American Financial ;Realty Trust, reported revenues for the quarter were ;$146.6 million, an increase of 10.0% over second quarter 2005 revenues and an ;increase of 80.7% over revenues of $81.1 million reported in the third quarter ;of 2004. Revenues for the nine months ended September 30, 2005 increased 89.0% ;to $405.5 million from the comparable period in 2004. The Company reported third quarter adjusted funds from operations ("AFFO") ;of $33.3 million (including gains on sales of assets), representing an ;increase of $2.8 million or 9.2% from the $30.5 million reported during the ;second quarter of 2005 and an increase of 10.4% from $30.2 million reported in ;the third quarter of 2004. AFFO for the period was derived primarily from ;core real estate operations, as property net operating income increased ;$6.2 million or 9.2% between the second and third quarters of 2005. Gains on ;sales of real property of $1.7 million further contributed to AFFO performance ;in the third quarter of 2005. For the nine months ended September 30, 2005 AFFO was $93.5 million, an ;increase of 6.1% over the $88.1 million reported for the corresponding period ;in 2004. ; Highlights -- Acquisitions and Leasing: Acquired 31 properties totaling approximately1,012,000 rentable square feet for a net purchase price o ;pproximately $322.2 million. New leasing totaled over 395,000 squar ;eet, including one lease of a 150,000 square foot operations cente ;reviously among the Company's top ten vacancies. -- Relationship Building: Introduced a new Community Banking Progra ;hrough a strategic alliance with Bank Property Advisors, LLC ("BPA"),a Chicago-based company, to enhance AFR's bank branch holdings an ;easing to community banks. -- Dispositions: Disposed of 14 non-core properties aggregatin ;pproximately 165,000 square feet for net proceeds of $9.1 million an ; net gain of approximately $1.7 million. -- Balance Sheet Initiatives: Renewed and increased by $100 million a ;xisting Secured Line of Credit ("LOC") agreement with Deutsche Ban ;G, Cayman Islands Branch providing a total borrowing limit of$400 million. ; ; Commenting on the quarter, Nicholas S. Schorsch, president and chief ;executive officer of American Financial Realty Trust stated, "Solid third ;quarter performance is the result of strong property and financial management. ;The 10% growth in AFFO for the quarter reflects the full effect of current ;quarter acquisition closings, plus the impact from earlier closing of ;acquisitions executed in the second quarter." He added, "While focused on our ;core operations, we are also focused on the changing economic environment, ; ;refinancing in advance of our 2006 financing needs while identifying ;opportunities to enhance free cash flow." ; 2005 Third Quarter Results The Company reported adjusted funds from operations ("AFFO")(1) of ;$33.3 million in the third quarter of 2005. For the three months ended ;September 30, 2005 the Company's weighted average diluted common shares and ;Operating Partnership units outstanding totaled 131.3 million. The Company reported a net loss of $25.4 million, or $(0.20) per share for ;the third quarter of 2005, compared with a net loss of $10.0 million or ;$(0.09) per share reported in the third quarter of 2004 and a net loss of ;$25.2 million or $(0.21) in second quarter 2005. Year to date September 30, ;2005 the net loss is $72.7 million or $(0.62) per share. The Company's net ;losses are largely attributable to non-cash depreciation and amortization ;charges from continuing operations, which totaled $48.2 million in the third ;quarter of 2005. Funds from operations ("FFO")(2), including gains on sales of assets, was ;$18.9 million, or $0.14 per share, an increase of $6.1 million over the second ;quarter of 2005, when FFO was $12.9 million or $0.10 per share and an increase ;of $1.9 million or 11.2% from $17.0 million reported in the third quarter of ;2004. Excluding gains, FFO, computed in accordance with the definition of the ;National Association of Real Estate Investment Trusts ("NAREIT FFO")(3), was ;$17.2 million. EBITDA grew by 19.4% over the second quarter of 2005 and by more than ;63% over the same period in 2004. The improvement over second quarter ;($10.6 million) was due primarily to higher