On Monday, Shares of Spirit Realty Capital Inc (NYSE: SRC) gained 0.25% to $8.05. The stock opened its trade at $8.04 and after floating in a price range of $7.94 to $8.13; the stock grabbed the investor’s attention and traded 3.69M shares as compared to its average daily volume of 7.25M shares. The stock’s institutional ownership stands at 96.40%.
Spirit Realty Capital, Inc. (SRC), a premier net lease real estate investment trust (REIT) that mainly invests in single-tenant, operationally essential real estate, recently stated its financial and operating results for the first quarter ended March 31, 2018.
FIRST QUARTER FINANCIAL RESULTS:
Total revenues were $165.30M contrast to $165.40M for the same period last year.
Net income attributable to common stockholders was $28.10M, or $0.06 per diluted share, contrast to $12.80M, or $0.03 per diluted share, for the same period last year.
FFO per diluted share was $0.24 and $0.20 for the three months ended March 31, 2018 and 2017, respectively.
AFFO was $95.30M (counting cash severance charges of $2.10M), contrast to $98.00M for the same period last year. AFFO per diluted share was $0.21 ($0.22excluding cash severance charges), contrast to $0.20 for the same period last year.
The Board of Directors declared a quarterly cash dividend of $0.18 per share, which equates to an annualized cash dividend of $0.72 per share. The quarterly dividend was paid on April 13, 2018 to stockholders of record as of March 30, 2018.
FIRST QUARTER PORTFOLIO HIGHLIGHTS:
Spirit invested $9.90M in one property and other revenue producing capital expenditures. The transaction, with an existing customer, has a lease term of 15.0 years and an initial weighted-average cash yield of about 7.99%.
The Company disposed of 29 properties for $37.70M in gross proceeds, counting the sale of 25 income producing properties for $28.20M, with a weighted average capitalization rate of 12.28%. The remaining four properties were non-revenue producing assets that were transferred to CMBS lenders, resulting in the resolution of $26.20M in secured debt.
Spirit funded a $35.00M, B-1 term loan to Shopko as part of a syndicated loan and security agreement. The loan bears interest at 12.0% per annum and matures in June of 2020. The loan is secured by Shopko’s assets collateralizing their $784.00M asset-back lending facility.
As of March 31, 2018, Spirit’s diversified real estate portfolio, comprised of 2,364 owned properties, was essentially fully occupied at 98.9% with a weighted average remaining lease term of 9.9 years.
BALANCE SHEET, LIQUIDITY & CAPITAL MARKETS:
- Adjusted Debt to Annualized Adjusted EBITDAre was 6.3x as of March 31, 2018.
- Unencumbered Assets totaled $4.50B as of March 31, 2018, representing about 58% of Spirit’s total real estate investments.
- As of April 30, 2018, Spirit had about $8.0M in cash and cash equivalents, $539.0M of available borrowing capacity under its $800.0M unsecured line of credit and $420.0M of available borrowing capacity under its undrawn Term Loan facility.
- As of April 30, 2018, Spirit had additional funds available for acquisitions of about $98.00M in its 1031 Exchange and Spirit Master Trust Program release accounts. As of April 30, 2018, our outstanding common share count is 426,418,536, excluding unvested restricted shares.
SHARE REPURCHASE PROGRAM:
In August 2017, Spirit’s Board of Directors authorized a new share repurchase program, under which the Company may repurchase up to $250.00M of its outstanding common stock. In the first quarter, the Company repurchased 13.20M shares of its outstanding common stock at a weighted average price of $7.88 per share.
As of April 30, 2018, the Company has fully utilized the remaining $63.90M authorized under the share repurchase program, having purchased 8.10M shares of its common stock at a weighted average price of $7.93 per share since March 31, 2018.
In the past 12 months, the Company has repurchased 57.10M shares, totaling $450.00M of its common stock at a weighted average price of $7.89 per share.
SRC has a market value of $3.57B while its EPS was booked as $0.09 in the last 12 months. The stock has 442.96M shares outstanding. In the profitability analysis, the company has gross profit margin of 94.80% while net profit margin was 13.30%. Beta value of the company was 0.48; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.70.