loss per unit attributable to common unitholders
|
|
$
|
(0.29
|
)
|
|
|
|
$
|
(0.15
|
)
|
|
|
Year Ended December 31, 2015 As Reported
|
|
Pro Forma Adjustments
|
|
Year Ended December 31, 2015 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Rental income
|
|
$
|
1,339,787
|
|
|
$
|
—
|
|
|
$
|
1,339,787
|
|
Direct financing lease income
|
|
2,720
|
|
|
—
|
|
|
2,720
|
|
|||
Operating expense reimbursements
|
|
98,628
|
|
|
—
|
|
|
98,628
|
|
|||
Cole Capital revenue
|
|
114,882
|
|
|
(114,882
|
)
|
|
—
|
|
|||
Total revenues
|
|
1,556,017
|
|
|
|
|
1,441,135
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
||||||
Cole Capital reallowed fees and commissions
|
|
16,195
|
|
|
(16,195
|
)
|
|
—
|
|
|||
Acquisition related
|
|
6,243
|
|
|
—
|
|
|
6,243
|
|
|||
Litigation, merger and other non-routine costs, net of insurance recoveries
|
|
33,628
|
|
|
—
|
|
|
33,628
|
|
|||
Property operating
|
|
130,855
|
|
|
—
|
|
|
130,855
|
|
|||
General and administrative
|
|
149,066
|
|
|
(81,931
|
)
|
|
67,135
|
|
|||
Depreciation and amortization
|
|
847,611
|
|
|
(25,884
|
)
|
|
821,727
|
|
|||
Impairments
|
|
305,094
|
|
|
(213,339
|
)
|
|
91,755
|
|
|||
Total operating expenses
|
|
1,488,692
|
|
|
|
|
1,151,343
|
|
||||
Operating income
|
|
67,325
|
|
|
|
|
289,792
|
|
||||
Other (expense) income:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(358,392
|
)
|
|
—
|
|
|
(358,392
|
)
|
|||
Gain on extinguishment and forgiveness of debt, net
|
|
4,812
|
|
|
—
|
|
|
4,812
|
|
|||
Other income, net
|
|
6,439
|
|
|
3,271
|
|
|
9,710
|
|
|||
Reserve for loan loss
|
|
(15,300
|
)
|
|
—
|
|
|
(15,300
|
)
|
|||
Equity in income and gain on disposition of unconsolidated entities
|
|
9,092
|
|
|
(46
|
)
|
|
9,046
|
|
|||
Loss on derivative instruments, net
|
|
(1,460
|
)
|
|
—
|
|
|
(1,460
|
)
|
|||
Total other expenses, net
|
|
(354,809
|
)
|
|
|
|
(351,584
|
)
|
||||
Loss before taxes and real estate dispositions
|
|
(287,484
|
)
|
|
|
|
(61,792
|
)
|
||||
Loss on disposition of real estate and held for sale assets, net
|
|
(72,311
|
)
|
|
—
|
|
|
(72,311
|
)
|
|||
Loss before taxes
|
|
(359,795
|
)
|
|
|
|
(134,103
|
)
|
||||
Benefit from income taxes
|
|
36,303
|
|
|
(40,892
|
)
|
|
(4,589
|
)
|
|||
Net loss
|
|
(323,492
|
)
|
|
|
|
(138,692
|
)
|
||||
Net (income) attributable to non-controlling interests
|
|
(1,274
|
)
|
|
—
|
|
|
(1,274
|
)
|
|||
Net loss attributable to the OP
|
|
$
|
(324,766
|
)
|
|
|
|
$
|
(139,966
|
)
|
||
|
|
|
|
|
|
|
||||||
Basic and diluted net loss per unit attributable to common unitholders
|
|
$
|
(0.43
|
)
|
|
|
|
$
|
(0.23
|
)
|
|
|
Year Ended December 31, 2014 As Reported
|
|
Pro Forma Adjustments
|
|
Year Ended December 31, 2014 Pro Forma
|
||||||
|
|
(1)
|
|
(2)
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Rental income
|
|
$
|
1,271,574
|
|
|
$
|
—
|
|
|
$
|
1,271,574
|
|
Direct financing lease income
|
|
3,603
|