property net operating income ;($6.2 million) and lower costs ($4.5 million) associated with severance costs ;recognized in the second quarter of 2005. The operating margin (EBITDA ;divided by total revenues) for the period was 44.5%. On an unadjusted cash ;basis, the operating margin was 47.3% for the third quarter of 2005. MG&A expenses were generally flat on a dollar basis as compared to the ;second quarter 2005, and were up marginally, $0.3 million over third quarter ;2004 on a dollar basis. As a percentage of total revenues, MG&A declined from ;6.3% of total revenues in the second quarter to 5.8% in the third quarter, an ;improvement of 8.6% on a relative basis. As a percentage of revenues over the ;comparable quarter in 2004, MG&A declined from 10.1% to 5.8% in the third ;quarter, an improvement of 42.6% on a relative basis. ; 2005 Third Quarter Dividend AFR declared a quarterly dividend for shareholders of beneficial interest ;of $0.27 per share for the third quarter of 2005. The dividend was paid on ;October 17, 2005 to shareholders of record on October 3, 2005. At the same ;time, the Company's Operating Partnership paid a distribution of $0.27 per ;unit to Operating Partnership unit holders. ; 2005 Third Quarter Acquisitions The Company acquired 31 properties totaling approximately 1,012,000 ;rentable square feet for total purchase price of approximately $322.2 million. ;The 31 properties consisted of 22 bank branches and the assumption of seven ;leasehold interests as well as two office properties. In total, third quarter ;acquisitions are expected to generate leveraged cash yields in the 11-12% ;range. The following recaps the Company's third quarter 2005 office and branch ;acquisitions: ; -- Sale Leaseback - Credit Card Center, Sioux Falls, South Dakota.Acquired a 158,000 square foot operations center 100% leased through2013 to a subsidiary of HSBC Holdings, plc, on a net lease basis. Th ;roperty was acquired for a gross purchase price of $24.7 million an ;as financed using a combination of proceeds from the Company's May2005 public offering and the assumption of $15.8 million mortgag ;earing a fixed interest rate of 6.55%. The Company expects that i ;ill achieve an average capitalization rate of 8.70%. -- Landlord of Choice - Fireman's Fund Insurance Company Nationa ;eadquarters. Acquired a three-building Class 'A' office comple ;ggregating more than 710,000 square feet serving as the nationa ;eadquarters of Fireman's Fund Insurance Company in Novato, California,for approximately $283.6 million. The property is 100% leased on a ne ;ease basis through 2018. The transaction was financed with fund ;enerated from its recent equity offering, and approximately$190.7 million in secured indebtedness bearing an effective interes ;ate of 5.27% (net of hedging activity). The Company anticipates i ;ill achieve an average capitalization rate of 7.82%. -- Formulated Price Contracts - Bank Branch Acquisitions. Completed th ;cquisition of 22 bank branches and seven branch leasehold interest ;otaling approximately $13.9 million. These properties were acquire ;acant under AFR's existing contracts with Bank of America, N.A., an ;achovia Bank, N.A. As of the date of this release, we have leased, o ;ave under negotiations, ten properties with an annual rent of$1.3 million and have sold, or have under agreement to sell, fou ;roperties that have a gross sale price of $2.1 million and an expecte ;ain of $0.24 million. ; ; Strategic Relationship Initiatives -- Community Banking. AFR introduced a new Community Banking Progra ;esigned to help local community banks more effectively utilize thei ;eal estate assets. Through a strategic alliance with Bank Propert ;dvisors, LLC ("BPA"), a Chicago-based company focused exclusively o ;eveloping customized sale leaseback solutions for community banks an ;hrifts, AFR intends to expand its brand. The initiative will us ;PA's existing advisory relationships in the community banking secto ;o identify new bank properties that American Financial can acquir ;rom, and lease back to, community banks to expand AFR's core branc ;ortfolio. ; ; 2005 Third Quarter Dispositions During the quarter, the Company disposed of 14 properties, including two ;leaseholds, aggregating approximately 165,000 