American Finance Trust, Inc.

Third-quarter 2021 revenue was $91.9 million, up from $81.6 million in Q2 2021 and up 17.1% from $78.5 million in Q3 2020. GAAP net loss attributable to common stockholders was $6.4 million, versus $7.1 million in Q3 2020. NOI was $78.5 million, up 20% year over year, and cash NOI was $75.7 million, up 37.9% from $54.9 million. FFO attributable to common stockholders was $30.3 million, or $0.25 per share, up 8.3% from $0.24 per share a year ago; AFFO was $36 million, or $0.30 per share, up 41% from $0.23 per share. Forward-looking commentary: the company expects 74 property acquisitions for full-year 2021 totaling $225.2 million at an 8.4% weighted average cap rate and 11.1 years of weighted average remaining lease term, and said it expects to end the year with over $200 million of properties added to the portfolio.

Mike Weil framed the quarter as one of the strongest since the company’s 2018 listing, emphasizing earnings growth, balance sheet optimization, and portfolio quality. He highlighted the Truist branch lease terminations as evidence of platform execution and said the company is redeploying proceeds into accretive acquisitions to further diversify the portfolio. His tone was upbeat and confident, with repeated emphasis on discipline in underwriting, necessity retail, and a longer-term goal of reaching investment-grade credit ratings.

Jason Doyle focused on the reported financial performance and balance sheet actions. He cited $91.9 million of revenue, $78.5 million of NOI, $30.3 million of FFO, and $36 million of AFFO, plus quarter-end net debt of $1.7 billion and a weighted average interest rate of 3.6%. He also noted $99 million of cash and cash equivalents, $407 million of liquidity, $186 million drawn on the credit facility at September 30, and capital actions that improved weighted average debt maturity to 5.7 years.

Analysts pressed management on whether rising competition would lower acquisition cap rates in 2022, and Weil said the company would remain disciplined and avoid chasing pricing, especially in single-tenant net lease. He also said more multi-tenant deals are a reasonable possibility because AFIN can asset-manage and improve occupancy, but that retail-focused, necessity-oriented opportunities will continue to drive the strategy. On Truist, management clarified that the $15.5 million figure covers the sale price plus termination fees for the nine properties expected to close, and that the occupancy decline was tied mainly to the United Healthcare property, which is being marketed for sale and/or redevelopment.