THE NECESSITY RETAIL REIT COMPLETES ACQUISITION OF OUTDOOR SHOPPING CENTER FOR $1.3 BILLION, CREATING RETAIL-DRIVEN PORTFOLIO

93 properties closed since the start of the year, growing portfolio of retail businesses needed to $5.3 billion real estate

Centers anchored in a grocery store increase by 22%1 of the multi-tenant portfolio, 57% of the linear rent1 Derived from properties in the Sunbelt states

NEW YORK, July 11, 2022 /PRNewswire/ — The Necessity Retail REIT, Inc. (Nasdaq: RTL) (“RTL” or the “Company”) today announced that the Company, through its operating partnership, has completed the final acquisition of the previously announced agreement to acquire a portfolio of 81 Power, Anchored and Grocery Centers from certain subsidiaries of CIM Real Estate Finance Trust, Inc. for $1.3 billion including debt assumed from $356 million. The Company also announced that since the beginning of the year, it has acquired 93 properties for a total of $1.4 billion. The properties acquired total 10.2 million square feet and were acquired at a capitalization rate of 7.24%2 and a weighted average capitalization rate of 8.60%3.

“We are delighted to complete the $1.3 billion the acquisition of a shopping center which, together with other acquisitions completed this year, brings our portfolio to more than 1,050 properties and $5.3 billion assets located where America shops,” said Michael Weill, CEO of RTL. “The transactions we have completed so far this year have deliberately focused our portfolio on necessity retail assets in suburban markets, including the addition of 13 grocery-anchored malls, while reducing our exposure. to office assets at 1% of our linear rent. The seamless integration of these properties into our portfolio has increased tenant and geographic diversification and increased occupancy in our outdoor shopping center segment, offering a strong defense against headwinds from the broader economy These transactions had an immediate positive impact on our first quarter results and we believe the full accretive effect of this year’s acquisitions will continue to play out over the remainder of the year. year, as we focus on continuing the strong rental activity we have experienced since the start of the year. »

Footnote

1 Represents the RTL portfolio as of and for the quarter ending March 31, 2022and the remaining 25 properties that had not yet been closed in March 31, 2022, and were “probable” acquisitions at the date. The information included in the pro forma presentation below concerning these probable acquisitions is valid for the three months ended September 30, 2021.
2 The capitalization rate is calculated by dividing this annualized rental income that properties are expected to generate in the first year of ownership (before debt service and depreciation and after fixed costs and projected variable costs) by the price purchase of properties, excluding acquisition costs . Weighted average cap rates are based on square feet.
3 The capitalization rate is calculated by dividing the annualized linear rental income that the property is expected to generate in its first year of ownership (before debt service and depreciation and after fixed costs and projected variable costs) by the purchase price of the well, excluding acquisition costs. The weighted average cap rate is based on square feet.

About Necessity Retail REIT Where America Shops

The Necessity Retail REIT (Nasdaq:RTL) is the leading publicly traded real estate investment trust (REIT) focused on “Where America Shops”. RTL acquires and manages a diversified portfolio of primarily necessity-oriented single-tenant retail properties and open-air shopping centers in the United States. Additional information about RTL is available on its website at www.necessityretailreit.com.

Important Notice

Statements contained in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially. The words “may”, “will”, “seek”, “anticipate”, “believe”, “expect”, “estimate”, “project”, “plan”, “intend”, ” should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are beyond the Company’s control, which could cause actual results to differ materially from those contemplated by the forward-looking statements. These risks and uncertainties include the potential adverse effects of (i) the ongoing global COVID-19 pandemic, including measures taken to contain or treat COVID-19, and (ii) geopolitical instability due to military conflict in course between Russia and Ukraineincluding related sanctions and other penalties imposed by the United States and the European Union, and the related impact on the Company, the Company’s tenants and the global economy and financial markets, as well as risks and uncertainties set out in the Risk Factors section of the company’s annual report on Form 10-K for the fiscal year ended December 31, 2021 filed on February 24, 2022 and all other documents filed with the SEC after such date, as such risks, uncertainties and other important factors may be updated from time to time in subsequent reports by the Company. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unforeseen events or changes in future operating results, unless required to do so. do so by law.

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SOURCE The Necessity Retail REIT, Inc.

Edwin S. Wolfe