CONTACTS

From: Anthony J. DeFazio	For: Brian S. Block, EVP & CFO
Diccicco Battista Communications	American Realty Capital New York Recovery REIT, Inc.
tdefazio@dbcworks.com	bblock@arlcap.com
Ph: (484-342-3600)	Ph: (212-415-6500)

 

FOR IMMEDIATE RELEASE

 

American Realty Capital New York Recovery REIT Reports 2012 Annual Results

 

New York, New York, March 7, 2013 ˗ American Realty Capital New York Recovery REIT (“NYRR,” the “Company,” “we,” “us” or “our”) announced its operating results for the fourth quarter ended December 31, 2012.

 

Fourth Quarter 2012 Highlights and Subsequent Events

 

	-	For the quarter ended December 31, 2012, we acquired four commercial real estate buildings for a contract purchase price of $137.6 million, exclusive of closing costs. The properties contain 302,180 rentable square, which are 94.8% leased and have a weighted average remaining lease term of 10.3 years.
	-	For the quarter ended December 31, 2012, we generated revenues of $4.9 million, based on generally accepted accounting principles (“GAAP”) and modified funds from operations (“MFFO”) of $1.9 million. (See non-GAAP tabular reconciliations and accompanying notes contained within this release for additional information.)
	-	As of March 7, 2013, our portfolio consisted of 16 properties, which are 96.0% leased on a weighted average basis, containing 596,818 rentable square feet for an aggregate contract purchase price of $350.7 million at a capitalization rate of 7.4% (calculated by dividing annualized rental income on a straight line basis plus operating expense reimbursement revenue less estimated property operating expenses).
	-	On October 9, 2012, we acquired the fee simple interest in a commercial building, containing approximately 20,000 rentable square feet, located at 1623 Kings Highway in Brooklyn, New York, for a contract purchase price of $13.3 million, exclusive of closing costs. The building is 100% leased with a weighted average remaining lease term of 10.4 years at the closing date.
	-	On December 26, 2012, we acquired the fee simple interest in an institutional-quality office building located at 256 West 38th Street in Manhattan for a contract purchase price of $48.6 million, exclusive of closing costs. The property contains approximately 119,000 rentable square feet and is 87% leased to 16 tenants with a weighted average remaining lease term of 5.1 years at the closing date.
	-	On December 27, 2012, we acquired the fee simple interest in an institutional-quality office building located at 229 West 36th Street in Manhattan for a contract purchase price of $64.9 million, exclusive of closing costs. The property contains approximately 149,000 rentable square feet and is 100% leased to seven tenants with a weighted average remaining lease term of 12.4 years at the closing date.
	-	On December 31, 2012, we closed the acquisition of a master lease for a commercial portion of a cooperative located at 350 Bleecker Street in Manhattan for a contract purchase price of $10.9 million, exclusive of closing costs. The property contains approximately 15,000 rentable square feet and is 100% leased to three tenants with a weighted average remaining lease term of 12.9 years at the closing date.
	-	In January 2013, we entered into a purchase and sale agreement to acquire the fee simple interest in an institutional-quality office building located at 218 West 18th Street in Manhattan for a contract purchase price of the property is $112.0 million, exclusive of closing costs. The property contains approximately 166,000 rentable square feet and is 84% leased to 5 tenants. Although we believe that the acquisition of this property is probable, there can be no assurance that the acquisition will be consummated. We intend to fund the acquisition with cash on hand. We may seek financing on the property at or post-closing from a lender yet to be identified. There is no assurance that we will be able to secure financing on terms that we deem favorable or at all.

 

 

The following table reflects the growth in our portfolio:

 

		December 31,
		2011				2012
Number of properties			9				16
Base purchase price (in thousands)		$	124,177			$	350,704
Rentable square feet			148,933				596,818
Occupancy			91.0	%			96.0	%
Weighted average remaining lease term (in years)			10.7				9.5

 

 

DISTRIBUTIONS

 

On September 22, 2010, our board of directors authorized, and we declared, a distribution rate equal to $0.605 per annum per share of common stock, commencing December 1, 2010.  The distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month at a rate of $0.00165753424 per day.

 

During the year ended December 31, 2012, distributions paid to common stockholders totaled $6.7 million inclusive of $3.3 million of the value of common stock issued under the distribution reinvestment plan (“DRIP”).  Distribution payments are dependent on the availability of funds.  Our board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured.

 

During the year ended December 31, 2012, cash used to pay our distributions was primarily generated from cash flows from operations, common stock issued under the DRIP and proceeds from financings.  We have continued to pay distributions to our stockholders each month since our initial distribution payment in April 2010.  There is no assurance that we will continue to declare distributions at this rate.