square feet, including ;approximately 95,000 square feet of vacant or soon to become vacant space. ;Thirteen of the properties had an aggregate net property operating loss, of ;approximately $0.4 million year to date. The remaining property, a 13,000 ;square foot branch location, was sold opportunistically to a developer for a ;gain of approximately $1.0 million. Net proceeds resulting from these ;dispositions were $9.1 million, generating a net gain of approximately ;$1.7 million, net of impairments. Year to date, 79 properties and 6 leasehold interests have been sold, ;aggregating approximately 1.5 million square feet, 1.0 million of which was ;vacant or soon to become vacant space. These dispositions have generated net ;proceeds of approximately $66.7 million, eliminating year to date property ;operating loss of $1.5 million from future periods. "We have made progress in repositioning and disposing our non-core assets. ;We anticipate disposing of two repositioned assets for a total gain of $6 ;million that due to conditions outside our control did not close in the third ;quarter. These assets demonstrate that our ability to create value in our ;portfolio will make a sufficient contribution to achieving the anticipated ;gains of approximately $8.5 to $12 million for the fourth quarter" said Glenn ;Blumenthal, executive vice president and chief operating officer. He added, ;"These repositioned assets provide a meaningful source of recyclable capital." ; Leasing Activity Reporting on a "same store" basis (those properties owned as of December ;31, 2003), the portfolio occupancy increased by 1.1%, to 91% at September 30, ;2005. The improvement in same store occupancy was derived from the lease up ;of 313,000 square feet of new tenancy. Over the next twelve months, taking ;into consideration free rent, concessions and construction build out, this ;leasing is expected to contribute $1.5 million in net operating income. New ;leasing activity included a 150,000 square foot lease for the Miami Lakes ;Operation Center, which had previously been reported among the Company's top ;ten vacancies. In the third quarter of 2005, same store property net operating income ;declined $1.3 million compared to the second quarter of 2005 principally due ;to scheduled and early lease terminations. Revenue on the new leasing ;activity should begin to be reflected in fourth quarter property net operating ;income and ramp up over the succeeding three quarters. Total net property operating income increased $6.2 million when compared ;to the second quarter of 2005, as a result of new acquisitions completed in ;the third quarter and the normalization of acquisitions completed in the ;second quarter. Total portfolio occupancy decreased by 0.4%, to 87.3% at ;September 30, 2005, primarily due to the return of scheduled short-term space ;occupied by bank tenants since the recent acquisitions of those properties. ;This vacancy creates opportunities for increased revenue from new leasing. ;Approximately 66,000 square feet of the new leasing activity occurred in ;portfolios purchased from Bank of America and Wachovia one year ago. Mr. Blumenthal stated, "The success this quarter in leasing the Miami ;Lakes property demonstrates our ongoing focus on our property portfolio and ;core operations. The execution of this lease serves a dual purpose: it ;increases occupancy and highlights the attention we are applying to our top ;ten vacancies such as Harborside." ; Portfolio and Tenant Overview The following table provides portfolio statistics on the AFR portfolio as ;of September 30, 2005, with comparisons to the portfolio as of June 30, 2005. ;The portfolio statistics include 100% of the two properties (State Street ;Financial Center and 123 South Broad Street) owned by the Company in joint ;ventures. Similarly, these joint ventures are reported on a consolidated ;basis for GAAP accounting purposes. ; As of As o ;eptember 30, June 30, 2005 2005 ; Number of Properties 1,083 1,066 -- Branches 598 579 -- Office Buildings 485 487 Number of States 39 & DC38 & DC Total Square Feet 37,307,778 36,460,094 -- Branches 4,485,774 4,422,202 -- Office Buildings32,822,004 32,037,892 Overall Occupancy 87.3% 87.7% -- Branches81.3% 81.7% -- Office Buildings 88.1% 88.5% % Rent