Unassociated Document
FILE NO.
333-145949
AMERICAN
REALTY CAPITAL TRUST, INC.
SUPPLEMENT
NO. 12 DATED SEPTEMBER 29, 2010
TO
THE PROSPECTUS DATED NOVEMBER 10, 2009
This
prospectus supplement (this “Supplement No. 12”) is part of the prospectus of
American Realty Capital Trust, Inc. (“we,” the “REIT,” or “Company”), dated
November 10, 2009 (the “Prospectus”), Supplement No. 11, dated September 9, 2010
(“Supplement No. 11), Supplement No. 10, dated August 18, 2010 (“Supplement No.
10”) and Supplement No. 9, dated July 22, 2010 (“Supplement No. 9”) and should
be read in conjunction with the Prospectus and Supplement Nos. 9, 10, and
11. This Supplement No. 12 supplements, modifies or supersedes
certain information contained in our Prospectus and Supplements Nos. 9, 10, and
11. This Supplement No. 12 will be delivered with the Prospectus and Supplements
Nos. 9, 10, and 11.
The
purpose of this Supplement No. 12 is to update our previous disclosure regarding
the status of our offering as well as to disclose recently completed
acquisitions of real estate investments.
Status
of the Offering
We
commenced our initial public offering of 150,000,000 shares of common stock on
January 25, 2008. As of September 15, 2010, we had issued 40,609,490
shares of common stock, including 339,077 shares issued in connection with an
acquisition in March 2008. Total gross proceeds from these issuances
were $401.9 million. As of September 15, 2010, the aggregate value of
all share issuances and subscriptions outstanding was $405.7 million based on a
per share value of $10.00 (or $9.50 per share for shares issued under the
DRIP).
On August
5, 2010, we filed a registration statement on Form S-11 with the U.S. Securities
Exchange Commission, or the SEC, to register $325 million of common stock for
the follow on offering to our initial public offering. Our initial public
offering was originally set to expire on January 25, 2011. However,
as permitted by Rule 415 of the Securities Act of 1933, as amended, or the
Securities Act, we will now continue our initial public offering until the
earlier of July 24, 2011, or the date that the SEC declares the registration
statement for the follow on offering effective.
Shares
Currently Available for Sale
As of
September 15, 2010, there were 109,390,510 shares of our common stock available
for sale, excluding shares available under the DRIP.
Real
Property Investments
The
following disclosure is to be added to the section of the Prospectus entitled
“Real Property Investments” on pages 87-104.
O’Reilly
Auto Parts Property
On
September 14, 2010, we acquired one free standing, fee simple O’Reilly Auto
Parts store located in Joliet, Illinois for a purchase price of approximately
$2.5 million. The property contains 9,500 square feet of gross
leasable area. The tenant of the property is O’Reilly Automotive,
Inc. (“O’Reilly”).
The
original lease term at commencement was 15 years with 9.5 years currently
remaining. The lease contains a contractual rent escalation of 5% in
year 11 and three five-year renewal options with 5% increases over the previous
base rent. The lease is triple net whereby O’Reilly is required to
pay substantially all operating expenses, including all costs to maintain and
repair the roof and structure of the building and the costs of all capital
expenditures, in addition to base rent. The average annual base rent
for the initial term is approximately $214,000.
We funded
the acquisition of the property with proceeds from the sale of our common
stock. We may finanace the acquisition post-closing, however, there
is no guarantee that we will be able to obtain financing on terms that we
believe are favorable or at all.
O’Reilly
Automotive, Inc., D.B.A. O’Reilly Auto Parts, (NASDAQ: ORLY) is a specialty
retailer of automotive aftermarket parts, tools, supplies, equipment and
accessories in the United States, selling its products to both do-it-yourself
customers and professional installers. As of December 31, 2009, the Company
operated 3,421 stores in 38 states. The company was founded in 1957 and is
headquartered in Springfield, Missouri.
Walgreen’s
Pharmacy Properties
On
September 15, 2010, we acquired a build-to-suit, free standing fee simple
property for Walgreen’s Pharmacy (“Walgreen’s”) located in Grand Rapids,
Minnesota for a purchase price of approximately $6.5 million. The
property contains 14,450 square feet of gross leasable area.