 

The following table shows the sources for the payment of distributions to common stockholders for the periods presented:

 

		Quarters Ended																																Year Ended
		March 31, 2012								June 30, 2012								September 30, 2012								December 31, 2012								December 31, 2012
(In thousands)						Percentage  of Distributions								Percentage  of Distributions								Percentage  of Distributions								Percentage  of Distributions								Percentage  of Distributions
Distributions:
Distribution paid in cash		$	523							$	750							$	974							$	1,198							$	3,445
Distributions reinvested			467								684								932								1,175								3,258
Total distributions		$	990							$	1,434							$	1,906							$	2,373							$	6,703
Source of distribution coverage:
Cash flows provided by operations (1)		$	990				100.0	%		$	230				16.0	%		$	1,202				63.1	%		$	607				25.6	%		$	3,029				45.2	%
Common stock issued under the DRIP / offering proceeds			—				—				684				47.7	%			704				36.9	%			1,175				49.5	%			2,563				38.2	%
Proceeds from issuance of common stock			—				—				—				—				—				—				—				—				—				—
Proceeds from financings			—				—				520				36.3	%			—				—				591				24.9	%			1,111				16.6	%
Total sources of distributions		$	990				100.0	%		$	1,434				100.0	%		$	1,906				100.0	%		$	2,373				100.0	%		$	6,703				100.0	%
Cash flows provided by operations (GAAP basis) (1)		$	992							$	228							$	1,202							$	607							$	3,029
Net loss attributable to stockholders (in accordance with GAAP)		$	(619	)						$	(1,148	)						$	(1,270	)						$	(3,302	)						$	(6,339	)

 

__________________

 

(1) Cash flows provided by operations for the year ended December 31, 2012 includes acquisition and transaction related expenses of $6.1 million.

 

 

AMERICAN REALTY CAPITAL NEW YORK RECOVERY REIT, INC.

 

CONSOLIDATED SUMMARY BALANCE SHEETS

(In thousands)

 

		December 31,
		2012				2011
ASSETS
Total real estate investments, net		$	348,594			$	121,451
Cash and cash equivalents			5,354				10,222
Restricted cash			962				179
Receivable for sale of common stock			1,123				208
Due from affiliate, net			325				358
Prepaid expenses and other assets			4,624				1,648
Deferred costs, net			6,868				2,898
Total assets		$	367,850			$	136,964
LIABILITIES AND EQUITY
Mortgage notes payable		$	185,569			$	75,250
Revolving credit facility			19,995				—
Notes payable			—				5,933
Below-market lease liabilities, net			6,235				1,579
Derivatives, at fair value			1,710				204
Accounts payable and accrued expenses			10,058				2,293
Deferred rent and other liabilities			866				227
Distributions payable			986				287
Total liabilities			225,419				85,773
Common stock			199				67
Additional paid-in capital			164,972				47,786
Accumulated other comprehensive loss			(1,693	)			(201	)
Accumulated deficit			(22,338	)			(8,597	)
Total stockholders’ equity			141,140				39,055
Non-controlling interests			1,291				12,136
Total equity			142,431				51,191
Total liabilities and equity		$	367,850			$	136,964

  

 

AMERICAN REALTY CAPITAL NEW YORK RECOVERY REIT, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

		Three Months Ended December 31, 2012				Year Ended  December 31, 2012
Revenues:
Rental income		$	4,643			$	14,519
Operating expense reimbursements			302				903
Total revenues			4,945				15,422
Operating expenses:
Property operating			866				2,398
Operating fees to affiliates			—				—
Acquisition and transaction related			3,182				6,066
General and administrative			77				226
Depreciation and amortization			2,588				8,097
Total operating expenses			6,713				16,787
Operating income (loss)			(1,768	)			(1,365	)
Other income (expenses):
Interest expense			(1,532	)			(4,994	)
Interest income			1				1
Loss on derivative instruments			(14	)			(14	)
Total other expenses			(1,545	)			(5,007	)
Net loss			(3,313	)			(6,372	)
Net loss (income) attributable to non-controlling interests			11				33
Net loss attributable to stockholders		$	(3,302	)		$	(6,339	)
Basic and diluted weighted average common shares outstanding			17,184,855				12,187,623
Basic and diluted net loss per share available to stockholders		$	(0.19	)		$	(0.52	)

 

 

 

American Realty Capital New York Recovery REIT, Inc.

Non-GAAP Measures – Funds from Operations and Modified Funds from Operations

 

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as funds from operations ("FFO"), which we believe to be an appropriate supplemental measure to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to our net income or loss as determined under accounting principles generally accepted in the United States of America ("GAAP").