from Financial Institutions 87.1% 87.0% % Rent from "A" Rated Tenants 85.0% 85.0% % Rent from Net Leases 85.2% 82.8% Lease Expirations (within 1 year) 1.9% 4.0% Average Remaining Lease Term (years) 13.6 13.6 Average Remaining Debt Term (years) 12.0 12.6 % Fixed Rate Debt to Total Debt95.9% 98.0% ; ; Balance Sheet The Company executed a renewal agreement of its existing Secured Line of ;Credit ("LOC"), with Deutsche Bank AG, Cayman Islands Branch, satisfying a ;significant refinancing requirement for 2006. This renewal was completed ;eleven months early under the same basic terms of the original LOC. The ;credit facility has been extended through October 2008 and increased by $100 ;million to a total borrowing limit of $400 million. In addition, the LOC was ;specifically structured to provide a financing mechanism for AFR's Formulated ;Price Contract program. As of September 30, 2005, the Company had total indebtedness of ;approximately $3.1 billion, with a weighted average remaining term of 12.0 ;years and a weighted average interest rate (including amortized hedging costs) ;of 5.60%. As of September 30, 2005, the Company had a ratio of total debt to ;enterprise value (debt and equity market capitalization) of approximately ;62.6%, and a ratio of debt to total real estate investments and real estate ;intangibles (at cost) of approximately 70.0%. "The early renewal of our acquisition credit line, (11 months earlier than ;the original LOC expiration) and its specific formula for financing our FPC ;acquisitions signifies our current focus on eliminating in advance, our 2006 ;refinancing obligations while at the same time enhancing our operations ;capabilities," said Dave Nettina, chief financial officer and chief real ;estate officer. "As we review our strategic plan for 2006, we will be turning ;our attention to other high amortizing debt for refinancing, in order to ;extend the term of this debt, while locking in historically low interest ;rates, enhancing the generation of free cash flow," added Mr. Nettina. ; Business Outlook American Financial has a policy to update guidance only in the event that ;it may be affected by a material change. The Company projects, after taking ;into account the additional shares issued in May 2005, its shares and units ;outstanding on a full year weighted average basis should approximate 125.6 ;million shares. In consideration of this, the Company anticipates its full ;year AFFO results for 2005 to fall within the lower end of the same per share ;equivalent range as originally provided. Guidance for 2006 will be provided on ;or before November 15th. ; Conference Call Management will conduct a conference call and audio webcast at 1:00 p.m. ;ET on October 28, 2005 to review the Company's quarterly results. The ;conference call dial-in number is 303-262-2142. The audio webcast will be ;available to the public, on a listen-only basis, via the Investor Relations ;section of the Company's website at http://www.afrt.com . Please allow extra time, prior to the call, to visit the site and download ;the necessary software to listen to the Internet broadcast. A replay of the conference call will be available through November 4, 2005 ;by dialing 303-590-3000, passcode 11041733. An online archive of the webcast ;will be available through November 27, 2005 by accessing the Company's website ;at http://www.afrt.com . ; Supplemental Quarterly Financial and Operating Data American Financial publishes supplemental quarterly financial and ;operating data, which can be found under the Investor Relations section of the ;company's website at http://www.afrt.com . These materials are also available ;via e-mail by calling 312-640-6770. ; Non-GAAP Financial Measures The Company believes that FFO is helpful to investors as a measure of the ;Company's performance as an equity REIT because it provides investors with an ;understanding of the Company's operating performance and profitability. The ;Company includes gains and losses from property sales in its definition of FFO ;because it believes that strategic disposition of properties is a significant ;component of the Company's business model, and that gains and losses from ;dispositions demonstrate (in part) the Company's execution of its business ;model. FFO is a non-GAAP financial measure commonly used in the REIT ;industry, and therefore this measure may be useful in comparing the Company's ;performance with that of other REITs. However, the Company's definition of ;FFO differs from NAREIT FFO (which is also disclosed by the Company) and ;investors should take definitional differences into account when comparing FFO ;reported by other REITs (including particularly those REITs that exclude gains ;and losses from property sales in their definition of FFO). Additionally, FFO ;and FFO per share should be evaluated along with GAAP net income and net ;income per share (the most directly comparable GAAP measures) in evaluating ;the performance of equity REITs. The Company believes that AFFO is helpful to investors as a measure of its ;liquidity position, because, along with cash flows from operating activities, ;this measure provides investors with an understanding of its ability to pay ;dividends. In addition, because this measure is commonly used in the REIT ;industry, the Company's use of AFFO may assist investors in comparing the ;Company's liquidity position with that of other REITs. The Company's ;definition of AFFO differs from that of other equity REITs and investors ;should take definitional differences into account when comparing AFFO reported ;by other REITs (including particularly those REITs that exclude gains and ;losses from property sales in their definition of AFFO). ; About American Financial Realty Trust American Financial Realty Trust is a self-administered, self-managed real ;estate investment trust that acquires properties from, and leases properties ;to, regulated financial institutions. The Company owns and manages its assets ;primarily under long-term triple net and bond net leases with banks. The ;Company is led by chief executive officer Nicholas S. Schorsch and non- ;executive chairman Lewis S. Ranieri. The Company is traded on the New York ;Stock Exchange under the ticker symbol AFR. ; For more information on American Financial Realty Trust, visit the ;Company's website at http://www.afrt.com . ; Forward-Looking Statements Certain statements in this press release constitute forward-looking ;statements within the meaning of the federal securities laws. You can ;identify these statements by our use of the words "expects," "anticipates," ;"estimates," "intends," "believes" and similar expressions that do not relate ;to historical information. You should exercise caution in interpreting and ;relying on forward-looking statements because they involve known and unknown ;risks and uncertainties which are, in some cases, beyond the Company's control ;and could materially affect actual results, performance or achievements. ;These risks and uncertainties include the risks detailed from time to time in ;the Company's filings with the Securities and Exchange Commission, and ;include, without limitation, changes in general economic conditions and the ;extent of any tenant bankruptcies and insolvencies; the Company's ability to ;maintain and increase occupancy; the Company's ability to timely lease or re- ;lease space at anticipated net effective rents; the cost and availability of ;debt and equity financing; and the Company's ability to acquire and dispose of ;certain of its assets from time to time on acceptable terms. The Company ;assumes no obligation to update or supplement forward-looking statements that ;become untrue because of subsequent events. ; Financial Statements The attached financial statements and data are presented to supplement the ;Company's audited and unaudited regulatory filings and should be read in ;conjunction with those filings. The unaudited financial data presented herein ;is provided from the perspective of timeliness to assist readers of quarterly ;and annual financial filings. This financial data was prepared prior to the ;Company's auditors completing their SAS 100 review. As such, data otherwise ;contained in future regulatory filings covering this same time period may ;differ from the data presented herein. The Company does not accept ;responsibility for highlighting these changes in its subsequent filings. ; ; (1) The Company calculates AFFO by subtracting from or adding to FFO (i) non-real estate related depreciation