|
|
—
|
|
|
3,603
|
|
|||
Operating expense reimbursements
|
|
100,522
|
|
|
—
|
|
|
100,522
|
|
|||
Cole Capital revenue
|
|
203,558
|
|
|
(203,558
|
)
|
|
—
|
|
|||
Total revenues
|
|
1,579,257
|
|
|
|
|
1,375,699
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
||||||
Cole Capital reallowed fees and commissions
|
|
66,228
|
|
|
(66,228
|
)
|
|
—
|
|
|||
Acquisition related
|
|
38,940
|
|
|
—
|
|
|
38,940
|
|
|||
Litigation, merger and other non-routine costs, net of insurance recoveries
|
|
199,616
|
|
|
—
|
|
|
199,616
|
|
|||
Property operating
|
|
137,741
|
|
|
—
|
|
|
137,741
|
|
|||
Management fees to affiliates
|
|
13,888
|
|
|
—
|
|
|
13,888
|
|
|||
General and administrative
|
|
167,428
|
|
|
(89,145
|
)
|
|
78,283
|
|
|||
Depreciation and amortization
|
|
916,003
|
|
|
(68,521
|
)
|
|
847,482
|
|
|||
Impairments
|
|
409,991
|
|
|
(309,444
|
)
|
|
100,547
|
|
|||
Total operating expenses
|
|
1,949,835
|
|
|
|
|
1,416,497
|
|
||||
Operating loss
|
|
(370,578
|
)
|
|
|
|
(40,798
|
)
|
||||
Other (expense) income:
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(452,648
|
)
|
|
—
|
|
|
(452,648
|
)
|
|||
Loss on extinguishment and forgiveness of debt, net
|
|
(21,869
|
)
|
|
—
|
|
|
(21,869
|
)
|
|||
Other income, net
|
|
88,596
|
|
|
(2,079
|
)
|
|
86,517
|
|
|||
Equity in income (loss) of unconsolidated entities
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
|||
Loss on derivative instruments, net
|
|
(10,570
|
)
|
|
1,609
|
|
|
(8,961
|
)
|
|||
Total other expenses, net
|
|
(396,567
|
)
|
|
|
|
(397,037
|
)
|
||||
Loss before taxes and real estate dispositions
|
|
(767,145
|
)
|
|
|
|
(437,835
|
)
|
||||
Loss on disposition of real estate and held for sale assets, net
|
|
(277,031
|
)
|
|
—
|
|
|
(277,031
|
)
|
|||
Loss before taxes
|
|
(1,044,176
|
)
|
|
|
|
(714,866
|
)
|
||||
Benefit from income taxes
|
|
33,264
|
|
|
(40,577
|
)
|
|
(7,313
|
)
|
|||
Net loss
|
|
(1,010,912
|
)
|
|
|
|
(722,179
|
)
|
||||
Net loss attributable to non-controlling interests
|
|
154
|
|
|
—
|
|
|
154
|
|
|||
Net loss attributable to the OP
|
|
$
|
(1,010,758
|
)
|
|
|
|
$
|
(722,025
|
)
|
||
|
|
|
|
|
|
|
||||||
Basic and diluted net loss per unit attributable to common unitholders
|
|
$
|
(1.36
|
)
|
|
|
|
$
|
(1.01
|
)
|
(1)
|
Represents the VEREIT's and the Operating Partnership's historical financial position as of September 30, 2017 and historical results of operations for the nine months ended September 30, 2017, and for the three years ended December 31, 2016, 2015, and 2014, prior to any pro forma adjustments for the Cole Capital Sale.
|
(2)
|
Represents Cole Capital's historical financial position as of September 30, 2017 and operating results for the nine months ended September 30, 2017, and the years ended December 31, 2016, 2015, and 2014, except the pro forma adjustments described below that are a direct result of the transaction.
|