 

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of property and asset impairment write-downs, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO. Our FFO calculation complies with NAREIT’s policy described above.

 

The historical accounting convention used for real estate assets requires depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances or as requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that, since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. Additionally, we believe it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indicators exist and if the carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that due to the fact that impairments are based on estimated undiscounted future cash flows and the relatively limited term of our operations, it could be difficult to recover any impairment charges.

 

Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization and impairments, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. However, FFO and modified funds from operations ("MFFO"), as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

 

 

 

Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses for all industries as items that are expensed under GAAP, that are typically accounted for as operating expenses. Management believes these fees and expenses do not affect our overall long-term operating performance. Publicly registered, non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. While other start up entities also may experience significant acquisition activity during their initial years, we believe that non-listed REITs are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after the acquisition activity ceases. As disclosed in our Annual Report on Form 10-K and Quarterly Report on Form 10-Q, we will use the proceeds raised our ongoing initial public offering (“IPO”) to acquire properties, and we intend to begin the process of achieving a liquidity event (i.e., listing of our common stock on a national exchange, a merger or sale of the company or another similar transaction) within three to five years of the completion of the IPO. Thus, we will not continuously purchase assets and will have a limited life. Due to the above factors and other unique features of publicly registered, non-listed REITs, the Investment Program Association (“IPA”), an industry trade group, has standardized a measure known as MFFO, which the IPA has recommended as a supplemental measure for publicly registered non-listed REITs and which we believe to be another appropriate supplemental measure to reflect the operating performance of a non-listed REIT having the characteristics described above. MFFO is not equivalent to our net income or loss as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate with a limited life and targeted exit strategy, as currently intended. We believe that, because MFFO excludes costs that we consider more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that affect our operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring our properties and once our portfolio is in place. By providing MFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance after our IPO has been completed and our properties have been acquired. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry. Further, as discussed in our Annual Report on Form 10-K and Quarterly Report on Form 10-Q, we believe MFFO is useful in comparing the sustainability of our operating performance after our IPO and acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. As disclosed in our Annual Report on Form 10-K and Quarterly Report on Form 10-Q, investors are cautioned that MFFO should only be used to assess the sustainability of our operating performance after our offering has been completed and properties have been acquired, as it excludes acquisition costs that have a negative effect on our operating performance during the periods in which properties are acquired.

 

 

We define MFFO, a non-GAAP measure, consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations, or the Practice Guideline, issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to deferred rent receivables and amortization of above and below market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; mark-to-market adjustments included in net income; gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While we are responsible for managing interest rate, hedge and foreign exchange risk, we do retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such gains and losses in calculating MFFO, as such gains and losses are not reflective of ongoing operations.

 

Our MFFO calculation complies with the IPA’s Practice Guideline described above. In calculating MFFO, we exclude acquisition related expenses, amortization of above and below market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests. Under GAAP, acquisition fees and expenses are characterized as operating expenses in determining operating net income. These expenses are paid in cash by us, and therefore such funds will not be available to distribute to investors. All paid and accrued acquisition fees and expenses negatively impact our operating performance during the period in which properties are acquired and will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. Therefore, MFFO may not be an accurate indicator of our operating performance, especially during periods in which properties are being acquired. MFFO that excludes such costs and expenses would only be comparable to that of non-listed REITs that have completed their acquisition activities and have similar operating characteristics as us. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income in determining cash flow from operating activities. In addition, we view fair value adjustments of derivatives as items which are unrealized and may not ultimately be realized. We view both gains and losses from dispositions of assets and fair value adjustments of derivatives as items which are not reflective of ongoing operations and are therefore typically adjusted for when assessing operating performance. As disclosed elsewhere in our Annual Report on Form 10-K and Quarterly Report on Form 10-Q, the purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our business plan to generate operational income and cash flows in order to make distributions to investors. Acquisition fees and expenses will not be reimbursed by our Advisor if there are no further proceeds from the sale of shares in our offering, and therefore such fees and expenses will need to be paid from either additional debt, operational earnings or cash flows, net proceeds from the sale of properties or from ancillary cash flows.

 

 

Our management uses MFFO and the adjustments used to calculate it in order to evaluate our performance against other non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate in this manner. We believe that our use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures is useful to investors. For example, acquisition costs are funded from the proceeds of our IPO and other financing sources and not from operations. By excluding expensed acquisition costs, the use of MFFO provides information consistent with management’s analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe MFFO provides useful supplemental information.