and amortization, (ii) amortized portion of capital expenditures that were amortized during the period (e.g., leasing commissions and tenant improvement allowances), (iii) straightlining of rents and fee income, and (iv) amortization of various deferred costs. The SEC classifies AFFO as a non-per share reportable statistic and as such the Company does not report AFFO on a per share basis. Please see the section that follows on "Non-GAAP Financial Measures" for a further description of the Company's use of NAREIT FFO, FFO and AFFO. ; (2) The Company calculates FFO pursuant to an alternative definition that includes both gains and losses resulting from, and impairments taken in anticipation of, the sale of real estate property. The Company includes gains and losses from property sales in its definition of FFO because it believes that strategic disposition of properties is a significant component of its business model and that gains (and losses) from property sales, as well as impairments taken in anticipation of such sales, demonstrate (in part) the Company's execution of its business model. The Company also believes that an inclusive presentation of gains, losses and impairments in FFO more accurately reflects the Company's overall performance. The Company's definition of FFO differs from NAREIT FFO only with respect to its treatment of gains and losses from property sales. ; (3) NAREIT FFO is defined as net income (loss) before minority interest, in our operating partnership (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from debt restructuring and gains (or losses) from sales of property, less any impairments of asset values at cost (unrealized loss), plus real estate related depreciation and amortization (excluding amortization of deferred costs) and after adjustments for unconsolidated partnerships and joint ventures. ; ; AMERICAN FINANCIAL REALTY TRUST ; CONSOLIDATED BALANCE SHEETS September 30, 2005 and December 31, 2004 (Unaudited in thousands, except share and per share data) ; September 30, December 31, 20052004 Assets: Real estate investments, at cost: Land $503,047$415,852 Buildings and improvements 2,759,871 2,280,971 Equipment and fixtures 423,919 352,737 Leasehold interests 4,458 4,972 ; Total real estate investments, at cost 3,691,295 3,054,532 Less accumulated depreciation (246,930) (147,478) ; Total real estate investments, net 3,444,365 2,907,054 Cash and cash equivalents63,213 110,607 Restricted cash86,096 59,905 Marketable investments and accrued interest 3,424 24,272 Tenant and other receivables, net 52,776 34,667 Prepaid expenses and other assets 37,345 65,551 Assets held for sale47,622 101,827 Intangible assets, net of accumulated amortization of $56,862 and $25,749 679,263 590,341 Deferred costs, net of accumulated amortization of $13,014 and $7,63771,989 57,623 ; Total assets $4,486,093 $3,951,847 ; Liabilities and Shareholders' Equity: Mortgage notes payable $2,612,833 $2,008,554 Credit facilities 73,222 270,000 Convertible notes, net 446,082 445,926 Accounts payable1,118 4,947 Accrued interest expense 20,656 24,510 Accrued expenses and other liabilities 63,152 60,098 Dividends and distributions payable35,619 29,805 Below-market lease liabilities, net of accumulated amortization of $8,001 and $3,396 66,625 59,232 Deferred revenue 148,527 105,745 Liabilities related to assets held for sale 2,951 7,972 ; Total liabilities3,470,785 3,016,789 ; Minority interest 55,691 65,099 Shareholders' equity: Preferred shares, 100,000,000 shares authorized at $0.001 per share, no shares issued and outstanding at September 30, 2005 and December 31, 2004 - - Common shares, 500,000,000 shares authorized at $0.001 per share, 128,716,395 and 111,001,935 issued and outstanding at September 30, 2005 and December 31, 2004 129111 Capital contributed in excess of par 1,384,583 1,130,034 Deferred compensation (15,304)(16,518) Accumulated deficit (401,597) (229,380) Accumulated other comprehensive loss (8,194)(14,288) ; Total shareholders' equity 959,617 869,959 ; Total liabilities and shareholders' equity$4,486,093 $3,951,847 ; ; ; AMERICAN FINANCIAL REALTY TRUST ; CONSOLIDATED STATEMENTS OF OPERATIONS Three and Nine Months Ended September 30, 2005 and 2004 (Unaudited and in thousands, except per share