On September 16, 2010, we acquired a
build-to-suit, free standing fee simple property for Walgreen’s located in Mt.
Pleasant, Michigan for a purchase price of approximately $4.8
million. The property contains 13,580 square feet of gross leasable
area.
The
original lease term at commencement was 25 years with 23.7 years
remaining. The lease does not contain rent escalations during the
primary term, consistent with all newer Walgreen’s leases. The lease
is triple net whereby Walgreen’s is required to pay substantially all operating
expenses, including all costs to maintain and repair the roof and structure of
the building, and the cost of all capital expenditures, in addition to base
rent. The annual rent for the initial lease term is
$379,000.
The
acquistion of the two properties described above increases the size of our
Walgreens Portfolio from eight to ten properties. We previously
acquired eight build-to-suit, freestanding, fee-simple pharmacies for Walgreens
located in Sealy, Texas, Byram, Mississippi, LeRoy, New York, Austin, Texas,
Chelsea, Alabama, Joliet, Illinois, Marysville, Ohio and Upper Arlington,
Ohio.
Walgreen
Co. (NYSE: WAG) operates a chain of drugstores in the United States. The
drugstores sell prescription and non-prescription drugs, and general
merchandise. Its general merchandise comprises household items, personal care,
convenience foods, beauty care, photofinishing, candy, and seasonal items. The
company provides its services through drugstore counters, as well as through
mail, telephone, and the Internet. As of August 31, 2009, Walgreen operated
7,496 locations comprising 6,997 drugstores, 377 worksite facilities, 105 home
care facilities, 15 specialty pharmacies, and 2 mail service facilities in 50
states, the District of Columbia, Puerto Rico, and Guam. It also owned 33 strip
shopping malls. The company was founded in 1901 and is based in Deerfield,
Illinois.
Kum
& Go Portfolio
On September 16, 2010, we acquired
thirteen fee simple properties for Kum & Go, L.C. (“Kum & Go”)
and an additional property on September 20, 2010 for an
aggregate purchase price of approximately $23.0 million. The
tenant of the properties is Kum & Go. The properties contain
67,310 square feet of gross leasable area. Set forth below are the
locations for each of the properties:
|
Address
|
City
|
State
|
| |
|
|
|
3449
West Kearney Street
|
Springfield
|
MO
|
|
195
Gage Street
|
Hollister
|
MO
|
|
3015
West Republic Road
|
Springfield
|
MO
|
|
3303
West Broadway Street
|
Bolivar
|
MO
|
|
2565
South Springfield Ave.
|
Bolivar
|
MO
|
|
959
South Glenstone Avenue
|
Springfield
|
MO
|
|
308
Ichord Avenue
|
Waynesville
|
MO
|
|
103
West Old Mill Road
|
Fair
Grove
|
MO
|
|
2149
South Campbell Avenue
|
Springfield
|
MO
|
|
1701
West Smith Street
|
Springfield
|
MO
|
|
2744
East Chestnut Expressway
|
Springfield
|
MO
|
|
870
East US Highway 60
|
Monett
|
MO
|
|
215
South Kansas Expressway
|
Springfield
|
MO
|
|
3445
East Kearney St
|
Springfield
|
MO
|
The
original lease terms at commencement ranged from 5 to 19 years with an average
of 13.4 years currently remaining. The leases contain contractual
rental escalations of 8% every five years and provide four renewal options for
five years each. The leases are triple net whereby Kum & Go is
required to pay substantially all operating expenses, including all costs to
maintain and repair the roof and structure of the building, and the cost of all
capital expenditures, in addition to base rent. The average annual
base rent for the initial term is approximately $2.1 million.
We funded
the acquisition of the property with proceeds from the sale of our common
stock. We may finanace the acquisition post-closing, however, there
is no guarantee that we will be able to obtain financing on terms that we
believe are favorable or at all.
Kum &
Go is a privately-owned convenience store and gas station chain located in the
Midwestern United States. The company was founded in 1959 and is headquartered
in West Des Moines, Iowa. It operates stores in Iowa, Kansas, Minnesota,
Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Colorado,
Arkansas, Wyoming, and Wisconsin.