 

Presentation of this information is intended to provide useful information to investors as they compare the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and MFFO the same way. Accordingly, comparisons with other REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as an indication of our performance, as an alternative to cash flows from operations as an indication of our liquidity, or indicative of funds available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with GAAP measurements as an indication of our performance. MFFO has limitations as a performance measure in an offering such as ours where the price of a share of common stock is a stated value and there is no net asset value determination during the offering stage and for a period thereafter. MFFO is useful in assisting management and investors in assessing the sustainability of operating performance in future operating periods, and in particular, after the offering and acquisition stages are complete and net asset value is disclosed. FFO and MFFO are not useful measures in evaluating net asset value because impairments are taken into account in determining net asset value but not in determining FFO or MFFO.

 

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO.

 

 

The table below reflects the items deducted or added to net loss in our calculation of FFO and MFFO during the periods presented. The table reflects MFFO in the IPA recommended format and MFFO without the straight-line rent adjustment which management also uses as a performance measure. Items are presented net of non-controlling interest portions where applicable.

  

		Quarter Ended																Year ended
(In thousands)		March 31, 2012				June 30, 2012				September 30, 2012				December 31, 2012				December 31, 2012
Net loss attributable to stockholders (in accordance with GAAP)		$	(619	)		$	(1,148	)		$	(1,270	)		$	(3,302	)		$	(6,339	)
Depreciation and amortization			1,425				1,911				2,110				2,547				7,993
FFO			806				763				840				(755	)			1,654
Acquisition fees and expenses (1)			515				1,127				1,210				3,181				6,033
Amortization of above or below market leases (2)			(66	)			(123	)			(129	)			(109	)			(427	)
Mark-to-market adjustments (3)			1				—				—				13				14
MFFO			1,256				1,767				1,921				2,330				7,274
Straight-line rent (4)			(334	)			(398	)			(393	)			(433	)			(1,558	)
MFFO - IPA recommended format		$	922			$	1,369			$	1,528			$	1,897			$	5,716

______________________________

 

(1)

The purchase of properties, and the corresponding expenses associated with that process, is a key operational feature of our business plan to generate operational income and cash flows in order to make distributions to investors. In evaluating investments in real estate, management differentiates the costs to acquire the investment from the operations derived from the investment. Such information would be comparable only for non-listed REITs that have completed their acquisition activity and have other similar operating characteristics. By excluding expensed acquisition costs, management believes MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. Acquisition fees and expenses include payments to our Advisor or third parties. Acquisition fees and expenses under GAAP are considered operating expenses and as expenses included in the determination of net income and income from continuing operations, both of which are performance measures under GAAP. Such fees and expenses are paid in cash, and therefore such funds will not be available to distribute to investors. Such fees and expenses negatively impact our operating performance during the period in which properties are being acquired. Therefore, MFFO may not be an accurate indicator of our operating performance, especially during periods in which properties are being acquired. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to the property. Acquisition fees and expenses will not be reimbursed by our Advisor if there are no further proceeds from the sale of shares in our IPO, and therefore such fees will need to be paid from either additional debt, operational earnings or cash flows, net proceeds from the sale of properties or from ancillary cash flows.

 

 

(2)

Under GAAP, certain intangibles are accounted for at cost and reviewed at least annually for impairment, and certain intangibles are assumed to diminish predictably in value over time and amortized, similar to depreciation and amortization of other real estate related assets that are excluded from FFO. However, because real estate values and market lease rates historically rise or fall with market conditions, management believes that by excluding charges relating to amortization of these intangibles, MFFO provides useful supplemental information on the performance of the real estate.

 

(3)

Management believes that adjusting for mark-to-market adjustments is appropriate because they may not be reflective of ongoing operations and reflect unrealized impacts on value based only on then-current market conditions, although they may be based upon current operational issues related to an individual property or industry or general market conditions. Mark-to-market adjustments are made for items such as ineffective derivative instruments, certain marketable securities and any other items that GAAP requires we make a mark-to-market adjustment for. The need to reflect mark-to-market adjustments is a continuous process and is analyzed on a quarterly or annual basis in accordance with GAAP.

 

(4)

Under GAAP, rental receipts are allocated to periods using various methodologies. This may result in income recognition that is significantly different than underlying contract terms. By adjusting for these items (to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments), MFFO provides useful supplemental information on the realized economic impact of lease terms and debt investments, providing insight on the contractual cash flows of such lease terms and debt investments, and aligns results with management’s analysis of operating performance.

 

 

NYRR is a publicly registered, non-traded real estate investment trust (“REIT”) that has qualified as a REIT for tax purposes.

 

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 NYRR 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 NYRR’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. NYRR does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.