data) ; ; Three Months Ended Nine months ended September 30, September 30,2005 2004 2005 2004 ; Revenues: Rental income $91,702 $59,799 $258,041 $158,192 Operating expense reimbursements 52,878 20,332 142,97753,510 Interest and other income, net 1,992 964 4,465 2,847 ; Total revenues 146,572 81,095 405,483 214,549 ; Property operating expenses72,712 33,800 203,44384,339 ; Property net operating income 73,860 47,295 202,040 130,210 ; Marketing, general and administrative 8,4608,16225,21022,948 Broken deal costs 227 - 1,167- Outperformance plan - contingent restricted share component- (764) -(5,238) Severance and related accelerated amortization of deferred compensation- - 4,503 1,857 ; EBITDA 65,173 39,897 171,160 110,643 ; Interest expense on mortgages and other debt 44,589 24,122 120,26057,883 Depreciation and amortization 48,172 27,175 130,07572,197 ; Loss before net loss on investments, minority interest and discontinued operations (27,588) (11,400) (79,175) (19,437) Net loss on investments - (8) (530) (410) ; Loss from continuing operations before minority interest (27,588) (11,408) (79,705) (19,847) Minority interest 1,036 477 3,661 933 ; Loss from continuing operations(26,552) (10,931) (76,044) (18,914) ; Discontinued operations: Loss from operations, net of minority interest of $11, $33, $69 and $76 for the three and nine months ended September 30, 2005 and 2004, respectively (433)(969) (2,788) (2,250) Yield maintenance fees, net of minority interest of $1, $2, $4 and $103 for the three and nine months ended September 30, 2005 and 2004, respectively (52) (51) (172) (3,060) Net gains on disposals, net of minority interest of $42, $67, $158 and $280 for the three and nine months ended September 30, 2005 and 2004, respectively1,6781,996 6,353 8,324 ; Income from discontinued operations 1,193 976 3,393 3,014 ; Net loss $(25,359) $(9,955) $(72,651) $(15,900) ; Basic and diluted income (loss) per share: From continuing operations $(0.21) $(0.10) $(0.65) $(0.19) From discontinued operations 0.01 0.01 0.03 0.03 ; Total basic and diluted loss per share $(0.20) $(0.09) $(0.62) $(0.16) ; ; ; Set forth below is a reconciliation of our calculations of FFO and AFFO to ;net loss (unaudited, in thousands except per share data): ; Three Months Ended Nine Months Ended September 30, September 30,2005 2004 2005 2004 ; Funds from operations (NAREIT defined): Net loss$(25,359) $(9,955) $(72,651) $(15,900) Add: Minority interest - Operating Partnership (638)(395) (2,040) (658) Depreciation and amortization45,407 27,452 123,01473,461 Amortization of fair market rental adjustment, net - 98 28 565 Less: Non-real estate depreciation and amortization (415)(205) (1,040) (508) Amortization of fair market rental adjustment, net (89) -(1,137) - Net gains from disposals, net of income taxes (1,720) (2,063) (6,632) (8,604) ; Funds from operations(NAREIT defined) $17,186 $14,932 $39,542 $48,356 ; Funds from operations- diluted per share$0.131 $0.131$0.320$0.421 ; ; Funds from operations (AFR defined): Funds from operations(NAREIT defined) $17,186 $14,932 $39,542 $48,356 Add: Net gains from disposals, net of income taxes 1,7202,063 6,632 8,604 ; Funds from operations(AFR defined)$18,906 $16,995 $46,174 $56,960 ; Funds from operations- diluted per share$0.144 $0.149$0.370$0.500 ; Adjusted funds from operations: Funds from operations(AFR defined)$18,906 $16,995 $46,174 $56,960 Add: Non-real estate depreciation and amortization 415 - 1,040- Reverse straightline rental income 11,3658,99235,23421,718 Amortization of deferred compensation 2,5282,230 8,078 6,842 Amortization of deferred costs and interest rate cap adjustment 2,2071,113 5,895 2,859 Straightline fee income 1,1544,482 2,952 8,468 Accelerated amortization of deferred compensation - severance - - 3,026 1,857 Less: Straightline rental income (2,612) (2,429) (7,198) (4,569) Tenant improvements and leasing commissions - (458) - (839) Amortization of tenant improvements and leasing commissions (657) -(1,657) - OPP accrual - contingent restricted share component - (764) -(5,238) ; Adjusted funds fro ;perations $33,306 $30,161 $93,544 $88,058 ; AFFO coverage ratio: Quarterly dividend $35,619 $29,805 $102,262 $87,972 AFFO / quarterly dividend 0.94x1.01x 0.91x 1.00x ; ; ;

Source: PR Newswire